Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 06, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-39645 | ||
Entity Registrant Name | GUILD HOLDINGS COMPANY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 85-2453154 | ||
Entity Address, Address Line One | 5887 Copley Drive | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92111 | ||
City Area Code | 858 | ||
Local Phone Number | 560-6330 | ||
Title of 12(b) Security | Class A common stock, $0.01 par value per share | ||
Trading Symbol | GHLD | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 135.9 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, relating to the registrant’s Annual Meeting of Stockholders to be held on May 3, 2023, are incorporated herein by reference for purposes of Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K. The definitive proxy statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year ended December 31, 2022. | ||
Entity Central Index Key | 0001821160 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 20,552,578 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 40,333,019 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Los Angeles, California |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 137,891 | $ 243,108 |
Restricted cash | 8,863 | 5,012 |
Mortgage loans held for sale | 845,775 | 2,204,216 |
Ginnie Mae loans subject to repurchase right | 650,179 | 728,978 |
Accounts and interest receivable | 58,304 | 68,359 |
Derivative assets | 3,120 | 27,961 |
Mortgage servicing rights, net | 1,139,539 | 675,340 |
Intangible assets, net | 33,075 | 41,025 |
Goodwill | 176,769 | 175,144 |
Other assets | 186,076 | 214,061 |
Total assets | 3,239,591 | 4,383,204 |
Liabilities and stockholders’ equity | ||
Warehouse lines of credit | 713,151 | 1,927,478 |
Notes payable | 126,250 | 250,227 |
Ginnie Mae loans subject to repurchase right | 650,179 | 729,260 |
Accounts payable and accrued expenses | 34,095 | 56,836 |
Accrued compensation and benefits | 29,597 | 75,079 |
Investor reserves | 16,094 | 18,437 |
Contingent liabilities due to acquisitions | 526 | 59,500 |
Derivative liabilities | 5,173 | 2,079 |
Operating lease liabilities | 85,977 | 97,836 |
Note due to related party | 530 | 2,614 |
Deferred compensation plan | 95,769 | 101,600 |
Deferred tax liabilities | 232,963 | 142,245 |
Total liabilities | 1,990,304 | 3,463,191 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 42,727 | 42,175 |
Retained earnings | 1,205,885 | 877,194 |
Non-controlling interest | 66 | 34 |
Total stockholders’ equity | 1,249,287 | 920,013 |
Total liabilities and stockholders’ equity | 3,239,591 | 4,383,204 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock | 206 | 207 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock | $ 403 | $ 403 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares, issued (in shares) | 0 | 0 |
Preferred stock, shares, outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares, issued (in shares) | 20,583,130 | 20,723,912 |
Common stock, shares, outstanding (in shares) | 20,583,130 | 20,723,912 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares, issued (in shares) | 40,333,019 | 40,333,019 |
Common stock, shares, outstanding (in shares) | 40,333,019 | 40,333,019 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||
Loan origination fees and gain on sale of loans, net | $ 703,674 | $ 1,480,516 |
Loan servicing and other fees | 223,403 | 194,759 |
Valuation adjustment of mortgage servicing rights | 217,551 | (101,572) |
Interest income | 68,144 | 64,110 |
Interest expense | (49,240) | (61,590) |
Other income, net | 1,289 | 87 |
Net revenue | 1,164,821 | 1,576,310 |
Expenses | ||
Salaries, incentive compensation and benefits | 619,185 | 1,019,790 |
General and administrative | 38,085 | 91,291 |
Occupancy, equipment and communication | 71,707 | 67,328 |
Depreciation and amortization | 15,525 | 11,488 |
Provision for (reversal of) foreclosure losses | 300 | (518) |
Total expenses | 744,802 | 1,189,379 |
Income before income tax expense | 420,019 | 386,931 |
Income tax expense | 91,389 | 103,149 |
Net income | 328,630 | 283,782 |
Net income attributable to non-controlling interest | 32 | 9 |
Net income attributable to Guild | $ 328,598 | $ 283,773 |
Net income per share attributable to Class A and Class B Common Stock: | ||
Basic (in dollars per share) | $ 5.39 | $ 4.69 |
Diluted (in dollars per share) | $ 5.35 | $ 4.67 |
Weighted average shares outstanding of Class A and Class B Common Stock: | ||
Basic (in shares) | 60,981 | 60,511 |
Diluted (in shares) | 61,379 | 60,825 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Non-controlling Interests |
Beginning balance (in shares) at Dec. 31, 2020 | 19,666,981 | 40,333,019 | ||||||
Beginning balance at Dec. 31, 2020 | $ 735,992 | $ 197 | $ 403 | $ 18,035 | $ 717,357 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock dividends | (121,057) | (121,057) | ||||||
Dividend equivalents on unvested restricted stock units, net of forfeitures | 0 | 2,879 | (2,879) | |||||
Issuance of Class A shares for acquisition of RMS (in shares) | 996,644 | |||||||
Issuance of Class A shares for acquisition of RMS | 15,289 | $ 10 | 15,279 | |||||
Stock-based compensation | 5,982 | 5,982 | ||||||
Vesting of restricted stock units (in shares) | 60,287 | |||||||
Non-controlling interest contributions | 25 | 25 | ||||||
Net income | 283,782 | 283,773 | 9 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 20,723,912 | 40,333,019 | 20,723,912 | 40,333,019 | ||||
Ending balance at Dec. 31, 2021 | 920,013 | $ 207 | $ 403 | 42,175 | 877,194 | 34 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 7,322 | 7,322 | ||||||
Dividend equivalents on unvested restricted stock units forfeited | 0 | (93) | 93 | |||||
Vesting of restricted stock units (in shares) | 520,142 | |||||||
Vesting of restricted stock units | 0 | $ 5 | (5) | |||||
Shares of Class A common stock withheld related to net share settlement (in shares) | (117,060) | |||||||
Shares of Class A common stock withheld related to net share settlement | (1,097) | $ (1) | (1,096) | |||||
Repurchase and retirement of Class A common stock (in shares) | (543,864) | |||||||
Repurchase and retirement of Class A common stock | (5,581) | $ (5) | (5,576) | |||||
Net income | 328,630 | 328,598 | 32 | |||||
Ending balance (in shares) at Dec. 31, 2022 | 20,583,130 | 40,333,019 | 20,583,130 | 40,333,019 | ||||
Ending balance at Dec. 31, 2022 | $ 1,249,287 | $ 206 | $ 403 | $ 42,727 | $ 1,205,885 | $ 66 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2021 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock dividends per share (in dollars per share) | $ 2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 328,630 | $ 283,782 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,525 | 11,488 |
Valuation adjustment of mortgage servicing rights | (217,551) | 101,572 |
Valuation adjustment of mortgage loans held for sale | 44,561 | 67,773 |
Unrealized loss on derivatives | 27,936 | 82,668 |
Amortization of right-of-use assets | 15,972 | 21,705 |
Provision for investor reserves | 6,876 | 10,089 |
Provision for (reversal of) foreclosure losses | 300 | (518) |
Valuation adjustment of contingent liabilities due to acquisitions | (45,075) | 4,957 |
Gain on sale of mortgage loans excluding fair value of other financial instruments, net | (528,243) | (1,289,465) |
Deferred income taxes | 90,718 | 36,644 |
Other | (6,171) | 4,473 |
Benefit from investor reserves | (9,219) | (7,694) |
Foreclosure loss reserve | (1,957) | (1,529) |
Stock-based compensation | 7,322 | 5,982 |
Changes in operating assets and liabilities: | ||
Origination of mortgage loans held for sale | (19,220,547) | (37,178,171) |
Proceeds on sale of and payments from mortgage loans held for sale | 21,062,670 | 39,029,444 |
Accounts and interest receivable | 12,288 | (21,819) |
Other assets | (5,172) | (19,457) |
Mortgage servicing rights | (246,648) | (325,099) |
Accounts payable and accrued expenses | (22,742) | 437 |
Accrued compensation and benefits | (45,482) | (42,862) |
Income taxes | 14,475 | (54,260) |
Contingent liability payments | (7,125) | (27,507) |
Operating lease liabilities | (16,008) | (18,839) |
Deferred compensation plan liability | 4,377 | 6,494 |
Real estate owned, net | (117) | 171 |
Net cash provided by operating activities | 1,259,593 | 680,459 |
Cash flows from investing activities | ||
Acquisition of business, net of cash acquired | (3,500) | (100,233) |
Proceeds from the sale of property and equipment | 183 | 178 |
Purchases of property and equipment | (3,861) | (4,605) |
Net cash used in investing activities | (7,178) | (104,660) |
Cash flows from financing activities | ||
Borrowings on warehouse lines of credit | 18,892,553 | 38,002,230 |
Repayments on warehouse lines of credit | (20,106,295) | (38,650,452) |
Borrowings on MSR notes payable | 20,000 | 108,500 |
Repayments on MSR notes payable | (143,750) | (4,250) |
Contingent liability payments | (7,300) | 0 |
Net change in notes payable | (2,311) | (2,308) |
Taxes paid related to net share settlement of equity awards | (1,097) | 0 |
Repurchases of Class A common stock | (5,581) | 0 |
Contribution from non-controlling interest | 0 | 25 |
Dividends paid | 0 | (121,057) |
Net cash used in financing activities | (1,353,781) | (667,312) |
Decrease in cash, cash equivalents and restricted cash | (101,366) | (91,513) |
Cash, cash equivalents and restricted cash, beginning of year | 248,120 | 339,633 |
Cash, cash equivalents and restricted cash, end of year | 146,754 | 248,120 |
Supplemental information | ||
Cash paid for interest, net | 30,218 | 46,326 |
Cash paid for income taxes, net of refunds | (14,028) | 120,748 |
Supplemental disclosure of non-cash investing activities: | ||
Measurement period adjustment to goodwill | $ (1,710) | $ 0 |
BUSINESS, BASIS OF PRESENTATION
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES | BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES Organization Guild Holdings Company, including its consolidated subsidiaries (collectively, “Guild” or the “Company”) was incorporated in Delaware on August 11, 2020 for the purpose of facilitating an initial public offering (“IPO”) of its Class A common stock and other related transactions in order to carry on the business of Guild Mortgage Company LLC (“GMC”) and its wholly owned subsidiaries. GMC was incorporated in California on August 10, 1960 and in October of 2020 was converted to a California limited liability company. On October 21, 2020 Guild completed its IPO. The Company originates, sells, and services residential mortgage loans. The Company operates approximately 270 branches with licenses in 49 states and the District of Columbia. The Company’s residential mortgage originations are generated in 49 states from two channels of business: retail and correspondent. For the year ended December 31, 2022 the channel production was as follows: retail 96.0% and correspondent 4.0%. For the year ended December 31, 2021, the channel production was as follows: retail 97.1% and correspondent 2.9%. The Company is certified with the United States Department of Housing and Urban Development (“HUD”) and the Department of Veterans Affairs (“VA”) and operates as a Federal Housing Administration (“FHA”) non-supervised lender. In addition, the Company is an approved issuer with the Government National Mortgage Association (“GNMA” or "Ginnie Mae"), as well as an approved seller and servicer with the Federal National Mortgage Association (“FNMA” or "Fannie Mae"), the Federal Home Loan Mortgage Corporation (“FHLMC” or "Freddie Mac") and the United States Department of Agriculture Rural Development (“USDA”). Properties securing the mortgage loans in the Company’s servicing portfolio are geographically dispersed throughout the United States; however, at December 31, 2022, approximately 13.0% of such properties were located in California, 10.3% were located in Washington, and 10.2% were located in Texas. At December 31, 2021, approximately 13.9% of such properties were located in California, 10.9% were located in Washington, and 10.3% were located in Texas. Similarly, loan production in California, Washington and Texas represented 10.8%, 10.5%, and 8.8%, respectively, of the Company’s total loan production in 2022. For the year ended December 31, 2021, California, Washington and Oregon represented 15.6%, 13.4%, and 8.8%, respectively, of the Company’s total loan production. Principles of Consolidation The Company's consolidated financial statements include the accounts of the Company, GMC, and their consolidated subsidiaries and those variable interest entities ("VIE") of which the Company is the primary beneficiary. Generally, a VIE is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. In determining whether the Company is the primary beneficiary of a VIE, the Company considers qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of the Company's investment; the obligation or likelihood for the Company or other investors to provide financial support; and the similarity with and significance to the Company's business activities and the business activities of the other investors. The Company consolidates one VIE. At December 31, 2022, the VIE had minimal assets and liabilities. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results could materially differ from those estimates. Revenue Recognition Loan origination fees and gain on sale of loans, net — loan origination fees and 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 the Company receives 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 mortgage 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 mortgage servicing rights (“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. 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 the Company has sold and retained the right to service. See Note 1 sections; Mortgage Loans Held for Sale, Mortgage Servicing Rights and Derivative Instruments, for more information related to fair value measurements of mortgage loans held for sale, the gain/(loss) on changes in the fair value of MSRs and the gain/(loss) on changes in the fair value of IRLCs, respectively. At December 31, 2022 and 2021, loan origination fees and gain on sale of loans were net of direct expenses of $138,254 and $252,302, respectively . Loan servicing and other fees — Loan servicing fees represent fees earned for servicing loans for various investors. The servicing fees are based on a contractual percentage of the outstanding principal balance and recognized into revenue as the related mortgage payments are received. Loan servicing expenses are charged to operations as incurred. Valuation adjustment of mortgage servicing rights — In accordance with Accounting Standards Codification (“ASC”) 860-50, the Company records MSRs as an asset, at fair value. The change in fair value is recorded within the Consolidated Statements of Income on a monthly basis. See Note 1, Mortgage Servicing Rights, for information related to the gain/(loss) on changes in the fair value of MSRs. Interest income — interest income includes interest earned on mortgage loans held for sale. Interest expense — interest expense includes interest paid to the Company’s loan funding facilities and MSR facilities. Cash, Cash Equivalents and Restricted Cash For cash flow purposes, the Company considers cash and temporary investments with original maturities of three months or less, to be cash and cash equivalents. The Company typically maintains cash in financial institutions in excess of Federal Deposit Insurance Corporation limits. The Company evaluates the creditworthiness of these financial institutions in determining the risk associated with these cash balances. The Company maintains cash balances that are restricted under the terms of its warehouse lines of credit. The following table summarizes the Company’s cash, cash equivalents and restricted cash at December 31, 2022 and 2021: 2022 2021 Cash and cash equivalents $ 137,891 $ 243,108 Restricted cash 8,863 5,012 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 146,754 $ 248,120 Mortgage Loans Held for Sale The Company measures newly originated prime residential mortgage loans held for sale (“MLHS”) at fair value in accordance with ASC 825, Financial Instruments . 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, which are recorded at fair value. The Company estimates fair value by evaluating a variety of market indicators, including recent trades and outstanding commitments, calculated on an individual loan basis and aggregated (see Note 2 — Fair Value Measurements). Changes in the fair value of mortgage loans are recognized in current period income and are included in loan origination fees and gain on sale of loans, net. Fair value for mortgage loans covered by investor commitments is based on commitment prices. Fair value for uncommitted loans is based on current delivery prices. In accordance with ASC 825-10, the Company immediately recognizes loan origination fees, net of direct loan origination costs associated with these loans. Loans are considered sold when the Company surrenders control over the financial assets. Control is considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through an agreement that both entitles and obligates the Company to repurchase or redeem the transferred assets before their maturity. The Company typically considers the above criteria to have been met upon acceptance and receipt of sales proceeds from the purchaser. Ginnie Mae Loans Subject to Repurchase Right In accordance with ASC 860-50, Transfers and Servicing — Servicing Assets and Liabilities (“ASC 860-50”), certain loans, as defined by the servicer guidelines, serviced by the Company on behalf of GNMA are recognized as an asset, and carried at the unpaid principal balance (“UPB”) of the loans. The Company has a right to repurchase any loans serviced on behalf of GNMA that are three or more consecutive payments delinquent (“GNMA Loan Inventory”). The Company recognizes a corresponding liability (“GNMA Loan Payable”) which is recorded at the unpaid principal balance, for loans in which the Company has not exercised the right to repurchase the loans. If the loan goes through foreclosure and is an FHA loan, HUD acts as the insurer for GNMA and reimburses the servicer for the UPB plus allowable interest and foreclosure fees. The Company reserves for unreimbursed interest and fees as part of the general foreclosure reserve. If the loan goes through foreclosure and is a VA loan, the VA acts as the insurer and reimburses the Company based on the net value of the underlying property. At the amount determined by the VA, the Company accounts for any loss on VA loans in its foreclosure loss reserve to a certain threshold with any excess charged to its investor reserves. If a foreclosure sale has been held on an FHA loan, the deed is transferred to the Company and the loan becomes a GNMA real estate owned (“REO”). These are foreclosed real estate properties securing GNMA loans. Both principal and interest for government insured/guaranteed loans secured by the foreclosed real estate properties are collectible because the loans are insured by the FHA or guaranteed by the VA. The GNMA Loan Inventory and real estate owned is equal, and offsetting, to the GNMA Loan Payable. Mortgage Servicing Rights Mortgage servicing rights are recognized as assets in the Consolidated Balance Sheet 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. To determine the fair value of the servicing right when created, the Company uses a valuation model that calculates the present value of future cash flows. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, including estimates of contractual service fees, ancillary income and late fees, the cost of servicing, the discount rate, float value, the inflation rate, estimated prepayment speeds, and default rates. Derivative Instruments The Company enters into IRLCs, forward commitments to sell mortgage loans and to be announced mortgage-backed securities 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. The Company enters into IRLCs to originate residential mortgage loans at specified interest rates and within a specified period of time, with customers who have applied for a loan and meet certain credit and underwriting criteria. IRLCs on mortgage loans in process that have not closed, but are intended to be sold, are considered to be derivatives and changes in fair value are recorded in the Consolidated Statements of Income as part of loan origination fees and gain on sale of loans, net. Fair value is based upon changes in the fair value of the underlying mortgages, estimated to be realizable upon sale into the secondary market, net of estimated incentive compensation expenses. Fair value estimates also consider loan commitments not expected to be exercised by customers for unforeseen reasons, commonly referred to as fallout. 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 enters into derivative loan instruments such as forward loan sales commitments, mandatory delivery commitments, options and futures contracts. Management expects the changes in the fair value of these derivatives to have a negative correlation to the changes in fair value of the derivative loan commitments and mortgage loans held for sale, thereby reducing earnings volatility. The changes in fair value are recorded in the Consolidated Statements of Income as part of loan origination fees and gain on sale of loans, net. The Company considers various factors and strategies in determining the portion of the mortgage pipeline and loans held for sale it wants to economically hedge. Forward commitments include to be announced 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. See Notes 2 and 6 for additional information. Property and Equipment Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset, usually three years. Leasehold improvements are amortized using the straight-line method over the shorter of the term of the related lease or the estimated useful life. The Company recognizes internal-use software within property and equipment which consists of both internal and external costs incurred in the development, testing and implementation directly related to the new software. The internal-use software is amortized over a three-year period and begins amortization upon the “go-live” date of the software. The Company determines the “go-live” date as the date in which the software is readily available to be used companywide. Acquisitions When making an acquisition, the Company recognizes separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values under ASC 805, Business Combinations ("ASC 805"). Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and actual results may differ from expectations. The Company may record measurement period adjustments during the measurement period (one year from the acquisition date) that result from obtaining additional information about the facts and circumstances that existed as of the acquisition date. If this additional information had been known, it would have affected the accounting for the business combination as of the acquisition date. Accounting for business combinations requires the Company’s management to make estimates and assumptions, especially at the acquisition date with respect to mortgage servicing rights and contingent considerations. Although the Company believes the assumptions and estimates it has made in the past have been reasonable and appropriate, they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Intangible Assets Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives in a manner that best reflects their economic benefit. All intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. Goodwill Goodwill is recorded at fair value and is tested for potential impairment at least annually. The Company performs its annual goodwill impairment analysis as of October 1 or more frequently if events and circumstances indicate that the carrying value may not be recoverable. The Company’s goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. Qualitative factors include, among other things, macroeconomic conditions, industry and market considerations, financial performance of the respective reporting unit and other relevant entity and reporting-unit specific considerations. If it is determined, based on qualitative factors, that the fair value of the reporting unit may be more likely than not less than the carrying amount, or if significant adverse changes in the Company's future financial performance occur that could materially impact fair value, a quantitative goodwill impairment test would be required. A quantitative assessment for impairment requires the Company to use significant judgment and estimates, including, but not limited to, estimates of future cash flows, revenue growth rates, operating margins, and a discount rate. Such estimates are based upon assumptions which are inherently uncertain and unpredictable. The fair value of goodwill is determined by assigning the fair value of the reporting unit to all the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination. If the fair value is less than the carrying value, the amount of impairment expense is equal to the difference between the reporting unit’s fair value and the reporting unit’s carrying value. See Note 10 – Goodwill and Intangibles for further information. Contingent Liabilities due to Acquisitions The Company may be required to pay future consideration to the former shareholders of acquired companies, depending upon the terms of the applicable purchase agreement, which is contingent upon the achievement of certain financial and operating targets. The Company determines the fair value for its contingent consideration obligations using an income approach whereby the Company forecasts the cash outflows related to the earn-outs, which are based on a percentage of net income specified in the purchase agreements. The Company then discounts these expected payment amounts to calculate the fair value as of the valuation date. The Company’s management evaluates the underlying projections used in determining fair value each period and makes updates to these underlying projections when there have been significant changes in management’s expectations of the future business performance. The principal significant unobservable input used in the valuations of the Company’s contingent consideration obligations is a risk-adjusted discount rate. Whereas management’s underlying projections adjust for market penetration and other economic expectations, the discount rate is risk-adjusted for key factors such as uncertainty in the mortgage banking industry due to its reliance on external influences (interest rates, regulatory changes, etc.), upfront payments, and credit risk. An increase in the discount rate will result in a decrease in the fair value of contingent consideration. Conversely, a decrease in the discount rate will result in an increase in the fair value of contingent consideration. At each reporting date, or whenever there are significant changes in underlying key assumptions, a review of these assumptions is performed and the contingent consideration liability is updated to its estimated fair value. If there are no significant changes in the assumptions, the quarterly determination of the fair value of contingent consideration reflects the implied interest for the passage of time. Changes in the estimated fair value of the contingent consideration obligations may result from changes in the terms of the contingent payments, changes in discount periods and rates and changes in probability assumptions with respect to the timing and likelihood of achieving the certain financial targets. Actual progress toward achieving the financial targets for the remaining measurement periods may be different than the Company’s expectations of future performance. The change in the estimated fair value of contingent consideration is included in general and administrative expense in the Consolidated Statements of Income. Leases The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The Company also considers whether its service arrangements include the right to control the use of an asset. If an arrangement is determined to be a lease, the Company recognizes a right-of-use ("ROU") asset and a corresponding operating lease liability in its Consolidated Balance Sheet based on the present value of lease payments over the expected lease term, except leases with initial terms of 12 months or less. Lease payments may include fixed rent escalation clauses or payments that depend on an index or a rate (such as the consumer price index) measured using the index or applicable rate at lease commencement. Subsequent changes in the index or rate and any other variable payments, such as market-rate base rent adjustments, are recognized as variable lease expense in the period incurred. To determine the present value of lease payments, the Company uses its incremental borrowing rate, as the leases generally do not have a readily determinable implicit discount rate. The Company applies judgement in assessing factors such as Company-specific credit risk, lease term, nature and quality of the underlying collateral and the economic environment in determining the lease-specific incremental borrowing rate. The ROU assets are also adjusted for any initial direct costs incurred and lease payments made at or before the commencement date and are reduced by lease incentives. The Company’s leases generally include a non-lease component representing additional services transferred to the Company, such as common area maintenance for real estate. The Company accounts for lease and non-lease components in its contracts as a single lease component for all asset classes. The non-lease components are usually variable in nature and recorded in variable lease expense in the period incurred. The Company recognizes lease expense on a straight-line basis excluding short-term and variable lease payments which are recognized as incurred. Short-term lease cost represents payments for leases with a lease term of 12 months or less, excluding leases with a term of one month or less. Real Estate Owned There are two types of REO properties held by the Company. The first is considered a traditional REO where the Company owns, markets, and sells the property. At the time of foreclosure, other real estate owned is recorded at the asset’s fair value less selling costs, which becomes the property’s new basis. After foreclosure, these assets are carried at the lower of their new cost basis or fair value less selling costs. Costs incurred in maintaining foreclosed real estate and subsequent write-downs to reflect declines in the fair value of the property are expensed as incurred. At December 31, 2022 and 2021, the Company had $0.3 million and $0.2 million of traditional REOs, respectively. The second type is foreclosed real estate securing GNMA loans in process of conveyance to HUD but insured by the FHA, where the Company is the controller of the deed for a period of time. For GNMA loans, the property becomes REO if not sold to a third party at its foreclosure sale. Both principal and debenture rate interest for government insured loans secured by the foreclosed real estate are collectible because the loans are insured by the FHA. This is valued at the UPB of the loan, which is considered to be fair value, as HUD reimburses the Company for the UPB plus debenture rate interest and fees. The Company reserves for unreimbursed interest in excess of the debenture rate and fees as part of the foreclosure loss reserve. REO property valued at $0.3 million at December 31, 2021 was conveyed to HUD during 2022 and the Company held no such REO property at December 31, 2022. Investor Reserves The Company has exposure to potential mortgage loan repurchases and indemnifications in its capacity as a loan originator and servicer. The estimation of the liability for probable losses related to the repurchase and indemnification obligation considers an estimate of probable future repurchase or indemnification obligations from breaches of representations and warranties. The liability related to specific non-performing loans is based on a loan-level analysis considering the current collateral value, estimated sales proceeds and selling costs. The liability related to probable future repurchase or indemnification obligations is segregated by year of origination and considers the amount of unresolved repurchase and indemnification requests, as well as an estimate of future repurchase demands. Future repurchase demands are estimated based upon recent and historical repurchase and indemnification experience, as well as the success rate in appealing repurchase requests and an estimated loss severity, based on current loss rates for similar loans. The Company also has exposure to early payment defaults (“EPD”) and/or early payoff fees (“EPO”). When the Company sells a loan to an investor and the loan either pays off or goes into default within a certain timeframe, the Company could be exposed to EPD and/or EPO fees in accordance with each investor’s contract. The Company reserves for these fees by estimating early payment defaults and fees based on prior loan activity and current loan origination volume. Foreclosure Loss Reserve and Provision for Foreclosure Losses The Company has exposure for losses associated with government loans in foreclosure related to nonrefundable interest and foreclosure servicing costs. The Company maintains a reserve for government loans currently in foreclosure based on historical loss experience. The Company also accrues for any additional known losses above the current loss per loan; for example, losses due to servicer delays. Advertising Advertising is expensed as incurred and amounted to $11.4 million and $12.9 million for the years ended December 31, 2022 and 2021, respectively, and is included within general and administrative expenses in the Consolidated Statements of Income. Stock-Based Compensation Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair value of restricted stock units (“RSUs”) is based on the value of the Company’s common stock on the date of grant. The Company accounts for forfeitures as they occur and reverses previously recognized expense for the unvested portion of the forfeited shares. Stock-based compensation is included in salaries, incentive compensation and benefits in the Consolidated Statements of Income. See Note 16 for additional information. Earnings Per Share The Company determines earnings per share in accordance with the authoritative guidance in ASC Topic 260, Earnings Per Share . Basic earnings per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period using the two-class method. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to assume the issuance of potentially dilutive shares using the treasury stock method, unless the effect of such increase would be anti-dilutive. Under the treasury stock method, the average amount of compensation cost for future service that the Company has not yet recognized is assumed to be used to repurchase shares. Common Stock Cash Dividend The Company declared and paid dividends of $2.00 per share on its Class A and Class B common stock during 2021 totaling $121.1 million. Non-vested RSUs under the 2020 Omnibus Incentive Plan have rights to dividends, which entitle holders to the same dividend value per share as holders of shares of Class A common stock in the form of dividend equivalent units ("DEUs"). DEUs will be credited as additional RSUs on the dividend payment date and will vest on the same date as the underlying RSUs and are forfeited if the underlying RSUs forfeit prior to vesting. The number of additional RSUs credited will equal (1) the per share cash dividend amount, multiplied by (2) the number of RSUs, divided by (3) the fair market value of a share of Class A common stock on the last trading day before the date of the dividend payment, rounded up to the nearest whole number of RSUs. In conjunction with the payment of Guild's dividends, Guild issued 193,130 DEUs to holders of RSUs. Since the DEUs are forfeitable, the value of the DEUs was recorded as a reduction to retained earnings and a credit to additional paid-in capital in the Consolidated Balance Sheets. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more-likely than-not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and records penalties as a component of income taxes. Escrow and Fiduciary Funds As a loan servicer, the Company maintains segregated ban |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The categorization of assets and liabilities measured at fair value within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to measure fair value are as follows: • Level One - Level One inputs are unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level Two - Level Two inputs are observable for that asset or liability, either directly or indirectly, and include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, observable inputs for the asset or liability other than quoted prices and inputs derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified contractual term, the inputs must be observable for substantially the full term of the asset or liability. • Level Three - Level Three inputs are unobservable inputs for the asset or liability that reflect the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and are developed based on the best information available. The Company updates the valuation of each instrument recorded at fair value on a monthly or quarterly basis, evaluating all available observable information, which may include current market prices or bids, recent trade activity, changes in the levels of market activity and benchmarking of industry data. The assessment also includes consideration of identifying the valuation approach that would be used currently by market participants. If it is determined that a change in valuation technique or its application is appropriate, or if there are other changes in availability of observable data or market activity, the current methodology will be analyzed to determine if a transfer between levels of the valuation hierarchy is appropriate. Such reclassifications are reported as transfers into or out of a level as of the beginning of the quarter that the change occurs. Fair value is based on quoted market prices, when available. If quoted prices are not available, fair value is estimated based upon other observable inputs. Unobservable inputs are used when observable inputs are not available and are based upon judgments and assumptions, which are the Company’s assessment of the assumptions market participants would use in pricing the asset or liability. These inputs may include assumptions about risk, counterparty credit quality, the Company’s creditworthiness and liquidity and are developed based on the best information available. When a determination is made to classify an asset or liability within Level Three of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement of the asset or liability. The fair value of assets and liabilities classified within Level Three of the valuation hierarchy also typically includes observable factors and the realized or unrealized gain or loss recorded from the valuation of these instruments would also include amounts determined by observable factors. Recurring Fair Value Measurements The Company’s fair value measurements are evaluated within the fair value hierarchy, based on the nature of the inputs used to determine the fair value at the measurement date. At December 31, 2022 and 2021, the Company had the following assets and liabilities that are measured at fair value on a recurring basis: Trading Securities — Trading securities are classified within Level One of the valuation hierarchy. Valuation is based upon quoted prices for identical instruments traded in active markets. Level One trading securities include securities traded on active exchange markets, such as the New York Stock Exchange. Trading securities are included within other assets in the Consolidated Balance Sheets. Derivative Instruments — Derivative instruments are classified within Level Two and Level Three of the valuation hierarchy, and include the following: Interest Rate Lock Commitments — IRLCs are classified within Level Three of the valuation hierarchy. IRLCs represent an agreement to extend credit to a mortgage loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to funding. The fair value of IRLCs is based upon the estimated fair value of the underlying mortgage loan, including the expected net future cash flows related to servicing the mortgage loan, net of estimated incentive compensation expenses, and adjusted for: (i) estimated costs to complete and originate the loan and (ii) an adjustment to reflect the estimated percentage of IRLCs that will result in a closed mortgage loan under the original terms of the agreement (pull-through rate). The pull-through rate is considered a significant unobservable input and is estimated based on changes in pricing and actual borrower behavior using a historical analysis of loan closing and fallout data. The average pull-through rate used to calculate the fair value of IRLCs as of December 31, 2022 and 2021, was 93.4% and 91.5%, respectively. On a quarterly basis, actual loan pull-through rates are compared to the modeled estimates to confirm the assumptions are reflective of current trends. Generally, a change in interest rates is accompanied by a directionally opposite change in the assumption used for the pull-through percentage, and the impact to fair value of a change in pull-through would be partially offset by the related change in price. Forward Delivery Commitments — Forward delivery commitments are classified within Level Two of the valuation hierarchy. Forward delivery commitments fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. The fair value of forward delivery commitments is primarily based upon the current agency mortgage-backed security market to-be-announced pricing specific to the loan program, delivery coupon and delivery date of the trade. Best efforts sales commitments are also entered into for certain loans at the time the borrower commitment is made. These best-efforts sales commitments are valued using the committed price to the counterparty against the current market price of the IRLC or mortgage loan held for sale. Option contracts are a type of forward commitment that represents the rights to buy or sell mortgage-backed securities at specified prices in the future. Their value is based upon the underlying current to-be-announced pricing of the agency mortgage-backed security market, and market-based volatility. See Note 6 for additional information on the derivative instruments. Mortgage Loans Held for Sale — MLHS are carried at fair value. The fair value of MLHS is based on secondary market pricing for loans with similar characteristics, and as such, is classified as a Level Two measurement. Fair value is estimated through a market approach by using either: (i) the fair value 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 servicing rights and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. The agency mortgage-backed security market is a highly liquid and active secondary market for conforming conventional loans whereby quoted prices exist for securities at the pass-through level and are published on a regular basis. The Company has the ability to access this market and it is the market into which conforming mortgage loans are typically sold. Mortgage Servicing Rights — MSRs are classified within Level Three of the valuation hierarchy due to the use of significant unobservable inputs and the lack of an active market for such assets. The fair value of MSRs is estimated based upon projections of expected future cash flows considering prepayment estimates, the Company’s historical prepayment rates, portfolio characteristics, interest rates based on interest rate yield curves, implied volatility, costs to service and other economic factors. The Company obtains valuations from an independent third party on a monthly basis, and records an adjustment based on this third-party valuation. See Note 7 for additional information on the Company's MSRs. Investment in Warrants — The Company was a party to a joint marketing agreement with a private independent insurance carrier whereby the Company marketed their products and submitted leads for borrowers needing insurance. In connection with satisfying the conditions set forth under such agreement, the Company received warrants that may be exercised to purchase shares of common stock of the private company. The Company’s equity investment in the warrants is carried at its estimated fair value, which was determined using the price per share paid by an investor in an equity sale transaction completed by the private company, resulting in a Level Three classification. The warrants are exercisable until June 2025. The Company’s investment in the warrants will be revalued at each balance sheet date with changes in the fair value reported in other income, net in the Consolidated Statements of Income each reporting period. The Company's investment in warrants is included within other assets in the Consolidated Balance Sheets. Contingent Liabilities due to acquisitions — Contingent liabilities represent future obligations of the Company to make payments to the former owners of its acquired companies. The Company determines the fair value of its contingent liabilities using a discounted cash flow approach whereby the Company forecasts the cash outflows related to the future payments, which are based on a percentage of net income specified in the purchase agreements. The Company then discounts these expected payment amounts to calculate the present value, or fair value, as of the valuation date. The Company’s management evaluates the underlying projections used in determining fair value each period and makes updates to these underlying projections. The Company uses a risk-adjusted discount rate to value the contingent liabilities which is considered a significant unobservable input, and as such, the liabilities are classified as a Level Three measurement. Management’s underlying projections adjust for market penetration and other economic expectations, and the discount rate is risk-adjusted for key factors such as uncertainty in the mortgage banking industry due to its reliance on external influences (interest rates, regulatory changes, etc.), upfront payments, and credit risk. An increase in the discount rate will result in a decrease in the fair value of the contingent liabilities. Conversely, a decrease in the discount rate will result in an increase in the fair value of the contingent liabilities. At December 31, 2022 and 2021, the range of the risk adjusted discount rate was 14.5% - 25.0% , with a median of 15.0%, and 15.0% - 19.5%, with a median of 19.1%, respectively. Adjustments to the fair value of the contingent liabilities (other than payments) are recorded as a gain or loss and are included within general and administrative expenses in the Consolidated Statements of Income. The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 96 $ — $ — $ 96 Derivative Forward delivery commitments — 1,602 — 1,602 Interest rate lock commitments — — 1,518 1,518 Mortgage loans held for sale — 845,775 — 845,775 Mortgage servicing rights — — 1,139,539 1,139,539 Investment in warrants 961 961 Total assets at fair value $ 96 $ 847,377 $ 1,142,018 $ 1,989,491 Liabilities: Derivative Forward commitments and best efforts sales commitments $ — $ 5,173 $ — $ 5,173 Contingent liabilities due to acquisitions — — 526 526 Total liabilities at fair value $ — $ 5,173 $ 526 $ 5,699 The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2021: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 107 $ — $ — $ 107 Derivative Forward delivery commitments — 5,842 — 5,842 Interest rate lock commitments — — 22,119 22,119 Mortgage loans held for sale — 2,204,216 — 2,204,216 Mortgage servicing rights — — 675,340 675,340 Total assets at fair value $ 107 $ 2,210,058 $ 697,459 $ 2,907,624 Liabilities: Derivative Forward delivery commitments $ — $ 2,079 $ — $ 2,079 Contingent liabilities due to acquisitions — — 59,500 59,500 Total liabilities at fair value $ — $ 2,079 $ 59,500 $ 61,579 The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the years ended: IRLCs Contingent Balance at December 31, 2020 $ 130,338 $ 18,094 Net transfers and revaluation losses (108,219) — Payments — (27,507) Additions — 63,956 Valuation adjustments — 4,957 Balance at December 31, 2021 $ 22,119 $ 59,500 Net transfers and revaluation losses (20,601) — Payments — (14,425) Additions — 526 Valuation adjustments — (45,075) Balance at December 31, 2022 $ 1,518 $ 526 Changes in the availability of observable inputs may result in reclassifications of certain assets or liabilities. Such reclassifications are reported as transfers in or out of Level Three as of the beginning of the period that the change occurs. There were no transfers between fair value levels during the years ended December 31, 2022 and 2021. Non-Recurring Fair Value Measurements Certain assets and liabilities that are not typically measured at fair value on a recurring basis may be subject to fair value measurement requirements under certain circumstances. These adjustments to fair value usually result from write-downs of individual assets. At December 31, 2022 and 2021, the Company had the following financial assets measured at fair value on a non-recurring basis: Ginnie Mae Loans subject to Repurchase Right — GNMA securitization programs allow servicers to buy back individual delinquent mortgage loans from the securitized loan pool once certain conditions are met. If a borrower makes no payment for three consecutive months, the servicer has the option to repurchase the delinquent loan for an amount equal to 100% of the loan’s remaining principal balance. Under ASC 860, Transfers and Servicing , this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. The Company records these assets and liabilities at their fair value, which is determined to be the remaining UPB. The Company’s future expected realizable cash flows are the cash payments of the remaining UPB whether paid by the borrower or reimbursed through a claim filed with HUD. The Company considers the fair value of these assets and liabilities to fall into the Level Two bucket in the valuation hierarchy due to the assets and liabilities having specified contractual terms and the inputs are observable for substantially the full term of the assets' and liabilities' lives. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2022: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 650,179 $ — $ 650,179 Total assets at fair value $ — $ 650,179 $ — $ 650,179 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 650,179 $ — $ 650,179 Total liabilities at fair value $ — $ 650,179 $ — $ 650,179 The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2021: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 728,978 $ — $ 728,978 Total assets at fair value $ — $ 728,978 $ — $ 728,978 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 729,260 $ — $ 729,260 Total liabilities at fair value $ — $ 729,260 $ — $ 729,260 Fair Value Option The following is the estimated fair value and UPB of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects their expected future economic performance: Fair Value Principal Difference (1) Balance at December 31, 2022 $ 845,775 $ 868,833 $ (23,058) Balance at December 31, 2021 $ 2,204,216 $ 2,184,326 $ 19,890 _______________________________ (1) Represents the amount of gains (losses) included in loan origination fees and gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | ACQUISITIONS Inlanta Mortgage, Inc. On December 12, 2022, the Company acquired certain assets of Inlanta Mortgage, Inc. (“Inlanta”) under the terms of an asset purchase agreement to expand the Company’s operations in the Midwest region. The total fair value of consideration transferred was $4.0 million, which consisted of $3.5 million of cash and the fair value of contingent consideration of $0.5 million. Inlanta is entitled to earn-out payments based on certain performance criteria for three years. The fair value of the earn-out payments on the acquisition date was zero. The earn-out payments are subject to a clawback amount during the three-year earn-out period. Inlanta is also entitled to a one-time volume override cash payment due in 2024, which was valued at $0.5 million on the acquisition date. The acquisition has been accounted for as a business combination, under which the total purchase price is allocated to the net tangible and intangible assets and liabilities of Inlanta acquired in connection with the acquisition based on their preliminary fair values and are subject to change during the measurement period. Of the $4.0 million purchase price, we allocated $0.7 million to net assets and $3.3 million to goodwill. The goodwill resulting from the purchase price allocation reflects the expected synergistic benefits of expanding the Company's geographic locations and the existing workforce. The acquired goodwill was allocated to the Origination segment and is deductible for tax purposes. The results of Inlanta are included in the Company’s consolidated financial statements since the date of the acquisition and did not have a material impact on the Company’s consolidated financial statements and related disclosures. Transaction costs associated with this transaction were not material and were expensed as incurred within general and administrative expenses in the Consolidated Statements of Income. Residential Mortgage Services Holdings, Inc. On July 1, 2021, the Company completed the acquisition of Residential Mortgage Services Holdings, Inc. ("RMS"). RMS is an independent retail mortgage lender focused in the Northeast. This strategic acquisition expanded Guild’s presence in this region and added experienced loan officers to Guild’s sales force. The acquisition was accounted for in accordance with ASC 805, whereby the purchase price paid was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed from RMS based on their estimated fair values as of the closing date. Total consideration for the acquisition was approximately $265.0 million. The acquisition was financed with a combination of $185.8 million in cash and the issuance of 996,644 shares of the Company’s Class A common stock. Additionally, RMS shareholders are entitled to contingent consideration based on net income from RMS branch locations for three years following June 1, 2021. These contingent consideration payments will be calculated and paid based on rolling 12-month periods commencing as of June 1, 2021 and ending on the first anniversary of such date, and thereafter on consecutive 12-month periods. The fair value of the contingent consideration payments on the acquisition date was $64.0 million and was determined utilizing a Monte Carlo model based on estimated future revenues and volatility factors, among other variables and estimates, and has no maximum payment. The contingent consideration payments to the RMS shareholders are not capped; therefore there is no predetermined upper bound to the undiscounted range and an estimate of the range of outcomes cannot be estimated. Goodwill was primarily attributable to the assembled workforce and future growth expected after the acquisition date and will not be deductible for income tax purposes. Goodwill recognized was assigned to the Company's Origination segment. Transaction costs associated with the RMS acquisition were approximately $5.2 million and were expensed as incurred within general and administrative expenses in the Consolidated Statements of Income. Measurement period adjustments were recorded in the second quarter of 2022 and resulted in an immaterial decrease to goodwill and increase to income tax receivable (see Note 10). The following summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date, including measurement period adjustments: Purchase price: Cash paid at closing of the transaction $ 185,786 Fair value of Class A common stock issued 15,289 Estimated fair value of contingent consideration 63,956 Total purchase price 265,031 Fair value of assets acquired: Cash, cash equivalents and restricted cash 85,559 Mortgage loans held for sale 465,020 Acquired intangible assets 45,000 Right-of-use assets 11,855 Other 36,923 Total assets acquired 644,357 Fair value of liabilities assumed: Warehouse lines of credit 431,175 Accounts payable and accrued expenses 26,960 Operating lease liabilities 12,959 Deferred taxes 16,231 Other 2,601 Total liabilities assumed 489,926 Fair value of net identifiable assets acquired 154,431 Goodwill $ 110,600 The fair value of the Company's Class A common stock issued was determined based on the closing market price of the Company's common shares on June 30, 2021, the last price prior to the close of the acquisition. The identifiable intangible assets of $45.0 million are subject to amortization. The following table summarizes the major classes of acquired intangible assets and their respective estimated fair values and estimated useful lives: Estimated Fair Value Estimated Useful Life (Years) Acquired intangible assets: Referral network $ 42,300 6 Non-compete agreements 2,700 3 Total acquired intangible assets $ 45,000 RMS' net revenues were $104.6 million and net income was $12.8 million from the date of the acquisition through December 31, 2021. The acquisition of RMS has been fully integrated with the Company's existing operations; therefore, revenues and net income are not available for the year ended December 31, 2022. The following table presents the unaudited pro forma information assuming the acquisition of RMS occurred on January 1, 2021. The unaudited pro forma results reflect after-tax adjustments for amortization of acquired intangible assets and other immaterial adjustments for the effects of purchase accounting. The unaudited pro forma information is presented for information purposes only, and is not necessarily indicative of future operations or results had the acquisition been completed as of January 1, 2021: Year Ended December 31, 2021 Net revenues $ 1,721,597 Net income $ 307,854 The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma net revenues and net income. |
ACCOUNTS AND INTEREST RECEIVABL
ACCOUNTS AND INTEREST RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
ACCOUNTS AND INTEREST RECEIVABLE | ACCOUNTS AND INTEREST RECEIVABLE Accounts and interest receivable consisted of the following at December 31, 2022 and 2021: 2022 2021 Trust advances $ 44,164 $ 43,660 Foreclosure advances, net 12,320 19,311 Receivables related to loan sales 562 3,043 Other 1,258 2,345 Total accounts and interest receivable $ 58,304 $ 68,359 Management has established a foreclosure reserve for estimated uncollectible balances of the foreclosure and trust advances. Management believes that substantially all other accounts and interest receivable amounts are collectible and, accordingly, no allowance for doubtful accounts is necessary. The activity of the foreclosure loss reserve was as follows for the years ended December 31, 2022 and 2021: 2022 2021 Balance — beginning of year $ 10,355 $ 12,402 Utilization of foreclosure reserve (1,957) (1,529) Provision for (reversal of) foreclosure losses 300 (518) Balance — end of year $ 8,698 $ 10,355 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consisted of the following at December 31, 2022 and 2021: 2022 2021 Prepaid expenses $ 31,499 $ 32,900 Company owned life insurance 37,871 38,824 Property and equipment, net 12,118 15,834 Right-of-use assets 74,660 86,484 Income tax receivable 26,531 39,295 Real estate owned 306 471 Land 2,034 146 Trading securities 96 107 Investment in warrants 961 — Total other assets $ 186,076 $ 214,061 Property and equipment, net consisted of the following at December 31, 2022 and 2021: 2022 2021 Computer equipment $ 29,447 $ 30,355 Furniture and equipment 25,072 25,833 Leasehold improvements 18,713 16,214 Internal-use software in production 772 1,548 Internal-use software 10,357 8,557 Property and equipment, gross 84,361 82,507 Accumulated depreciation (72,243) (66,673) Property and equipment, net $ 12,118 $ 15,834 Depreciation and amortization expense for property and equipment was $7.6 million and $7.5 million for the years ended December 31, 2022 and 2021, respectively. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
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. The Company’s derivative instruments are not designated as hedging instruments for accounting purposes; therefore, changes in fair value are recognized in current period earnings. Realized and unrealized gains and losses from the Company's non-designated derivative instruments are included in loan origination fees and gain on sale of loans, net in the Consolidated Statements of Income. Changes in the fair value of the Company's derivative financial instruments are as follows for the years ended December 31, 2022 and 2021: 2022 2021 Unrealized hedging losses $ (27,936) $ (82,668) Notional and Fair Value The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows at December 31, 2022 and 2021: Fair Value Notional Derivative Derivative Balance at December 31, 2022 IRLCs $ 810,514 $ 1,518 $ — Forward delivery commitments and best efforts sales commitments $ 1,127,154 $ 1,602 $ 5,173 Balance at December 31, 2021 IRLCs $ 2,388,097 $ 22,119 $ — Forward delivery commitments and best efforts sales commitments $ 3,217,162 $ 5,842 $ 2,079 The Company had an additional $256.3 million and $654.0 million of outstanding forward contracts and mandatory sell commitments, comprised of closed loans with equal and offsetting UPB amounts allocated to them, at December 31, 2022 and 2021, respectively. The Company also had $470.8 million and $767.5 million in closed hedge instruments not yet settled at December 31, 2022 and 2021, respectively. See Note 2 for fair value disclosure of the derivative instruments. The following table presents the quantitative information about IRLCs and the fair value measurements as of December 31, 2022 and 2021: 2022 2021 Unobservable Input Range (Weighted Average) Loan funding probability (“pull-through”) 0% -100% (93.4%) 0% - 100% (91.5%) Counterparty agreements for forward commitments contain master netting agreements. The master netting agreements contain a legal right to offset amounts due to and from the same counterparty. The Company incurred no credit losses due to nonperformance of any of its counterparties during the years ended December 31, 2022 and 2021. The table below represents financial assets and liabilities that are subject to master netting arrangements categorized by financial instrument: Gross Gross Net December 31, 2022 Forward delivery commitments $ 1,887 $ (285) $ 1,602 Total assets $ 1,887 $ (285) $ 1,602 Forward delivery commitments and best efforts sales commitments $ (11,399) $ 4,959 $ (6,440) Margin calls 1,267 — 1,267 Total liabilities $ (10,132) $ 4,959 $ (5,173) December 31, 2021 Forward delivery commitments $ 7,541 $ (1,699) $ 5,842 Total assets $ 7,541 $ (1,699) $ 5,842 Forward delivery commitments $ 1,575 $ (2,710) $ (1,135) Best efforts sales commitments (944) — (944) Total liabilities $ 631 $ (2,710) $ (2,079) |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
MORTGAGE SERVICING RIGHTS | MORTGAGE SERVICING RIGHTS The activity of mortgage servicing rights was as follows for the years ended December 31, 2022 and 2021: 2022 2021 Balance — beginning of year $ 675,340 $ 446,998 MSRs originated and acquired through acquisitions 246,648 337,273 Sale of subserviced portfolio — (7,359) Changes in fair value: Due to collection/realization of cash flows (83,390) (150,954) Due to changes in valuation model inputs or assumptions 300,941 49,382 Balance — end of year $ 1,139,539 $ 675,340 The following table presents the weighted average discount rate, prepayment speed and cost to service assumptions used to determine the fair value of MSRs as of December 31, 2022 and 2021: 2022 2021 Unobservable Input Range (Weighted Average) Discount rate 9.6% - 15.7% (10.6%) 9.3% - 15.5% (9.9%) Prepayment rate 6.6% - 28.6% (7.5%) 7.3% - 29.5% (13.6%) Cost to service (per loan) $66.7 - $330.4 ($92.0) $71.9 - $247.6 ($91.4) At December 31, 2022 and 2021, the MSRs had a weighted average life of approximately 8.5 years and 5.9 years, respectively. See Note 2 for additional information regarding the valuation of MSRs. Actual revenue generated from servicing activities included contractually specified servicing fees, as well as late fees and other ancillary servicing revenue, which were recorded within loan servicing and other fees as follows for the years ended December 31, 2022 and 2021: 2022 2021 Servicing fees from servicing portfolio $ 218,734 $ 189,097 Late fees 5,825 5,429 Other ancillary servicing revenue, net (1,156) 233 Total loan servicing and other fees $ 223,403 $ 194,759 At December 31, 2022 and 2021, the UPB of mortgage loans serviced totaled $78.9 billion and $70.9 billion, respectively. Conforming conventional loans serviced by the Company are sold to FNMA or FHLMC programs on a nonrecourse basis, whereby foreclosure losses are generally the responsibility of FNMA and FHLMC and not the Company. Similarly, certain loans serviced by the Company are secured through GNMA programs, whereby the Company is insured against loss by the FHA or partially guaranteed against loss by the VA. The key assumptions used to estimate the fair value of MSRs are prepayment speeds, the discount rate and costs to service. 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 generally have an adverse effect on the value of the MSRs. The discount rate is risk adjusted for key factors such as uncertainty in the mortgage banking industry due to its reliance on external influences (interest rates, regulatory changes, etc.), premium for market liquidity, and credit risk. A higher discount rate would indicate higher uncertainty of the future cash flows. Conversely, decreases in the discount rate generally have a positive effect on the value of the MSRs. Increases in the costs to service generally have an adverse effect on the value of the MSRs as an increase in costs to service would reduce the Company’s future net cash inflows from servicing a loan. Conversely, decreases in the costs to service generally have a positive effect on the value of the MSRs. MSR 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 illustrates the impact of adverse changes on the prepayment speeds, discount rate and cost to service at two different data points at December 31, 2022 and 2021, respectively: Prepayment Speeds Discount Rate Cost to Service (per loan) 10% Adverse 20% Adverse 10% Adverse 20% Adverse 10% Adverse 20% Adverse December 31, 2022 Mortgage servicing rights $ (36,298) $ (70,878) $ (50,392) $ (96,848) $ (11,880) $ (24,162) December 31, 2021 Mortgage servicing rights $ (35,704) $ (69,207) $ (23,135) $ (45,139) $ (7,875) $ (16,288) |
MORTGAGE LOANS HELD FOR SALE
MORTGAGE LOANS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2022 | |
Mortgage Loans Held For Sale [Abstract] | |
MORTGAGE LOANS HELD FOR SALE | MORTGAGE LOANS HELD FOR SALE The 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 in the Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 is set forth below: 2022 2021 Balance at the beginning of period $ 2,204,216 $ 2,368,777 Origination of mortgage loans held for sale 19,220,547 37,178,171 Proceeds on sale of and payments from mortgage loans held for sale (21,062,670) (39,029,444) Mortgage loans acquired (see Note 3) — 465,020 Gain on sale of mortgage loans excluding fair value of other financial instruments, net 528,243 1,289,465 Valuation adjustment of mortgage loans held for sale (44,561) (67,773) Balance at the end of period $ 845,775 $ 2,204,216 At December 31, 2022, mortgage loans held for sale included UPB of the underlying loans of $868.8 million and had a fair value of $845.8 million. At December 31, 2021, mortgage loans held for sale included UPB of the underlying loans of $2.2 billion and had a fair value of $2.2 billion. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases office space under operating lease agreements that have initial terms ranging from 1 to 12 years. Some leases include one or more options to exercise renewal terms, generally at the Company's sole discretion, that can extend the lease term. Certain leases contain rights to terminate whereby those termination options are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease term only when it is reasonably certain that the Company will exercise that option. The Company’s leases generally do not contain any material restrictive covenants. All leases recognized in the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 are classified as operating leases, which include leases related to the asset classes reflected in the table below. ROU assets are included in other assets in the Company's Consolidated Balance Sheets. 2022 2021 Office leases $ 74,603 $ 86,231 Equipment 57 253 Total right-of-use assets $ 74,660 $ 86,484 Office leases $ 85,892 $ 97,551 Equipment 85 285 Total lease liability $ 85,977 $ 97,836 The following table summarizes the components of the Company's gross operating lease costs incurred during the years ended December 31, 2022 and 2021: 2022 2021 Operating lease cost $ 26,085 $ 25,311 Short-term lease cost 3,374 2,334 Variable lease cost 4,664 3,821 Total lease cost $ 34,123 $ 31,466 The weighted-average lease term and discount rate used are as follows: December 31, 2022 2021 Weighted-average lease term (years) 5.7 6.1 Weighted-average discount rate 4.0 % 3.8 % The following table summarizes supplemental cash flow information related to operating leases: 2022 2021 Cash paid for operating leases $ 15,972 $ 21,705 Right-of-use assets obtained in exchange for new operating lease obligations $ 16,008 $ 18,839 Minimum future commitments by year for the Company's long-term operating leases as of December 31, 2022 are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized in the balance sheet as follows: Amount 2023 $ 23,646 2024 18,021 2025 13,506 2026 10,135 2027 8,538 Thereafter 22,250 Total future minimum lease payments $ 96,096 Less: imputed interest (10,119) Total lease liabilities $ 85,977 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill allocated to the origination segment are presented in the following table: Balance at December 31, 2020 $ 62,834 Goodwill acquired (see Note 3) 112,310 Balance at December 31, 2021 $ 175,144 Measurement period adjustment (1) (1,710) Goodwill acquired (see Note 3) 3,335 Balance at December 31, 2022 $ 176,769 ______________________________ (1) The Company recorded a measurement period adjustment that included a decrease to goodwill of $1.7 million and an increase to income tax receivable of $1.7 million. This adjustment did not impact the Company's statements of income. During the fourth quarter of 2022, the Company performed its annual impairment test. Due to the Company's Origination unit recognizing a net loss during the fourth quarter, the Company performed a quantitative assessment for its Origination reporting unit, the only reporting unit with a goodwill balance. The quantitative assessment concluded the fair value of the Company's Origination reporting unit was in excess of its carrying value and no impairment was recognized. No impairment charge was recorded in 2021. Intangible Assets The following table presents the Company's intangible assets, net as of December 31, 2022: Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (Years) Referral network $ 42,300 $ 10,575 $ 31,725 4.2 Non-compete agreements 2,700 1,350 1,350 0.1 $ 45,000 $ 11,925 $ 33,075 4.3 Amortization expense related to intangible assets was $8.0 million and $4.0 million for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows: Amount 2023 $ 7,950 2024 7,500 2025 7,050 2026 7,050 2027 3,525 $ 33,075 |
INVESTOR RESERVES
INVESTOR RESERVES | 12 Months Ended |
Dec. 31, 2022 | |
Investor Reserves [Abstract] | |
INVESTOR RESERVES | INVESTOR RESERVES The Company’s estimate of the investor reserves considers the current macro-economic environment and recent repurchase trends; however, if the Company experiences a prolonged period of higher repurchase and indemnification activity, then the realized losses from loan repurchases and indemnifications may ultimately be in excess of the liability. 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 any loans that have already been paid in full by the mortgagee, that have defaulted without a breach of representations and warranties, that have been indemnified via settlement or make-whole, or that have been repurchased. Additionally, the Company may receive relief of certain representations and warranty obligations on loans sold to FNMA or FHLMC on or after January 1, 2013 if FNMA or FHLMC 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 FNMA or FHLMC. The activity of the investor reserves was as follows for the years ended December 31, 2022 and 2021: 2022 2021 Balance — beginning of year $ 18,437 $ 14,535 Benefit from investor reserves (9,219) (7,694) Investor reserves acquired from RMS — 1,507 Provision for investor reserves charged to operations 6,876 10,089 Balance — end of year $ 16,094 $ 18,437 |
WAREHOUSE LINES OF CREDIT
WAREHOUSE LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2022 | |
Line of Credit Facility [Abstract] | |
WAREHOUSE LINES OF CREDIT | WAREHOUSE LINES OF CREDIT Warehouse lines of credit consisted of the following at December 31, 2022 and 2021. Changes subsequent to December 31, 2022 have been described in the notes referenced with the below table. Maturity as of December 31, 2022 2021 $600 million master repurchase facility agreement (1) January 2023 $ 47,565 $ 472,646 $150 million master repurchase facility agreement (2) August 2023 10,848 147,750 $300 million master repurchase facility agreement (3) March 2023 189,512 295,444 $200 million master repurchase facility agreement (4) May 2023 110,605 146,182 $200 million master repurchase facility agreement (5) September 2023 16,131 133,772 $400 million master repurchase facility agreement (6) June 2023 81,353 377,416 $100 million master repurchase facility agreement (7) April 2023 56,237 117,935 $50 million master repurchase facility agreement (8) N/A — 136,173 $75 million master repurchase facility agreement (9) March 2025 40,096 33,452 $200 million master repurchase facility agreement (10) N/A — 26,947 $200 million master repurchase facility agreement (11) N/A 162,454 35,099 $75 million master repurchase facility agreement (12) N/A — 5,727 714,801 1,928,543 Prepaid commitment fees (1,650) (1,065) Net warehouse lines of credit $ 713,151 $ 1,927,478 ______________________________ (1) The variable interest rate is calculated using a base rate tied to the Secured Overnight Financing Rate ("SOFR"). Subsequent to December 31, 2022, this facility was reduced to $345.0 million and the agreement was amended to extend the maturity date to January 2024. (2) The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This line of credit requires a minimum deposit of $750,000. (3) The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This facility requires a minimum deposit to $1.5 million. (4) The variable interest rate is calculated using a base rate plus SOFR, with a floor of 0.25% plus the applicable interest rate margin. (5) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.40%, plus the applicable interest rate margin. (6) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.50%, plus the applicable interest rate margin. Subsequent to December 31, 2022, this facility was reduced to $300.0 million. (7) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.25%, plus the applicable interest rate margin. (8) The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This facility’s maturity date is 30 days from written notice by either the financial institution or the Company. (9) The interest rate on this facility is 3.375%. This facility is used for GNMA delinquent buyouts. Each buyout represents a separate transaction that can remain on the facility for up to four years. (10) This facility matured in January 2022 and was not renewed. (11) This facility agreement is due on demand and the variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.75%. (12) This facility was terminated prior to maturity. The weighted average interest rate for warehouse lines of credit was 3.3% and 2.4% at December 31, 2022 and 2021, respectively. All warehouse lines of credit are collateralized by underlying mortgages and related documents. Existing balances on warehouse lines are repaid through the sale proceeds from the collateralized loans held for sale. The Company had cash balances of $50.7 million and $46.7 million in its warehouse buy down accounts as offsets to certain lines of credit at December 31, 2022 and 2021, respectively. The agreements governing the Company’s warehouse lines of credit contain covenants that include certain financial requirements, including maintenance of maximum adjusted leverage ratio, minimum net worth, minimum tangible net worth, minimum liquidity, positive quarterly income and limitations on additional indebtedness, dividends, sale of assets, and decline in the mortgage loan servicing portfolio’s fair value. At December 31, 2022 and 2021, the Company believes it was in compliance with all debt covenants. The Company has an optional short-term financing agreement between FNMA and the lender described as “As Soon As Pooled” ("ASAP"). The Company can elect to assign FNMA Mortgage Backed Security ("MBS") trades to FNMA in advance of settlement and enter into a financing transaction and revenue related to the assignment is deferred until the final pool settlement date. The Company determines utilization based on warehouse availability and cash needs. There was no outstanding balance as of December 31, 2022 and 2021. Revolving Notes In January 2014, the Company entered into an agreement for a revolving note from one of its warehouse banks, which it can draw upon as needed and has renewed on an annual basis. Borrowings on the revolving note are collateralized by the Company’s GNMA MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the SOFR rate plus the applicable margin, with a SOFR floor of 0.5%. The revolving note also has an unused facility fee on the average unused balance, which is also paid quarterly. The unused facility fee is waived if the average outstanding balance exceeds 50% of the available facility. The revolving note has a maximum committed amount of $135.0 million and the agreement allows for the Company to increase the committed amount up to $200.0 million. In August 2022, the Company amended and restated the agreement to extend the expiration date of the revolving notes to August 2027. The Company has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At December 31, 2022 and 2021, the Company had $20.0 million and $60.0 million, respectively, in outstanding borrowings on this credit facility. In July 2017, the Company entered into an agreement for a revolving note of up to $25.0 million from one of its warehouse banks, which it can draw upon as needed and has renewed on an annual basis. In July 2020, the Company amended the agreement by extending the expiration date to July 2021 and increasing the revolving note up to $65.0 million. In July 2021, the Company amended the agreement by extending the expiration date to July 2022. In February 2022, the Company again amended the agreement and increased the revolving note up to $100.0 million. In June 2022, the Company further amended the agreement by extending the expiration date to June 2023. Borrowings on the revolving note are collateralized by the Company’s FHLMC MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the SOFR rate plus the applicable margin, with a floor of 0.50%. The revolving note also has an unused facility fee on the average unused balance, which is also paid quarterly. The unused facility fee is waived if the average outstanding balance exceeds 35% of the available combined warehouse and MSR facility. The lender has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At December 31, 2022 and 2021, the Company had no balance and $65.0 million, respectively, in outstanding borrowings on this credit facility. Term Note In January 2014, the Company entered into a term note agreement with one of its warehouse banks collateralized by the Company’s FNMA MSRs. In March 2021, the term note was amended and restated, at which time there was an outstanding amount of $76.5 million. The outstanding amount of $76.5 million was rolled into a new term note with a commitment of $125.0 million. The note allows for the committed amount to be increased to a maximum of $175.0 million. The Company could draw on the committed amount through March 2022 and the note matures in March 2024. Interest on the principal is paid monthly and is based upon a margin plus the highest of the (i) Prime Rate, (ii) Federal Funds Rate plus 0.5%, or (iii) the Eurodollar Base Rate plus 1.0%. Principal payments of 5% of the outstanding balance as of March 31, 2022 are due quarterly beginning April 15, 2022, with the remaining principal balance due upon maturity. The term note also has an unused facility fee on the average unused balance, which is also paid quarterly. At December 31, 2022 and 2021, the Company had an outstanding balance of $106.3 million and $125.0 million, respectively, on this facility. The minimum calendar year payments of the Company’s term note as of December 31, 2022 are as follows: 2023 $ 25,000 2024 81,250 Total $ 106,250 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | WAREHOUSE LINES OF CREDIT Warehouse lines of credit consisted of the following at December 31, 2022 and 2021. Changes subsequent to December 31, 2022 have been described in the notes referenced with the below table. Maturity as of December 31, 2022 2021 $600 million master repurchase facility agreement (1) January 2023 $ 47,565 $ 472,646 $150 million master repurchase facility agreement (2) August 2023 10,848 147,750 $300 million master repurchase facility agreement (3) March 2023 189,512 295,444 $200 million master repurchase facility agreement (4) May 2023 110,605 146,182 $200 million master repurchase facility agreement (5) September 2023 16,131 133,772 $400 million master repurchase facility agreement (6) June 2023 81,353 377,416 $100 million master repurchase facility agreement (7) April 2023 56,237 117,935 $50 million master repurchase facility agreement (8) N/A — 136,173 $75 million master repurchase facility agreement (9) March 2025 40,096 33,452 $200 million master repurchase facility agreement (10) N/A — 26,947 $200 million master repurchase facility agreement (11) N/A 162,454 35,099 $75 million master repurchase facility agreement (12) N/A — 5,727 714,801 1,928,543 Prepaid commitment fees (1,650) (1,065) Net warehouse lines of credit $ 713,151 $ 1,927,478 ______________________________ (1) The variable interest rate is calculated using a base rate tied to the Secured Overnight Financing Rate ("SOFR"). Subsequent to December 31, 2022, this facility was reduced to $345.0 million and the agreement was amended to extend the maturity date to January 2024. (2) The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This line of credit requires a minimum deposit of $750,000. (3) The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This facility requires a minimum deposit to $1.5 million. (4) The variable interest rate is calculated using a base rate plus SOFR, with a floor of 0.25% plus the applicable interest rate margin. (5) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.40%, plus the applicable interest rate margin. (6) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.50%, plus the applicable interest rate margin. Subsequent to December 31, 2022, this facility was reduced to $300.0 million. (7) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.25%, plus the applicable interest rate margin. (8) The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This facility’s maturity date is 30 days from written notice by either the financial institution or the Company. (9) The interest rate on this facility is 3.375%. This facility is used for GNMA delinquent buyouts. Each buyout represents a separate transaction that can remain on the facility for up to four years. (10) This facility matured in January 2022 and was not renewed. (11) This facility agreement is due on demand and the variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.75%. (12) This facility was terminated prior to maturity. The weighted average interest rate for warehouse lines of credit was 3.3% and 2.4% at December 31, 2022 and 2021, respectively. All warehouse lines of credit are collateralized by underlying mortgages and related documents. Existing balances on warehouse lines are repaid through the sale proceeds from the collateralized loans held for sale. The Company had cash balances of $50.7 million and $46.7 million in its warehouse buy down accounts as offsets to certain lines of credit at December 31, 2022 and 2021, respectively. The agreements governing the Company’s warehouse lines of credit contain covenants that include certain financial requirements, including maintenance of maximum adjusted leverage ratio, minimum net worth, minimum tangible net worth, minimum liquidity, positive quarterly income and limitations on additional indebtedness, dividends, sale of assets, and decline in the mortgage loan servicing portfolio’s fair value. At December 31, 2022 and 2021, the Company believes it was in compliance with all debt covenants. The Company has an optional short-term financing agreement between FNMA and the lender described as “As Soon As Pooled” ("ASAP"). The Company can elect to assign FNMA Mortgage Backed Security ("MBS") trades to FNMA in advance of settlement and enter into a financing transaction and revenue related to the assignment is deferred until the final pool settlement date. The Company determines utilization based on warehouse availability and cash needs. There was no outstanding balance as of December 31, 2022 and 2021. Revolving Notes In January 2014, the Company entered into an agreement for a revolving note from one of its warehouse banks, which it can draw upon as needed and has renewed on an annual basis. Borrowings on the revolving note are collateralized by the Company’s GNMA MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the SOFR rate plus the applicable margin, with a SOFR floor of 0.5%. The revolving note also has an unused facility fee on the average unused balance, which is also paid quarterly. The unused facility fee is waived if the average outstanding balance exceeds 50% of the available facility. The revolving note has a maximum committed amount of $135.0 million and the agreement allows for the Company to increase the committed amount up to $200.0 million. In August 2022, the Company amended and restated the agreement to extend the expiration date of the revolving notes to August 2027. The Company has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At December 31, 2022 and 2021, the Company had $20.0 million and $60.0 million, respectively, in outstanding borrowings on this credit facility. In July 2017, the Company entered into an agreement for a revolving note of up to $25.0 million from one of its warehouse banks, which it can draw upon as needed and has renewed on an annual basis. In July 2020, the Company amended the agreement by extending the expiration date to July 2021 and increasing the revolving note up to $65.0 million. In July 2021, the Company amended the agreement by extending the expiration date to July 2022. In February 2022, the Company again amended the agreement and increased the revolving note up to $100.0 million. In June 2022, the Company further amended the agreement by extending the expiration date to June 2023. Borrowings on the revolving note are collateralized by the Company’s FHLMC MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the SOFR rate plus the applicable margin, with a floor of 0.50%. The revolving note also has an unused facility fee on the average unused balance, which is also paid quarterly. The unused facility fee is waived if the average outstanding balance exceeds 35% of the available combined warehouse and MSR facility. The lender has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At December 31, 2022 and 2021, the Company had no balance and $65.0 million, respectively, in outstanding borrowings on this credit facility. Term Note In January 2014, the Company entered into a term note agreement with one of its warehouse banks collateralized by the Company’s FNMA MSRs. In March 2021, the term note was amended and restated, at which time there was an outstanding amount of $76.5 million. The outstanding amount of $76.5 million was rolled into a new term note with a commitment of $125.0 million. The note allows for the committed amount to be increased to a maximum of $175.0 million. The Company could draw on the committed amount through March 2022 and the note matures in March 2024. Interest on the principal is paid monthly and is based upon a margin plus the highest of the (i) Prime Rate, (ii) Federal Funds Rate plus 0.5%, or (iii) the Eurodollar Base Rate plus 1.0%. Principal payments of 5% of the outstanding balance as of March 31, 2022 are due quarterly beginning April 15, 2022, with the remaining principal balance due upon maturity. The term note also has an unused facility fee on the average unused balance, which is also paid quarterly. At December 31, 2022 and 2021, the Company had an outstanding balance of $106.3 million and $125.0 million, respectively, on this facility. The minimum calendar year payments of the Company’s term note as of December 31, 2022 are as follows: 2023 $ 25,000 2024 81,250 Total $ 106,250 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense were as follows for the years ended December 31, 2022 and 2021: 2022 2021 Current tax expense (benefit): Federal $ (199) $ 48,368 State 870 13,346 $ 671 $ 61,714 Deferred tax expense: Federal $ 72,764 $ 31,568 State 17,954 9,867 90,718 41,435 Income tax expense $ 91,389 $ 103,149 The following table presents a reconciliation of the recorded income tax expense of continuing operations to the amount of taxes computed by applying the applicable federal statutory tax rate of 21.0% to income from continuing operations before income taxes, as of December 31, 2022 and 2021, respectively: 2022 2021 Amount Percent Amount Percent Income tax expense at federal statutory rate $ 88,204 21.0 % $ 81,254 21.0 % State income taxes, net of federal tax benefit 16,297 3.9 % 19,449 5.0 % Contingent consideration (9,480) (2.3) % — — % Nondeductible compensation (876) (0.2) % 2,092 0.5 % Permanent items (2,150) (0.5) % 789 0.2 % Federal and state tax credits, net of federal tax benefit (520) (0.1) % (648) (0.2) % Other, net (86) 0.0 % 213 0.2 % $ 91,389 21.8 % $ 103,149 26.7 % The tax effects of significant temporary differences which gave rise to the Company’s deferred tax assets and liabilities are as follows at December 31, 2022 and 2021: 2022 2021 Deferred tax assets: Investor reserves $ 8,304 $ 8,979 Accrued compensation and benefits 3,695 3,249 Derivatives, net 515 — Deferred compensation 16,519 16,522 Lease liability 21,551 24,727 Other accrued liabilities — 195 R&D credit carryforwards 836 — Net operating loss carryforwards 12,313 — Capitalized research and experimental expenditures 4,259 — Charitable contributions 135 — Total deferred tax assets $ 68,127 $ 53,672 Deferred tax liabilities: Mortgage servicing rights $ (273,101) $ (160,966) Intangible assets (1,017) (3,537) Trading securities (24) (27) Derivatives, net — (6,542) Other accrued liabilities (5,957) — Right-of-use assets (19,424) (22,642) Property and equipment (1,567) (2,203) Total deferred tax liabilities (301,090) (195,917) Net deferred tax liabilities $ (232,963) $ (142,245) At December 31, 2022, the Company has federal and state net operating loss ("NOL") carryforwards of approximately $50.1 million and $35.7 million, respectively. The federal NOL carryforwards can be carried forward indefinitely and can offset up to 80% of future taxable income each year. The state NOL carryforwards begin to expire in 2027. At December 31, 2022, the Company has federal and state research tax credit carryforwards of approximately $0.5 million and $0.4 million, respectively. The federal research tax credit carryovers begin to expire in 2042 and the state tax credit carryovers do not expire and can be carried forward indefinitely until utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities including the impact of available carryback and carryforward periods and projected future taxable income. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. There are no valuation allowances on deferred tax assets as of December 31, 2022 or 2021. The Company records interest related to unrecognized tax benefits in interest expense and records penalties as a component of income taxes. There are no unrecognized tax benefits as of December 31, 2022 or 2021, and there were no changes in unrecognized tax benefits during the year. The Company is required to analyze all open years, as defined by the statutes of limitations, for all major jurisdictions, which includes federal and state jurisdictions. The Company is no longer subject to federal examinations prior to 2019 tax year or for state examinations prior to 2018 tax year. |
STOCKHOLDERS' EQUITY AND EARNIN
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | STOCKHOLDERS' EQUITY AND EARNINGS PER SHAREBasic earnings per share is computed based on the weighted average number of shares of Class A and Class B common stock outstanding during the period using the two-class method. Diluted earnings per share is computed based on the weighted average number of shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include RSUs for Class A common stock. The following table sets forth the components of basic and diluted earnings per share for the years ended December 31, 2022 and 2021: 2022 2021 Net income attributable to Guild $ 328,598 $ 283,773 Weighted-average shares outstanding, Class A Common Stock 20,648 20,178 Weighted-average shares outstanding, Class B Common Stock 40,333 40,333 Weighted-average shares outstanding - basic 60,981 60,511 Add dilutive effects of non-vested shares of restricted stock - Class A 398 314 Weighted-average shares outstanding - diluted 61,379 60,825 Basic earnings per share: Class A and Class B Common Stock $ 5.39 $ 4.69 Diluted earnings per share: Class A and Class B Common Stock $ 5.35 $ 4.67 No shares were excluded from the calculation of earnings per share as a result of being anti-dilutive. Capital Stock The Company has two classes of common stock: Class A and Class B. The Company's Class A common stock is traded on the New York Stock Exchange under the symbol “GHLD.” There is no public market for the Company’s Class B common stock. However, under the terms of the Company’s Certificate of Incorporation, the holder of Class B common stock may convert any portion or all of the holder’s shares of Class B common stock into an equal number of shares of Class A common stock at any time. The holders of shares of Class A common stock and Class B common stock are entitled to dividends when and if declared by the Company’s Board of Directors out of legally available funds. Any stock dividend must be paid in shares of Class A common stock with respect to Class A common stock and in shares of Class B common stock with respect to Class B common stock. The voting powers, preferences and relative rights of Class A common stock and Class B common stock are identical in all respects, except that the holders of shares of Class A common stock have one vote per share and the holders of shares of Class B common stock have ten votes per share. Restricted Stock Units The Company issues RSUs, which represent the right to receive, upon vesting, one share of the Company’s Class A common stock. The number of potentially dilutive shares related to RSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the vesting period. Share Repurchase Program On May 5, 2022, the Company’s Board of Directors authorized the Company to repurchase up to $20.0 million of the Company’s outstanding Class A common stock over the next 24 months from such date. The share repurchase program allows the Company to repurchase shares of its Class A common stock from time to time on the open market or in privately negotiated transactions. The Company is not obligated to purchase any shares under the share repurchase program and the timing of any repurchases will depend on a number of factors, including, but not limited to, stock price, trading volume, market conditions, and other general business considerations. The share repurchase program may be modified, suspended or terminated by the Company’s Board of Directors at any time. The Company intends to fund any repurchases under the share repurchase program with cash on hand. During year ended December 31, 2022, the Company repurchased and subsequently retired 543,864 shares of the Company’s Class A common stock at an average purchase price of $10.56 per share. As of December 31, 2022, $14.4 million remains available for repurchase. |
STOCK-BASED COMPENSATION AND EM
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS Incentive Plan In October 2020, the Company’s stockholders approved the 2020 Omnibus Incentive Plan (the “2020 Plan”), which is administered by the Compensation Committee of the Board of Directors. The 2020 Plan reserves for issuance a total of 5.5 million shares of Class A common stock to the Company's officers, directors, employees or consultants eligible to receive awards under the 2020 Plan. The 2020 Plan provides for the granting of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards or a combination of the foregoing, to employees, directors or consultants, provided that only employees may be granted incentive stock options. As of December 31, 2022, there were approximately 3.3 million shares of Class A common stock available to be granted under the 2020 Plan. The 2020 Plan will terminate ten years after its adoption, unless terminated earlier by the Company’s Board of Directors. Restricted Stock Units RSUs granted to employees generally vest 25% on the second and third anniversary of the grant and 50% on the fourth anniversary or ratably annually over a period of three years. RSUs granted to non-employee directors generally vest on the first anniversary of the grant. RSUs are authorized to settle in shares of the Company's Class A common stock. The following table shows a summary of the unvested restricted stock under the 2020 Plan as of December 31, 2022 as well as activity during the year: Weighted Average Number of Grant Date Restricted stock awards, unvested, December 31, 2021 1,585,947 $ 14.95 Granted 689,476 9.23 Vested (520,142) 13.96 Forfeited (68,649) 13.48 Restricted stock awards, unvested, December 31, 2022 1,686,632 $ 12.78 Compensation costs recognized for these restricted stock grants were approximately $7.3 million and $6.0 million for the years ended December 31, 2022 and 2021, respectively. T he income tax benefit recognized related to this expense was approximately $1.4 million and $1.0 million for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022, there was approximately $13.0 million of unrecognized compensation costs related to these restricted stock grants which we expect to recognize over the next 1.9 years. Defined Contribution Plan The Company has a 401(k) profit sharing plan covering substantially all employees. Employees may contribute amounts subject to certain Internal Revenue Service and plan limitations. The Company may make discretionary matching and nonelective contributions. Upon completion of the RMS acquisition on July 1, 2021, employees of RMS were eligible to participate in the Company's 401(k) plan or continue participating in RMS’ plan through December 31, 2022. The RMS plan was merged into the Company's plan in January 2023. For the years ended December 31, 2022 and 2021, the Company contributed $8.8 million and $10.2 million, respectively, for 401(k) contributions and related administrative expenses. Deferred Compensation Plan The Company has a deferred compensation plan for executives which was frozen effective December 31, 2007. Distribution of a participant’s vested balance is payable in a single lump sum upon death or disability, termination of employment, retirement after attaining age 65 (55 for participants who had an account balance in the plan as of May 1, 2001), or upon termination of the plan. Subsequent to December 31, 2022, the Company distributed cash payments of $5.8 million under this plan. In 2017, the Company commenced a Non-Qualified Deferred Compensation Plan for certain highly compensated executives and employees that allows the participants to defer a portion of their earnings. Distribution of a participant’s vested balance is payable in a single lump sum upon death or disability, termination of employment, retirement, or upon termination of the plan. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments to Extend Credit The Company enters into IRLCs with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. These commitments expose the Company to market risk if interest rates change and the loan is not economically hedged or committed to an investor. The Company is also exposed to credit loss if the loan is originated and not sold to an investor and the customer does not perform. The collateral upon extension of credit typically consists of a first deed of trust in the mortgagor’s residential property. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. Total commitments to originate loans at December 31, 2022 and 2021 were approximately $0.8 billion and $2.4 billion, respectively. The Company manages the interest rate price risk associated with its outstanding interest rate lock commitments and loans held for sale by entering into derivative loan instruments such as forward loan sales commitments, mandatory delivery commitments, options and futures contracts. Total commitments related to these derivatives at December 31, 2022 and 2021 were approximately $1.1 billion and $3.2 billion, respectively. Legal The Company is involved in various lawsuits arising in the ordinary course of business. While the ultimate results of these lawsuits cannot be predicted with certainty, management does not expect that these matters will have a material adverse effect on the consolidated financial position or results of operations of the Company. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSOn January 1, 2019, one of GMC’s executives retired, which triggered a repurchase of the executive’s membership interest in Guild Management, LLC, and a one-time payout of $2.0 million of deferred compensation. GMC’s former parent, Guild Investors, LLC, sold 13.7038 shares of GMC to the executive in exchange for the executive’s membership interest in Guild Management, LLC. The executive in turn sold the shares back to GMC in exchange for a promissory note of $8.0 million, which is payable over 16 quarters. During 2022 and 2021, the Company made payments of $2.1 million and $2.1 million, respectively, to the executive, and $0.5 million remained unpaid as of December 31, 2022. |
MINIMUM NET WORTH REQUIREMENTS
MINIMUM NET WORTH REQUIREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
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. The Company is subject to the following minimum net worth, minimum capital ratio and minimum liquidity requirements established by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac Seller/Servicers, and Ginnie Mae for single family issuers. 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 comprises 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 issuer’s total single-family effective outstanding obligations. • Adjusted/Tangible Net Worth comprises total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. 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 plus day delinquencies, servicing in excess of 6% of the total Agency servicing UPB. • Allowable assets for liquidity may include: cash and cash equivalents (unrestricted); available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations); and unused/available portion of committed servicing advance lines. The minimum liquidity requirement for Ginnie Mae is defined as follows: • Maintain liquid assets equal to the greater of $1,000 or 10 basis points of the Company's 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 $86,951 and $84,482 as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the Company was in compliance with this requirement. In August 2022, FHFA and Ginnie Mae revised their minimum financial eligibility requirements. The requirements will be effective at various dates beginning September 30, 2023, for issuers of securities guaranteed by Ginnie Mae and seller/servicers of mortgage loans to Fannie Mae and Freddie Mac. The Company is evaluating the impact of the revised requirements. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS 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 — Origination and Servicing. Origination — The Company operates its loan origination business throughout the United States. Its licensed sales professionals and support staff cultivate deep relationships with referral partners and clients and provide a customized approach to the loan transaction whether it is a purchase or refinance. The origination segment is primarily responsible for loan origination, acquisition and sale activities. Servicing — The Company services loans out of its corporate office in San Diego, California. Properties of the loans serviced by the Company are disbursed throughout the United States and as of December 31, 2022 the Company serviced at least one loan in forty-nine different states. The servicing segment provides a steady stream of cash flow to support the origination segment and more importantly it allows for the Company to build long standing client relationships that drive repeat and referral business back to the origination segment to recapture the client’s next mortgage transaction. The servicing segment is primarily responsible for the servicing activities of all loans in the Company’s servicing portfolio which includes, but is not limited to, collection and remittance of loan payments, managing borrower’s impound accounts for taxes and insurance, loan payoffs, loss mitigation and foreclosure activities. The Company does not allocate assets to its reportable segments as they are not included in the review performed by the Chief Operating Decision Maker 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 does not allocate certain corporate expenses, which are represented by All Other in the tables below. The following table presents the financial performance and results by segment for the year ended December 31, 2022: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 697,822 $ 5,852 $ 703,674 $ — $ 703,674 Loan servicing and other fees — 223,403 223,403 — 223,403 Valuation adjustment of mortgage servicing rights — 217,551 217,551 — 217,551 Interest income (expense) 20,115 5,465 25,580 (6,676) 18,904 Other income, net (57) 1,146 1,089 200 1,289 Net revenue 717,880 453,417 1,171,297 (6,476) 1,164,821 Expenses Salaries, incentive compensation and benefits 562,194 29,001 591,195 27,990 619,185 General and administrative 15,249 9,657 24,906 13,179 38,085 Occupancy, equipment and communication 62,556 4,819 67,375 4,332 71,707 Depreciation and amortization 13,889 654 14,543 982 15,525 Provision for foreclosure losses — 300 300 — 300 Income tax expense — — — 91,389 91,389 Net income (loss) $ 63,992 $ 408,986 $ 472,978 $ (144,348) $ 328,630 The following table presents the financial performance and results by segment for the year ended December 31, 2021: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 1,468,465 $ 12,051 $ 1,480,516 $ — $ 1,480,516 Loan servicing and other fees — 194,759 194,759 — 194,759 Valuation adjustment of mortgage servicing rights — (101,572) (101,572) — (101,572) Interest income (expense) 16,582 (7,882) 8,700 (6,180) 2,520 Other income, net (4) 110 106 (19) 87 Net revenue 1,485,043 97,466 1,582,509 (6,199) 1,576,310 Expenses Salaries, incentive compensation and benefits 953,772 27,697 981,469 38,321 1,019,790 General and administrative 71,480 9,722 81,202 10,089 91,291 Occupancy, equipment and communication 57,718 4,196 61,914 5,414 67,328 Depreciation and amortization 9,319 742 10,061 1,427 11,488 Reversal of provision for foreclosure losses — (518) (518) — (518) Income tax expense — — — 103,149 103,149 Net income (loss) $ 392,754 $ 55,627 $ 448,381 $ (164,599) $ 283,782 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTIn February 2023, we acquired certain assets of Legacy Mortgage LLC, an independent New Mexico-based mortgage banker, which expanded our presence in the Southwest region. The acquisition was funded with cash on hand of approximately $2.9 million. The Company is still evaluating the purchase price accounting for this acquisition. |
BUSINESS, BASIS OF PRESENTATI_2
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization | Organization Guild Holdings Company, including its consolidated subsidiaries (collectively, “Guild” or the “Company”) was incorporated in Delaware on August 11, 2020 for the purpose of facilitating an initial public offering (“IPO”) of its Class A common stock and other related transactions in order to carry on the business of Guild Mortgage Company LLC (“GMC”) and its wholly owned subsidiaries. GMC was incorporated in California on August 10, 1960 and in October of 2020 was converted to a California limited liability company. On October 21, 2020 Guild completed its IPO. The Company originates, sells, and services residential mortgage loans. The Company operates approximately 270 branches with licenses in 49 states and the District of Columbia. The Company’s residential mortgage originations are generated in 49 states from two channels of business: retail and correspondent. For the year ended December 31, 2022 the channel production was as follows: retail 96.0% and correspondent 4.0%. For the year ended December 31, 2021, the channel production was as follows: retail 97.1% and correspondent 2.9%. The Company is certified with the United States Department of Housing and Urban Development (“HUD”) and the Department of Veterans Affairs (“VA”) and operates as a Federal Housing Administration (“FHA”) non-supervised lender. In addition, the Company is an approved issuer with the Government National Mortgage Association (“GNMA” or "Ginnie Mae"), as well as an approved seller and servicer with the Federal National Mortgage Association (“FNMA” or "Fannie Mae"), the Federal Home Loan Mortgage Corporation (“FHLMC” or "Freddie Mac") and the United States Department of Agriculture Rural Development (“USDA”). Properties securing the mortgage loans in the Company’s servicing portfolio are geographically dispersed throughout the United States; however, at December 31, 2022, approximately 13.0% of such properties were located in California, 10.3% were located in Washington, and 10.2% were located in Texas. At December 31, 2021, approximately 13.9% of such properties were located in California, 10.9% were located in Washington, and 10.3% were located in Texas. Similarly, loan production in California, Washington and Texas represented 10.8%, 10.5%, and 8.8%, respectively, of the Company’s total loan production in 2022. For the year ended December 31, 2021, California, Washington and Oregon represented 15.6%, 13.4%, and 8.8%, respectively, of the Company’s total loan production. |
Principles of Consolidation | Principles of Consolidation The Company's consolidated financial statements include the accounts of the Company, GMC, and their consolidated subsidiaries and those variable interest entities ("VIE") of which the Company is the primary beneficiary. Generally, a VIE is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. In determining whether the Company is the primary beneficiary of a VIE, the Company considers qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of the Company's investment; the obligation or likelihood for the Company or other investors to provide financial support; and the similarity with and significance to the Company's business activities and the business activities of the other investors. The Company consolidates one VIE. At December 31, 2022, the VIE had minimal assets and liabilities. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results could materially differ from those estimates. |
Revenue Recognition | Revenue Recognition Loan origination fees and gain on sale of loans, net — loan origination fees and 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 the Company receives 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 mortgage 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 mortgage servicing rights (“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. 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 the Company has sold and retained the right to service. See Note 1 sections; Mortgage Loans Held for Sale, Mortgage Servicing Rights and Derivative Instruments, for more information related to fair value measurements of mortgage loans held for sale, the gain/(loss) on changes in the fair value of MSRs and the gain/(loss) on changes in the fair value of IRLCs, respectively. At December 31, 2022 and 2021, loan origination fees and gain on sale of loans were net of direct expenses of $138,254 and $252,302, respectively . Loan servicing and other fees — Loan servicing fees represent fees earned for servicing loans for various investors. The servicing fees are based on a contractual percentage of the outstanding principal balance and recognized into revenue as the related mortgage payments are received. Loan servicing expenses are charged to operations as incurred. Valuation adjustment of mortgage servicing rights — In accordance with Accounting Standards Codification (“ASC”) 860-50, the Company records MSRs as an asset, at fair value. The change in fair value is recorded within the Consolidated Statements of Income on a monthly basis. See Note 1, Mortgage Servicing Rights, for information related to the gain/(loss) on changes in the fair value of MSRs. Interest income — interest income includes interest earned on mortgage loans held for sale. Interest expense — interest expense includes interest paid to the Company’s loan funding facilities and MSR facilities. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash For cash flow purposes, the Company considers cash and temporary investments with original maturities of three months or less, to be cash and cash equivalents. The Company typically maintains cash in financial institutions in excess of Federal Deposit Insurance Corporation limits. The Company evaluates the creditworthiness of these financial institutions in determining the risk associated with these cash balances. The Company maintains cash balances that are restricted under the terms of its warehouse lines of credit. The following table summarizes the Company’s cash, cash equivalents and restricted cash at December 31, 2022 and 2021: 2022 2021 Cash and cash equivalents $ 137,891 $ 243,108 Restricted cash 8,863 5,012 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 146,754 $ 248,120 |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale The Company measures newly originated prime residential mortgage loans held for sale (“MLHS”) at fair value in accordance with ASC 825, Financial Instruments . 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, which are recorded at fair value. The Company estimates fair value by evaluating a variety of market indicators, including recent trades and outstanding commitments, calculated on an individual loan basis and aggregated (see Note 2 — Fair Value Measurements). Changes in the fair value of mortgage loans are recognized in current period income and are included in loan origination fees and gain on sale of loans, net. Fair value for mortgage loans covered by investor commitments is based on commitment prices. Fair value for uncommitted loans is based on current delivery prices. In accordance with ASC 825-10, the Company immediately recognizes loan origination fees, net of direct loan origination costs associated with these loans. Loans are considered sold when the Company surrenders control over the financial assets. Control is considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company |
Ginnie Mae Loans Subject to Repurchase Right | Ginnie Mae Loans Subject to Repurchase Right In accordance with ASC 860-50, Transfers and Servicing — Servicing Assets and Liabilities (“ASC 860-50”), certain loans, as defined by the servicer guidelines, serviced by the Company on behalf of GNMA are recognized as an asset, and carried at the unpaid principal balance (“UPB”) of the loans. The Company has a right to repurchase any loans serviced on behalf of GNMA that are three or more consecutive payments delinquent (“GNMA Loan Inventory”). The Company recognizes a corresponding liability (“GNMA Loan Payable”) which is recorded at the unpaid principal balance, for loans in which the Company has not exercised the right to repurchase the loans. If the loan goes through foreclosure and is an FHA loan, HUD acts as the insurer for GNMA and reimburses the servicer for the UPB plus allowable interest and foreclosure fees. The Company reserves for unreimbursed interest and fees as part of the general foreclosure reserve. If the loan goes through foreclosure and is a VA loan, the VA acts as the insurer and reimburses the Company based on the net value of the underlying property. At the amount determined by the VA, the Company accounts for any loss on VA loans in its foreclosure loss reserve to a certain threshold with any excess charged to its investor reserves. If a foreclosure sale has been held on an FHA loan, the deed is transferred to the Company and the loan becomes a GNMA real estate owned (“REO”). These are foreclosed real estate properties securing GNMA loans. Both principal and interest for government insured/guaranteed loans secured by the foreclosed real estate properties are collectible because the loans are insured by the FHA or guaranteed by the VA. The GNMA Loan Inventory and real estate owned is equal, and offsetting, to the GNMA Loan Payable. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing rights are recognized as assets in the Consolidated Balance Sheet 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. To determine the fair value of the servicing right when created, the Company uses a valuation model that calculates the present value of future cash flows. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, including estimates of contractual service fees, ancillary income and late fees, the cost of servicing, the discount rate, float value, the inflation rate, estimated prepayment speeds, and default rates. |
Derivative Instruments | Derivative Instruments The Company enters into IRLCs, forward commitments to sell mortgage loans and to be announced mortgage-backed securities 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. The Company enters into IRLCs to originate residential mortgage loans at specified interest rates and within a specified period of time, with customers who have applied for a loan and meet certain credit and underwriting criteria. IRLCs on mortgage loans in process that have not closed, but are intended to be sold, are considered to be derivatives and changes in fair value are recorded in the Consolidated Statements of Income as part of loan origination fees and gain on sale of loans, net. Fair value is based upon changes in the fair value of the underlying mortgages, estimated to be realizable upon sale into the secondary market, net of estimated incentive compensation expenses. Fair value estimates also consider loan commitments not expected to be exercised by customers for unforeseen reasons, commonly referred to as fallout. 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 enters into derivative loan instruments such as forward loan sales commitments, mandatory delivery commitments, options and futures contracts. Management expects the changes in the fair value of these derivatives to have a negative correlation to the changes in fair value of the derivative loan commitments and mortgage loans held for sale, thereby reducing earnings volatility. The changes in fair value are recorded in the Consolidated Statements of Income as part of loan origination fees and gain on sale of loans, net. The Company considers various factors and strategies in determining the portion of the mortgage pipeline and loans held for sale it wants to economically hedge. Forward commitments include to be announced 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. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset, usually three years. Leasehold improvements are amortized using the straight-line method over the shorter of the term of the related lease or the estimated useful life. The Company recognizes internal-use software within property and equipment which consists of both internal and external costs incurred in the development, testing and implementation directly related to the new software. The internal-use software is amortized over a three-year period and begins amortization upon the “go-live” date of the software. The Company determines the “go-live” date as the date in which the software is readily available to be used companywide. |
Acquisitions | Acquisitions When making an acquisition, the Company recognizes separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values under ASC 805, Business Combinations ("ASC 805"). Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and actual results may differ from expectations. The Company may record measurement period adjustments during the measurement period (one year from the acquisition date) that result from obtaining additional information about the facts and circumstances that existed as of the acquisition date. If this additional information had been known, it would have affected the accounting for the business combination as of the acquisition date. Accounting for business combinations requires the Company’s management to make estimates and assumptions, especially at the acquisition date with respect to mortgage servicing rights and contingent considerations. Although the Company believes the assumptions and estimates it has made in the past have been reasonable and appropriate, they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. |
Intangible Assets | Intangible Assets Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives in a manner that best reflects their economic benefit. All intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. |
Goodwill | Goodwill Goodwill is recorded at fair value and is tested for potential impairment at least annually. The Company performs its annual goodwill impairment analysis as of October 1 or more frequently if events and circumstances indicate that the carrying value may not be recoverable. The Company’s goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. Qualitative factors include, among other things, macroeconomic conditions, industry and market considerations, financial performance of the respective reporting unit and other relevant entity and reporting-unit specific considerations. If it is determined, based on qualitative factors, that the fair value of the reporting unit may be more likely than not less than the carrying amount, or if significant adverse changes in the Company's future financial performance occur that could materially impact fair value, a quantitative goodwill impairment test would be required. A quantitative assessment for impairment requires the Company to use significant judgment and estimates, including, but not limited to, estimates of future cash flows, revenue growth rates, operating margins, and a discount rate. Such estimates are based upon assumptions which are inherently uncertain and unpredictable. |
Contingent Liabilities due to Acquisitions | Contingent Liabilities due to Acquisitions The Company may be required to pay future consideration to the former shareholders of acquired companies, depending upon the terms of the applicable purchase agreement, which is contingent upon the achievement of certain financial and operating targets. The Company determines the fair value for its contingent consideration obligations using an income approach whereby the Company forecasts the cash outflows related to the earn-outs, which are based on a percentage of net income specified in the purchase agreements. The Company then discounts these expected payment amounts to calculate the fair value as of the valuation date. The Company’s management evaluates the underlying projections used in determining fair value each period and makes updates to these underlying projections when there have been significant changes in management’s expectations of the future business performance. The principal significant unobservable input used in the valuations of the Company’s contingent consideration obligations is a risk-adjusted discount rate. Whereas management’s underlying projections adjust for market penetration and other economic expectations, the discount rate is risk-adjusted for key factors such as uncertainty in the mortgage banking industry due to its reliance on external influences (interest rates, regulatory changes, etc.), upfront payments, and credit risk. An increase in the discount rate will result in a decrease in the fair value of contingent consideration. Conversely, a decrease in the discount rate will result in an increase in the fair value of contingent consideration. At each reporting date, or whenever there are significant changes in underlying key assumptions, a review of these assumptions is performed and the contingent consideration liability is updated to its estimated fair value. If there are no significant changes in the assumptions, the quarterly determination of the fair value of contingent consideration reflects the implied interest for the passage of time. Changes in the estimated fair value of the contingent consideration obligations may result from changes in the terms of the contingent payments, changes in discount periods and rates and changes in probability assumptions with respect to the timing and likelihood of achieving the certain financial targets. Actual progress toward achieving the financial targets for the remaining measurement periods may be different than the Company’s expectations of future performance. The change in the estimated fair value of contingent consideration is included in general and administrative expense in the Consolidated Statements of Income. |
Leases | Leases The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The Company also considers whether its service arrangements include the right to control the use of an asset. If an arrangement is determined to be a lease, the Company recognizes a right-of-use ("ROU") asset and a corresponding operating lease liability in its Consolidated Balance Sheet based on the present value of lease payments over the expected lease term, except leases with initial terms of 12 months or less. Lease payments may include fixed rent escalation clauses or payments that depend on an index or a rate (such as the consumer price index) measured using the index or applicable rate at lease commencement. Subsequent changes in the index or rate and any other variable payments, such as market-rate base rent adjustments, are recognized as variable lease expense in the period incurred. To determine the present value of lease payments, the Company uses its incremental borrowing rate, as the leases generally do not have a readily determinable implicit discount rate. The Company applies judgement in assessing factors such as Company-specific credit risk, lease term, nature and quality of the underlying collateral and the economic environment in determining the lease-specific incremental borrowing rate. The ROU assets are also adjusted for any initial direct costs incurred and lease payments made at or before the commencement date and are reduced by lease incentives. The Company’s leases generally include a non-lease component representing additional services transferred to the Company, such as common area maintenance for real estate. The Company accounts for lease and non-lease components in its contracts as a single lease component for all asset classes. The non-lease components are usually variable in nature and recorded in variable lease expense in the period incurred. The Company recognizes lease expense on a straight-line basis excluding short-term and variable lease payments which are recognized as incurred. Short-term lease cost represents payments for leases with a lease term of 12 months or less, excluding leases with a term of one month or less. |
Real Estate Owned | Real Estate Owned There are two types of REO properties held by the Company. The first is considered a traditional REO where the Company owns, markets, and sells the property. At the time of foreclosure, other real estate owned is recorded at the asset’s fair value less selling costs, which becomes the property’s new basis. After foreclosure, these assets are carried at the lower of their new cost basis or fair value less selling costs. Costs incurred in maintaining foreclosed real estate and subsequent write-downs to reflect declines in the fair value of the property are expensed as incurred. At December 31, 2022 and 2021, the Company had $0.3 million and $0.2 million of traditional REOs, respectively. The second type is foreclosed real estate securing GNMA loans in process of conveyance to HUD but insured by the FHA, where the Company is the controller of the deed for a period of time. For GNMA loans, the property becomes REO if not sold to a third party at its foreclosure sale. Both principal and debenture rate interest for government insured loans secured by the foreclosed real estate are collectible because the loans are |
Investor Reserves | Investor Reserves The Company has exposure to potential mortgage loan repurchases and indemnifications in its capacity as a loan originator and servicer. The estimation of the liability for probable losses related to the repurchase and indemnification obligation considers an estimate of probable future repurchase or indemnification obligations from breaches of representations and warranties. The liability related to specific non-performing loans is based on a loan-level analysis considering the current collateral value, estimated sales proceeds and selling costs. The liability related to probable future repurchase or indemnification obligations is segregated by year of origination and considers the amount of unresolved repurchase and indemnification requests, as well as an estimate of future repurchase demands. Future repurchase demands are estimated based upon recent and historical repurchase and indemnification experience, as well as the success rate in appealing repurchase requests and an estimated loss severity, based on current loss rates for similar loans. The Company also has exposure to early payment defaults (“EPD”) and/or early payoff fees (“EPO”). When the Company sells a loan to an investor and the loan either pays off or goes into default within a certain timeframe, the Company could be exposed to EPD and/or EPO fees in accordance with each investor’s contract. The Company reserves for these fees by estimating early payment defaults and fees based on prior loan activity and current loan origination volume. |
Foreclosure Loss Reserve and Provision for Foreclosure Losses | Foreclosure Loss Reserve and Provision for Foreclosure Losses The Company has exposure for losses associated with government loans in foreclosure related to nonrefundable interest and foreclosure servicing costs. The Company maintains a reserve for government loans currently in foreclosure based on historical loss experience. The Company also accrues for any additional known losses above the current loss per loan; for example, losses due to servicer delays. |
Advertising | Advertising Advertising is expensed as incurred and amounted to $11.4 million and $12.9 million for the years ended December 31, 2022 and 2021, respectively, and is included within general and administrative expenses in the Consolidated Statements of Income. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair value of restricted stock units (“RSUs”) is based on the value of the Company’s common stock on the date of grant. The Company accounts for forfeitures as they occur and reverses previously recognized expense for the unvested portion of the forfeited shares. Stock-based compensation is included in salaries, incentive compensation and benefits in the Consolidated Statements of Income. See Note 16 for additional information. |
Earnings Per Share | Earnings Per Share The Company determines earnings per share in accordance with the authoritative guidance in ASC Topic 260, Earnings Per Share |
Dividend Equivalent Units | Non-vested RSUs under the 2020 Omnibus Incentive Plan have rights to dividends, which entitle holders to the same dividend value per share as holders of shares of Class A common stock in the form of dividend equivalent units ("DEUs"). DEUs will be credited as additional RSUs on the dividend payment date and will vest on the same date as the underlying RSUs and are forfeited if the underlying RSUs forfeit prior to vesting. The number of additional RSUs credited will equal (1) the per share cash dividend amount, multiplied by (2) the number of RSUs, divided by (3) the fair market value of a share of Class A common stock on the last trading day before the date of the dividend payment, rounded up to the nearest whole number of RSUs. In conjunction with the payment of Guild's dividends, Guild issued 193,130 DEUs to holders of RSUs. Since the DEUs are forfeitable, the value of the DEUs was recorded as a reduction to retained earnings and a credit to additional paid-in capital in the Consolidated Balance Sheets. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more-likely than-not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and records penalties as a component of income taxes. |
Escrow and Fiduciary Funds | Escrow and Fiduciary FundsAs a loan servicer, the Company maintains segregated bank accounts in trust for investors and escrow balances for mortgagors, which are excluded from the Company’s Consolidated Balance Sheets. |
Risks and Uncertainties | Risks and Uncertainties In the normal course of business, companies in the mortgage banking industry encounter certain economic, liquidity, and regulatory risks. Economic risk includes interest rate risk and credit risk. Interest rate risk The Company’s mortgage loans held for sale, commitments to originate loans, and mortgage servicing rights are subject to interest rate risk. For mortgage loans held for sale and commitments to originate loans, to the extent that a rising interest rate environment exists, the Company may experience a decrease in loan production and decreases in value, which may negatively impact the Company’s operations. To mitigate this risk, the Company uses hedging strategies designed to ensure any fluctuations in rates would not have a material impact on the Company’s financial position. For the Company’s mortgage servicing rights, the fair value generally decreases in periods where interest rates are declining and as prepayments speeds are increasing. The fair value generally increases in periods where interest rates are increasing and as prepayments speeds are decreasing. For the years ended December 31, 2022 and 2021, the Company experienced an increase and a decrease, respectively, in the valuation of its MSR portfolio. Since the Company also has a large origination platform the Company believes it was able to mitigate this risk by recapturing a significant portion of the runoff through refinances. Credit risk Credit risk is the risk of default that may result from borrowers’ inability or unwillingness to make contractually required payments during the period in which loans are being held for sale. The Company considers credit risk associated with these loans to be insignificant as it holds the loans for a short period of time, typically less than a month, and historically the Company has not experienced any material losses due to credit risk on loans held for sale. The Company sells loans to investors without recourse. As such, the investors have assumed the risk of loss or default by the borrower. However, the Company is usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation and collateral. To the extent that the Company does not comply with such representations, or there are early payment defaults, the Company may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults, defects in the collateral or errors made in the credit decision. The Company is also subject to counterparty credit risk in the event of contractual nonperformance by its trading counterparties to its various over-the-counter derivative financial instruments. 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. The master netting agreements contain a legal right to offset amounts due to and from the same counterparty. Derivative assets in the Consolidated Balance Sheets represent derivative contracts in a gain position net of loss positions with the same counterparty and, therefore, also represent the Company’s maximum counterparty credit risk. The Company incurred no credit losses due to nonperformance of any of its counterparties during the years ended December 31, 2022 and 2021. Liquidity risk The Company encounters liquidity risk as the business requires substantial cash to support its operating activities. As a result, the Company is dependent on its lines of credit, and other financing facilities in order to finance its continued operations. If the Company’s principal lenders decided to terminate or not to renew these credit facilities with the Company, the loss of borrowing capacity could have an adverse impact on the Company’s financial statements unless the Company found a suitable alternative source. To mitigate this risk, the Company has multiple financing facilities with different lenders and varied maturity dates. Historically, the Company has not had a line of credit involuntarily terminated by a lender. The Company assesses market conditions and closely monitors and projects cash flows over multiple time periods to anticipate and mitigate liquidity risk. Regulatory risk The Company is subject to extensive and comprehensive regulation under federal, state and local laws in the United States. These laws and regulations significantly affect the way in which the Company does business and can restrict the scope of the Company’s existing business and limit the Company’s ability to expand product offerings or pursue acquisitions, or can make costs to service or originate loans higher, which could impact financial results. The Company continually monitors its regulatory environment for any changes that could have a significant impact on operations. |
Recent Accounting Standards | Recent Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. In January 2021, the FASB issued ASU 2021-01, R eference Rate Reform (Topic 848): Scope , which clarifies that the practical expedients in ASU 2020-04 apply to derivatives impacted by changes in the interest rate used for margining, discounting, or contract price alignment. The guidance in ASU 2020-04 is optional and may be elected over time, through December 31, 2022, as reference rate reform activities occur. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , to extend the temporary accounting rules from December 31, 2022 to December 21, 2024. Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications. The Company is in the process of transitioning its funding facilities and financing facilities that utilize LIBOR as the reference rate. For contracts to which ASC Topic 470 , Debt applies, the Company has applied the optional expedients available from ASU 2020-04 and accounted for the contract modifications related to reference rate reform prospectively. Of the contracts that have been adjusted for the new reference rate, there has not been a material impact on the consolidated financial statements. The Company expects to amend the remaining borrowings before the July 1, 2023 LIBOR cessation date. |
Fair Value Measurements | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The categorization of assets and liabilities measured at fair value within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to measure fair value are as follows: • Level One - Level One inputs are unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level Two - Level Two inputs are observable for that asset or liability, either directly or indirectly, and include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, observable inputs for the asset or liability other than quoted prices and inputs derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified contractual term, the inputs must be observable for substantially the full term of the asset or liability. • Level Three - Level Three inputs are unobservable inputs for the asset or liability that reflect the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and are developed based on the best information available. |
BUSINESS, BASIS OF PRESENTATI_3
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Cash, Cash Equivalents and Restricted Cash | The following table summarizes the Company’s cash, cash equivalents and restricted cash at December 31, 2022 and 2021: 2022 2021 Cash and cash equivalents $ 137,891 $ 243,108 Restricted cash 8,863 5,012 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 146,754 $ 248,120 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 96 $ — $ — $ 96 Derivative Forward delivery commitments — 1,602 — 1,602 Interest rate lock commitments — — 1,518 1,518 Mortgage loans held for sale — 845,775 — 845,775 Mortgage servicing rights — — 1,139,539 1,139,539 Investment in warrants 961 961 Total assets at fair value $ 96 $ 847,377 $ 1,142,018 $ 1,989,491 Liabilities: Derivative Forward commitments and best efforts sales commitments $ — $ 5,173 $ — $ 5,173 Contingent liabilities due to acquisitions — — 526 526 Total liabilities at fair value $ — $ 5,173 $ 526 $ 5,699 The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2021: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 107 $ — $ — $ 107 Derivative Forward delivery commitments — 5,842 — 5,842 Interest rate lock commitments — — 22,119 22,119 Mortgage loans held for sale — 2,204,216 — 2,204,216 Mortgage servicing rights — — 675,340 675,340 Total assets at fair value $ 107 $ 2,210,058 $ 697,459 $ 2,907,624 Liabilities: Derivative Forward delivery commitments $ — $ 2,079 $ — $ 2,079 Contingent liabilities due to acquisitions — — 59,500 59,500 Total liabilities at fair value $ — $ 2,079 $ 59,500 $ 61,579 |
Summary of Reconciliation of Level 3 Assets Measured at Fair Value on Recurring Basis | The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the years ended: IRLCs Contingent Balance at December 31, 2020 $ 130,338 $ 18,094 Net transfers and revaluation losses (108,219) — Payments — (27,507) Additions — 63,956 Valuation adjustments — 4,957 Balance at December 31, 2021 $ 22,119 $ 59,500 Net transfers and revaluation losses (20,601) — Payments — (14,425) Additions — 526 Valuation adjustments — (45,075) Balance at December 31, 2022 $ 1,518 $ 526 |
Summary of Reconciliation of Level 3 Liabilities Measured at Fair Value on Recurring Basis | The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the years ended: IRLCs Contingent Balance at December 31, 2020 $ 130,338 $ 18,094 Net transfers and revaluation losses (108,219) — Payments — (27,507) Additions — 63,956 Valuation adjustments — 4,957 Balance at December 31, 2021 $ 22,119 $ 59,500 Net transfers and revaluation losses (20,601) — Payments — (14,425) Additions — 526 Valuation adjustments — (45,075) Balance at December 31, 2022 $ 1,518 $ 526 |
Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2022: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 650,179 $ — $ 650,179 Total assets at fair value $ — $ 650,179 $ — $ 650,179 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 650,179 $ — $ 650,179 Total liabilities at fair value $ — $ 650,179 $ — $ 650,179 The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2021: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 728,978 $ — $ 728,978 Total assets at fair value $ — $ 728,978 $ — $ 728,978 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 729,260 $ — $ 729,260 Total liabilities at fair value $ — $ 729,260 $ — $ 729,260 |
Summary of Fair Value Option for Mortgage Loans Held For Sale | The following is the estimated fair value and UPB of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects their expected future economic performance: Fair Value Principal Difference (1) Balance at December 31, 2022 $ 845,775 $ 868,833 $ (23,058) Balance at December 31, 2021 $ 2,204,216 $ 2,184,326 $ 19,890 _______________________________ |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Allocation Reflect Final Determination of Fair Value of Assets Acquired and Liabilities Assumed | Measurement period adjustments were recorded in the second quarter of 2022 and resulted in an immaterial decrease to goodwill and increase to income tax receivable (see Note 10). The following summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date, including measurement period adjustments: Purchase price: Cash paid at closing of the transaction $ 185,786 Fair value of Class A common stock issued 15,289 Estimated fair value of contingent consideration 63,956 Total purchase price 265,031 Fair value of assets acquired: Cash, cash equivalents and restricted cash 85,559 Mortgage loans held for sale 465,020 Acquired intangible assets 45,000 Right-of-use assets 11,855 Other 36,923 Total assets acquired 644,357 Fair value of liabilities assumed: Warehouse lines of credit 431,175 Accounts payable and accrued expenses 26,960 Operating lease liabilities 12,959 Deferred taxes 16,231 Other 2,601 Total liabilities assumed 489,926 Fair value of net identifiable assets acquired 154,431 Goodwill $ 110,600 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the major classes of acquired intangible assets and their respective estimated fair values and estimated useful lives: Estimated Fair Value Estimated Useful Life (Years) Acquired intangible assets: Referral network $ 42,300 6 Non-compete agreements 2,700 3 Total acquired intangible assets $ 45,000 |
Schedule of Results of Operations Included in Consolidated Statements of Income from Acquisition Date | The unaudited pro forma information is presented for information purposes only, and is not necessarily indicative of future operations or results had the acquisition been completed as of January 1, 2021: Year Ended December 31, 2021 Net revenues $ 1,721,597 Net income $ 307,854 |
ACCOUNTS AND INTEREST RECEIVA_2
ACCOUNTS AND INTEREST RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts and Interest Receivable | Accounts and interest receivable consisted of the following at December 31, 2022 and 2021: 2022 2021 Trust advances $ 44,164 $ 43,660 Foreclosure advances, net 12,320 19,311 Receivables related to loan sales 562 3,043 Other 1,258 2,345 Total accounts and interest receivable $ 58,304 $ 68,359 |
Schedule of Activity of the Foreclosure Loss Reserve | The activity of the foreclosure loss reserve was as follows for the years ended December 31, 2022 and 2021: 2022 2021 Balance — beginning of year $ 10,355 $ 12,402 Utilization of foreclosure reserve (1,957) (1,529) Provision for (reversal of) foreclosure losses 300 (518) Balance — end of year $ 8,698 $ 10,355 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Summary of Other Assets | Other assets consisted of the following at December 31, 2022 and 2021: 2022 2021 Prepaid expenses $ 31,499 $ 32,900 Company owned life insurance 37,871 38,824 Property and equipment, net 12,118 15,834 Right-of-use assets 74,660 86,484 Income tax receivable 26,531 39,295 Real estate owned 306 471 Land 2,034 146 Trading securities 96 107 Investment in warrants 961 — Total other assets $ 186,076 $ 214,061 |
Summary of Property and Equipment | Property and equipment, net consisted of the following at December 31, 2022 and 2021: 2022 2021 Computer equipment $ 29,447 $ 30,355 Furniture and equipment 25,072 25,833 Leasehold improvements 18,713 16,214 Internal-use software in production 772 1,548 Internal-use software 10,357 8,557 Property and equipment, gross 84,361 82,507 Accumulated depreciation (72,243) (66,673) Property and equipment, net $ 12,118 $ 15,834 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Unrealized Hedging Gains | Changes in the fair value of the Company's derivative financial instruments are as follows for the years ended December 31, 2022 and 2021: 2022 2021 Unrealized hedging losses $ (27,936) $ (82,668) |
Schedule of Notional and Fair Value of Derivative Financial Instruments Not Designated as Hedging Instruments | The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows at December 31, 2022 and 2021: Fair Value Notional Derivative Derivative Balance at December 31, 2022 IRLCs $ 810,514 $ 1,518 $ — Forward delivery commitments and best efforts sales commitments $ 1,127,154 $ 1,602 $ 5,173 Balance at December 31, 2021 IRLCs $ 2,388,097 $ 22,119 $ — Forward delivery commitments and best efforts sales commitments $ 3,217,162 $ 5,842 $ 2,079 |
Schedule of Quantitative Information About IRLCs and Fair Value Measurements | The following table presents the quantitative information about IRLCs and the fair value measurements as of December 31, 2022 and 2021: 2022 2021 Unobservable Input Range (Weighted Average) Loan funding probability (“pull-through”) 0% -100% (93.4%) 0% - 100% (91.5%) |
Schedule of Financial Liabilities are Subject to Master Netting Arrangements or Similar Agreements Categorized by Financial Instrument | The table below represents financial assets and liabilities that are subject to master netting arrangements categorized by financial instrument: Gross Gross Net December 31, 2022 Forward delivery commitments $ 1,887 $ (285) $ 1,602 Total assets $ 1,887 $ (285) $ 1,602 Forward delivery commitments and best efforts sales commitments $ (11,399) $ 4,959 $ (6,440) Margin calls 1,267 — 1,267 Total liabilities $ (10,132) $ 4,959 $ (5,173) December 31, 2021 Forward delivery commitments $ 7,541 $ (1,699) $ 5,842 Total assets $ 7,541 $ (1,699) $ 5,842 Forward delivery commitments $ 1,575 $ (2,710) $ (1,135) Best efforts sales commitments (944) — (944) Total liabilities $ 631 $ (2,710) $ (2,079) |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Summary of Activity of Mortgage Servicing Rights | The activity of mortgage servicing rights was as follows for the years ended December 31, 2022 and 2021: 2022 2021 Balance — beginning of year $ 675,340 $ 446,998 MSRs originated and acquired through acquisitions 246,648 337,273 Sale of subserviced portfolio — (7,359) Changes in fair value: Due to collection/realization of cash flows (83,390) (150,954) Due to changes in valuation model inputs or assumptions 300,941 49,382 Balance — end of year $ 1,139,539 $ 675,340 |
Summary of Weighted Average Discount Rate, Prepayment Speed and Cost to Service Assumptions Used to Determine Fair Value of MSRs | The following table presents the weighted average discount rate, prepayment speed and cost to service assumptions used to determine the fair value of MSRs as of December 31, 2022 and 2021: 2022 2021 Unobservable Input Range (Weighted Average) Discount rate 9.6% - 15.7% (10.6%) 9.3% - 15.5% (9.9%) Prepayment rate 6.6% - 28.6% (7.5%) 7.3% - 29.5% (13.6%) Cost to service (per loan) $66.7 - $330.4 ($92.0) $71.9 - $247.6 ($91.4) |
Summary of Actual Revenue Generated from Servicing Activities | Actual revenue generated from servicing activities included contractually specified servicing fees, as well as late fees and other ancillary servicing revenue, which were recorded within loan servicing and other fees as follows for the years ended December 31, 2022 and 2021: 2022 2021 Servicing fees from servicing portfolio $ 218,734 $ 189,097 Late fees 5,825 5,429 Other ancillary servicing revenue, net (1,156) 233 Total loan servicing and other fees $ 223,403 $ 194,759 |
Summary of Impact of Adverse Changes on Prepayment Speeds, Discount Rate and Cost to Service at Two Different Data Points | The following table illustrates the impact of adverse changes on the prepayment speeds, discount rate and cost to service at two different data points at December 31, 2022 and 2021, respectively: Prepayment Speeds Discount Rate Cost to Service (per loan) 10% Adverse 20% Adverse 10% Adverse 20% Adverse 10% Adverse 20% Adverse December 31, 2022 Mortgage servicing rights $ (36,298) $ (70,878) $ (50,392) $ (96,848) $ (11,880) $ (24,162) December 31, 2021 Mortgage servicing rights $ (35,704) $ (69,207) $ (23,135) $ (45,139) $ (7,875) $ (16,288) |
MORTGAGE LOANS HELD FOR SALE (T
MORTGAGE LOANS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Mortgage Loans Held For Sale [Abstract] | |
Summary of Reconciliation of Changes in Mortgage Loans Held for Sale to Amounts Presented in Condensed Consolidated Statements of Cash Flows | A reconciliation of the changes in mortgage loans held for sale to the amounts presented in the Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 is set forth below: 2022 2021 Balance at the beginning of period $ 2,204,216 $ 2,368,777 Origination of mortgage loans held for sale 19,220,547 37,178,171 Proceeds on sale of and payments from mortgage loans held for sale (21,062,670) (39,029,444) Mortgage loans acquired (see Note 3) — 465,020 Gain on sale of mortgage loans excluding fair value of other financial instruments, net 528,243 1,289,465 Valuation adjustment of mortgage loans held for sale (44,561) (67,773) Balance at the end of period $ 845,775 $ 2,204,216 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease-related Assets and Liabilities | All leases recognized in the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 are classified as operating leases, which include leases related to the asset classes reflected in the table below. ROU assets are included in other assets in the Company's Consolidated Balance Sheets. 2022 2021 Office leases $ 74,603 $ 86,231 Equipment 57 253 Total right-of-use assets $ 74,660 $ 86,484 Office leases $ 85,892 $ 97,551 Equipment 85 285 Total lease liability $ 85,977 $ 97,836 |
Summary of Components of Gross Operating Lease Costs | The following table summarizes the components of the Company's gross operating lease costs incurred during the years ended December 31, 2022 and 2021: 2022 2021 Operating lease cost $ 26,085 $ 25,311 Short-term lease cost 3,374 2,334 Variable lease cost 4,664 3,821 Total lease cost $ 34,123 $ 31,466 |
Summary of Weighted-average Lease Term and Discount Rate Used | weighted-average lease term and discount rate used are as follows: December 31, 2022 2021 Weighted-average lease term (years) 5.7 6.1 Weighted-average discount rate 4.0 % 3.8 % |
Summary of Supplemental Cash Flow Information Related to Operating Leases | The following table summarizes supplemental cash flow information related to operating leases: 2022 2021 Cash paid for operating leases $ 15,972 $ 21,705 Right-of-use assets obtained in exchange for new operating lease obligations $ 16,008 $ 18,839 |
Schedule of Minimum Future Commitments or Rental Payments Under Operating Leases | Minimum future commitments by year for the Company's long-term operating leases as of December 31, 2022 are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized in the balance sheet as follows: Amount 2023 $ 23,646 2024 18,021 2025 13,506 2026 10,135 2027 8,538 Thereafter 22,250 Total future minimum lease payments $ 96,096 Less: imputed interest (10,119) Total lease liabilities $ 85,977 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Activity in Goodwill | Balance at December 31, 2020 $ 62,834 Goodwill acquired (see Note 3) 112,310 Balance at December 31, 2021 $ 175,144 Measurement period adjustment (1) (1,710) Goodwill acquired (see Note 3) 3,335 Balance at December 31, 2022 $ 176,769 ______________________________ (1) The Company recorded a measurement period adjustment that included a decrease to goodwill of $1.7 million and an increase to income tax receivable of $1.7 million. This adjustment did not impact the Company's statements of income. |
Schedule of Finite-Lived Intangible Assets | The following table presents the Company's intangible assets, net as of December 31, 2022: Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (Years) Referral network $ 42,300 $ 10,575 $ 31,725 4.2 Non-compete agreements 2,700 1,350 1,350 0.1 $ 45,000 $ 11,925 $ 33,075 4.3 |
Schedule of Expected Amortization Expense | As of December 31, 2022, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows: Amount 2023 $ 7,950 2024 7,500 2025 7,050 2026 7,050 2027 3,525 $ 33,075 |
INVESTOR RESERVES (Tables)
INVESTOR RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investor Reserves [Abstract] | |
Schedule of Activity of Investor Reserves | The activity of the investor reserves was as follows for the years ended December 31, 2022 and 2021: 2022 2021 Balance — beginning of year $ 18,437 $ 14,535 Benefit from investor reserves (9,219) (7,694) Investor reserves acquired from RMS — 1,507 Provision for investor reserves charged to operations 6,876 10,089 Balance — end of year $ 16,094 $ 18,437 |
WAREHOUSE LINES OF CREDIT (Tabl
WAREHOUSE LINES OF CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Line of Credit Facility [Abstract] | |
Summary of Warehouse Lines of Credit | Warehouse lines of credit consisted of the following at December 31, 2022 and 2021. Changes subsequent to December 31, 2022 have been described in the notes referenced with the below table. Maturity as of December 31, 2022 2021 $600 million master repurchase facility agreement (1) January 2023 $ 47,565 $ 472,646 $150 million master repurchase facility agreement (2) August 2023 10,848 147,750 $300 million master repurchase facility agreement (3) March 2023 189,512 295,444 $200 million master repurchase facility agreement (4) May 2023 110,605 146,182 $200 million master repurchase facility agreement (5) September 2023 16,131 133,772 $400 million master repurchase facility agreement (6) June 2023 81,353 377,416 $100 million master repurchase facility agreement (7) April 2023 56,237 117,935 $50 million master repurchase facility agreement (8) N/A — 136,173 $75 million master repurchase facility agreement (9) March 2025 40,096 33,452 $200 million master repurchase facility agreement (10) N/A — 26,947 $200 million master repurchase facility agreement (11) N/A 162,454 35,099 $75 million master repurchase facility agreement (12) N/A — 5,727 714,801 1,928,543 Prepaid commitment fees (1,650) (1,065) Net warehouse lines of credit $ 713,151 $ 1,927,478 ______________________________ (1) The variable interest rate is calculated using a base rate tied to the Secured Overnight Financing Rate ("SOFR"). Subsequent to December 31, 2022, this facility was reduced to $345.0 million and the agreement was amended to extend the maturity date to January 2024. (2) The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This line of credit requires a minimum deposit of $750,000. (3) The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This facility requires a minimum deposit to $1.5 million. (4) The variable interest rate is calculated using a base rate plus SOFR, with a floor of 0.25% plus the applicable interest rate margin. (5) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.40%, plus the applicable interest rate margin. (6) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.50%, plus the applicable interest rate margin. Subsequent to December 31, 2022, this facility was reduced to $300.0 million. (7) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.25%, plus the applicable interest rate margin. (8) The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This facility’s maturity date is 30 days from written notice by either the financial institution or the Company. (9) The interest rate on this facility is 3.375%. This facility is used for GNMA delinquent buyouts. Each buyout represents a separate transaction that can remain on the facility for up to four years. (10) This facility matured in January 2022 and was not renewed. (11) This facility agreement is due on demand and the variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.75%. (12) This facility was terminated prior to maturity. |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Minimum Calendar Year Payments of Term Note | The minimum calendar year payments of the Company’s term note as of December 31, 2022 are as follows: 2023 $ 25,000 2024 81,250 Total $ 106,250 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of income tax expense were as follows for the years ended December 31, 2022 and 2021: 2022 2021 Current tax expense (benefit): Federal $ (199) $ 48,368 State 870 13,346 $ 671 $ 61,714 Deferred tax expense: Federal $ 72,764 $ 31,568 State 17,954 9,867 90,718 41,435 Income tax expense $ 91,389 $ 103,149 |
Schedule of Reconciliation of Recorded Income Tax Expense of Continuing Operations | The following table presents a reconciliation of the recorded income tax expense of continuing operations to the amount of taxes computed by applying the applicable federal statutory tax rate of 21.0% to income from continuing operations before income taxes, as of December 31, 2022 and 2021, respectively: 2022 2021 Amount Percent Amount Percent Income tax expense at federal statutory rate $ 88,204 21.0 % $ 81,254 21.0 % State income taxes, net of federal tax benefit 16,297 3.9 % 19,449 5.0 % Contingent consideration (9,480) (2.3) % — — % Nondeductible compensation (876) (0.2) % 2,092 0.5 % Permanent items (2,150) (0.5) % 789 0.2 % Federal and state tax credits, net of federal tax benefit (520) (0.1) % (648) (0.2) % Other, net (86) 0.0 % 213 0.2 % $ 91,389 21.8 % $ 103,149 26.7 % |
Schedule of Tax Effects of Significant Temporary Differences to Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences which gave rise to the Company’s deferred tax assets and liabilities are as follows at December 31, 2022 and 2021: 2022 2021 Deferred tax assets: Investor reserves $ 8,304 $ 8,979 Accrued compensation and benefits 3,695 3,249 Derivatives, net 515 — Deferred compensation 16,519 16,522 Lease liability 21,551 24,727 Other accrued liabilities — 195 R&D credit carryforwards 836 — Net operating loss carryforwards 12,313 — Capitalized research and experimental expenditures 4,259 — Charitable contributions 135 — Total deferred tax assets $ 68,127 $ 53,672 Deferred tax liabilities: Mortgage servicing rights $ (273,101) $ (160,966) Intangible assets (1,017) (3,537) Trading securities (24) (27) Derivatives, net — (6,542) Other accrued liabilities (5,957) — Right-of-use assets (19,424) (22,642) Property and equipment (1,567) (2,203) Total deferred tax liabilities (301,090) (195,917) Net deferred tax liabilities $ (232,963) $ (142,245) |
STOCKHOLDERS' EQUITY AND EARN_2
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Basic and Diluted Earnings Per Share | The following table sets forth the components of basic and diluted earnings per share for the years ended December 31, 2022 and 2021: 2022 2021 Net income attributable to Guild $ 328,598 $ 283,773 Weighted-average shares outstanding, Class A Common Stock 20,648 20,178 Weighted-average shares outstanding, Class B Common Stock 40,333 40,333 Weighted-average shares outstanding - basic 60,981 60,511 Add dilutive effects of non-vested shares of restricted stock - Class A 398 314 Weighted-average shares outstanding - diluted 61,379 60,825 Basic earnings per share: Class A and Class B Common Stock $ 5.39 $ 4.69 Diluted earnings per share: Class A and Class B Common Stock $ 5.35 $ 4.67 |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Unvested Restricted Stock | The following table shows a summary of the unvested restricted stock under the 2020 Plan as of December 31, 2022 as well as activity during the year: Weighted Average Number of Grant Date Restricted stock awards, unvested, December 31, 2021 1,585,947 $ 14.95 Granted 689,476 9.23 Vested (520,142) 13.96 Forfeited (68,649) 13.48 Restricted stock awards, unvested, December 31, 2022 1,686,632 $ 12.78 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Performance and Results by Segment | The following table presents the financial performance and results by segment for the year ended December 31, 2022: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 697,822 $ 5,852 $ 703,674 $ — $ 703,674 Loan servicing and other fees — 223,403 223,403 — 223,403 Valuation adjustment of mortgage servicing rights — 217,551 217,551 — 217,551 Interest income (expense) 20,115 5,465 25,580 (6,676) 18,904 Other income, net (57) 1,146 1,089 200 1,289 Net revenue 717,880 453,417 1,171,297 (6,476) 1,164,821 Expenses Salaries, incentive compensation and benefits 562,194 29,001 591,195 27,990 619,185 General and administrative 15,249 9,657 24,906 13,179 38,085 Occupancy, equipment and communication 62,556 4,819 67,375 4,332 71,707 Depreciation and amortization 13,889 654 14,543 982 15,525 Provision for foreclosure losses — 300 300 — 300 Income tax expense — — — 91,389 91,389 Net income (loss) $ 63,992 $ 408,986 $ 472,978 $ (144,348) $ 328,630 The following table presents the financial performance and results by segment for the year ended December 31, 2021: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 1,468,465 $ 12,051 $ 1,480,516 $ — $ 1,480,516 Loan servicing and other fees — 194,759 194,759 — 194,759 Valuation adjustment of mortgage servicing rights — (101,572) (101,572) — (101,572) Interest income (expense) 16,582 (7,882) 8,700 (6,180) 2,520 Other income, net (4) 110 106 (19) 87 Net revenue 1,485,043 97,466 1,582,509 (6,199) 1,576,310 Expenses Salaries, incentive compensation and benefits 953,772 27,697 981,469 38,321 1,019,790 General and administrative 71,480 9,722 81,202 10,089 91,291 Occupancy, equipment and communication 57,718 4,196 61,914 5,414 67,328 Depreciation and amortization 9,319 742 10,061 1,427 11,488 Reversal of provision for foreclosure losses — (518) (518) — (518) Income tax expense — — — 103,149 103,149 Net income (loss) $ 392,754 $ 55,627 $ 448,381 $ (164,599) $ 283,782 |
BUSINESS, BASIS OF PRESENTATI_4
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES - Organization (Details) | 12 Months Ended | |
Dec. 31, 2022 state channel branch variable_interest_entity | Dec. 31, 2021 | |
Product Information [Line Items] | ||
Number of branches | branch | 270 | |
Channels of business | channel | 2 | |
Number of VIE | variable_interest_entity | 1 | |
California | ||
Product Information [Line Items] | ||
Percentage of properties securing mortgage loans in servicing portfolio | 13% | 13.90% |
Percentage of loan production | 10.80% | 15.60% |
Washington | ||
Product Information [Line Items] | ||
Percentage of properties securing mortgage loans in servicing portfolio | 10.30% | 10.90% |
Percentage of loan production | 10.50% | 13.40% |
Texas | ||
Product Information [Line Items] | ||
Percentage of properties securing mortgage loans in servicing portfolio | 10.20% | 10.30% |
Percentage of loan production | 8.80% | |
Oregon | ||
Product Information [Line Items] | ||
Percentage of loan production | 8.80% | |
Licenses | ||
Product Information [Line Items] | ||
Number of states | 49 | |
Residential Mortgage Originations | ||
Product Information [Line Items] | ||
Number of states | 49 | |
Retail | ||
Product Information [Line Items] | ||
Channel production percentage | 96% | 97.10% |
Correspondent | ||
Product Information [Line Items] | ||
Channel production percentage | 4% | 2.90% |
BUSINESS, BASIS OF PRESENTATI_5
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) class property variable_interest_entity shares | Dec. 31, 2021 USD ($) $ / shares | |
Property Plant and Equipment [Line Items] | ||
Direct expenses related to loan origination fees and gain on sale of loans | $ 138,254,000 | $ 252,302,000 |
Number of class of MSR asset | class | 1 | |
Estimated useful lives | 3 years | |
Number of types of real estate owned properties | property | 2 | |
Real estate owned | $ 300,000 | 200,000 |
Real estate owned, insured by FHA | 0 | 300,000 |
Advertising expense | 11,400,000 | $ 12,900,000 |
Common stock dividends per share (in dollars per share) | $ / shares | $ 2 | |
Dividends paid | 0 | $ 121,057,000 |
Total account balance for trust for investors and escrow balances for mortgagors | 600,000,000 | 1,100,000,000 |
Credit losses due to nonperformance of counterparties | $ 0 | $ 0 |
Number of VIE | variable_interest_entity | 1 | |
Restricted Stock Units | ||
Property Plant and Equipment [Line Items] | ||
Dividend equivalent units granted (in shares) | shares | 193,130 | |
Software | ||
Property Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years |
BUSINESS, BASIS OF PRESENTATI_6
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 137,891 | $ 243,108 | |
Restricted cash | 8,863 | 5,012 | |
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ 146,754 | $ 248,120 | $ 339,633 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - Level 3 | Dec. 31, 2022 | Dec. 31, 2021 |
Recurring Fair Value Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan funding probability (“pull-through”) | 93.40% | 91.50% |
Minimum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.145 | 0.150 |
Maximum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.250 | 0.195 |
Median | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.150 | 0.191 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | |||
Trading securities | $ 96 | $ 107 | |
Derivative | |||
Derivative assets | 3,120 | 27,961 | |
Mortgage loans held for sale | 845,775 | 2,204,216 | $ 2,368,777 |
Mortgage servicing rights | 1,139,539 | 675,340 | |
Investment in warrants | 961 | 0 | |
Derivative | |||
Derivative liabilities | 5,173 | 2,079 | |
Contingent liabilities due to acquisitions | 526 | 59,500 | |
Recurring Fair Value Measurements | |||
Assets: | |||
Trading securities | 96 | 107 | |
Derivative | |||
Mortgage loans held for sale | 845,775 | 2,204,216 | |
Mortgage servicing rights | 1,139,539 | 675,340 | |
Investment in warrants | 961 | ||
Total assets at fair value | 1,989,491 | 2,907,624 | |
Derivative | |||
Derivative liabilities | 5,173 | 2,079 | |
Contingent liabilities due to acquisitions | 526 | 59,500 | |
Total liabilities at fair value | 5,699 | 61,579 | |
Recurring Fair Value Measurements | Forward delivery commitments | |||
Derivative | |||
Derivative assets | 1,602 | 5,842 | |
Recurring Fair Value Measurements | Interest rate lock commitments | |||
Derivative | |||
Derivative assets | 1,518 | 22,119 | |
Recurring Fair Value Measurements | Level 1 | |||
Assets: | |||
Trading securities | 96 | 107 | |
Derivative | |||
Mortgage loans held for sale | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Investment in warrants | |||
Total assets at fair value | 96 | 107 | |
Derivative | |||
Derivative liabilities | 0 | 0 | |
Contingent liabilities due to acquisitions | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Recurring Fair Value Measurements | Level 1 | Forward delivery commitments | |||
Derivative | |||
Derivative assets | 0 | 0 | |
Recurring Fair Value Measurements | Level 1 | Interest rate lock commitments | |||
Derivative | |||
Derivative assets | 0 | 0 | |
Recurring Fair Value Measurements | Level 2 | |||
Assets: | |||
Trading securities | 0 | 0 | |
Derivative | |||
Mortgage loans held for sale | 845,775 | 2,204,216 | |
Mortgage servicing rights | 0 | 0 | |
Investment in warrants | |||
Total assets at fair value | 847,377 | 2,210,058 | |
Derivative | |||
Derivative liabilities | 5,173 | 2,079 | |
Contingent liabilities due to acquisitions | 0 | 0 | |
Total liabilities at fair value | 5,173 | 2,079 | |
Recurring Fair Value Measurements | Level 2 | Forward delivery commitments | |||
Derivative | |||
Derivative assets | 1,602 | 5,842 | |
Recurring Fair Value Measurements | Level 2 | Interest rate lock commitments | |||
Derivative | |||
Derivative assets | 0 | 0 | |
Recurring Fair Value Measurements | Level 3 | |||
Assets: | |||
Trading securities | 0 | 0 | |
Derivative | |||
Mortgage loans held for sale | 0 | 0 | |
Mortgage servicing rights | 1,139,539 | 675,340 | |
Investment in warrants | 961 | ||
Total assets at fair value | 1,142,018 | 697,459 | |
Derivative | |||
Derivative liabilities | 0 | 0 | |
Contingent liabilities due to acquisitions | 526 | 59,500 | |
Total liabilities at fair value | 526 | 59,500 | |
Recurring Fair Value Measurements | Level 3 | Forward delivery commitments | |||
Derivative | |||
Derivative assets | 0 | 0 | |
Recurring Fair Value Measurements | Level 3 | Interest rate lock commitments | |||
Derivative | |||
Derivative assets | $ 1,518 | $ 22,119 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contingent Liabilities | ||
Contingent Liabilities | ||
Beginning balance | $ 59,500 | $ 18,094 |
Payments | (14,425) | (27,507) |
Additions | 526 | 63,956 |
Valuation adjustments | (45,075) | 4,957 |
Ending balance | 526 | 59,500 |
IRLCs | ||
IRLCs | ||
Beginning balance | 22,119 | 130,338 |
Net transfers and revaluation losses | (20,601) | (108,219) |
Ending balance | $ 1,518 | $ 22,119 |
FAIR VALUE MEASUREMENTS - Sum_3
FAIR VALUE MEASUREMENTS - Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-Recurring Fair Value Measurements - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Ginnie Mae loans subject to repurchase right | $ 650,179 | $ 728,978 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 650,179 | 729,260 |
Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 650,179 | 728,978 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 650,179 | 729,260 |
Level 1 | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Level 1 | Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Level 2 | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 650,179 | 728,978 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 650,179 | 729,260 |
Level 2 | Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 650,179 | 728,978 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 650,179 | 729,260 |
Level 3 | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Level 3 | Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sum_4
FAIR VALUE MEASUREMENTS - Summary of Fair Value Option for Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |||
Fair Value | $ 845,775 | $ 2,204,216 | $ 2,368,777 |
Principal Amount Due Upon Maturity | 868,833 | 2,184,326 | |
Difference | $ (23,058) | $ 19,890 |
ACQUISITION - Additional Inform
ACQUISITION - Additional Information (Details) - USD ($) | 6 Months Ended | ||||
Dec. 12, 2022 | Jul. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Contingent liabilities due to acquisitions | $ 59,500,000 | $ 526,000 | |||
Goodwill | 175,144,000 | $ 176,769,000 | $ 62,834,000 | ||
Inlanta Mortgage, Inc. | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 4,000,000 | ||||
Cash paid at closing of the transaction | 3,500,000 | ||||
Estimated fair value of contingent consideration | 500,000 | ||||
Net assets acquired | 700,000 | ||||
Goodwill | $ 3,300,000 | ||||
Inlanta Mortgage, Inc. | Earn Out | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration performance period | 3 years | ||||
Contingent liabilities due to acquisitions | $ 0 | ||||
Inlanta Mortgage, Inc. | Volume-Override Cash Payment | |||||
Business Acquisition [Line Items] | |||||
Contingent liabilities due to acquisitions | $ 500,000 | ||||
RMS | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 265,031,000 | ||||
Cash paid at closing of the transaction | 185,786,000 | ||||
Estimated fair value of contingent consideration | $ 63,956,000 | ||||
Contingent consideration performance period | 3 years | ||||
Contingent liabilities due to acquisitions | $ 64,000,000 | ||||
Net assets acquired | 154,431,000 | ||||
Goodwill | $ 110,600,000 | ||||
Issuance of shares (in shares) | 996,644 | ||||
Business acquisition, transaction costs | $ 5,200,000 | ||||
Net revenue | 104,600,000 | ||||
Net income | $ 12,800,000 |
ACQUISITION - Schedule of Purch
ACQUISITION - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair value of liabilities assumed: | ||||
Goodwill | $ 176,769 | $ 175,144 | $ 62,834 | |
RMS | ||||
Purchase price: | ||||
Cash paid at closing of the transaction | $ 185,786 | |||
Fair value of Class A common stock issued | 15,289 | |||
Estimated fair value of contingent consideration | 63,956 | |||
Total purchase price | 265,031 | |||
Fair value of assets acquired: | ||||
Cash, cash equivalents and restricted cash | 85,559 | |||
Mortgage loans held for sale | 465,020 | |||
Acquired intangible assets | 45,000 | |||
Right-of-use assets | 11,855 | |||
Other | 36,923 | |||
Total assets acquired | 644,357 | |||
Fair value of liabilities assumed: | ||||
Warehouse lines of credit | 431,175 | |||
Accounts payable and accrued expenses | 26,960 | |||
Operating lease liabilities | 12,959 | |||
Deferred taxes | 16,231 | |||
Other | 2,601 | |||
Total liabilities assumed | 489,926 | |||
Fair value of net identifiable assets acquired | 154,431 | |||
Goodwill | $ 110,600 |
ACQUISITION - Schedule of Intan
ACQUISITION - Schedule of Intangible Assets Acquired (Details) - RMS $ in Thousands | Jul. 01, 2021 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 45,000 |
Referral network | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 42,300 |
Estimated Useful Life (Years) | 6 years |
Non-compete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 2,700 |
Estimated Useful Life (Years) | 3 years |
ACQUISITION - Schedule of Pro F
ACQUISITION - Schedule of Pro Forma Information (Details) - RMS $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |
Net revenues | $ 1,721,597 |
Net income | $ 307,854 |
ACCOUNTS AND INTEREST RECEIVA_3
ACCOUNTS AND INTEREST RECEIVABLE - Schedule of Accounts and Interest Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trust advances | $ 44,164 | $ 43,660 |
Foreclosure advances, net | 12,320 | 19,311 |
Receivables related to loan sales | 562 | 3,043 |
Other | 1,258 | 2,345 |
Total accounts and interest receivable | $ 58,304 | $ 68,359 |
ACCOUNTS AND INTEREST RECEIVA_4
ACCOUNTS AND INTEREST RECEIVABLE - Schedule of Activity of the Foreclosure Loss Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Foreclosure Loss Reserve [Roll Forward] | ||
Balance — beginning of year | $ 10,355 | $ 12,402 |
Utilization of foreclosure reserve | (1,957) | (1,529) |
Provision for (reversal of) foreclosure losses | 300 | (518) |
Balance — end of year | $ 8,698 | $ 10,355 |
OTHER ASSETS - Summary of Other
OTHER ASSETS - Summary of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | ||
Prepaid expenses | $ 31,499 | $ 32,900 |
Company owned life insurance | 37,871 | 38,824 |
Property and equipment, net | 12,118 | 15,834 |
Right-of-use assets | 74,660 | 86,484 |
Income tax receivable | 26,531 | 39,295 |
Real estate owned | 306 | 471 |
Land | 2,034 | 146 |
Trading securities | 96 | 107 |
Investment in warrants | 961 | 0 |
Total other assets | $ 186,076 | $ 214,061 |
OTHER ASSETS - Summary of Prope
OTHER ASSETS - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 84,361 | $ 82,507 |
Accumulated depreciation | (72,243) | (66,673) |
Property and equipment, net | 12,118 | 15,834 |
Computer equipment | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 29,447 | 30,355 |
Furniture and equipment | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 25,072 | 25,833 |
Leasehold improvements | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,713 | 16,214 |
Internal-use software in production | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 772 | 1,548 |
Internal-use software | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,357 | $ 8,557 |
OTHER ASSETS - Additional Infor
OTHER ASSETS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other Assets [Abstract] | ||
Depreciation and amortization expense for property and equipment | $ 7.6 | $ 7.5 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Net Unrealized Hedging Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized hedging losses | $ (27,936) | $ (82,668) |
Not Designated as Hedging Instruments | Loan Origination Fees and Gain on Sale of Loans, Net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized hedging losses | $ (27,936) | $ (82,668) |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Notional and Fair Value of Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instruments - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IRLCs | ||
Derivative [Line Items] | ||
Notional Value | $ 810,514 | $ 2,388,097 |
Derivative Asset | 1,518 | 22,119 |
Derivative Liability | 0 | 0 |
Forward delivery commitments and best efforts sales commitments | ||
Derivative [Line Items] | ||
Notional Value | 1,127,154 | 3,217,162 |
Derivative Asset | 1,602 | 5,842 |
Derivative Liability | $ 5,173 | $ 2,079 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - Not Designated as Hedging Instruments - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Outstanding forward contracts and mandatory sell commitments | $ 256,300,000 | $ 654,000,000 |
Closed hedge instruments not yet settled | 470,800,000 | 767,500,000 |
Credit losses due to nonperformance of counterparties | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Quantitative Information About IRLCs and Fair Value Measurements (Details) - IRLCs | Dec. 31, 2022 | Dec. 31, 2021 |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 0% | 0% |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 100% | 100% |
Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 93.40% | 91.50% |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Financial Liabilities are Subject to Master Netting Arrangements or Similar Agreements Categorized by Financial Instrument (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative asset | $ 3,120 | $ 27,961 |
Derivative liability | (5,173) | (2,079) |
Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative asset | 631 | |
Derivative liability | (10,132) | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative asset | (2,710) | |
Derivative liability | 4,959 | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liability | (5,173) | (2,079) |
Derivative Financial Instruments, Assets | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative asset | 1,887 | 7,541 |
Gross Amounts Offset in the Balance Sheet | ||
Derivative asset | (285) | (1,699) |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative asset | 1,602 | 5,842 |
Forward delivery commitments | Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative asset | 1,575 | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative asset | (2,710) | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liability | (1,135) | |
Forward delivery commitments | Derivative Financial Instruments, Assets | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative asset | 1,887 | 7,541 |
Gross Amounts Offset in the Balance Sheet | ||
Derivative asset | (285) | (1,699) |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative asset | 1,602 | 5,842 |
Forward Delivery Commitments And Best Efforts Sales Commitments | Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative liability | (11,399) | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative liability | 4,959 | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liability | (6,440) | |
Margin calls | Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative asset | 1,267 | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative asset | 0 | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative asset | $ 1,267 | |
Best efforts sales commitments | Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative liability | (944) | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative liability | 0 | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liability | $ (944) |
MORTGAGE SERVICING RIGHTS - Sum
MORTGAGE SERVICING RIGHTS - Summary of Activity of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance — beginning of year | $ 675,340 | $ 446,998 |
MSRs originated and acquired through acquisitions | 246,648 | 337,273 |
Sale of subserviced portfolio | 0 | (7,359) |
Changes in fair value: | ||
Due to collection/realization of cash flows | (83,390) | (150,954) |
Due to changes in valuation model inputs or assumptions | 300,941 | 49,382 |
Balance — end of year | $ 1,139,539 | $ 675,340 |
MORTGAGE SERVICING RIGHTS - S_2
MORTGAGE SERVICING RIGHTS - Summary of the Weighted Average Discount Rate, Prepayment Speed and Cost to Service Assumptions Used to Determine the Fair Value of MSRs (Details) - $ / loan | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Discount rate | 9.60% | 9.30% |
Prepayment rate | 6.60% | 7.30% |
Cost to service (in USD per loan) | 66.7 | 71.9 |
Maximum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Discount rate | 15.70% | 15.50% |
Prepayment rate | 28.60% | 29.50% |
Cost to service (in USD per loan) | 330.4 | 247.6 |
Weighted Average | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Discount rate | 10.60% | 9.90% |
Prepayment rate | 7.50% | 13.60% |
Cost to service (in USD per loan) | 92 | 91.4 |
MORTGAGE SERVICING RIGHTS - Add
MORTGAGE SERVICING RIGHTS - Additional Information (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Mortgage servicing rights weighted average life | 8 years 6 months | 5 years 10 months 24 days |
Unpaid principal balance of mortgage loans serviced | $ 78.9 | $ 70.9 |
MORTGAGE SERVICING RIGHTS - S_3
MORTGAGE SERVICING RIGHTS - Summary of Actual Revenue Generated from Servicing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Servicing fees from servicing portfolio | $ 218,734 | $ 189,097 |
Late fees | 5,825 | 5,429 |
Other ancillary servicing revenue, net | (1,156) | 233 |
Total loan servicing and other fees | $ 223,403 | $ 194,759 |
MORTGAGE SERVICING RIGHTS - S_4
MORTGAGE SERVICING RIGHTS - Summary of Impact of Adverse Changes on Prepayment Speeds, Discount Rate and Cost to Service at Two Different Data Points (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Transfers and Servicing [Abstract] | ||
Mortgage servicing rights, Prepayment Speeds 10% Adverse Change | $ (36,298) | $ (35,704) |
Mortgage servicing rights, Prepayment Speeds 20% Adverse Change | (70,878) | (69,207) |
Mortgage servicing rights, Discount Rates 10% Adverse Change | (50,392) | (23,135) |
Mortgage servicing rights, Discount Rates 20% Adverse Change | (96,848) | (45,139) |
Mortgage servicing rights, Cost to Service (per loan) 10% Adverse Change | (11,880) | (7,875) |
Mortgage servicing rights, Cost to Service (per loan) 20% Adverse Change | $ (24,162) | $ (16,288) |
MORTGAGE LOANS HELD FOR SALE -
MORTGAGE LOANS HELD FOR SALE - Summary of Reconciliation of Changes in Mortgage Loans Held for Sale to Amounts Presented in Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgages Held For Sale [Roll Forward] | ||
Balance at the beginning of period | $ 2,204,216 | $ 2,368,777 |
Origination of mortgage loans held for sale | 19,220,547 | 37,178,171 |
Proceeds on sale of and payments from mortgage loans held for sale | (21,062,670) | (39,029,444) |
Mortgage loans acquired (see Note 3) | 0 | 465,020 |
Gain on sale of mortgage loans excluding fair value of other financial instruments, net | 528,243 | 1,289,465 |
Valuation adjustment of mortgage loans held for sale | (44,561) | (67,773) |
Balance at the end of period | $ 845,775 | $ 2,204,216 |
MORTGAGE LOANS HELD FOR SALE _2
MORTGAGE LOANS HELD FOR SALE - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Mortgage Loans Held For Sale [Abstract] | |||
Mortgage loans held for sale unpaid principal balances of underlying loans | $ 868,800 | $ 2,200,000 | |
Mortgage loans held for sale | $ 845,775 | $ 2,204,216 | $ 2,368,777 |
LEASES - Additional Information
LEASES - Additional Information (Details) | Dec. 31, 2022 |
Minimum | |
Leases [Line Items] | |
Operating lease, term | 1 year |
Maximum | |
Leases [Line Items] | |
Operating lease, term | 12 years |
LEASES - Schedule of Lease-rela
LEASES - Schedule of Lease-related Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Line Items] | ||
Right-of-use assets | $ 74,660 | $ 86,484 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating lease liabilities | $ 85,977 | $ 97,836 |
Office leases | ||
Leases [Line Items] | ||
Right-of-use assets | 74,603 | 86,231 |
Operating lease liabilities | 85,892 | 97,551 |
Equipment | ||
Leases [Line Items] | ||
Right-of-use assets | 57 | 253 |
Operating lease liabilities | $ 85 | $ 285 |
LEASES - Summary of Components
LEASES - Summary of Components of Gross Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 26,085 | $ 25,311 |
Short-term lease cost | 3,374 | 2,334 |
Variable lease cost | 4,664 | 3,821 |
Total lease cost | $ 34,123 | $ 31,466 |
LEASES - Summary of Weighted-av
LEASES - Summary of Weighted-average Lease Term and Discount Rate Used (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted-average lease term (years) | 5 years 8 months 12 days | 6 years 1 month 6 days |
Weighted-average discount rate | 4% | 3.80% |
LEASES- Summary of Supplemental
LEASES- Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Cash paid for operating leases | $ 15,972 | $ 21,705 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 16,008 | $ 18,839 |
LEASES - Summary of Future Comm
LEASES - Summary of Future Commitments by Year for Long-term Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 23,646 | |
2024 | 18,021 | |
2025 | 13,506 | |
2026 | 10,135 | |
2027 | 8,538 | |
Thereafter | 22,250 | |
Total future minimum lease payments | 96,096 | |
Less: imputed interest | (10,119) | |
Total lease liabilities | $ 85,977 | $ 97,836 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Summary of Activity in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 175,144 | $ 62,834 |
Measurement period adjustment to goodwill | (1,710) | 0 |
Goodwill acquired | 3,335 | 112,310 |
Ending balance | 176,769 | $ 175,144 |
Measurement period adjustment to income tax receivable | $ 1,700 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment charge | $ 0 | $ 0 |
Amortization of intangible assets | $ 8,000,000 | $ 4,000,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 45,000 | |
Accumulated Amortization | 11,925 | |
Net Intangibles | $ 33,075 | $ 41,025 |
Weighted Average Amortization Period (Years) | 4 years 3 months 18 days | |
Referral network | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 42,300 | |
Accumulated Amortization | 10,575 | |
Net Intangibles | $ 31,725 | |
Weighted Average Amortization Period (Years) | 4 years 2 months 12 days | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 2,700 | |
Accumulated Amortization | 1,350 | |
Net Intangibles | $ 1,350 | |
Weighted Average Amortization Period (Years) | 1 month 6 days |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Expected Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2023 | $ 7,950 | |
2024 | 7,500 | |
2025 | 7,050 | |
2026 | 7,050 | |
2027 | 3,525 | |
Net Intangibles | $ 33,075 | $ 41,025 |
INVESTOR RESERVES - Schedule of
INVESTOR RESERVES - Schedule of Activity of Investor Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investor Reserves [Roll Forward] | ||
Balance — beginning of year | $ 18,437 | $ 14,535 |
Benefit from investor reserves | (9,219) | (7,694) |
Investor reserves acquired from RMS | 0 | 1,507 |
Provision for investor reserves | 6,876 | 10,089 |
Balance — end of year | $ 16,094 | $ 18,437 |
WAREHOUSE LINES OF CREDIT - Sum
WAREHOUSE LINES OF CREDIT - Summary of Warehouse Lines of Credit (Details) - Warehouse Agreement Borrowings - Line of Credit - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Mar. 09, 2023 | Mar. 11, 2022 | Dec. 31, 2021 | |
Warehouse Lines of Credit [Line Items] | ||||
Warehouse lines of credit | $ 714,801,000 | $ 1,928,543,000 | ||
Prepaid commitment fees | (1,650,000) | (1,065,000) | ||
Total | 713,151,000 | 1,927,478,000 | ||
Master Repurchase Facility Agreement, $600 Million, Due January 2023 | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | 600,000,000 | |||
Warehouse lines of credit | 47,565,000 | 472,646,000 | ||
Master Repurchase Facility Agreement $150 Million Due August 2023 | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | 150,000,000 | |||
Warehouse lines of credit | 10,848,000 | 147,750,000 | ||
Minimum deposit required for line of credit | 750,000 | |||
Master Repurchase Facility Agreement $300 Million Due March 2023 | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | 300,000,000 | |||
Warehouse lines of credit | 189,512,000 | 295,444,000 | ||
Minimum deposit required for line of credit | 1,500,000 | |||
Master Repurchase Facility Agreement $200 Million Due May 2023 | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | 200,000,000 | |||
Warehouse lines of credit | $ 110,605,000 | 146,182,000 | ||
Master Repurchase Facility Agreement $200 Million Due May 2023 | Secured Overnight Financing Rate (SOFR) | ||||
Warehouse Lines of Credit [Line Items] | ||||
Variable rate, floor | 0.25% | |||
Master Repurchase Facility Agreement $200 Million Due September 2023 | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | $ 200,000,000 | |||
Warehouse lines of credit | $ 16,131,000 | 133,772,000 | ||
Master Repurchase Facility Agreement $200 Million Due September 2023 | Secured Overnight Financing Rate (SOFR) | ||||
Warehouse Lines of Credit [Line Items] | ||||
Variable rate, floor | 0.40% | |||
Master Repurchase Facility Agreement $400 Million Due June 2023 Member | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | $ 400,000,000 | |||
Warehouse lines of credit | $ 81,353,000 | 377,416,000 | ||
Master Repurchase Facility Agreement $400 Million Due June 2023 Member | Subsequent Event | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | $ 300,000,000 | |||
Master Repurchase Facility Agreement $400 Million Due June 2023 Member | Secured Overnight Financing Rate (SOFR) | ||||
Warehouse Lines of Credit [Line Items] | ||||
Variable rate, floor | 0.50% | |||
Master Repurchase Facility Agreement $100 Million Due April 2023 | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | $ 100,000,000 | |||
Warehouse lines of credit | $ 56,237,000 | 117,935,000 | ||
Master Repurchase Facility Agreement $100 Million Due April 2023 | Secured Overnight Financing Rate (SOFR) | ||||
Warehouse Lines of Credit [Line Items] | ||||
Variable rate, floor | 0.25% | |||
Master Repurchase Facility Agreement $50 Million 30 Days From Written Notice | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | $ 50,000,000 | |||
Warehouse lines of credit | $ 0 | 136,173,000 | ||
Maturity, period from written notice | 30 days | |||
Master Repurchase Facility Agreement $75 Million Due March 2025 | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | $ 75,000,000 | |||
Warehouse lines of credit | $ 40,096,000 | 33,452,000 | ||
Interest rate | 3.375% | |||
Maximum term of buyout transactions on facility | 4 years | |||
Master Repurchase Facility Agreement $200 Million | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | $ 200,000,000 | |||
Warehouse lines of credit | 0 | 26,947,000 | ||
Master Repurchase Facility Agreement $200 Million Due on Demand | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | 200,000,000 | |||
Warehouse lines of credit | 162,454,000 | 35,099,000 | ||
Master Repurchase Facility Agreement $200 Million Due on Demand | Secured Overnight Financing Rate (SOFR) | ||||
Warehouse Lines of Credit [Line Items] | ||||
Variable rate, floor | 0.75% | |||
Master Repurchase Facility Agreement $75 Million | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | 75,000,000 | |||
Warehouse lines of credit | $ 0 | $ 5,727,000 | ||
Master Repurchase Facility Agreement $345 Million, Due January 2024 | Subsequent Event | ||||
Warehouse Lines of Credit [Line Items] | ||||
Borrowing capacity | $ 345,000,000 |
WAREHOUSE LINES OF CREDIT - Add
WAREHOUSE LINES OF CREDIT - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Warehouse Lines of Credit [Line Items] | ||
Warehouse lines of credit | $ 713,151,000 | $ 1,927,478,000 |
Warehouse Agreement Borrowings | Line of Credit | ||
Warehouse Lines of Credit [Line Items] | ||
Weighted average interest rate | 3.30% | 2.40% |
Cash balances | $ 50,700,000 | $ 46,700,000 |
Line of Credit | ||
Warehouse Lines of Credit [Line Items] | ||
Warehouse lines of credit | $ 0 | $ 0 |
NOTES PAYABLE - Additional Info
NOTES PAYABLE - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021 | Jan. 31, 2014 | Dec. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2017 | |
Term Note | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 175,000,000 | ||||||
Maximum amount of committed to increase | 76,500,000 | ||||||
Long-term line of credit | 76,500,000 | $ 106,300,000 | $ 125,000,000 | ||||
Periodic payment, principal, percentage of outstanding balance | 5% | ||||||
New Term Note | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of committed to increase | $ 125,000,000 | ||||||
Federal Funds Rate | Term Note | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument variable rate | 0.50% | ||||||
Eurodollar Base Rate | Term Note | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument variable rate | 1% | ||||||
Government National Mortgage Association | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Unused facility fee percentage | 50% | ||||||
Line of credit facility, maximum borrowing capacity | $ 135,000,000 | ||||||
Maximum amount of committed to increase | $ 200,000,000 | ||||||
Long-term line of credit | $ 20,000,000 | 60,000,000 | |||||
Federal Home Loan Mortgage Corporation | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Unused facility fee percentage | 35% | ||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | $ 65,000,000 | $ 25,000,000 | ||||
Long-term line of credit | $ 0 | $ 65,000,000 | |||||
Federal Home Loan Mortgage Corporation | Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, floor | 0.50% | 0.50% |
NOTES PAYABLE- Summary of Minim
NOTES PAYABLE- Summary of Minimum Calendar Year Payments of Term Note (Details) - Term Note $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 25,000 |
2024 | 81,250 |
Total | $ 106,250 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax expense (benefit): | ||
Federal | $ (199) | $ 48,368 |
State | 870 | 13,346 |
Current tax expense | 671 | 61,714 |
Deferred tax expense: | ||
Federal | 72,764 | 31,568 |
State | 17,954 | 9,867 |
Deferred tax expense | 90,718 | 41,435 |
Income tax expense | $ 91,389 | $ 103,149 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets, valuation allowance | $ 0 | $ 0 |
Unrecognized tax benefits | 0 | $ 0 |
Changes in unrecognized tax benefits | 0 | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 50,100,000 | |
Tax credit carryforwards | 500,000 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 35,700,000 | |
Tax credit carryforwards | $ 400,000 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Recorded Income Tax Expense of Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Income tax expense at federal statutory rate | $ 88,204 | $ 81,254 |
State income taxes, net of federal tax benefit | 16,297 | 19,449 |
Contingent consideration | (9,480) | 0 |
Nondeductible compensation | (876) | 2,092 |
Permanent items | (2,150) | 789 |
Federal and state tax credits, net of federal tax benefit | (520) | (648) |
Other, net | (86) | 213 |
Income tax expense | $ 91,389 | $ 103,149 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Income tax expense at federal statutory rate | 21% | 21% |
State income taxes, net of federal tax benefit | 3.90% | 5% |
Contingent consideration | (2.30%) | 0% |
Nondeductible compensation | (0.20%) | 0.50% |
Permanent items | (0.50%) | 0.20% |
Federal and state tax credits, net of federal tax benefit | (0.10%) | (0.20%) |
Other, net | 0% | 0.20% |
Income tax expense percentage | 21.80% | 26.70% |
INCOME TAXES - Schedule of Tax
INCOME TAXES - Schedule of Tax Effects of Significant Temporary Differences to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Investor reserves | $ 8,304 | $ 8,979 |
Accrued compensation and benefits | 3,695 | 3,249 |
Derivatives, net | 515 | 0 |
Deferred compensation | 16,519 | 16,522 |
Lease liability | 21,551 | 24,727 |
Other accrued liabilities | 0 | 195 |
R&D credit carryforwards | 836 | 0 |
Net operating loss carryforwards | 12,313 | 0 |
Capitalized research and experimental expenditures | 4,259 | 0 |
Charitable contributions | 135 | 0 |
Total deferred tax assets | 68,127 | 53,672 |
Deferred tax liabilities: | ||
Mortgage servicing rights | (273,101) | (160,966) |
Intangible assets | (1,017) | (3,537) |
Trading securities | (24) | (27) |
Derivatives, net | 0 | (6,542) |
Other accrued liabilities | (5,957) | 0 |
Right-of-use assets | (19,424) | (22,642) |
Property and equipment | (1,567) | (2,203) |
Total deferred tax liabilities | (301,090) | (195,917) |
Net deferred tax liabilities | $ (232,963) | $ (142,245) |
STOCKHOLDERS' EQUITY AND EARN_3
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
May 05, 2022 USD ($) | Dec. 31, 2022 USD ($) vote class $ / shares shares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Number of classes of stock | class | 2 | |
Number of shares excluded from calculation of earnings per share | 0 | |
Stock repurchase program, authorized amount | $ | $ 20 | |
Stock repurchase program, period in force | 24 months | |
Average cost per share (in dollars per share) | $ / shares | $ 10.56 | |
Stock repurchase program, remaining authorized repurchase | $ | $ 14.4 | |
Restricted Stock Units | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Right to receive common stock, upon vesting | 1 | |
Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Common stock, voting rights, votes per share | vote | 1 | |
Class A Common Stock | Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Stock repurchased and retired during period (in shares) | 543,864 | |
Class B Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Common stock, voting rights, votes per share | vote | 10 |
STOCKHOLDERS' EQUITY AND EARN_4
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to Guild, basic | $ 328,598 | $ 283,773 |
Net income attributable to Guild, diluted | $ 328,598 | $ 283,773 |
Weighted-average shares outstanding - basic (in shares) | 60,981 | 60,511 |
Weighted-average shares outstanding - diluted (in shares) | 61,379 | 60,825 |
Basic earnings per share: | ||
Class A and Class B Common Stock (in dollars per share) | $ 5.39 | $ 4.69 |
Diluted earnings per share: | ||
Class A and Class B Common Stock (in dollars per share) | $ 5.35 | $ 4.67 |
Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average shares outstanding - basic (in shares) | 20,648 | 20,178 |
Add dilutive effects of non-vested shares of restricted stock - Class A (in shares) | 398 | 314 |
Class B Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average shares outstanding - basic (in shares) | 40,333 | 40,333 |
STOCK-BASED COMPENSATION AND _3
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 2 Months Ended | 12 Months Ended | ||
Mar. 10, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2020 | |
Subsequent Event | ||||
Stock Based Compensation And Employee Benefit Plans [Line Items] | ||||
Cash distribution paid | $ 5.8 | |||
401(K) Profit Sharing Plan | ||||
Stock Based Compensation And Employee Benefit Plans [Line Items] | ||||
Company contribution | $ 8.8 | $ 10.2 | ||
Restricted Stock Units | ||||
Stock Based Compensation And Employee Benefit Plans [Line Items] | ||||
Compensation costs recognized | 7.3 | 6 | ||
Expense, tax benefit | 1.4 | $ 1 | ||
Unrecognized compensation costs | $ 13 | |||
Restricted stock grants expected to recognition period | 1 year 10 months 24 days | |||
Restricted Stock Units | Second Anniversary | ||||
Stock Based Compensation And Employee Benefit Plans [Line Items] | ||||
Award vesting rights percentage | 25% | |||
Restricted Stock Units | Third Anniversary | ||||
Stock Based Compensation And Employee Benefit Plans [Line Items] | ||||
Award vesting rights percentage | 25% | |||
Restricted Stock Units | Fourth Anniversary | ||||
Stock Based Compensation And Employee Benefit Plans [Line Items] | ||||
Award vesting rights percentage | 50% | |||
Restricted Stock Units | Maximum | ||||
Stock Based Compensation And Employee Benefit Plans [Line Items] | ||||
Vesting period | 3 years | |||
2020 Omnibus Incentive Plan | ||||
Stock Based Compensation And Employee Benefit Plans [Line Items] | ||||
Reserves for issuance of shares of common stock | 5.5 | |||
Number of shares available for grant (in shares) | 3.3 | |||
Period after which plan terminates | 10 years |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Summary of Unvested Restricted Stock (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,585,947 |
Granted (in shares) | shares | 689,476 |
Vested (in shares) | shares | (520,142) |
Forfeited (in shares) | shares | (68,649) |
Ending balance (in shares) | shares | 1,686,632 |
Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 14.95 |
Granted (in dollars per share) | $ / shares | 9.23 |
Vested (in dollars per share) | $ / shares | 13.96 |
Forfeited (in dollars per share) | $ / shares | 13.48 |
Ending balance (in dollars per share) | $ / shares | $ 12.78 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Total commitments to originate loans | $ 0.8 | $ 2.4 |
Total commitments related to derivatives | $ 1.1 | $ 3.2 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Note due to related party | $ 530 | $ 2,614 | |
Executive | |||
Related Party Transaction [Line Items] | |||
One-time payment | $ 2,000 | ||
Payments to related party | 2,100 | $ 2,100 | |
Note due to related party | $ 500 | ||
Debt Instrument, Term | 1 year 4 months | ||
Guild Mortgage Company, LLC | |||
Related Party Transaction [Line Items] | |||
Number of shares sold | 13.7038 | ||
Promissory note | $ 8,000 |
MINIMUM NET WORTH REQUIREMENTS
MINIMUM NET WORTH REQUIREMENTS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Mortgage Banking [Abstract] | ||
Minimum adjusted net worth balance required | $ 86,951 | $ 84,482 |
SEGMENTS - Additional Informati
SEGMENTS - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 state segment loan | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 2 |
Servicing Segment | |
Segment Reporting Information [Line Items] | |
Number of states in which entity operates | state | 49 |
Minimum | Servicing | |
Segment Reporting Information [Line Items] | |
Number of loans serviced | loan | 1 |
SEGMENTS - Summary of Financial
SEGMENTS - Summary of Financial Performance and Results by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||
Loan origination fees and gain on sale of loans, net | $ 703,674 | $ 1,480,516 |
Loan servicing and other fees | 223,403 | 194,759 |
Valuation adjustment of mortgage servicing rights | 217,551 | (101,572) |
Interest income (expense) | 18,904 | 2,520 |
Other income, net | 1,289 | 87 |
Net revenue | 1,164,821 | 1,576,310 |
Expenses | ||
Salaries, incentive compensation and benefits | 619,185 | 1,019,790 |
General and administrative | 38,085 | 91,291 |
Occupancy, equipment and communication | 71,707 | 67,328 |
Depreciation and amortization | 15,525 | 11,488 |
Provision for (reversal of) foreclosure losses | 300 | (518) |
Income tax expense | 91,389 | 103,149 |
Net income | 328,630 | 283,782 |
Operating Segments | ||
Revenue | ||
Loan origination fees and gain on sale of loans, net | 703,674 | 1,480,516 |
Loan servicing and other fees | 223,403 | 194,759 |
Valuation adjustment of mortgage servicing rights | 217,551 | (101,572) |
Interest income (expense) | 25,580 | 8,700 |
Other income, net | 1,089 | 106 |
Net revenue | 1,171,297 | 1,582,509 |
Expenses | ||
Salaries, incentive compensation and benefits | 591,195 | 981,469 |
General and administrative | 24,906 | 81,202 |
Occupancy, equipment and communication | 67,375 | 61,914 |
Depreciation and amortization | 14,543 | 10,061 |
Provision for (reversal of) foreclosure losses | 300 | (518) |
Income tax expense | 0 | 0 |
Net income | 472,978 | 448,381 |
Corporate, Non-Segment | ||
Revenue | ||
Loan origination fees and gain on sale of loans, net | 0 | 0 |
Loan servicing and other fees | 0 | 0 |
Valuation adjustment of mortgage servicing rights | 0 | 0 |
Interest income (expense) | (6,676) | (6,180) |
Other income, net | 200 | (19) |
Net revenue | (6,476) | (6,199) |
Expenses | ||
Salaries, incentive compensation and benefits | 27,990 | 38,321 |
General and administrative | 13,179 | 10,089 |
Occupancy, equipment and communication | 4,332 | 5,414 |
Depreciation and amortization | 982 | 1,427 |
Provision for (reversal of) foreclosure losses | 0 | 0 |
Income tax expense | 91,389 | 103,149 |
Net income | (144,348) | (164,599) |
Origination | Operating Segments | ||
Revenue | ||
Loan origination fees and gain on sale of loans, net | 697,822 | 1,468,465 |
Loan servicing and other fees | 0 | 0 |
Valuation adjustment of mortgage servicing rights | 0 | 0 |
Interest income (expense) | 20,115 | 16,582 |
Other income, net | (57) | (4) |
Net revenue | 717,880 | 1,485,043 |
Expenses | ||
Salaries, incentive compensation and benefits | 562,194 | 953,772 |
General and administrative | 15,249 | 71,480 |
Occupancy, equipment and communication | 62,556 | 57,718 |
Depreciation and amortization | 13,889 | 9,319 |
Provision for (reversal of) foreclosure losses | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 63,992 | 392,754 |
Servicing | Operating Segments | ||
Revenue | ||
Loan origination fees and gain on sale of loans, net | 5,852 | 12,051 |
Loan servicing and other fees | 223,403 | 194,759 |
Valuation adjustment of mortgage servicing rights | 217,551 | (101,572) |
Interest income (expense) | 5,465 | (7,882) |
Other income, net | 1,146 | 110 |
Net revenue | 453,417 | 97,466 |
Expenses | ||
Salaries, incentive compensation and benefits | 29,001 | 27,697 |
General and administrative | 9,657 | 9,722 |
Occupancy, equipment and communication | 4,819 | 4,196 |
Depreciation and amortization | 654 | 742 |
Provision for (reversal of) foreclosure losses | 300 | (518) |
Income tax expense | 0 | 0 |
Net income | $ 408,986 | $ 55,627 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ in Millions | 1 Months Ended |
Feb. 28, 2023 USD ($) | |
Subsequent Event | Legacy Mortgage LLC | |
Subsequent Event [Line Items] | |
Cash paid at closing of the transaction | $ 2.9 |