Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39432 | ||
Entity Registrant Name | Rocket Companies, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-4946470 | ||
Entity Address, Address Line One | 1050 Woodward Avenue | ||
Entity Address, City or Town | Detroit | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 48226 | ||
City Area Code | 313 | ||
Local Phone Number | 373-7990 | ||
Title of 12(b) Security | Class A common stock, par value $0.00001 per share | ||
Trading Symbol | RKT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,623,982,853 | ||
Entity Central Index Key | 0001805284 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for use in connection with its 2022 Annual Meeting of Stockholders, which is to be filed no later than 120 days after December 31, 2021, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Class A common stock | |||
Entity Listings [Line Items] | |||
Entity Common Stock, Shares Outstanding | 121,075,831 | ||
Class D common stock | |||
Entity Listings [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,848,879,483 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Detroit, Michigan |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 2,131,174 | $ 1,971,085 |
Restricted cash | 80,423 | 83,018 |
Mortgage loans held for sale, at fair value | 19,323,568 | 22,865,106 |
Mortgage servicing rights (“MSRs”), at fair value | 5,385,613 | 2,862,685 |
MSRs collateral for financing liability, at fair value | 0 | 205,033 |
Notes receivable and due from affiliates | 9,753 | 22,172 |
Property and equipment, net | 254,376 | 211,161 |
Deferred tax asset, net | 572,049 | 519,933 |
Lease right of use assets | 427,895 | 238,546 |
Loans subject to repurchase right from Ginnie Mae | 1,918,032 | 5,696,608 |
Other assets | 2,115,814 | 941,477 |
Total assets | 32,774,895 | 37,534,602 |
Liabilities: | ||
Funding facilities | 12,751,592 | 17,742,573 |
Lines of credit | 75,000 | 375,000 |
Senior Notes, net | 4,022,491 | 2,973,046 |
Early buy out facility | 1,896,784 | 330,266 |
MSRs financing liability, at fair value | 0 | 187,794 |
Accounts payable | 271,544 | 251,960 |
Lease liabilities | 482,184 | 272,274 |
Forward commitments, at fair value | 19,911 | 506,071 |
Investor reserves | 78,888 | 87,191 |
Notes payable and due to affiliates | 33,650 | 73,896 |
Tax receivable agreement liability | 688,573 | 550,282 |
Loans subject to repurchase right from Ginnie Mae | 1,918,032 | 5,696,608 |
Other liabilities | 776,714 | 605,485 |
Total liabilities | 23,015,363 | 29,652,446 |
Equity: | ||
Additional paid-in capital | 287,558 | 282,743 |
Retained earnings | 378,005 | 207,422 |
Accumulated other comprehensive income | 81 | 317 |
Non-controlling interest | 9,093,868 | 7,391,654 |
Total equity | 9,759,532 | 7,882,156 |
Total liabilities and equity | 32,774,895 | 37,534,602 |
Class A common stock | ||
Equity: | ||
Common stock | 1 | 1 |
Class B common stock | ||
Equity: | ||
Common stock | 0 | 0 |
Class C common stock | ||
Equity: | ||
Common stock | 0 | 0 |
Class D common stock | ||
Equity: | ||
Common stock | 19 | 19 |
IRLCs | ||
Assets | ||
Derivatives, at fair value | 538,861 | 1,897,194 |
Forward commitments | ||
Assets | ||
Derivatives, at fair value | $ 17,337 | $ 20,584 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock authorized (shares) | 10,000,000,000 | 10,000,000,000 |
Common stock issued (shares) | 126,437,703 | 115,372,565 |
Common stock outstanding (shares) | 126,437,703 | 115,372,565 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock authorized (shares) | 6,000,000,000 | 6,000,000,000 |
Common stock issued (shares) | 0 | 0 |
Common stock outstanding (shares) | 0 | 0 |
Class C common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock authorized (shares) | 6,000,000,000 | 6,000,000,000 |
Common stock issued (shares) | 0 | 0 |
Common stock outstanding (shares) | 0 | 0 |
Class D common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock authorized (shares) | 6,000,000,000 | 6,000,000,000 |
Common stock issued (shares) | 1,848,879,483 | 1,869,079,483 |
Common stock outstanding (shares) | 1,848,879,483 | 1,869,079,483 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gain on sale of loans: | |||
Gain on sale of loans excluding fair value of MSRs, net | $ 6,604,215 | $ 11,946,044 | $ 3,139,656 |
Fair value of originated MSRs | 3,864,359 | 3,124,659 | 1,771,651 |
Gain on sale of loans, net | 10,468,574 | 15,070,703 | 4,911,307 |
Loan servicing income (loss): | |||
Servicing fee income | 1,325,938 | 1,074,255 | 950,221 |
Change in fair value of MSRs | (689,432) | (2,379,355) | (1,644,849) |
Loan servicing income (loss), net | 636,506 | (1,305,100) | (694,628) |
Interest income: | |||
Interest income | 430,086 | 329,593 | 250,750 |
Interest expense on funding facilities | (261,146) | (245,523) | (134,916) |
Interest income, net | 168,940 | 84,070 | 115,834 |
Other income | 1,640,446 | 1,800,394 | 736,589 |
Total revenue, net | 12,914,466 | 15,650,067 | 5,069,102 |
Expenses | |||
Salaries, commissions and team member benefits | 3,356,815 | 3,238,301 | 2,082,797 |
General and administrative expenses | 1,183,418 | 1,053,080 | 685,028 |
Marketing and advertising expenses | 1,249,583 | 949,933 | 905,000 |
Depreciation and amortization | 74,713 | 74,316 | 74,952 |
Interest and amortization expense on non-funding debt | 230,740 | 186,301 | 136,853 |
Other expenses | 634,296 | 616,479 | 280,032 |
Total expenses | 6,729,565 | 6,118,410 | 4,164,662 |
Income before income taxes | 6,184,901 | 9,531,657 | 904,440 |
Provision for income taxes | (112,738) | (132,381) | (7,310) |
Net income | 6,072,163 | 9,399,276 | 897,130 |
Net income attributable to non-controlling interest | (5,763,953) | (9,201,325) | (897,130) |
Net income attributable to Rocket Companies | $ 308,210 | $ 197,951 | 0 |
Earnings per share of Class A common stock: | |||
Basic (in dollars per share) | $ 2.36 | $ 1.77 | |
Diluted (in dollars per share) | $ 2.32 | $ 1.76 | |
Weighted average shares outstanding: | |||
Basic (shares) | 130,578,206 | 111,926,619 | |
Diluted (shares) | 1,989,433,567 | 116,238,493 | |
Comprehensive income: | |||
Net income | $ 6,072,163 | $ 9,399,276 | 897,130 |
Cumulative translation adjustment | (115) | 885 | 877 |
Unrealized (loss) gain on investment securities | (5,550) | 5,033 | 0 |
Comprehensive income | 6,066,498 | 9,405,194 | 898,007 |
Comprehensive income attributable to noncontrolling interest | (5,758,675) | (9,207,296) | (898,007) |
Comprehensive income attributable to Rocket Companies | $ 307,823 | $ 197,898 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Prior to reorganization transactions | Subsequent to reorganization transactions | IPO | Greenshoe option | Common StockClass A common stock | Common StockClass A common stockIPO | Common StockClass A common stockGreenshoe option | Common StockClass D common stock | Common StockClass D common stockIPO | Common StockClass D common stockGreenshoe option | Additional Paid-in Capital | Additional Paid-in CapitalSubsequent to reorganization transactions | Additional Paid-in CapitalIPO | Additional Paid-in CapitalGreenshoe option | Retained Earnings | Retained EarningsSubsequent to reorganization transactions | Net Parent Investment | Net Parent InvestmentPrior to reorganization transactions | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) IncomePrior to reorganization transactions | Accumulated Other Comprehensive (Loss) IncomeSubsequent to reorganization transactions | Total Non-controlling Interest | Total Non-controlling InterestPrior to reorganization transactions | Total Non-controlling InterestSubsequent to reorganization transactions | Total Non-controlling InterestIPO |
Beginning Balance at Dec. 31, 2018 | $ 2,788,786 | $ 0 | $ 0 | $ 0 | $ 0 | $ 2,783,484 | $ (868) | $ 6,170 | ||||||||||||||||||
Beginning Balance (shares) at Dec. 31, 2018 | 0 | 0 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Net income (loss) | 897,130 | 898,497 | (1,367) | |||||||||||||||||||||||
Other comprehensive income (loss) | 877 | 717 | 160 | |||||||||||||||||||||||
Unrealized gain (loss) on investment securities | 0 | |||||||||||||||||||||||||
Net transfers to Parent | (210,941) | (210,941) | ||||||||||||||||||||||||
Stock based compensation, net | 39,703 | 39,658 | 45 | |||||||||||||||||||||||
Ending Balance at Dec. 31, 2019 | 3,515,555 | $ 0 | $ 0 | 0 | 0 | 3,510,698 | (151) | 5,008 | ||||||||||||||||||
Ending Balance (shares) at Dec. 31, 2019 | 0 | 0 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Net income (loss) | 9,399,276 | $ 4,643,234 | $ 4,756,042 | $ 193,104 | $ 4,644,288 | $ (1,054) | $ 4,562,938 | |||||||||||||||||||
Other comprehensive income (loss) | 885 | (664) | 1,551 | $ (542) | $ 66 | (122) | 1,485 | |||||||||||||||||||
Unrealized gain (loss) on investment securities | 5,033 | 6,969 | (1,936) | |||||||||||||||||||||||
Net transfers to Parent | (3,827,706) | (3,827,706) | ||||||||||||||||||||||||
Stock based compensation, net | $ 61,200 | $ 74,987 | $ 28,096 | $ 61,180 | $ 20 | $ 46,891 | ||||||||||||||||||||
Effect of reorganization transactions | 36,732 | $ 20 | 253,102 | 9,968 | (4,388,460) | (6,079) | 4,168,181 | |||||||||||||||||||
Effect of reorganization transactions (shares) | 372,565 | 1,984,079,483 | ||||||||||||||||||||||||
Distributions for state taxes on behalf of unit holders (members), net | (8,504) | (481) | (8,023) | |||||||||||||||||||||||
Distributions to unit holders (members) from subsidiary investment | (1,366,677) | (1,366,677) | ||||||||||||||||||||||||
Proceeds received from stock issuance | $ 1,744,075 | $ 263,925 | $ 1 | $ 1,758,719 | $ 263,925 | $ (14,645) | ||||||||||||||||||||
Proceeds received from stock issuance (shares) | 100,000,000 | 15,000,000 | (100,000,000) | (15,000,000) | ||||||||||||||||||||||
Repurchase of shares | (2,023,425) | $ (1) | (2,023,424) | |||||||||||||||||||||||
Increase in controlling interest resulting from Greenshoe | 0 | 2,047 | 4,847 | (26) | (6,868) | |||||||||||||||||||||
Non-controlling interest attributed to dissolution | (884) | (884) | ||||||||||||||||||||||||
Increase (decrease) in controlling interest of investment | 7,682 | 278 | (16) | 80 | 7,340 | |||||||||||||||||||||
Ending Balance at Dec. 31, 2020 | 7,882,156 | $ 1 | $ 19 | 282,743 | 207,422 | 0 | 317 | 7,391,654 | ||||||||||||||||||
Ending Balance (shares) at Dec. 31, 2020 | 115,372,565 | 1,869,079,483 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Net income (loss) | 6,072,163 | 308,210 | 5,763,953 | |||||||||||||||||||||||
Other comprehensive income (loss) | (115) | (10) | (105) | |||||||||||||||||||||||
Unrealized gain (loss) on investment securities | (5,550) | (375) | (5,175) | |||||||||||||||||||||||
Stock based compensation, net | 153,686 | 9,899 | 143,787 | |||||||||||||||||||||||
Stock based compensation, net (shares) | 2,529,124 | |||||||||||||||||||||||||
Distributions for state taxes on behalf of unit holders (members), net | (141,552) | (8,414) | (133,138) | |||||||||||||||||||||||
Distributions to unit holders (members) from subsidiary investment | (3,844,159) | (3,844,159) | ||||||||||||||||||||||||
Special Dividend to Class A Shareholders | (144,805) | (145,640) | 835 | |||||||||||||||||||||||
Pushdown of Dividend Equivalent | 0 | 16,427 | (16,427) | |||||||||||||||||||||||
Repurchase of shares | (231,584) | (231,584) | ||||||||||||||||||||||||
Repurchased of shares (shares) | (14,442,195) | |||||||||||||||||||||||||
Taxes withheld on employees' restricted share award vesting | (12,721) | (878) | (11,843) | |||||||||||||||||||||||
Issuance of Class A Common Shares under stock compensation and benefit plans | 51,370 | 3,523 | 47,847 | |||||||||||||||||||||||
Issuance of Class A Common Shares under stock compensation and benefit plans (shares) | 2,778,209 | |||||||||||||||||||||||||
Change in controlling interest of investment, net | (19,357) | 223,855 | 149 | (243,361) | ||||||||||||||||||||||
Change in controlling interest of investment, net (shares) | 20,200,000 | (20,200,000) | ||||||||||||||||||||||||
Ending Balance at Dec. 31, 2021 | $ 9,759,532 | $ 1 | $ 19 | $ 287,558 | $ 378,005 | $ 0 | $ 81 | $ 9,093,868 | ||||||||||||||||||
Ending Balance (shares) at Dec. 31, 2021 | 126,437,703 | 1,848,879,483 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net income | $ 6,072,163 | $ 9,399,276 | $ 897,130 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 74,713 | 74,316 | 74,952 |
Provision for deferred income taxes | 48,319 | 66,530 | 0 |
Loss on extinguishment of Senior Notes | 87,262 | 43,695 | 0 |
Origination of mortgage servicing rights | (3,864,359) | (3,124,659) | (1,771,651) |
Change in fair value of MSRs, net | 599,167 | 2,297,988 | 1,612,494 |
Gain on sale of loans excluding fair value of MSRs, net | (6,604,215) | (11,946,044) | (3,139,656) |
Disbursements of mortgage loans held for sale | (352,968,791) | (316,702,083) | (144,002,172) |
Proceeds from sale of loans held for sale | 363,999,306 | 318,223,938 | 139,275,683 |
Share-based compensation expense | 163,712 | 136,187 | 39,703 |
Change in assets and liabilities: | |||
Due from affiliates | 12,420 | 7,249 | 3,764 |
Other assets | 87,443 | (412,688) | (29,107) |
Accounts payable | 11,170 | 94,562 | 64,670 |
Due to affiliates | (40,967) | 20,947 | 1,539 |
Premium recapture and indemnification losses paid | 254 | (4,010) | (684) |
Other liabilities | 66,331 | 147,426 | (5,390) |
Total adjustments | 1,671,765 | (11,076,646) | (7,875,855) |
Net cash provided by (used in) operating activities | 7,743,928 | (1,677,370) | (6,978,725) |
Investing activities | |||
Proceeds from sale of MSRs | 933,457 | 561,560 | 136,820 |
Net purchase of MSRs | (184,527) | 0 | 0 |
Net decrease in notes receivable from affiliates | 0 | 60,516 | 2,830 |
(Increase) decrease in mortgage loans held for investment | (21,200) | (18,914) | |
(Increase) decrease in mortgage loans held for investment | 3,973 | ||
Net increase in investment securities | (39,896) | (2,500) | 0 |
Cash paid on acquisition of business | (1,234,395) | 0 | 0 |
Purchase and other additions of property and equipment, net of disposals | (118,291) | (106,346) | (48,842) |
Net cash (used in) provided by investing activities | (664,852) | 517,203 | 71,894 |
Financing activities | |||
Net (payments) borrowings on funding facilities | (4,990,981) | ||
Net (payments) borrowings on funding facilities | 5,700,695 | 6,965,275 | |
Net (payments) borrowings on lines of credit | (300,000) | ||
Net (payments) borrowings on lines of credit | 210,000 | 0 | |
Borrowings on Senior Notes | 2,000,000 | 2,000,000 | 0 |
Repayments on Senior Notes | (1,022,711) | (1,285,938) | 0 |
Net borrowings on early buy out facility | 1,566,518 | 134,019 | 107,924 |
Net borrowings (payments) notes payable from unconsolidated affiliates | 721 | 37,916 | |
Net borrowings (payments) notes payable from unconsolidated affiliates | (9,276) | ||
Proceeds from MSRs financing liability | 21,635 | 190,621 | 325,182 |
Issuance of Class D Shares to RHI | 0 | 20 | 0 |
Proceeds from Class A Shares Issued prior to Offering | 0 | 6,706 | 0 |
Proceeds received from IPO, net of cost | 0 | 1,744,075 | 0 |
Proceeds received from Greenshoe option | 0 | 263,925 | 0 |
Use of Proceeds to Purchase Class D Shares and Holding Units from RHI | 0 | (2,023,424) | 0 |
Stock issuance | 41,981 | 0 | 0 |
Share repurchase | (231,584) | 0 | 0 |
Taxes withheld on employees' restricted share award vesting | (12,721) | 0 | 0 |
Distributions to other unit holders (members) and Class A shareholders | (3,994,325) | (1,375,181) | 0 |
Net transfers to Parent | 0 | (3,798,582) | (210,941) |
Net cash (used in) provided by financing activities | (6,921,467) | 1,757,660 | 7,225,356 |
Effects of exchange rate changes on cash and cash equivalents | (115) | 885 | 877 |
Net increase in cash and cash equivalents and restricted cash | 157,494 | 598,378 | 319,402 |
Cash and cash equivalents and restricted cash, beginning of period | 2,054,103 | 1,455,725 | 1,136,323 |
Cash and cash equivalents and restricted cash, end of period | 2,211,597 | 2,054,103 | 1,455,725 |
Non-cash activities | |||
Loans transferred to other real estate owned | 1,288 | 1,484 | 2,451 |
Supplemental disclosures | |||
Cash paid for interest on related party borrowings | 7,167 | 3,486 | 5,603 |
Cash paid for interest, net | 422,593 | 366,953 | 255,788 |
Cash paid for income taxes, net | $ 76,631 | $ 55,695 | $ 10,970 |
Business, Basis of Presentation
Business, Basis of Presentation and Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Accounting Policies | Business, Basis of Presentation and Accounting Policies Rocket Companies, Inc. (the "Company", and together with its consolidated subsidiaries, "Rocket Companies", "we", "us", "our") was incorporated in Delaware on February 26, 2020 as a wholly owned subsidiary of Rock Holdings Inc. ("RHI") for the purpose of facilitating an initial public offering ("IPO") of its Class A common stock, $0.00001 par value (the “Class A common stock”) and other related transactions in order to carry on the business of RKT Holdings, LLC ("Holdings") and its wholly owned subsidiaries. We are a Detroit-based FinTech holding company consisting of tech-driven real estate, mortgage and eCommerce businesses. We are committed to providing an industry-leading client experience powered by our platform. In addition to Rocket Mortgage, the nation’s largest mortgage lender, we have expanded into complementary industries, such as real estate services, personal lending, auto sales, solar, and personal finance where we seek to deliver innovative client solutions leveraging our Rocket platform. Our business operations are organized into the following two segments: (1) Direct to Consumer and (2) Partner Network, refer to Note 15, Segments. Rocket Companies, Inc. is a holding company. Its primary material asset is the equity interest in Holdings which, through its direct and indirect subsidiaries, conducts all of the Company's operations. Holdings is a Michigan limited liability company and wholly owns the following entities, with each entity's subsidiaries identified in parentheses: Rocket Mortgage, LLC (formerly known as Quicken Loans, LLC), Amrock Holdings, LLC (“Amrock”, "Amrock Title Insurance Company" and "Nexsys Technologies LLC"), LMB HoldCo LLC (“Core Digital Media”), RCRA Holdings LLC (“Rock Connections” and “Rocket Auto”), Rocket Homes Real Estate LLC (“Rocket Homes”), RockLoans Holdings LLC (“Rocket Loans” and "Rocket Solar"), Rock Central LLC dba Rocket Central, Truebill, Inc., EFB Holdings Inc. (“Edison Financial”), Lendesk Canada Holdings Inc., RockTech Canada Inc., and Woodward Capital Management LLC. As used herein, “Rocket Mortgage” refers to either the Rocket Mortgage brand or platform, or the Rocket Mortgage business, as the context allows. Quicken Loans, LLC, changed its name to “Rocket Mortgage, LLC”, effective as of July 31, 2021, pursuant to the filing of a Certificate of Amendment to the Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau. Initial Public Offering On August 10, 2020 we completed the IPO of our common stock pursuant to a Registration Statement on Form S-1 (File No. 333-239726), which closed on August 10, 2020. In the IPO, we sold an aggregate of 115,000,000 shares of Class A common stock, including 15,000,000 shares purchased by the underwriters on September 9, 2020. Rocket Companies, Inc. received net proceeds from the IPO of approximately $2,023,000 after deducting underwriting discounts and commissions, all of which was used to purchase 115,000,000 non-voting membership units of Holdings (the “Holdings Units”) and shares of Class D common stock from RHI. Holdings is treated as a partnership for U.S. federal income tax purposes and, as such, is itself generally not subject to U.S. federal income tax under current U.S. tax laws. Each member of Holdings will be required to take into account for U.S. federal income tax purposes its distributive share of the items of income, gain, loss and deduction of Holdings. As indicated in Note 11, Income Taxes, the Company is party to a Tax Receivable Agreement. Basis of Presentation and Consolidation Prior to the completion of the initial public offering, RHI, Holdings and its subsidiaries consummated an internal reorganization in which Rocket Companies, Inc. became the sole managing member of Holdings. Prior to the reorganization, Rocket Companies, Inc. had no operations. As the sole managing member of Holdings, the Company operates and controls all of the business affairs of Holdings, and through Holdings and its subsidiaries, conducts its business. Holdings is considered a variable interest entity (“VIE”) and we consolidate the financial results of Holdings under the guidance of ASC 810, Consolidation. A portion of our Net income is allocated to Net income attributable to non-controlling interest. For further details, refer below to Variable Interest Entities and Note 16 , Non-controlling Interests. Income from Holdings and its subsidiaries prior to the reorganization and IPO has been accounted for as a non-controlling interest in our Consolidated Statements of Income and Comprehensive Income. Accumulated net income prior to the reorganization and IPO is presented in Net Parent Investment in our Consolidated Statements of Changes in Equity as the financial statements prior to the reorganization and IPO reflect combined subsidiaries operating as part of RHI. We have accounted for the reorganization as one of entities under common control and the Net Parent Investment was allocated between Total Non-controlling Interest and Additional Paid-in Capital based on the ownership of Holdings. Our consolidated financial statements for periods prior to the reorganization and IPO reflect the combined subsidiaries that historically operated as part of RHI. We have further adjusted the prior period results for the year ended December 31, 2019 , to retrospectively reflect the acquisition of Amrock Title Insurance Company (“ATI”) which qualified as a common control transaction as discussed further below in t he Acquisition Agreement secti on. All significant intercompany transactions and accounts between the businesses comprising the Company have been eliminated in the accompanying consolidated financial statements. The Company's derivatives, IRLCs, mortgage loans held for sale, MSRs (including MSRs collateral for financing liability and MSRs financing liability), and investments are measured at fair value on a recurring basis. Additionally, other assets may be required to be measured at fair value in the consolidated financial statements on a nonrecurring basis. Examples of such measurements are mortgage loans transferred between held for investment and held for sale, certain impaired loans, and other real estate owned. For further details of the Company's transactions refer to Note 2, Fair Value Measurements. All transactions and accounts between RHI and other related parties with the Company have a history of settlement or will be settled for cash and are reflected as related party transactions. For further details of the Company’s related party transactions refer to Note 7, Transactions with Related Parties. Our consolidated financial statements are audited and presented in U.S. dollars. They have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. We believe the assumptions underlying the consolidated financial statements, including the assumptions regarding allocation of expenses from RHI are reasonable. Prior to the reorganization and IPO, the executive management compensation expense has been allocated based on time incurred for services provided to Holdings and its subsidiaries for 2020 and 2019. Total costs allocated to us for these services were $96,199 and $52,250 for the years ended December 31, 2020 and 2019, respectively. These amounts were included in salaries, commissions and team member benefits in our Consolidated Statements of Income and Comprehensive Income. In our opinion, these 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. Acquisition Agreement On August 5, 2020, Rocket Companies, Inc. entered into an acquisition agreement with RHI and its direct subsidiary Amrock Holdings Inc. pursuant to which we acquired ATI, a title insurance underwriting business, for total aggregate consideration of $14,400 that consisted of 800,000 Holdings Units and shares of Rocket Companies, Inc. Class D common stock valued at the initial public offering price of $18.00 per share (the number of shares issued equals the purchase price divided by the price to the public in our initial public offering), the acquisition closed on August 14, 2020 subsequent to the IPO date on August 10, 2020. ATI's net income for the year ended December 31, 2019 was $4,700. Because the Acquisition was a transaction between commonly controlled entities, U.S. GAAP requires the retrospective combination of the entities for all periods presented as if the combination had been in effect since the inception of common control. Accordingly, the Company’s consolidated financial statements included in this Form 10-K, including for the year ended December 31, 2019, reflect the retrospective combination of the entities as if the combination had been in effect since inception of common control. Management Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results may differ from these estimates. Subsequent Events In preparing these consolidated financial statements, the Company evaluated events and transactions for potential recognition or disclosure through the date these consolidated financial statements were issued. Refer to Note 6, Borrowings for disclosures on changes to the Company’s debt agreements and Note 17, Share-based Compensation transactions subsequent to December 31, 2021. Subsequent to December 31, 2021, the Company sold MSRs relating to certain single-family mortgage loans with an aggregate unpaid principal balance of approximately $24.0 billion and a fair market value of approximately $254.4 million as of December 31, 2021. The sales represented approximately 4.4% of the Company’s total single-family mortgage servicing portfolio as of December 31, 2021. Special Dividends On February 25, 2021, our board of directors authorized and declared a cash dividend (the "2021 Special Dividend") of $1.11 per share to the holders of our Class A common stock. The 2021 Special Dividend was paid on March 23, 2021 to holders of the Class A common stock of record as of the close of business on March 9, 2021. The Company funded the 2021 Special Dividend from cash distributions of approximately $2.2 billion by RKT Holdings, LLC to all of its members, including the Company. On February 24, 2022, our board of directors declared a cash dividend (the "2022 Special Dividend") of $1.01 per share to the holders of our Class A common stock. The 2022 Special Dividend is payable on March 22, 2022 to holders of the Class A common stock of record as of the close of business on March 8, 2022. The Company will fund the 2022 Special Dividend from cash distributions of approximately $2.0 billion by RKT Holdings, LLC to all of its members, including the Company. Share Repurchase Authorization On November 10, 2020, our Board of Directors approved a share repurchase program of up to $1.0 billion of our Common Stock, including both Class A and Class D, which repurchases may be made, from time to time, in privately negotiated transactions or in the open market, in accordance with applicable securities laws (the “Share Repurchase Program”). The Share Repurchase Program will remain in effect for a two-year period. The Share Repurchase Program authorizes but does not obligate the Company to make any repurchases at any specific time. The timing and extent to which the Company repurchases its shares will depend upon, among other things, market conditions, share price, liquidity targets, regulatory requirements and other factors. As of December 31, 2021 approximately $768.4 million remains available under the Share Repurchase Program. Truebill Acquisition On December 23, 2021 (“Acquisition Date”), we completed the acquisition of Truebill, Inc. (“Truebill Acquisition”) for total cash consideration of approximately $1.2 billion. The Truebill acquisition was accounted for as a business combination under ASC 805, Business Combinations. This new line of business will add recurring monthly revenue through subscriptions. We recorded the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their fair values as of the Acquisition Date. The purchase price allocation is preliminary in nature as the Company is finalizing the valuation of the intangible assets acquired as part of the business combination. As the purchase price allocation is preliminary in nature our estimates and assumptions are subject to change within the measurement period. The preliminary purchase price allocation is as follows: Fair Value Cash $ 33,084 Accounts receivable, net 2,564 Other assets 9,068 Accounts payable and other liabilities (9,672) Deferred revenue (1) (4,454) Deferred tax liability (16,800) Net tangible assets acquired 13,790 Intangible assets 122,700 Goodwill (2) 1,130,989 Total assets acquired $ 1,267,479 (1) The deferred revenue was recorded under ASC 606 in accordance with ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers; therefore a reduction related to the estimated fair values of the acquired deferred revenues was not required. (2) Goodwill represents the excess of the purchase price over the estimated fair value of the identified net assets acquired and is attributable to broad synergies expected post-acquisition across multiple elements of the Rocket Platform. Goodwill associated with the Truebill acquisition is not deductible for tax purposes. The assignment of goodwill to reporting units has not been completed as of the date of these financial statements. The fair value of intangible assets is as follows: Useful Lives Fair Value Trade name (1) 1 $ 1,700 Developed technology (1) 3 32,000 Customer relationships (2) 10 89,000 Total intangible assets $ 122,700 (1) Estimated by applying the relief from royalty methodology, a form of the income approach. (2) Estimated by applying the multi-period excess earnings methodology, a form of the income approach. We incurred $1.8 million of expenses directly related to the Truebill Acquisition as of December 31, 2021 which are included in General and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. Pro forma financial information has not been presented for the Truebill Acquisition as the impact to our Consolidated Financial Statements was not material. Revenue Recognition Gain on sale of loans, net — includes all components related to the origination and sale of mortgage loans, including (1) net gain on sale of loans, which represents the premium we receive in excess of the loan principal amount and certain fees charged by investors upon sale of loans into the secondary market, (2) loan origination fees (credits), points and certain costs, (3) provision for or benefit from investor reserves, (4) the change in fair value of interest rate locks and loans held for sale, (5) the gain or loss on forward commitments hedging loans held for sale and interest rate lock commitments (IRLCs), and (6) the fair value of originated MSRs. An estimate of the gain on sale of loans, net is recognized at the time an IRLC is issued, net of a pull-through factor. Subsequent changes in the fair value of IRLCs and mortgage loans held for sale are recognized in current period earnings. When the mortgage loan is sold into the secondary market, any difference between the proceeds received and the current fair value of the loan is recognized in current period earnings in Gain on sale of loans, net. Included in Gain on sale of loans, net is the fair value of originated MSRs, which represents the estimated fair value of MSRs related to loans which we have sold and retained the right to service. Refer to Note 3, Mortgage Servicing Rights for information related to the gain/(loss) on changes in the fair value of MSRs. Loan servicing income (loss), net — includes income from servicing, sub-servicing and ancillary fees, and is recorded to income as earned, which is upon collection of payments from borrowers. This amount also includes the Change in fair value of MSRs, which is the adjustment for the fair value measurement of the MSR asset as of the respective balance sheet date. Interest income, net — includes interest earned on mortgage loans held for sale and mortgage loans held for investment net of the interest expense paid on our loan funding facilities. Interest income is recorded as earned and interest expense is recorded as incurred. Other income — is derived primarily from lead generation revenue, professional service fees, real estate network referral fees, contact center revenue, personal loans business, closing fees, net appraisal revenue, net title insurance fees and personal finance. The following revenue streams fall within the scope of ASC Topic 606 — Revenue from Contracts with Customers and are disaggregated hereunder: Core Digital Media lead generation revenue — The Company recognizes online consumer acquisition revenue based on successful delivery of marketing leads to a client at a fixed fee per lead. This service is satisfied at the time the lead is delivered, at which time revenue for the service is recognized. Online consumer acquisition revenue, net of intercompany eliminations, were $27,699, $24,231, and $41,895 for the years ended December 31, 2021, 2020, and 2019, respectively. Professional service fees — The Company recognizes professional service fee revenue based on the delivery of services (e.g., human resources, technology, training) over the term of a contract. Consideration for the promised services is received through a combination of a fixed fee for the period and incremental fees paid for optional services that are available at an incremental rate determined at the time such services are requested. The Company recognizes the annual fee ratably over the life of the contract, as the performance obligation is satisfied equally over the term of the contract. For the optional services, revenue is only recognized at the time the services are requested and delivered and pricing is agreed upon. Professional service fee revenues were $12,753, $10,884, and $8,320 for the years ended December 31, 2021, 2020, and 2019, respectively, and were rendered entirely to related parties. Rocket Homes real estate network referral fees — The Company recognizes real estate network referral fee revenue based on arrangements with partner agencies contingent on the closing of a transaction. As this revenue stream is variable, and is contingent on the successful transaction close, the revenue is constrained until the occurrence of the transaction. At this point, the constraint on recognizing revenue is deemed to have been lifted and revenue is recognized for the consideration expected to be received. Real estate network referral fees, net of intercompany eliminations, were $54,181, $42,777, and $39,924 for the years ended December 31, 2021, 2020, and 2019, respectively. Rock Connections and Rocket Auto contact center revenue — The Company recognizes contact center revenue for communication services including client support and sales. Consideration received mainly includes a fixed base fee and/or a variable contingent fee. The fixed base fee is recognized ratably over the period of performance, as the performance obligation is considered to be satisfied equally throughout the service period. The variable contingent fee related to car sales is constrained until the sale of the car is completed. Contact center revenues, net of intercompany eliminations, were $45,485, $27,904, and $27,055 for the years ended December 31, 2021, 2020, and 2019, respectively. Amrock closing fees — The Company recognizes closing fees for non-recurring services provided in connection with the origination of the loan. These fees are recognized at the time of loan closing for purchase transactions or at the end of a client's three-day rescission period for refinance transactions, which represents the point in time the loan closing services performance obligation is satisfied. The consideration received for closing services is a fixed fee per loan that varies by state and loan type. Closing fees were $506,685, $457,703, and $200,920 for the years ended December 31, 2021, 2020, and 2019, respectively. Amrock appraisal revenue, net — The Company recognizes appraisal revenue when the appraisal service is completed. The Company may choose to deliver appraisal services directly to its client or subcontract such services to a third-party licensed and/or certified appraiser. In instances where the Company performs the appraisal, revenue is recognized as the gross amount of consideration received at a fixed price per appraisal. The Company is an agent in instances where a third-party appraiser is involved in the delivery of appraisal services and revenue is recognized net of third-party appraisal expenses. Appraisal revenue, net was $96,471, $78,673, and $76,200 for the years ended December 31, 2021, 2020, and 2019, respectively. Marketing and Advertising Costs Marketing and advertising costs for direct and non-direct response advertising are expensed as incurred. The costs of brand marketing and advertising are expensed in the period the advertising space or airtime is used. The Company incurred marketing and advertising costs related to the naming rights for Rocket Mortgage Field House and other promotional sponsorships, which are related parties. Refer to Note 7. Transactions with Related Parties for further information. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We maintain our bank accounts with a relatively small number of high-quality financial institutions. Restricted cash as of December 31, 2021, 2020, and 2019 consisted of cash on deposit for a repurchase facility and client application deposits, title premiums collected from the insured that are due to the underwritten, principal and interest received in collection accounts for purchased assets, and a $25,000 bond. December 31, 2021 2020 2019 Cash and cash equivalents $ 2,131,174 $ 1,971,085 $ 1,394,571 Restricted cash 80,423 83,018 61,154 Total cash, cash equivalents, and restricted cash in the statement of cash flows $ 2,211,597 $ 2,054,103 $ 1,455,725 Mortgage Loans Held for Sale The Company has elected the fair value option for accounting for mortgage loans held for sale. Included in mortgage loans held for sale are loans originated as held for sale that are expected to be sold into the secondary market and loans that have been previously sold and repurchased from investors that management intends to resell into the secondary market. Refer to Note 4, Mortgage Loans Held for Sale , for further information. Derivative Financial Instruments The Company enters into interest rate lock commitments ("IRLCs"), forward commitments to sell mortgage loans and forward commitments to purchase loans, which are considered derivative financial instruments. These items are accounted for as free-standing derivatives and are included in the Consolidated Balance Sheets at fair value. The Company treats all of its derivative instruments as economic hedges; therefore, none of its derivative instruments qualify for designation as accounting hedges. Changes in the fair value of the IRLCs and forward commitments to sell mortgage loans are recorded in current period earnings and are included in gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income. Forward commitments to purchase mortgage loans are recognized in current period earnings and are included in gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income. The Company enters into IRLCs to fund residential mortgage loans with its potential borrowers. These commitments are binding agreements to lend funds to these potential borrowers at specified interest rates within specified periods of time. The fair value of IRLCs is derived from the fair value of similar mortgage loans or bonds, which is based on observable market data. Changes to the fair value of IRLCs are recognized based on changes in interest rates, changes in the probability that the commitment will be exercised, and the passage of time. The expected net future cash flows related to the associated servicing of the loan are included in the fair value measurement of rate locks. IRLCs and uncommitted mortgage loans held for sale expose the Company to the risk that the value of the mortgage loans held and mortgage loans underlying the commitments may decline due to increases in mortgage interest rates during the life of the commitments. To protect against this risk, the Company uses forward loan sale commitments to economically hedge the risk of potential changes in the value of the loans. These derivative instruments are recorded at fair value. The Company expects that the changes in fair value of these derivative financial instruments will either fully or partially offset the changes in fair value of the IRLCs and uncommitted mortgage loans held for sale. The changes in the fair value of these derivatives are recorded in gain on sale of loans, net. MSR assets (including the MSR value associated with outstanding IRLCs) that the Company plans to sell expose the Company to the risk that the value of the MSR asset may decline due to decreases in mortgage interest rates prior to the sale of these assets. To protect against this risk, the Company uses forward loan purchase commitments to economically hedge the risk of potential changes in the value of MSR assets that have been identified for sale. These derivative instruments are recorded at fair value. The Company expects that the changes in fair value of these derivative financial instruments will either fully or partially offset the changes in fair value of the MSR assets the Company intends to sell. The changes in fair value of these derivatives are recorded in the change in fair value of MSRs, net. Forward commitments include To-Be-Announced ("TBA") mortgage-backed securities that have been aggregated at the counterparty level for presentation and disclosure purposes. Counterparty agreements contain a legal right to offset amounts due to and from the same counterparty under legally enforceable master netting agreements to settle with the same counterparty, on a net basis, as well as the right to obtain cash collateral. Forward commitments also include commitments to sell loans to counterparties and to purchase loans from counterparties at determined prices. Refer to Note 12, Derivative Financial Instruments for further information. Mortgage Servicing Rights Mortgage servicing rights are recognized as assets on the Consolidated Balance Sheets when loans are sold, and the associated servicing rights are retained. The Company maintains one class of MSR asset and has elected the fair value option. These 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. Refer to Note 3, Mortgage Servicing Rights for further information. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation of property and equipment is generally computed on a straight-line basis over the estimated useful lives of the assets. Amortization of leasehold improvements is computed on a straight-line basis over the shorter of the estimated useful lives or the remaining lease terms. Depreciation is not recorded on projects-in-process until the project is complete and the associated assets are placed into service or are ready for the intended use. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts; any resulting gain or loss is credited or charged to operations. Costs of maintenance and repairs are charged to expense as incurred. Refer to Note 5, Property and Equipment for further information. Loans subject to repurchase right from Ginnie Mae For certain loans sold to Ginnie Mae, the Company as the servicer has the unilateral right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets defined criteria, including being delinquent more than 90 days. Once the Company has the unilateral right to repurchase the delinquent loan, the Company has effectively regained control over the loan and must re-recognize the loan on the Consolidated Balance Sheets and establish a corresponding finance liability regardless of the Company's intention to repurchase the loan. The asset and corresponding liability are recorded at the unpaid principal balance of the loan, which approximates its fair value. Non-controlling interests As noted above, we are the sole managing member of Holdings and consolidate the financial results of Holdings. Therefore, we report a non-controlling interest based on the Holdings Units of Holdings held by Dan Gilbert, our founder and Chairman (our "Chairman") and RHI (the "non-controlling interest holders") on our Consolidated Balance Sheets. Income or loss is attributed to the non-controlling interests based on the weighted average Holdings Units outstanding during the period and is presented on the Consolidated Statements of Income and Comprehensive Income. Refer to Note 16, Non-controlling Interests for more information. Share-based Compensation In connection with the IPO, equity-based awards were issued under the Rocket Companies, Inc. 2020 Omnibus Incentive Plan including restricted stock units and stock options to purchase shares of our Class A common stock at an exercise price equal to the price to the public in the initial public offering. Share-based compensation expense is recorded as a component of salaries, commissions and team member benefits. Share-based compensation expense is recognized on a straight-line basis over the requisite service period based on the fair value of the award on the date of grant, refer to Note 17, Share-based Compensation for additional information. Income taxes Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes predominantly in the United States and Canada. These tax laws are often complex and may be subject to different interpretations. Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence. If based upon all available positive and negative evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if the Company determines that it is more likely than not that all or part of the deferred tax asset will become realizable. Our interpretations of tax laws are subject to review and examination by various taxing authorities and jurisdictions where the Company operates, and disputes may occur regarding its view on a tax position. These disputes over interpretations with the various tax authorities may be settled by audit, administrative |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 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 Company’s estimates of market participants’ assumptions. Fair value measurements are classified in the following manner: Level 1 —Valuation is based on quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Valuation 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 —Valuation is based on the Company’s internal models using assumptions at the measurement date that a market participant would use. In determining fair value measurement, the Company uses observable inputs whenever possible. The level of a fair value measurement within the hierarchy is dependent on the lowest level of input that has a significant impact on the measurement as a whole. If quoted market prices are available at the measurement date or are available for similar instruments, such prices are used in the measurements. If observable market data is not available at the measurement date, judgment is required to measure fair value. The following is a description of measurement techniques for items recorded at fair value on a recurring basis. There were no material items recorded at fair value on a nonrecurring basis as of December 31, 2021 or December 31, 2020. Mortgage loans held for sale: Loans held for sale that trade in active secondary markets are valued using Level 2 measurements derived from observable market data, including market prices of securities backed by similar mortgage loans adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk. Loans held for sale for which there is little to no observable trading activity of similar instruments are valued using Level 3 measurements based upon dealer price quotes. IRLCs: The fair value of IRLCs is based on current market prices of securities backed by similar mortgage loans (as determined above under mortgage loans held for sale), net of costs to close the loans, subject to the estimated loan funding probability, or “pull-through factor”. Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3. MSRs: The fair value of MSRs (including MSRs collateral for financing liability and MSRs financing liability) is determined using an internal 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, float earnings, contractual servicing fee income, and ancillary income among others. MSRs are classified as Level 3. Forward commitments: The Company’s forward commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable and are classified within Level 2 of the valuation hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis The table below shows a summary of financial statement items that are measured at estimated fair value on a recurring basis, including assets measured under the fair value option. There were no material transfers of assets or liabilities recorded at fair value on a recurring basis between Levels 1, 2 or 3 during the year ended December 31, 2021 or the year ended December 31, 2020. Level 1 Level 2 Level 3 Total Balance at December 31, 2021 Assets: Mortgage loans held for sale $ — $ 17,014,202 $ 2,309,366 $ 19,323,568 IRLCs — — 538,861 538,861 MSRs — — 5,385,613 5,385,613 Forward commitments — 17,337 — 17,337 Total assets $ — $ 17,031,539 $ 8,233,840 $ 25,265,379 Liabilities: Forward commitments $ — $ 19,911 $ — $ 19,911 Total liabilities $ — $ 19,911 $ — $ 19,911 Balance at December 31, 2020 Assets: Mortgage loans held for sale $ — $ 22,285,440 $ 579,666 $ 22,865,106 IRLCs — — 1,897,194 1,897,194 MSRs — — 2,862,685 2,862,685 MSRs collateral for financing liability (1) — — 205,033 205,033 Forward commitments — 20,584 — 20,584 Total assets $ — $ 22,306,024 $ 5,544,578 $ 27,850,602 Liabilities: Forward commitments $ — $ 506,071 $ — $ 506,071 MSRs financing liability (1) — — 187,794 187,794 Total liabilities $ — $ 506,071 $ 187,794 $ 693,865 (1) Refer to Note 3, Mortgage Servicing Rights for further information regarding both the MSRs collateral for financing liability and MSRs financing liability. The following tables present the quantitative information about recurring Level 3 fair value financial instruments and the fair value measurements as of: December 31, 2021 December 31, 2020 Unobservable Input Range Weighted Average Range Weighted Average Mortgage loans held for sale Dealer pricing 89% - 103% 99 % 89% - 105% 99 % IRLCs Loan funding probability 0% - 100% 78 % 0% - 100% 74 % MSRs (1) Discount rate 9.0% - 12.0% 9.5 % 9.5% - 12.0% 9.9 % Conditional prepayment rate 6.8% - 36.9% 8.7 % 6.6% - 52.1% 15.8 % (1) For 2020, also includes MSRs collateral for financing liability, and MSRs financing liability. The table below presents a reconciliation of Level 3 assets measured at fair value on a recurring basis for the years ended December 31, 2021 and 2020. Mortgage servicing rights (including MSRs collateral for financing liability and MSRs financing liability) are also classified as a Level 3 asset measured at fair value on a recurring basis and its reconciliation is found in Note 3, Mortgage Servicing Rights. Loans Held for Sale IRLCs Balance at December 31, 2020 $ 579,666 $ 1,897,194 Transfers in (1) 3,524,260 — Transfers out/principal reductions (1) (1,788,552) — Net transfers and revaluation losses — (1,358,333) Total losses included in net income (6,008) — Balance at December 31, 2021 $ 2,309,366 $ 538,861 Balance at December 31, 2019 $ 308,793 $ 508,135 Transfers in (1) 1,215,121 — Transfers out/principal reductions (1) (944,446) — Net transfers and revaluation gains — 1,389,059 Total gains included in net income 198 — Balance at December 31, 2020 $ 579,666 $ 1,897,194 (1) Transfers in represent loans repurchased from investors or loans originated for which an active market currently does not exist. Transfers out primarily represent loans sold to third parties and loans paid in full. Fair Value Option The following is the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans held for sale that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for mortgage loans held for sale as the Company believes fair value best reflects their expected future economic performance: Fair Value Principal Amount Due Upon Maturity Difference (1) Balance at December 31, 2021 $ 19,323,568 $ 19,018,552 $ 305,016 Balance at December 31, 2020 $ 22,865,106 $ 21,834,817 $ 1,030,289 (1) Represents the amount of gains included in Gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option. Disclosures of the fair value of certain financial instruments are required when it is practical to estimate the value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. The following table presents the carrying amounts and estimated fair value of financial liabilities that are not recorded at fair value on a recurring or nonrecurring basis. This table excludes cash and cash equivalents, restricted cash, warehouse borrowings, and line of credit borrowing facilities as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value: December 31, 2021 December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes, due 10/15/2026 $ 1,139,146 $ 1,151,932 $ — $ — Senior Notes, due 1/15/2028 61,197 64,251 994,986 1,079,629 Senior Notes, due 3/1/2029 742,812 752,805 741,946 766,365 Senior Notes, due 3/1/2031 1,237,605 1,273,675 1,236,114 1,298,175 Senior Notes, due 10/15/2033 841,731 857,718 — — Total Senior Notes, net $ 4,022,491 $ 4,100,381 $ 2,973,046 $ 3,144,169 The fair value of Senior Notes was calculated using the observable bond price at December 31, 2021 and 2020, respectively. The Senior Notes are classified as Level 2 in the fair value hierarchy. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights The following table summarizes changes to the MSR assets for the year ended: Year Ended December 31, 2021 2020 Fair value, beginning of period $ 2,862,685 $ 2,874,972 MSRs originated 3,864,359 3,124,659 MSRs sales (936,257) (770,809) MSRs purchases 200,591 — Changes in fair value: Due to changes in valuation model inputs or assumptions (1) 589,852 (1,274,937) Due to collection/realization of cash flows (1,195,617) (1,091,200) Total changes in fair value (605,765) (2,366,137) Fair value, end of period $ 5,385,613 $ 2,862,685 (1) Reflects changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates. Does not include the change in fair value of derivatives that economically hedge MSRs identified for sale or the effects of contractual prepayment protection resulting from sales of MSRs. The total UPB of mortgage loans serviced, excluding subserviced loans, at December 31, 2021 and 2020 was $485,087,214 and $371,494,905, respectively. The portfolio primarily consists of high-quality performing agency and government (FHA and VA) loans. As of December 31, 2021, delinquent loans (defined as 60-plus days past-due) were 1.60% of our total portfolio. Excluding clients in forbearance plans, our delinquent loans (defined as 60-plus days past-due) were 0.94% as of December 31, 2021. During the fourth quarter of 2020, the Company sold MSRs with a fair value of $193,739 relating to certain single-family mortgage loans. Based on the contract terms, the sale of those MSRs did not immediately qualify for sale accounting treatment under U.S. GAAP. The Company reported an MSRs asset (i.e., MSRs collateral for financing liability, at fair value) and MSRs liability (i.e., MSRs financing liability, at fair value) on the Consolidated Balance Sheets using a methodology consistent with the Company's method for valuing MSRs until certain contractual provisions lapsed, which occurred during the second quarter of 2021. Therefore, at December 31, 2021, all MSRs sold by the Company qualified for sale accounting treatment under U.S. GAAP. The following is a summary of the weighted average discount rate and prepayment speed assumptions used to determine the fair value of MSRs as well as the expected life of the loans in the servicing portfolio: December 31, 2021 December 31, 2020 Discount rate 9.5 % 9.9 % Prepayment speeds 8.7 % 15.8 % Life (in years) 7.25 5.05 The key assumptions used to estimate the fair value of MSRs are prepayment speeds and the discount rate. Increases in prepayment speeds generally have an adverse effect on the value of MSRs as the underlying loans prepay faster. In a declining interest rate environment, the fair value of MSRs generally decreases as prepayments increase and therefore, the estimated life of the MSRs and related cash flows decrease. Decreases in prepayment speeds generally have a positive effect on the value of MSRs as the underlying loans prepay less frequently. In a rising interest rate environment, the fair value of MSRs generally increases as prepayments decrease and therefore, the estimated life of the MSRs and related cash flows increase. Increases in the discount rate result in a lower MSRs value and decreases in the discount rate result in a higher MSRs value. MSRs uncertainties are hypothetical and do not always have a direct correlation with each assumption. Changes in one assumption may result in changes to another assumption, which might magnify or counteract the uncertainties. The following table stresses the discount rate and prepayment speeds at two different data points: Discount Rate Prepayment Speeds 100 BPS Adverse Change 200 BPS Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2021 Mortgage servicing rights $ (232,658) $ (435,181) $ (198,153) $ (372,018) December 31, 2020 Mortgage servicing rights $ (115,130) $ (212,119) $ (147,420) $ (279,691) |
Mortgage Loans Held for Sale
Mortgage Loans Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Mortgage Loans Held for Sale | Mortgage Loans Held for SaleThe Company sells substantially all of its originated mortgage loans into the secondary market. The Company may retain the right to service some of these loans upon sale through ownership of servicing rights. A reconciliation of the changes in mortgage loans held for sale to the amounts presented on the Consolidated Statements of Cash Flows is below: Year Ended December 31, 2021 2020 Balance at the beginning of period $ 22,865,106 $ 13,275,735 Disbursements of mortgage loans held for sale 352,968,791 316,702,083 Proceeds from sales of mortgage loans held for sale (1) (363,970,300) (318,218,159) Gain on sale of mortgage loans excluding fair value of other financial instruments, net (2) 7,459,971 11,105,447 Balance at the end of period $ 19,323,568 $ 22,865,106 (1) The proceeds from sales of loans held for sale on the Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans. (2) The Gain on sale of loans excluding fair value of MSRs, net on the Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans, interest rate lock commitments, forward commitments, and provisions for investor reserves. Credit Risk The Company is subject to credit risk associated with mortgage loans that it purchases and originates during the period of time prior to the sale of these loans. The Company considers credit risk associated with these loans to be insignificant as it holds the loans for a short period of time, which for the year ended December 31, 2021 is, on average, approximately 19 days from the date of borrowing, and the market for these loans continues to be highly liquid. The Company is also subject to credit risk associated with mortgage loans it has repurchased as a result of breaches of representations and warranties during the period of time between repurchase and resale. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are depreciated over lives primarily ranging from 3 to 7 years for office furniture, equipment, computer software and leasehold improvements. Property and equipment consist of the following: December 31, 2021 2020 Office furniture, equipment, and technology $ 419,583 $ 380,826 Leasehold improvements 229,335 148,320 Internally-developed software 116,473 100,393 Projects-in-process 56,391 79,434 Total cost $ 821,782 $ 708,973 Accumulated depreciation and amortization (567,406) (497,812) Total property and equipment, net $ 254,376 $ 211,161 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company maintains various funding facilities and other non-funding debt as shown in the tables below. Interest rates typically have two main components – a base rate most commonly LIBOR or SOFR, which is sometimes subject to a minimum floor plus a spread. Some facilities have a commitment fee, which can range from 0% to 0.50% per year. The commitment fee charged by lenders is calculated based on the committed line amount multiplied by a negotiated rate. The Company is required to maintain certain covenants, including minimum tangible net worth, minimum liquidity, maximum total debt or liabilities to net worth ratio, pretax net income requirements, and other customary debt covenants, as defined in the agreements. The Company was in compliance with all covenants as of December 31, 2021 and 2020. The amount owed and outstanding on the Company’s loan funding facilities fluctuates greatly based on its origination volume, the amount of time it takes the Company to sell the loans it originates, and the Company’s ability to use its cash to self-fund loans. In addition to self-funding, the Company may from time to time use surplus cash to “buy-down” the effective interest rate of certain loan funding facilities or to self-fund a portion of our loan originations. As of December 31, 2021, $3,776,174 of the Company’s cash was used to buy-down our funding facilities and self-fund, $275,000 of which are buy-down funds that are included in Cash and cash equivalents on the Consolidated Balance Sheets and an estimated $3,501,174 of which is discretionary self-funding that reduces Cash and cash equivalents on the Consolidated Balance Sheets. The Company has the right to withdraw the $275,000 at any time, unless a margin call has been made or a default has occurred under the relevant facilities. The Company has an estimated $3,501,174 of discretionary self-funded loans, of which a portion can be transferred to a warehouse line or the early buy out line, provided that such loans meet the eligibility criteria to be placed on such lines. The remaining portion will be funded in normal course over a short period of time, generally less than one month. A large unanticipated margin call could also have a material adverse effect on the Company’s liquidity. The terms of the Senior Notes restrict our ability and the ability of our subsidiary guarantors among other things to: (1) merge, consolidate or sell, transfer or lease assets, and; (2) create liens on assets. In connection with the previously announced Tender Offer and Consent Solicitation completed October 5, 2021, the Company eliminated substantially all of the restrictive covenants related to the 2028 Senior Notes. Funding Facilities Facility Type Collateral Maturity Line Amount Committed Line Amount Outstanding Balance as of December 31, 2021 Outstanding Balance as of December 31, 2020 MRA funding: 1) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 10/20/2023 $ 2,000,000 $ 100,000 $ 249,119 $ 999,752 2) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 12/1/2022 1,500,000 500,000 1,328,727 1,320,484 3) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 4/21/2023 2,750,000 1,000,000 1,714,806 2,407,156 4) Master Repurchase Agreement (1)(5) Mortgage loans held for sale (4) 10/26/2022 1,700,000 1,400,000 1,479,128 1,953,949 5) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 4/20/2023 3,000,000 500,000 2,264,954 2,004,707 6) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 9/22/2023 2,000,000 500,000 498,335 1,780,902 7) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 9/15/2023 1,200,000 500,000 542,846 1,343,130 8) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 6/10/2022 500,000 — — 219,786 9) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 9/22/2023 1,500,000 500,000 539,257 983,126 10) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 8/16/2023 750,000 100,000 616,165 480,544 11) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 12/16/2022 1,000,000 250,000 253,389 765,432 17,900,000 5,350,000 9,486,726 14,258,968 Early Funding: 12) Early Funding Facility (2)(5) Mortgage loans held for sale (4) (2) 4,000,000 — 2,071,154 2,514,193 13) Early Funding Facility (3)(5) Mortgage loans held for sale (4) (3) 3,000,000 — 1,193,712 969,412 7,000,000 — 3,264,866 3,483,605 Total $ 24,900,000 $ 5,350,000 $ 12,751,592 $ 17,742,573 (1) This facility has a 12-month initial term, which can be extended for 3-months at each subsequent 3-month anniversary from the initial start date. Subsequent to December 31, 2021, this facility was amended to decrease the total facility size to $1,500,000 with $1,200,000 committed and was extended to January 26, 2023. (2) This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice. (3) This facility will have an overall line size of $3,000,000, which will be reviewed every 90 days. This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice. (4) The Company has multiple borrowing facilities in the form of asset sales under agreements to repurchase. These borrowing facilities are secured by mortgage loans held for sale at fair value as the first priority security interest. (5) The interest rates charged by lenders of the funding facilities included the applicable base rate plus a spread ranging from 1.00% and 2.25% for the year ended December 31, 2021, and 0.40% to 2.30%, for the year ended December 31, 2020. Other Financing Facilities Facility Type Collateral Maturity Line Amount Committed Line Amount Outstanding Balance as of December 31, 2021 Outstanding Balance as of December 31, 2020 Line of Credit Financing Facilities 1) Unsecured line of credit (1) — 7/27/2025 $ 2,000,000 $ — $ — $ — 2) Unsecured line of credit (1) — 7/31/2025 100,000 — — — 3) Revolving credit facility (3) — 8/10/2024 1,000,000 1,000,000 — 300,000 4) MSR line of credit (3) MSRs 10/20/2023 200,000 — — — 5) MSR line of credit (2)(3) MSRs (2) 200,000 200,000 75,000 75,000 $ 3,500,000 $ 1,200,000 $ 75,000 $ 375,000 Early Buyout Financing Facility 6) Early buy out facility (3) Loans/ Advances 3/13/2023 $ 2,600,000 $ — $ 1,896,784 $ 330,266 (1) Refer to Note 7, Transactions with Related Parties for additional details regarding this unsecured line of credit (2) This MSR facility can be drawn upon for corporate purposes and is collateralized by GSE MSRs within our servicing portfolio. This facility has a 5-year total commitment comprised of a 3-year revolving period that expires on April 30, 2022 followed by a 2-year amortization period that expires on April 30, 2024. (3) The interest rates charged by lenders on the other funding facilities included the applicable base rate, plus a spread ranging from 1.45% to 4.00% for the year ended December 31, 2021, and the applicable base rate plus a spread ranging from 1.75% to 4.00% for the year ended December 31, 2020. Unsecured Senior Notes Facility Type Maturity Interest Rate Outstanding Balance as of December 31, 2021 Outstanding Balance as of December 31, 2020 Unsecured Senior Notes(1) 10/15/2026 2.875 % $ 1,150,000 $ — Unsecured Senior Notes(2) 1/15/2028 5.250 % 61,985 1,010,000 Unsecured Senior Notes(3) 3/1/2029 3.625 % 750,000 750,000 Unsecured Senior Notes(4) 3/1/2031 3.875 % 1,250,000 1,250,000 Unsecured Senior Notes(5) 10/15/2033 4.000 % 850,000 — Total Senior Notes $ 4,061,985 $ 3,010,000 Weighted Average Interest Rate 3.59 % 4.27 % (1) The 2026 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $1,150,000 carrying amount on the Consolidated Balance Sheets by $10,854, as of December 31, 2021. Prior to October 15, 2023 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after October 15, 2023, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to April 15, 2023, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 102.875% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter. Year Percentage 2023 101.438 % 2024 100.719 % 2025 and thereafter 100.000 % (2) The 2028 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. During the fourth quarter of 2021, we purchased $948,015 of the outstanding principal amount of the 2028 Senior Notes in a Tender Offer and Consent Solicitation. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $61,985 carrying amount on the Consolidated Balance Sheets by $430 and $358 as of December 31, 2021, respectively and reducing the $1,010,000 carrying amount on the Consolidated Balance Sheets by $8,197 and $6,817, as of December 31, 2020, respectively. At any time and from time to time on or after January 15, 2023, the Company may redeem the notes at its option, in whole or in part, upon not less than 30 nor more than 60 days' notice, at the redemption prices equal to the percentage of principal amount set forth below plus accrued and unpaid interest, if any, to but excluding the redemption date, in cash, if redeemed during the twelve-month period beginning on January 15 in the years indicated below: Year Percentage 2023 102.625 % 2024 101.750 % 2025 100.875 % 2026 and thereafter 100.000 % (3) The 2029 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $750,000 carrying amount on the Consolidated Balance Sheets by $7,188 and $8,053, as of December 31, 2021 and 2020, respectively. Prior to March 1, 2024 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after March 1, 2024, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to September 1, 2023, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 103.625% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter. Year Percentage 2024 101.813 % 2025 100.906 % 2026 and thereafter 100.000 % (4) The 2031 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $1,250,000 carrying amount on the Consolidated Balance Sheets by $12,395 and $13,887 as of December 31, 2021 and 2020, respectively. Prior to March 1, 2026 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after March 1, 2026, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to September 1, 2023, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 103.875% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter. Year Percentage 2026 101.938 % 2027 101.292 % 2028 100.646 % 2029 and thereafter 100.000 % (5) The 2033 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $850,000 carrying amount on the Consolidated Balance Sheets by $8,269, as of December 31, 2021. Prior to October 15, 2027 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after October 15, 2027, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to April 15, 2024, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 104.000% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter. Year Percentage 2027 102.000 % 2028 101.333 % 2029 100.667 % 2030 and thereafter 100.000 % The following table outlines the contractual maturities (by unpaid principal balance) of unsecured senior notes (excluding interest and debt discount) for the years ended. Year Amount 2022 $ — 2023 — 2024 — 2025 — 2026 1,150,000 Thereafter 2,911,985 Total $ 4,061,985 Refer to Note 2, Fair Value Measurements for information pertaining to the fair value of the Company’s debt as of December 31, 2021 and 2020. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties The Company has entered into various transactions and agreements with RHI, its subsidiaries, certain other affiliates and related parties (collectively, “Related Parties”). These transactions include providing financing and services as well as obtaining financing and services from these Related Parties. Financing Arrangements On June 9, 2017, Rocket Mortgage and RHI entered into an unsecured line of credit, as further amended and restated on September 16, 2021 ("RHI Line of Credit"), pursuant to which Rocket Mortgage has a borrowing capacity of $2,000,000. The RHI Line of Credit matures on July 27, 2025. Borrowings under the line of credit bear interest at a rate per annum of one month LIBOR plus 1.25%. The line of credit is uncommitted and RHI has sole discretion over advances. The RHI Line of Credit also contains negative covenants which restrict the ability of the Company to incur debt and create liens on certain assets. It also requires Rocket Mortgage to maintain a quarterly consolidated net income before taxes if adjusted tangible net worth meets certain requirements. As of December 31, 2021 and December 31, 2020, there were no outstanding principal amounts due to RHI pursuant to the RHI Line of Credit. In the year ended December 31, 2021 and December 31, 2020, Rocket Mortgage repaid an aggregate of $2,502,793 and $2,201,621, respectively, under the RHI Line of Credit. As of December 31, 2021 and December 31, 2020, the total amount of interest paid under the line was $2,793 and $1,621, respectively, with outstanding interest due to RHI of $762 and zero, respectively. RHI and ATI are parties to a surplus debenture, effective as of December 28, 2015, and as further amended and restated on December 31, 2019 (the “RHI/ATI Debenture”), pursuant to which ATI is indebted to RHI for an aggregate principal amount of $21,500. The RHI/ATI Debenture matures on December 31, 2030. Interest under the RHI/ATI Debenture accrues at an annual rate of 8%. Principal and interest under the RHI/ATI Debenture are due and payable quarterly, in each case subject to ATI achieving a certain amount of surplus and payments of all interest before principal payments begin. Any unpaid amounts of principal and interest shall be due and payable upon the maturity of the RHI/ATI Debenture. In the year ended December 31, 2021, and December 31, 2020, ATI repaid an aggregate of $1,000 and $1,000, respectively, under the RHI/ATI Debenture. In the year ended December 31, 2021 and December 31, 2020, the total amount of interest accrued under the RHI/ATI Debenture was $1,720 and $1,725, respectively. On July 31, 2020, Holdings and RHI entered into an agreement for an uncommitted, unsecured revolving line of credit ("RHI 2nd Line of Credit’’), which will provide for financing from RHI to the Company of up to $100,000. The RHI 2nd Line of Credit matures on July 31, 2025. Borrowings under the line of credit will bear interest at a rate per annum of one month LIBOR plus 1.25%. The negative covenants of the line of credit restrict the ability of the Company to incur debt and create liens on certain assets. The line of credit also contains customary events of default. As of December 31, 2021 and December 31, 2020 there were no draws on the RHI 2nd Line of Credit and no amounts outstanding. The amounts receivable from and payable to Related Parties consisted of the following as of: December 31, 2021 December 31, 2020 Principal Interest Rate Principal Interest Rate Included in Notes receivable and due from affiliates on the Consolidated Balance Sheets Affiliated receivables and other notes $ 9,753 — $ 22,172 — Notes receivable and due from affiliates $ 9,753 $ 22,172 Included in Notes payable and due to affiliates on the Consolidated Balance Sheets RHI/ATI Debenture $ 21,500 8.00 % $ 21,500 8.00 % Affiliated payables 12,150 — 52,396 — Notes payable and due to affiliates $ 33,650 $ 73,896 Services, Products and Other Transactions We have entered into transactions and agreements to provide certain services to Related Parties. We recognized revenue of $13,275, $14,081 and $12,405 for the years ended December 31, 2021, 2020 and 2019, respectively, for the performance of these services, which was included in Other income. We have also entered into transactions and agreements to purchase certain services, products and other transactions from Related Parties. We incurred expenses of $168,581, $215,728 and $67,752 for the years ended December 31, 2021, 2020 and 2019, respectively, for these products, services and other transactions, which are included in General and administrative expenses. The Company has also entered into a Tax Receivable Agreement with RHI and our Chairman as described further in Note 11, Income Taxes. The Company has also guaranteed the debt of a related party as described further in Note 13, Commitments, Contingencies, and Guarantees . Promotional Sponsorships The Company incurred marketing and advertising costs related to the Rocket Mortgage Field House Naming Rights Contract and other promotional sponsorships, which are related parties. The Company incurred expenses of $9,026, $10,330, and $9,675 and for the years ended December 31, 2021, 2020 and 2019, respectively, related to these arrangements. Lease Transactions with Related Parties The Company is a party to lease agreements for certain offices, including our headquarters in Detroit, with various affiliates of Bedrock Management Services LLC (“Bedrock”), a related party, and other related parties of the Company. The Company incurred expenses of $76,960, $70,157 and $69,582 for the years ended December 31, 2021, 2020 and 2019, respectively, related to these arrangements. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company enters into lease arrangements with independent third parties and with related parties. Upon adoption of ASU No. 2016-02, Leases (Topic 842) in 2019, the Company elected not to reassess its previous evaluation of the lease term, the exercise of any purchase options and impairment of right-of-use assets for transitioned leases. The Company’s operating leases, in which the Company is the lessee primarily, include real estate for our office facilities. The Company determines whether an arrangement is or contains a lease at inception. Leases are classified as either finance or operating at the commencement date of the lease, with classification affecting the pattern of expense recognition in the Consolidated Statements of Income and Comprehensive Income. The Company currently does not have any finance leases, and the vast majority of the Company’s operating lease expense is paid to a related party. Refer to Note 7, Transactions with Related Parties for information regarding lease transaction expenses with related parties. For lease arrangements where the Company is the lessee, the Company does not separate non-lease components of a contract from the lease component to which they relate. The Company elected that leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. The lease expense for these leases is recognized on a straight-line basis over the lease term in the Consolidated Statements of Income and Comprehensive Income. The Company’s leases generally have remaining lease terms of one year to ten years. Some leases include options to extend or terminate the lease at the Company’s sole discretion on a lease-by-lease basis, and the Company evaluates whether those options are “reasonably certain” of being exercised considering contractual and economic-based factors. The Company used its periodic incremental borrowing rate, based on the information available at commencement date, to determine the present value of future lease payments. The components of lease expense for the years ended: December 31, 2021 2020 Operating Lease Cost: Fixed lease expense (1) $ 77,286 $ 69,200 Variable lease expense (2) 12,246 13,863 Total operating lease cost $ 89,532 $ 83,063 (1) Short term lease expense and month to month lease expense are included within this amount, and are immaterial. (2) Variable lease payments are expensed in the period in which the obligation for those payments is incurred. These variable lease costs are payments that vary in amount beyond commencement date, for reasons other than passage of time. The Company’s variable payments mainly include common area maintenance and building utilities fees. Supplemental cash flow information related to leases for the years ended: December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 77,967 $ 70,717 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 265,011 $ 16,743 Supplemental balance sheet information related to leases for the year ended: December 31, 2021 2020 Operating Leases: Total lease right-of-use assets $ 427,895 $ 238,546 Total lease liabilities $ 482,184 $ 272,274 Weighted average lease term 7.5 years 6.4 years Weighted average discount rate 3.61 % 4.24 % Maturities of lease liabilities for the year ended: Operating Leases: 2022 $ 83,054 2023 75,641 2024 70,497 2025 68,780 2026 67,616 Thereafter 185,488 Total lease payments $ 551,076 Less imputed interest 68,892 Total $ 482,184 When applying the requirements of Topic 842, the Company made assumptions about the determination of whether a contract contains a lease and the determination of the discount rate for the lease. Lessor While the Company is the sublessor in certain leasing arrangements, the majority of such lease arrangements are intercompany and eliminated in consolidation. Additionally, the accounting guidance for lessors is largely unchanged, therefore, the adoption of ASC 842 did not have a material impact on the Company’s consolidated financial statements. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: December 31, 2021 2020 Goodwill and other intangible assets (1) $ 1,296,926 $ 47,230 Mortgage production related receivables 393,513 307,282 Prepaid expenses 141,512 98,529 Non-production-related receivables 114,557 76,595 Ginnie Mae buyouts 28,149 40,681 Disbursement funds advanced 27,493 80,877 Other real estate owned 492 1,131 Margin call receivable from counterparty 137 247,604 Other 113,035 41,548 Total other assets $ 2,115,814 $ 941,477 (1) Refer to Note 1 Business, Basis of Presentation and Accounting Policies for additional information regarding the acquisition of Truebill. |
Team Member Benefit Plan
Team Member Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Team Member Benefit Plan | Team Member Benefit PlanThe Company maintains a defined contribution 401(k) plan which is sponsored by RHI, covering substantially all full-time and part-time team members of the Company. Team members can make elective contributions to the plan. The Company makes discretionary matching contributions of 50% of team members’ contributions to the plan up to an annual maximum of $2.5 per team member. The Company’s contributions to the plan, net of team member forfeitures, for the years ended December 31, 2021, 2020, and 2019 amounted to $44,060, $47,072, and $35,556, respectively, and are included in Salaries, commissions and team member benefits in the Consolidated Statements of Income and Comprehensive Income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes consists of the following: Year Ended December 31, 2021 2020 2019 U.S. $ 6,202,190 $ 9,544,721 $ 912,738 Canada (17,289) (13,064) (8,298) Total income before income taxes $ 6,184,901 $ 9,531,657 $ 904,440 The provision for (benefit from) income taxes consists of the following: Year Ended December 31, 2021 2020 2019 Current U.S. Federal $ 49,650 $ 38,000 $ 1,747 State and local 14,493 27,971 4,822 Canada 276 (120) 57 Total Current $ 64,419 $ 65,851 $ 6,626 Deferred U.S. Federal $ 49,426 $ 45,713 $ (468) State and local (1,041) 20,817 1,152 Canada (66) — — Total Deferred $ 48,319 $ 66,530 $ 684 Total provision for income taxes $ 112,738 $ 132,381 $ 7,310 The reconciliation of the U.S. Federal statutory corporate income tax rate to the provision for income taxes consists of the following: Year Ended December 31, 2021 2020 2019 U.S. Federal statutory tax rate 21.00 % 21.00 % 21.00 % Income attributable to non-controlling interest (19.33) (20.27) (21.05) Other 0.15 0.66 0.86 Effective tax rate 1.82 % 1.39 % 0.81 % The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to its organizational structure. Prior to the IPO, the Company was owned by RHI which has elected S corporation status. When owned by RHI, Rocket Mortgage, Amrock and several other wholly-owned corporations had elected to be treated as qualified subchapter S subsidiaries. The shareholders of RHI, as shareholders of an S corporation, are responsible for the federal income tax liabilities. A provision for state income taxes is required for certain jurisdictions that tax S corporations and their qualified Subchapter S subsidiaries and for states where the Company is taxed as a C Corporation. In a series of transactions occurring along with the IPO, subsidiaries of the Company were contributed to Holdings by RHI. Several of these subsidiaries, such as Rocket Mortgage, Amrock and other subsidiaries, are no longer qualified Subchapter S corporations and are single member LLC entities owned by Holdings. As single member LLCs of Holdings, all taxable income or loss generated by these subsidiaries will pass through and be included in the income or loss of Holdings. Other contributed subsidiaries of Holdings, such as Amrock Title Insurance Co., LMB Mortgage Services and others, are treated as C Corporations and will separately file and pay taxes apart from Holdings in various jurisdictions including U.S. federal, state, local and Canada. As part of the IPO, Rocket Companies acquired a portion of the units of Holdings, which is treated as a partnership for U.S. federal tax purposes and in most applicable jurisdictions for state and local income tax purposes. The remaining portion of Holdings is owned by RHI and our Chairman ("LLC Members"). As a partnership, Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Holdings after Rocket Companies acquisition of its portion of Holdings is passed through and included in the taxable income or loss of its members, including Rocket Companies, in accordance with the terms of the Holdings Operating Agreement. Rocket Companies is a C Corporation and is subject to U.S. federal, state, and local income taxes with respect to its allocable share of any taxable income of Holdings. Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities. The Company’s deferred tax assets (liabilities) arise from the following components of temporary differences and carryforwards: December 31, 2021 2020 Investment in partnership $ 588,759 $ 531,020 Mortgage Servicing Rights (11,055) (4,346) Interest Rate Lock Commitments (IRLCs) (1,121) (2,590) Intangible assets (30,445) (847) Net operating loss and credit carryforwards 33,670 10,805 Accruals and other, net 2,522 (6) Valuation allowance (38,663) (24,452) Net deferred tax assets (liabilities) $ 543,667 $ 509,584 The deferred tax balance in the Consolidated Balance Sheets consists of the following: December 31, 2021 2020 Deferred tax asset, net of valuation allowance $ 572,049 $ 519,933 Deferred tax liability (included in Other liabilities) (28,382) (10,349) Net deferred tax asset $ 543,667 $ 509,584 As of December 31, 2021, the Company has a deferred tax asset before any valuation allowance of $610,712 and a deferred tax liability of $28,382. As of December 31, 2020, the Company had a deferred tax asset before any valuation allowance of $544,385 and a deferred tax liability of $10,349. The Company's deferred tax asset relates primarily to the difference in the tax and book basis of Rocket Companies’ investment in Holdings. 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. After considering all those factors, as of December 31, 2021 and 2020, respectively, management has recorded $38,663 and $24,452 of a valuation allowance for certain deferred tax assets the Company has determined are not more likely than not to be realized. Changes in the deferred tax asset, net for the investment in partnership recorded against Additional Paid-in Capital that occurred during the year ended December 31, 2021 are included within Change in controlling interest of investment, net in the Consolidated Statements of Changes in Equity. The initial deferred tax asset, net for the investment in partnership was recorded against Additional Paid-in Capital and included within Effect of reorganization transactions in the Consolidated Statements of Changes in Equity for the year ended December 31, 2020. Of the $33,670 deferred tax assets related to the net operating loss and credit carryforwards at December 31, 2021, $17,382 will expire between 2031 and 2041 and $16,288 has no expiration. 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 December 31, 2021 and 2020, 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 and no accrued interest or penalty was recorded on the Consolidated Balance Sheets as of December 31, 2021 and 2020. Tax positions taken in tax years that remain open under the statute of limitations will be subject to examinations by tax authorities. With few exceptions, the Company is no longer subject to state or local examinations by tax authorities for tax years ended December 31, 2015 or prior. Tax Receivable Agreement The Company expects to obtain an increase in its share of the tax basis in the net assets of Holdings when Holdings Units are redeemed from or exchanged by the LLC Members. The Company intends to treat any redemptions and exchanges of Holdings Units as direct purchases of Holdings Units for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that the Company would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. As indicated in Note 1, Business, Basis of Presentation and Accounting Policies, in connection with the reorganization, the Company entered into a Tax Receivable Agreement with RHI and our Chairman that will obligate the Company to make payments to RHI and our Chairman generally equal to 90% of the applicable cash savings that the Company actually realizes as a result of the tax attributes generated by (i) certain increases in our allocable share of the tax basis in Holdings’ assets resulting from (a) the purchases of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) from RHI and our Chairman (or their transferees of Holdings Units or other assignees) using the net proceeds from our initial public offering or in any future offering, (b) exchanges by RHI and our Chairman (or their transferees of Holdings Units or other assignees) of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) for cash or shares of our Class B common stock or Class A common stock, as applicable, or (c) payments under the Tax Receivable Agreement; (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the Tax Receivable Agreement and (iii) disproportionate allocations (if any) of tax benefits to Holdings as a result of section 704(c) of the Code that relate to the reorganization transactions. The Company will retain the benefit of the remaining 10% of these tax savings. On March 31, 2021, the Company exchanged 20,200,000 shares of Class A common stock for the equivalent number of shares of Class D common stock and Holdings Units with RHI, which resulted in an increase in the tax basis of assets of Holdings that is subject to the provisions of the Tax Receivable Agreement. The Company recorded an increase in its deferred tax asset on investment in partnership of $123,587, an increase in the valuation allowance of $3,146, and an increase in the Tax receivable agreement liability of $119,456 with the net offsetting amount of $985 recorded to Additional Paid-in Capital in the Change in controlling interest of investment, net in the Consolidated Statements of Changes in Equity. Concurrent with the IPO during the year ended December 31, 2020, the Company acquired an aggregate of 115,000,000 Holdings Units valued at $2,070,000 in connection with the exchange of those Holdings Units by the LLC Members, which resulted in an increase in the tax basis of the assets of Holdings and would be subject to the provisions of the Tax Receivable Agreement. The Company anticipates funding payments under the Tax Receivable Agreement from cash flows from operations, available cash and available borrowings. As of December 31, 2021 and 2020, respectively, the Company recognized a liability of $688,573 and $550,282 under the Tax Receivable Agreement after concluding that is the estimate of such TRA payments that would be paid based on its estimates of future taxable income. No payments were made to the LLC Members pursuant to the Tax Receivable Agreement during the year ended December 31, 2021 or 2020. The amounts payable under the Tax Receivable Agreement will vary depending upon a number of factors, including the amount, character, and timing of the taxable income of Rocket Companies in the future. Any such changes in these factors or changes in the Company’s determination of the need for a valuation allowance related to the tax benefits acquired under the Tax Receivable Agreement could adjust the Tax receivable agreement liability recognized and recorded within earnings in future periods. In addition, the Tax Receivable Agreement provides that upon certain changes of control of the Company or a material breach of our obligations under the Tax Receivable Agreement, the Company is required to make a payment to RHI and our Chairman in an amount equal to the present value of future payments (calculated using a discount rate equal to the lesser of 6.50% or LIBOR plus 100 basis points, or the applicable successor benchmark should LIBOR be discontinued, which may differ from our, or a potential acquirer’s, then-current cost of capital) under the Tax Receivable Agreement, which payment would be based on certain assumptions (described in assumptions (i) through (v) in the following paragraph), including those relating to our future taxable income. In these situations, our obligations under the Tax Receivable Agreement could have a substantial negative impact on our, or a potential acquirer’s, liquidity and could have the effect of delaying, deferring, modifying or preventing certain mergers, asset sales, other forms of business combinations or other changes of control. These provisions of the Tax Receivable Agreement may result in situations where RHI and our Chairman have interests that differ from or are in addition to those of our other stockholders. In addition, the Company could be required to make payments under the Tax Receivable Agreement that are substantial, significantly in advance of any potential actual realization of such further tax benefits, and in excess of our, or a potential acquirer’s, actual cash savings in income tax. Furthermore, Rocket Companies may elect to terminate the Tax Receivable Agreement early by making an immediate payment equal to the present value of the anticipated future cash tax savings (calculated using a discount rate equal to the lesser of 6.50% or LIBOR plus 100 basis points, or the applicable successor benchmark should LIBOR be discontinued.) In determining such anticipated future cash tax savings, the Tax Receivable Agreement includes several assumptions, including that (i) any Holdings Units that have not been exchanged are deemed exchanged for the market value of the shares of Class A common stock at the time of termination, (ii) Rocket Companies will have sufficient taxable income in each future taxable year to fully realize all potential tax savings, (iii) Rocket Companies will have sufficient taxable income to fully utilize any remaining net operating losses subject to the Tax Receivable Agreement in the taxable year of the election or future taxable years, (iv) the tax rates for future years will be those specified in the law as in effect at the time of termination and (v) certain non-amortizable assets are deemed disposed of within specified time periods. As a result of the change in control provisions and the early termination right, Rocket Companies could be required to make payments under the Tax Receivable Agreement that are greater than or less than the specified percentage of the actual cash tax savings that Rocket Companies realizes in respect of the tax attributes subject to the Tax Receivable Agreement (although any such overpayment would be taken into account in calculating future payments, if any, under the Tax Receivable Agreement) or that are prior to the actual realization, if any, of such future tax benefits. Also, the obligations of Rocket Companies would be automatically accelerated and be immediately due and payable in the event that Rocket Companies breaches any of its material obligations under the agreement and in certain events of bankruptcy or liquidation. In these situations, our obligations under the Tax Receivable Agreement could have a substantial negative impact on our liquidity. Tax Distributions The holders of Holdings’ Units, including Rocket Companies Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Holdings. The Holdings Operating Agreement provides for pro rata cash distributions (“tax distributions”) to the holders of the Holdings Units in an amount generally calculated to provide each holder of Holdings Units with sufficient cash to cover its tax liability in respect of the Holdings Units. In general, these tax distributions are computed based on Holdings’ estimated taxable income, multiplied by an assumed tax rate as set forth in the Holdings Operating Agreement. For the year ended December 31, 2021, Holdings paid tax distributions totaling $1,803,494 to holders of Holdings Units other than Rocket Companies. For the year ended December 31, 2020, Holdings paid tax distributions totaling $1,375,181 to holders of Holdings Units other than Rocket Companies. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses forward commitments in hedging the interest rate risk exposure on its fixed and adjustable rate commitments. Utilization of forward commitments involves some degree of basis risk. Basis risk is defined as the risk that the hedged instrument’s price does not move in parallel with the increase or decrease in the market price of the hedged financial instrument. The Company calculates an expected hedge ratio to mitigate a portion of this risk. The Company’s derivative instruments are not designated as accounting hedging instruments, and therefore, changes in fair value are recorded in current period earnings. Hedging gains and losses are included in Gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income. Net hedging gains and losses were as follows: Year ended December 31, 2021 (1) 2020 (1) 2019 Hedging gains (losses) $ 1,217,010 $ (2,832,741) $ (554,995) (1) Includes the change in fair value related to derivatives economically hedging MSRs identified for sale. Refer to Note 2, Fair Value Measurements, for additional information on the fair value of derivative financial instruments. Notional and Fair Value The notional and fair values of derivative financial instruments not designated as hedging instruments were as follows: Notional Value Derivative Asset Derivative Liability Balance at December 31, 2021 IRLCs, net of loan funding probability (1) $ 21,194,326 $ 538,861 $ — Forward commitments (2) $ 36,476,871 $ 17,337 $ 19,911 Balance at December 31, 2020 IRLCs, net of loan funding probability (1) $ 40,560,544 $ 1,897,194 $ — Forward commitments (2) $ 59,041,900 $ 20,584 $ 506,071 (1) IRLCs are also discussed in Note 13, Commitments, Contingencies, and Guarantees. (2) Includes the fair value and net notional value related to derivatives economically hedging MSRs identified for sale. Counterparty agreements for forward commitments contain master netting agreements. The table below presents the gross amounts of recognized assets and liabilities subject to master netting agreements. The Company had $137 and $247,604 of cash pledged to counterparties related to these forward commitments at December 31, 2021 and 2020, respectively, classified in Other assets in the Consolidated Balance Sheets. As of December 31, 2021 and 2020, there was $22,826 and zero, respectively, cash on our Consolidated Balance Sheets from the respective counterparties. Margins received by the Company are classified in Other liabilities in the Consolidated Balance Sheets. Gross Amount of Recognized Assets or Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Offsetting of Derivative Assets Balance at December 31, 2021 Forward commitments $ 50,225 $ (32,888) $ 17,337 Balance at December 31, 2020 Forward commitments $ 35,746 $ (15,162) $ 20,584 Offsetting of Derivative Liabilities Balance at December 31, 2021 Forward commitments $ (54,922) $ 35,011 $ (19,911) Balance at December 31, 2020 Forward commitments $ (715,671) $ 209,600 $ (506,071) Counterparty Credit Risk Credit risk is defined as the possibility that a loss may occur from the failure of another party to perform in accordance with the terms of the contract, which exceeds the value of existing collateral, if any. The Company attempts to limit its credit risk by dealing with creditworthy counterparties and obtaining collateral where appropriate. The Company is exposed to credit loss in the event of contractual nonperformance by its trading counterparties and counterparties to its various over-the-counter derivative financial instruments noted in the above Notional and Fair Value discussion. The Company manages this credit risk by selecting only counterparties that it believes to be financially strong, spreading the credit risk among many such counterparties, placing contractual limits on the amount of unsecured credit extended to any single counterparty, and entering into netting agreements with the counterparties as appropriate. |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Guarantees | Commitments, Contingencies, and Guarantees Interest Rate Lock Commitments IRLCs are agreements to lend to a client as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each client’s creditworthiness on a case-by-case basis. The number of days from the date of the IRLC to expiration of fixed and variable rate lock commitments outstanding at December 31, 2021 and 2020 was approximately 43 days on average. The UPB of IRLCs was as follows: December 31, 2021 December 31, 2020 Fixed Rate Variable Rate Fixed Rate Variable Rate IRLCs $ 25,937,777 $ 1,239,762 $ 53,736,717 $ 1,065,936 Commitments to Sell Mortgage Loans In the ordinary course of business, the Company enters into contracts to sell existing mortgage loans held for sale into the secondary market at specified future dates. The amount of commitments to sell existing loans at December 31, 2021 and 2020 was $2,243,381 and $3,139,816, respectively. Commitments to Sell Loans with Servicing Released In the ordinary course of business, the Company enters into contracts to sell the MSRs of certain newly originated loans on a servicing released basis. In the event that a forward commitment is not filled and there has been an unfavorable market shift from the date of commitment to the date of settlement, the Company is contractually obligated to pay a pair-off fee on the undelivered balance. There were $333,594 and $280,502 of loans committed to be sold servicing released at December 31, 2021 and 2020, respectively. Investor Reserves The following presents the activity in the investor reserves: Year Ended December 31, 2021 2020 2019 Balance at beginning of period $ 87,191 $ 54,387 $ 56,943 (Benefit from) provision for investor reserves (8,557) 36,814 (1,872) Premium recapture and indemnification losses paid 254 (4,010) (684) Balance at end of period $ 78,888 $ 87,191 $ 54,387 The maximum exposure under the Company’s representations and warranties would be the outstanding principal balance and any premium received on all loans ever sold by the Company, less (i) loans that have already been paid in full by the mortgagee, (ii) loans that have defaulted without a breach of representations and warranties, (iii) loans that have been indemnified via settlement or make-whole, or (iv) loans that have been repurchased. Additionally, the Company may receive relief of certain representation and warranty obligations on loans sold to Fannie Mae or Freddie Mac on or after January 1, 2013 if Fannie Mae or Freddie Mac satisfactorily concludes a quality control loan file review or if the borrower meets certain acceptable payment history requirements within 12 or 36 months after the loan is sold to Fannie Mae or Freddie Mac. Property Taxes, Insurance, and Principal and Interest Payable As a service to its clients, the Company administers escrow deposits representing undisbursed amounts received for payment of property taxes, insurance and principal, and interest on mortgage loans held for sale. Cash held by the Company for property taxes and insurance was $3,682,366 and $3,551,400, and for principal and interest was $8,370,326 and $13,065,549 at December 31, 2021 and 2020, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the Consolidated Balance Sheets. The Company remains contingently liable for the disposition of these deposits. Guarantees As of December 31, 2021 and 2020, the Company guaranteed the debt of a related party totaling $5,216 and $15,000, consisting of three separate guarantees. As of December 31, 2021 and 2020, the Company did not record a liability on the Consolidated Balance Sheets for these guarantees because it was not probable that the Company would be required to make payments under these guarantees. Trademark License The Company has a perpetual trademark license agreement with a third-party entity. This agreement requires annual payments by the Company based upon the income from the sale of loans generated under the Quicken Loans brand. Total licensing fees incurred and paid were $625, $7,500, and $7,500 for the years ended December 31, 2021, 2020 and 2019 respectively, which is the maximum amount allowable under the contract for the periods indicated and is classified in other expenses in the Consolidated Statements of Income and Comprehensive Income. The Company has entered into an agreement with Intuit that, among other things, gives the Company full ownership of the "Quicken Loans" brand in 2022 in exchange for certain agreements, subject to the satisfaction of certain conditions. We have fulfilled our payment obligations pertaining to the licensing agreement with Intuit in 2021 and no further expenses are expected. Tax Receivable Agreement As indicated in Note 11, Income Taxes, the Company is party to a Tax Receivable Agreement. Legal Rocket Companies, through its subsidiaries, engages in, among other things, mortgage lending, title and settlement services, and other financial technology services. Rocket Companies and its subsidiaries operate in highly regulated industries and are routinely subject to various legal and administrative proceedings concerning matters that arise in the normal and ordinary course of business, including inquiries, complaints, subpoenas, audits, examinations, investigations and potential enforcement actions from regulatory agencies and state attorney generals; state and federal lawsuits and putative class actions; and other litigation. Periodically, we assess our potential liabilities and contingencies in connection with outstanding legal and administrative proceedings utilizing the latest information available. While it is not possible to predict the outcome of any of these matters, based on our assessment of the facts and circumstances, we do not believe any of these matters, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows. However, actual outcomes may differ from those expected and could have a material effect on our financial position, results of operations or cash flows in a future period. Rocket Companies and its subsidiaries accrue for losses when they are probable to occur and such losses are reasonably estimable. Legal costs are expensed as they are incurred. In 2018 an initial judgment was entered against Rocket Mortgage, formerly known as Quicken Loans Inc., and Amrock, formerly known as Title Source, Inc., for a certified class action lawsuit filed in the U.S. District Court of the Northern District of West Virginia. The lawsuit alleged that the defendants violated West Virginia state law by unconscionably inducing the plaintiffs (and a class of other West Virginians who received loans through Rocket Mortgage and appraisals through Amrock) into loans by including the borrower’s own estimated home values on appraisal order forms. The district court judge ruled in favor of the plaintiffs and, in a split decision, the U.S. Court of Appeals for the Fourth Circuit affirmed the district court’s decision to grant (i) class certification and (ii) summary judgment on the statutory damages claim. The court of appeals reversed the district court’s summary judgment ruling on a separate breach-of-contract claim and remanded that claim for further proceedings. Rocket Mortgage and Amrock filed a petition for writ of certiorari with the Supreme Court of the United States and, on January 10, 2022, the Supreme Court granted the petition, vacated the court of appeals’ judgment, and remanded the case for further consideration. Rocket Mortgage and Amrock believe the resolution of this matter is not material to the consolidated financial statements. Amrock is currently involved in civil litigation related to a business dispute between Amrock and HouseCanary, Inc. (“HouseCanary”). The lawsuit was filed on April 12, 2016, by Amrock—Title Source, Inc. v. HouseCanary, Inc., No. 2016-CI-06300 (37th Civil District Court, San Antonio, Texas)—and included claims against HouseCanary for breach of contract and fraudulent inducement stemming from a contract between Amrock and HouseCanary whereby HouseCanary was obligated to provide Amrock with appraisal and valuation software and services. HouseCanary filed counterclaims against Amrock for, among other things, breach of contract, fraud, and misappropriation of trade secrets. On March 14, 2018, following trial of the claims in the lawsuit, a Bexar County, Texas, jury awarded $706,200 in favor of HouseCanary and rejected Amrock's claims against HouseCanary. The district court entered judgment in favor of HouseCanary and against Amrock for an aggregate of $739,600 (consisting of $235,400 in actual damages; $470,800 in punitive damages; $28,900 in prejudgment interest; and $4,500 in attorney fees). On appeal (No. 04-19-00044-CV, Fourth Court of Appeals, San Antonio, Texas), the court of appeals affirmed judgment of no-cause on Amrock’s claim for breach of contract, but reversed judgment on HouseCanary’s misappropriation of trade secrets and fraud claims and remanded the case for a new trial on HouseCanary’s claims. In November 2020, HouseCanary filed a petition requesting the Supreme Court of Texas review the court of appeals’ decision. Briefing on that appeal is ongoing. The outcome of this matter remains uncertain, and the ultimate resolution of the litigation may be several years in the future. If the case is tried again, Amrock intends to present new evidence, including evidence revealed by whistleblowers who came forward with evidence that undermined HouseCanary’s claims after the conclusion of the original trial, and to vigorously defend against this case and any subsequent actions. Quicken Loans and Rocket Homes are defending themselves against a tagalong lawsuit filed by HouseCanary that also includes claims for misappropriation of trade secrets. That case is in its early stages and is stayed pending a resolution of Quicken Loans’ and Rocket Homes’ dispositive motion. On June 29, 2021 and July 13, 2021, two putative securities class action lawsuits were filed in the U.S. District Court for the Eastern District of Michigan asserting claims pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against Rocket Companies, and certain executive officers and directors. Both lawsuits challenge particular positive statements about Rocket Companies’ operations and prospects, purport to bring claims on behalf of all persons who purchased Rocket Companies Class A common stock between February 25, 2021 and May 5, 2021, and do not claim a specific amount of damages. On August 19, 2021, an alleged shareholder filed a shareholder derivative action asserting claims purportedly on behalf of Rocket Companies for breach of fiduciary duty, waste of corporate assets, and unjust enrichment against certain executive officers, the members of Rocket Companies’ Board, Rock Holdings, and, nominally, Rocket Companies in the Michigan State Circuit Court for the Third Judicial Circuit, Wayne County. On November 8, 2021, Defendants filed a motion to stay the lawsuit pending resolution of the parallel putative securities class actions. On November 23, 2021 and February 2, 2022, two alleged shareholders filed shareholder derivative actions asserting claims purportedly on behalf of Rocket Companies for breach of fiduciary duty against Rock Holdings, Daniel Gilbert, and, nominally, Rocket Companies in the Delaware Court of Chancery. The derivative lawsuits allege Rock Holdings sold Rocket Companies Class A common stock on the basis of nonpublic information and, in the Michigan lawsuit, that certain positive statements about Rocket Companies’ business operations and prospects were false. None of the derivative lawsuits claim a specific amount of damages. Due to the early stage of these proceedings and the lack of specific damages requests, Rocket Companies is unable to estimate a range of reasonably possible losses for any of these matters. In addition to the matters described above, Rocket Companies and its subsidiaries are subject to other legal proceedings arising in the ordinary course of business. The ultimate outcome of these or other actions or proceedings, including any monetary awards against the companies, is uncertain and there can be no assurance as to the amount of any such potential awards. As of December 31, 2021, we recorded reserves related to potential damages in connection with the above legal proceedings of $15,000. The ultimate outcome of these or other actions or proceedings, including any monetary awards against Rocket Companies or one or more of Rocket Companies' subsidiaries, is uncertain and there can be no assurance as to the amount of any such potential awards. Rocket Companies and its subsidiaries will incur defense costs and other expenses in connection with the lawsuits. Plus, if a judgment for money that exceeds specified thresholds is rendered against a subsidiary of Rocket Companies or against Rocket Companies and it or they fail to timely pay, discharge, bond or obtain a stay of execution of such judgment, it is possible that one or more of the companies could be deemed in default of loan funding facilities and other agreements governing indebtedness. If the final resolution of any such litigation is unfavorable in one or more of these |
Minimum Net Worth Requirements
Minimum Net Worth Requirements | 12 Months Ended |
Dec. 31, 2021 | |
Mortgage Banking [Abstract] | |
Minimum Net Worth Requirements | Minimum Net Worth Requirements Certain secondary market investors and state regulators require the Company to maintain minimum net worth and capital requirements. To the extent that these requirements are not met, secondary market investors and/or the state regulators may utilize a range of remedies including sanctions, and/or suspension or termination of selling and servicing agreements, which may prohibit the Company from originating, securitizing or servicing these specific types of mortgage loans. Rocket Mortgage is subject to the following minimum net worth, minimum capital ratio and minimum liquidity requirements established by the Federal Housing Finance Agency (“FHFA”) for Fannie Mae and Freddie Mac Seller/Servicers, and Ginnie Mae for single family issuers. Furthermore, refer to Note 6, Borrowings for additional information regarding compliance with all covenant requirements. Minimum Net Worth The minimum net worth requirement for Fannie Mae and Freddie Mac is defined as follows: • Base of $2,500 plus 25 basis points of outstanding UPB for total loans serviced. • Adjusted/Tangible Net Worth is defined as total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. The minimum net worth requirement for Ginnie Mae is defined as follows: • Base of $2,500 plus 35 basis points of the Ginnie Mae total single-family effective outstanding obligations. • Adjusted/Tangible Net Worth is defined as total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. Effective for fiscal year 2020, under the Ginnie Mae MBS Guide, the issuers will no longer be permitted to include deferred tax assets when computing the minimum net worth requirements. Minimum Capital Ratio • For Fannie Mae, Freddie Mac and Ginnie Mae, the Company is also required to hold a ratio of Adjusted/Tangible Net Worth to Total Assets greater than 6%. Minimum Liquidity The minimum liquidity requirement for Fannie Mae and Freddie Mac is defined as follows: • 3.5 basis points of total Agency servicing. • Incremental 200 basis points of total nonperforming Agency, measured as 90+ delinquencies, servicing in excess of 6% of the total Agency servicing UPB. • Allowable assets for liquidity may include cash and cash equivalents (unrestricted) and available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations). The minimum liquidity requirement for Ginnie Mae is defined as follows: • Maintain liquid assets equal to the greater of $1,000 or 10 basis points of our outstanding single-family MBS. The most restrictive of the minimum net worth and capital requirements require the Company to maintain a minimum adjusted net worth balance of $1,794,783 and $2,175,968 as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, the Company was in compliance with this requirement. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company’s Chief Executive Officer, who has been identified as its Chief Operating Decision Maker (“CODM”), has evaluated how the Company views and measures its performance. ASC 280, Segment Reporting establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in that guidance, the Company has determined that it has two reportable segments - Direct to Consumer and Partner Network. The key factors used to identify these reportable segments are the organization and alignment of the Company’s internal operations and the nature of its marketing channels, which drive client acquisition into the mortgage platform. This determination reflects how its CODM monitors performance, allocates capital and makes strategic and operational decisions. The Company’s segments are described as follows: Direct to Consumer In the Direct to Consumer segment, clients have the ability to interact with Rocket Mortgage online and/or with the Company’s mortgage bankers. The Company markets to potential clients in this segment through various brand campaigns and performance marketing channels. The Direct to Consumer segment derives revenue from originating, closing, selling and servicing predominantly agency-conforming loans, which are pooled and sold to the secondary market. The segment also includes title insurance, appraisals and settlement services complementing the Company’s end-to-end mortgage origination experience. Servicing activities are fully allocated to the Direct to Consumer segment and are viewed as an extension of the client experience. Servicing enables Rocket Mortgage to establish and maintain long term relationships with our clients, through multiple touchpoints at regular engagement intervals. Revenues in the Direct to Consumer segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues from sales of loans into the secondary market, as well as the fair value of originated MSRs and hedging gains and losses. Loan servicing income (loss), net consists of the contractual fees earned for servicing loans and other ancillary servicing fees, as well as changes in the fair value of MSRs due to changes in valuation assumptions and realization of cash flows. Partner Network The Rocket Professional platform supports our Partner Network segment, where we leverage our superior client service and widely recognized brand to grow marketing and influencer relationships, and our mortgage broker partnerships through Rocket Pro TPO. Our marketing partnerships consist of well-known consumer-focused companies that find value in our award-winning client experience and want to offer their clients mortgage solutions with our trusted, widely recognized brand. These organizations connect their clients directly to us through marketing channels and a referral process. Our influencer partnerships are typically with companies that employ licensed mortgage professionals that find value in our client experience, technology and efficient mortgage process, where mortgages may not be their primary offering. We also enable clients to start the mortgage process through the Rocket platform in the way that works best for them, including through a local mortgage broker. Revenues in the Partner Network segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues from sales of loans into the secondary market, as well as the fair value of originated MSRs and hedging gains and losses. Other Information About Our Segments The Company measures the performance of the segments primarily on a contribution margin basis. The accounting policies applied by our segments are the same as those described in Note 1, Business, Basis of Presentation and Accounting Policies and the decrease in MSRs due to valuation assumptions is consistent with the changes described in Note 3, Mortgage Servicing Rights . Directly attributable expenses include salaries, commissions and team member benefits, general and administrative expenses and other expenses, such as servicing costs and origination costs. The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting. The Company also reports an “all other” category that includes operations from Rocket Homes, Rock Connections, Rocket Auto, Core Digital Media, Rocket Loans, and includes professional service fee revenues from related parties. These operations are neither significant individually nor in aggregate and therefore do not constitute a reportable segment. The Company has yet to allocate Truebill to a reporting unit. Key operating data for our business segments for the years ended: Year Ended December 31, 2021 Direct to Consumer Partner Network Segments Total All Other Total Revenues Gain on sale $ 8,843,040 $ 1,597,569 $ 10,440,609 $ 27,965 $ 10,468,574 Interest income 265,438 161,256 426,694 3,392 430,086 Interest expense on funding facilities (161,867) (99,226) (261,093) (53) (261,146) Servicing fee income 1,323,171 — 1,323,171 2,767 1,325,938 Changes in fair value of MSRs (689,432) — (689,432) — (689,432) Other income 1,001,060 105,976 1,107,036 533,410 1,640,446 Total U.S. GAAP Revenue, net $ 10,581,410 $ 1,765,575 $ 12,346,985 $ 567,481 $ 12,914,466 Less: Increase in MSRs due to valuation assumptions (487,473) — (487,473) — (487,473) Adjusted revenue $ 10,093,937 $ 1,765,575 $ 11,859,512 $ 567,481 $ 12,426,993 Directly attributable expenses 3,697,774 686,296 4,384,070 274,546 4,658,616 Contribution margin $ 6,396,163 $ 1,079,279 $ 7,475,442 $ 292,935 $ 7,768,377 Year Ended December 31, 2020 Direct to Consumer Partner Network Segments Total All Other Total Revenues Gain on sale $ 12,076,569 $ 2,986,418 $ 15,062,987 $ 7,716 $ 15,070,703 Interest income 215,171 111,876 327,047 2,546 329,593 Interest expense on funding facilities (161,478) (83,628) (245,106) (417) (245,523) Servicing fee income 1,070,463 — 1,070,463 3,792 1,074,255 Changes in fair value of MSRs (2,379,355) — (2,379,355) — (2,379,355) Other income 900,520 165,699 1,066,219 734,175 1,800,394 Total U.S. GAAP Revenue, net $ 11,721,890 $ 3,180,365 $ 14,902,255 $ 747,812 $ 15,650,067 Plus: Decrease in MSRs due to valuation assumptions 1,288,156 — 1,288,156 — 1,288,156 Adjusted revenue $ 13,010,046 $ 3,180,365 $ 16,190,411 $ 747,812 $ 16,938,223 Directly attributable expenses 3,637,525 537,543 4,175,068 412,351 4,587,419 Contribution margin $ 9,372,521 $ 2,642,822 $ 12,015,343 $ 335,461 $ 12,350,804 Year Ended December 31, 2019 Direct to Consumer Partner Network Segments Total All Other Total Revenues Gain on sale $ 4,318,930 $ 538,421 $ 4,857,351 $ 53,956 $ 4,911,307 Interest income 170,249 76,829 247,078 3,672 250,750 Interest expense on funding facilities (91,650) (41,359) (133,009) (1,907) (134,916) Servicing fee income 946,557 — 946,557 3,664 950,221 Changes in fair value of MSRs (1,644,849) — (1,644,849) — (1,644,849) Other income 443,290 22,423 465,713 270,876 736,589 Total U.S. GAAP Revenue, net $ 4,142,527 $ 596,314 $ 4,738,841 $ 330,261 $ 5,069,102 Plus: Decrease in MSRs due to valuation assumptions 838,119 — 838,119 — 838,119 Adjusted revenue $ 4,980,646 $ 596,314 $ 5,576,960 $ 330,261 $ 5,907,221 Directly attributable expenses 2,523,429 245,282 2,768,711 203,385 2,972,096 Contribution margin $ 2,457,217 $ 351,032 $ 2,808,249 $ 126,876 $ 2,935,125 The following table represents a reconciliation of segment contribution margin to consolidated U.S. GAAP income before taxes for the years ended: Year Ended December 31, 2021 2020 2019 Contribution margin, excluding change in MSRs due to valuation assumptions $ 7,768,377 $ 12,350,804 $ 2,935,125 Increase (decrease) in MSRs due to valuation assumptions 487,473 (1,288,156) (838,119) Contribution margin, including change in MSRs due to valuation assumptions $ 8,255,850 $ 11,062,648 $ 2,097,006 Less expenses not allocated to segments : Salaries, commissions and team member benefits 936,255 815,940 601,174 General and administrative expenses 801,696 443,085 361,297 Depreciation and amortization 74,713 74,316 74,952 Interest and amortization expense on non-funding debt 230,740 186,301 136,853 Other expenses 27,545 11,349 18,290 Income before income taxes $ 6,184,901 $ 9,531,657 $ 904,440 |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Non-controlling Interests The non-controlling interest balance represents the economic interest in Holdings held by our Chairman and RHI. The following table summarizes the ownership of Holdings Units in Holdings as of: December 31, 2021 December 31, 2020 Holdings Ownership Holdings Ownership Rocket Companies, Inc.'s ownership of Holdings Units 126,437,703 6.40 % 115,372,565 5.81 % Holdings Units held by our Chairman 1,101,822 0.06 % 1,101,822 0.06 % Holdings Units held by RHI 1,847,777,661 93.54 % 1,867,977,661 94.13 % Balance at end of period 1,975,317,186 100.00 % 1,984,452,048 100.00 % The non-controlling interest holders have the right to exchange Holdings Units, together with a corresponding number of shares of our Class D common stock or Class C common stock (together referred to as “Paired Interests”), for, at our option, (i) shares of our 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 our Class A common stock). As such, future exchanges of Paired 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 when Holdings has positive or negative net assets, respectively. As of December 31, 2020, neither our Chairman or RHI had exchanged any Paired Interests. On March 31, 2021, the Company exchanged 20,200,000 shares of Class A common stock for the equivalent number of shares of Class D common stock and Holdings Units with RHI. This transaction resulted in an increase of Rocket Companies' controlling interest and a corresponding decrease of non-controlling interest of approximately 1.0%. As of December 31, 2021 and 2020, Rocket Companies repurchased 14,442,195 and zero shares, respectively of Class A common stock under the Share Repurchase Program authorized in November 2020. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation The Company grants various types of share-based awards, both equity and cash awards, to various team members and directors of the Company and its affiliates. Included in share-based compensation expense for the Company are RKT and RHI denominated awards. Share-based compensation expense is included in Salaries, commissions and team member benefits on the Consolidated Statements of Income and Comprehensive Income . In connection with the IPO, equity-based awards were issued under the Rocket Companies, Inc. 2020 Omnibus Incentive Plan including restricted stock units ("RSUs") and stock options to purchase shares of our Class A common stock at an exercise price equal to the price to the public in the initial public offering. Share-based compensation expense is recognized on a straight-line basis over the requisite service period based on the fair value of the award on the date of grant, with forfeitures recognized as they occur. RKT Awards Stock Options The Company grants Stock Options to certain team members that generally vest and become exercisable over a three year period, with 33.33% vesting on the first anniversary of the grant date, and the remaining 66.67% vesting ratably on a monthly basis over the 24 month period following the first anniversary of the grant date, subject to the grantee's employment or service with the Company through each applicable vesting date. The Stock Options will be exercisable, subject to vesting, for a period of 10 years after the grant date. The Stock Options activity for the period from July 1, 2020 to December 31, 2021 was as follows: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding on July 1, 2020 — — — — Granted 26,393,381 $ 18.01 9.6 Years $ 59,246 Exercised — — — — Expired — — — — Forfeited 411,952 $ 18.00 — $ 1,661 Outstanding as of December 31, 2020 25,981,429 $ 18.01 9.6 Years $ 57,585 Granted 49,020 16.98 — — Exercised 10,466 18.00 — 9 Expired 144,257 18.00 — — Forfeited 1,375,310 18.00 — 2,942 Outstanding as of December 31, 2021 24,500,416 $ 18.01 8.6 Years $ 54,634 The Company had 10,995,518 and zero stock options exercisable as of December 31, 2021 and 2020, respectively. The Company estimates the fair value of the Stock Options at the date of grant using the Black-Scholes option pricing model. Weighted average inputs to the Black-Scholes option pricing model include an expected dividend yield of 1.5%, expected volatility factor of 34.0% (range of 34.0%-35.5%), risk-free interest rate of 0.29% (range of 0.29%-1.28%) and an expected term of 5.85 years, pursuant to vesting terms, resulting in a weighted average fair value of $18.01 per Stock Option. Expected dividend yield - An increase in the expected dividend yield would decrease compensation expense. Expected volatility - This is a measure of the amount by which the price of the equity instrument has fluctuated or is expected to fluctuate. The expected volatility was based on the historical volatility of a group of guideline companies. An increase in expected volatility would increase compensation expense. Risk-free interest rate - This is the U.S. Treasury rate as of the measurement date having a term approximating the expected life of the award. An increase in the risk-free interest rate would increase compensation expense. Expected term - The period of time over which the awards are expected to remain outstanding. The Company estimates the expected term as the mid-point between actual or expected vesting date and the contractual term. An increase in the expected term would increase compensation expense. Restricted Stock Units The Company granted RSUs to certain team members that generally vest on the two year anniversary of the grant date or over a three year period with 33% vesting on each of the first three anniversaries of the grant date, subject, in each case, to the grantee's employment or service with the Company through each applicable vesting date. Certain non-employee directors of the Company received RSUs that vest on the first anniversary of the grant date, subject to the grantee's continued service through the vesting date. The RSU activity for the period from July 1, 2020 to December 31, 2021 was as follows: Number of Units Weighted Average Grant Date Fair Value Weighted Outstanding on July 1, 2020 — — — Granted 16,828,361 $ 18.03 2.2 Years Vested 76,007 18.00 — Forfeited 429,974 18.00 — Outstanding as of December 31, 2020 16,322,380 $ 18.03 2.2 Years Granted 1,678,230 17.01 — Vested 3,276,242 18.02 — Forfeited 1,367,051 18.10 — Outstanding as of December 31, 2021 13,357,317 $ 17.90 1.2 Years Team Member Stock Purchase Plan The Team Member Stock Purchase Plan ("TMSPP") was initiated in December 2020, with the first offering period beginning in January 2021. Under the TMSPP, the Company is authorized to issue up to 10,526,316 shares of its common stock to qualifying team members. Eligible team members may direct the Company, during each three-month option period, to withhold up to 15% of their gross pay, the proceeds from which are used to purchase shares of common stock at a price equal to 85% of the closing market price on the exercise date. Under ASC 718, the TMSPP is a liability classified compensatory plan and the Company recognizes compensation expense over the offering period based on the fair value of the purchase discount. There were 2,778,209 shares purchased during the year ended December 31, 2021 under the TMSPP. Summary of RKT Equity-Based Compensation Expense A summary of share-based compensation expense recognized for the year ended December 31, 2021 and from July 1, 2020 to December 31, 2020 related to RKT-denominated awards is as follows: Year Ended December 31, 2021 July 1, 2020 to December 31, 2020 RKT stock options $ 40,100 $ 17,207 RKT restricted stock units 107,867 49,203 RKT Team Member Stock Purchase Plan 9,388 — RKT denominated share-based compensation expense $ 157,355 $ 66,410 Unrecognized compensation expense as of December 31, 2021, related to these Stock Options was $62,833 and is expected to be recognized over a weighted average period of 1.6 years. Unrecognized compensation expense as of December 31, 2021 related to these RSUs was $142,391 and is expected to be recognized over a weighted average period of 1.5 years. RHI Awards RHI Denominated Restricted Stock Units (“RHI RSUs”) During 2017 and 2019, RHI granted 1,076,433 and 125,000 RHI RSUs, respectively, to Company team members. Each RHI RSU, upon or after vesting, represents the right of the holder to receive one common share of RHI common stock. The RHI RSUs were accounted for under ASC 718 as equity-classified share-based compensation awards at grant date fair value. The RHI RSUs granted are only subject to service-based vesting with 20%–25% vesting immediately upon issuance and the remaining shares vesting annually over a four-year period. The related compensation expense is recognized on a straight-line basis with forfeitures recognized as they occur. Approximately 50,000, 80,000 and 472,040 unvested RHI RSUs remained outstanding as of December 31, 2021, 2020 and 2019 respectively. RHI Denominated Cash-Settled Award RHI provided for a tax-offset cash bonus for RHI RSUs granted to certain executives of the Company in 2017. This cash-settled award is accounted for under ASC 718 as a liability classified award. There were zero unvested RHI Cash-Settled Awards outstanding as of December 31, 2021. RHI Denominated Stock Options ("RHI Options") During 2016, RHI granted RHI Options to Company team members and zero unvested RHI Options remained outstanding as of December 31, 2021. Summary of RHI-Denominated Equity-Based Compensation Expense A summary of share-based compensation expense recognized for the year ended December 31, 2021, December 31, 2020, and December 31, 2019 related to RHI-denominated awards is as follows: Year ended December 31, 2021 2020 2019 RHI restricted stock units $ 5,413 $ 69,548 $ 39,029 RHI cash settled awards — 26,421 12,546 RHI stock options — 32 425 RHI denominated share-based compensation $ 5,413 $ 96,001 $ 52,000 Unrecognized compensation expense as of December 31, 2021 related to the RHI RSUs is $9,222 to be recognized through 2023. On February 14, 2020, RHI modified the vesting condition for certain RHI RSUs granted in 2017 to accelerate the remaining eight months of the fourth tranche previously due to vest on October 31, 2020. This modification resulted in accelerated expense of $29,433 for 180,020 RHI RSUs in the first quarter of 2020. On May 15, 2020, RHI modified the vesting condition for certain RHI RSUs granted in 2017 and 2019. For the 2017 grants RHI accelerated the tranche previously due to vest on October 31, 2021 and for the 2019 grants RHI accelerated the tranche previously due to vest on October 31, 2020. This modification resulted in accelerated expense of $38,371 for 198,020 RHI RSUs in the second quarter of 2020. Summary of Equity-Based and Cash-Settled Compensation Expense Including subsidiary share-based compensation plans, total share-based compensation expense for the year ended December 31, 2021, 2020, and 2019 was $163,738, $162,608, and $52,249. Subsequent Event Subsequent to December 31, 2021 and in connection with the Truebill Acquisition, refer to Note 1 Business, Basis of Presentation and Accounting Policies for additional information, the Company granted approximately 12,700,000 RSU awards under the 2020 Omnibus Incentive Plan with a grant date fair value of $13.11. These RSUs vest quarterly over a four year period with front-loaded graded vesting, subject, in each case, to the grantee's employment or service with the Company through each applicable vesting date. The Company estimates future expense for these awards will be approximately $167,100 over the four year period with approximately $53,030 to be recognized during the year ended December 31, 2022. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company applies the two-class method for calculating and presenting earnings per share by separately presenting 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 Company’s 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 dividends as may be declared by the board of directors. Holders of the Class A and Class B common stock also have equal priority in liquidation. Shares of Class C and Class D common stock do not participate in earnings of Rocket Companies, Inc. As a result, the shares of Class C and Class D common stock are not considered participating securities and are not included in the weighted-average shares outstanding for purposes of earnings per share. Restricted stock units awarded as part of the Company’s compensation program are included in the weighted-average Class A shares outstanding in the calculation of basic earnings per share ("EPS") once the units are fully vested. Basic earnings per share of Class A common stock is computed by dividing Net income attributable to Rocket Companies by the weighted-average number of shares of Class A common stock, outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing Net income attributable to Rocket Companies by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. There was no Class B common stock outstanding as of December 31, 2021. Prior to the IPO, Holdings membership structure included equity interests held by RHI. The Company analyzed the calculation of earnings per unit for periods prior to the IPO and determined that it resulted in values that would not be meaningful to the users of these consolidated financial statements. Therefore, earnings per share information has not been presented for the year ended December 31, 2019. The basic and diluted earnings per share period for the year ended December 31, 2020, represents only the period from August 6, 2020 to December 31, 2020, which represents the period wherein the Company had outstanding Class A common stock. There was no Class B common stock outstanding as of December 31, 2021 and 2020. See Note 16, Non-controlling Interests for a description of Paired Interests and their potential impact on Class A and Class B share ownership. The following table sets forth the calculation of the basic and diluted earnings per share for the periods following the reorganization and IPO for Class A common stock: Years Ended December 31, 2021 2020 Net income $ 6,072,163 $ 9,399,276 Net income attributable to non-controlling interest (5,763,953) (9,201,325) Net income attributable to Rocket Companies 308,210 197,951 Add: Reallocation of Net income attributable to vested, undelivered stock awards 150 — Net income attributable to common shareholders $ 308,360 $ 197,951 Numerator: Net income attributable to Class A common shareholders - basic $ 308,360 $ 197,951 Add: Reallocation of net income attributable to dilutive impact of pro-forma conversion of Class D shares to Class A shares (1) 4,301,126 — Add: Reallocation of net income attributable to dilutive impact of share-based compensation awards (2) 10,948 7,092 Net income attributable to Class A common shareholders - diluted $ 4,620,434 $ 205,043 Denominator: Weighted average shares of Class A common stock outstanding - basic 130,578,206 111,926,619 Add: Dilutive impact of conversion of Class D shares to Class A shares 1,853,804,962 — Add: Dilutive impact of share-based compensation awards (3) 5,050,399 4,311,874 Weighted average shares of Class A common stock outstanding - diluted 1,989,433,567 116,238,493 Earnings per share of Class A common stock outstanding - basic $ 2.36 $ 1.77 Earnings per share of Class A common stock outstanding - diluted $ 2.32 $ 1.76 (1) Net income calculated using the estimated annual effective tax rate of Rocket Companies, Inc. (2) Reallocation of net income attributable to dilutive impact of share-based compensation awards for the years ended December 31, 2021 and 2020 comprised of $10,660 and $6,683 related to restricted stock units, zero and $409 related to stock options and $288 and zero related to TMSPP. (3) Dilutive impact of share-based compensation awards for the years ended December 31, 2021 and 2020 comprised of 4,917,705 and 4,063,444 related to restricted stock units, zero and 248,430 related to stock options and 132,694 and zero related to TMSPP. For the period from August 6, 2020 to December 31, 2020, 1,872,476,780 Holdings Units, each weighted for the portion of the period for which they were outstanding, together with a corresponding number of shares of our Class D common stock, were exchangeable, at our option, for shares of our Class A common stock. After evaluating the potential dilutive effect under the if-converted method, the outstanding Holdings Units for the assumed exchange of non-controlling interests were determined to be anti-dilutive and thus were excluded from the computation of diluted earnings per share. |
Business, Basis of Presentati_2
Business, Basis of Presentation and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | Rocket Companies, Inc. (the "Company", and together with its consolidated subsidiaries, "Rocket Companies", "we", "us", "our") was incorporated in Delaware on February 26, 2020 as a wholly owned subsidiary of Rock Holdings Inc. ("RHI") for the purpose of facilitating an initial public offering ("IPO") of its Class A common stock, $0.00001 par value (the “Class A common stock”) and other related transactions in order to carry on the business of RKT Holdings, LLC ("Holdings") and its wholly owned subsidiaries. We are a Detroit-based FinTech holding company consisting of tech-driven real estate, mortgage and eCommerce businesses. We are committed to providing an industry-leading client experience powered by our platform. In addition to Rocket Mortgage, the nation’s largest mortgage lender, we have expanded into complementary industries, such as real estate services, personal lending, auto sales, solar, and personal finance where we seek to deliver innovative client solutions leveraging our Rocket platform. Our business operations are organized into the following two segments: (1) Direct to Consumer and (2) Partner Network, refer to Note 15, Segments. Rocket Companies, Inc. is a holding company. Its primary material asset is the equity interest in Holdings which, through its direct and indirect subsidiaries, conducts all of the Company's operations. Holdings is a Michigan limited liability company and wholly owns the following entities, with each entity's subsidiaries identified in parentheses: Rocket Mortgage, LLC (formerly known as Quicken Loans, LLC), Amrock Holdings, LLC (“Amrock”, "Amrock Title Insurance Company" and "Nexsys Technologies LLC"), LMB HoldCo LLC (“Core Digital Media”), RCRA Holdings LLC (“Rock Connections” and “Rocket Auto”), Rocket Homes Real Estate LLC (“Rocket Homes”), RockLoans Holdings LLC (“Rocket Loans” and "Rocket Solar"), Rock Central LLC dba Rocket Central, Truebill, Inc., EFB Holdings Inc. (“Edison Financial”), Lendesk Canada Holdings Inc., RockTech Canada Inc., and Woodward Capital Management LLC. As used herein, “Rocket Mortgage” refers to either the Rocket Mortgage brand or platform, or the Rocket Mortgage business, as the context allows. Quicken Loans, LLC, changed its name to “Rocket Mortgage, LLC”, effective as of July 31, 2021, pursuant to the filing of a Certificate of Amendment to the Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau. Initial Public Offering On August 10, 2020 we completed the IPO of our common stock pursuant to a Registration Statement on Form S-1 (File No. 333-239726), which closed on August 10, 2020. In the IPO, we sold an aggregate of 115,000,000 shares of Class A common stock, including 15,000,000 shares purchased by the underwriters on September 9, 2020. Rocket Companies, Inc. received net proceeds from the IPO of approximately $2,023,000 after deducting underwriting discounts and commissions, all of which was used to purchase 115,000,000 non-voting membership units of Holdings (the “Holdings Units”) and shares of Class D common stock from RHI. Holdings is treated as a partnership for U.S. federal income tax purposes and, as such, is itself generally not subject to U.S. federal income tax under current U.S. tax laws. Each member of Holdings will be required to take into account for U.S. federal income tax purposes its distributive share of the items of income, gain, loss and deduction of Holdings. As indicated in Note 11, Income Taxes, the Company is party to a Tax Receivable Agreement. Basis of Presentation and Consolidation Prior to the completion of the initial public offering, RHI, Holdings and its subsidiaries consummated an internal reorganization in which Rocket Companies, Inc. became the sole managing member of Holdings. Prior to the reorganization, Rocket Companies, Inc. had no operations. As the sole managing member of Holdings, the Company operates and controls all of the business affairs of Holdings, and through Holdings and its subsidiaries, conducts its business. Holdings is considered a variable interest entity (“VIE”) and we consolidate the financial results of Holdings under the guidance of ASC 810, Consolidation. A portion of our Net income is allocated to Net income attributable to non-controlling interest. For further details, refer below to Variable Interest Entities and Note 16 , Non-controlling Interests. Income from Holdings and its subsidiaries prior to the reorganization and IPO has been accounted for as a non-controlling interest in our Consolidated Statements of Income and Comprehensive Income. Accumulated net income prior to the reorganization and IPO is presented in Net Parent Investment in our Consolidated Statements of Changes in Equity as the financial statements prior to the reorganization and IPO reflect combined subsidiaries operating as part of RHI. We have accounted for the reorganization as one of entities under common control and the Net Parent Investment was allocated between Total Non-controlling Interest and Additional Paid-in Capital based on the ownership of Holdings. Our consolidated financial statements for periods prior to the reorganization and IPO reflect the combined subsidiaries that historically operated as part of RHI. We have further adjusted the prior period results for the year ended December 31, 2019 , to retrospectively reflect the acquisition of Amrock Title Insurance Company (“ATI”) which qualified as a common control transaction as discussed further below in t he Acquisition Agreement secti on. All significant intercompany transactions and accounts between the businesses comprising the Company have been eliminated in the accompanying consolidated financial statements. The Company's derivatives, IRLCs, mortgage loans held for sale, MSRs (including MSRs collateral for financing liability and MSRs financing liability), and investments are measured at fair value on a recurring basis. Additionally, other assets may be required to be measured at fair value in the consolidated financial statements on a nonrecurring basis. Examples of such measurements are mortgage loans transferred between held for investment and held for sale, certain impaired loans, and other real estate owned. For further details of the Company's transactions refer to Note 2, Fair Value Measurements. All transactions and accounts between RHI and other related parties with the Company have a history of settlement or will be settled for cash and are reflected as related party transactions. For further details of the Company’s related party transactions refer to Note 7, Transactions with Related Parties. |
Basis of Presentation | Our consolidated financial statements are audited and presented in U.S. dollars. They have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain prior period amounts have been reclassified to conform to the current period financial statement presentation.We believe the assumptions underlying the consolidated financial statements, including the assumptions regarding allocation of expenses from RHI are reasonable. Prior to the reorganization and IPO, the executive management compensation expense has been allocated based on time incurred for services provided to Holdings and its subsidiaries for 2020 and 2019. Total costs allocated to us for these services were $96,199 and $52,250 for the years ended December 31, 2020 and 2019, respectively. These amounts were included in salaries, commissions and team member benefits in our Consolidated Statements of Income and Comprehensive Income. In our opinion, these 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. |
Management Estimates | Management Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results may differ from these estimates. |
Share Repurchase Authorization | Share Repurchase AuthorizationOn November 10, 2020, our Board of Directors approved a share repurchase program of up to $1.0 billion of our Common Stock, including both Class A and Class D, which repurchases may be made, from time to time, in privately negotiated transactions or in the open market, in accordance with applicable securities laws (the “Share Repurchase Program”). The Share Repurchase Program will remain in effect for a two-year period. The Share Repurchase Program authorizes but does not obligate the Company to make any repurchases at any specific time. The timing and extent to which the Company repurchases its shares will depend upon, among other things, market conditions, share price, liquidity targets, regulatory requirements and other factors. |
Truebill Acquisition | Truebill Acquisition On December 23, 2021 (“Acquisition Date”), we completed the acquisition of Truebill, Inc. (“Truebill Acquisition”) for total cash consideration of approximately $1.2 billion. The Truebill acquisition was accounted for as a business combination under ASC 805, Business Combinations. This new line of business will add recurring monthly revenue through subscriptions. We recorded the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their fair values as of the Acquisition Date. The purchase price allocation is preliminary in nature as the Company is finalizing the valuation of the intangible assets acquired as part of the business combination. |
Revenue Recognition | Revenue Recognition Gain on sale of loans, net — includes all components related to the origination and sale of mortgage loans, including (1) net gain on sale of loans, which represents the premium we receive in excess of the loan principal amount and certain fees charged by investors upon sale of loans into the secondary market, (2) loan origination fees (credits), points and certain costs, (3) provision for or benefit from investor reserves, (4) the change in fair value of interest rate locks and loans held for sale, (5) the gain or loss on forward commitments hedging loans held for sale and interest rate lock commitments (IRLCs), and (6) the fair value of originated MSRs. An estimate of the gain on sale of loans, net is recognized at the time an IRLC is issued, net of a pull-through factor. Subsequent changes in the fair value of IRLCs and mortgage loans held for sale are recognized in current period earnings. When the mortgage loan is sold into the secondary market, any difference between the proceeds received and the current fair value of the loan is recognized in current period earnings in Gain on sale of loans, net. Included in Gain on sale of loans, net is the fair value of originated MSRs, which represents the estimated fair value of MSRs related to loans which we have sold and retained the right to service. Refer to Note 3, Mortgage Servicing Rights for information related to the gain/(loss) on changes in the fair value of MSRs. Loan servicing income (loss), net — includes income from servicing, sub-servicing and ancillary fees, and is recorded to income as earned, which is upon collection of payments from borrowers. This amount also includes the Change in fair value of MSRs, which is the adjustment for the fair value measurement of the MSR asset as of the respective balance sheet date. Interest income, net — includes interest earned on mortgage loans held for sale and mortgage loans held for investment net of the interest expense paid on our loan funding facilities. Interest income is recorded as earned and interest expense is recorded as incurred. Other income — is derived primarily from lead generation revenue, professional service fees, real estate network referral fees, contact center revenue, personal loans business, closing fees, net appraisal revenue, net title insurance fees and personal finance. The following revenue streams fall within the scope of ASC Topic 606 — Revenue from Contracts with Customers and are disaggregated hereunder: Core Digital Media lead generation revenue — The Company recognizes online consumer acquisition revenue based on successful delivery of marketing leads to a client at a fixed fee per lead. This service is satisfied at the time the lead is delivered, at which time revenue for the service is recognized. Online consumer acquisition revenue, net of intercompany eliminations, were $27,699, $24,231, and $41,895 for the years ended December 31, 2021, 2020, and 2019, respectively. Professional service fees — The Company recognizes professional service fee revenue based on the delivery of services (e.g., human resources, technology, training) over the term of a contract. Consideration for the promised services is received through a combination of a fixed fee for the period and incremental fees paid for optional services that are available at an incremental rate determined at the time such services are requested. The Company recognizes the annual fee ratably over the life of the contract, as the performance obligation is satisfied equally over the term of the contract. For the optional services, revenue is only recognized at the time the services are requested and delivered and pricing is agreed upon. Professional service fee revenues were $12,753, $10,884, and $8,320 for the years ended December 31, 2021, 2020, and 2019, respectively, and were rendered entirely to related parties. Rocket Homes real estate network referral fees — The Company recognizes real estate network referral fee revenue based on arrangements with partner agencies contingent on the closing of a transaction. As this revenue stream is variable, and is contingent on the successful transaction close, the revenue is constrained until the occurrence of the transaction. At this point, the constraint on recognizing revenue is deemed to have been lifted and revenue is recognized for the consideration expected to be received. Real estate network referral fees, net of intercompany eliminations, were $54,181, $42,777, and $39,924 for the years ended December 31, 2021, 2020, and 2019, respectively. Rock Connections and Rocket Auto contact center revenue — The Company recognizes contact center revenue for communication services including client support and sales. Consideration received mainly includes a fixed base fee and/or a variable contingent fee. The fixed base fee is recognized ratably over the period of performance, as the performance obligation is considered to be satisfied equally throughout the service period. The variable contingent fee related to car sales is constrained until the sale of the car is completed. Contact center revenues, net of intercompany eliminations, were $45,485, $27,904, and $27,055 for the years ended December 31, 2021, 2020, and 2019, respectively. Amrock closing fees — The Company recognizes closing fees for non-recurring services provided in connection with the origination of the loan. These fees are recognized at the time of loan closing for purchase transactions or at the end of a client's three-day rescission period for refinance transactions, which represents the point in time the loan closing services performance obligation is satisfied. The consideration received for closing services is a fixed fee per loan that varies by state and loan type. Closing fees were $506,685, $457,703, and $200,920 for the years ended December 31, 2021, 2020, and 2019, respectively. Amrock appraisal revenue, net — The Company recognizes appraisal revenue when the appraisal service is completed. The Company may choose to deliver appraisal services directly to its client or subcontract such services to a third-party licensed and/or certified appraiser. In instances where the Company performs the appraisal, revenue is recognized as the gross amount of consideration received at a fixed price per appraisal. The Company is an agent in instances where a third-party appraiser is involved in the delivery of appraisal services and revenue is recognized net of third-party appraisal expenses. Appraisal revenue, net was $96,471, $78,673, and $76,200 for the years ended December 31, 2021, 2020, and 2019, respectively. |
Marketing and Advertising Costs | Marketing and Advertising Costs Marketing and advertising costs for direct and non-direct response advertising are expensed as incurred. The costs of brand marketing and advertising are expensed in the period the advertising space or airtime is used. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We maintain our bank accounts with a relatively small number of high-quality financial institutions. Restricted cash as of December 31, 2021, 2020, and 2019 consisted of cash on deposit for a repurchase facility and client application deposits, title premiums collected from the insured that are due to the underwritten, principal and interest received in collection accounts for purchased assets, and a $25,000 bond. |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale The Company has elected the fair value option for accounting for mortgage loans held for sale. |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into interest rate lock commitments ("IRLCs"), forward commitments to sell mortgage loans and forward commitments to purchase loans, which are considered derivative financial instruments. These items are accounted for as free-standing derivatives and are included in the Consolidated Balance Sheets at fair value. The Company treats all of its derivative instruments as economic hedges; therefore, none of its derivative instruments qualify for designation as accounting hedges. Changes in the fair value of the IRLCs and forward commitments to sell mortgage loans are recorded in current period earnings and are included in gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income. Forward commitments to purchase mortgage loans are recognized in current period earnings and are included in gain on sale of loans, net in the Consolidated Statements of Income and Comprehensive Income. The Company enters into IRLCs to fund residential mortgage loans with its potential borrowers. These commitments are binding agreements to lend funds to these potential borrowers at specified interest rates within specified periods of time. The fair value of IRLCs is derived from the fair value of similar mortgage loans or bonds, which is based on observable market data. Changes to the fair value of IRLCs are recognized based on changes in interest rates, changes in the probability that the commitment will be exercised, and the passage of time. The expected net future cash flows related to the associated servicing of the loan are included in the fair value measurement of rate locks. IRLCs and uncommitted mortgage loans held for sale expose the Company to the risk that the value of the mortgage loans held and mortgage loans underlying the commitments may decline due to increases in mortgage interest rates during the life of the commitments. To protect against this risk, the Company uses forward loan sale commitments to economically hedge the risk of potential changes in the value of the loans. These derivative instruments are recorded at fair value. The Company expects that the changes in fair value of these derivative financial instruments will either fully or partially offset the changes in fair value of the IRLCs and uncommitted mortgage loans held for sale. The changes in the fair value of these derivatives are recorded in gain on sale of loans, net. MSR assets (including the MSR value associated with outstanding IRLCs) that the Company plans to sell expose the Company to the risk that the value of the MSR asset may decline due to decreases in mortgage interest rates prior to the sale of these assets. To protect against this risk, the Company uses forward loan purchase commitments to economically hedge the risk of potential changes in the value of MSR assets that have been identified for sale. These derivative instruments are recorded at fair value. The Company expects that the changes in fair value of these derivative financial instruments will either fully or partially offset the changes in fair value of the MSR assets the Company intends to sell. The changes in fair value of these derivatives are recorded in the change in fair value of MSRs, net. Forward commitments include To-Be-Announced ("TBA") mortgage-backed securities that have been aggregated at the counterparty level for presentation and disclosure purposes. Counterparty agreements contain a legal right to offset amounts due to and from the same counterparty under legally enforceable master netting agreements to settle with the same counterparty, on a net basis, as well as the right to obtain cash collateral. Forward commitments also include commitments to sell loans to counterparties and to purchase loans from counterparties at determined prices. Refer to Note 12, Derivative Financial Instruments for further information. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing rights are recognized as assets on the Consolidated Balance Sheets when loans are sold, and the associated servicing rights are retained. The Company maintains one class of MSR asset and has elected the fair value option. These 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. Refer to Note 3, Mortgage Servicing Rights for further information. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation of property and equipment is generally computed on a straight-line basis over the estimated useful lives of the assets. Amortization of leasehold improvements is computed on a straight-line basis over the shorter of the estimated useful lives or the remaining lease terms. Depreciation is not recorded on projects-in-process until the project is complete and the associated assets are placed into service or are ready for the intended use. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts; any resulting gain or loss is credited or charged to operations. Costs of maintenance and repairs are charged to expense as incurred. Refer to Note 5, Property and Equipment for further information. |
Loans subject to repurchase right from Ginnie Mae | Loans subject to repurchase right from Ginnie Mae For certain loans sold to Ginnie Mae, the Company as the servicer has the unilateral right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets defined criteria, including being delinquent more than 90 days. Once the Company has the unilateral right to repurchase the delinquent loan, the Company has effectively regained control over the loan and must re-recognize the loan on the Consolidated Balance Sheets and establish a corresponding finance liability regardless of the Company's intention to repurchase the loan. The asset and corresponding liability are recorded at the unpaid principal balance of the loan, which approximates its fair value. |
Non-controlling Interests | Non-controlling interests As noted above, we are the sole managing member of Holdings and consolidate the financial results of Holdings. Therefore, we report a non-controlling interest based on the Holdings Units of Holdings held by Dan Gilbert, our founder and Chairman (our "Chairman") and RHI (the "non-controlling interest holders") on our Consolidated Balance Sheets. Income or loss is attributed to the non-controlling interests based on the weighted average Holdings Units outstanding during the period and is presented on the Consolidated Statements of Income and Comprehensive Income. Refer to Note 16, Non-controlling Interests for more information. |
Share-based Compensation | Share-based Compensation In connection with the IPO, equity-based awards were issued under the Rocket Companies, Inc. 2020 Omnibus Incentive Plan including restricted stock units and stock options to purchase shares of our Class A common stock at an exercise price equal to the price to the public in the initial public offering. Share-based compensation expense is recorded as a component of salaries, commissions and team member benefits. Share-based compensation expense is recognized on a straight-line basis over the requisite service period based on the fair value of the award on the date of grant, refer to Note 17, Share-based Compensation for additional information. |
Income Taxes | Income taxes Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes predominantly in the United States and Canada. These tax laws are often complex and may be subject to different interpretations. Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence. If based upon all available positive and negative evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if the Company determines that it is more likely than not that all or part of the deferred tax asset will become realizable. Our interpretations of tax laws are subject to review and examination by various taxing authorities and jurisdictions where the Company operates, and disputes may occur regarding its view on a tax position. These disputes over interpretations with the various tax authorities may be settled by audit, administrative appeals or adjudication in the court systems of the tax jurisdictions in which the Company operates. We regularly review whether we may be assessed additional income taxes as a result of the resolution of these matters, and the Company records additional reserves as appropriate. In addition, the Company may revise its estimate of income taxes due to changes in income tax laws, legal interpretations, and business strategies. We recognize the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We record interest and penalties related to uncertain income tax positions in income tax expense. For additional information regarding our provision for income taxes refer to Note 11, Income Taxes . Tax Receivable Agreement In connection with the reorganization, we entered into a Tax Receivable Agreement with RHI and our Chairman that will obligate us to make payments to RHI and our Chairman generally equal to 90% of the applicable cash savings that we actually realize as a result of the tax attributes generated by (i) certain increases in our allocable share of the tax basis in Holdings’ assets resulting from (a) the purchases of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) from RHI and our Chairman (or their transferees of Holdings Units or other assignees) using the net proceeds from our initial public offering or in any future offering, (b) exchanges by RHI and our Chairman (or their transferees of Holdings Units or other assignees) of Holdings Units (along with the corresponding shares of our Class D common stock or Class C common stock) for cash or shares of our Class B common stock or Class A common stock, as applicable, or (c) payments under the Tax Receivable Agreement; (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the Tax Receivable Agreement and (iii) disproportionate allocations (if any) of tax benefits to Holdings as a result of section 704(c) of the Code that relate to the reorganization transactions. We will retain the benefit of the remaining 10% of these tax savings. For additional information regarding our Tax Receivable Agreement, refer to Note 11, Income Taxes |
Goodwill | Goodwill The Company will test goodwill for impairment on an annual basis in the fourth quarter, or more frequently if an event occurs or circumstances indicate the carrying amount may be impaired. Goodwill impairment testing is performed at the reporting unit level. The impairment test involves first qualitatively assessing goodwill for impairment. If the qualitative assessment is not met, a quantitative assessment is performed by comparing the estimated fair value of each reporting unit to its carrying value. If the carrying value exceeds the fair value, an impairment charge is recorded based on that difference. For additional information regarding goodwill acquired refer to Truebill Acquisition section earlier in this footnote. |
Variable Interest Entities | Variable Interest Entities Upon completion of the reorganization and IPO, Rocket Companies, Inc. became the managing member of Holdings with 100% of the management and voting power in Holdings. In its capacity as managing member, Rocket Companies, Inc. has the sole authority to make decisions on behalf of Holdings and bind Holdings to signed agreements. Further, Holdings maintains separate capital accounts for its investors as a mechanism for tracking earnings and subsequent distribution rights. Accordingly, management concluded that Holdings is a limited partnership or similar legal entity as contemplated in ASC 810, Consolidation . Furthermore, management concluded that Rocket Companies, Inc. is Holdings’ primary beneficiary. As the primary beneficiary, Rocket Companies, Inc. consolidates the results and operations of Holdings for financial reporting purposes under the variable interest consolidation model guidance in ASC 810. Rocket Companies, Inc.'s relationship with Holdings results in no recourse to the general credit of Rocket Companies, Inc. Holdings and its consolidated subsidiaries represents Rocket Companies, Inc.'s sole investment. Rocket Companies, Inc. shares in the income and losses of Holdings in direct proportion to Rocket Companies, Inc.'s ownership percentage. Further, Rocket Companies, Inc. has no contractual requirement to provide financial support to Holdings. Rocket Companies, Inc.’s financial position, performance and cash flows effectively represent those of Holdings and its subsidiaries as of and for the period ended December 31, 2021. Prior to the reorganization and IPO, Rocket Companies, Inc. was not impacted by Holdings. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share The Company applies the two-class method for calculating and presenting earnings per share by separately presenting 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 Company’s 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. Holders of the Class A and Class B common stock also have equal priority in liquidation. Shares of Class C and Class D common stock do not participate in earnings of Rocket Companies, Inc. As a result, the shares of Class C and Class D common stock are not considered participating securities and are not included in the weighted-average shares outstanding for purposes of earnings per share. Restricted stock units awarded as part of the Company’s compensation program, described in Note 17 , Share-based Compensation are included in the weighted-average Class A shares outstanding in the calculation of basic EPS once the units are fully vested. Refer to Note 18, Earnings Per Share for more information. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope to clarify that Topic 848 is applicable to many derivative instruments and hedging relationships. Subject to meeting certain criteria, the new guidance provides optional expedients and exceptions to applying contract modification accounting under existing U.S. GAAP, to address the expected phase out of the London Inter-bank Offered Rate (“LIBOR”) by the end of 2023. This guidance is effective upon issuance and allows application to contract changes as early as January 1, 2020. For all funding and financing facilities, the Company amended the agreements to include alternative base rate language which may reference the Secured Overnight Financing Rate ("SOFR") as a successor benchmark. We have applied the optional expedients available from ASU 2020-04 and accounted for the contract modifications related to reference rate reform prospectively. There has been no impact on the consolidated financial statements from adopting this standard. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities such as deferred revenue acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Generally, ASU 2021-08 will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically such amounts were recognized by the acquirer at fair value in acquisition accounting. The amendments in this update should be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We adopted this guidance as part of the Truebill Acquisition, defined above, which resulted in the deferred revenue being recognized under ASC 606 instead of fair value at the acquisition date. There were no other impacts due to the adoption of this guidance on our consolidated financial statements. All other newly issued accounting pronouncements not yet effective have been deemed immaterial or not applicable. |
Fair Value Measurements | Fair value is the price that would be received if an asset were sold or the price that would be paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. Required disclosures include classification of fair value measurements within a three-level hierarchy (Level 1, Level 2, and Level 3). Classification of a fair value measurement within the hierarchy is dependent on the classification and significance of the inputs used to determine the fair value measurement. Observable inputs are those that are observed, implied from, or corroborated with externally available market information. Unobservable inputs represent the Company’s estimates of market participants’ assumptions. Fair value measurements are classified in the following manner: Level 1 —Valuation is based on quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Valuation 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 —Valuation is based on the Company’s internal models using assumptions at the measurement date that a market participant would use. In determining fair value measurement, the Company uses observable inputs whenever possible. The level of a fair value measurement within the hierarchy is dependent on the lowest level of input that has a significant impact on the measurement as a whole. If quoted market prices are available at the measurement date or are available for similar instruments, such prices are used in the measurements. If observable market data is not available at the measurement date, judgment is required to measure fair value. The following is a description of measurement techniques for items recorded at fair value on a recurring basis. There were no material items recorded at fair value on a nonrecurring basis as of December 31, 2021 or December 31, 2020. Mortgage loans held for sale: Loans held for sale that trade in active secondary markets are valued using Level 2 measurements derived from observable market data, including market prices of securities backed by similar mortgage loans adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk. Loans held for sale for which there is little to no observable trading activity of similar instruments are valued using Level 3 measurements based upon dealer price quotes. IRLCs: The fair value of IRLCs is based on current market prices of securities backed by similar mortgage loans (as determined above under mortgage loans held for sale), net of costs to close the loans, subject to the estimated loan funding probability, or “pull-through factor”. Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3. MSRs: The fair value of MSRs (including MSRs collateral for financing liability and MSRs financing liability) is determined using an internal 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, float earnings, contractual servicing fee income, and ancillary income among others. MSRs are classified as Level 3. Forward commitments: The Company’s forward commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable and are classified within Level 2 of the valuation hierarchy. |
Business, Basis of Presentati_3
Business, Basis of Presentation and Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We maintain our bank accounts with a relatively small number of high-quality financial institutions. Restricted cash as of December 31, 2021, 2020, and 2019 consisted of cash on deposit for a repurchase facility and client application deposits, title premiums collected from the insured that are due to the underwritten, principal and interest received in collection accounts for purchased assets, and a $25,000 bond. December 31, 2021 2020 2019 Cash and cash equivalents $ 2,131,174 $ 1,971,085 $ 1,394,571 Restricted cash 80,423 83,018 61,154 Total cash, cash equivalents, and restricted cash in the statement of cash flows $ 2,211,597 $ 2,054,103 $ 1,455,725 |
Schedule of Cash, Cash Equivalents and Restricted Cash | The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We maintain our bank accounts with a relatively small number of high-quality financial institutions. Restricted cash as of December 31, 2021, 2020, and 2019 consisted of cash on deposit for a repurchase facility and client application deposits, title premiums collected from the insured that are due to the underwritten, principal and interest received in collection accounts for purchased assets, and a $25,000 bond. December 31, 2021 2020 2019 Cash and cash equivalents $ 2,131,174 $ 1,971,085 $ 1,394,571 Restricted cash 80,423 83,018 61,154 Total cash, cash equivalents, and restricted cash in the statement of cash flows $ 2,211,597 $ 2,054,103 $ 1,455,725 |
Schedule of Preliminary Purchase Price Allocation for Business Combination | We recorded the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their fair values as of the Acquisition Date. The purchase price allocation is preliminary in nature as the Company is finalizing the valuation of the intangible assets acquired as part of the business combination. As the purchase price allocation is preliminary in nature our estimates and assumptions are subject to change within the measurement period. The preliminary purchase price allocation is as follows: Fair Value Cash $ 33,084 Accounts receivable, net 2,564 Other assets 9,068 Accounts payable and other liabilities (9,672) Deferred revenue (1) (4,454) Deferred tax liability (16,800) Net tangible assets acquired 13,790 Intangible assets 122,700 Goodwill (2) 1,130,989 Total assets acquired $ 1,267,479 (1) The deferred revenue was recorded under ASC 606 in accordance with ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers; therefore a reduction related to the estimated fair values of the acquired deferred revenues was not required. (2) Goodwill represents the excess of the purchase price over the estimated fair value of the identified net assets acquired and is attributable to broad synergies expected post-acquisition across multiple elements of the Rocket Platform. Goodwill associated with the Truebill acquisition is not deductible for tax purposes. The assignment of goodwill to reporting units has not been completed as of the date of these financial statements. |
Schedule of Fair Value of Intangible Assets Acquired | The fair value of intangible assets is as follows: Useful Lives Fair Value Trade name (1) 1 $ 1,700 Developed technology (1) 3 32,000 Customer relationships (2) 10 89,000 Total intangible assets $ 122,700 (1) Estimated by applying the relief from royalty methodology, a form of the income approach. (2) Estimated by applying the multi-period excess earnings methodology, a form of the income approach. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Statement Items Measured at Estimated Fair Value on a Recurring Basis | The table below shows a summary of financial statement items that are measured at estimated fair value on a recurring basis, including assets measured under the fair value option. There were no material transfers of assets or liabilities recorded at fair value on a recurring basis between Levels 1, 2 or 3 during the year ended December 31, 2021 or the year ended December 31, 2020. Level 1 Level 2 Level 3 Total Balance at December 31, 2021 Assets: Mortgage loans held for sale $ — $ 17,014,202 $ 2,309,366 $ 19,323,568 IRLCs — — 538,861 538,861 MSRs — — 5,385,613 5,385,613 Forward commitments — 17,337 — 17,337 Total assets $ — $ 17,031,539 $ 8,233,840 $ 25,265,379 Liabilities: Forward commitments $ — $ 19,911 $ — $ 19,911 Total liabilities $ — $ 19,911 $ — $ 19,911 Balance at December 31, 2020 Assets: Mortgage loans held for sale $ — $ 22,285,440 $ 579,666 $ 22,865,106 IRLCs — — 1,897,194 1,897,194 MSRs — — 2,862,685 2,862,685 MSRs collateral for financing liability (1) — — 205,033 205,033 Forward commitments — 20,584 — 20,584 Total assets $ — $ 22,306,024 $ 5,544,578 $ 27,850,602 Liabilities: Forward commitments $ — $ 506,071 $ — $ 506,071 MSRs financing liability (1) — — 187,794 187,794 Total liabilities $ — $ 506,071 $ 187,794 $ 693,865 (1) Refer to Note 3, Mortgage Servicing Rights for further information regarding both the MSRs collateral for financing liability and MSRs financing liability. |
Schedule of Quantitative Information About Fair Value Measurements of Level 3 Financial Instruments | The following tables present the quantitative information about recurring Level 3 fair value financial instruments and the fair value measurements as of: December 31, 2021 December 31, 2020 Unobservable Input Range Weighted Average Range Weighted Average Mortgage loans held for sale Dealer pricing 89% - 103% 99 % 89% - 105% 99 % IRLCs Loan funding probability 0% - 100% 78 % 0% - 100% 74 % MSRs (1) Discount rate 9.0% - 12.0% 9.5 % 9.5% - 12.0% 9.9 % Conditional prepayment rate 6.8% - 36.9% 8.7 % 6.6% - 52.1% 15.8 % (1) For 2020, also includes MSRs collateral for financing liability, and MSRs financing liability. |
Schedule of Reconciliation of Level 3 Assets | The table below presents a reconciliation of Level 3 assets measured at fair value on a recurring basis for the years ended December 31, 2021 and 2020. Mortgage servicing rights (including MSRs collateral for financing liability and MSRs financing liability) are also classified as a Level 3 asset measured at fair value on a recurring basis and its reconciliation is found in Note 3, Mortgage Servicing Rights. Loans Held for Sale IRLCs Balance at December 31, 2020 $ 579,666 $ 1,897,194 Transfers in (1) 3,524,260 — Transfers out/principal reductions (1) (1,788,552) — Net transfers and revaluation losses — (1,358,333) Total losses included in net income (6,008) — Balance at December 31, 2021 $ 2,309,366 $ 538,861 Balance at December 31, 2019 $ 308,793 $ 508,135 Transfers in (1) 1,215,121 — Transfers out/principal reductions (1) (944,446) — Net transfers and revaluation gains — 1,389,059 Total gains included in net income 198 — Balance at December 31, 2020 $ 579,666 $ 1,897,194 (1) Transfers in represent loans repurchased from investors or loans originated for which an active market currently does not exist. Transfers out primarily represent loans sold to third parties and loans paid in full. |
Schedule of Fair Value Option for Mortgage Loans Held For Sale | The following is the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans held for sale that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for mortgage loans held for sale as the Company believes fair value best reflects their expected future economic performance: Fair Value Principal Amount Due Upon Maturity Difference (1) Balance at December 31, 2021 $ 19,323,568 $ 19,018,552 $ 305,016 Balance at December 31, 2020 $ 22,865,106 $ 21,834,817 $ 1,030,289 (1) Represents the amount of gains included in Gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option. |
Schedule of Liabilities not Recorded at Fair Value on a Recurring or Nonrecurring Basis | The following table presents the carrying amounts and estimated fair value of financial liabilities that are not recorded at fair value on a recurring or nonrecurring basis. This table excludes cash and cash equivalents, restricted cash, warehouse borrowings, and line of credit borrowing facilities as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value: December 31, 2021 December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes, due 10/15/2026 $ 1,139,146 $ 1,151,932 $ — $ — Senior Notes, due 1/15/2028 61,197 64,251 994,986 1,079,629 Senior Notes, due 3/1/2029 742,812 752,805 741,946 766,365 Senior Notes, due 3/1/2031 1,237,605 1,273,675 1,236,114 1,298,175 Senior Notes, due 10/15/2033 841,731 857,718 — — Total Senior Notes, net $ 4,022,491 $ 4,100,381 $ 2,973,046 $ 3,144,169 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Summary of Changes to MSR Assets | The following table summarizes changes to the MSR assets for the year ended: Year Ended December 31, 2021 2020 Fair value, beginning of period $ 2,862,685 $ 2,874,972 MSRs originated 3,864,359 3,124,659 MSRs sales (936,257) (770,809) MSRs purchases 200,591 — Changes in fair value: Due to changes in valuation model inputs or assumptions (1) 589,852 (1,274,937) Due to collection/realization of cash flows (1,195,617) (1,091,200) Total changes in fair value (605,765) (2,366,137) Fair value, end of period $ 5,385,613 $ 2,862,685 (1) Reflects changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates. Does not include the change in fair value of derivatives that economically hedge MSRs identified for sale or the effects of contractual prepayment protection resulting from sales of MSRs. |
Schedule of Assumptions Used to Determine Fair Value of MSRs | The following is a summary of the weighted average discount rate and prepayment speed assumptions used to determine the fair value of MSRs as well as the expected life of the loans in the servicing portfolio: December 31, 2021 December 31, 2020 Discount rate 9.5 % 9.9 % Prepayment speeds 8.7 % 15.8 % Life (in years) 7.25 5.05 |
Summary of Discount Rate and Prepayment Speeds at Two Different Data Points | The following table stresses the discount rate and prepayment speeds at two different data points: Discount Rate Prepayment Speeds 100 BPS Adverse Change 200 BPS Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2021 Mortgage servicing rights $ (232,658) $ (435,181) $ (198,153) $ (372,018) December 31, 2020 Mortgage servicing rights $ (115,130) $ (212,119) $ (147,420) $ (279,691) |
Mortgage Loans Held for Sale (T
Mortgage Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Reconciliation of Changes in Mortgage Loans Held for Sale | A reconciliation of the changes in mortgage loans held for sale to the amounts presented on the Consolidated Statements of Cash Flows is below: Year Ended December 31, 2021 2020 Balance at the beginning of period $ 22,865,106 $ 13,275,735 Disbursements of mortgage loans held for sale 352,968,791 316,702,083 Proceeds from sales of mortgage loans held for sale (1) (363,970,300) (318,218,159) Gain on sale of mortgage loans excluding fair value of other financial instruments, net (2) 7,459,971 11,105,447 Balance at the end of period $ 19,323,568 $ 22,865,106 (1) The proceeds from sales of loans held for sale on the Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans. (2) The Gain on sale of loans excluding fair value of MSRs, net on the Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans, interest rate lock commitments, forward commitments, and provisions for investor reserves. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: December 31, 2021 2020 Office furniture, equipment, and technology $ 419,583 $ 380,826 Leasehold improvements 229,335 148,320 Internally-developed software 116,473 100,393 Projects-in-process 56,391 79,434 Total cost $ 821,782 $ 708,973 Accumulated depreciation and amortization (567,406) (497,812) Total property and equipment, net $ 254,376 $ 211,161 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Funding Facilities | Funding Facilities Facility Type Collateral Maturity Line Amount Committed Line Amount Outstanding Balance as of December 31, 2021 Outstanding Balance as of December 31, 2020 MRA funding: 1) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 10/20/2023 $ 2,000,000 $ 100,000 $ 249,119 $ 999,752 2) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 12/1/2022 1,500,000 500,000 1,328,727 1,320,484 3) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 4/21/2023 2,750,000 1,000,000 1,714,806 2,407,156 4) Master Repurchase Agreement (1)(5) Mortgage loans held for sale (4) 10/26/2022 1,700,000 1,400,000 1,479,128 1,953,949 5) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 4/20/2023 3,000,000 500,000 2,264,954 2,004,707 6) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 9/22/2023 2,000,000 500,000 498,335 1,780,902 7) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 9/15/2023 1,200,000 500,000 542,846 1,343,130 8) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 6/10/2022 500,000 — — 219,786 9) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 9/22/2023 1,500,000 500,000 539,257 983,126 10) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 8/16/2023 750,000 100,000 616,165 480,544 11) Master Repurchase Agreement (5) Mortgage loans held for sale (4) 12/16/2022 1,000,000 250,000 253,389 765,432 17,900,000 5,350,000 9,486,726 14,258,968 Early Funding: 12) Early Funding Facility (2)(5) Mortgage loans held for sale (4) (2) 4,000,000 — 2,071,154 2,514,193 13) Early Funding Facility (3)(5) Mortgage loans held for sale (4) (3) 3,000,000 — 1,193,712 969,412 7,000,000 — 3,264,866 3,483,605 Total $ 24,900,000 $ 5,350,000 $ 12,751,592 $ 17,742,573 (1) This facility has a 12-month initial term, which can be extended for 3-months at each subsequent 3-month anniversary from the initial start date. Subsequent to December 31, 2021, this facility was amended to decrease the total facility size to $1,500,000 with $1,200,000 committed and was extended to January 26, 2023. (2) This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice. (3) This facility will have an overall line size of $3,000,000, which will be reviewed every 90 days. This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice. (4) The Company has multiple borrowing facilities in the form of asset sales under agreements to repurchase. These borrowing facilities are secured by mortgage loans held for sale at fair value as the first priority security interest. |
Schedule of Other Financing Facilities | Other Financing Facilities Facility Type Collateral Maturity Line Amount Committed Line Amount Outstanding Balance as of December 31, 2021 Outstanding Balance as of December 31, 2020 Line of Credit Financing Facilities 1) Unsecured line of credit (1) — 7/27/2025 $ 2,000,000 $ — $ — $ — 2) Unsecured line of credit (1) — 7/31/2025 100,000 — — — 3) Revolving credit facility (3) — 8/10/2024 1,000,000 1,000,000 — 300,000 4) MSR line of credit (3) MSRs 10/20/2023 200,000 — — — 5) MSR line of credit (2)(3) MSRs (2) 200,000 200,000 75,000 75,000 $ 3,500,000 $ 1,200,000 $ 75,000 $ 375,000 Early Buyout Financing Facility 6) Early buy out facility (3) Loans/ Advances 3/13/2023 $ 2,600,000 $ — $ 1,896,784 $ 330,266 (1) Refer to Note 7, Transactions with Related Parties for additional details regarding this unsecured line of credit (2) This MSR facility can be drawn upon for corporate purposes and is collateralized by GSE MSRs within our servicing portfolio. This facility has a 5-year total commitment comprised of a 3-year revolving period that expires on April 30, 2022 followed by a 2-year amortization period that expires on April 30, 2024. (3) The interest rates charged by lenders on the other funding facilities included the applicable base rate, plus a spread ranging from 1.45% to 4.00% for the year ended December 31, 2021, and the applicable base rate plus a spread ranging from 1.75% to 4.00% for the year ended December 31, 2020. |
Schedule of Unsecured Senior Notes | Unsecured Senior Notes Facility Type Maturity Interest Rate Outstanding Balance as of December 31, 2021 Outstanding Balance as of December 31, 2020 Unsecured Senior Notes(1) 10/15/2026 2.875 % $ 1,150,000 $ — Unsecured Senior Notes(2) 1/15/2028 5.250 % 61,985 1,010,000 Unsecured Senior Notes(3) 3/1/2029 3.625 % 750,000 750,000 Unsecured Senior Notes(4) 3/1/2031 3.875 % 1,250,000 1,250,000 Unsecured Senior Notes(5) 10/15/2033 4.000 % 850,000 — Total Senior Notes $ 4,061,985 $ 3,010,000 Weighted Average Interest Rate 3.59 % 4.27 % (1) The 2026 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $1,150,000 carrying amount on the Consolidated Balance Sheets by $10,854, as of December 31, 2021. Prior to October 15, 2023 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after October 15, 2023, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to April 15, 2023, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 102.875% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter. Year Percentage 2023 101.438 % 2024 100.719 % 2025 and thereafter 100.000 % (2) The 2028 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. During the fourth quarter of 2021, we purchased $948,015 of the outstanding principal amount of the 2028 Senior Notes in a Tender Offer and Consent Solicitation. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $61,985 carrying amount on the Consolidated Balance Sheets by $430 and $358 as of December 31, 2021, respectively and reducing the $1,010,000 carrying amount on the Consolidated Balance Sheets by $8,197 and $6,817, as of December 31, 2020, respectively. At any time and from time to time on or after January 15, 2023, the Company may redeem the notes at its option, in whole or in part, upon not less than 30 nor more than 60 days' notice, at the redemption prices equal to the percentage of principal amount set forth below plus accrued and unpaid interest, if any, to but excluding the redemption date, in cash, if redeemed during the twelve-month period beginning on January 15 in the years indicated below: Year Percentage 2023 102.625 % 2024 101.750 % 2025 100.875 % 2026 and thereafter 100.000 % (3) The 2029 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $750,000 carrying amount on the Consolidated Balance Sheets by $7,188 and $8,053, as of December 31, 2021 and 2020, respectively. Prior to March 1, 2024 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after March 1, 2024, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to September 1, 2023, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 103.625% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter. Year Percentage 2024 101.813 % 2025 100.906 % 2026 and thereafter 100.000 % (4) The 2031 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $1,250,000 carrying amount on the Consolidated Balance Sheets by $12,395 and $13,887 as of December 31, 2021 and 2020, respectively. Prior to March 1, 2026 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after March 1, 2026, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to September 1, 2023, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 103.875% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter. Year Percentage 2026 101.938 % 2027 101.292 % 2028 100.646 % 2029 and thereafter 100.000 % (5) The 2033 Senior Notes are unsecured obligation notes with no requirement to pledge collateral for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $850,000 carrying amount on the Consolidated Balance Sheets by $8,269, as of December 31, 2021. Prior to October 15, 2027 the Company may redeem the notes at its option, in whole or in part upon not less than 10 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount redeemed, plus a “make whole” premium and accrued and unpaid interest. At any time on or after October 15, 2027, the Company may redeem the note at its option, in whole or in part, upon not less than 10 nor more than 60 days’ notice, at the redemption prices set forth below. The Company may also redeem the notes prior to April 15, 2024, at any time or from time to time, in an amount equal to the cash proceeds received by the Company from an equity offering at a redemption price equal to 104.000% of the principal amount plus accrued and unpaid interest, if any, to but excluding the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40% of the original aggregate principal amount of the notes, provided that the redemption take place not later than 90 days after the closing of the related equity offering; and not less than 60% of the principal amount of the notes remains outstanding immediately thereafter. Year Percentage 2027 102.000 % 2028 101.333 % 2029 100.667 % 2030 and thereafter 100.000 % |
Schedule of Contractual Maturities of Unsecured Senior Notes | The following table outlines the contractual maturities (by unpaid principal balance) of unsecured senior notes (excluding interest and debt discount) for the years ended. Year Amount 2022 $ — 2023 — 2024 — 2025 — 2026 1,150,000 Thereafter 2,911,985 Total $ 4,061,985 |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Receivables from and Payables to Related Parties | The amounts receivable from and payable to Related Parties consisted of the following as of: December 31, 2021 December 31, 2020 Principal Interest Rate Principal Interest Rate Included in Notes receivable and due from affiliates on the Consolidated Balance Sheets Affiliated receivables and other notes $ 9,753 — $ 22,172 — Notes receivable and due from affiliates $ 9,753 $ 22,172 Included in Notes payable and due to affiliates on the Consolidated Balance Sheets RHI/ATI Debenture $ 21,500 8.00 % $ 21,500 8.00 % Affiliated payables 12,150 — 52,396 — Notes payable and due to affiliates $ 33,650 $ 73,896 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense for the years ended: December 31, 2021 2020 Operating Lease Cost: Fixed lease expense (1) $ 77,286 $ 69,200 Variable lease expense (2) 12,246 13,863 Total operating lease cost $ 89,532 $ 83,063 (1) Short term lease expense and month to month lease expense are included within this amount, and are immaterial. (2) Variable lease payments are expensed in the period in which the obligation for those payments is incurred. These variable lease costs are payments that vary in amount beyond commencement date, for reasons other than passage of time. The Company’s variable payments mainly include common area maintenance and building utilities fees. Supplemental cash flow information related to leases for the years ended: December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 77,967 $ 70,717 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 265,011 $ 16,743 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases for the year ended: December 31, 2021 2020 Operating Leases: Total lease right-of-use assets $ 427,895 $ 238,546 Total lease liabilities $ 482,184 $ 272,274 Weighted average lease term 7.5 years 6.4 years Weighted average discount rate 3.61 % 4.24 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities for the year ended: Operating Leases: 2022 $ 83,054 2023 75,641 2024 70,497 2025 68,780 2026 67,616 Thereafter 185,488 Total lease payments $ 551,076 Less imputed interest 68,892 Total $ 482,184 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: December 31, 2021 2020 Goodwill and other intangible assets (1) $ 1,296,926 $ 47,230 Mortgage production related receivables 393,513 307,282 Prepaid expenses 141,512 98,529 Non-production-related receivables 114,557 76,595 Ginnie Mae buyouts 28,149 40,681 Disbursement funds advanced 27,493 80,877 Other real estate owned 492 1,131 Margin call receivable from counterparty 137 247,604 Other 113,035 41,548 Total other assets $ 2,115,814 $ 941,477 (1) Refer to Note 1 Business, Basis of Presentation and Accounting Policies for additional information regarding the acquisition of Truebill. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Taxes and Noncontrolling interest | Income (loss) before income taxes consists of the following: Year Ended December 31, 2021 2020 2019 U.S. $ 6,202,190 $ 9,544,721 $ 912,738 Canada (17,289) (13,064) (8,298) Total income before income taxes $ 6,184,901 $ 9,531,657 $ 904,440 |
Schedule of Provision For (Benefit From) Income Taxes | The provision for (benefit from) income taxes consists of the following: Year Ended December 31, 2021 2020 2019 Current U.S. Federal $ 49,650 $ 38,000 $ 1,747 State and local 14,493 27,971 4,822 Canada 276 (120) 57 Total Current $ 64,419 $ 65,851 $ 6,626 Deferred U.S. Federal $ 49,426 $ 45,713 $ (468) State and local (1,041) 20,817 1,152 Canada (66) — — Total Deferred $ 48,319 $ 66,530 $ 684 Total provision for income taxes $ 112,738 $ 132,381 $ 7,310 |
Schedule of Income Tax Rate Reconciliation | The reconciliation of the U.S. Federal statutory corporate income tax rate to the provision for income taxes consists of the following: Year Ended December 31, 2021 2020 2019 U.S. Federal statutory tax rate 21.00 % 21.00 % 21.00 % Income attributable to non-controlling interest (19.33) (20.27) (21.05) Other 0.15 0.66 0.86 Effective tax rate 1.82 % 1.39 % 0.81 % |
Schedule of Deferred Tax Assets and Liabilities | The Company’s deferred tax assets (liabilities) arise from the following components of temporary differences and carryforwards: December 31, 2021 2020 Investment in partnership $ 588,759 $ 531,020 Mortgage Servicing Rights (11,055) (4,346) Interest Rate Lock Commitments (IRLCs) (1,121) (2,590) Intangible assets (30,445) (847) Net operating loss and credit carryforwards 33,670 10,805 Accruals and other, net 2,522 (6) Valuation allowance (38,663) (24,452) Net deferred tax assets (liabilities) $ 543,667 $ 509,584 The deferred tax balance in the Consolidated Balance Sheets consists of the following: December 31, 2021 2020 Deferred tax asset, net of valuation allowance $ 572,049 $ 519,933 Deferred tax liability (included in Other liabilities) (28,382) (10,349) Net deferred tax asset $ 543,667 $ 509,584 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Hedging Losses and Gains | Net hedging gains and losses were as follows: Year ended December 31, 2021 (1) 2020 (1) 2019 Hedging gains (losses) $ 1,217,010 $ (2,832,741) $ (554,995) (1) Includes the change in fair value related to derivatives economically hedging MSRs identified for sale. |
Schedule of Notional and Fair Values of Derivative Financial Instruments | The notional and fair values of derivative financial instruments not designated as hedging instruments were as follows: Notional Value Derivative Asset Derivative Liability Balance at December 31, 2021 IRLCs, net of loan funding probability (1) $ 21,194,326 $ 538,861 $ — Forward commitments (2) $ 36,476,871 $ 17,337 $ 19,911 Balance at December 31, 2020 IRLCs, net of loan funding probability (1) $ 40,560,544 $ 1,897,194 $ — Forward commitments (2) $ 59,041,900 $ 20,584 $ 506,071 (1) IRLCs are also discussed in Note 13, Commitments, Contingencies, and Guarantees. (2) Includes the fair value and net notional value related to derivatives economically hedging MSRs identified for sale. |
Schedule of Gross Amounts of Recognized Assets Subject to Master Netting Agreements | The table below presents the gross amounts of recognized assets and liabilities subject to master netting agreements. The Company had $137 and $247,604 of cash pledged to counterparties related to these forward commitments at December 31, 2021 and 2020, respectively, classified in Other assets in the Consolidated Balance Sheets. As of December 31, 2021 and 2020, there was $22,826 and zero, respectively, cash on our Consolidated Balance Sheets from the respective counterparties. Margins received by the Company are classified in Other liabilities in the Consolidated Balance Sheets. Gross Amount of Recognized Assets or Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Offsetting of Derivative Assets Balance at December 31, 2021 Forward commitments $ 50,225 $ (32,888) $ 17,337 Balance at December 31, 2020 Forward commitments $ 35,746 $ (15,162) $ 20,584 Offsetting of Derivative Liabilities Balance at December 31, 2021 Forward commitments $ (54,922) $ 35,011 $ (19,911) Balance at December 31, 2020 Forward commitments $ (715,671) $ 209,600 $ (506,071) |
Schedule of Gross Amounts of Recognized Liabilities Subject to Master Netting Agreements | The table below presents the gross amounts of recognized assets and liabilities subject to master netting agreements. The Company had $137 and $247,604 of cash pledged to counterparties related to these forward commitments at December 31, 2021 and 2020, respectively, classified in Other assets in the Consolidated Balance Sheets. As of December 31, 2021 and 2020, there was $22,826 and zero, respectively, cash on our Consolidated Balance Sheets from the respective counterparties. Margins received by the Company are classified in Other liabilities in the Consolidated Balance Sheets. Gross Amount of Recognized Assets or Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Offsetting of Derivative Assets Balance at December 31, 2021 Forward commitments $ 50,225 $ (32,888) $ 17,337 Balance at December 31, 2020 Forward commitments $ 35,746 $ (15,162) $ 20,584 Offsetting of Derivative Liabilities Balance at December 31, 2021 Forward commitments $ (54,922) $ 35,011 $ (19,911) Balance at December 31, 2020 Forward commitments $ (715,671) $ 209,600 $ (506,071) |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of IRLC Unpaid Principal Balance | The UPB of IRLCs was as follows: December 31, 2021 December 31, 2020 Fixed Rate Variable Rate Fixed Rate Variable Rate IRLCs $ 25,937,777 $ 1,239,762 $ 53,736,717 $ 1,065,936 |
Schedule of Investor Reserves Activity | The following presents the activity in the investor reserves: Year Ended December 31, 2021 2020 2019 Balance at beginning of period $ 87,191 $ 54,387 $ 56,943 (Benefit from) provision for investor reserves (8,557) 36,814 (1,872) Premium recapture and indemnification losses paid 254 (4,010) (684) Balance at end of period $ 78,888 $ 87,191 $ 54,387 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Key Operating Data for Business Segments | Key operating data for our business segments for the years ended: Year Ended December 31, 2021 Direct to Consumer Partner Network Segments Total All Other Total Revenues Gain on sale $ 8,843,040 $ 1,597,569 $ 10,440,609 $ 27,965 $ 10,468,574 Interest income 265,438 161,256 426,694 3,392 430,086 Interest expense on funding facilities (161,867) (99,226) (261,093) (53) (261,146) Servicing fee income 1,323,171 — 1,323,171 2,767 1,325,938 Changes in fair value of MSRs (689,432) — (689,432) — (689,432) Other income 1,001,060 105,976 1,107,036 533,410 1,640,446 Total U.S. GAAP Revenue, net $ 10,581,410 $ 1,765,575 $ 12,346,985 $ 567,481 $ 12,914,466 Less: Increase in MSRs due to valuation assumptions (487,473) — (487,473) — (487,473) Adjusted revenue $ 10,093,937 $ 1,765,575 $ 11,859,512 $ 567,481 $ 12,426,993 Directly attributable expenses 3,697,774 686,296 4,384,070 274,546 4,658,616 Contribution margin $ 6,396,163 $ 1,079,279 $ 7,475,442 $ 292,935 $ 7,768,377 Year Ended December 31, 2020 Direct to Consumer Partner Network Segments Total All Other Total Revenues Gain on sale $ 12,076,569 $ 2,986,418 $ 15,062,987 $ 7,716 $ 15,070,703 Interest income 215,171 111,876 327,047 2,546 329,593 Interest expense on funding facilities (161,478) (83,628) (245,106) (417) (245,523) Servicing fee income 1,070,463 — 1,070,463 3,792 1,074,255 Changes in fair value of MSRs (2,379,355) — (2,379,355) — (2,379,355) Other income 900,520 165,699 1,066,219 734,175 1,800,394 Total U.S. GAAP Revenue, net $ 11,721,890 $ 3,180,365 $ 14,902,255 $ 747,812 $ 15,650,067 Plus: Decrease in MSRs due to valuation assumptions 1,288,156 — 1,288,156 — 1,288,156 Adjusted revenue $ 13,010,046 $ 3,180,365 $ 16,190,411 $ 747,812 $ 16,938,223 Directly attributable expenses 3,637,525 537,543 4,175,068 412,351 4,587,419 Contribution margin $ 9,372,521 $ 2,642,822 $ 12,015,343 $ 335,461 $ 12,350,804 Year Ended December 31, 2019 Direct to Consumer Partner Network Segments Total All Other Total Revenues Gain on sale $ 4,318,930 $ 538,421 $ 4,857,351 $ 53,956 $ 4,911,307 Interest income 170,249 76,829 247,078 3,672 250,750 Interest expense on funding facilities (91,650) (41,359) (133,009) (1,907) (134,916) Servicing fee income 946,557 — 946,557 3,664 950,221 Changes in fair value of MSRs (1,644,849) — (1,644,849) — (1,644,849) Other income 443,290 22,423 465,713 270,876 736,589 Total U.S. GAAP Revenue, net $ 4,142,527 $ 596,314 $ 4,738,841 $ 330,261 $ 5,069,102 Plus: Decrease in MSRs due to valuation assumptions 838,119 — 838,119 — 838,119 Adjusted revenue $ 4,980,646 $ 596,314 $ 5,576,960 $ 330,261 $ 5,907,221 Directly attributable expenses 2,523,429 245,282 2,768,711 203,385 2,972,096 Contribution margin $ 2,457,217 $ 351,032 $ 2,808,249 $ 126,876 $ 2,935,125 |
Schedule of Reconciliation of Segment Contribution Margin to Combined U.S. GAAP Income Before Taxes | The following table represents a reconciliation of segment contribution margin to consolidated U.S. GAAP income before taxes for the years ended: Year Ended December 31, 2021 2020 2019 Contribution margin, excluding change in MSRs due to valuation assumptions $ 7,768,377 $ 12,350,804 $ 2,935,125 Increase (decrease) in MSRs due to valuation assumptions 487,473 (1,288,156) (838,119) Contribution margin, including change in MSRs due to valuation assumptions $ 8,255,850 $ 11,062,648 $ 2,097,006 Less expenses not allocated to segments : Salaries, commissions and team member benefits 936,255 815,940 601,174 General and administrative expenses 801,696 443,085 361,297 Depreciation and amortization 74,713 74,316 74,952 Interest and amortization expense on non-funding debt 230,740 186,301 136,853 Other expenses 27,545 11,349 18,290 Income before income taxes $ 6,184,901 $ 9,531,657 $ 904,440 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interests | The following table summarizes the ownership of Holdings Units in Holdings as of: December 31, 2021 December 31, 2020 Holdings Ownership Holdings Ownership Rocket Companies, Inc.'s ownership of Holdings Units 126,437,703 6.40 % 115,372,565 5.81 % Holdings Units held by our Chairman 1,101,822 0.06 % 1,101,822 0.06 % Holdings Units held by RHI 1,847,777,661 93.54 % 1,867,977,661 94.13 % Balance at end of period 1,975,317,186 100.00 % 1,984,452,048 100.00 % |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The Stock Options activity for the period from July 1, 2020 to December 31, 2021 was as follows: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding on July 1, 2020 — — — — Granted 26,393,381 $ 18.01 9.6 Years $ 59,246 Exercised — — — — Expired — — — — Forfeited 411,952 $ 18.00 — $ 1,661 Outstanding as of December 31, 2020 25,981,429 $ 18.01 9.6 Years $ 57,585 Granted 49,020 16.98 — — Exercised 10,466 18.00 — 9 Expired 144,257 18.00 — — Forfeited 1,375,310 18.00 — 2,942 Outstanding as of December 31, 2021 24,500,416 $ 18.01 8.6 Years $ 54,634 The Company had 10,995,518 and zero stock options exercisable as of December 31, 2021 and 2020, respectively. |
Schedule of RSU Activity | The RSU activity for the period from July 1, 2020 to December 31, 2021 was as follows: Number of Units Weighted Average Grant Date Fair Value Weighted Outstanding on July 1, 2020 — — — Granted 16,828,361 $ 18.03 2.2 Years Vested 76,007 18.00 — Forfeited 429,974 18.00 — Outstanding as of December 31, 2020 16,322,380 $ 18.03 2.2 Years Granted 1,678,230 17.01 — Vested 3,276,242 18.02 — Forfeited 1,367,051 18.10 — Outstanding as of December 31, 2021 13,357,317 $ 17.90 1.2 Years |
Schedule of Share-based Compensation Expense | A summary of share-based compensation expense recognized for the year ended December 31, 2021 and from July 1, 2020 to December 31, 2020 related to RKT-denominated awards is as follows: Year Ended December 31, 2021 July 1, 2020 to December 31, 2020 RKT stock options $ 40,100 $ 17,207 RKT restricted stock units 107,867 49,203 RKT Team Member Stock Purchase Plan 9,388 — RKT denominated share-based compensation expense $ 157,355 $ 66,410 A summary of share-based compensation expense recognized for the year ended December 31, 2021, December 31, 2020, and December 31, 2019 related to RHI-denominated awards is as follows: Year ended December 31, 2021 2020 2019 RHI restricted stock units $ 5,413 $ 69,548 $ 39,029 RHI cash settled awards — 26,421 12,546 RHI stock options — 32 425 RHI denominated share-based compensation $ 5,413 $ 96,001 $ 52,000 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings per Share | The following table sets forth the calculation of the basic and diluted earnings per share for the periods following the reorganization and IPO for Class A common stock: Years Ended December 31, 2021 2020 Net income $ 6,072,163 $ 9,399,276 Net income attributable to non-controlling interest (5,763,953) (9,201,325) Net income attributable to Rocket Companies 308,210 197,951 Add: Reallocation of Net income attributable to vested, undelivered stock awards 150 — Net income attributable to common shareholders $ 308,360 $ 197,951 Numerator: Net income attributable to Class A common shareholders - basic $ 308,360 $ 197,951 Add: Reallocation of net income attributable to dilutive impact of pro-forma conversion of Class D shares to Class A shares (1) 4,301,126 — Add: Reallocation of net income attributable to dilutive impact of share-based compensation awards (2) 10,948 7,092 Net income attributable to Class A common shareholders - diluted $ 4,620,434 $ 205,043 Denominator: Weighted average shares of Class A common stock outstanding - basic 130,578,206 111,926,619 Add: Dilutive impact of conversion of Class D shares to Class A shares 1,853,804,962 — Add: Dilutive impact of share-based compensation awards (3) 5,050,399 4,311,874 Weighted average shares of Class A common stock outstanding - diluted 1,989,433,567 116,238,493 Earnings per share of Class A common stock outstanding - basic $ 2.36 $ 1.77 Earnings per share of Class A common stock outstanding - diluted $ 2.32 $ 1.76 (1) Net income calculated using the estimated annual effective tax rate of Rocket Companies, Inc. (2) Reallocation of net income attributable to dilutive impact of share-based compensation awards for the years ended December 31, 2021 and 2020 comprised of $10,660 and $6,683 related to restricted stock units, zero and $409 related to stock options and $288 and zero related to TMSPP. (3) Dilutive impact of share-based compensation awards for the years ended December 31, 2021 and 2020 comprised of 4,917,705 and 4,063,444 related to restricted stock units, zero and 248,430 related to stock options and 132,694 and zero related to TMSPP. |
Business, Basis of Presentati_4
Business, Basis of Presentation and Accounting Policies - Narrative (Details) | Feb. 24, 2022USD ($)$ / shares | Mar. 23, 2021$ / shares | Feb. 25, 2021USD ($)$ / shares | Nov. 10, 2020USD ($) | Sep. 09, 2020shares | Aug. 14, 2020USD ($)$ / sharesshares | Sep. 09, 2020USD ($)shares | Dec. 31, 2021USD ($)Segment$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) |
Basis of Presentation [Line Items] | ||||||||||
Number of operating segments | Segment | 2 | |||||||||
Holdings Units acquired | shares | 115,000,000 | 115,000,000 | ||||||||
Net income | $ 308,210,000 | $ 197,951,000 | $ 0 | |||||||
Unpaid principal balance, loans for which MSRs sold subsequent to period end | 24,000,000,000 | |||||||||
Fair market value, loans for which MSRs sold subsequent to period end | $ 254,400,000 | |||||||||
Percentage of total single-family mortgage services portfolio of MSRs sold subsequent to period end | 4.40% | |||||||||
Share repurchase program authorization | $ 1,000,000,000 | |||||||||
Share repurchase program period in effect | 2 years | |||||||||
Share repurchase program remaining availability | $ 768,400,000 | |||||||||
ATI | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Total aggregate consideration | $ 14,400,000 | |||||||||
Holding units issued in acquisition (in shares) | shares | 800,000 | |||||||||
Value of holding units issued in acquisition (in dollars per share) | $ / shares | $ 18 | |||||||||
ATI | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Net income | 4,700,000 | |||||||||
Holdings | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Cash distribution | $ 2,200,000,000 | |||||||||
Affiliated entity | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Executive management compensation expense | $ 96,199,000 | $ 52,250,000 | ||||||||
Class A common stock | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||
Common stock dividend declared (in dollars per share) | $ / shares | $ 1.11 | |||||||||
Common stock dividend paid (in dollars per share) | $ / shares | $ 1.11 | |||||||||
IPO | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Net proceeds from IPO | $ 2,023,000,000 | |||||||||
IPO | Class A common stock | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Number of shares issued (in shares) | shares | 115,000,000 | |||||||||
Underwriters option | Class A common stock | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Number of shares issued (in shares) | shares | 15,000,000 | |||||||||
Subsequent event | Holdings | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Cash distribution | $ 2,000,000,000 | |||||||||
Subsequent event | Class A common stock | ||||||||||
Basis of Presentation [Line Items] | ||||||||||
Common stock dividend declared (in dollars per share) | $ / shares | $ 1.01 |
Business, Basis of Presentati_5
Business, Basis of Presentation and Accounting Policies - Truebill Acquisition (Details) - Truebill Acquisition $ in Millions | Dec. 23, 2021USD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 1,200 |
Acquisition-related expenses | $ 1.8 |
Business, Basis of Presentati_6
Business, Basis of Presentation and Accounting Policies - Preliminary Purchase Price Allocation (Details) - Truebill Acquisition $ in Thousands | Dec. 23, 2021USD ($) |
Preliminary purchase price allocation | |
Cash | $ 33,084 |
Accounts receivable, net | 2,564 |
Other assets | 9,068 |
Accounts payable and other liabilities | (9,672) |
Deferred revenue | (4,454) |
Deferred tax liability | (16,800) |
Net tangible assets acquired | 13,790 |
Intangible assets | 122,700 |
Goodwill | 1,130,989 |
Total assets acquired | $ 1,267,479 |
Business, Basis of Presentati_7
Business, Basis of Presentation and Accounting Policies - Fair Value of Acquired Intangible Assets (Details) - Truebill Acquisition $ in Thousands | Dec. 23, 2021USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 122,700 |
Trade name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful Lives | 1 year |
Fair Value | $ 1,700 |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful Lives | 3 years |
Fair Value | $ 32,000 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful Lives | 10 years |
Fair Value | $ 89,000 |
Business, Basis of Presentati_8
Business, Basis of Presentation and Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Core Digital Media lead generation revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 27,699 | $ 24,231 | $ 41,895 |
Professional services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 12,753 | 10,884 | 8,320 |
Real estate network referral fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 54,181 | 42,777 | 39,924 |
Contact center | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 45,485 | 27,904 | 27,055 |
Closing fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 506,685 | 457,703 | 200,920 |
Appraisal revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 96,471 | $ 78,673 | $ 76,200 |
Business, Basis of Presentati_9
Business, Basis of Presentation and Accounting Policies - Cash, Cash Equivalents, and Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 2,131,174 | $ 1,971,085 | $ 1,394,571 | |
Restricted cash | 80,423 | 83,018 | 61,154 | |
Total cash, cash equivalents, and restricted cash in the statement of cash flows | 2,211,597 | 2,054,103 | 1,455,725 | $ 1,136,323 |
Bond | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Bond in restricted cash | $ 25,000 | $ 25,000 | $ 25,000 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured at Estimated Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | |||
Mortgage loans held for sale | $ 19,323,568 | $ 22,865,106 | |
MSRs | 5,385,613 | 2,862,685 | $ 2,874,972 |
MSRs collateral for financing liability | 0 | 205,033 | |
Liabilities: | |||
Derivative liability | 19,911 | 506,071 | |
Fair Value, Recurring | |||
Assets: | |||
Mortgage loans held for sale | 19,323,568 | 22,865,106 | |
MSRs | 5,385,613 | 2,862,685 | |
MSRs collateral for financing liability | 205,033 | ||
Total assets | 25,265,379 | 27,850,602 | |
Liabilities: | |||
MSRs financing liability | 187,794 | ||
Total liabilities | 19,911 | 693,865 | |
IRLCs | |||
Assets: | |||
Derivative asset | 538,861 | 1,897,194 | |
IRLCs | Fair Value, Recurring | |||
Assets: | |||
Derivative asset | 538,861 | 1,897,194 | |
Forward commitments | |||
Assets: | |||
Derivative asset | 17,337 | 20,584 | |
Forward commitments | Fair Value, Recurring | |||
Assets: | |||
Derivative asset | 17,337 | 20,584 | |
Liabilities: | |||
Derivative liability | 19,911 | 506,071 | |
Level 1 | Fair Value, Recurring | |||
Assets: | |||
Mortgage loans held for sale | 0 | 0 | |
MSRs | 0 | 0 | |
MSRs collateral for financing liability | 0 | ||
Total assets | 0 | 0 | |
Liabilities: | |||
MSRs financing liability | 0 | ||
Total liabilities | 0 | 0 | |
Level 1 | IRLCs | Fair Value, Recurring | |||
Assets: | |||
Derivative asset | 0 | 0 | |
Level 1 | Forward commitments | Fair Value, Recurring | |||
Assets: | |||
Derivative asset | 0 | 0 | |
Liabilities: | |||
Derivative liability | 0 | 0 | |
Level 2 | Fair Value, Recurring | |||
Assets: | |||
Mortgage loans held for sale | 17,014,202 | 22,285,440 | |
MSRs | 0 | 0 | |
MSRs collateral for financing liability | 0 | ||
Total assets | 17,031,539 | 22,306,024 | |
Liabilities: | |||
MSRs financing liability | 0 | ||
Total liabilities | 19,911 | 506,071 | |
Level 2 | IRLCs | Fair Value, Recurring | |||
Assets: | |||
Derivative asset | 0 | 0 | |
Level 2 | Forward commitments | Fair Value, Recurring | |||
Assets: | |||
Derivative asset | 17,337 | 20,584 | |
Liabilities: | |||
Derivative liability | 19,911 | 506,071 | |
Level 3 | Fair Value, Recurring | |||
Assets: | |||
Mortgage loans held for sale | 2,309,366 | 579,666 | |
MSRs | 5,385,613 | 2,862,685 | |
MSRs collateral for financing liability | 205,033 | ||
Total assets | 8,233,840 | 5,544,578 | |
Liabilities: | |||
MSRs financing liability | 187,794 | ||
Total liabilities | 0 | 187,794 | |
Level 3 | IRLCs | Fair Value, Recurring | |||
Assets: | |||
Derivative asset | 538,861 | 1,897,194 | |
Level 3 | Forward commitments | Fair Value, Recurring | |||
Assets: | |||
Derivative asset | 0 | 0 | |
Liabilities: | |||
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information for Level 3 Measurements (Details) - Level 3 | Dec. 31, 2021 | Dec. 31, 2020 |
Dealer pricing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage loans held for sale | 0.89 | 0.89 |
Dealer pricing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage loans held for sale | 1.03 | 1.05 |
Dealer pricing | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage loans held for sale | 0.99 | 0.99 |
Loan funding probability | IRLCs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives | 0 | 0 |
Loan funding probability | IRLCs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives | 1 | 1 |
Loan funding probability | IRLCs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives | 0.78 | 0.74 |
Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
MSRs, MSRs collateral for financing liability, and MSRs financing liability | 0.090 | 0.095 |
Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
MSRs, MSRs collateral for financing liability, and MSRs financing liability | 0.120 | 0.120 |
Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
MSRs, MSRs collateral for financing liability, and MSRs financing liability | 0.095 | 0.099 |
Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
MSRs, MSRs collateral for financing liability, and MSRs financing liability | 0.068 | 0.066 |
Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
MSRs, MSRs collateral for financing liability, and MSRs financing liability | 0.369 | 0.521 |
Conditional prepayment rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
MSRs, MSRs collateral for financing liability, and MSRs financing liability | 0.087 | 0.158 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Held for Sale | ||
Reconciliation of Level 3 Assets: | ||
Beginning balance | $ 579,666 | $ 308,793 |
Transfers in | 3,524,260 | 1,215,121 |
Transfers out/principal reduction | (1,788,552) | (944,446) |
Net transfers and revaluation gains (losses) | 0 | 0 |
Total gains (losses) included in net income | (6,008) | 198 |
Ending balance | 2,309,366 | 579,666 |
IRLCs | ||
Reconciliation of Level 3 Assets: | ||
Beginning balance | 1,897,194 | 508,135 |
Transfers in | 0 | 0 |
Transfers out/principal reduction | 0 | 0 |
Net transfers and revaluation gains (losses) | (1,358,333) | 1,389,059 |
Total gains (losses) included in net income | 0 | 0 |
Ending balance | $ 538,861 | $ 1,897,194 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Option for Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Mortgage loans held for sale, at fair value | $ 19,323,568 | $ 22,865,106 |
Mortgage loans held for sale, principal amount due upon maturity | 19,018,552 | 21,834,817 |
Difference | $ 305,016 | $ 1,030,289 |
Fair Value Measurements - Liabi
Fair Value Measurements - Liabilities not Recorded at Fair Value on Recurring or Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 4,022,491 | $ 2,973,046 |
Carrying Amount | 2026 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 1,139,146 | 0 |
Carrying Amount | 2028 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 61,197 | 994,986 |
Carrying Amount | 2029 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 742,812 | 741,946 |
Carrying Amount | 2031 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 1,237,605 | 1,236,114 |
Carrying Amount | 2033 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 841,731 | 0 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 4,100,381 | 3,144,169 |
Estimated Fair Value | 2026 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 1,151,932 | 0 |
Estimated Fair Value | 2028 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 64,251 | 1,079,629 |
Estimated Fair Value | 2029 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 752,805 | 766,365 |
Estimated Fair Value | 2031 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 1,273,675 | 1,298,175 |
Estimated Fair Value | 2033 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 857,718 | $ 0 |
Mortgage Servicing Rights - Cha
Mortgage Servicing Rights - Changes to MSR Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes to MSR Assets | ||
Fair value, beginning of period | $ 2,862,685 | $ 2,874,972 |
MSRs originated | 3,864,359 | 3,124,659 |
MSRs sales | (936,257) | (770,809) |
MSRs purchases | 200,591 | 0 |
Changes in fair value: | ||
Due to changes in valuation model inputs or assumptions | 589,852 | (1,274,937) |
Due to collection/realization of cash flows | (1,195,617) | (1,091,200) |
Total changes in fair value | (605,765) | (2,366,137) |
Fair value, end of period | $ 5,385,613 | $ 2,862,685 |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
UPB of mortgage loans serviced | $ 371,494,905 | $ 485,087,214 |
Delinquent loans as a percentage of total portfolio (percent) | 1.60% | |
Delinquent loans as a percentage of total portfolio, excluding clients in forbearance plans (percent) | 0.94% | |
Fair value of MSRs sold and not qualifying for sale accounting treatment | $ 193,739 |
Mortgage Servicing Rights - Fai
Mortgage Servicing Rights - Fair Value Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | ||
Discount rate (percent) | 9.50% | 9.90% |
Prepayment speeds (percent) | 8.70% | 15.80% |
Life (in years) | 7 years 3 months | 5 years 18 days |
Mortgage Servicing Rights - Dis
Mortgage Servicing Rights - Discount Rate and Prepayment Speeds at Two Different Data Points (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Discount Rate | ||
Discount Rate, 100 BPS Adverse Change | $ (232,658) | $ (115,130) |
Discount Rate, 200 BPS Adverse Change | (435,181) | (212,119) |
Prepayment Speeds | ||
Prepayment Speeds, 10% Adverse Change | (198,153) | (147,420) |
Prepayment Speeds, 20% Adverse Change | $ (372,018) | $ (279,691) |
Mortgage Loans Held for Sale (D
Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Mortgage loans held for sale | ||
Balance at the beginning of period | $ 22,865,106 | $ 13,275,735 |
Disbursements of mortgage loans held for sale | 352,968,791 | 316,702,083 |
Proceeds from sales of mortgage loans held for sale | (363,970,300) | (318,218,159) |
Gain on sale of mortgage loans excluding fair value of other financial instruments, net | 7,459,971 | 11,105,447 |
Balance at the end of period | $ 19,323,568 | $ 22,865,106 |
Mortgage loans held for sale average holding period | 19 days |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - Office furniture, equipment, computer software, and leasehold improvements | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 7 years |
Property and Equipment - Balanc
Property and Equipment - Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 821,782 | $ 708,973 |
Accumulated depreciation and amortization | (567,406) | (497,812) |
Total property and equipment, net | 254,376 | 211,161 |
Office furniture, equipment, and technology | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 419,583 | 380,826 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 229,335 | 148,320 |
Internally-developed software | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 116,473 | 100,393 |
Projects-in-process | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 56,391 | $ 79,434 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Cash used to buy-down funding facilities and self-fund loans | $ 3,776,174 |
Buy-down funds | 275,000 |
Self-funding | $ 3,501,174 |
Funding facilities and Other financing facilities | Minimum | |
Debt Instrument [Line Items] | |
Commitment fees (percent) | 0.00% |
Funding facilities and Other financing facilities | Maximum | |
Debt Instrument [Line Items] | |
Commitment fees (percent) | 0.50% |
Borrowings - Funding Facilities
Borrowings - Funding Facilities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2022 | |
Line of Credit Facility [Line Items] | |||
Total Funding Facilities | $ 12,751,592,000 | $ 17,742,573,000 | |
Funding Facilities | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 24,900,000,000 | ||
Committed Line Amount | $ 5,350,000,000 | ||
Funding Facilities | Base rate | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.00% | 0.40% | |
Funding Facilities | Base rate | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.25% | 2.30% | |
Funding Facilities | MRA funding | |||
Line of Credit Facility [Line Items] | |||
Line Amount | $ 17,900,000,000 | ||
Committed Line Amount | 5,350,000,000 | ||
Master Repurchase Agreements | 9,486,726,000 | $ 14,258,968,000 | |
Funding Facilities | Master Repurchase Agreement Due Oct 20 2023 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 2,000,000,000 | ||
Committed Line Amount | 100,000,000 | ||
Master Repurchase Agreements | 249,119,000 | 999,752,000 | |
Funding Facilities | Master Repurchase Agreement Due Dec 01 2022 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 1,500,000,000 | ||
Committed Line Amount | 500,000,000 | ||
Master Repurchase Agreements | 1,328,727,000 | 1,320,484,000 | |
Funding Facilities | Master Repurchase Agreement Due Apr 21 2023 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 2,750,000,000 | ||
Committed Line Amount | 1,000,000,000 | ||
Master Repurchase Agreements | 1,714,806,000 | 2,407,156,000 | |
Funding Facilities | Master Repurchase Agreement Due Oct 26 2022 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 1,700,000,000 | ||
Committed Line Amount | 1,400,000,000 | ||
Master Repurchase Agreements | $ 1,479,128,000 | 1,953,949,000 | |
Facility term | 12 months | ||
Extension term | 3 months | ||
Timing option for extending facility | 3 months | ||
Funding Facilities | Master Repurchase Agreement Due Oct 26 2022 | Subsequent event | |||
Line of Credit Facility [Line Items] | |||
Line Amount | $ 1,500,000,000 | ||
Committed Line Amount | $ 1,200,000,000 | ||
Funding Facilities | Master Repurchase Agreement Due Apr 20 2023 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | $ 3,000,000,000 | ||
Committed Line Amount | 500,000,000 | ||
Master Repurchase Agreements | 2,264,954,000 | 2,004,707,000 | |
Funding Facilities | Master Repurchase Agreement Due Sep 22 2023 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 2,000,000,000 | ||
Committed Line Amount | 500,000,000 | ||
Master Repurchase Agreements | 498,335,000 | 1,780,902,000 | |
Funding Facilities | Master Repurchase Agreement Due Sep 15 2023 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 1,200,000,000 | ||
Committed Line Amount | 500,000,000 | ||
Master Repurchase Agreements | 542,846,000 | 1,343,130,000 | |
Funding Facilities | Master Repurchase Agreement Due Jun 10 2022 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 500,000,000 | ||
Committed Line Amount | 0 | ||
Master Repurchase Agreements | 0 | 219,786,000 | |
Funding Facilities | Master Repurchase Agreement Due Sep 22 2023 Two | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 1,500,000,000 | ||
Committed Line Amount | 500,000,000 | ||
Master Repurchase Agreements | 539,257,000 | 983,126,000 | |
Funding Facilities | Master Repurchase Agreement Due Aug 16 2023 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 750,000,000 | ||
Committed Line Amount | 100,000,000 | ||
Master Repurchase Agreements | 616,165,000 | 480,544,000 | |
Funding Facilities | Master Repurchase Agreement Due Dec 16 2022 | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 1,000,000,000 | ||
Committed Line Amount | 250,000,000 | ||
Master Repurchase Agreements | 253,389,000 | 765,432,000 | |
Funding Facilities | Early Funding | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 7,000,000,000 | ||
Committed Line Amount | 0 | ||
Early Funding Facilities | 3,264,866,000 | 3,483,605,000 | |
Funding Facilities | Early Funding Facility, one | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 4,000,000,000 | ||
Committed Line Amount | 0 | ||
Early Funding Facilities | 2,071,154,000 | 2,514,193,000 | |
Funding Facilities | Early Funding Facility, two | |||
Line of Credit Facility [Line Items] | |||
Line Amount | 3,000,000,000 | ||
Committed Line Amount | 0 | ||
Early Funding Facilities | $ 1,193,712,000 | $ 969,412,000 | |
Timing for review of agreement | 90 days |
Borrowings - Other Financing Fa
Borrowings - Other Financing Facilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Financing Facilities | $ 75,000,000 | $ 375,000,000 |
Early Buyout Financing Facilities | 1,896,784,000 | 330,266,000 |
Line of Credit Financing Facilities | ||
Line of Credit Facility [Line Items] | ||
Line Amount | 3,500,000,000 | |
Committed Line Amount | 1,200,000,000 | |
Line of Credit Financing Facilities | $ 75,000,000 | $ 375,000,000 |
Line of Credit Financing Facilities | Base rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.45% | 1.75% |
Line of Credit Financing Facilities | Base rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 4.00% | 4.00% |
Line of Credit | Unsecured line of credit, maturing Jul 27 2025, RHI | Affiliated entity | ||
Line of Credit Facility [Line Items] | ||
Line Amount | $ 2,000,000,000 | |
Committed Line Amount | 0 | |
Line of Credit Financing Facilities | 0 | $ 0 |
Line of Credit | Unsecured line of credit, maturing Jul 31 2025, RHI | Affiliated entity | ||
Line of Credit Facility [Line Items] | ||
Line Amount | 100,000,000 | |
Committed Line Amount | 0 | |
Line of Credit Financing Facilities | 0 | 0 |
Line of Credit | MSR line of credit, maturing Oct 20 2023 | ||
Line of Credit Facility [Line Items] | ||
Line Amount | 200,000,000 | |
Committed Line Amount | 0 | |
Line of Credit Financing Facilities | 0 | 0 |
Line of Credit | MSR line of credit, maturing Apr 30 2024 | ||
Line of Credit Facility [Line Items] | ||
Line Amount | 200,000,000 | |
Committed Line Amount | 200,000,000 | |
Line of Credit Financing Facilities | $ 75,000,000 | 75,000,000 |
Facility term | 5 years | |
Facility revolving period | 3 years | |
Facility amortization period | 2 years | |
Revolving Credit Facility | Revolving Credit Facility Maturing Aug 10 2024 | ||
Line of Credit Facility [Line Items] | ||
Line Amount | $ 1,000,000,000 | |
Committed Line Amount | 1,000,000,000 | |
Line of Credit Financing Facilities | 0 | $ 300,000,000 |
Early Buyout Financing Facility | ||
Line of Credit Facility [Line Items] | ||
Line Amount | 2,600,000,000 | |
Committed Line Amount | $ 0 | |
Early Buyout Financing Facility | Base rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.45% | 1.75% |
Early Buyout Financing Facility | Base rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 4.00% | 4.00% |
Borrowings - Unsecured Senior N
Borrowings - Unsecured Senior Notes (Details) - Unsecured Senior Notes - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 4,061,985 | $ 3,010,000 |
Weighted Average Interest Rate (percent) | 3.59% | 4.27% |
2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate (percent) | 2.875% | |
Outstanding Balance | $ 1,150,000 | $ 0 |
Unamortized debt issuance costs and discounts | $ 10,854 | |
Redemption period start date | Oct. 15, 2023 | |
2026 Senior Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 10 days | |
2026 Senior Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 60 days | |
2026 Senior Notes | Redemption period one | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 101.438% | |
2026 Senior Notes | Redemption period two | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.719% | |
2026 Senior Notes | Redemption period three | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.00% | |
2026 Senior Notes | Redemption with makewhole premium | ||
Debt Instrument [Line Items] | ||
Redemption period end date | Oct. 15, 2023 | |
Redemption price (percent) | 100.00% | |
2026 Senior Notes | Redemption with makewhole premium | Minimum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 10 days | |
2026 Senior Notes | Redemption with makewhole premium | Maximum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 60 days | |
2026 Senior Notes | Redemption with proceeds from equity offering | ||
Debt Instrument [Line Items] | ||
Redemption period end date | Apr. 15, 2023 | |
Redemption price (percent) | 102.875% | |
Maximum principal amount that can be redeemed (percent) | 40.00% | |
Time for redemption from closing of equity offering | 90 days | |
Minimum principal amount that must remain outstanding (percent) | 60.00% | |
2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate (percent) | 5.25% | |
Outstanding Balance | $ 61,985 | 1,010,000 |
Purchase of debt | 948,015 | |
Unamortized debt issuance costs | 430 | 8,197 |
Unamortized discounts | $ 358 | 6,817 |
Redemption period start date | Jan. 15, 2023 | |
2028 Senior Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 30 days | |
2028 Senior Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 60 days | |
2028 Senior Notes | Redemption period one | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 102.625% | |
2028 Senior Notes | Redemption period two | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 101.75% | |
2028 Senior Notes | Redemption period three | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.875% | |
2028 Senior Notes | Redemption period four | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.00% | |
2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate (percent) | 3.625% | |
Outstanding Balance | $ 750,000 | 750,000 |
Unamortized debt issuance costs and discounts | $ 7,188 | 8,053 |
Redemption period start date | Mar. 1, 2024 | |
2029 Senior Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 10 days | |
2029 Senior Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 60 days | |
2029 Senior Notes | Redemption period one | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 101.813% | |
2029 Senior Notes | Redemption period two | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.906% | |
2029 Senior Notes | Redemption period three | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.00% | |
2029 Senior Notes | Redemption with makewhole premium | ||
Debt Instrument [Line Items] | ||
Redemption period end date | Mar. 1, 2024 | |
Redemption price (percent) | 100.00% | |
2029 Senior Notes | Redemption with makewhole premium | Minimum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 10 days | |
2029 Senior Notes | Redemption with makewhole premium | Maximum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 60 days | |
2029 Senior Notes | Redemption with proceeds from equity offering | ||
Debt Instrument [Line Items] | ||
Redemption period end date | Sep. 1, 2023 | |
Redemption price (percent) | 103.625% | |
Maximum principal amount that can be redeemed (percent) | 40.00% | |
Time for redemption from closing of equity offering | 90 days | |
Minimum principal amount that must remain outstanding (percent) | 60.00% | |
2031 Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate (percent) | 3.875% | |
Outstanding Balance | $ 1,250,000 | 1,250,000 |
Unamortized debt issuance costs and discounts | $ 12,395 | 13,887 |
Redemption period start date | Mar. 1, 2026 | |
2031 Senior Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 10 days | |
2031 Senior Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 60 days | |
2031 Senior Notes | Redemption period one | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 101.938% | |
2031 Senior Notes | Redemption period two | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 101.292% | |
2031 Senior Notes | Redemption period three | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.646% | |
2031 Senior Notes | Redemption period four | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.00% | |
2031 Senior Notes | Redemption with makewhole premium | ||
Debt Instrument [Line Items] | ||
Redemption period end date | Mar. 1, 2026 | |
Redemption price (percent) | 100.00% | |
2031 Senior Notes | Redemption with makewhole premium | Minimum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 10 days | |
2031 Senior Notes | Redemption with makewhole premium | Maximum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 60 days | |
2031 Senior Notes | Redemption with proceeds from equity offering | ||
Debt Instrument [Line Items] | ||
Redemption period end date | Sep. 1, 2023 | |
Redemption price (percent) | 103.875% | |
Maximum principal amount that can be redeemed (percent) | 40.00% | |
Time for redemption from closing of equity offering | 90 days | |
Minimum principal amount that must remain outstanding (percent) | 60.00% | |
2033 Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate (percent) | 4.00% | |
Outstanding Balance | $ 850,000 | $ 0 |
Unamortized debt issuance costs and discounts | $ 8,269 | |
Redemption period start date | Oct. 15, 2027 | |
2033 Senior Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 10 days | |
2033 Senior Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 60 days | |
2033 Senior Notes | Redemption period one | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 102.00% | |
2033 Senior Notes | Redemption period two | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 101.333% | |
2033 Senior Notes | Redemption period three | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.667% | |
2033 Senior Notes | Redemption period four | ||
Debt Instrument [Line Items] | ||
Redemption price (percent) | 100.00% | |
2033 Senior Notes | Redemption with makewhole premium | ||
Debt Instrument [Line Items] | ||
Redemption period end date | Oct. 15, 2027 | |
Redemption price (percent) | 100.00% | |
2033 Senior Notes | Redemption with makewhole premium | Minimum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 10 days | |
2033 Senior Notes | Redemption with makewhole premium | Maximum | ||
Debt Instrument [Line Items] | ||
Redemption notice period (in days) | 60 days | |
2033 Senior Notes | Redemption with proceeds from equity offering | ||
Debt Instrument [Line Items] | ||
Redemption period end date | Apr. 15, 2024 | |
Redemption price (percent) | 104.00% | |
Maximum principal amount that can be redeemed (percent) | 40.00% | |
Time for redemption from closing of equity offering | 90 days | |
Minimum principal amount that must remain outstanding (percent) | 60.00% |
Borrowings - Contractual Maturi
Borrowings - Contractual Maturities of Unsecured Senior Notes (Details) - Unsecured Senior Notes - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Contractual Maturities of Unsecured Senior Notes | ||
2022 | $ 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 1,150,000 | |
Thereafter | 2,911,985 | |
Total | $ 4,061,985 | $ 3,010,000 |
Transactions with Related Par_3
Transactions with Related Parties - Narrative (Details) - USD ($) | Sep. 16, 2021 | Jul. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||
Lines of credit | $ 75,000,000 | $ 375,000,000 | |||
Aggregate repayments | 300,000,000 | ||||
Interest paid | 7,167,000 | 3,486,000 | $ 5,603,000 | ||
Draws on line of credit | 210,000,000 | 0 | |||
Marketing and advertising expenses | 1,249,583,000 | 949,933,000 | 905,000,000 | ||
Affiliated entity | |||||
Related Party Transaction [Line Items] | |||||
Surplus debenture with related party | $ 21,500,000 | $ 21,500,000 | |||
Interest rate (percent) | 8.00% | 8.00% | |||
Affiliated entity | Line of Credit | Unsecured line of credit, maturing Jul 27 2025, RHI | |||||
Related Party Transaction [Line Items] | |||||
Line amount | $ 2,000,000,000 | ||||
Lines of credit | 0 | $ 0 | |||
Affiliated entity | Line of Credit | Unsecured line of credit, maturing Jul 31 2025, RHI | |||||
Related Party Transaction [Line Items] | |||||
Line amount | 100,000,000 | ||||
Lines of credit | 0 | 0 | |||
Affiliated entity | RHI credit agreement | Line of Credit | Unsecured line of credit, maturing Jul 27 2025, RHI | |||||
Related Party Transaction [Line Items] | |||||
Line amount | $ 2,000,000,000 | ||||
Lines of credit | 0 | 0 | |||
Aggregate repayments | 2,502,793,000 | 2,201,621,000 | |||
Interest paid | 2,793,000 | 1,621,000 | |||
Interest due | 762,000 | 0 | |||
Affiliated entity | RHI credit agreement | Line of Credit | Unsecured line of credit, maturing Jul 27 2025, RHI | One-month LIBOR | |||||
Related Party Transaction [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Affiliated entity | RHI credit agreement | Line of Credit | Unsecured line of credit, maturing Jul 31 2025, RHI | |||||
Related Party Transaction [Line Items] | |||||
Line amount | $ 100,000,000 | ||||
Lines of credit | 0 | 0 | |||
Draws on line of credit | 0 | 0 | |||
Affiliated entity | RHI credit agreement | Line of Credit | Unsecured line of credit, maturing Jul 31 2025, RHI | One-month LIBOR | |||||
Related Party Transaction [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Affiliated entity | RHI/ATI Debenture | |||||
Related Party Transaction [Line Items] | |||||
Surplus debenture with related party | $ 21,500,000 | ||||
Interest rate (percent) | 8.00% | ||||
Interest paid | $ 1,000,000 | 1,000,000 | |||
Interest accrued | 1,720,000 | 1,725,000 | |||
Affiliated entity | Services, products and other transactions | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 13,275,000 | 14,081,000 | 12,405,000 | ||
General and administrative expenses from transactions with related parties | 168,581,000 | 215,728,000 | 67,752,000 | ||
Affiliated entity | Promotional sponsorships | |||||
Related Party Transaction [Line Items] | |||||
Marketing and advertising expenses | 9,026,000 | 10,330,000 | 9,675,000 | ||
Affiliated entity | Bedrock lease agreements | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related parties | $ 76,960,000 | $ 70,157,000 | $ 69,582,000 |
Transactions with Related Par_4
Transactions with Related Parties - Receivables from and Payables to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Included in Notes receivable and due from affiliates on the Consolidated Balance Sheets | ||
Notes receivable and due from affiliates | $ 9,753 | $ 22,172 |
Included in Notes payable and due to affiliates on the Consolidated Balance Sheets | ||
Notes payable and due to affiliates | 33,650 | 73,896 |
Affiliated entity | ||
Included in Notes receivable and due from affiliates on the Consolidated Balance Sheets | ||
Affiliated receivables and other notes | 9,753 | 22,172 |
Notes receivable and due from affiliates | 9,753 | 22,172 |
Included in Notes payable and due to affiliates on the Consolidated Balance Sheets | ||
RHI/ATI Debenture | 21,500 | 21,500 |
Affiliated payables | 12,150 | 52,396 |
Notes payable and due to affiliates | $ 33,650 | $ 73,896 |
Interest rate (percent) | 8.00% | 8.00% |
Leases - Operating Lease Cost (
Leases - Operating Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Lease Cost: | ||
Fixed lease expense | $ 77,286 | $ 69,200 |
Variable lease expense | 12,246 | 13,863 |
Total operating lease cost | $ 89,532 | $ 83,063 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 10 years |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 77,967 | $ 70,717 |
Right-of-use assets obtained in exchange for operating lease obligations | 265,011 | 16,743 |
Total lease right-of-use assets | 427,895 | 238,546 |
Total lease liabilities | $ 482,184 | $ 272,274 |
Weighted average lease term | 7 years 6 months | 6 years 4 months 24 days |
Weighted average discount rate | 3.61% | 4.24% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases: | ||
2022 | $ 83,054 | |
2023 | 75,641 | |
2024 | 70,497 | |
2025 | 68,780 | |
2026 | 67,616 | |
Thereafter | 185,488 | |
Total lease payments | 551,076 | |
Less imputed interest | 68,892 | |
Total lease liabilities | $ 482,184 | $ 272,274 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Goodwill and other intangible assets (1) | $ 1,296,926 | $ 47,230 |
Mortgage production related receivables | 393,513 | 307,282 |
Prepaid expenses | 141,512 | 98,529 |
Non-production-related receivables | 114,557 | 76,595 |
Ginnie Mae buyouts | 28,149 | 40,681 |
Disbursement funds advanced | 27,493 | 80,877 |
Other real estate owned | 492 | 1,131 |
Margin call receivable from counterparty | 137 | 247,604 |
Other | 113,035 | 41,548 |
Total other assets | $ 2,115,814 | $ 941,477 |
Team Member Benefit Plan (Detai
Team Member Benefit Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Discretionary matching contribution as percentage of team members' contributions | 50.00% | ||
Annual maximum discretionary matching contribution per team member | $ 2,500 | ||
Discretionary contributions to the plan | $ 44,060,000 | $ 47,072,000 | $ 35,556,000 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income (loss) before income taxes | |||
U.S. | $ 6,202,190 | $ 9,544,721 | $ 912,738 |
Canada | (17,289) | (13,064) | (8,298) |
Income before income taxes | $ 6,184,901 | $ 9,531,657 | $ 904,440 |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
U.S. Federal | $ 49,650 | $ 38,000 | $ 1,747 |
State and local | 14,493 | 27,971 | 4,822 |
Canada | 276 | (120) | 57 |
Total Current | 64,419 | 65,851 | 6,626 |
Deferred | |||
U.S. Federal | 49,426 | 45,713 | (468) |
State and local | (1,041) | 20,817 | 1,152 |
Canada | (66) | 0 | 0 |
Total Deferred | 48,319 | 66,530 | 684 |
Total provision for income taxes | $ 112,738 | $ 132,381 | $ 7,310 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Rate Reconciliation | |||
U.S. Federal statutory tax rate | 21.00% | 21.00% | 21.00% |
Income attributable to non-controlling interest | (19.33%) | (20.27%) | (21.05%) |
Other | 0.15% | 0.66% | 0.86% |
Effective tax rate | 1.82% | 1.39% | 0.81% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets (Liabilities) | ||
Investment in partnership | $ 588,759 | $ 531,020 |
Mortgage Servicing Rights | (11,055) | (4,346) |
Interest Rate Lock Commitments (IRLCs) | (1,121) | (2,590) |
Intangible assets | (30,445) | (847) |
Net operating loss and credit carryforwards | 33,670 | 10,805 |
Accruals and other, net | 2,522 | |
Accruals and other, net | (6) | |
Valuation allowance | (38,663) | (24,452) |
Net deferred tax asset | 543,667 | 509,584 |
Deferred tax balance in the Consolidated Balance Sheets | ||
Deferred tax asset, net of valuation allowance | 572,049 | 519,933 |
Deferred tax liability (included in Other liabilities) | (28,382) | (10,349) |
Net deferred tax asset | $ 543,667 | $ 509,584 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 09, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||||
Deferred tax asset before valuation allowance | $ 610,712 | $ 544,385 | ||
Deferred tax liability | 28,382 | 10,349 | ||
Tax valuation allowance | 38,663 | 24,452 | ||
Deferred tax assets related to the net operating loss and credit carryforwards | 33,670 | 10,805 | ||
Carryforwards subject to expiration | 17,382 | |||
Carryforwards not subject to expiration | 16,288 | |||
Interest or penalties expense | 0 | 0 | ||
Accrued interest or penalties | $ 0 | $ 0 | ||
Percentage of applicable tax savings payable per tax receivable agreement | 90.00% | |||
Percentage of applicable tax savings retained by the Company per tax receivable agreement | 10.00% | |||
Increase in Tax receivable agreement liability | $ 119,456 | |||
Offsetting amount to additional paid-in capital | 985 | |||
Holdings Units acquired | 115,000,000 | 115,000,000 | ||
Value of Holdings Units acquired | $ 2,070,000 | |||
Tax receivable agreement liability | $ 688,573 | 550,282 | ||
Payments pursuant to tax receivable agreement | $ 0 | 0 | ||
Discount rate for payment valuation if change of control or material breach | 6.50% | |||
Basis points upon LIBOR for payment valuation if change of control or material breach | 0.0100 | |||
Discount rate for payment valuation if early termination of agreement | 6.50% | |||
Basis points upon LIBOR for payment valuation if early termination of agreement | 0.0100 | |||
Tax distributions to holders of Holdings Units | $ 1,803,494 | $ 1,375,181 | ||
Investment In Subsidiary Or Partnership | ||||
Income Taxes [Line Items] | ||||
Increase in deferred tax asset | 123,587 | |||
Increase in valuation allowance | $ 3,146 | |||
Class A common stock | ||||
Income Taxes [Line Items] | ||||
Shares received in exchange of paired interests | 20,200,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Net Hedging Losses and Gains (Details) - Forward commitments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedging gains | $ 1,217,010 | ||
Hedging (losses) | $ (2,832,741) | $ (554,995) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Notional and Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Derivative liability | $ 19,911 | $ 506,071 |
IRLCs, net of loan funding probability | ||
Derivative [Line Items] | ||
Derivative asset | 538,861 | 1,897,194 |
Derivative liability | 0 | 0 |
Forward commitments | ||
Derivative [Line Items] | ||
Derivative asset | 17,337 | 20,584 |
Derivative liability | 19,911 | 506,071 |
Not Designated | IRLCs, net of loan funding probability | ||
Derivative [Line Items] | ||
Notional value | 21,194,326 | 40,560,544 |
Not Designated | Forward commitments | ||
Derivative [Line Items] | ||
Notional value | $ 36,476,871 | $ 59,041,900 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash pledged to counterparties | $ 137,000 | $ 247,604,000 |
Cash pledged from counterparties | 22,826,000 | 0 |
Credit losses due to nonperformance of counterparty | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gross Amounts Recognized Subject to Master Netting Agreements (Details) - Not Designated - Forward commitments - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Assets | $ 50,225 | $ 35,746 |
Gross Amounts Offset in the Consolidated Balance Sheets | (32,888) | (15,162) |
Net Assets Presented in the Condensed Consolidated Balance Sheets | 17,337 | 20,584 |
Gross Amount of Recognized Liabilities | (54,922) | (715,671) |
Gross Amounts Offset in the Consolidated Balance Sheets | 35,011 | 209,600 |
Net Liabilities Presented in the Condensed Consolidated Balance Sheets | $ (19,911) | $ (506,071) |
Commitments, Contingencies, a_3
Commitments, Contingencies, and Guarantees - Narrative (Details) $ in Thousands | Mar. 14, 2018USD ($) | Dec. 31, 2021USD ($)guarantee | Dec. 31, 2020USD ($)guarantee | Dec. 31, 2019USD ($) | Nov. 23, 2021lawsuit | Jun. 29, 2021lawsuit |
Other Commitments [Line Items] | ||||||
Administrated escrow deposits for property taxes and insurance | $ 3,682,366 | $ 3,551,400 | ||||
Administrated escrow deposits for principal and interest | 8,370,326 | 13,065,549 | ||||
Other expenses | 634,296 | $ 616,479 | $ 280,032 | |||
Recorded reserves related to potential damages in connection with legal proceedings | $ 15 | |||||
IRLCs | ||||||
Other Commitments [Line Items] | ||||||
Average number of days until expiration of interest rate lock commitments | 43 days | 43 days | ||||
Mortgages | ||||||
Other Commitments [Line Items] | ||||||
Commitments to sell loans | $ 2,243,381 | $ 3,139,816 | ||||
MSRs with Servicing Released | ||||||
Other Commitments [Line Items] | ||||||
Commitments to sell loans | 333,594 | 280,502 | ||||
Financial Guarantee | ||||||
Other Commitments [Line Items] | ||||||
Guaranteed debt total amount | $ 5,216 | $ 15,000 | ||||
Number of separate guarantees | guarantee | 3 | 3 | ||||
Trademark license | ||||||
Other Commitments [Line Items] | ||||||
Other expenses | $ 625 | $ 7,500 | $ 7,500 | |||
HouseCanary | ||||||
Other Commitments [Line Items] | ||||||
Damages awarded to plaintiff | $ 706,200 | |||||
Judgement awarded for damages, interest, and fees | 739,600 | |||||
Actual damages awarded | 235,400 | |||||
Punitive damages awarded | 470,800 | |||||
Prejudgment interest | 28,900 | |||||
Attorney fees | $ 4,500 | |||||
Putative securities class action lawsuits | ||||||
Other Commitments [Line Items] | ||||||
Number of lawsuits | lawsuit | 2 | |||||
Shareholder derivative actions | ||||||
Other Commitments [Line Items] | ||||||
Number of lawsuits | lawsuit | 2 |
Commitments, Contingencies, a_4
Commitments, Contingencies, and Guarantees - Interest Rate Lock Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
IRLCs UPB, Fixed Rate | $ 25,937,777 | $ 53,736,717 |
IRLCs UPB, Variable Rate | $ 1,239,762 | $ 1,065,936 |
Commitments, Contingencies, a_5
Commitments, Contingencies, and Guarantees - Investor Reserves Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investor Reserves | |||
Balance at beginning of period | $ 87,191 | $ 54,387 | $ 56,943 |
(Benefit from) provision for investor reserves | (8,557) | 36,814 | (1,872) |
Premium recapture and indemnification losses paid | 254 | (4,010) | (684) |
Balance at end of period | $ 78,888 | $ 87,191 | $ 54,387 |
Minimum Net Worth Requirements
Minimum Net Worth Requirements (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Minimum capital ratio requirement, Adjusted/Tangible Net Worth to Total Assets | 0.06 | |
Minimum adjusted net worth balance | $ 1,794,783,000 | $ 2,175,968,000 |
Fannie Mae and Freddie Mac | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Minimum base net worth requirement | $ 2,500,000 | |
Minimum net worth requirement, basis point component per outstanding UPB | 0.25% | |
Minimum liquidity requirement, basis points per total Agency servicing | 0.035% | |
Minimum liquidity requirement, basis points per total nonperforming Agency servicing | 2.00% | |
Minimum liquidity requirement, threshold percentage of nonperforming Agency servicing in excess of total Agency servicing | 6.00% | |
Ginnie Mae | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Minimum base net worth requirement | $ 2,500,000 | |
Minimum net worth requirement, basis point component per single-family effective outstanding obligations | 0.35% | |
Minimum liquidity requirement, liquid assets amount | $ 1,000,000 | |
Minimum liquidity requirement, liquid assets as basis points per outstanding single-family MBS | 0.10% |
Segments - Key Operating Data f
Segments - Key Operating Data for Business Segments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Gain on sale | $ 10,468,574 | $ 15,070,703 | $ 4,911,307 |
Interest income | 430,086 | 329,593 | 250,750 |
Interest expense on funding facilities | (261,146) | (245,523) | (134,916) |
Servicing fee income | 1,325,938 | 1,074,255 | 950,221 |
Change in fair value of MSRs | (689,432) | (2,379,355) | (1,644,849) |
Other income | 1,640,446 | 1,800,394 | 736,589 |
Total revenue, net | 12,914,466 | 15,650,067 | 5,069,102 |
Less: Increase in MSRs due to valuation assumptions | (487,473) | 1,288,156 | 838,119 |
Adjusted revenue | 12,426,993 | 16,938,223 | 5,907,221 |
Directly attributable expenses | 4,658,616 | 4,587,419 | 2,972,096 |
Contribution margin | 7,768,377 | 12,350,804 | 2,935,125 |
Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Gain on sale | 10,440,609 | 15,062,987 | 4,857,351 |
Interest income | 426,694 | 327,047 | 247,078 |
Interest expense on funding facilities | (261,093) | (245,106) | (133,009) |
Servicing fee income | 1,323,171 | 1,070,463 | 946,557 |
Change in fair value of MSRs | (689,432) | (2,379,355) | (1,644,849) |
Other income | 1,107,036 | 1,066,219 | 465,713 |
Total revenue, net | 12,346,985 | 14,902,255 | 4,738,841 |
Less: Increase in MSRs due to valuation assumptions | (487,473) | 1,288,156 | 838,119 |
Adjusted revenue | 11,859,512 | 16,190,411 | 5,576,960 |
Directly attributable expenses | 4,384,070 | 4,175,068 | 2,768,711 |
Contribution margin | 7,475,442 | 12,015,343 | 2,808,249 |
Reportable Segments | Direct to Consumer | |||
Segment Reporting Information [Line Items] | |||
Gain on sale | 8,843,040 | 12,076,569 | 4,318,930 |
Interest income | 265,438 | 215,171 | 170,249 |
Interest expense on funding facilities | (161,867) | (161,478) | (91,650) |
Servicing fee income | 1,323,171 | 1,070,463 | 946,557 |
Change in fair value of MSRs | (689,432) | (2,379,355) | (1,644,849) |
Other income | 1,001,060 | 900,520 | 443,290 |
Total revenue, net | 10,581,410 | 11,721,890 | 4,142,527 |
Less: Increase in MSRs due to valuation assumptions | (487,473) | 1,288,156 | 838,119 |
Adjusted revenue | 10,093,937 | 13,010,046 | 4,980,646 |
Directly attributable expenses | 3,697,774 | 3,637,525 | 2,523,429 |
Contribution margin | 6,396,163 | 9,372,521 | 2,457,217 |
Reportable Segments | Partner Network | |||
Segment Reporting Information [Line Items] | |||
Gain on sale | 1,597,569 | 2,986,418 | 538,421 |
Interest income | 161,256 | 111,876 | 76,829 |
Interest expense on funding facilities | (99,226) | (83,628) | (41,359) |
Servicing fee income | 0 | 0 | 0 |
Change in fair value of MSRs | 0 | 0 | 0 |
Other income | 105,976 | 165,699 | 22,423 |
Total revenue, net | 1,765,575 | 3,180,365 | 596,314 |
Less: Increase in MSRs due to valuation assumptions | 0 | 0 | 0 |
Adjusted revenue | 1,765,575 | 3,180,365 | 596,314 |
Directly attributable expenses | 686,296 | 537,543 | 245,282 |
Contribution margin | 1,079,279 | 2,642,822 | 351,032 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Gain on sale | 27,965 | 7,716 | 53,956 |
Interest income | 3,392 | 2,546 | 3,672 |
Interest expense on funding facilities | (53) | (417) | (1,907) |
Servicing fee income | 2,767 | 3,792 | 3,664 |
Change in fair value of MSRs | 0 | 0 | 0 |
Other income | 533,410 | 734,175 | 270,876 |
Total revenue, net | 567,481 | 747,812 | 330,261 |
Less: Increase in MSRs due to valuation assumptions | 0 | 0 | 0 |
Adjusted revenue | 567,481 | 747,812 | 330,261 |
Directly attributable expenses | 274,546 | 412,351 | 203,385 |
Contribution margin | $ 292,935 | $ 335,461 | $ 126,876 |
Segments - Reconciliation of Se
Segments - Reconciliation of Segment Contribution Margin to U.S. GAAP Net Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment reporting reconciliation [Line Items] | |||
Contribution margin, excluding change in MSRs due to valuation assumptions | $ 7,768,377 | $ 12,350,804 | $ 2,935,125 |
Increase (decrease) in MSRs due to valuation assumptions | 487,473 | (1,288,156) | (838,119) |
Contribution margin, including change in MSRs due to valuation assumptions | 8,255,850 | 11,062,648 | 2,097,006 |
Salaries, commissions and team member benefits | 3,356,815 | 3,238,301 | 2,082,797 |
General and administrative expenses | 1,183,418 | 1,053,080 | 685,028 |
Depreciation and amortization | 74,713 | 74,316 | 74,952 |
Interest and amortization expense on non-funding debt | 230,740 | 186,301 | 136,853 |
Other expenses | 634,296 | 616,479 | 280,032 |
Income before income taxes | 6,184,901 | 9,531,657 | 904,440 |
Expenses not allocated to segments | |||
Segment reporting reconciliation [Line Items] | |||
Salaries, commissions and team member benefits | 936,255 | 815,940 | 601,174 |
General and administrative expenses | 801,696 | 443,085 | 361,297 |
Depreciation and amortization | 74,713 | 74,316 | 74,952 |
Interest and amortization expense on non-funding debt | 230,740 | 186,301 | 136,853 |
Other expenses | $ 27,545 | $ 11,349 | $ 18,290 |
Noncontrolling Interests - Summ
Noncontrolling Interests - Summary of Ownership (Details) - Holdings - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Noncontrolling Interest [Line Items] | ||
Holdings Units (shares) | 1,975,317,186 | 1,984,452,048 |
Ownership Percentage | 100.00% | 100.00% |
Rocket Companies Inc. | ||
Noncontrolling Interest [Line Items] | ||
Holdings Units (shares) | 126,437,703 | 115,372,565 |
Ownership Percentage | 6.40% | 5.81% |
Chairman | ||
Noncontrolling Interest [Line Items] | ||
Holdings Units (shares) | 1,101,822 | 1,101,822 |
Ownership Percentage | 0.06% | 0.06% |
RHI | ||
Noncontrolling Interest [Line Items] | ||
Holdings Units (shares) | 1,847,777,661 | 1,867,977,661 |
Ownership Percentage | 93.54% | 94.13% |
Noncontrolling Interests - Narr
Noncontrolling Interests - Narrative (Details) - shares | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Noncontrolling Interest [Line Items] | |||
Increase in controlling interest (percent) | 1.00% | ||
Class A common stock | |||
Noncontrolling Interest [Line Items] | |||
Shares received in exchange of paired interests | 20,200,000 | ||
Shares repurchased | 14,442,195 | 0 |
Share-based Compensation - RKT
Share-based Compensation - RKT Awards Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 163,738 | $ 162,608 | $ 52,249 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Award expiration period | 10 years | ||
Black-Scholes option pricing model, expected dividend yield (percent) | 1.50% | ||
Black-Scholes option pricing model, volatility factor (percent) | 34.00% | ||
Black-Scholes option pricing model, volatility factor, minimum (percent) | 34.00% | ||
Black-Scholes option pricing model, volatility factor, maximum (percent) | 35.50% | ||
Black-Scholes option pricing model, risk-free interest rate (percent) | 0.29% | ||
Black-Scholes option pricing model, risk-free interest rate, minimum (percent) | 0.29% | ||
Black-Scholes option pricing model, risk-free interest rate, maximum (percent) | 1.28% | ||
Black-Scholes option pricing model, expected term | 5 years 10 months 6 days | ||
Weighted-average fair value (in dollars per share) | $ 18.01 | ||
Unrecognized compensation expense | $ 62,833 | ||
Period for expected expense recognition | 1 year 7 months 6 days | ||
Stock options | One third of options vest on first anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights (percent) | 33.33% | ||
Stock options | Period after first anniversary for option vesting ratably on monthly basis | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 24 months | ||
Vesting rights (percent) | 66.67% | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights (percent) | 33.00% | ||
Unrecognized compensation expense | $ 142,391 | ||
Period for expected expense recognition | 1 year 6 months | ||
RSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years | ||
RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
2020 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 157,355 | 66,410 | |
2020 Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 40,100 | 17,207 | |
2020 Plan | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 107,867 | $ 49,203 |
Share-based Compensation - RK_2
Share-based Compensation - RKT Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Dec. 31, 2021 | |
Number of Stock Options | ||
Outstanding, beginning balance (in shares) | 0 | 25,981,429,000 |
Granted (in shares) | 26,393,381,000 | 49,020,000 |
Exercised (in shares) | 0 | 10,466,000 |
Expired (in shares) | 0 | 144,257,000 |
Forfeited (in shares) | 411,952,000 | 1,375,310,000 |
Outstanding, ending balance (in shares) | 25,981,429,000 | 24,500,416,000 |
Exercisable (in shares) | 0 | 10,995,518 |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 0 | $ 18.01 |
Granted (in dollars per share) | 18.01 | 16.98 |
Exercised (in dollars per share) | 0 | 18 |
Expired (in dollars per share) | 0 | 18 |
Forfeited (in dollars per share) | 18 | 18 |
Outstanding, ending balance (in dollars per share) | $ 18.01 | $ 18,010 |
Weighted Average Remaining Contractual Term | ||
Granted (years) | 9 years 7 months 6 days | |
Outstanding (years) | 9 years 7 months 6 days | 8 years 7 months 6 days |
Aggregate Intrinsic Value | ||
Granted | $ 59,246 | |
Exercised | $ 9 | |
Forfeited | 1,661 | 2,942 |
Outstanding | $ 57,585 | $ 54,634 |
Share-based Compensation - RK_3
Share-based Compensation - RKT Restricted Stock Unit Activity (Details) - RSUs - $ / shares | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Dec. 31, 2021 | |
Number of Units | ||
Outstanding, beginning balance (in units) | 0 | 16,322,380 |
Granted (in units) | 16,828,361 | 1,678,230 |
Vested (in units) | 76,007 | 3,276,242 |
Forfeited (in units) | 429,974 | 1,367,051 |
Outstanding, ending balance (in units) | 16,322,380 | 13,357,317 |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning balance (in dollars per share) | $ 0 | $ 18.03 |
Granted (in dollars per share) | 18.03 | 17.01 |
Vested (in dollars per share) | 18 | 18.02 |
Forfeited (in dollars per share) | 18 | 18.10 |
Outstanding, ending balance (in dollars per share) | $ 18.03 | $ 17.90 |
Weighted Average Remaining Service Period | ||
Granted (years) | 2 years 2 months 12 days | |
Outstanding (years) | 2 years 2 months 12 days | 1 year 2 months 12 days |
Share-based Compensation - Team
Share-based Compensation - Team Member Stock Purchase Plan (Details) - TMSPP | 12 Months Ended |
Dec. 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock authorized for issuance (shares) | 10,526,316 |
Percentage of gross pay eligible for utilization | 15.00% |
Percentage of closing market price for purchases | 85.00% |
Shares purchased during the year (shares) | 2,778,209 |
Share-based Compensation - Shar
Share-based Compensation - Share-based Compensation Expense RKT and RHI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 163,738 | $ 162,608 | $ 52,249 |
RKT-denominated awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 157,355 | 66,410 | |
RKT-denominated awards | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 40,100 | 17,207 | |
RKT-denominated awards | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 107,867 | 49,203 | |
RKT-denominated awards | Team Member Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 9,388 | 0 | |
RHI-denominated awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 5,413 | 96,001 | 52,000 |
RHI-denominated awards | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 32 | 425 |
RHI-denominated awards | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 5,413 | 69,548 | 39,029 |
RHI-denominated awards | Cash settled awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 | $ 26,421 | $ 12,546 |
Share-based Compensation - RHI
Share-based Compensation - RHI Awards Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2017 | |
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in units) | 16,828,361 | 1,678,230 | ||||
Vesting rights (percent) | 33.00% | |||||
Unvested awards outstanding | 0 | 16,322,380 | 13,357,317 | |||
RSUs | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 2 years | |||||
RSUs | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
RHI Plan | RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in units) | 125,000 | 1,076,433 | ||||
Award vesting period | 4 years | |||||
Unvested awards outstanding | 80,000 | 50,000 | 472,040 | |||
Unrecognized compensation expense | $ 9,222 | |||||
Accelerated expense | $ 38,371 | $ 29,433 | ||||
Number of RSUs modified and accelerated | 198,020 | 180,020 | ||||
RHI Plan | RSUs | Vesting immediately upon issuance | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights (percent) | 20.00% | |||||
RHI Plan | RSUs | Vesting immediately upon issuance | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights (percent) | 25.00% | |||||
RHI Plan | Cash settled awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unvested awards outstanding | 0 | |||||
RHI Plan | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unvested options outstanding | 0 |
Share-based Compensation - Equi
Share-based Compensation - Equity-Based and Cash-Settled Compensation Expense and Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 6 Months Ended | 12 Months Ended | 48 Months Ended | ||||
Mar. 01, 2022 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2025 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 163,738 | $ 162,608 | $ 52,249 | |||||
RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted (in units) | 16,828,361 | 1,678,230 | ||||||
Awards granted (in dollars per share) | $ 18.03 | $ 17.01 | ||||||
RHI Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 5,413 | 96,001 | 52,000 | |||||
RHI Plan | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 5,413 | $ 69,548 | $ 39,029 | |||||
Awards granted (in units) | 125,000 | 1,076,433 | ||||||
Award vesting period | 4 years | |||||||
Truebill Acquisition | Subsequent event | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted (in units) | 12,700,000 | |||||||
Awards granted (in dollars per share) | $ 13.11 | |||||||
Award vesting period | 4 years | |||||||
Truebill Acquisition | Forecast | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 53,030 | $ 167,100 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share Reconciliation | |||
Net income | $ 6,072,163 | $ 9,399,276 | $ 897,130 |
Net income attributable to non-controlling interest | (5,763,953) | (9,201,325) | (897,130) |
Net income attributable to Rocket Companies | 308,210 | 197,951 | $ 0 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 150 | 0 | |
Net income attributable to common shareholders | 308,360 | 197,951 | |
Numerator: | |||
Net income attributable to Class A common shareholders - basic | 308,360 | 197,951 | |
Add: Reallocation of net income attributable to dilutive impact of pro-forma conversion of Class D shares to Class A shares | 4,301,126 | 0 | |
Add: Reallocation of net income attributable to dilutive impact of share-based compensation awards | 10,948 | 7,092 | |
Weighted average shares of Class A common stock outstanding - basic | $ 4,620,434 | $ 205,043 | |
Denominator: | |||
Weighted average shares of Class A common stock outstanding - basic | 130,578,206 | 111,926,619 | |
Add: Dilutive impact of conversion of Class D shares to Class A shares | 1,853,804,962 | 0 | |
Add: Dilutive impact of share-based compensation awards | 5,050,399 | 4,311,874 | |
Earnings per share of Class A common stock outstanding - diluted | 1,989,433,567 | 116,238,493 | |
Earnings per share of Class A common stock outstanding - basic (in dollars per share) | $ 2.36 | $ 1.77 | |
Earnings per share of Class A common stock outstanding - diluted (in dollars per share) | $ 2.32 | $ 1.76 | |
Restricted stock units | |||
Numerator: | |||
Add: Reallocation of net income attributable to dilutive impact of share-based compensation awards | $ 10,660 | $ 6,683 | |
Denominator: | |||
Add: Dilutive impact of share-based compensation awards | 4,917,705 | 4,063,444 | |
Stock options | |||
Numerator: | |||
Add: Reallocation of net income attributable to dilutive impact of share-based compensation awards | $ 0 | $ 409 | |
Denominator: | |||
Add: Dilutive impact of share-based compensation awards | 0 | 248,430 | |
TMSPP | |||
Numerator: | |||
Add: Reallocation of net income attributable to dilutive impact of share-based compensation awards | $ 288 | $ 0 | |
Denominator: | |||
Add: Dilutive impact of share-based compensation awards | 132,694 | 0 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | 5 Months Ended |
Dec. 31, 2020shares | |
Holdings Units and corresponding Class D common stock | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities excluded from computation of diluted EPS | 1,872,476,780 |