Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, $0.01 par value per share | |
Trading Symbol | GHLD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001821160 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 20,763,818 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 40,333,019 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 114,352 | $ 137,891 |
Restricted cash | 3,532 | 8,863 |
Mortgage loans held for sale | 932,771 | 845,775 |
Reverse mortgage loans held for investment | 81,457 | 0 |
Ginnie Mae loans subject to repurchase right | 639,023 | 650,179 |
Accounts, notes and interest receivable | 63,649 | 58,304 |
Derivative assets | 24,401 | 3,120 |
Mortgage servicing rights, net | 1,258,313 | 1,139,539 |
Intangible assets, net | 27,113 | 33,075 |
Goodwill | 186,183 | 176,769 |
Other assets | 165,839 | 186,076 |
Total assets | 3,496,633 | 3,239,591 |
Liabilities and stockholders’ equity | ||
Warehouse lines of credit | 839,122 | 713,151 |
HMBS-related borrowings | 71,278 | 0 |
Ginnie Mae loans subject to repurchase right | 639,370 | 650,179 |
Accounts payable and accrued expenses | 33,194 | 34,095 |
Accrued compensation and benefits | 33,600 | 29,597 |
Investor reserves | 20,022 | 16,094 |
Contingent liabilities due to acquisitions | 7,239 | 526 |
Derivative liabilities | 0 | 5,173 |
Operating lease liabilities | 80,287 | 85,977 |
Deferred compensation plan | 95,394 | 95,769 |
Deferred tax liabilities | 251,384 | 232,963 |
Total liabilities | 2,219,656 | 1,990,304 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 47,529 | 42,727 |
Retained earnings | 1,228,361 | 1,205,885 |
Non-controlling interests | 479 | 66 |
Total stockholders’ equity | 1,276,977 | 1,249,287 |
Total liabilities and stockholders’ equity | 3,496,633 | 3,239,591 |
Nonrelated Party | ||
Liabilities and stockholders’ equity | ||
Notes payable | 148,766 | 126,250 |
Related Party | ||
Liabilities and stockholders’ equity | ||
Notes payable | 0 | 530 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock | 205 | 206 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock | $ 403 | $ 403 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
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) | 20,558,055 | 20,583,130 |
Common stock, shares, outstanding (in shares) | 20,558,055 | 20,583,130 |
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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | ||||
Loan origination fees and gain on sale of loans, net | $ 158,126 | $ 154,618 | $ 387,702 | $ 605,229 |
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 2,755 | 0 | 5,061 | 0 |
Loan servicing and other fees | 61,941 | 57,647 | 182,239 | 165,419 |
Valuation adjustment of mortgage servicing rights | 22,077 | 41,764 | (4,904) | 247,439 |
Interest income | 31,348 | 17,575 | 76,177 | 47,661 |
Interest expense | (19,394) | (11,324) | (48,985) | (36,411) |
Other income, net | 404 | 940 | 663 | 1,182 |
Net revenue | 257,257 | 261,220 | 597,953 | 1,030,519 |
Expenses | ||||
Salaries, incentive compensation and benefits | 142,637 | 137,372 | 398,660 | 502,893 |
General and administrative | 18,809 | 19,412 | 60,140 | 20,153 |
Occupancy, equipment and communication | 18,536 | 17,302 | 54,368 | 54,587 |
Depreciation and amortization | 3,664 | 3,895 | 11,063 | 11,616 |
Provision for (reversal of) foreclosure losses | 84 | (3,449) | 554 | (1,974) |
Total expenses | 183,730 | 174,532 | 524,785 | 587,275 |
Income before income tax expense | 73,527 | 86,688 | 73,168 | 443,244 |
Income tax expense | 19,284 | 9,321 | 19,184 | 99,615 |
Net income (loss) | 54,243 | 77,367 | 53,984 | 343,629 |
Net (loss) income attributable to non-controlling interests | (6) | (7) | (11) | 25 |
Net income attributable to Guild | $ 54,249 | $ 77,374 | $ 53,995 | $ 343,604 |
Net income per share attributable to Class A and Class B Common Stock: | ||||
Basic (in dollars per share) | $ 0.89 | $ 1.27 | $ 0.89 | $ 5.63 |
Diluted (in dollars per share) | $ 0.88 | $ 1.26 | $ 0.87 | $ 5.56 |
Weighted average shares outstanding of Class A and Class B Common Stock: | ||||
Basic (in shares) | 60,956 | 60,893 | 60,940 | 61,004 |
Diluted (in shares) | 61,913 | 61,563 | 61,976 | 61,806 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - 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, 2021 | 20,723,912 | 40,333,019 | ||||||
Beginning balance at Dec. 31, 2021 | $ 920,013 | $ 207 | $ 403 | $ 42,175 | $ 877,194 | $ 34 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 1,272 | 1,272 | ||||||
Dividend equivalents on unvested restricted stock units forfeited | 0 | (40) | 40 | |||||
Net income (loss) | 207,973 | 207,958 | 15 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 20,723,912 | 40,333,019 | ||||||
Ending balance at Mar. 31, 2022 | 1,129,258 | $ 207 | $ 403 | 43,407 | 1,085,192 | 49 | ||
Beginning balance (in shares) at Dec. 31, 2021 | 20,723,912 | 40,333,019 | ||||||
Beginning balance at Dec. 31, 2021 | 920,013 | $ 207 | $ 403 | 42,175 | 877,194 | 34 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 343,629 | |||||||
Ending balance (in shares) at Sep. 30, 2022 | 20,477,053 | 40,333,019 | ||||||
Ending balance at Sep. 30, 2022 | 1,265,591 | $ 205 | $ 403 | 44,061 | 1,220,863 | 59 | ||
Beginning balance (in shares) at Mar. 31, 2022 | 20,723,912 | 40,333,019 | ||||||
Beginning balance at Mar. 31, 2022 | 1,129,258 | $ 207 | $ 403 | 43,407 | 1,085,192 | 49 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 1,728 | 1,728 | ||||||
Dividend equivalents on unvested restricted stock units forfeited | 0 | (25) | 25 | |||||
Vesting of restricted stock units (in shares) | 34,055 | |||||||
Repurchase and retirement of Class A common stock (in shares) | (141,952) | |||||||
Repurchase and retirement of Class A common stock | (1,445) | $ (1) | (1,444) | |||||
Net income (loss) | 58,289 | 58,272 | 17 | |||||
Ending balance (in shares) at Jun. 30, 2022 | 20,616,015 | 40,333,019 | ||||||
Ending balance at Jun. 30, 2022 | 1,187,830 | $ 206 | $ 403 | 43,666 | 1,143,489 | 66 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 1,917 | 1,917 | ||||||
Repurchase and retirement of Class A common stock (in shares) | (138,962) | |||||||
Repurchase and retirement of Class A common stock | (1,523) | $ (1) | (1,522) | |||||
Net income (loss) | 77,367 | 77,374 | (7) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 20,477,053 | 40,333,019 | ||||||
Ending balance at Sep. 30, 2022 | 1,265,591 | $ 205 | $ 403 | 44,061 | 1,220,863 | 59 | ||
Beginning balance (in shares) at Dec. 31, 2022 | 20,583,130 | 40,333,019 | 20,583,130 | 40,333,019 | ||||
Beginning balance at Dec. 31, 2022 | 1,249,287 | $ 206 | $ 403 | 42,727 | 1,205,885 | 66 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 1,756 | 1,756 | ||||||
Vesting of restricted stock units (in shares) | 333 | |||||||
Shares of Class A common stock withheld related to net share settlement (in shares) | (137) | |||||||
Shares of Class A common stock withheld related to net share settlement | (1) | (1) | ||||||
Repurchase and retirement of Class A common stock (in shares) | (50,166) | |||||||
Repurchase and retirement of Class A common stock | (568) | $ (1) | (567) | |||||
Net income (loss) | (37,195) | (37,190) | (5) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 20,533,160 | 40,333,019 | ||||||
Ending balance at Mar. 31, 2023 | 1,213,279 | $ 205 | $ 403 | 43,915 | 1,168,695 | 61 | ||
Beginning balance (in shares) at Dec. 31, 2022 | 20,583,130 | 40,333,019 | 20,583,130 | 40,333,019 | ||||
Beginning balance at Dec. 31, 2022 | 1,249,287 | $ 206 | $ 403 | 42,727 | 1,205,885 | 66 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase and retirement of Class A common stock (in shares) | (188,841) | |||||||
Net income (loss) | 53,984 | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 20,558,055 | 40,333,019 | 20,558,055 | 40,333,019 | ||||
Ending balance at Sep. 30, 2023 | 1,276,977 | $ 205 | $ 403 | 47,529 | 1,228,361 | 479 | ||
Beginning balance (in shares) at Mar. 31, 2023 | 20,533,160 | 40,333,019 | ||||||
Beginning balance at Mar. 31, 2023 | 1,213,279 | $ 205 | $ 403 | 43,915 | 1,168,695 | 61 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 2,323 | 2,323 | ||||||
Dividend equivalents on unvested restricted stock units forfeited | 0 | (23) | 23 | |||||
Vesting of restricted stock units (in shares) | 211,733 | |||||||
Vesting of restricted stock units | 0 | $ 2 | (2) | |||||
Shares of Class A common stock withheld related to net share settlement (in shares) | (48,163) | |||||||
Shares of Class A common stock withheld related to net share settlement | (523) | (523) | ||||||
Repurchase and retirement of Class A common stock (in shares) | (51,588) | |||||||
Repurchase and retirement of Class A common stock | (550) | $ (1) | (549) | |||||
Net income (loss) | 36,936 | 36,936 | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 20,645,142 | 40,333,019 | ||||||
Ending balance at Jun. 30, 2023 | 1,251,465 | $ 206 | $ 403 | 45,141 | 1,205,654 | 61 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 2,338 | 2,338 | ||||||
Dividends paid on Class A and Class B common stock ($0.50 per share) | (30,479) | (30,479) | ||||||
Dividend equivalents on unvested restricted stock units, net of forfeitures | 0 | 1,063 | (1,063) | |||||
Repurchase and retirement of Class A common stock (in shares) | (87,087) | |||||||
Repurchase and retirement of Class A common stock | (1,014) | $ (1) | (1,013) | |||||
Non-controlling interest related to consolidated joint venture | 424 | 424 | ||||||
Net income (loss) | 54,243 | 54,249 | (6) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 20,558,055 | 40,333,019 | 20,558,055 | 40,333,019 | ||||
Ending balance at Sep. 30, 2023 | $ 1,276,977 | $ 205 | $ 403 | $ 47,529 | $ 1,228,361 | $ 479 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) | 3 Months Ended |
Sep. 30, 2023 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock dividends paid (in dollars per share) | $ 0.50 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 53,984 | $ 343,629 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 11,063 | 11,616 |
Valuation adjustment of mortgage servicing rights | 4,904 | (247,439) |
Valuation adjustment of mortgage loans held for sale | 3,611 | 65,297 |
Valuation adjustment of reverse mortgage loans held for investment and HMBS-related borrowings | (5,061) | 0 |
Unrealized gain on derivatives | (26,454) | (22,366) |
Amortization of right-of-use assets | 16,219 | 12,408 |
Provision for investor reserves | 8,047 | 679 |
Provision for (reversal of) foreclosure losses | 554 | (1,974) |
Valuation adjustment of contingent liabilities, net due to acquisitions | 865 | (45,075) |
Gain on sale of mortgage loans excluding fair value of other financial instruments, net | (247,547) | (440,974) |
Earnings from unconsolidated joint ventures, net of distributions received | (165) | 0 |
Paid-in-kind interest income | (156) | 0 |
Deferred income taxes | 18,420 | 98,373 |
Other | 1,637 | (8,277) |
Benefit from investor reserves | (4,119) | (3,101) |
Foreclosure loss reserve | (3,058) | (1,436) |
Stock-based compensation | 6,417 | 4,917 |
Changes in operating assets and liabilities: | ||
Origination of mortgage loans held for sale | (10,910,122) | (16,265,741) |
Proceeds on sale of and payments from mortgage loans held for sale | 11,067,062 | 17,916,073 |
Accounts, notes and interest receivable | 17,212 | 39,674 |
Other assets | 3,497 | (2,945) |
Mortgage servicing rights | (123,678) | (206,772) |
Accounts payable and accrued expenses | (2,827) | (15,932) |
Accrued compensation and benefits | 3,602 | (39,622) |
Income taxes | 18,210 | 4,938 |
Contingent liability payments | 0 | (7,125) |
Operating lease liabilities | (16,810) | (12,075) |
Deferred compensation plan liability | (4,663) | 4,530 |
Real estate owned, net | (1,315) | (199) |
Net cash (used in) provided by operating activities | (110,671) | 1,181,081 |
Cash flows from investing activities | ||
Acquisition of businesses | (8,030) | 0 |
Origination and purchase of reverse mortgage loans held for investment | (77,297) | 0 |
Principal payments received on reverse mortgage loans held for investment | 734 | 0 |
Investments in unconsolidated joint ventures | (913) | 0 |
Distributions received from unconsolidated joint ventures in excess of cumulative earnings | 236 | 0 |
Excess cash received over cash paid for investment in consolidated joint venture | 320 | 0 |
Issuance of notes receivable | (16,250) | 0 |
Proceeds from the sale of property and equipment | 3 | 177 |
Purchases of property and equipment | (4,647) | (3,158) |
Net cash used in investing activities | (105,844) | (2,981) |
Cash flows from financing activities | ||
Borrowings on warehouse lines of credit | 11,078,901 | 16,006,430 |
Repayments on warehouse lines of credit | (10,951,552) | (17,113,148) |
Proceeds from sale of reverse mortgage loans (HECMs) accounted for as HMBS-related obligations | 71,445 | 0 |
Borrowings on MSR notes payable | 148,766 | 0 |
Repayments on MSR notes payable | (126,250) | (137,500) |
Contingent liability payments | 0 | (7,300) |
Net change in notes payable | (530) | (1,784) |
Taxes paid related to net share settlement of equity awards | (524) | 0 |
Repurchases of Class A common stock | (2,132) | (2,968) |
Dividends paid | (30,479) | 0 |
Net cash provided by (used in) financing activities | 187,645 | (1,256,270) |
Decrease in cash, cash equivalents and restricted cash | (28,870) | (78,170) |
Cash, cash equivalents and restricted cash, beginning of period | 146,754 | 248,120 |
Cash, cash equivalents and restricted cash, end of period | 117,884 | 169,950 |
Cash, cash equivalents and restricted cash at end of period are comprised of the following: | ||
Cash and cash equivalents | 114,352 | 162,198 |
Restricted cash | 3,532 | 7,752 |
Total cash, cash equivalents and restricted cash | 117,884 | 169,950 |
Supplemental information | ||
Cash paid for interest, net | 12,091 | 26,291 |
Cash paid for income taxes, net of refunds | (17,438) | (3,745) |
Supplemental disclosure of non-cash investing activities: | ||
Measurement period adjustments to goodwill | $ 760 | $ (1,710) |
BUSINESS, BASIS OF PRESENTATION
BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Guild Holdings Company, including its consolidated subsidiaries (collectively, “Guild” or the “Company”) originates, sells, and services residential mortgage loans within the United States. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with U.S. generally accepted accounting principles (“GAAP”) applicable to interim financial statements. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results of the interim period. The condensed consolidated balance sheet data as of December 31, 2022 was derived from audited financial statements but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The Company follows the same accounting policies for preparing quarterly and annual reports. Principles of Consolidation The Company's condensed consolidated financial statements include the accounts of the Company, Guild Mortgage Company LLC ("GMC") and their consolidated subsidiaries, variable interest entities ("VIE") of which the Company is the primary beneficiary, and joint ventures in which the Company has a majority voting interest and control. The Company evaluates its relationships and investments to determine if it is the primary beneficiary of a VIE. 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 carrying amount of the consolidated VIEs' and consolidated joint ventures' assets and liabilities were immaterial as of September 30, 2023. All intercompany accounts and transactions have been eliminated in consolidation. Investments in Unconsolidated Joint Ventures The Company has investments in unconsolidated joint ventures involved in the mortgage lending business, which are included in other assets in the Condensed Consolidated Balance Sheets. The Company's investments in these unconsolidated joint ventures are accounted for under the equity method of accounting as the Company does not have a majority voting interest, operational control or financial control. As a result, the Company does not recognize the assets and liabilities of these unconsolidated joint ventures in its financial statements. The Company's share of the net earnings or losses of the investee are included in other income, net in the Condensed Consolidated Statements of Income. The Company classifies distributions received from its unconsolidated joint ventures using the cumulative earnings approach. Distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities. 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. Escrow and Fiduciary Funds As 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 Condensed Consolidated Balance Sheets. These accounts totaled $1.0 billion and $0.6 billion at September 30, 2023 and December 31, 2022, respectively. Common Stock Cash Dividend The Company declared and paid dividends of $0.50 per share on its Class A and Class B common stock during the third quarter of 2023 totaling $30.5 million. Non-vested restricted stock units ("RSUs") under the 2020 Omnibus Incentive Plan have rights to dividends, which entitle holders to the same dividend value per share as holders of common shares 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 dividend, Guild issued 95,413 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. Reverse Mortgage Loans Held for Investment and HMBS-Related Borrowings, Net In April 2023, the Company acquired certain assets of Cherry Creek Mortgage, LLC ("CCM") (see Note 3 - Acquisitions), which expanded its range of services by offering reverse mortgages to its customers. Reverse mortgage loans are residential mortgage loans for which neither principal nor interest is due until the borrower dies, the home is sold, or other trigger events occur. Reverse mortgage loans can have either fixed interest rates or adjustable interest rates. In the case of most fixed-rate reverse mortgage loans, the borrower must draw the loan proceeds up front in one lump sum, while many adjustable-rate mortgage loans provide the borrower with a line of credit that can be drawn over time. The Company has elected to measure these loans at fair value, on a recurring basis, with changes in fair value recorded as a charge or credit to gain on reverse mortgage loans held for investment and HMBS-related borrowings, net in the Condensed Consolidated Statements of Income. The Company securitizes home equity conversion mortgages ("HECM") into Home Equity Conversion Mortgage-Backed Securities (“HMBS”), which Ginnie Mae guarantees, and sells them in the secondary market while retaining the rights to service. The Company has determined that HECM loans transferred under the current Ginnie Mae HMBS securitization program do not meet the requirements for sale accounting under Accounting Standards Codification ("ASC 860"), Transfers and Servicing, and are therefore not derecognized upon date of transfer. The Ginnie Mae HMBS securitization program includes certain terms that do not meet the participating interest requirements and require or provide an option for the Company to reacquire the loans prior to maturity. Due to these terms, the transfer of the loans does not meet the requirements of sale accounting. As a result, the Company accounts for HECM loans transferred into HMBS securitizations as secured borrowings and continues to recognize the loans as held for investment, along with the corresponding liability for the HMBS related obligations. As an issuer of HMBS, we are required to repurchase reverse loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the maximum claim amount (“MCA”) (referred to as unpoolable loans). Performing repurchased loans are conveyed to the United States Department of Housing and Urban Development ("HUD") and payment is received from HUD typically within 75 days of repurchase. Nonperforming repurchased loans are generally liquidated through foreclosure, subsequent sale of the real estate owned, and claim submissions to HUD. Gain on Reverse Mortgage Loans Held for Investment and HMBS-Related Borrowings, Net The Company has elected to measure the HECM loans held for investment and HMBS-related borrowings at fair value on a recurring basis. The fair value gains and losses of the HECM loans and HMBS-related borrowings and the gains and losses on tail securitization are included in gain on reverse mortgage loans held for investment and HMBS-related borrowings, net in the Condensed Consolidated Statements of Income. Tail securitizations are participations in previously securitized HECMs and are created by additions to principal for borrower draws on lines-of-credit (scheduled and unscheduled), interest, servicing fees, and mortgage insurance premiums. In addition, gain on reverse mortgage loans held for investment and HMBS-related borrowings, net includes interest income on the securitized HECM loans, interest expense on the HMBS-related borrowings, together with the realized cash gains or losses on tail securitization and the fair value changes related to new reverse mortgage loans through the securitization date. The reverse mortgage loan activity is included in the Company's origination segment. Recent Accounting Standards In August 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-05— Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement (“ASU 2023-05”). ASU 2023-05 applies to the formation of a “joint venture” or a “corporate joint venture” and requires a joint venture to initially measure all contributions received upon its formation at fair value. The guidance does not impact accounting by the venturers. The new guidance is applicable to joint venture entities with a formation date on or after January 1, 2025 on a prospective basis and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the new guidance on its financial statements. In March 2020, the FASB issued ASU No. 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"), 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, Reference 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 31, 2024. Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications. 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. The Company transitioned its funding facilities and financing facilities that utilized LIBOR as the reference rate to alternative reference rates prior to the LIBOR cessation date of June 30, 2023 and there was no material impact on the Company's consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTSFair 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 September 30, 2023 and December 31, 2022, 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 Condensed Consolidated Balance Sheets. Notes Receivable — Notes receivable are classified within Level Three of the valuation hierarchy as the Company's valuation includes significant unobservable inputs, including consideration of estimates of future earn-out payments, discount rates and expectations about settlement. 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 (or "locked") prior to funding. The fair value of IRLCs recorded at lock inception 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 September 30, 2023 and December 31, 2022, was 84.3% and 93.4%, 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. We regularly review our critical estimates and assumptions used in the valuation of our IRLCs. 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. We regularly review our critical estimates and assumptions used in the valuation of our MLHS. Reverse Mortgage Loans Held for Investment — Reverse mortgage loans held for investment are carried at fair value and classified within Level Three of the valuation hierarchy. Fair value is estimated using a present value methodology that discounts estimated projected cash flows over the life of the loan using unobservable inputs which include conditional prepayment rates and discount rates. The conditional prepayment rate assumption is inclusive of voluntary (repayment or payoff) and involuntary (inactive/delinquent status and default) prepayments. The discount rate assumption used is primarily based on an assessment of current market yields on reverse mortgage loan and tail securitizations, expected duration of the asset and current market interest rates. The Company engages a third-party valuation expert to assist in estimating the fair value. See Note 9 for additional information on the Company's reverse mortgage loans held for investment. 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 warrants are initially and subsequently measured at fair value until they are exercised or expire, with material changes in the fair value reported in other income, net in the Condensed Consolidated Statements of Income each reporting period. The Company's investment in warrants is included within other assets in the Condensed 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 September 30, 2023 the risk adjusted discount rate was 25.0% and at December 31, 2022 the range of the risk adjusted discount rate was 14.5% - 25.0%, with a median of 15.0%. 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 Condensed Consolidated Statements of Income. HMBS-Related Borrowings — HMBS-related borrowings are carried at fair value and classified within Level Three of the valuation hierarchy. These borrowings are not actively traded; therefore, quoted market prices are not available. The Company determines fair value using a discounted cash flow model, by discounting the projected payment of principal and interest over the estimated life of the borrowing at a market rate, due to significant unobservable inputs, including conditional prepayment rates and discount rates. The discount rate assumption used is primarily based on an assessment of current market yields for newly issued HMBS, expected duration and current market interest rates. The Company engages a third-party valuation expert to assist in estimating the fair value. See Note 9 for additional information on the Company's HMBS-related borrowings. The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2023: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 89 $ — $ — $ 89 Notes receivable — — 14,809 14,809 Derivative Forward delivery commitments and best efforts sales commitments — 12,182 — 12,182 Interest rate lock commitments — — 12,219 12,219 Mortgage loans held for sale — 932,771 — 932,771 Reverse mortgage loans held for investment — — 81,457 81,457 Mortgage servicing rights — — 1,258,313 1,258,313 Investment in warrants — — 961 961 Total assets at fair value $ 89 $ 944,953 $ 1,367,759 $ 2,312,801 Liabilities: HMBS-related borrowings $ — $ — $ 71,278 $ 71,278 Contingent liabilities due to acquisitions — — 7,239 7,239 Total liabilities at fair value $ — $ — $ 78,517 $ 78,517 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 delivery 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 table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the three and nine months ended September 30, 2023 and 2022: IRLCs Contingent Notes Receivable Balance at June 30, 2023 $ 5,613 $ 7,793 $ 9,824 Net transfers and revaluation gains 6,606 — — Additions — — 5,156 Valuation adjustments — (554) (171) Balance at September 30, 2023 $ 12,219 $ 7,239 $ 14,809 Balance at December 31, 2022 $ 1,518 $ 526 $ — Net transfers and revaluation gains 10,701 — — Additions — 6,103 16,406 Valuation adjustments — 610 (1,597) Balance at September 30, 2023 $ 12,219 $ 7,239 $ 14,809 Balance at June 30, 2022 $ 14,600 $ 1,557 $ — Net transfers and revaluation losses (38,177) — — Payments — (1,884) — Valuation adjustments — 327 Balance at September 30, 2022 $ (23,577) $ — $ — Balance at December 31, 2021 $ 22,119 $ 59,500 $ — Net transfers and revaluation losses (45,696) — — Payments — (14,425) — Valuation adjustments — (45,075) Balance at September 30, 2022 $ (23,577) $ — $ — 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 three and nine months ended September 30, 2023 and 2022. 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 September 30, 2023 and December 31, 2022, the Company had the following financial assets measured at fair value on a non-recurring basis: Ginnie Mae Loans Subject to Repurchase Right — Government National Mortgage Association ("GNMA" or "Ginnie Mae") 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 unpaid principal balance ("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 September 30, 2023: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 639,023 $ — $ 639,023 Total assets at fair value $ — $ 639,023 $ — $ 639,023 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 639,370 $ — $ 639,370 Total liabilities at fair value $ — $ 639,370 $ — $ 639,370 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 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 September 30, 2023 $ 932,771 $ 959,523 $ (26,752) Balance at December 31, 2022 $ 845,775 $ 868,833 $ (23,058) _______________________________ (1) Represents the amount of 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. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS First Centennial Mortgage Corporation On September 11, 2023, the Company acquired certain assets of First Centennial Mortgage Corporation (“FCM”) 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 $2.1 million, which was paid in cash. Cherry Creek Mortgage, LLC. On April 3, 2023, the Company acquired substantially all the assets of Cherry Creek Mortgage, LLC. (“CCM”) under the terms of an asset purchase agreement to expand the Company’s operations throughout the United States. The total fair value of consideration transferred was $8.3 million, which consisted of $2.6 million of cash, contingent consideration of $4.4 million and an original issuance discount on note receivable of $1.3 million. The note receivable issued to CCM in March 2023 represents advances made to CCM (see Note 4 for additional information on the note receivable). Legacy Mortgage, LLC On February 13, 2023, the Company acquired certain assets of Legacy Mortgage, LLC (“Legacy”) under the terms of an asset purchase agreement to expand the Company’s operations in the Southwest region. The total fair value of consideration transferred was $5.0 million, which consisted of $3.3 million of cash and contingent consideration of $1.7 million. The Company does not consider these acquisitions to be material, individually or in the aggregate. The acquisitions were accounted for as business combinations, under which the total purchase price was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their preliminary fair values and the excess was recorded as goodwill. The preliminary fair values are subject to subsequent adjustments during the measurement period, not to exceed one year from the date of acquisition. 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 FCM, CCM and Legacy have been included in the Company’s condensed consolidated financial statements since the date of the acquisitions and did not have a material impact on the Company’s condensed consolidated financial statements and related disclosures. Transaction costs associated with these transactions were not material and were expensed as incurred within general and administrative expenses in the Condensed Consolidated Statements of Income. |
ACCOUNTS, NOTES AND INTEREST RE
ACCOUNTS, NOTES AND INTEREST RECEIVABLE | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS, NOTES AND INTEREST RECEIVABLE | ACCOUNTS, NOTES AND INTEREST RECEIVABLE Accounts, notes and interest receivable consisted of the following: September 30, 2023 December 31, 2022 Trust advances $ 20,814 $ 44,164 Foreclosure advances, net 18,669 12,320 Receivables related to loan sales 2,316 562 Notes receivable and advances 16,604 — Accrued interest - notes receivable 512 — Other 4,734 1,258 Total accounts, notes and interest receivable $ 63,649 $ 58,304 Management has established a foreclosure reserve for estimated uncollectible balances of the foreclosure and trust advances. Management believes that substantially all other accounts, notes 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: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Balance — beginning of period $ 6,659 $ 10,997 $ 8,698 $ 10,355 Utilization of foreclosure reserve (549) (603) (3,058) (1,436) Provision for (reversal of) foreclosure losses 84 (3,449) 554 (1,974) Balance — end of period $ 6,194 $ 6,945 $ 6,194 $ 6,945 Note Receivable In March 2023, the Company issued a note receivable to CCM in the amount of $11.3 million in connection with the acquisition of CCM, which closed in April 2023. The Company recognized a discount on the note receivable of approximately $1.3 million on the date the acquisition closed. The note bears interest at a variable rate tied to the Secured Overnight Financing Rate ("SOFR") plus an applicable margin. Also, pursuant to the acquisition, CCM will be entitled to earn-out payments for four years based on certain performance criteria. The earn-out payments will be first allocated to repay the interest and principal due on the note receivable. The note receivable matures in April 2027. If an earn-out payment is not due to CCM, 50% of the interest payment may be "paid-in-kind", and thereby added to the principal balance. |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consisted of the following: September 30, 2023 December 31, 2022 Prepaid expenses $ 27,913 $ 31,499 Company owned life insurance 39,731 37,871 Property and equipment, net 14,568 12,118 Right-of-use assets 69,560 74,660 Income tax receivable 8,320 26,531 Real estate owned 1,968 306 Land 1,973 2,034 Trading securities 89 96 Investments in unconsolidated joint ventures, net 756 — Investment in warrants 961 961 Total other assets $ 165,839 $ 186,076 Property and equipment, net consisted of the following: September 30, 2023 December 31, 2022 Computer equipment $ 30,813 $ 29,447 Furniture and equipment 25,768 25,072 Leasehold improvements 20,296 18,713 Internal-use software in production 3,523 772 Internal-use software 11,448 10,357 Property and equipment, gross 91,848 84,361 Accumulated depreciation (77,280) (72,243) Property and equipment, net $ 14,568 $ 12,118 Depreciation and amortization expense for property and equipment was $1.7 million and $2.0 million for the three months ended September 30, 2023 and 2022, respectively, and $5.1 million and $5.7 million for the nine months ended September 30, 2023 and 2022, respectively. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
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 Condensed Consolidated Statements of Income. Changes in the fair value of the Company's derivative financial instruments are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized hedging gains $ 10,699 $ 29,290 $ 26,454 $ 22,366 Notional and Fair Value The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows at September 30, 2023 and December 31, 2022: Fair Value Notional Derivative Derivative Balance at September 30, 2023 IRLCs $ 1,212,847 $ 12,219 $ — Forward delivery commitments and best efforts sales commitments $ 1,387,849 $ 12,182 $ — 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 The Company had an additional $233.0 million and $256.3 million of outstanding forward contracts and mandatory sell commitments, comprised of closed loans with equal and offsetting UPB amounts allocated to them, at September 30, 2023 and December 31, 2022, respectively. The Company also had $375.0 million and $470.8 million in closed hedge instruments not yet settled at September 30, 2023 and December 31, 2022, 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: September 30, 2023 December 31, 2022 Unobservable Input Range (Weighted Average) Loan funding probability (“pull-through”) 0% -100% (84.3%) 0% - 100% (93.4%) 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 three and nine months ended September 30, 2023 and 2022. The table below represents financial assets and liabilities that are subject to master netting arrangements categorized by financial instrument: Gross Gross Net September 30, 2023 Forward delivery commitments and best efforts sales commitments $ 12,609 $ (427) $ 12,182 Total assets $ 12,609 $ (427) $ 12,182 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) |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
MORTGAGE SERVICING RIGHTS | MORTGAGE SERVICING RIGHTS The activity of mortgage servicing rights was as follows: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Balance — beginning of period $ 1,184,503 $ 1,030,310 $ 1,139,539 $ 675,340 MSRs originated 51,733 57,477 123,678 206,772 Changes in fair value: Due to collection/realization of cash flows (16,127) (19,659) (43,187) (70,380) Due to changes in valuation model inputs or assumptions 38,204 61,423 38,283 317,819 Balance — end of period $ 1,258,313 $ 1,129,551 $ 1,258,313 $ 1,129,551 The following table presents the weighted average discount rate, prepayment speed and cost to service assumptions used to determine the fair value of MSRs: September 30, 2023 December 31, 2022 Unobservable Input Range (Weighted Average) Discount rate 9.6% - 15.5% (10.8%) 9.6% - 15.7% (10.6%) Prepayment rate 6.3% - 28.0% (7.4%) 6.6% - 28.6% (7.5%) Cost to service (per loan) $71.8 - $305.2 ($94.4) $66.7 - $330.4 ($92.0) At September 30, 2023 and December 31, 2022, the MSRs had a weighted average life of approximately 8.5 years. 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 three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Servicing fees from servicing portfolio $ 60,992 $ 56,410 $ 179,382 $ 161,342 Late fees 1,729 1,486 5,016 4,369 Other ancillary servicing revenue and fees (780) (249) (2,159) (292) Total loan servicing and other fees $ 61,941 $ 57,647 $ 182,239 $ 165,419 At September 30, 2023 and December 31, 2022, the UPB of mortgage loans serviced totaled $83.7 billion and $78.9 billion, respectively. Conforming conventional loans serviced by the Company are sold to the Federal National Mortgage Association ("FNMA" or "Fannie Mae") or the Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac") 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 Federal Housing Association ("FHA") or partially guaranteed against loss by the Department of Veterans Affairs ("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 September 30, 2023 and December 31, 2022, respectively: Prepayment Speeds Discount Rate Cost to Service (per loan) 10% Adverse 20% Adverse 10% Adverse 20% Adverse 10% Adverse 20% Adverse September 30, 2023 Mortgage servicing rights $ (38,165) $ (74,836) $ (53,571) $ (103,720) $ (11,965) $ (24,189) December 31, 2022 Mortgage servicing rights $ (36,298) $ (70,878) $ (50,392) $ (96,848) $ (11,880) $ (24,162) |
MORTGAGE LOANS HELD FOR SALE
MORTGAGE LOANS HELD FOR SALE | 9 Months Ended |
Sep. 30, 2023 | |
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 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 Condensed Consolidated Statements of Cash Flows is set forth below: Nine Months Ended 2023 2022 Balance — beginning of period $ 845,775 $ 2,204,216 Origination of mortgage loans held for sale 10,910,122 16,265,741 Proceeds on sale of and payments from mortgage loans held for sale (11,067,062) (17,916,073) Gain on sale of mortgage loans excluding fair value of other financial instruments, net 247,547 440,974 Valuation adjustment of mortgage loans held for sale (3,611) (65,297) Balance — end of period $ 932,771 $ 929,561 At September 30, 2023, mortgage loans held for sale included UPB of the underlying loans of $959.5 million and had a fair value of $932.8 million. 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. |
REVERSE MORTGAGE LOANS HELD FOR
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS | REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Balance — beginning of period $ 36,709 $ — $ — $ — Originations and purchases 42,894 77,297 Securitization of HECM loans accounted for as a financing (including realized fair value changes) — (71,445) — (71,445) Repayments (principal payments received) (734) — (734) — Change in fair value recognized in earnings 2,588 167 4,894 167 Balance — end of period $ 81,457 $ (71,278) $ 81,457 $ (71,278) Securitized loans (pledged to HMBS-related borrowings) $ 73,443 $ (71,278) $ 73,443 $ (71,278) Unsecuritized loans 8,014 8,014 Total $ 81,457 $ 81,457 (1) HMBS-related borrowings represent the issuance of pools of HMBS, which are guaranteed by GNMA, to third-party security holders. The Company accounts for the transfers of these advances in the related HECM loans as secured borrowings, retaining the initial HECM loans in the Condensed Consolidated Balance Sheet as reverse mortgage loans held for investment and recording the pooled HMBS as HMBS-related borrowings. Below are the significant unobservable inputs used to value the reverse mortgage loans held for investment and HMBS-related borrowings: Unobservable Input September 30, 2023 Life in years Range 0.4 to 9.4 Weighted average 7.8 Weighted average interest rate 7.7 % Discount rate 12.0 % Conditional prepayment rate including voluntary and involuntary prepayments Range 2.0% to 44.5% Weighted average 12.6 % |
INVESTOR RESERVES
INVESTOR RESERVES | 9 Months Ended |
Sep. 30, 2023 | |
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: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Balance — beginning of period $ 18,364 $ 16,919 $ 16,094 $ 18,437 Benefit from investor reserves (1,371) (2,479) (4,119) (3,101) Provision for investor reserves 3,029 1,575 8,047 679 Balance — end of period $ 20,022 $ 16,015 $ 20,022 $ 16,015 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
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, 2022 $ 176,769 Measurement period adjustments for Inlanta (1) 760 Goodwill acquired from Legacy 4,621 Goodwill acquired from CCM 2,744 Goodwill acquired from FCM 1,289 Balance at September 30, 2023 $ 186,183 ______________________________ (1) During the three months ended March 31, 2023, the Company recorded measurement period adjustments which increased goodwill by $1.5 million for certain retention bonuses and decreased goodwill by $0.8 million for the partial return of the purchase price required within 90 days of the acquisition based on a provision in the asset purchase agreement related to the Company's acquisition of Inlanta Mortgage, Inc. during December 2022. These adjustments did not impact the Company's statements of income. Intangible Assets The following table presents our intangible assets, net as of September 30, 2023: Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (Years) Referral network $ 42,300 $ 15,862 $ 26,438 3.5 Non-compete agreements 2,700 2,025 675 0.1 $ 45,000 $ 17,887 $ 27,113 3.6 Amortization expense related to intangible assets was $2.0 million for each of the three months ended September 30, 2023 and 2022, and $6.0 million for each of the nine months ended September 30, 2023 and 2022. |
WAREHOUSE LINES OF CREDIT
WAREHOUSE LINES OF CREDIT | 9 Months Ended |
Sep. 30, 2023 | |
Line of Credit Facility [Abstract] | |
WAREHOUSE LINES OF CREDIT | WAREHOUSE LINES OF CREDIT Warehouse lines of credit consisted of the following at September 30, 2023 and December 31, 2022. Changes subsequent to September 30, 2023 have been described in the notes referenced with the below table. Maturity as of September 30, September 30, 2023 December 31, 2022 $345 million master repurchase facility agreement (1) January 2024 $ 107,912 $ 47,565 $150 million master repurchase facility agreement (2) August 2024 113,126 10,848 $300 million master repurchase facility agreement (3) June 2024 173,377 189,512 $200 million master repurchase facility agreement (4) May 2024 84,020 110,605 $200 million master repurchase facility agreement (5) November 2023 82,721 16,131 $300 million master repurchase facility agreement (6) September 2024 128,197 81,353 $100 million master repurchase facility agreement (7) N/A — 56,237 $50 million master repurchase facility agreement (8) N/A 30,851 — $75 million master repurchase facility agreement (9) March 2025 35,041 40,096 $200 million master repurchase facility agreement (10) N/A 86,906 162,454 842,151 714,801 Prepaid commitment fees (3,029) (1,650) Net warehouse lines of credit $ 839,122 $ 713,151 ______________________________ (1) The variable interest rate is calculated using a base rate tied to SOFR. (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 of $1.5 million. (4) The variable interest rate is calculated using a base rate plus SOFR, with a floor of 0.375% 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. (7) This facility matured in July 2023 and was not renewed. (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 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%. The weighted average interest rate for warehouse lines of credit was 6.98% and 3.31% at September 30, 2023 and December 31, 2022, 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 $9.2 million and $50.7 million in its warehouse buy down accounts as offsets to certain lines of credit at September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022, 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”. 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 September 30, 2023 and December 31, 2022. Revolving Notes: The Company has an agreement for a revolving note from one of its warehouse banks, which it can draw upon as needed. The agreement currently expires in August 2027. 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 committed amount of $135.0 million and the agreement allows for the Company to increase the committed amount up to a maximum of $200.0 million. The Company has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At September 30, 2023 and December 31, 2022, the Company had $31.0 million balance and $20.0 million, respectively, in outstanding borrowings on this credit facility. The Company has an agreement for a revolving note of up to $100.0 million from one of its warehouse banks, which it can draw upon as needed. The agreement currently expires in September 2024. 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 had an unused facility fee on the average unused balance, which was also paid quarterly. The unused facility fee was waived if the average outstanding balance exceeded 35% of the available combined warehouse and MSR facility. In September 2023 the revolving note was amended to remove the unused facility fee. The lender has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At September 30, 2023 and December 31, 2022, the Company had $30.0 million and no balance, respectively, in outstanding borrowings on this credit facility. In September 2023, the Company entered into a new revolving note agreement, which it can draw upon as needed. The agreement currently expires in September 2028. Borrowings on the revolving note are collateralized by the Company’s FNMA 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 2.0%. The revolving note has a committed amount of $250.0 million and the agreement allows for the Company to increase the committed amount up to a maximum of $400.0 million. At September 30, 2023, the Company had $87.8 million in outstanding borrowings on this credit facility. Term Note: The Company had a term note agreement with one of its warehouse banks collateralized by the Company’s FNMA MSRs. The term note had a committed amount of $125.0 million and the agreement allowed for the Company to increase the committed amount up to a maximum of $175.0 million. The Company could draw on the committed amount through March 2022 and the note had a maturity date of March 2024. Interest on the principal was paid monthly and was 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 were due quarterly beginning April 15, 2022, with the remaining principal balance due upon maturity. The term note also had an unused facility fee on the average unused balance, which was also paid quarterly. In September 2023, the Company paid in full the $87.5 million remaining balance due on the term note with funds borrowed under a new revolving note agreement with a different lender (see section above describing the new revolving note agreement). At September 30, 2023 and December 31, 2022, the Company had no outstanding balance and $106.3 million, respectively, on this facility. |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | WAREHOUSE LINES OF CREDIT Warehouse lines of credit consisted of the following at September 30, 2023 and December 31, 2022. Changes subsequent to September 30, 2023 have been described in the notes referenced with the below table. Maturity as of September 30, September 30, 2023 December 31, 2022 $345 million master repurchase facility agreement (1) January 2024 $ 107,912 $ 47,565 $150 million master repurchase facility agreement (2) August 2024 113,126 10,848 $300 million master repurchase facility agreement (3) June 2024 173,377 189,512 $200 million master repurchase facility agreement (4) May 2024 84,020 110,605 $200 million master repurchase facility agreement (5) November 2023 82,721 16,131 $300 million master repurchase facility agreement (6) September 2024 128,197 81,353 $100 million master repurchase facility agreement (7) N/A — 56,237 $50 million master repurchase facility agreement (8) N/A 30,851 — $75 million master repurchase facility agreement (9) March 2025 35,041 40,096 $200 million master repurchase facility agreement (10) N/A 86,906 162,454 842,151 714,801 Prepaid commitment fees (3,029) (1,650) Net warehouse lines of credit $ 839,122 $ 713,151 ______________________________ (1) The variable interest rate is calculated using a base rate tied to SOFR. (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 of $1.5 million. (4) The variable interest rate is calculated using a base rate plus SOFR, with a floor of 0.375% 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. (7) This facility matured in July 2023 and was not renewed. (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 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%. The weighted average interest rate for warehouse lines of credit was 6.98% and 3.31% at September 30, 2023 and December 31, 2022, 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 $9.2 million and $50.7 million in its warehouse buy down accounts as offsets to certain lines of credit at September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022, 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”. 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 September 30, 2023 and December 31, 2022. Revolving Notes: The Company has an agreement for a revolving note from one of its warehouse banks, which it can draw upon as needed. The agreement currently expires in August 2027. 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 committed amount of $135.0 million and the agreement allows for the Company to increase the committed amount up to a maximum of $200.0 million. The Company has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At September 30, 2023 and December 31, 2022, the Company had $31.0 million balance and $20.0 million, respectively, in outstanding borrowings on this credit facility. The Company has an agreement for a revolving note of up to $100.0 million from one of its warehouse banks, which it can draw upon as needed. The agreement currently expires in September 2024. 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 had an unused facility fee on the average unused balance, which was also paid quarterly. The unused facility fee was waived if the average outstanding balance exceeded 35% of the available combined warehouse and MSR facility. In September 2023 the revolving note was amended to remove the unused facility fee. The lender has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At September 30, 2023 and December 31, 2022, the Company had $30.0 million and no balance, respectively, in outstanding borrowings on this credit facility. In September 2023, the Company entered into a new revolving note agreement, which it can draw upon as needed. The agreement currently expires in September 2028. Borrowings on the revolving note are collateralized by the Company’s FNMA 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 2.0%. The revolving note has a committed amount of $250.0 million and the agreement allows for the Company to increase the committed amount up to a maximum of $400.0 million. At September 30, 2023, the Company had $87.8 million in outstanding borrowings on this credit facility. Term Note: The Company had a term note agreement with one of its warehouse banks collateralized by the Company’s FNMA MSRs. The term note had a committed amount of $125.0 million and the agreement allowed for the Company to increase the committed amount up to a maximum of $175.0 million. The Company could draw on the committed amount through March 2022 and the note had a maturity date of March 2024. Interest on the principal was paid monthly and was 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 were due quarterly beginning April 15, 2022, with the remaining principal balance due upon maturity. The term note also had an unused facility fee on the average unused balance, which was also paid quarterly. In September 2023, the Company paid in full the $87.5 million remaining balance due on the term note with funds borrowed under a new revolving note agreement with a different lender (see section above describing the new revolving note agreement). At September 30, 2023 and December 31, 2022, the Company had no outstanding balance and $106.3 million, respectively, on this facility. |
STOCKHOLDERS' EQUITY AND EARNIN
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity and Earnings Per Share [Abstract] | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE Basic 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: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Net income attributable to Guild $ 54,249 $ 77,374 $ 53,995 $ 343,604 Weighted-average shares outstanding, Class A Common Stock 20,623 20,560 20,607 20,671 Weighted-average shares outstanding, Class B Common Stock 40,333 40,333 40,333 40,333 Weighted-average shares outstanding - basic 60,956 60,893 60,940 61,004 Add dilutive effects of non-vested shares of restricted stock - Class A 957 670 1,036 802 Weighted-average shares outstanding - diluted 61,913 61,563 61,976 61,806 Basic earnings per share: Class A and Class B Common Stock $ 0.89 $ 1.27 $ 0.89 $ 5.63 Diluted earnings per share: Class A and Class B Common Stock $ 0.88 $ 1.26 $ 0.87 $ 5.56 No shares of Class A common stock were excluded from the calculation of earnings per share as a result of being anti-dilutive for the three and nine months ended September 30, 2023 and 2022. 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 the three and nine months ended September 30, 2023, the Company repurchased and subsequently retired 87,087 and 188,841 shares of the Company’s Class A common stock at an average purchase price of $11.74 per share and $11.20 per share, respectively. As of September 30, 2023, $12.3 million remained available for repurchase. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-Based Compensation The Company’s stock-based compensation arrangements include grants of RSUs under the 2020 Omnibus Incentive Plan. The stock-based compensation costs recognized during the three and nine months ended September 30, 2023 was $2.3 million and $6.4 million, respectively, and $1.9 million and $4.9 million for the three and nine months ended September 30, 2022, and are included in salaries, incentive compensation and benefits. The income tax benefit recognized related to this expense was approximately $0.3 million and $0.2 million for the three months ended September 30, 2023 and 2022, respectively, and $0.7 million for each of the nine months ended September 30, 2023 and 2022. As of September 30, 2023, there was approximately $14.0 million of unrecognized compensation costs related to non-vested RSUs, which the Company expects to recognize over a weighted average period of 1.6 years. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022 were approximately $1.2 billion and $0.8 billion, respectively. The Company manages the interest rate price risk associated with its outstanding IRLCs 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 September 30, 2023 and December 31, 2022 were approximately $1.4 billion and $1.1 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. |
REGULATORY CAPITAL AND LIQUIDIT
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Mortgage Banking [Abstract] | |
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS | REGULATORY CAPITAL AND LIQUIDITY 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 certain minimum net worth, minimum capital ratio and minimum liquidity requirements established by the Federal Housing Finance Agency ("FHFA") for Fannie Mae and Freddie Mac Seller/Servicers, and Ginnie Mae for single family issuers. The most restrictive of the minimum net worth and capital requirements require the Company to maintain a minimum adjusted net worth balance of $249,327 and $86,951 as of September 30, 2023 and December 31, 2022. As of September 30, 2023 and December 31, 2022, the Company was in compliance with this requirement. |
SEGMENTS
SEGMENTS | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 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 three months ended September 30, 2023: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 158,812 $ (686) $ 158,126 $ — $ 158,126 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 2,755 — 2,755 — 2,755 Loan servicing and other fees — 61,941 61,941 — 61,941 Valuation adjustment of mortgage servicing rights — 22,077 22,077 — 22,077 Interest income (expense) 1,388 13,208 14,596 (2,642) 11,954 Other income, net 341 49 390 14 404 Net revenue 163,296 96,589 259,885 (2,628) 257,257 Expenses Salaries, incentive compensation and benefits 123,978 8,104 132,082 10,555 142,637 General and administrative 12,696 2,953 15,649 3,160 18,809 Occupancy, equipment and communication 15,995 1,406 17,401 1,135 18,536 Depreciation and amortization 3,435 17 3,452 212 3,664 Provision for foreclosure losses — 84 84 — 84 Income tax expense — — — 19,284 19,284 Net income (loss) $ 7,192 $ 84,025 $ 91,217 $ (36,974) $ 54,243 The following table presents the financial performance and results by segment for the nine months ended September 30, 2023: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 387,587 $ 115 $ 387,702 $ — $ 387,702 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 5,061 — 5,061 — 5,061 Loan servicing and other fees — 182,277 182,277 (38) 182,239 Valuation adjustment of mortgage servicing rights — (4,904) (4,904) — (4,904) Interest income (expense) 4,019 30,884 34,903 (7,711) 27,192 Other income, net 507 150 657 6 663 Net revenue 397,174 208,522 605,696 (7,743) 597,953 Expenses Salaries, incentive compensation and benefits 344,259 23,173 367,432 31,228 398,660 General and administrative 42,251 8,073 50,324 9,816 60,140 Occupancy, equipment and communication 47,356 3,887 51,243 3,125 54,368 Depreciation and amortization 10,198 377 10,575 488 11,063 Provision for foreclosure losses — 554 554 — 554 Income tax expense — — — 19,184 19,184 Net (loss) income $ (46,890) $ 172,458 $ 125,568 $ (71,584) $ 53,984 The following table presents the financial performance and results by segment for the three months ended September 30, 2022: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 154,319 $ 299 $ 154,618 $ — $ 154,618 Loan servicing and other fees — 57,647 57,647 — 57,647 Valuation adjustment of mortgage servicing rights — 41,764 41,764 — 41,764 Interest income (expense) 4,388 3,392 7,780 (1,529) 6,251 Other income, net (32) 979 947 (7) 940 Net revenue 158,675 104,081 262,756 (1,536) 261,220 Expenses Salaries, incentive compensation and benefits 124,909 6,955 131,864 5,508 137,372 General and administrative 13,706 2,420 16,126 3,286 19,412 Occupancy, equipment and communication 15,043 1,202 16,245 1,057 17,302 Depreciation and amortization 3,498 159 3,657 238 3,895 Reversal of foreclosure losses — (3,449) (3,449) — (3,449) Income tax expense — — — 9,321 9,321 Net income (loss) $ 1,519 $ 96,794 $ 98,313 $ (20,946) $ 77,367 The following table presents the financial performance and results by segment for the nine months ended September 30, 2022: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 599,285 $ 5,944 $ 605,229 $ — $ 605,229 Loan servicing and other fees — 165,419 165,419 — 165,419 Valuation adjustment of mortgage servicing rights — 247,439 247,439 — 247,439 Interest income (expense) 17,183 (1,233) 15,950 (4,700) 11,250 Other income, net (57) 1,054 997 185 1,182 Net revenue 616,411 418,623 1,035,034 (4,515) 1,030,519 Expenses Salaries, incentive compensation and benefits 464,368 21,722 486,090 16,803 502,893 General and administrative 3,455 7,342 10,797 9,356 20,153 Occupancy, equipment and communication 47,645 3,599 51,244 3,343 54,587 Depreciation and amortization 10,374 483 10,857 759 11,616 Reversal of foreclosure losses — (1,974) (1,974) — (1,974) Income tax expense — — — 99,615 99,615 Net income (loss) $ 90,569 $ 387,451 $ 478,020 $ (134,391) $ 343,629 |
BUSINESS, BASIS OF PRESENTATI_2
BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with U.S. generally accepted accounting principles (“GAAP”) applicable to interim financial statements. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results of the interim period. The condensed consolidated balance sheet data as of December 31, 2022 was derived from audited financial statements but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The Company follows the same accounting policies for preparing quarterly and annual reports. |
Principles of Consolidation | Principles of Consolidation The Company's condensed consolidated financial statements include the accounts of the Company, Guild Mortgage Company LLC ("GMC") and their consolidated subsidiaries, variable interest entities ("VIE") of which the Company is the primary beneficiary, and joint ventures in which the Company has a majority voting interest and control. The Company evaluates its relationships and investments to determine if it is the primary beneficiary of a VIE. 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 carrying amount of the consolidated VIEs' and consolidated joint ventures' assets and liabilities were immaterial as of September 30, 2023. All intercompany accounts and transactions have been eliminated in consolidation. |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures The Company has investments in unconsolidated joint ventures involved in the mortgage lending business, which are included in other assets in the Condensed Consolidated Balance Sheets. The Company's investments in these unconsolidated joint ventures are accounted for under the equity method of accounting as the Company does not have a majority voting interest, operational control or financial control. As a result, the Company does not recognize the assets and liabilities of these unconsolidated joint ventures in its financial statements. The Company's share of the net earnings or losses of the investee are included in other income, net in the Condensed Consolidated Statements of Income. The Company classifies distributions received from its unconsolidated joint ventures using the cumulative earnings approach. Distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds |
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. |
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 Condensed Consolidated Balance Sheets. |
Common Stock Cash Dividend | Non-vested restricted stock units ("RSUs") under the 2020 Omnibus Incentive Plan have rights to dividends, which entitle holders to the same dividend value per share as holders of common shares 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 dividend, Guild issued 95,413 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. |
Reverse Mortgage Loans Held for Investment and HMBS-Related Borrowings, Net / Gain on Reverse Mortgage Loans Held for Investment and HMBS-Related Borrowings, Net | Reverse Mortgage Loans Held for Investment and HMBS-Related Borrowings, Net In April 2023, the Company acquired certain assets of Cherry Creek Mortgage, LLC ("CCM") (see Note 3 - Acquisitions), which expanded its range of services by offering reverse mortgages to its customers. Reverse mortgage loans are residential mortgage loans for which neither principal nor interest is due until the borrower dies, the home is sold, or other trigger events occur. Reverse mortgage loans can have either fixed interest rates or adjustable interest rates. In the case of most fixed-rate reverse mortgage loans, the borrower must draw the loan proceeds up front in one lump sum, while many adjustable-rate mortgage loans provide the borrower with a line of credit that can be drawn over time. The Company has elected to measure these loans at fair value, on a recurring basis, with changes in fair value recorded as a charge or credit to gain on reverse mortgage loans held for investment and HMBS-related borrowings, net in the Condensed Consolidated Statements of Income. The Company securitizes home equity conversion mortgages ("HECM") into Home Equity Conversion Mortgage-Backed Securities (“HMBS”), which Ginnie Mae guarantees, and sells them in the secondary market while retaining the rights to service. The Company has determined that HECM loans transferred under the current Ginnie Mae HMBS securitization program do not meet the requirements for sale accounting under Accounting Standards Codification ("ASC 860"), Transfers and Servicing, and are therefore not derecognized upon date of transfer. The Ginnie Mae HMBS securitization program includes certain terms that do not meet the participating interest requirements and require or provide an option for the Company to reacquire the loans prior to maturity. Due to these terms, the transfer of the loans does not meet the requirements of sale accounting. As a result, the Company accounts for HECM loans transferred into HMBS securitizations as secured borrowings and continues to recognize the loans as held for investment, along with the corresponding liability for the HMBS related obligations. As an issuer of HMBS, we are required to repurchase reverse loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the maximum claim amount (“MCA”) (referred to as unpoolable loans). Performing repurchased loans are conveyed to the United States Department of Housing and Urban Development ("HUD") and payment is received from HUD typically within 75 days of repurchase. Nonperforming repurchased loans are generally liquidated through foreclosure, subsequent sale of the real estate owned, and claim submissions to HUD. Gain on Reverse Mortgage Loans Held for Investment and HMBS-Related Borrowings, Net The Company has elected to measure the HECM loans held for investment and HMBS-related borrowings at fair value on a recurring basis. The fair value gains and losses of the HECM loans and HMBS-related borrowings and the gains and losses on tail securitization are included in gain on reverse mortgage loans held for investment and HMBS-related borrowings, net in the Condensed Consolidated Statements of Income. Tail securitizations are participations in previously securitized HECMs and are created by additions to principal for borrower draws on lines-of-credit (scheduled and unscheduled), interest, servicing fees, and mortgage insurance premiums. In addition, gain on reverse mortgage loans held for investment and HMBS-related borrowings, net includes interest income on the securitized HECM loans, interest expense on the HMBS-related borrowings, together with the realized cash gains or losses on tail securitization and the fair value changes related to new reverse mortgage loans through the securitization date. The reverse mortgage loan activity is included in the Company's origination segment. |
Recent Accounting Standards | Recent Accounting Standards In August 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-05— Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement (“ASU 2023-05”). ASU 2023-05 applies to the formation of a “joint venture” or a “corporate joint venture” and requires a joint venture to initially measure all contributions received upon its formation at fair value. The guidance does not impact accounting by the venturers. The new guidance is applicable to joint venture entities with a formation date on or after January 1, 2025 on a prospective basis and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the new guidance on its financial statements. In March 2020, the FASB issued ASU No. 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"), 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, Reference 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 31, 2024. Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications. 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. The Company transitioned its funding facilities and financing facilities that utilized LIBOR as the reference rate to alternative reference rates prior to the LIBOR cessation date of June 30, 2023 and there was no material impact on the Company's consolidated financial statements. |
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 September 30, 2023 and December 31, 2022, 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 Condensed Consolidated Balance Sheets. Notes Receivable — Notes receivable are classified within Level Three of the valuation hierarchy as the Company's valuation includes significant unobservable inputs, including consideration of estimates of future earn-out payments, discount rates and expectations about settlement. 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 (or "locked") prior to funding. The fair value of IRLCs recorded at lock inception 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 September 30, 2023 and December 31, 2022, was 84.3% and 93.4%, 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. We regularly review our critical estimates and assumptions used in the valuation of our IRLCs. 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. We regularly review our critical estimates and assumptions used in the valuation of our MLHS. Reverse Mortgage Loans Held for Investment — Reverse mortgage loans held for investment are carried at fair value and classified within Level Three of the valuation hierarchy. Fair value is estimated using a present value methodology that discounts estimated projected cash flows over the life of the loan using unobservable inputs which include conditional prepayment rates and discount rates. The conditional prepayment rate assumption is inclusive of voluntary (repayment or payoff) and involuntary (inactive/delinquent status and default) prepayments. The discount rate assumption used is primarily based on an assessment of current market yields on reverse mortgage loan and tail securitizations, expected duration of the asset and current market interest rates. The Company engages a third-party valuation expert to assist in estimating the fair value. See Note 9 for additional information on the Company's reverse mortgage loans held for investment. 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 warrants are initially and subsequently measured at fair value until they are exercised or expire, with material changes in the fair value reported in other income, net in the Condensed Consolidated Statements of Income each reporting period. The Company's investment in warrants is included within other assets in the Condensed 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 September 30, 2023 the risk adjusted discount rate was 25.0% and at December 31, 2022 the range of the risk adjusted discount rate was 14.5% - 25.0%, with a median of 15.0%. 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 Condensed Consolidated Statements of Income. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule 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 September 30, 2023: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 89 $ — $ — $ 89 Notes receivable — — 14,809 14,809 Derivative Forward delivery commitments and best efforts sales commitments — 12,182 — 12,182 Interest rate lock commitments — — 12,219 12,219 Mortgage loans held for sale — 932,771 — 932,771 Reverse mortgage loans held for investment — — 81,457 81,457 Mortgage servicing rights — — 1,258,313 1,258,313 Investment in warrants — — 961 961 Total assets at fair value $ 89 $ 944,953 $ 1,367,759 $ 2,312,801 Liabilities: HMBS-related borrowings $ — $ — $ 71,278 $ 71,278 Contingent liabilities due to acquisitions — — 7,239 7,239 Total liabilities at fair value $ — $ — $ 78,517 $ 78,517 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 delivery 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 |
Schedule of Reconciliation of Level Three Assets and 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 three and nine months ended September 30, 2023 and 2022: IRLCs Contingent Notes Receivable Balance at June 30, 2023 $ 5,613 $ 7,793 $ 9,824 Net transfers and revaluation gains 6,606 — — Additions — — 5,156 Valuation adjustments — (554) (171) Balance at September 30, 2023 $ 12,219 $ 7,239 $ 14,809 Balance at December 31, 2022 $ 1,518 $ 526 $ — Net transfers and revaluation gains 10,701 — — Additions — 6,103 16,406 Valuation adjustments — 610 (1,597) Balance at September 30, 2023 $ 12,219 $ 7,239 $ 14,809 Balance at June 30, 2022 $ 14,600 $ 1,557 $ — Net transfers and revaluation losses (38,177) — — Payments — (1,884) — Valuation adjustments — 327 Balance at September 30, 2022 $ (23,577) $ — $ — Balance at December 31, 2021 $ 22,119 $ 59,500 $ — Net transfers and revaluation losses (45,696) — — Payments — (14,425) — Valuation adjustments — (45,075) Balance at September 30, 2022 $ (23,577) $ — $ — |
Schedule 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 September 30, 2023: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 639,023 $ — $ 639,023 Total assets at fair value $ — $ 639,023 $ — $ 639,023 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 639,370 $ — $ 639,370 Total liabilities at fair value $ — $ 639,370 $ — $ 639,370 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 |
Schedule of 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 September 30, 2023 $ 932,771 $ 959,523 $ (26,752) Balance at December 31, 2022 $ 845,775 $ 868,833 $ (23,058) _______________________________ (1) Represents the amount of 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. |
ACCOUNTS, NOTES AND INTEREST _2
ACCOUNTS, NOTES AND INTEREST RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes and Interest Receivable | Accounts, notes and interest receivable consisted of the following: September 30, 2023 December 31, 2022 Trust advances $ 20,814 $ 44,164 Foreclosure advances, net 18,669 12,320 Receivables related to loan sales 2,316 562 Notes receivable and advances 16,604 — Accrued interest - notes receivable 512 — Other 4,734 1,258 Total accounts, notes and interest receivable $ 63,649 $ 58,304 |
Schedule of Activity of the Foreclosure Loss Reserve | The activity of the foreclosure loss reserve was as follows: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Balance — beginning of period $ 6,659 $ 10,997 $ 8,698 $ 10,355 Utilization of foreclosure reserve (549) (603) (3,058) (1,436) Provision for (reversal of) foreclosure losses 84 (3,449) 554 (1,974) Balance — end of period $ 6,194 $ 6,945 $ 6,194 $ 6,945 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following: September 30, 2023 December 31, 2022 Prepaid expenses $ 27,913 $ 31,499 Company owned life insurance 39,731 37,871 Property and equipment, net 14,568 12,118 Right-of-use assets 69,560 74,660 Income tax receivable 8,320 26,531 Real estate owned 1,968 306 Land 1,973 2,034 Trading securities 89 96 Investments in unconsolidated joint ventures, net 756 — Investment in warrants 961 961 Total other assets $ 165,839 $ 186,076 |
Schedule of Property and Equipment | Property and equipment, net consisted of the following: September 30, 2023 December 31, 2022 Computer equipment $ 30,813 $ 29,447 Furniture and equipment 25,768 25,072 Leasehold improvements 20,296 18,713 Internal-use software in production 3,523 772 Internal-use software 11,448 10,357 Property and equipment, gross 91,848 84,361 Accumulated depreciation (77,280) (72,243) Property and equipment, net $ 14,568 $ 12,118 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Changes in Fair Value of Derivative Instruments | Changes in the fair value of the Company's derivative financial instruments are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized hedging gains $ 10,699 $ 29,290 $ 26,454 $ 22,366 |
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 September 30, 2023 and December 31, 2022: Fair Value Notional Derivative Derivative Balance at September 30, 2023 IRLCs $ 1,212,847 $ 12,219 $ — Forward delivery commitments and best efforts sales commitments $ 1,387,849 $ 12,182 $ — 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 |
Schedule of Quantitative Information About IRLCs and Fair Value Measurements | The following table presents the quantitative information about IRLCs and the fair value measurements: September 30, 2023 December 31, 2022 Unobservable Input Range (Weighted Average) Loan funding probability (“pull-through”) 0% -100% (84.3%) 0% - 100% (93.4%) |
Schedule of Financial Liabilities that 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 September 30, 2023 Forward delivery commitments and best efforts sales commitments $ 12,609 $ (427) $ 12,182 Total assets $ 12,609 $ (427) $ 12,182 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) |
Schedule of Financial Assets that 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 September 30, 2023 Forward delivery commitments and best efforts sales commitments $ 12,609 $ (427) $ 12,182 Total assets $ 12,609 $ (427) $ 12,182 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) |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Activity of Mortgage Servicing Rights | The activity of mortgage servicing rights was as follows: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Balance — beginning of period $ 1,184,503 $ 1,030,310 $ 1,139,539 $ 675,340 MSRs originated 51,733 57,477 123,678 206,772 Changes in fair value: Due to collection/realization of cash flows (16,127) (19,659) (43,187) (70,380) Due to changes in valuation model inputs or assumptions 38,204 61,423 38,283 317,819 Balance — end of period $ 1,258,313 $ 1,129,551 $ 1,258,313 $ 1,129,551 |
Schedule 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: September 30, 2023 December 31, 2022 Unobservable Input Range (Weighted Average) Discount rate 9.6% - 15.5% (10.8%) 9.6% - 15.7% (10.6%) Prepayment rate 6.3% - 28.0% (7.4%) 6.6% - 28.6% (7.5%) Cost to service (per loan) $71.8 - $305.2 ($94.4) $66.7 - $330.4 ($92.0) |
Schedule 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 three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Servicing fees from servicing portfolio $ 60,992 $ 56,410 $ 179,382 $ 161,342 Late fees 1,729 1,486 5,016 4,369 Other ancillary servicing revenue and fees (780) (249) (2,159) (292) Total loan servicing and other fees $ 61,941 $ 57,647 $ 182,239 $ 165,419 |
Schedule 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 September 30, 2023 and December 31, 2022, respectively: Prepayment Speeds Discount Rate Cost to Service (per loan) 10% Adverse 20% Adverse 10% Adverse 20% Adverse 10% Adverse 20% Adverse September 30, 2023 Mortgage servicing rights $ (38,165) $ (74,836) $ (53,571) $ (103,720) $ (11,965) $ (24,189) December 31, 2022 Mortgage servicing rights $ (36,298) $ (70,878) $ (50,392) $ (96,848) $ (11,880) $ (24,162) |
MORTGAGE LOANS HELD FOR SALE (T
MORTGAGE LOANS HELD FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Mortgage Loans Held For Sale [Abstract] | |
Schedule 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 Condensed Consolidated Statements of Cash Flows is set forth below: Nine Months Ended 2023 2022 Balance — beginning of period $ 845,775 $ 2,204,216 Origination of mortgage loans held for sale 10,910,122 16,265,741 Proceeds on sale of and payments from mortgage loans held for sale (11,067,062) (17,916,073) Gain on sale of mortgage loans excluding fair value of other financial instruments, net 247,547 440,974 Valuation adjustment of mortgage loans held for sale (3,611) (65,297) Balance — end of period $ 932,771 $ 929,561 |
REVERSE MORTGAGE LOANS HELD F_2
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Loans Held For Investment | Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Balance — beginning of period $ 36,709 $ — $ — $ — Originations and purchases 42,894 77,297 Securitization of HECM loans accounted for as a financing (including realized fair value changes) — (71,445) — (71,445) Repayments (principal payments received) (734) — (734) — Change in fair value recognized in earnings 2,588 167 4,894 167 Balance — end of period $ 81,457 $ (71,278) $ 81,457 $ (71,278) Securitized loans (pledged to HMBS-related borrowings) $ 73,443 $ (71,278) $ 73,443 $ (71,278) Unsecuritized loans 8,014 8,014 Total $ 81,457 $ 81,457 (1) HMBS-related borrowings represent the issuance of pools of HMBS, which are guaranteed by GNMA, to third-party security holders. The Company accounts for the transfers of these advances in the related HECM loans as secured borrowings, retaining the initial HECM loans in the Condensed Consolidated Balance Sheet as reverse mortgage loans held for investment and recording the pooled HMBS as HMBS-related borrowings. Below are the significant unobservable inputs used to value the reverse mortgage loans held for investment and HMBS-related borrowings: Unobservable Input September 30, 2023 Life in years Range 0.4 to 9.4 Weighted average 7.8 Weighted average interest rate 7.7 % Discount rate 12.0 % Conditional prepayment rate including voluntary and involuntary prepayments Range 2.0% to 44.5% Weighted average 12.6 % |
INVESTOR RESERVES (Tables)
INVESTOR RESERVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investor Reserves [Abstract] | |
Schedule of Activity of Investor Reserves | The activity of the investor reserves was as follows: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Balance — beginning of period $ 18,364 $ 16,919 $ 16,094 $ 18,437 Benefit from investor reserves (1,371) (2,479) (4,119) (3,101) Provision for investor reserves 3,029 1,575 8,047 679 Balance — end of period $ 20,022 $ 16,015 $ 20,022 $ 16,015 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill Allocated to the Origination Segment | The changes in the carrying amount of goodwill allocated to the origination segment are presented in the following table: Balance at December 31, 2022 $ 176,769 Measurement period adjustments for Inlanta (1) 760 Goodwill acquired from Legacy 4,621 Goodwill acquired from CCM 2,744 Goodwill acquired from FCM 1,289 Balance at September 30, 2023 $ 186,183 ______________________________ (1) During the three months ended March 31, 2023, the Company recorded measurement period adjustments which increased goodwill by $1.5 million for certain retention bonuses and decreased goodwill by $0.8 million for the partial return of the purchase price required within 90 days of the acquisition based on a provision in the asset purchase agreement related to the Company's acquisition of Inlanta Mortgage, Inc. during December 2022. These adjustments did not impact the Company's statements of income. |
Schedule of Intangible Assets | The following table presents our intangible assets, net as of September 30, 2023: Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (Years) Referral network $ 42,300 $ 15,862 $ 26,438 3.5 Non-compete agreements 2,700 2,025 675 0.1 $ 45,000 $ 17,887 $ 27,113 3.6 |
WAREHOUSE LINES OF CREDIT (Tabl
WAREHOUSE LINES OF CREDIT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Line of Credit Facility [Abstract] | |
Schedule of Warehouse Lines of Credit | Warehouse lines of credit consisted of the following at September 30, 2023 and December 31, 2022. Changes subsequent to September 30, 2023 have been described in the notes referenced with the below table. Maturity as of September 30, September 30, 2023 December 31, 2022 $345 million master repurchase facility agreement (1) January 2024 $ 107,912 $ 47,565 $150 million master repurchase facility agreement (2) August 2024 113,126 10,848 $300 million master repurchase facility agreement (3) June 2024 173,377 189,512 $200 million master repurchase facility agreement (4) May 2024 84,020 110,605 $200 million master repurchase facility agreement (5) November 2023 82,721 16,131 $300 million master repurchase facility agreement (6) September 2024 128,197 81,353 $100 million master repurchase facility agreement (7) N/A — 56,237 $50 million master repurchase facility agreement (8) N/A 30,851 — $75 million master repurchase facility agreement (9) March 2025 35,041 40,096 $200 million master repurchase facility agreement (10) N/A 86,906 162,454 842,151 714,801 Prepaid commitment fees (3,029) (1,650) Net warehouse lines of credit $ 839,122 $ 713,151 ______________________________ (1) The variable interest rate is calculated using a base rate tied to SOFR. (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 of $1.5 million. (4) The variable interest rate is calculated using a base rate plus SOFR, with a floor of 0.375% 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. (7) This facility matured in July 2023 and was not renewed. (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 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%. |
STOCKHOLDERS' EQUITY AND EARN_2
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity and 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: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Net income attributable to Guild $ 54,249 $ 77,374 $ 53,995 $ 343,604 Weighted-average shares outstanding, Class A Common Stock 20,623 20,560 20,607 20,671 Weighted-average shares outstanding, Class B Common Stock 40,333 40,333 40,333 40,333 Weighted-average shares outstanding - basic 60,956 60,893 60,940 61,004 Add dilutive effects of non-vested shares of restricted stock - Class A 957 670 1,036 802 Weighted-average shares outstanding - diluted 61,913 61,563 61,976 61,806 Basic earnings per share: Class A and Class B Common Stock $ 0.89 $ 1.27 $ 0.89 $ 5.63 Diluted earnings per share: Class A and Class B Common Stock $ 0.88 $ 1.26 $ 0.87 $ 5.56 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Performance and Results by Segment | The following table presents the financial performance and results by segment for the three months ended September 30, 2023: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 158,812 $ (686) $ 158,126 $ — $ 158,126 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 2,755 — 2,755 — 2,755 Loan servicing and other fees — 61,941 61,941 — 61,941 Valuation adjustment of mortgage servicing rights — 22,077 22,077 — 22,077 Interest income (expense) 1,388 13,208 14,596 (2,642) 11,954 Other income, net 341 49 390 14 404 Net revenue 163,296 96,589 259,885 (2,628) 257,257 Expenses Salaries, incentive compensation and benefits 123,978 8,104 132,082 10,555 142,637 General and administrative 12,696 2,953 15,649 3,160 18,809 Occupancy, equipment and communication 15,995 1,406 17,401 1,135 18,536 Depreciation and amortization 3,435 17 3,452 212 3,664 Provision for foreclosure losses — 84 84 — 84 Income tax expense — — — 19,284 19,284 Net income (loss) $ 7,192 $ 84,025 $ 91,217 $ (36,974) $ 54,243 The following table presents the financial performance and results by segment for the nine months ended September 30, 2023: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 387,587 $ 115 $ 387,702 $ — $ 387,702 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 5,061 — 5,061 — 5,061 Loan servicing and other fees — 182,277 182,277 (38) 182,239 Valuation adjustment of mortgage servicing rights — (4,904) (4,904) — (4,904) Interest income (expense) 4,019 30,884 34,903 (7,711) 27,192 Other income, net 507 150 657 6 663 Net revenue 397,174 208,522 605,696 (7,743) 597,953 Expenses Salaries, incentive compensation and benefits 344,259 23,173 367,432 31,228 398,660 General and administrative 42,251 8,073 50,324 9,816 60,140 Occupancy, equipment and communication 47,356 3,887 51,243 3,125 54,368 Depreciation and amortization 10,198 377 10,575 488 11,063 Provision for foreclosure losses — 554 554 — 554 Income tax expense — — — 19,184 19,184 Net (loss) income $ (46,890) $ 172,458 $ 125,568 $ (71,584) $ 53,984 The following table presents the financial performance and results by segment for the three months ended September 30, 2022: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 154,319 $ 299 $ 154,618 $ — $ 154,618 Loan servicing and other fees — 57,647 57,647 — 57,647 Valuation adjustment of mortgage servicing rights — 41,764 41,764 — 41,764 Interest income (expense) 4,388 3,392 7,780 (1,529) 6,251 Other income, net (32) 979 947 (7) 940 Net revenue 158,675 104,081 262,756 (1,536) 261,220 Expenses Salaries, incentive compensation and benefits 124,909 6,955 131,864 5,508 137,372 General and administrative 13,706 2,420 16,126 3,286 19,412 Occupancy, equipment and communication 15,043 1,202 16,245 1,057 17,302 Depreciation and amortization 3,498 159 3,657 238 3,895 Reversal of foreclosure losses — (3,449) (3,449) — (3,449) Income tax expense — — — 9,321 9,321 Net income (loss) $ 1,519 $ 96,794 $ 98,313 $ (20,946) $ 77,367 The following table presents the financial performance and results by segment for the nine months ended September 30, 2022: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 599,285 $ 5,944 $ 605,229 $ — $ 605,229 Loan servicing and other fees — 165,419 165,419 — 165,419 Valuation adjustment of mortgage servicing rights — 247,439 247,439 — 247,439 Interest income (expense) 17,183 (1,233) 15,950 (4,700) 11,250 Other income, net (57) 1,054 997 185 1,182 Net revenue 616,411 418,623 1,035,034 (4,515) 1,030,519 Expenses Salaries, incentive compensation and benefits 464,368 21,722 486,090 16,803 502,893 General and administrative 3,455 7,342 10,797 9,356 20,153 Occupancy, equipment and communication 47,645 3,599 51,244 3,343 54,587 Depreciation and amortization 10,374 483 10,857 759 11,616 Reversal of foreclosure losses — (1,974) (1,974) — (1,974) Income tax expense — — — 99,615 99,615 Net income (loss) $ 90,569 $ 387,451 $ 478,020 $ (134,391) $ 343,629 |
BUSINESS, BASIS OF PRESENTATI_3
BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Account balance in trust for investors and escrow balances for mortgagors | $ 1,000,000 | $ 1,000,000 | $ 600,000 | |
Common stock dividends declared (in dollars per share) | $ 0.50 | |||
Common stock dividends paid (in dollars per share) | $ 0.50 | |||
Payments of dividends | $ 30,500 | $ 30,479 | $ 0 | |
Restricted Stock Units | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Dividend equivalent units granted (in shares) | 95,413 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Weighted Average | Loan funding probability (“pull-through”) | IRLCs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan funding probability (pull-through rate) | 0.843 | 0.934 |
Weighted Average | Loan funding probability (“pull-through”) | Recurring Fair Value Measurements | Level 3 | IRLCs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan funding probability (pull-through rate) | 0.843 | 0.934 |
Minimum | Loan funding probability (“pull-through”) | IRLCs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan funding probability (pull-through rate) | 0 | 0 |
Minimum | Discount rate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.145 | |
Maximum | Loan funding probability (“pull-through”) | IRLCs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan funding probability (pull-through rate) | 1 | 1 |
Maximum | Discount rate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.250 | 0.250 |
Median | Discount rate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.150 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||||||
Trading securities | $ 89 | $ 96 | ||||
Derivative | ||||||
Derivative assets | 24,401 | 3,120 | ||||
Mortgage loans held for sale | 932,771 | 845,775 | $ 929,561 | $ 2,204,216 | ||
Mortgage servicing rights | 1,258,313 | $ 1,184,503 | 1,139,539 | $ 1,129,551 | $ 1,030,310 | $ 675,340 |
Investment in warrants | 961 | 961 | ||||
Derivative | ||||||
Forward delivery commitments and best efforts sales commitments | 0 | 5,173 | ||||
HMBS-related borrowings | 71,278 | $ 0 | 0 | |||
Contingent liabilities due to acquisitions | 7,239 | 526 | ||||
Recurring Fair Value Measurements | ||||||
Assets: | ||||||
Trading securities | 89 | 96 | ||||
Notes receivable | 14,809 | |||||
Derivative | ||||||
Mortgage loans held for sale | 932,771 | 845,775 | ||||
Reverse mortgage loans held for investment | 81,457 | |||||
Mortgage servicing rights | 1,258,313 | 1,139,539 | ||||
Investment in warrants | 961 | 961 | ||||
Total assets at fair value | 2,312,801 | 1,989,491 | ||||
Derivative | ||||||
HMBS-related borrowings | 71,278 | |||||
Contingent liabilities due to acquisitions | 7,239 | 526 | ||||
Total liabilities at fair value | 78,517 | 5,699 | ||||
Recurring Fair Value Measurements | Forward delivery commitments and best efforts sales commitments | ||||||
Derivative | ||||||
Derivative assets | 12,182 | 1,602 | ||||
Derivative | ||||||
Forward delivery commitments and best efforts sales commitments | 5,173 | |||||
Recurring Fair Value Measurements | Interest rate lock commitments | ||||||
Derivative | ||||||
Derivative assets | 1,518 | |||||
Recurring Fair Value Measurements | IRLCs | ||||||
Derivative | ||||||
Derivative assets | 12,219 | |||||
Recurring Fair Value Measurements | Level 1 | ||||||
Assets: | ||||||
Trading securities | 89 | 96 | ||||
Notes receivable | 0 | |||||
Derivative | ||||||
Mortgage loans held for sale | 0 | 0 | ||||
Reverse mortgage loans held for investment | 0 | |||||
Mortgage servicing rights | 0 | 0 | ||||
Investment in warrants | 0 | 0 | ||||
Total assets at fair value | 89 | 96 | ||||
Derivative | ||||||
HMBS-related borrowings | 0 | |||||
Contingent liabilities due to acquisitions | 0 | 0 | ||||
Total liabilities at fair value | 0 | 0 | ||||
Recurring Fair Value Measurements | Level 1 | Forward delivery commitments and best efforts sales commitments | ||||||
Derivative | ||||||
Derivative assets | 0 | 0 | ||||
Derivative | ||||||
Forward delivery commitments and best efforts sales commitments | 0 | |||||
Recurring Fair Value Measurements | Level 1 | Interest rate lock commitments | ||||||
Derivative | ||||||
Derivative assets | 0 | |||||
Recurring Fair Value Measurements | Level 1 | IRLCs | ||||||
Derivative | ||||||
Derivative assets | 0 | |||||
Recurring Fair Value Measurements | Level 2 | ||||||
Assets: | ||||||
Trading securities | 0 | 0 | ||||
Notes receivable | 0 | |||||
Derivative | ||||||
Mortgage loans held for sale | 932,771 | 845,775 | ||||
Reverse mortgage loans held for investment | 0 | |||||
Mortgage servicing rights | 0 | 0 | ||||
Investment in warrants | 0 | 0 | ||||
Total assets at fair value | 944,953 | 847,377 | ||||
Derivative | ||||||
HMBS-related borrowings | 0 | |||||
Contingent liabilities due to acquisitions | 0 | 0 | ||||
Total liabilities at fair value | 0 | 5,173 | ||||
Recurring Fair Value Measurements | Level 2 | Forward delivery commitments and best efforts sales commitments | ||||||
Derivative | ||||||
Derivative assets | 12,182 | 1,602 | ||||
Derivative | ||||||
Forward delivery commitments and best efforts sales commitments | 5,173 | |||||
Recurring Fair Value Measurements | Level 2 | Interest rate lock commitments | ||||||
Derivative | ||||||
Derivative assets | 0 | |||||
Recurring Fair Value Measurements | Level 2 | IRLCs | ||||||
Derivative | ||||||
Derivative assets | 0 | |||||
Recurring Fair Value Measurements | Level 3 | ||||||
Assets: | ||||||
Trading securities | 0 | 0 | ||||
Notes receivable | 14,809 | |||||
Derivative | ||||||
Mortgage loans held for sale | 0 | 0 | ||||
Reverse mortgage loans held for investment | 81,457 | |||||
Mortgage servicing rights | 1,258,313 | 1,139,539 | ||||
Investment in warrants | 961 | 961 | ||||
Total assets at fair value | 1,367,759 | 1,142,018 | ||||
Derivative | ||||||
HMBS-related borrowings | 71,278 | |||||
Contingent liabilities due to acquisitions | 7,239 | 526 | ||||
Total liabilities at fair value | 78,517 | 526 | ||||
Recurring Fair Value Measurements | Level 3 | Forward delivery commitments and best efforts sales commitments | ||||||
Derivative | ||||||
Derivative assets | 0 | 0 | ||||
Derivative | ||||||
Forward delivery commitments and best efforts sales commitments | 0 | |||||
Recurring Fair Value Measurements | Level 3 | Interest rate lock commitments | ||||||
Derivative | ||||||
Derivative assets | $ 1,518 | |||||
Recurring Fair Value Measurements | Level 3 | IRLCs | ||||||
Derivative | ||||||
Derivative assets | $ 12,219 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Reconciliation of Level Three Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Contingent Liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 7,793 | $ 1,557 | $ 526 | $ 59,500 |
Additions | 0 | 6,103 | ||
Payments | (1,884) | (14,425) | ||
Valuation adjustments | (554) | 327 | 610 | (45,075) |
Ending balance | 7,239 | 0 | 7,239 | 0 |
IRLCs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 5,613 | 14,600 | 1,518 | 22,119 |
Net transfers and revaluation gains (losses) | 6,606 | (38,177) | 10,701 | (45,696) |
Ending balance | 12,219 | (23,577) | 12,219 | (23,577) |
Notes Receivable | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 9,824 | 0 | 0 | 0 |
Additions | 5,156 | 16,406 | ||
Valuation adjustments | (171) | (1,597) | ||
Ending balance | $ 14,809 | $ 0 | $ 14,809 | $ 0 |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-Recurring Fair Value Measurements - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Total assets at fair value | $ 639,023 | $ 650,179 |
Liabilities: | ||
Total liabilities at fair value | 639,370 | 650,179 |
Ginnie Mae | ||
Assets: | ||
Total assets at fair value | 639,023 | 650,179 |
Liabilities: | ||
Total liabilities at fair value | 639,370 | 650,179 |
Level 1 | ||
Assets: | ||
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Level 1 | Ginnie Mae | ||
Assets: | ||
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets at fair value | 639,023 | 650,179 |
Liabilities: | ||
Total liabilities at fair value | 639,370 | 650,179 |
Level 2 | Ginnie Mae | ||
Assets: | ||
Total assets at fair value | 639,023 | 650,179 |
Liabilities: | ||
Total liabilities at fair value | 639,370 | 650,179 |
Level 3 | ||
Assets: | ||
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Level 3 | Ginnie Mae | ||
Assets: | ||
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Option (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||||
Fair Value | $ 932,771 | $ 845,775 | $ 929,561 | $ 2,204,216 |
Principal Amount Due Upon Maturity | 959,523 | 868,833 | ||
Difference | $ (26,752) | $ (23,058) |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Sep. 11, 2023 | Apr. 03, 2023 | Feb. 13, 2023 |
First Centennial Mortgage Corporation | |||
Business Acquisition [Line Items] | |||
Total fair value of consideration transferred | $ 2.1 | ||
Cherry Creek Mortgage, LLC | |||
Business Acquisition [Line Items] | |||
Total fair value of consideration transferred | $ 8.3 | ||
Payments to acquire businesses, gross | 2.6 | ||
Fair value of contingent consideration | 4.4 | ||
Issuance discount on note receivable | $ 1.3 | ||
Legacy Mortgage, LLC | |||
Business Acquisition [Line Items] | |||
Total fair value of consideration transferred | $ 5 | ||
Payments to acquire businesses, gross | 3.3 | ||
Fair value of contingent consideration | $ 1.7 |
ACCOUNTS, NOTES AND INTEREST _3
ACCOUNTS, NOTES AND INTEREST RECEIVABLE - Schedule of Accounts , Notes and Interest Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Trust advances | $ 20,814 | $ 44,164 |
Foreclosure advances, net | 18,669 | 12,320 |
Receivables related to loan sales | 2,316 | 562 |
Notes receivable and advances | 16,604 | 0 |
Accrued interest - notes receivable | 512 | 0 |
Other | 4,734 | 1,258 |
Total accounts, notes and interest receivable | $ 63,649 | $ 58,304 |
ACCOUNTS, NOTES AND INTEREST _4
ACCOUNTS, NOTES AND INTEREST RECEIVABLE - Schedule of Activity of the Foreclosure Loss Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Foreclosure Loss Reserve [Abstract] | ||||
Balance — beginning of period | $ 6,659 | $ 10,997 | $ 8,698 | $ 10,355 |
Utilization of foreclosure reserve | (549) | (603) | (3,058) | (1,436) |
Provision for (reversal of) foreclosure losses | 84 | (3,449) | 554 | (1,974) |
Balance — end of period | $ 6,194 | $ 6,945 | $ 6,194 | $ 6,945 |
ACCOUNTS, NOTES AND INTEREST _5
ACCOUNTS, NOTES AND INTEREST RECEIVABLE - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Notes receivable | $ 16,604 | $ 0 | |
Cherry Creek Mortgage, LLC | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Notes receivable | $ 11,300 | ||
Discount on note receivable | $ 1,300 | ||
Term of earn out payment | 4 years | ||
Percentage of interest payment allowed to be paid-in-kind | 50% |
OTHER ASSETS - Schedule of Othe
OTHER ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Prepaid expenses | $ 27,913 | $ 31,499 |
Company owned life insurance | 39,731 | 37,871 |
Property and equipment, net | 14,568 | 12,118 |
Right-of-use assets | 69,560 | 74,660 |
Income tax receivable | 8,320 | 26,531 |
Real estate owned | 1,968 | 306 |
Land | 1,973 | 2,034 |
Trading securities | 89 | 96 |
Investments in unconsolidated joint ventures, net | 756 | 0 |
Investment in warrants | 961 | 961 |
Total other assets | $ 165,839 | $ 186,076 |
OTHER ASSETS - Schedule of Prop
OTHER ASSETS - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 91,848 | $ 84,361 |
Accumulated depreciation | (77,280) | (72,243) |
Property and equipment, net | 14,568 | 12,118 |
Computer equipment | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 30,813 | 29,447 |
Furniture and equipment | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 25,768 | 25,072 |
Leasehold improvements | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 20,296 | 18,713 |
Internal-use software in production | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,523 | 772 |
Internal-use software | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 11,448 | $ 10,357 |
OTHER ASSETS - Additional Infor
OTHER ASSETS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Assets [Abstract] | ||||
Depreciation and amortization expense for property and equipment | $ 1.7 | $ 2 | $ 5.1 | $ 5.7 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Changes in Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized hedging gains | $ 26,454 | $ 22,366 | ||
Not Designated as Hedging Instruments | Loan Origination Fees and Gain on Sale of Loans, Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized hedging gains | $ 10,699 | $ 29,290 | $ 26,454 | $ 22,366 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Notional and Fair Value of Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative assets | $ 24,401 | $ 3,120 |
Derivative liabilities | 0 | 5,173 |
IRLCs | Not Designated as Hedging Instruments | ||
Derivative [Line Items] | ||
Notional Value | 1,212,847 | 810,514 |
Derivative assets | 12,219 | 1,518 |
Derivative liabilities | 0 | 0 |
Forward delivery commitments and best efforts sales commitments | Not Designated as Hedging Instruments | ||
Derivative [Line Items] | ||
Notional Value | 1,387,849 | 1,127,154 |
Derivative assets | 12,182 | 1,602 |
Derivative liabilities | $ 0 | $ 5,173 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Outstanding forward contracts and mandatory sell commitments | $ 233,000,000 | $ 233,000,000 | $ 256,300,000 | ||
Closed hedge instruments not yet settled | 375,000,000 | 375,000,000 | $ 470,800,000 | ||
Provision for Other Credit Losses | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Quantitative Information About IRLCs and Fair Value Measurements (Details) - IRLCs - Loan funding probability (“pull-through”) | Sep. 30, 2023 | Dec. 31, 2022 |
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”) | 1 | 1 |
Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 0.843 | 0.934 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Financial Assets and Liabilities are Subject to Master Netting Arrangements or Similar Agreements Categorized by Financial Instrument (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative assets | $ 24,401 | $ 3,120 |
Derivative liabilities | 0 | (5,173) |
Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative liabilities | (10,132) | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative liabilities | 4,959 | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liabilities | (5,173) | |
Derivative Financial Instruments, Assets | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative assets | 12,609 | 1,887 |
Gross Amounts Offset in the Balance Sheet | ||
Derivative assets | (427) | (285) |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative assets | 12,182 | 1,602 |
Forward delivery commitments and best efforts sales commitments | Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative liabilities | (11,399) | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative liabilities | 4,959 | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liabilities | (6,440) | |
Forward delivery commitments and best efforts sales commitments | Derivative Financial Instruments, Assets | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative assets | 12,609 | 1,887 |
Gross Amounts Offset in the Balance Sheet | ||
Derivative assets | (427) | (285) |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative assets | $ 12,182 | 1,602 |
Margin calls | Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative assets | 1,267 | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative assets | 0 | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative assets | $ 1,267 |
MORTGAGE SERVICING RIGHTS - Sch
MORTGAGE SERVICING RIGHTS - Schedule of Activity of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Asset at Fair Value, Balance [Roll Forward] | ||||
Balance — beginning of period | $ 1,184,503 | $ 1,030,310 | $ 1,139,539 | $ 675,340 |
MSRs originated | 51,733 | 57,477 | 123,678 | 206,772 |
Changes in fair value: | ||||
Due to collection/realization of cash flows | (16,127) | (19,659) | (43,187) | (70,380) |
Due to changes in valuation model inputs or assumptions | 38,204 | 61,423 | 38,283 | 317,819 |
Balance — end of period | $ 1,258,313 | $ 1,129,551 | $ 1,258,313 | $ 1,129,551 |
MORTGAGE SERVICING RIGHTS - S_2
MORTGAGE SERVICING RIGHTS - Schedule of the Weighted Average Discount Rate, Prepayment Speed and Cost to Service Assumptions Used to Determine the Fair Value of MSRs (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
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% | 9.60% |
Prepayment rate | 6.30% | 6.60% |
Cost to service (per loan) | $ 71.8 | $ 66.7 |
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 | 15.50% | 15.70% |
Prepayment rate | 28% | 28.60% |
Cost to service (per loan) | $ 305.2 | $ 330.4 |
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 | 10.80% | 10.60% |
Prepayment rate | 7.40% | 7.50% |
Cost to service (per loan) | $ 94.4 | $ 92 |
MORTGAGE SERVICING RIGHTS - Add
MORTGAGE SERVICING RIGHTS - Additional Information (Details) - USD ($) $ in Billions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Mortgage servicing right weighted average life | 8 years 6 months | 8 years 6 months |
Unpaid principal balance of mortgage loans serviced | $ 83.7 | $ 78.9 |
MORTGAGE SERVICING RIGHTS - S_3
MORTGAGE SERVICING RIGHTS - Schedule of Actual Revenue Generated from Servicing Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Transfers and Servicing [Abstract] | ||||
Servicing fees from servicing portfolio | $ 60,992 | $ 56,410 | $ 179,382 | $ 161,342 |
Late fees | 1,729 | 1,486 | 5,016 | 4,369 |
Other ancillary servicing revenue and fees | (780) | (249) | (2,159) | (292) |
Loan servicing and other fees | $ 61,941 | $ 57,647 | $ 182,239 | $ 165,419 |
MORTGAGE SERVICING RIGHTS - S_4
MORTGAGE SERVICING RIGHTS - Schedule of Impact of Adverse Changes on Prepayment Speeds, Discount Rate and Cost to Service at Two Different Data Points (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Transfers and Servicing [Abstract] | ||
Mortgage servicing rights, Prepayment Speeds, 10% Adverse Change | $ (38,165) | $ (36,298) |
Mortgage servicing rights, Prepayment Speeds, 20% Adverse Change | (74,836) | (70,878) |
Mortgage servicing rights, Discount Rates, 10% Adverse Change | (53,571) | (50,392) |
Mortgage servicing rights, Discount Rates, 20% Adverse Change | (103,720) | (96,848) |
Mortgage servicing rights, Cost to Service (per loan), 10% Adverse Change | (11,965) | (11,880) |
Mortgage servicing rights, Cost to Service (per loan), 20% Adverse Change | $ (24,189) | $ (24,162) |
MORTGAGE LOANS HELD FOR SALE -
MORTGAGE LOANS HELD FOR SALE - Schedule of Reconciliation of Changes in Mortgage Loans Held for Sale to Amounts Presented in Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Mortgages Held For Sale [Roll Forward] | ||
Balance — beginning of period | $ 845,775 | $ 2,204,216 |
Origination of mortgage loans held for sale | 10,910,122 | 16,265,741 |
Proceeds on sale of and payments from mortgage loans held for sale | (11,067,062) | (17,916,073) |
Gain on sale of mortgage loans excluding fair value of other financial instruments, net | 247,547 | 440,974 |
Valuation adjustment of mortgage loans held for sale | (3,611) | (65,297) |
Balance — end of period | $ 932,771 | $ 929,561 |
MORTGAGE LOANS HELD FOR SALE _2
MORTGAGE LOANS HELD FOR SALE - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Mortgage Loans Held For Sale [Abstract] | ||||
Mortgage loans held for sale unpaid principal balances of underlying loans | $ 959,523 | $ 868,833 | ||
Mortgage loans held for sale, fair value | $ 932,771 | $ 845,775 | $ 929,561 | $ 2,204,216 |
REVERSE MORTGAGE LOANS HELD F_3
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS - Schedule of Loans Held For Investment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Reverse Mortgage Loans Held for Investment | ||
Balance — beginning of period | $ 36,709 | $ 0 |
Originations and purchases | 42,894 | 77,297 |
Repayments (principal payments received) | (734) | (734) |
Change in fair value recognized in earnings | 2,588 | 4,894 |
Balance — end of period | 81,457 | 81,457 |
HMBS-Related Borrowings | ||
Balance — beginning of period | 0 | 0 |
Securitization of HECM loans accounted for as a financing (including realized fair value changes) | (71,445) | (71,445) |
Repayments (principal payments received) | 0 | 0 |
Change in fair value recognized in earnings | 167 | 167 |
Balance — end of period | (71,278) | (71,278) |
Reverse Mortgage Loans Held for Investment | ||
Securitized loans (pledged to HMBS-related borrowings) | 73,443 | 73,443 |
Unsecuritized loans | 8,014 | 8,014 |
Total | 81,457 | 81,457 |
HMBS-Related Borrowings | ||
Securitized loans (pledged to HMBS-related borrowings) | (71,278) | (71,278) |
Home Equity Conversion Mortgage-Backed Securities Related Borrowings At Fair Value | $ 71,278 | $ 71,278 |
REVERSE MORTGAGE LOANS HELD F_4
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS - Schedule of Significant Unobservable Inputs Used to Value the Reverse Mortgage Loans Held for Investment and HMBS-related Borrowings (Details) | Sep. 30, 2023 |
Discount rate | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |
Measurement input | 0.120 |
Minimum | Life in years | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |
Measurement input | 0.4 |
Minimum | Conditional prepayment rate including voluntary and involuntary prepayments | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |
Measurement input | 0.020 |
Maximum | Life in years | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |
Measurement input | 9.4 |
Maximum | Conditional prepayment rate including voluntary and involuntary prepayments | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |
Measurement input | 0.445 |
Weighted Average | Life in years | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |
Measurement input | 7.8 |
Weighted Average | Weighted average interest rate | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |
Measurement input | 0.077 |
Weighted Average | Conditional prepayment rate including voluntary and involuntary prepayments | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |
Measurement input | 0.126 |
INVESTOR RESERVES (Details)
INVESTOR RESERVES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investor Reserves [Roll Forward] | ||||
Balance — beginning of period | $ 18,364 | $ 16,919 | $ 16,094 | $ 18,437 |
Benefit from investor reserves | (1,371) | (2,479) | (4,119) | (3,101) |
Provision for investor reserves | 3,029 | 1,575 | 8,047 | 679 |
Balance — end of period | $ 20,022 | $ 16,015 | $ 20,022 | $ 16,015 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Changes in the Carrying Amount of Goodwill Allocated to the Origination Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 176,769 | $ 176,769 | |
Measurement period adjustments to goodwill | 760 | $ (1,710) | |
Goodwill, ending balance | 186,183 | ||
Legacy Mortgage, LLC | |||
Goodwill [Roll Forward] | |||
Goodwill acquired | 4,621 | ||
Cherry Creek Mortgage, Inc. | |||
Goodwill [Roll Forward] | |||
Goodwill acquired | 2,744 | ||
First Centennial Mortgage Corporation | |||
Goodwill [Roll Forward] | |||
Goodwill acquired | $ 1,289 | ||
Retention Bonuses | Inlanta Mortgage Inc. | |||
Goodwill [Roll Forward] | |||
Measurement period adjustments to goodwill | 1,500 | ||
Partial Return Of Purchase Price | Inlanta Mortgage Inc. | |||
Goodwill [Roll Forward] | |||
Measurement period adjustments to goodwill | $ (800) | ||
Partial return of the purchase price, threshold period | 90 days |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 45,000 | |
Accumulated Amortization | 17,887 | |
Net Intangibles | $ 27,113 | $ 33,075 |
Weighted Average Amortization Period (Years) | 3 years 7 months 6 days | |
Referral network | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 42,300 | |
Accumulated Amortization | 15,862 | |
Net Intangibles | $ 26,438 | |
Weighted Average Amortization Period (Years) | 3 years 6 months | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 2,700 | |
Accumulated Amortization | 2,025 | |
Net Intangibles | $ 675 | |
Weighted Average Amortization Period (Years) | 1 month 6 days |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 2 | $ 2 | $ 6 | $ 6 |
WAREHOUSE LINES OF CREDIT - Sch
WAREHOUSE LINES OF CREDIT - Schedule of Warehouse Lines of Credit (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Warehouse Lines of Credit [Line Items] | ||
Net warehouse lines of credit | $ 839,122,000 | $ 713,151,000 |
Warehouse Agreement Borrowings | ||
Warehouse Lines of Credit [Line Items] | ||
Warehouse lines of credit | 842,151,000 | 714,801,000 |
Prepaid commitment fees | (3,029,000) | (1,650,000) |
Net warehouse lines of credit | 839,122,000 | 713,151,000 |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $345 Million, Due January 2024 | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | 345,000,000 | |
Warehouse lines of credit | 107,912,000 | 47,565,000 |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $150 Million, Due August 2024 | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | 150,000,000 | |
Warehouse lines of credit | 113,126,000 | 10,848,000 |
Minimum deposit required for line of credit | 750,000 | |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $300 Million, Due June 2024 | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | 300,000,000 | |
Warehouse lines of credit | 173,377,000 | 189,512,000 |
Minimum deposit required for line of credit | 1,500,000 | |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $200 Million, Due May 2024 | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | 200,000,000 | |
Warehouse lines of credit | $ 84,020,000 | 110,605,000 |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $200 Million, Due May 2024 | SOFR | ||
Warehouse Lines of Credit [Line Items] | ||
Line of credit, floor interest rate | 0.375% | |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $200 Million, Due November 2023 | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | $ 200,000,000 | |
Warehouse lines of credit | $ 82,721,000 | 16,131,000 |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $200 Million, Due November 2023 | SOFR | ||
Warehouse Lines of Credit [Line Items] | ||
Line of credit, floor interest rate | 0.40% | |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $300 Million, Due September 2024 | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | $ 300,000,000 | |
Warehouse lines of credit | $ 128,197,000 | 81,353,000 |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $300 Million, Due September 2024 | SOFR | ||
Warehouse Lines of Credit [Line Items] | ||
Line of credit, floor interest rate | 0.50% | |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $100 Million | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | $ 100,000,000 | |
Warehouse lines of credit | 0 | 56,237,000 |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $50 Million | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | 50,000,000 | |
Warehouse lines of credit | $ 30,851,000 | 0 |
Maturity, period from written notice | 30 days | |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $75 Million, Due March 2025 | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | $ 75,000,000 | |
Warehouse lines of credit | $ 35,041,000 | 40,096,000 |
Stated interest rate | 3.375% | |
Maximum term of buyout transactions on facility | 4 years | |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $200 Million | ||
Warehouse Lines of Credit [Line Items] | ||
Borrowing capacity | $ 200,000,000 | |
Warehouse lines of credit | $ 86,906,000 | $ 162,454,000 |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $200 Million | SOFR | ||
Warehouse Lines of Credit [Line Items] | ||
Line of credit, floor interest rate | 0.75% |
WAREHOUSE LINES OF CREDIT - Add
WAREHOUSE LINES OF CREDIT - Additional Information (Details) - Warehouse Agreement Borrowings - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Warehouse Lines of Credit [Line Items] | ||
Weighted average interest rate | 6.98% | 3.31% |
Cash balances | $ 9.2 | $ 50.7 |
NOTES PAYABLE - Additional Info
NOTES PAYABLE - Additional Information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Term Note | |||
Debt Instrument [Line Items] | |||
Current borrowing capacity | $ 125,000,000 | $ 125,000,000 | |
Maximum borrowing capacity | 175,000,000 | 175,000,000 | |
Outstanding borrowings | $ 0 | $ 0 | $ 106,300,000 |
Periodic payment, principal, percentage of outstanding balance | 5% | 5% | |
Remaining balance | $ 87,500,000 | ||
Revolving Credit Facility | Government National Mortgage Association | |||
Debt Instrument [Line Items] | |||
Unused facility fee percentage | 50% | ||
Current borrowing capacity | 135,000,000 | $ 135,000,000 | |
Maximum borrowing capacity | 200,000,000 | 200,000,000 | |
Outstanding borrowings | 31,000,000 | $ 31,000,000 | 20,000,000 |
Revolving Credit Facility | Federal Home Loan Mortgage Corporation | |||
Debt Instrument [Line Items] | |||
Unused facility fee percentage | 35% | ||
Maximum borrowing capacity | 100,000,000 | $ 100,000,000 | |
Outstanding borrowings | 30,000,000 | 30,000,000 | $ 0 |
Revolving Credit Facility | Federal National Mortgage Association | |||
Debt Instrument [Line Items] | |||
Current borrowing capacity | 250,000,000 | 250,000,000 | |
Maximum borrowing capacity | 400,000,000 | 400,000,000 | |
Outstanding borrowings | $ 87,800,000 | $ 87,800,000 | |
SOFR | Revolving Credit Facility | Government National Mortgage Association | |||
Debt Instrument [Line Items] | |||
Line of credit, floor interest rate | 0.50% | 0.50% | |
SOFR | Revolving Credit Facility | Federal Home Loan Mortgage Corporation | |||
Debt Instrument [Line Items] | |||
Line of credit, floor interest rate | 0.50% | 0.50% | |
SOFR | Revolving Credit Facility | Federal National Mortgage Association | |||
Debt Instrument [Line Items] | |||
Line of credit, floor interest rate | 2% | 2% | |
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% |
STOCKHOLDERS' EQUITY AND EARN_3
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Schedule of Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to Guild | $ 54,249 | $ 77,374 | $ 53,995 | $ 343,604 |
Weighted-average shares outstanding - basic (in shares) | 60,956 | 60,893 | 60,940 | 61,004 |
Weighted-average shares outstanding - diluted (in shares) | 61,913 | 61,563 | 61,976 | 61,806 |
Basic earnings per share: | ||||
Class A and Class B Common Stock (in dollars per share) | $ 0.89 | $ 1.27 | $ 0.89 | $ 5.63 |
Diluted earnings per share: | ||||
Class A and Class B Common Stock (in dollars per share) | $ 0.88 | $ 1.26 | $ 0.87 | $ 5.56 |
Class A Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted-average shares outstanding - basic (in shares) | 20,623 | 20,560 | 20,607 | 20,671 |
Add dilutive effects of non-vested shares of restricted stock - Class A (in shares) | 957 | 670 | 1,036 | 802 |
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 | 40,333 | 40,333 |
STOCKHOLDERS' EQUITY AND EARN_4
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
May 05, 2022 USD ($) | Sep. 30, 2023 USD ($) class $ / shares shares | Jun. 30, 2023 shares | Mar. 31, 2023 shares | Sep. 30, 2022 shares | Jun. 30, 2022 shares | Sep. 30, 2023 USD ($) class vote $ / shares shares | Sep. 30, 2022 shares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Number of shares excluded from calculation of earnings per share (in shares) | 0 | 0 | 0 | 0 | ||||
Number of classes of stock | class | 2 | 2 | ||||||
Stock repurchase program, authorized amount | $ | $ 20 | |||||||
Stock repurchase program, period in force | 24 months | |||||||
Average cost per share (in dollars per share) | $ / shares | $ 11.74 | $ 11.20 | ||||||
Stock repurchase program, remaining authorized repurchase | $ | $ 12.3 | $ 12.3 | ||||||
Restricted Stock Units | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Right to receive common stock, upon vesting (in shares) | 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) | 87,087 | 51,588 | 50,166 | 138,962 | 141,952 | 188,841 | ||
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 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - Restricted Stock Units - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock-based compensation costs recognized | $ 2.3 | $ 1.9 | $ 6.4 | $ 4.9 |
Income tax benefit related to stock-based compensation costs recognized | 0.3 | $ 0.2 | 0.7 | $ 0.7 |
Unrecognized stock-based compensation costs | $ 14 | $ 14 | ||
Unrecognized stock-based compensation expense, period for recognition | 1 year 7 months 6 days |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Billions | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments To Originate Loans | ||
Other Commitments [Line Items] | ||
Commitments | $ 1.2 | $ 0.8 |
Derivative Commitments | ||
Other Commitments [Line Items] | ||
Commitments | $ 1.4 | $ 1.1 |
REGULATORY CAPITAL AND LIQUID_2
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Mortgage Banking [Abstract] | ||
Minimum adjusted net worth balance required | $ 249,327 | $ 86,951 |
SEGMENTS - Additional Informati
SEGMENTS - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 state loan segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 2 |
Servicing | |
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 - Schedule of Financia
SEGMENTS - Schedule of Financial Performance and Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | ||||||||
Loan origination fees and gain on sale of loans, net | $ 158,126 | $ 154,618 | $ 387,702 | $ 605,229 | ||||
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 2,755 | 0 | 5,061 | 0 | ||||
Loan servicing and other fees | 61,941 | 57,647 | 182,239 | 165,419 | ||||
Valuation adjustment of mortgage servicing rights | 22,077 | 41,764 | (4,904) | 247,439 | ||||
Interest income (expense) | 11,954 | 6,251 | 27,192 | 11,250 | ||||
Other income, net | 404 | 940 | 663 | 1,182 | ||||
Net revenue | 257,257 | 261,220 | 597,953 | 1,030,519 | ||||
Expenses | ||||||||
Salaries, incentive compensation and benefits | 142,637 | 137,372 | 398,660 | 502,893 | ||||
General and administrative | 18,809 | 19,412 | 60,140 | 20,153 | ||||
Occupancy, equipment and communication | 18,536 | 17,302 | 54,368 | 54,587 | ||||
Depreciation and amortization | 3,664 | 3,895 | 11,063 | 11,616 | ||||
Provision for (reversal of) foreclosure losses | 84 | (3,449) | 554 | (1,974) | ||||
Income tax expense (benefit) | 19,284 | 9,321 | 19,184 | 99,615 | ||||
Net income (loss) | 54,243 | $ 36,936 | $ (37,195) | 77,367 | $ 58,289 | $ 207,973 | 53,984 | 343,629 |
Operating Segments | ||||||||
Revenue | ||||||||
Loan origination fees and gain on sale of loans, net | 158,126 | 154,618 | 387,702 | 605,229 | ||||
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 2,755 | 5,061 | ||||||
Loan servicing and other fees | 61,941 | 57,647 | 182,277 | 165,419 | ||||
Valuation adjustment of mortgage servicing rights | 22,077 | 41,764 | (4,904) | 247,439 | ||||
Interest income (expense) | 14,596 | 7,780 | 34,903 | 15,950 | ||||
Other income, net | 390 | 947 | 657 | 997 | ||||
Net revenue | 259,885 | 262,756 | 605,696 | 1,035,034 | ||||
Expenses | ||||||||
Salaries, incentive compensation and benefits | 132,082 | 131,864 | 367,432 | 486,090 | ||||
General and administrative | 15,649 | 16,126 | 50,324 | 10,797 | ||||
Occupancy, equipment and communication | 17,401 | 16,245 | 51,243 | 51,244 | ||||
Depreciation and amortization | 3,452 | 3,657 | 10,575 | 10,857 | ||||
Provision for (reversal of) foreclosure losses | 84 | (3,449) | 554 | (1,974) | ||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 91,217 | 98,313 | 125,568 | 478,020 | ||||
All Other | ||||||||
Revenue | ||||||||
Loan origination fees and gain on sale of loans, net | 0 | 0 | 0 | 0 | ||||
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 0 | 0 | ||||||
Loan servicing and other fees | 0 | 0 | (38) | 0 | ||||
Valuation adjustment of mortgage servicing rights | 0 | 0 | 0 | 0 | ||||
Interest income (expense) | (2,642) | (1,529) | (7,711) | (4,700) | ||||
Other income, net | 14 | (7) | 6 | 185 | ||||
Net revenue | (2,628) | (1,536) | (7,743) | (4,515) | ||||
Expenses | ||||||||
Salaries, incentive compensation and benefits | 10,555 | 5,508 | 31,228 | 16,803 | ||||
General and administrative | 3,160 | 3,286 | 9,816 | 9,356 | ||||
Occupancy, equipment and communication | 1,135 | 1,057 | 3,125 | 3,343 | ||||
Depreciation and amortization | 212 | 238 | 488 | 759 | ||||
Provision for (reversal of) foreclosure losses | 0 | 0 | 0 | 0 | ||||
Income tax expense (benefit) | 19,284 | 9,321 | 19,184 | 99,615 | ||||
Net income (loss) | (36,974) | (20,946) | (71,584) | (134,391) | ||||
Origination | Operating Segments | ||||||||
Revenue | ||||||||
Loan origination fees and gain on sale of loans, net | 158,812 | 154,319 | 387,587 | 599,285 | ||||
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 2,755 | 5,061 | ||||||
Loan servicing and other fees | 0 | 0 | 0 | 0 | ||||
Valuation adjustment of mortgage servicing rights | 0 | 0 | 0 | 0 | ||||
Interest income (expense) | 1,388 | 4,388 | 4,019 | 17,183 | ||||
Other income, net | 341 | (32) | 507 | (57) | ||||
Net revenue | 163,296 | 158,675 | 397,174 | 616,411 | ||||
Expenses | ||||||||
Salaries, incentive compensation and benefits | 123,978 | 124,909 | 344,259 | 464,368 | ||||
General and administrative | 12,696 | 13,706 | 42,251 | 3,455 | ||||
Occupancy, equipment and communication | 15,995 | 15,043 | 47,356 | 47,645 | ||||
Depreciation and amortization | 3,435 | 3,498 | 10,198 | 10,374 | ||||
Provision for (reversal of) foreclosure losses | 0 | 0 | 0 | 0 | ||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 7,192 | 1,519 | (46,890) | 90,569 | ||||
Servicing | Operating Segments | ||||||||
Revenue | ||||||||
Loan origination fees and gain on sale of loans, net | (686) | 299 | 115 | 5,944 | ||||
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 0 | 0 | ||||||
Loan servicing and other fees | 61,941 | 57,647 | 182,277 | 165,419 | ||||
Valuation adjustment of mortgage servicing rights | 22,077 | 41,764 | (4,904) | 247,439 | ||||
Interest income (expense) | 13,208 | 3,392 | 30,884 | (1,233) | ||||
Other income, net | 49 | 979 | 150 | 1,054 | ||||
Net revenue | 96,589 | 104,081 | 208,522 | 418,623 | ||||
Expenses | ||||||||
Salaries, incentive compensation and benefits | 8,104 | 6,955 | 23,173 | 21,722 | ||||
General and administrative | 2,953 | 2,420 | 8,073 | 7,342 | ||||
Occupancy, equipment and communication | 1,406 | 1,202 | 3,887 | 3,599 | ||||
Depreciation and amortization | 17 | 159 | 377 | 483 | ||||
Provision for (reversal of) foreclosure losses | 84 | (3,449) | 554 | (1,974) | ||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||||
Net income (loss) | $ 84,025 | $ 96,794 | $ 172,458 | $ 387,451 |