Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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, $0.01 par value per share | |
Trading Symbol | GHLD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001821160 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 21,053,279 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 40,333,019 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 102,185 | $ 120,260 |
Restricted cash | 5,620 | 7,121 |
Mortgage loans held for sale, at fair value | 1,729,007 | 901,227 |
Reverse mortgage loans held for investment, at fair value | 376,182 | 315,912 |
Ginnie Mae loans subject to repurchase right | 568,176 | 699,622 |
Mortgage servicing rights, at fair value | 1,292,662 | 1,161,357 |
Advances, net | 53,640 | 64,748 |
Property and equipment, net | 16,262 | 13,913 |
Right-of-use assets | 72,562 | 65,273 |
Goodwill and intangible assets, net | 230,452 | 211,306 |
Other assets | 133,096 | 115,981 |
Total assets | 4,579,844 | 3,676,720 |
Liabilities and stockholders’ equity | ||
Warehouse lines of credit, net | 1,616,569 | 833,781 |
Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related borrowings | 358,101 | 302,183 |
Ginnie Mae loans subject to repurchase right | 574,707 | 700,120 |
Notes payable | 271,000 | 148,766 |
Accounts payable and accrued expenses | 80,253 | 63,432 |
Operating lease liabilities | 82,780 | 75,832 |
Deferred tax liabilities | 244,722 | 225,021 |
Other liabilities | 129,276 | 144,092 |
Total liabilities | 3,357,408 | 2,493,227 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 51,352 | 47,158 |
Retained earnings | 1,169,852 | 1,135,387 |
Non-controlling interests | 618 | 337 |
Total stockholders’ equity | 1,222,436 | 1,183,493 |
Total liabilities and stockholders’ equity | 4,579,844 | 3,676,720 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock | 211 | 208 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock | $ 403 | $ 403 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, issued (in shares) | 21,061,207 | 20,786,814 |
Common stock, outstanding (in shares) | 21,061,207 | 20,786,814 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 40,333,019 | 40,333,019 |
Common stock, outstanding (in shares) | 40,333,019 | 40,333,019 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | ||||
Loan origination fees and gain on sale of loans, net | $ 205,848 | $ 136,925 | $ 339,908 | $ 229,576 |
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 2,134 | 2,306 | 5,364 | 2,306 |
Loan servicing and other fees | 67,709 | 60,211 | 133,497 | 120,298 |
Valuation adjustment of mortgage servicing rights | 2,134 | 27,890 | 22,912 | (26,981) |
Interest income | 36,219 | 26,584 | 60,947 | 44,829 |
Interest expense | (28,647) | (17,329) | (45,188) | (29,591) |
Other income, net | 288 | 224 | 27 | 259 |
Net revenue | 285,685 | 236,811 | 517,467 | 340,696 |
Expenses | ||||
Salaries, incentive compensation and benefits | 188,938 | 144,903 | 329,005 | 256,023 |
General and administrative | 28,398 | 20,448 | 57,609 | 41,331 |
Occupancy, equipment and communication | 20,348 | 18,402 | 40,163 | 35,832 |
Depreciation and amortization | 3,970 | 3,661 | 7,724 | 7,399 |
(Reversal of) provision for foreclosure losses | (496) | (1,044) | (104) | 470 |
Total expenses | 241,158 | 186,370 | 434,397 | 341,055 |
Income (loss) before income taxes | 44,527 | 50,441 | 83,070 | (359) |
Income tax expense (benefit) | 6,936 | 13,505 | 17,079 | (100) |
Net income (loss) | 37,591 | 36,936 | 65,991 | (259) |
Net income (loss) attributable to non-controlling interests | 8 | 0 | (90) | (5) |
Net income (loss) attributable to Guild | $ 37,583 | $ 36,936 | $ 66,081 | $ (254) |
Earnings (loss) per share attributable to Class A and Class B Common Stock: | ||||
Basic (in dollars per share) | $ 0.61 | $ 0.61 | $ 1.08 | $ 0 |
Diluted (in dollars per share) | $ 0.60 | $ 0.60 | $ 1.06 | $ 0 |
Weighted average shares outstanding of Class A and Class B Common Stock: | ||||
Basic (in shares) | 61,337 | 60,962 | 61,223 | 60,931 |
Diluted (in shares) | 62,393 | 61,801 | 62,275 | 60,931 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Non-controlling Interests |
Beginning balance (in shares) at Dec. 31, 2022 | 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] | ||||||||
Net income (loss) | (37,195) | (37,190) | (5) | |||||
Repurchase and retirement of Class A common stock (in shares) | (50,166) | |||||||
Repurchase and retirement of Class A common stock | (568) | $ (1) | (567) | |||||
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) | ||||||
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 | ||||||
Beginning balance at Dec. 31, 2022 | 1,249,287 | $ 206 | $ 403 | 42,727 | 1,205,885 | 66 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (259) | |||||||
Repurchase and retirement of Class A common stock (in shares) | (101,754) | |||||||
Repurchase and retirement of Class A common stock | $ (1,100) | |||||||
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 | ||
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] | ||||||||
Net income (loss) | 36,936 | 36,936 | ||||||
Repurchase and retirement of Class A common stock (in shares) | (51,588) | (51,588) | ||||||
Repurchase and retirement of Class A common stock | (550) | $ (500) | $ (1) | (549) | ||||
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) | ||||||
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 | ||
Beginning balance (in shares) at Dec. 31, 2023 | 20,786,814 | 40,333,019 | 20,786,814 | 40,333,019 | ||||
Beginning balance at Dec. 31, 2023 | 1,183,493 | $ 208 | $ 403 | 47,158 | 1,135,387 | 337 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 28,400 | 28,498 | (98) | |||||
Repurchase and retirement of Class A common stock (in shares) | (17,747) | |||||||
Repurchase and retirement of Class A common stock | (251) | (251) | ||||||
Stock-based compensation | 2,137 | 2,137 | ||||||
Dividend equivalents on unvested restricted stock units forfeited | 0 | (20) | 20 | |||||
Acquisition of non-controlling interests | 371 | 371 | ||||||
Ending balance (in shares) at Mar. 31, 2024 | 20,769,067 | 40,333,019 | ||||||
Ending balance at Mar. 31, 2024 | 1,214,150 | $ 208 | $ 403 | 49,024 | 1,163,905 | 610 | ||
Beginning balance (in shares) at Dec. 31, 2023 | 20,786,814 | 40,333,019 | 20,786,814 | 40,333,019 | ||||
Beginning balance at Dec. 31, 2023 | 1,183,493 | $ 208 | $ 403 | 47,158 | 1,135,387 | 337 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 65,991 | |||||||
Repurchase and retirement of Class A common stock (in shares) | (31,968) | |||||||
Repurchase and retirement of Class A common stock | $ (500) | |||||||
Ending balance (in shares) at Jun. 30, 2024 | 21,061,207 | 40,333,019 | 21,061,207 | 40,333,019 | ||||
Ending balance at Jun. 30, 2024 | 1,222,436 | $ 211 | $ 403 | 51,352 | 1,169,852 | 618 | ||
Beginning balance (in shares) at Mar. 31, 2024 | 20,769,067 | 40,333,019 | ||||||
Beginning balance at Mar. 31, 2024 | 1,214,150 | $ 208 | $ 403 | 49,024 | 1,163,905 | 610 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 37,591 | 37,583 | 8 | |||||
Cash dividends declared ($0.50 per share) | (30,702) | (30,702) | ||||||
Repurchase and retirement of Class A common stock (in shares) | (14,221) | (14,221) | ||||||
Repurchase and retirement of Class A common stock | (201) | $ (200) | (201) | |||||
Stock-based compensation | 2,687 | 2,687 | ||||||
Dividend equivalents on unvested restricted stock units issued | 0 | 943 | (943) | |||||
Dividend equivalents on unvested restricted stock units forfeited | 0 | (9) | 9 | |||||
Vesting of restricted stock units (in shares) | 384,174 | |||||||
Vesting of restricted stock units | 0 | $ 4 | (4) | |||||
Shares of Class A common stock withheld related to net share settlement (in shares) | (77,813) | |||||||
Shares of Class A common stock withheld related to net share settlement | (1,089) | $ (1) | (1,088) | |||||
Ending balance (in shares) at Jun. 30, 2024 | 21,061,207 | 40,333,019 | 21,061,207 | 40,333,019 | ||||
Ending balance at Jun. 30, 2024 | $ 1,222,436 | $ 211 | $ 403 | $ 51,352 | $ 1,169,852 | $ 618 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) | 3 Months Ended |
Jun. 30, 2024 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock dividends per share (in dollars per share) | $ 0.50 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Cash flows from operating activities | |||||||
Net income (loss) | $ 37,591 | $ 28,400 | $ 36,936 | $ (37,195) | $ 65,991 | $ (259) | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||
Depreciation and amortization | 3,970 | 3,661 | 7,724 | 7,399 | |||
Valuation adjustment of mortgage servicing rights | (2,134) | (27,890) | (22,912) | 26,981 | |||
Valuation adjustment of mortgage loans held for sale | 718 | 6,106 | |||||
Valuation adjustment of reverse mortgage loans held for investment and HMBS-related borrowings | (5,364) | (2,306) | |||||
Unrealized gain on derivatives | (17,506) | (15,755) | |||||
Amortization of right-of-use assets | 11,313 | 10,888 | |||||
Provision for investor reserves | 4,036 | 3,116 | 4,556 | 5,018 | |||
(Reversal of) provision for foreclosure losses | (496) | (1,044) | (104) | 470 | |||
Valuation adjustment of contingent liabilities due to acquisitions, net | 7,838 | 1,248 | |||||
Gain on sale of mortgage loans excluding fair value of other financial instruments, net | (235,539) | (151,020) | |||||
Deferred income taxes | 19,701 | (147) | |||||
Stock-based compensation | 4,824 | 4,079 | |||||
Origination of mortgage servicing rights | (89,631) | (71,945) | |||||
Origination and purchase of mortgage loans held for sale | (9,650,745) | (7,012,503) | |||||
Proceeds on sale of and payments from mortgage loans held for sale | 9,057,786 | 6,877,200 | |||||
Other | 3,160 | 2,015 | |||||
Changes in operating assets and liabilities: | |||||||
Advances and other assets | 6,895 | 14,611 | |||||
Accounts payable and accrued expenses | 17,145 | 1,610 | |||||
Operating lease liabilities | (11,875) | (11,579) | |||||
Other liabilities | (24,917) | (8,010) | |||||
Net cash used in operating activities | (850,942) | (315,899) | |||||
Cash flows from investing activities | |||||||
Acquisition of businesses, net of cash acquired | (17,710) | (5,480) | |||||
Origination and purchase of reverse mortgage loans held for investment | (67,483) | (34,402) | |||||
Principal payments received on reverse mortgage loans held for investment | 23,620 | 0 | |||||
Issuance of notes receivable | 0 | (11,250) | |||||
Purchases of property and equipment, net | (4,023) | (2,423) | |||||
Other | (19,490) | (854) | |||||
Net cash used in investing activities | (85,086) | (54,409) | |||||
Cash flows from financing activities | |||||||
Borrowings on warehouse lines of credit | 10,292,580 | 6,954,199 | |||||
Repayments on warehouse lines of credit | (9,509,783) | (6,614,142) | |||||
Proceeds from issuance of reverse mortgage loans and tails accounted for as HMBS-related obligations | 66,201 | 0 | |||||
Repayments on HMBS-related obligations | (21,326) | 0 | |||||
Borrowings on notes payable | 122,234 | 30,000 | |||||
Repayments on notes payable | 0 | (32,500) | |||||
Net change in related party notes payable | 0 | (530) | |||||
Dividends paid | (30,702) | 0 | $ (30,500) | ||||
Repurchases of Class A common stock | (452) | (1,118) | |||||
Taxes paid related to net share settlement of equity awards | (1,089) | (524) | |||||
Other | (1,211) | 0 | |||||
Net cash provided by financing activities | 916,452 | 335,385 | |||||
Decrease in cash, cash equivalents and restricted cash | (19,576) | (34,923) | |||||
Cash, cash equivalents and restricted cash, beginning of period | $ 127,381 | $ 146,754 | 127,381 | 146,754 | 146,754 | ||
Cash, cash equivalents and restricted cash, end of period | 107,805 | 111,831 | 107,805 | 111,831 | 127,381 | ||
Supplemental information | |||||||
Cash paid for interest, net | 14,938 | 7,173 | |||||
Income tax refunds, net of cash paid | (2,472) | (2,144) | |||||
Supplemental disclosure of non-cash investing activities: | |||||||
Measurement period adjustment to goodwill | 0 | 760 | 758 | ||||
Cash, cash equivalents and restricted cash at end of period are comprised of the following: | |||||||
Cash and cash equivalents | 102,185 | 105,963 | 102,185 | 105,963 | 120,260 | ||
Restricted cash | 5,620 | 5,868 | 5,620 | 5,868 | 7,121 | ||
Total cash, cash equivalents and restricted cash | $ 107,805 | $ 111,831 | $ 107,805 | $ 111,831 | $ 127,381 |
BUSINESS, BASIS OF PRESENTATION
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES | BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Business Guild Holdings Company, including its consolidated subsidiaries (collectively, “Guild” or the “Company”) originates, sells, and services residential mortgage loans in the United States. The Company operates in two reportable segments, origination and servicing. The Company operates approximately 480 branches with licenses in 49 states and the District of Columbia. The Company originates residential mortgages through retail and correspondent channels. The Company is certified with the United States Department of Housing and Urban Development (“HUD”) and the Department of Veterans Affairs (“VA”) and operates as a Federal Housing Administration (“FHA”) non-supervised lender. In addition, the Company is an approved issuer with the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), as well as an approved seller and servicer with the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”) and the United States Department of Agriculture Rural Development (“USDA”). 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 unaudited condensed consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest or consolidates as a variable interest entity or joint venture. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet data as of December 31, 2023 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, 2023. The Company follows the same accounting policies for preparing quarterly and annual reports. Reclassifications Certain reclassifications have been made to the condensed consolidated financial statements to conform to the current year’s presentation. 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 $954.7 million and $646.5 million at June 30, 2024 and December 31, 2023, respectively. Recent Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. For public business entities the update will be effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the disclosure requirements related to the new standard. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) (“ASU 2023-07”). ASU 2023-07 requires disclosure, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in the update and existing segment disclosures in Topic 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company is currently evaluating the disclosure requirements related to the new standard. In August 2023, the FASB issued 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 evaluating the impact of adoption of the new guidance on its financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The categorization of assets and liabilities measured at fair value within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to measure fair value are as follows: • Level One - Level One inputs are unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level Two - Level Two inputs are observable for that asset or liability, either directly or indirectly, and include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, observable inputs for the asset or liability other than quoted prices and inputs derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified contractual term, the inputs must be observable for substantially the full term of the asset or liability. • Level Three - Level Three inputs are unobservable inputs for the asset or liability that reflect the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and are developed based on the best information available. The Company updates the valuation of each instrument recorded at fair value on a monthly or quarterly basis, evaluating all available observable information, which may include current market prices or bids, recent trade activity, changes in the levels of market activity and benchmarking of industry data. The assessment also includes consideration of identifying the valuation approach that would be used currently by market participants. If it is determined that a change in valuation technique or its application is appropriate, or if there are other changes in availability of observable data or market activity, the current methodology will be analyzed to determine if a transfer between levels of the valuation hierarchy is appropriate. Such reclassifications are reported as transfers into or out of a level as of the beginning of the quarter that the change occurs. Fair value is based on quoted market prices, when available. If quoted prices are not available, fair value is estimated based upon other observable inputs. Unobservable inputs are used when observable inputs are not available and are based upon judgments and assumptions, which are the Company’s assessment of the assumptions market participants would use in pricing the asset or liability. These inputs may include assumptions about risk, counterparty credit quality, the Company’s creditworthiness and liquidity and are developed based on the best information available. When a determination is made to classify an asset or liability within Level Three of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement of the asset or liability. The fair value of assets and liabilities classified within Level Three of the valuation hierarchy also typically includes observable factors and the realized or unrealized gain or loss recorded from the valuation of these instruments would also include amounts determined by observable factors. Recurring Fair Value Measurements The Company’s fair value measurements are evaluated within the fair value hierarchy, based on the nature of the inputs used to determine the fair value at the measurement date. At June 30, 2024 and December 31, 2023, the Company had the following assets and liabilities that are measured at fair value on a recurring basis: Mortgage Loans Held for Sale (“MLHS”) — 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 8—Reverse Mortgage Loans Held for Investment and HMBS-related Borrowings” for additional information on the Company's reverse mortgage loans held for investment. Mortgage Servicing Rights (“MSRs”) — 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 6—Mortgage Servicing Rights” for additional information on the Company's MSRs. 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”) — 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. On a quarterly basis, actual loan pull-through rates are compared to the modeled estimates to confirm the assumptions are reflective of current trends. Generally, a change in interest rates is accompanied by a directionally opposite change in the assumption used for the pull-through percentage, and the impact to fair value of a change in pull-through would be partially offset by the related change in price. Forward Delivery Commitments — Forward delivery commitments are classified within Level Two of the valuation hierarchy. Forward delivery commitments fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. The fair value of forward delivery commitments is primarily based upon the current agency mortgage-backed security market to-be-announced pricing specific to the loan program, delivery coupon and delivery date of the trade. Best efforts sales commitments are also entered into for certain loans at the time the borrower commitment is made. These best-efforts sales commitments are valued using the committed price to the counterparty against the current market price of the IRLC or mortgage loan held for sale. Option contracts are a type of forward commitment that represents the rights to buy or sell mortgage-backed securities at specified prices in the future. Their value is based upon the underlying current to-be-announced pricing of the agency mortgage-backed security market, and market-based volatility. The Company regularly reviews its critical estimates and assumptions used in the valuation of our IRLCs and forward delivery commitments. See “Note 5—Derivative Financial Instruments” for additional information on derivative instruments. 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. 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 8—Reverse Mortgage Loans Held for Investment and HMBS-related Borrowings” for additional information on the Company's HMBS-related borrowings. 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 June 30, 2024 the range of the risk adjusted discount rate was 23.2% - 25.0%, with a weighted average of 24.1% and at December 31, 2023 the risk adjusted discount rate was 25.0%. 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 Operations. The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2024: (in thousands) Level 1 Level 2 Level 3 Total Assets: Mortgage loans held for sale $ — $ 1,729,007 $ — $ 1,729,007 Reverse mortgage loans held for investment — — 376,182 376,182 Mortgage servicing rights — — 1,292,662 1,292,662 Derivative assets Interest rate lock commitments — — 18,172 18,172 Forward delivery commitments — 2,754 — 2,754 Notes receivable — — 11,376 11,376 Total assets at fair value $ — $ 1,731,761 $ 1,698,392 $ 3,430,153 Liabilities: HMBS-related borrowings $ — $ — $ 358,101 $ 358,101 Derivative liabilities Forward delivery commitments and best efforts sales commitments — 4,666 — 4,666 Contingent liabilities due to acquisitions — — 26,575 26,575 Total liabilities at fair value $ — $ 4,666 $ 384,676 $ 389,342 The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2023: (in thousands) Level 1 Level 2 Level 3 Total Assets: Mortgage loans held for sale $ — $ 901,227 $ — $ 901,227 Reverse mortgage loans held for investment — — 315,912 315,912 Mortgage servicing rights — — 1,161,357 1,161,357 Derivative assets Interest rate lock commitments — — 14,902 14,902 Forward delivery commitments — 693 — 693 Notes receivable — — 10,627 10,627 Total assets at fair value $ — $ 901,920 $ 1,502,798 $ 2,404,718 Liabilities: HMBS-related borrowings $ — $ — $ 302,183 $ 302,183 Derivative liabilities Forward delivery commitments and best efforts sales commitments — 16,245 — 16,245 Contingent liabilities due to acquisitions — — 8,720 8,720 Total liabilities at fair value $ — $ 16,245 $ 310,903 $ 327,148 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 six months ended June 30, 2024: (in thousands) Interest Rate Lock Commitments Notes Receivable Contingent Liabilities Balance at March 31, 2024 $ 23,588 $ 11,006 $ 20,101 Net transfers and revaluation losses (5,416) — — Additions — 159 — Valuation adjustments — 211 6,474 Balance at June 30, 2024 $ 18,172 $ 11,376 $ 26,575 Balance at December 31, 2023 $ 14,902 $ 10,627 $ 8,720 Net transfers and revaluation losses 3,270 — — Additions — 308 10,017 Valuation adjustments — 441 7,838 Balance at June 30, 2024 $ 18,172 $ 11,376 $ 26,575 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 six months ended June 30, 2023: (in thousands) Interest Rate Lock Commitments Notes Receivable Contingent Liabilities Balance at March 31, 2023 $ 12,206 $ 11,250 $ 2,218 Net transfers and revaluation losses (6,593) — — Additions — — 4,401 Valuation adjustments — (1,426) 1,174 Balance at June 30, 2023 $ 5,613 $ 9,824 $ 7,793 Balance at December 31, 2022 $ 1,518 $ — $ 526 Net transfers and revaluation losses 4,095 — — Additions — 11,250 6,103 Valuation adjustments — (1,426) 1,164 Balance at June 30, 2023 $ 5,613 $ 9,824 $ 7,793 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 for the three and six months ended June 30, 2024 and June 30, 2023. 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 June 30, 2024 and December 31, 2023, the Company had the following financial assets measured at fair value on a non-recurring basis: Ginnie Mae Loans Subject to Repurchase Right — GNMA securitization programs allow servicers to buy back individual delinquent mortgage loans from the securitized loan pool once certain conditions are met. If a borrower makes no payment for three consecutive months, the servicer has the option to repurchase the delinquent loan for an amount equal to 100% of the loan’s remaining principal balance. Under ASC 860, Transfers and Servicing , this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. The Company records these assets and liabilities at their fair value, which is determined to be the remaining 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 June 30, 2024: (in thousands) Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 568,176 $ — $ 568,176 Total assets at fair value $ — $ 568,176 $ — $ 568,176 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 574,707 $ — $ 574,707 Total liabilities at fair value $ — $ 574,707 $ — $ 574,707 The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2023: (in thousands) Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 699,622 $ — $ 699,622 Total assets at fair value $ — $ 699,622 $ — $ 699,622 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 700,120 $ — $ 700,120 Total liabilities at fair value $ — $ 700,120 $ — $ 700,120 Fair Value Option The Company has elected to measure its MLHS, reverse mortgage loans held for investment, notes receivable and HMBS-related borrowings at fair value. The following is the estimated fair value and UPB of assets and liabilities that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected as the Company believes fair value best reflects their expected future economic performance and to align with the Company’s business and risk management strategies. (in thousands) Fair Value Principal Difference June 30, 2024 Assets: Mortgage loans held for sale (1) $ 1,729,007 $ 1,723,047 $ 5,960 Reverse mortgage loans held for investment (2) 376,182 335,691 40,491 Notes receivable 11,376 11,864 (488) Liabilities: HMBS-related borrowings $ 358,101 $ 348,865 $ 9,236 _____________________________ (1) MLHS that were 90 days or more past due had a fair value of $5.6 million and UPB of $7.3 million. (2) Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $3.1 million and UPB of $3.0 million. (in thousands) Fair Value Principal Difference December 31, 2023 Assets: Mortgage loans held for sale (1) $ 901,227 $ 892,816 $ 8,411 Reverse mortgage loans held for investment (2) 315,912 290,907 25,005 Notes receivable 10,627 11,556 (929) Liabilities: HMBS-related borrowings $ 302,183 $ 293,542 $ 8,641 _____________________________ (1) MLHS that were 90 days or more past due had a fair value of $7.3 million and UPB of $9.9 million. (2) Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $3.4 million and UPB of $3.3 million. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
ACQUISITIONS | ACQUISITIONS The following 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. 2024 Acquisitions On February 12, 2024, the Company entered into an asset purchase agreement to acquire certain retail lending assets of privately held Utah-based lender Academy Mortgage Corporation (“Academy Mortgage”) for a purchase price of $27.0 million including the estimated fair value of contingent consideration that Academy Mortgage could receive based on the performance of the Academy Mortgage branches. The transaction closed on February 26, 2024. The addition of Academy Mortgage is expected to extend Guild’s market share across its national footprint and increase the Company’s branches and origination staff. The purchase was financed with a combination of cash and existing borrowings. In March 2024, the Company, through its subsidiary, acquired a controlling interest in Waterton Insurance Group, LLC, a provider of home insurance solutions. 2023 Acquisitions In 2023, the Company acquired certain assets of First Centennial Mortgage Corporation (“FCM”), Cherry Creek Mortgage LLC (“CCM”) and Legacy Mortgage, LLC (“Legacy”) for a total fair value consideration of $15.4 million, which consisted of $8.0 million in cash, total fair value of contingent consideration of $6.1 million and an original issuance discount on note receivable of $1.3 million. The Company does not consider the 2024 or 2023 acquisitions to be material, individually or in the aggregate. The results of the acquisitions have been included in the Company’s condensed consolidated financial statements since the date of the acquisitions. 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 Operations. CCM 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. The Company elected to apply the fair value option to this note receivable to align with the accounting treatment for the contingent consideration liability. |
ADVANCES, NET
ADVANCES, NET | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
ADVANCES, NET | ADVANCES, NET Advances, net consisted of the following: (in thousands) June 30, December 31, Trust advances $ 35,126 $ 44,487 Foreclosure advances 23,321 25,955 Foreclosure loss reserve (4,807) (5,694) Total advances, net $ 53,640 $ 64,748 Management has established a foreclosure reserve for estimated uncollectible balances of the foreclosure and trust advances. The activity of the foreclosure loss reserve was as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance — beginning of period $ 5,826 $ 8,665 $ 5,694 $ 8,698 (Reversal of) provision for foreclosure losses (496) (1,044) (104) 470 Utilization of foreclosure reserve (523) (962) (783) (2,509) Balance — end of period $ 4,807 $ 6,659 $ 4,807 $ 6,659 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
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 Operations. Derivative assets are included within other assets and derivative liabilities are included within other liabilities in the Consolidated Balance Sheets. Changes in the fair value of the Company's derivative financial instruments are as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Unrealized hedging (losses) gains $ (7,566) $ 9,703 $ 17,506 $ 15,755 Notional and Fair Value The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows as of June 30, 2024 and December 31, 2023: Fair Value (in thousands) Notional Derivative Derivative June 30, 2024 IRLCs $ 1,821,836 $ 18,172 $ — Forward delivery commitments and best efforts sales commitments $ 1,923,277 $ 2,754 $ 4,666 December 31, 2023 IRLCs $ 821,865 $ 14,902 $ — Forward delivery commitments and best efforts sales commitments $ 933,850 $ 693 $ 16,245 The Company had an additional $314.6 million and $163.8 million of outstanding forward contracts and mandatory sell commitments, comprised of closed loans with equal and offsetting UPB amounts allocated to them, at June 30, 2024 and December 31, 2023, respectively. The Company also had $455.0 million and $343.0 million in closed hedge instruments not yet settled at June 30, 2024 and December 31, 2023, respectively. See “Note 2—Fair Value Measurements” for fair value disclosure of the derivative instruments. The following table presents the unobservable input assumption used to determine the fair value of IRLCs as of June 30, 2024 and December 31, 2023: June 30, December 31, Unobservable Input Range (Weighted Average) Loan funding probability (“pull-through”) 0% - 100% (88.0%) 0% - 100% (86.5%) Counterparty agreements for forward commitments contain master netting agreements. The master netting agreements contain a legal right to offset amounts due to and from the same counterparty, including the right to obtain cash collateral. The Company incurred no credit losses due to nonperformance of any of its counterparties during the three and six months ended June 30, 2024 and June 30, 2023 . The table below represents financial assets and liabilities that are subject to master netting arrangements categorized by financial instrument as of June 30, 2024 and December 31, 2023: (in thousands) Gross Amounts of Recognized Assets (Liabilities) in the Balance Sheet Gross Cash Collateral Paid and Offset in the Balance Sheet Net June 30, 2024 Forward delivery commitments $ 1,602 $ (3,436) $ 4,588 $ 2,754 Total assets $ 1,602 $ (3,436) $ 4,588 $ 2,754 Forward delivery commitments and best efforts sales commitments $ (6,733) $ 2,017 $ 50 $ (4,666) Total liabilities $ (6,733) $ 2,017 $ 50 $ (4,666) December 31, 2023 Forward delivery commitments $ 8 $ (2,837) $ 3,522 $ 693 Total assets $ 8 $ (2,837) $ 3,522 $ 693 Forward delivery commitments and best efforts sales commitments $ (18,105) $ 148 $ 1,712 $ (16,245) Total liabilities $ (18,105) $ 148 $ 1,712 $ (16,245) |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
MORTGAGE SERVICING RIGHTS | MORTGAGE SERVICING RIGHTS The following table presents the activity of MSRs for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance — beginning of period $ 1,216,483 $ 1,112,161 $ 1,161,357 $ 1,139,539 MSRs originated 55,397 44,452 89,631 71,945 MSRs purchased 18,648 — 18,762 — Changes in fair value: Due to collection/realization of cash flows (18,511) (15,890) (30,630) (27,060) Due to changes in valuation model inputs or assumptions 20,645 43,780 53,542 79 Balance — end of period $ 1,292,662 $ 1,184,503 $ 1,292,662 $ 1,184,503 The following table presents the unobservable input assumptions used to determine the fair value of MSRs: June 30, December 31, Unobservable Input Range (Weighted Average) Discount rate 9.6% - 15.5% (10.8%) 9.6% - 15.5% (10.9%) Prepayment rate 6.0% - 42.9% (7.9%) 6.4% - 32.0% (8.5%) Cost to service (per loan) $71.9 - $466.1 ($96.2) $72.1 - $366.3 ($96.4) At June 30, 2024 and December 31, 2023, the MSRs had a weighted average life of approximately 8.2 years and 8.0 years, respectively. See “Note 2 —Fair Value Measurements” 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 six months ended June 30, 2024 and June 30, 2023: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Servicing fees from servicing portfolio $ 66,065 $ 59,410 $ 130,099 $ 118,390 Late fees 2,042 1,619 4,098 3,287 Other ancillary servicing revenue and fees (398) (818) (700) (1,379) Total loan servicing and other fees $ 67,709 $ 60,211 $ 133,497 $ 120,298 At June 30, 2024 and December 31, 2023, the UPB of mortgage loans serviced for others totaled $89.1 billion and $85.0 billion, respectively, including loans subserviced by third-parties of $1.6 billion at June 30, 2024. Conforming conventional loans serviced by the Company are sold to FNMA or FHLMC programs on a nonrecourse basis, whereby foreclosure losses are generally the responsibility of FNMA and FHLMC and not the Company. Similarly, certain loans serviced by the Company are secured through GNMA programs, whereby the Company is insured against loss by the FHA or partially guaranteed against loss by the VA. The key assumptions used to estimate the fair value of MSRs are prepayment speeds, the discount rate and costs to service. Increases in prepayment speeds generally have an adverse effect on the value of MSRs as the underlying loans prepay faster. In a declining interest rate environment, the fair value of MSRs generally decreases as prepayments increase and therefore, the estimated life of the MSRs and related cash flows decrease. Decreases in prepayment speeds generally have a positive effect on the value of MSRs as the underlying loans prepay less frequently. In a rising interest rate environment, the fair value of MSRs generally increases as prepayments decrease and therefore, the estimated life of the MSRs and related cash flows increase. Increases in the discount rate generally have an adverse effect on the value of the MSRs. The discount rate is risk adjusted for key factors such as uncertainty in the mortgage banking industry due to its reliance on external influences (interest rates, regulatory changes, etc.), premium for market liquidity, and credit risk. A higher discount rate would indicate higher uncertainty of the future cash flows. Conversely, decreases in the discount rate generally have a positive effect on the value of the MSRs. Increases in the costs to service generally have an adverse effect on the value of the MSRs as an increase in costs to service would reduce the Company’s future net cash inflows from servicing a loan. Conversely, decreases in the costs to service generally have a positive effect on the value of the MSRs. MSR uncertainties are hypothetical and do not always have a direct correlation with each assumption. Changes in one assumption may result in changes to another assumption, which might magnify or counteract the uncertainties. The following table illustrates the impact of adverse changes on the prepayment speeds, discount rate and cost to service at two different data points at June 30, 2024 and December 31, 2023, respectively: Prepayment Speeds Discount Rate Cost to Service (per loan) (in thousands) 10% Adverse 20% Adverse 10% Adverse 20% Adverse 10% Adverse 20% Adverse June 30, 2024 Mortgage servicing rights $ (40,735) $ (79,215) $ (53,549) $ (103,281) $ (12,841) $ (25,506) December 31, 2023 Mortgage servicing rights $ (36,968) $ (72,701) $ (47,899) $ (93,196) $ (11,315) $ (23,573) |
MORTGAGE LOANS HELD FOR SALE
MORTGAGE LOANS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2024 | |
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 MLHS to the amounts presented in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and June 30, 2023 is set forth below: Six Months Ended (in thousands) 2024 2023 Balance — beginning of period $ 901,227 $ 845,775 Origination and purchase of mortgage loans held for sale 9,650,745 7,012,503 Proceeds on sale of and payments from mortgage loans held for sale (9,057,786) (6,877,200) Gain on sale of mortgage loans excluding fair value of other financial instruments, net 235,539 151,020 Valuation adjustment of mortgage loans held for sale (718) (6,106) Balance — end of period $ 1,729,007 $ 1,125,992 |
REVERSE MORTGAGE LOANS HELD FOR
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS | REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS A reconciliation of the changes in reverse mortgage loans held for investment and HMBS-related borrowings for the periods presented is below: Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 (in thousands) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Balance — beginning of period $ 348,076 $ (326,804) $ 315,912 $ (302,183) Originations and purchases 36,940 — 67,483 — Securitization of home equity conversion mortgages (“HECM”) loans and tails accounted for as a financing (including realized fair value changes) — (39,677) — (66,201) Repayments (principal payments received) (14,428) 11,840 (23,620) 21,326 Change in fair value recognized in earnings (2) 5,594 (3,460) 16,407 (11,043) Balance — end of period $ 376,182 $ (358,101) $ 376,182 $ (358,101) Securitized loans (pledged to HMBS-related borrowings) $ 365,005 $ (358,101) $ 365,005 $ (358,101) Unsecuritized loans and tail advances 11,177 — 11,177 — Total $ 376,182 $ (358,101) $ 376,182 $ (358,101) Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 (in thousands) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Balance — beginning of period $ — $ — $ — $ — Originations and purchases 34,403 — 34,403 — Change in fair value recognized in earnings (2) 2,306 — 2,306 — Balance — end of period $ 36,709 $ — $ 36,709 $ — Unsecuritized loans and tail advances $ 36,709 $ — $ 36,709 $ — Total $ 36,709 $ — $ 36,709 $ — _____________________________ (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. (2) See further breakdown in the table below. The following table presents gains (losses) on reverse mortgage loans held for investment and HMBS-related borrowings for the periods presented: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Gain on new originations (1) $ 1,882 $ — $ 3,166 $ — Gain on tail securitizations (2) 435 — 757 — Net interest income 25 — 48 — Change in fair value of reverse mortgage loans held for investment (208) 2,306 1,393 2,306 Fair value gain recognized in earnings (3) 2,134 2,306 5,364 2,306 Loan fees and other (4) 963 282 1,749 282 Total $ 3,097 $ 2,588 $ 7,113 $ 2,588 _____________________________ (1) Includes the changes in fair value of newly originated loans held for investment in the period from origination through securitization date. (2) Includes the cash realized gains upon securitization of tails. (3) See breakdown between loans held for investment and HMBS-related borrowings in the table above. (4) Loan fees and other are included with Loan origination fees and gain on sale of loans, net in the Condensed Consolidated Statements of Operations. The following table presents the unobservable input assumptions used to determine the fair value of reverse mortgage loans held for investment and HMBS-related borrowings as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Unobservable Input Range (Weighted Average) Life in years 0.1 - 9.1 (6.9) 0.1 - 8.9 (7.2) Discount rate 12.0% - 12.0% (12.0%) 12.0% - 12.0% (12.0%) Conditional prepayment rate including voluntary and involuntary prepayments 6.5% - 19.9% (8.0%) 6.9% - 11.3% (8.1%) |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET The following table presents the Company's goodwill and intangible assets, net as of June 30, 2024 and December 31, 2023: (in thousands) June 30, December 31, Goodwill $ 198,724 $ 186,181 Intangible assets, net 31,728 25,125 Goodwill and intangible assets, net $ 230,452 $ 211,306 Goodwill The changes in the carrying amount of goodwill allocated to the origination segment are presented in the following table: (in thousands) Balance at December 31, 2022 $ 176,769 Acquisitions 8,654 Purchase accounting adjustments 758 Balance at December 31, 2023 186,181 Acquisitions 12,543 Balance at June 30, 2024 $ 198,724 Intangible Assets, Net The following table presents the Company's intangible assets, net as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (in thousands) Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Referral network $ 53,500 $ (21,772) $ 31,728 $ 42,300 $ (17,625) $ 24,675 Non-compete agreements 2,700 (2,700) — 2,700 (2,250) 450 $ 56,200 $ (24,472) $ 31,728 $ 45,000 $ (19,875) $ 25,125 Amortization expense related to intangible assets was $2.4 million and $2.0 million for the three months ended June 30, 2024 and June 30, 2023, respectively, and $4.6 million and $4.0 million for the six months ended June 30, 2024 and June 30, 2023, respectively. |
WAREHOUSE LINES OF CREDIT, NET
WAREHOUSE LINES OF CREDIT, NET | 6 Months Ended |
Jun. 30, 2024 | |
Line of Credit Facility [Abstract] | |
WAREHOUSE LINES OF CREDIT, NET | WAREHOUSE LINES OF CREDIT, NET Warehouse lines of credit consisted of the following at June 30, 2024 and December 31, 2023. Changes subsequent to June 30, 2024 have been described in the notes referenced with the below table. (in thousands) Maturity June 30, December 31, $165 million master repurchase facility agreement (1) January 2025 $ 147,062 $ 122,462 $250 million master repurchase facility agreement (2) August 2024 198,856 99,059 $400 million master repurchase facility agreement (3) August 2024 366,086 158,412 $200 million master repurchase facility agreement (4) May 2025 141,856 87,252 $200 million master repurchase facility agreement (5) September 2024 139,963 91,039 $400 million master repurchase facility agreement (6) September 2024 273,412 134,964 $200 million master repurchase facility agreement (7) N/A 161,931 30,185 $200 million master repurchase facility agreement (8) N/A 163,022 78,682 $75 million master repurchase facility agreement (9) N/A 26,944 34,280 1,619,132 836,335 Prepaid commitment fees (2,563) (2,554) Warehouse lines of credit, net $ 1,616,569 $ 833,781 ______________________________ (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 $1.3 million, included in restricted cash. (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 $2.0 million, included in restricted cash. (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. This facility requires a minimum deposit of $300,000, included in restricted cash. (5) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.40%, plus the applicable interest rate margin. (6) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.50%, plus the applicable interest rate margin. Subsequent to June 30, 2024, this line was increased to $500.0 million. (7) 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. (8) This facility agreement has a maturity of 364 days on the first $150.0 million committed amount and $50.0 million is due on demand. The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.75%. (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 five years. The weighted average interest rate for warehouse lines of credit was 7.0% at June 30, 2024 and December 31, 2023. 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 $6.4 million and $8.7 million in its warehouse buy down accounts as offsets to certain lines of credit at June 30, 2024 and December 31, 2023, 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, adjusted pre-tax net income and limitations on additional indebtedness, dividends, sale of assets, and decline in the mortgage loan servicing portfolio’s fair value. At June 30, 2024 and December 31, 2023, the Company was in compliance with all debt covenants. The Company has an optional short-term financing agreement between FNMA and the lender described as “As Soon As Pooled” (“ASAP”). The Company can elect to assign FNMA Mortgage-Backed Security (“MBS”) trades to FNMA in advance of settlement and enter into a financing transaction and revenue related to the assignment is deferred until the final pool settlement date. The Company determines utilization based on warehouse availability and cash needs. There were no outstanding balances as of June 30, 2024 and December 31, 2023 on the ASAP financing. 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 June 30, 2024 and December 31, 2023, the Company had $46.0 million and $31.0 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 Company has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At June 30, 2024 and December 31, 2023, the Company had $95.0 million and $30.0 million, respectively, in outstanding borrowings on this credit facility. The Company has an agreement for a revolving note, 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 June 30, 2024 and December 31, 2023, the Company had $130.0 million and $87.8 million, respectively, in outstanding borrowings on this credit facility. Term Note |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | WAREHOUSE LINES OF CREDIT, NET Warehouse lines of credit consisted of the following at June 30, 2024 and December 31, 2023. Changes subsequent to June 30, 2024 have been described in the notes referenced with the below table. (in thousands) Maturity June 30, December 31, $165 million master repurchase facility agreement (1) January 2025 $ 147,062 $ 122,462 $250 million master repurchase facility agreement (2) August 2024 198,856 99,059 $400 million master repurchase facility agreement (3) August 2024 366,086 158,412 $200 million master repurchase facility agreement (4) May 2025 141,856 87,252 $200 million master repurchase facility agreement (5) September 2024 139,963 91,039 $400 million master repurchase facility agreement (6) September 2024 273,412 134,964 $200 million master repurchase facility agreement (7) N/A 161,931 30,185 $200 million master repurchase facility agreement (8) N/A 163,022 78,682 $75 million master repurchase facility agreement (9) N/A 26,944 34,280 1,619,132 836,335 Prepaid commitment fees (2,563) (2,554) Warehouse lines of credit, net $ 1,616,569 $ 833,781 ______________________________ (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 $1.3 million, included in restricted cash. (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 $2.0 million, included in restricted cash. (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. This facility requires a minimum deposit of $300,000, included in restricted cash. (5) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.40%, plus the applicable interest rate margin. (6) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.50%, plus the applicable interest rate margin. Subsequent to June 30, 2024, this line was increased to $500.0 million. (7) 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. (8) This facility agreement has a maturity of 364 days on the first $150.0 million committed amount and $50.0 million is due on demand. The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.75%. (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 five years. The weighted average interest rate for warehouse lines of credit was 7.0% at June 30, 2024 and December 31, 2023. 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 $6.4 million and $8.7 million in its warehouse buy down accounts as offsets to certain lines of credit at June 30, 2024 and December 31, 2023, 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, adjusted pre-tax net income and limitations on additional indebtedness, dividends, sale of assets, and decline in the mortgage loan servicing portfolio’s fair value. At June 30, 2024 and December 31, 2023, the Company was in compliance with all debt covenants. The Company has an optional short-term financing agreement between FNMA and the lender described as “As Soon As Pooled” (“ASAP”). The Company can elect to assign FNMA Mortgage-Backed Security (“MBS”) trades to FNMA in advance of settlement and enter into a financing transaction and revenue related to the assignment is deferred until the final pool settlement date. The Company determines utilization based on warehouse availability and cash needs. There were no outstanding balances as of June 30, 2024 and December 31, 2023 on the ASAP financing. 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 June 30, 2024 and December 31, 2023, the Company had $46.0 million and $31.0 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 Company has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At June 30, 2024 and December 31, 2023, the Company had $95.0 million and $30.0 million, respectively, in outstanding borrowings on this credit facility. The Company has an agreement for a revolving note, 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 June 30, 2024 and December 31, 2023, the Company had $130.0 million and $87.8 million, respectively, in outstanding borrowings on this credit facility. Term Note |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Common 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 restricted stock units (“RSUs”) under the 2020 Omnibus Incentive Plan (the “2020 Plan”), 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. Unvested RSUs under the 2020 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, 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. Common Stock Dividends The Company declared and paid $30.7 million in dividends during the six months ended June 30, 2024 and paid $30.5 million in dividends during the year ended December 31, 2023. In conjunction with the payment of Guild's dividends, Guild issued 59,330 and 95,413 DEUs to holders of RSUs during the six months ended June 30, 2024 and year ended December 31, 2023, respectively. Since the DEUs are forfeitable, the value of the DEUs was recorded as a reduction to retained earnings and an increase to additional paid-in capital. 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 following 24 months from such date. On March 7, 2024, our Board of Directors extended the share repurchase program to May 5, 2025. 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 six months ended June 30, 2024, the Company repurchased and subsequently retired 14,221 and 31,968 shares of its Class A common stock for $0.2 million and $0.5 million at an average price of $14.09 per share and $14.13 per share, excluding commissions, respectively. During the three and six months ended June 30, 2023 the Company repurchased and subsequently retired 51,588 and 101,754 shares of its Class A common stock for $0.5 million and $1.1 million at an average price of $10.64 per share and $10.96 per share, excluding commissions, respectively. As of June 30, 2024, $10.7 million remains available for repurchase. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE Basic earnings or loss 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 or loss per share is computed based on the weighted average number of shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include RSUs for Class A common stock. The following table sets forth the components of basic and diluted earnings per share for the periods presented: (in thousands, except per share amounts) Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income (loss) attributable to Guild $ 37,583 $ 36,936 $ 66,081 $ (254) Weighted average shares outstanding—Class A Common Stock 21,004 20,629 20,890 20,598 Weighted average shares outstanding—Class B Common Stock 40,333 40,333 40,333 40,333 Weighted average shares outstanding—Basic 61,337 60,962 61,223 60,931 Add: dilutive effects of unvested shares of restricted stock 1,056 839 1,052 — Weighted average shares outstanding—Diluted 62,393 61,801 62,275 60,931 Earnings (loss) per share attributable to Class A and Class B Common Stock: Basic $ 0.61 $ 0.61 $ 1.08 $ — Diluted $ 0.60 $ 0.60 $ 1.06 $ — 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 six months ended June 30, 2024 and for the three months ended June 30, 2023. Approximately 786,000 potential shares of Class A common stock related to unvested RSUs were excluded from the calculation of diluted loss per share for the six months ended June 30, 2023 because they were anti-dilutive due to the net loss. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company’s stock-based compensation arrangements include grants of RSUs under the 2020 Plan. Compensation costs recognized for these restricted stock grants were approximately $2.7 million and $4.8 million for the three and six months ended June 30, 2024, respectively, and $2.3 million and $4.1 million for the three and six months ended June 30, 2023, respectively, and are included in salaries, incentive compensation and benefits. As of June 30, 2024, there was approximately $13.4 million of unrecognized compensation costs related to these unvested RSUs which is expected to be recognized over a weighted average period of 1.4 years. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Reserves for loan repurchases from investors In the ordinary course of business, the Company has exposure to liabilities with respect to certain representations and warranties that we make to the investors who purchase loans that we originate. Under certain circumstances, these representations and warranties could require the Company to repurchase forward mortgage loans, or indemnify the purchaser for losses incurred if there has been a breach of these representations and warranties or if early payment defaults have occurred. The liability for probable losses related to the repurchase and indemnification obligation considers an estimate of probable future repurchase or indemnification obligations from breaches of representations and warranties. The 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 liability for investor reserves is included within other liabilities in the Consolidated Balance Sheets. The activity of the investor reserves was as follows for the periods presented: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance — beginning of period $ 18,278 $ 16,671 $ 19,973 $ 16,094 Provision for investor reserves 4,036 3,116 4,556 5,018 Realized losses, net (2,003) (1,423) (4,218) (2,748) Balance — end of period $ 20,311 $ 18,364 $ 20,311 $ 18,364 Commitments to Extend Credit The Company enters into IRLCs with customers who have applied for residential forward 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 forward mortgage loans at June 30, 2024 and December 31, 2023 were approximately $1.8 billion and $821.9 million, 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 June 30, 2024 and December 31, 2023 were approximately $1.9 billion and $933.9 million, respectively. The Company has originated reverse mortgage loans under which the borrowers have additional borrowing capacity of $116.9 million and $107.3 million at June 30, 2024 and December 31, 2023, respectively. This additional borrowing capacity is available on a scheduled or unscheduled payment basis. The Company also had short-term commitments to lend $2.3 million and $0.3 million in connection with our reverse mortgage loans, outstanding at June 30, 2024 and December 31, 2023, respectively. The Company finances origination of reverse mortgage loans with warehouse lines. Legal Proceedings 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 $263.8 million and $253.5 million as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024 and December 31, 2023, the Company was in compliance with this requirement. |
SEGMENTS
SEGMENTS | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 the Company serviced at least one loan in 49 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 CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting. The Company also 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 June 30, 2024: (in thousands) Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 206,218 $ (370) $ 205,848 $ — $ 205,848 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 2,134 — 2,134 — 2,134 Loan servicing and other fees — 67,709 67,709 — 67,709 Valuation adjustment of mortgage servicing rights — 2,134 2,134 — 2,134 Interest (expense) income, net (119) 11,910 11,791 (4,219) 7,572 Other income (expense), net 535 45 580 (292) 288 Net revenue 208,768 81,428 290,196 (4,511) 285,685 Expenses Salaries, incentive compensation and benefits 169,037 8,518 177,555 11,383 188,938 General and administrative 21,798 2,855 24,653 3,745 28,398 Occupancy, equipment and communication 17,876 735 18,611 1,737 20,348 Depreciation and amortization 3,162 270 3,432 538 3,970 Reversal of foreclosure losses — (496) (496) — (496) Total expenses 211,873 11,882 223,755 17,403 241,158 Income tax expense — — — 6,936 6,936 Net (loss) income $ (3,105) $ 69,546 $ 66,441 $ (28,850) $ 37,591 The following table presents the financial performance and results by segment for the six months ended June 30, 2024: (in thousands) Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 339,882 $ 26 $ 339,908 $ — $ 339,908 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 5,364 — 5,364 — 5,364 Loan servicing and other fees — 133,497 133,497 — 133,497 Valuation adjustment of mortgage servicing rights — 22,912 22,912 — 22,912 Interest income (expense), net 545 22,366 22,911 (7,152) 15,759 Other income (expense), net 899 67 966 (939) 27 Net revenue 346,690 178,868 525,558 (8,091) 517,467 Expenses Salaries, incentive compensation and benefits 290,142 16,663 306,805 22,200 329,005 General and administrative 42,346 6,717 49,063 8,546 57,609 Occupancy, equipment and communication 34,811 1,701 36,512 3,651 40,163 Depreciation and amortization 6,653 411 7,064 660 7,724 Reversal of foreclosure losses — (104) (104) — (104) Total expenses 373,952 25,388 399,340 35,057 434,397 Income tax expense — — — 17,079 17,079 Net (loss) income $ (27,262) $ 153,480 $ 126,218 $ (60,227) $ 65,991 The following table presents the financial performance and results by segment for the three months ended June 30, 2023: (in thousands) Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 136,499 $ 426 $ 136,925 $ — $ 136,925 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 2,306 — 2,306 — 2,306 Loan servicing and other fees — 60,249 60,249 (38) 60,211 Valuation adjustment of mortgage servicing rights — 27,890 27,890 — 27,890 Interest income (expense), net 1,331 10,266 11,597 (2,342) 9,255 Other income, net 168 49 217 7 224 Net revenue 140,304 98,880 239,184 (2,373) 236,811 Expenses Salaries, incentive compensation and benefits 127,024 7,495 134,519 10,384 144,903 General and administrative 15,061 2,240 17,301 3,147 20,448 Occupancy, equipment and communication 16,187 1,223 17,410 992 18,402 Depreciation and amortization 3,364 218 3,582 79 3,661 Reversal of foreclosure losses — (1,044) (1,044) — (1,044) Total expenses 161,636 10,132 171,768 14,602 186,370 Income tax expense — — — 13,505 13,505 Net (loss) income $ (21,332) $ 88,748 $ 67,416 $ (30,480) $ 36,936 The following table presents the financial performance and results by segment for the six months ended June 30, 2023: (in thousands) Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 228,775 $ 801 $ 229,576 $ — $ 229,576 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 2,306 — 2,306 — 2,306 Loan servicing and other fees — 120,336 120,336 (38) 120,298 Valuation adjustment of mortgage servicing rights — (26,981) (26,981) — (26,981) Interest income (expense), net 2,631 17,676 20,307 (5,069) 15,238 Other income (expense), net 166 101 267 (8) 259 Net revenue 233,878 111,933 345,811 (5,115) 340,696 Expenses Salaries, incentive compensation and benefits 220,281 15,069 235,350 20,673 256,023 General and administrative 29,555 5,120 34,675 6,656 41,331 Occupancy, equipment and communication 31,361 2,481 33,842 1,990 35,832 Depreciation and amortization 6,763 360 7,123 276 7,399 Provision for foreclosure losses — 470 470 — 470 Total expenses 287,960 23,500 311,460 29,595 341,055 Income tax benefit — — — (100) (100) Net (loss) income $ (54,082) $ 88,433 $ 34,351 $ (34,610) $ (259) |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT Subsequent to June 30, 2024, the Company entered into a policy loan arrangement secured by Company Owned Life Insurance (“COLI”) policies for certain employees and former employees for participant distributions under the Company’s deferred compensation plans. The amount borrowed is limited to a maximum of 90% of the net policy value and reduces the amount of the COLI policy cash surrender value upon payout. The loan incurs net interest expense of 1.0% and can be repaid at the option of the Company with future premium payments, however repayment is not required until benefit proceeds are paid. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 37,583 | $ 36,936 | $ 66,081 | $ (254) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BUSINESS, BASIS OF PRESENTATI_2
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 unaudited condensed consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest or consolidates as a variable interest entity or joint venture. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet data as of December 31, 2023 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, 2023. The Company follows the same accounting policies for preparing quarterly and annual reports. |
Reclassifications | Reclassifications Certain reclassifications have been made to the condensed consolidated financial statements to conform to the current year’s presentation. |
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 Funds |
Recent Accounting Standards | Recent Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. For public business entities the update will be effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the disclosure requirements related to the new standard. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) (“ASU 2023-07”). ASU 2023-07 requires disclosure, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in the update and existing segment disclosures in Topic 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company is currently evaluating the disclosure requirements related to the new standard. In August 2023, the FASB issued 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 evaluating the impact of adoption of the new guidance on its 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. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2024: (in thousands) Level 1 Level 2 Level 3 Total Assets: Mortgage loans held for sale $ — $ 1,729,007 $ — $ 1,729,007 Reverse mortgage loans held for investment — — 376,182 376,182 Mortgage servicing rights — — 1,292,662 1,292,662 Derivative assets Interest rate lock commitments — — 18,172 18,172 Forward delivery commitments — 2,754 — 2,754 Notes receivable — — 11,376 11,376 Total assets at fair value $ — $ 1,731,761 $ 1,698,392 $ 3,430,153 Liabilities: HMBS-related borrowings $ — $ — $ 358,101 $ 358,101 Derivative liabilities Forward delivery commitments and best efforts sales commitments — 4,666 — 4,666 Contingent liabilities due to acquisitions — — 26,575 26,575 Total liabilities at fair value $ — $ 4,666 $ 384,676 $ 389,342 The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2023: (in thousands) Level 1 Level 2 Level 3 Total Assets: Mortgage loans held for sale $ — $ 901,227 $ — $ 901,227 Reverse mortgage loans held for investment — — 315,912 315,912 Mortgage servicing rights — — 1,161,357 1,161,357 Derivative assets Interest rate lock commitments — — 14,902 14,902 Forward delivery commitments — 693 — 693 Notes receivable — — 10,627 10,627 Total assets at fair value $ — $ 901,920 $ 1,502,798 $ 2,404,718 Liabilities: HMBS-related borrowings $ — $ — $ 302,183 $ 302,183 Derivative liabilities Forward delivery commitments and best efforts sales commitments — 16,245 — 16,245 Contingent liabilities due to acquisitions — — 8,720 8,720 Total liabilities at fair value $ — $ 16,245 $ 310,903 $ 327,148 |
Summary of Reconciliation of Level 3 Assets Measured at Fair Value on Recurring Basis | The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2024: (in thousands) Interest Rate Lock Commitments Notes Receivable Contingent Liabilities Balance at March 31, 2024 $ 23,588 $ 11,006 $ 20,101 Net transfers and revaluation losses (5,416) — — Additions — 159 — Valuation adjustments — 211 6,474 Balance at June 30, 2024 $ 18,172 $ 11,376 $ 26,575 Balance at December 31, 2023 $ 14,902 $ 10,627 $ 8,720 Net transfers and revaluation losses 3,270 — — Additions — 308 10,017 Valuation adjustments — 441 7,838 Balance at June 30, 2024 $ 18,172 $ 11,376 $ 26,575 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 six months ended June 30, 2023: (in thousands) Interest Rate Lock Commitments Notes Receivable Contingent Liabilities Balance at March 31, 2023 $ 12,206 $ 11,250 $ 2,218 Net transfers and revaluation losses (6,593) — — Additions — — 4,401 Valuation adjustments — (1,426) 1,174 Balance at June 30, 2023 $ 5,613 $ 9,824 $ 7,793 Balance at December 31, 2022 $ 1,518 $ — $ 526 Net transfers and revaluation losses 4,095 — — Additions — 11,250 6,103 Valuation adjustments — (1,426) 1,164 Balance at June 30, 2023 $ 5,613 $ 9,824 $ 7,793 |
Summary of Reconciliation of Level 3 Liabilities Measured at Fair Value on Recurring Basis | The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2024: (in thousands) Interest Rate Lock Commitments Notes Receivable Contingent Liabilities Balance at March 31, 2024 $ 23,588 $ 11,006 $ 20,101 Net transfers and revaluation losses (5,416) — — Additions — 159 — Valuation adjustments — 211 6,474 Balance at June 30, 2024 $ 18,172 $ 11,376 $ 26,575 Balance at December 31, 2023 $ 14,902 $ 10,627 $ 8,720 Net transfers and revaluation losses 3,270 — — Additions — 308 10,017 Valuation adjustments — 441 7,838 Balance at June 30, 2024 $ 18,172 $ 11,376 $ 26,575 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 six months ended June 30, 2023: (in thousands) Interest Rate Lock Commitments Notes Receivable Contingent Liabilities Balance at March 31, 2023 $ 12,206 $ 11,250 $ 2,218 Net transfers and revaluation losses (6,593) — — Additions — — 4,401 Valuation adjustments — (1,426) 1,174 Balance at June 30, 2023 $ 5,613 $ 9,824 $ 7,793 Balance at December 31, 2022 $ 1,518 $ — $ 526 Net transfers and revaluation losses 4,095 — — Additions — 11,250 6,103 Valuation adjustments — (1,426) 1,164 Balance at June 30, 2023 $ 5,613 $ 9,824 $ 7,793 |
Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at June 30, 2024: (in thousands) Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 568,176 $ — $ 568,176 Total assets at fair value $ — $ 568,176 $ — $ 568,176 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 574,707 $ — $ 574,707 Total liabilities at fair value $ — $ 574,707 $ — $ 574,707 The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2023: (in thousands) Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 699,622 $ — $ 699,622 Total assets at fair value $ — $ 699,622 $ — $ 699,622 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 700,120 $ — $ 700,120 Total liabilities at fair value $ — $ 700,120 $ — $ 700,120 |
Summary of Fair Value Option for Mortgage Loans Held for Sale | The following is the estimated fair value and UPB of assets and liabilities that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected as the Company believes fair value best reflects their expected future economic performance and to align with the Company’s business and risk management strategies. (in thousands) Fair Value Principal Difference June 30, 2024 Assets: Mortgage loans held for sale (1) $ 1,729,007 $ 1,723,047 $ 5,960 Reverse mortgage loans held for investment (2) 376,182 335,691 40,491 Notes receivable 11,376 11,864 (488) Liabilities: HMBS-related borrowings $ 358,101 $ 348,865 $ 9,236 _____________________________ (1) MLHS that were 90 days or more past due had a fair value of $5.6 million and UPB of $7.3 million. (2) Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $3.1 million and UPB of $3.0 million. (in thousands) Fair Value Principal Difference December 31, 2023 Assets: Mortgage loans held for sale (1) $ 901,227 $ 892,816 $ 8,411 Reverse mortgage loans held for investment (2) 315,912 290,907 25,005 Notes receivable 10,627 11,556 (929) Liabilities: HMBS-related borrowings $ 302,183 $ 293,542 $ 8,641 _____________________________ (1) MLHS that were 90 days or more past due had a fair value of $7.3 million and UPB of $9.9 million. (2) Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $3.4 million and UPB of $3.3 million. |
ADVANCES, NET (Tables)
ADVANCES, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Advances Net | Advances, net consisted of the following: (in thousands) June 30, December 31, Trust advances $ 35,126 $ 44,487 Foreclosure advances 23,321 25,955 Foreclosure loss reserve (4,807) (5,694) Total advances, net $ 53,640 $ 64,748 |
Schedule of Activity of the Foreclosure Loss Reserve | The activity of the foreclosure loss reserve was as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance — beginning of period $ 5,826 $ 8,665 $ 5,694 $ 8,698 (Reversal of) provision for foreclosure losses (496) (1,044) (104) 470 Utilization of foreclosure reserve (523) (962) (783) (2,509) Balance — end of period $ 4,807 $ 6,659 $ 4,807 $ 6,659 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Unrealized Hedging Gains | Changes in the fair value of the Company's derivative financial instruments are as follows: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Unrealized hedging (losses) gains $ (7,566) $ 9,703 $ 17,506 $ 15,755 |
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 as of June 30, 2024 and December 31, 2023: Fair Value (in thousands) Notional Derivative Derivative June 30, 2024 IRLCs $ 1,821,836 $ 18,172 $ — Forward delivery commitments and best efforts sales commitments $ 1,923,277 $ 2,754 $ 4,666 December 31, 2023 IRLCs $ 821,865 $ 14,902 $ — Forward delivery commitments and best efforts sales commitments $ 933,850 $ 693 $ 16,245 |
Schedule of Quantitative Information About IRLCs and Fair Value Measurements | The following table presents the unobservable input assumption used to determine the fair value of IRLCs as of June 30, 2024 and December 31, 2023: June 30, December 31, Unobservable Input Range (Weighted Average) Loan funding probability (“pull-through”) 0% - 100% (88.0%) 0% - 100% (86.5%) |
Schedule of Financial Liabilities are Subject to Master Netting Arrangements or Similar Agreements Categorized by Financial Instrument | The table below represents financial assets and liabilities that are subject to master netting arrangements categorized by financial instrument as of June 30, 2024 and December 31, 2023: (in thousands) Gross Amounts of Recognized Assets (Liabilities) in the Balance Sheet Gross Cash Collateral Paid and Offset in the Balance Sheet Net June 30, 2024 Forward delivery commitments $ 1,602 $ (3,436) $ 4,588 $ 2,754 Total assets $ 1,602 $ (3,436) $ 4,588 $ 2,754 Forward delivery commitments and best efforts sales commitments $ (6,733) $ 2,017 $ 50 $ (4,666) Total liabilities $ (6,733) $ 2,017 $ 50 $ (4,666) December 31, 2023 Forward delivery commitments $ 8 $ (2,837) $ 3,522 $ 693 Total assets $ 8 $ (2,837) $ 3,522 $ 693 Forward delivery commitments and best efforts sales commitments $ (18,105) $ 148 $ 1,712 $ (16,245) Total liabilities $ (18,105) $ 148 $ 1,712 $ (16,245) |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Summary of Activity of Mortgage Servicing Rights | The following table presents the activity of MSRs for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance — beginning of period $ 1,216,483 $ 1,112,161 $ 1,161,357 $ 1,139,539 MSRs originated 55,397 44,452 89,631 71,945 MSRs purchased 18,648 — 18,762 — Changes in fair value: Due to collection/realization of cash flows (18,511) (15,890) (30,630) (27,060) Due to changes in valuation model inputs or assumptions 20,645 43,780 53,542 79 Balance — end of period $ 1,292,662 $ 1,184,503 $ 1,292,662 $ 1,184,503 |
Summary of Weighted Average Discount Rate, Prepayment Speed and Cost to Service Assumptions Used to Determine Fair Value of MSRs | The following table presents the unobservable input assumptions used to determine the fair value of MSRs: June 30, December 31, Unobservable Input Range (Weighted Average) Discount rate 9.6% - 15.5% (10.8%) 9.6% - 15.5% (10.9%) Prepayment rate 6.0% - 42.9% (7.9%) 6.4% - 32.0% (8.5%) Cost to service (per loan) $71.9 - $466.1 ($96.2) $72.1 - $366.3 ($96.4) |
Summary of Actual Revenue Generated from Servicing Activities | Actual revenue generated from servicing activities included contractually specified servicing fees, as well as late fees and other ancillary servicing revenue, which were recorded within loan servicing and other fees as follows for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Servicing fees from servicing portfolio $ 66,065 $ 59,410 $ 130,099 $ 118,390 Late fees 2,042 1,619 4,098 3,287 Other ancillary servicing revenue and fees (398) (818) (700) (1,379) Total loan servicing and other fees $ 67,709 $ 60,211 $ 133,497 $ 120,298 |
Summary of Impact of Adverse Changes on Prepayment Speeds, Discount Rate and Cost to Service at Two Different Data Points | The following table illustrates the impact of adverse changes on the prepayment speeds, discount rate and cost to service at two different data points at June 30, 2024 and December 31, 2023, respectively: Prepayment Speeds Discount Rate Cost to Service (per loan) (in thousands) 10% Adverse 20% Adverse 10% Adverse 20% Adverse 10% Adverse 20% Adverse June 30, 2024 Mortgage servicing rights $ (40,735) $ (79,215) $ (53,549) $ (103,281) $ (12,841) $ (25,506) December 31, 2023 Mortgage servicing rights $ (36,968) $ (72,701) $ (47,899) $ (93,196) $ (11,315) $ (23,573) |
MORTGAGE LOANS HELD FOR SALE (T
MORTGAGE LOANS HELD FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Mortgage Loans Held For Sale [Abstract] | |
Summary of Reconciliation of Changes in Mortgage Loans Held for Sale to Amounts Presented in Condensed Consolidated Statements of Cash Flows | A reconciliation of the changes in MLHS to the amounts presented in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and June 30, 2023 is set forth below: Six Months Ended (in thousands) 2024 2023 Balance — beginning of period $ 901,227 $ 845,775 Origination and purchase of mortgage loans held for sale 9,650,745 7,012,503 Proceeds on sale of and payments from mortgage loans held for sale (9,057,786) (6,877,200) Gain on sale of mortgage loans excluding fair value of other financial instruments, net 235,539 151,020 Valuation adjustment of mortgage loans held for sale (718) (6,106) Balance — end of period $ 1,729,007 $ 1,125,992 |
REVERSE MORTGAGE LOANS HELD F_2
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Loans Held For Investment | A reconciliation of the changes in reverse mortgage loans held for investment and HMBS-related borrowings for the periods presented is below: Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 (in thousands) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Balance — beginning of period $ 348,076 $ (326,804) $ 315,912 $ (302,183) Originations and purchases 36,940 — 67,483 — Securitization of home equity conversion mortgages (“HECM”) loans and tails accounted for as a financing (including realized fair value changes) — (39,677) — (66,201) Repayments (principal payments received) (14,428) 11,840 (23,620) 21,326 Change in fair value recognized in earnings (2) 5,594 (3,460) 16,407 (11,043) Balance — end of period $ 376,182 $ (358,101) $ 376,182 $ (358,101) Securitized loans (pledged to HMBS-related borrowings) $ 365,005 $ (358,101) $ 365,005 $ (358,101) Unsecuritized loans and tail advances 11,177 — 11,177 — Total $ 376,182 $ (358,101) $ 376,182 $ (358,101) Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 (in thousands) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Reverse Mortgage Loans Held for Investment HMBS-Related Borrowings (1) Balance — beginning of period $ — $ — $ — $ — Originations and purchases 34,403 — 34,403 — Change in fair value recognized in earnings (2) 2,306 — 2,306 — Balance — end of period $ 36,709 $ — $ 36,709 $ — Unsecuritized loans and tail advances $ 36,709 $ — $ 36,709 $ — Total $ 36,709 $ — $ 36,709 $ — _____________________________ (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. (2) See further breakdown in the table below. |
Schedule of Gains (Losses) On Reverse Mortgage Loans Held For Investment | The following table presents gains (losses) on reverse mortgage loans held for investment and HMBS-related borrowings for the periods presented: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Gain on new originations (1) $ 1,882 $ — $ 3,166 $ — Gain on tail securitizations (2) 435 — 757 — Net interest income 25 — 48 — Change in fair value of reverse mortgage loans held for investment (208) 2,306 1,393 2,306 Fair value gain recognized in earnings (3) 2,134 2,306 5,364 2,306 Loan fees and other (4) 963 282 1,749 282 Total $ 3,097 $ 2,588 $ 7,113 $ 2,588 _____________________________ (1) Includes the changes in fair value of newly originated loans held for investment in the period from origination through securitization date. (2) Includes the cash realized gains upon securitization of tails. (3) See breakdown between loans held for investment and HMBS-related borrowings in the table above. (4) Loan fees and other are included with Loan origination fees and gain on sale of loans, net in the Condensed Consolidated Statements of Operations. |
Schedule Of Reverse Mortgage Loans Held For Investment and HMBS-Related Borrowings, Unobservable Input Assumptions | The following table presents the unobservable input assumptions used to determine the fair value of reverse mortgage loans held for investment and HMBS-related borrowings as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Unobservable Input Range (Weighted Average) Life in years 0.1 - 9.1 (6.9) 0.1 - 8.9 (7.2) Discount rate 12.0% - 12.0% (12.0%) 12.0% - 12.0% (12.0%) Conditional prepayment rate including voluntary and involuntary prepayments 6.5% - 19.9% (8.0%) 6.9% - 11.3% (8.1%) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets, Net | The following table presents the Company's goodwill and intangible assets, net as of June 30, 2024 and December 31, 2023: (in thousands) June 30, December 31, Goodwill $ 198,724 $ 186,181 Intangible assets, net 31,728 25,125 Goodwill and intangible assets, net $ 230,452 $ 211,306 |
Summary of Activity in Goodwill | The changes in the carrying amount of goodwill allocated to the origination segment are presented in the following table: (in thousands) Balance at December 31, 2022 $ 176,769 Acquisitions 8,654 Purchase accounting adjustments 758 Balance at December 31, 2023 186,181 Acquisitions 12,543 Balance at June 30, 2024 $ 198,724 |
Schedule of Finite-Lived Intangible Assets | The following table presents the Company's intangible assets, net as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (in thousands) Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Referral network $ 53,500 $ (21,772) $ 31,728 $ 42,300 $ (17,625) $ 24,675 Non-compete agreements 2,700 (2,700) — 2,700 (2,250) 450 $ 56,200 $ (24,472) $ 31,728 $ 45,000 $ (19,875) $ 25,125 |
WAREHOUSE LINES OF CREDIT, NET
WAREHOUSE LINES OF CREDIT, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Line of Credit Facility [Abstract] | |
Summary of Warehouse Lines of Credit | Warehouse lines of credit consisted of the following at June 30, 2024 and December 31, 2023. Changes subsequent to June 30, 2024 have been described in the notes referenced with the below table. (in thousands) Maturity June 30, December 31, $165 million master repurchase facility agreement (1) January 2025 $ 147,062 $ 122,462 $250 million master repurchase facility agreement (2) August 2024 198,856 99,059 $400 million master repurchase facility agreement (3) August 2024 366,086 158,412 $200 million master repurchase facility agreement (4) May 2025 141,856 87,252 $200 million master repurchase facility agreement (5) September 2024 139,963 91,039 $400 million master repurchase facility agreement (6) September 2024 273,412 134,964 $200 million master repurchase facility agreement (7) N/A 161,931 30,185 $200 million master repurchase facility agreement (8) N/A 163,022 78,682 $75 million master repurchase facility agreement (9) N/A 26,944 34,280 1,619,132 836,335 Prepaid commitment fees (2,563) (2,554) Warehouse lines of credit, net $ 1,616,569 $ 833,781 ______________________________ (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 $1.3 million, included in restricted cash. (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 $2.0 million, included in restricted cash. (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. This facility requires a minimum deposit of $300,000, included in restricted cash. (5) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.40%, plus the applicable interest rate margin. (6) The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.50%, plus the applicable interest rate margin. Subsequent to June 30, 2024, this line was increased to $500.0 million. (7) 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. (8) This facility agreement has a maturity of 364 days on the first $150.0 million committed amount and $50.0 million is due on demand. The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.75%. (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 five years. |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Basic and Diluted Earnings Per Share | The following table sets forth the components of basic and diluted earnings per share for the periods presented: (in thousands, except per share amounts) Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income (loss) attributable to Guild $ 37,583 $ 36,936 $ 66,081 $ (254) Weighted average shares outstanding—Class A Common Stock 21,004 20,629 20,890 20,598 Weighted average shares outstanding—Class B Common Stock 40,333 40,333 40,333 40,333 Weighted average shares outstanding—Basic 61,337 60,962 61,223 60,931 Add: dilutive effects of unvested shares of restricted stock 1,056 839 1,052 — Weighted average shares outstanding—Diluted 62,393 61,801 62,275 60,931 Earnings (loss) per share attributable to Class A and Class B Common Stock: Basic $ 0.61 $ 0.61 $ 1.08 $ — Diluted $ 0.60 $ 0.60 $ 1.06 $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Activity of Investor Reserves | The activity of the investor reserves was as follows for the periods presented: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Balance — beginning of period $ 18,278 $ 16,671 $ 19,973 $ 16,094 Provision for investor reserves 4,036 3,116 4,556 5,018 Realized losses, net (2,003) (1,423) (4,218) (2,748) Balance — end of period $ 20,311 $ 18,364 $ 20,311 $ 18,364 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Summary of Financial Performance and Results by Segment | The following table presents the financial performance and results by segment for the three months ended June 30, 2024: (in thousands) Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 206,218 $ (370) $ 205,848 $ — $ 205,848 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 2,134 — 2,134 — 2,134 Loan servicing and other fees — 67,709 67,709 — 67,709 Valuation adjustment of mortgage servicing rights — 2,134 2,134 — 2,134 Interest (expense) income, net (119) 11,910 11,791 (4,219) 7,572 Other income (expense), net 535 45 580 (292) 288 Net revenue 208,768 81,428 290,196 (4,511) 285,685 Expenses Salaries, incentive compensation and benefits 169,037 8,518 177,555 11,383 188,938 General and administrative 21,798 2,855 24,653 3,745 28,398 Occupancy, equipment and communication 17,876 735 18,611 1,737 20,348 Depreciation and amortization 3,162 270 3,432 538 3,970 Reversal of foreclosure losses — (496) (496) — (496) Total expenses 211,873 11,882 223,755 17,403 241,158 Income tax expense — — — 6,936 6,936 Net (loss) income $ (3,105) $ 69,546 $ 66,441 $ (28,850) $ 37,591 The following table presents the financial performance and results by segment for the six months ended June 30, 2024: (in thousands) Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 339,882 $ 26 $ 339,908 $ — $ 339,908 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 5,364 — 5,364 — 5,364 Loan servicing and other fees — 133,497 133,497 — 133,497 Valuation adjustment of mortgage servicing rights — 22,912 22,912 — 22,912 Interest income (expense), net 545 22,366 22,911 (7,152) 15,759 Other income (expense), net 899 67 966 (939) 27 Net revenue 346,690 178,868 525,558 (8,091) 517,467 Expenses Salaries, incentive compensation and benefits 290,142 16,663 306,805 22,200 329,005 General and administrative 42,346 6,717 49,063 8,546 57,609 Occupancy, equipment and communication 34,811 1,701 36,512 3,651 40,163 Depreciation and amortization 6,653 411 7,064 660 7,724 Reversal of foreclosure losses — (104) (104) — (104) Total expenses 373,952 25,388 399,340 35,057 434,397 Income tax expense — — — 17,079 17,079 Net (loss) income $ (27,262) $ 153,480 $ 126,218 $ (60,227) $ 65,991 The following table presents the financial performance and results by segment for the three months ended June 30, 2023: (in thousands) Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 136,499 $ 426 $ 136,925 $ — $ 136,925 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 2,306 — 2,306 — 2,306 Loan servicing and other fees — 60,249 60,249 (38) 60,211 Valuation adjustment of mortgage servicing rights — 27,890 27,890 — 27,890 Interest income (expense), net 1,331 10,266 11,597 (2,342) 9,255 Other income, net 168 49 217 7 224 Net revenue 140,304 98,880 239,184 (2,373) 236,811 Expenses Salaries, incentive compensation and benefits 127,024 7,495 134,519 10,384 144,903 General and administrative 15,061 2,240 17,301 3,147 20,448 Occupancy, equipment and communication 16,187 1,223 17,410 992 18,402 Depreciation and amortization 3,364 218 3,582 79 3,661 Reversal of foreclosure losses — (1,044) (1,044) — (1,044) Total expenses 161,636 10,132 171,768 14,602 186,370 Income tax expense — — — 13,505 13,505 Net (loss) income $ (21,332) $ 88,748 $ 67,416 $ (30,480) $ 36,936 The following table presents the financial performance and results by segment for the six months ended June 30, 2023: (in thousands) Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 228,775 $ 801 $ 229,576 $ — $ 229,576 Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 2,306 — 2,306 — 2,306 Loan servicing and other fees — 120,336 120,336 (38) 120,298 Valuation adjustment of mortgage servicing rights — (26,981) (26,981) — (26,981) Interest income (expense), net 2,631 17,676 20,307 (5,069) 15,238 Other income (expense), net 166 101 267 (8) 259 Net revenue 233,878 111,933 345,811 (5,115) 340,696 Expenses Salaries, incentive compensation and benefits 220,281 15,069 235,350 20,673 256,023 General and administrative 29,555 5,120 34,675 6,656 41,331 Occupancy, equipment and communication 31,361 2,481 33,842 1,990 35,832 Depreciation and amortization 6,763 360 7,123 276 7,399 Provision for foreclosure losses — 470 470 — 470 Total expenses 287,960 23,500 311,460 29,595 341,055 Income tax benefit — — — (100) (100) Net (loss) income $ (54,082) $ 88,433 $ 34,351 $ (34,610) $ (259) |
BUSINESS, BASIS OF PRESENTATI_3
BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) branch state segment | Dec. 31, 2023 USD ($) | |
Product Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Number of branches | branch | 480 | |
Total account balance for trust for investors and escrow balances for mortgagors | $ | $ 954.7 | $ 646.5 |
Licenses | ||
Product Information [Line Items] | ||
Number of states | state | 49 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - Discount rate - Level 3 | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.250 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.232 | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.250 | |
Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.241 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||||||
Mortgage loans held for sale | $ 1,729,007 | $ 901,227 | $ 1,125,992 | $ 845,775 | ||
Reverse mortgage loans held for investment | 376,182 | $ 348,076 | 315,912 | 36,709 | $ 0 | 0 |
Mortgage servicing rights | 1,292,662 | 1,216,483 | 1,161,357 | 1,184,503 | 1,112,161 | 1,139,539 |
Liabilities: | ||||||
Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related borrowings | 358,101 | $ 326,804 | 302,183 | $ 0 | $ 0 | $ 0 |
Recurring Fair Value Measurements | ||||||
Assets: | ||||||
Mortgage loans held for sale | 1,729,007 | 901,227 | ||||
Reverse mortgage loans held for investment | 376,182 | 315,912 | ||||
Mortgage servicing rights | 1,292,662 | 1,161,357 | ||||
Derivative assets | ||||||
Notes receivable | 10,627 | |||||
Total assets at fair value | 3,430,153 | 2,404,718 | ||||
Liabilities: | ||||||
Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related borrowings | 358,101 | 302,183 | ||||
Derivative liabilities | ||||||
Forward delivery commitments and best efforts sales commitments | 4,666 | 16,245 | ||||
Contingent liabilities due to acquisitions | 26,575 | 8,720 | ||||
Total liabilities at fair value | 389,342 | 327,148 | ||||
Recurring Fair Value Measurements | Interest Rate Lock Commitments | ||||||
Derivative assets | ||||||
Derivative assets | 18,172 | 14,902 | ||||
Recurring Fair Value Measurements | Forward delivery commitments and best efforts sales commitments | ||||||
Derivative assets | ||||||
Derivative assets | 2,754 | 693 | ||||
Recurring Fair Value Measurements | Level 1 | ||||||
Assets: | ||||||
Mortgage loans held for sale | 0 | 0 | ||||
Reverse mortgage loans held for investment | 0 | 0 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Derivative assets | ||||||
Notes receivable | 0 | 0 | ||||
Total assets at fair value | 0 | 0 | ||||
Liabilities: | ||||||
Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related borrowings | 0 | 0 | ||||
Derivative liabilities | ||||||
Forward delivery commitments and best efforts sales commitments | 0 | 0 | ||||
Contingent liabilities due to acquisitions | 0 | 0 | ||||
Total liabilities at fair value | 0 | 0 | ||||
Recurring Fair Value Measurements | Level 1 | Interest Rate Lock Commitments | ||||||
Derivative assets | ||||||
Derivative assets | 0 | 0 | ||||
Recurring Fair Value Measurements | Level 1 | Forward delivery commitments and best efforts sales commitments | ||||||
Derivative assets | ||||||
Derivative assets | 0 | 0 | ||||
Recurring Fair Value Measurements | Level 2 | ||||||
Assets: | ||||||
Mortgage loans held for sale | 1,729,007 | 901,227 | ||||
Reverse mortgage loans held for investment | 0 | 0 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Derivative assets | ||||||
Notes receivable | 0 | 0 | ||||
Total assets at fair value | 1,731,761 | 901,920 | ||||
Liabilities: | ||||||
Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related borrowings | 0 | 0 | ||||
Derivative liabilities | ||||||
Forward delivery commitments and best efforts sales commitments | 4,666 | 16,245 | ||||
Contingent liabilities due to acquisitions | 0 | 0 | ||||
Total liabilities at fair value | 4,666 | 16,245 | ||||
Recurring Fair Value Measurements | Level 2 | Interest Rate Lock Commitments | ||||||
Derivative assets | ||||||
Derivative assets | 0 | 0 | ||||
Recurring Fair Value Measurements | Level 2 | Forward delivery commitments and best efforts sales commitments | ||||||
Derivative assets | ||||||
Derivative assets | 2,754 | 693 | ||||
Recurring Fair Value Measurements | Level 3 | ||||||
Assets: | ||||||
Mortgage loans held for sale | 0 | 0 | ||||
Reverse mortgage loans held for investment | 376,182 | 315,912 | ||||
Mortgage servicing rights | 1,292,662 | 1,161,357 | ||||
Derivative assets | ||||||
Notes receivable | 11,376 | 10,627 | ||||
Total assets at fair value | 1,698,392 | 1,502,798 | ||||
Liabilities: | ||||||
Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related borrowings | 358,101 | 302,183 | ||||
Derivative liabilities | ||||||
Forward delivery commitments and best efforts sales commitments | 0 | 0 | ||||
Contingent liabilities due to acquisitions | 26,575 | 8,720 | ||||
Total liabilities at fair value | 384,676 | 310,903 | ||||
Recurring Fair Value Measurements | Level 3 | Interest Rate Lock Commitments | ||||||
Derivative assets | ||||||
Derivative assets | 18,172 | 14,902 | ||||
Recurring Fair Value Measurements | Level 3 | Forward delivery commitments and best efforts sales commitments | ||||||
Derivative assets | ||||||
Derivative assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Contingent Liabilities | ||||
Contingent Liabilities | ||||
Beginning balance | $ 20,101 | $ 2,218 | $ 8,720 | $ 526 |
Additions | 4,401 | 10,017 | 6,103 | |
Valuation adjustments | 6,474 | 1,174 | 7,838 | 1,164 |
Ending balance | 26,575 | 7,793 | 26,575 | 7,793 |
Notes Receivable | ||||
Assets | ||||
Beginning balance | 11,006 | 11,250 | 10,627 | |
Additions | 159 | 308 | 11,250 | |
Valuation adjustments | 211 | (1,426) | 441 | (1,426) |
Ending balance | 11,376 | 9,824 | 11,376 | 9,824 |
Interest Rate Lock Commitments | ||||
Assets | ||||
Beginning balance | 23,588 | 12,206 | 14,902 | 1,518 |
Net transfers and revaluation gains | (5,416) | (6,593) | 3,270 | 4,095 |
Ending balance | $ 18,172 | $ 5,613 | $ 18,172 | $ 5,613 |
FAIR VALUE MEASUREMENTS - Sum_3
FAIR VALUE MEASUREMENTS - Summary of Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Non-Recurring Fair Value Measurements - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Ginnie Mae loans subject to repurchase right | $ 568,176 | $ 699,622 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 574,707 | 700,120 |
Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 568,176 | 699,622 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 574,707 | 700,120 |
Level 1 | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Level 1 | Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Level 2 | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 568,176 | 699,622 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 574,707 | 700,120 |
Level 2 | Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 568,176 | 699,622 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 574,707 | 700,120 |
Level 3 | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Level 3 | Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sum_4
FAIR VALUE MEASUREMENTS - Summary of Fair Value Option for Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Mortgage loans held for sale, at fair value | $ 1,729,007 | $ 901,227 | $ 1,125,992 | $ 845,775 | ||
Reverse mortgage loans held for investment, at fair value | 376,182 | $ 348,076 | 315,912 | 36,709 | $ 0 | 0 |
Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related borrowings | 358,101 | $ 326,804 | 302,183 | $ 0 | $ 0 | $ 0 |
Mortgage Loans Held For Sale | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Mortgages held for sale unpaid principal balance | 1,723,047 | 892,816 | ||||
Gain loss on mortgage loans held for sale at fair value | 5,960 | 8,411 | ||||
Fair value, option, loans held as assets, 90 days or more past due | 5,600 | 7,300 | ||||
Mortgages held for sale unpaid principal balance due | 7,300 | 9,900 | ||||
Reverse Mortgage Loans Held For Investment | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Gain loss on mortgage loans held for sale at fair value | 40,491 | 25,005 | ||||
Reverse mortgage loans held for investment, principal amount due upon maturity | 335,691 | 290,907 | ||||
Fair value, option, loans held as assets, 90 days or more past due | 3,100 | 3,400 | ||||
Mortgages held for sale unpaid principal balance due | 3,000 | 3,300 | ||||
Notes Receivable | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Gain loss on mortgage loans held for sale at fair value | (488) | (929) | ||||
Notes receivable, principal amount due upon maturity | 11,864 | 11,556 | ||||
Debt | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Gain loss on mortgage loans held for sale at fair value | 9,236 | 8,641 | ||||
HMBS related borrowings, principal amount due upon maturity | $ 348,865 | $ 293,542 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 12, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
2024 Acquisitions | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 27 | ||
2023 Acquisitions | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 15.4 | ||
Payments to acquire businesses, gross | 8 | ||
Fair value of contingent consideration | 6.1 | ||
Issuance discount on note receivable | $ 1.3 | ||
Cherry Creek Mortgage, LLC | |||
Business Acquisition [Line Items] | |||
Notes receivable | $ 11.3 | ||
Discount on note receivable | $ 1.3 | ||
Term of earn out payment | 4 years | ||
Percentage of interest payment allowed to be paid-in-kind | 50% |
ADVANCES, NET - Schedule of Acc
ADVANCES, NET - Schedule of Accounts , Notes and Interest Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||||||
Trust advances | $ 35,126 | $ 44,487 | ||||
Foreclosure advances | 23,321 | 25,955 | ||||
Foreclosure loss reserve | (4,807) | $ (5,826) | (5,694) | $ (6,659) | $ (8,665) | $ (8,698) |
Advances, Net | $ 53,640 | $ 64,748 |
ADVANCES, NET - Schedule of Act
ADVANCES, NET - Schedule of Activity of the Foreclosure Loss Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Foreclosure Loss Reserve [Roll Forward] | ||||
Balance — beginning of year | $ 5,826 | $ 8,665 | $ 5,694 | $ 8,698 |
(Reversal of) provision for foreclosure losses | (496) | (1,044) | (104) | 470 |
Utilization of foreclosure reserve | (523) | (962) | (783) | (2,509) |
Balance — end of year | $ 4,807 | $ 6,659 | $ 4,807 | $ 6,659 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Net Unrealized Hedging (Losses) Gains (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized hedging (losses) gains | $ 17,506 | $ 15,755 | ||
Not Designated as Hedging Instruments | Loan Origination Fees and Gain on Sale of Loans, Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized hedging (losses) gains | $ (7,566) | $ 9,703 | $ 17,506 | $ 15,755 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Notional and Fair Value of Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instruments - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Notional Value | $ 1,821,836 | $ 821,865 |
Derivative Asset | 18,172 | 14,902 |
Derivative Liability | 0 | 0 |
Forward delivery commitments and best efforts sales commitments | ||
Derivative [Line Items] | ||
Notional Value | 1,923,277 | 933,850 |
Derivative Asset | 2,754 | 693 |
Derivative Liability | $ 4,666 | $ 16,245 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - Not Designated as Hedging Instruments - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||||
Outstanding forward contracts and mandatory sell commitments | $ 314,600,000 | $ 314,600,000 | $ 163,800,000 | ||
Closed hedge instruments not yet settled | 455,000,000 | 455,000,000 | $ 343,000,000 | ||
Credit losses due to nonperformance of counterparties | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Quantitative Information About IRLCs and Fair Value Measurements (Details) - Interest Rate Lock Commitments | Jun. 30, 2024 | Dec. 31, 2023 |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 0% | 0% |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 100% | 100% |
Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 88% | 86.50% |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Financial Liabilities are Subject to Master Netting Arrangements or Similar Agreements Categorized by Financial Instrument (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liability | $ (6,733) | $ (18,105) |
Gross Amounts Offset in the Balance Sheet | ||
Derivative liability offset | 2,017 | 148 |
Cash Collateral Paid and Offset in the Balance Sheet | ||
Derivative liability | 50 | 1,712 |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liability | (4,666) | (16,245) |
Derivative Financial Instruments, Assets | ||
Gross Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative asset | 1,602 | 8 |
Gross Amounts Offset in the Balance Sheet | ||
Derivative asset offset | (3,436) | (2,837) |
Cash Collateral Paid and Offset in the Balance Sheet | ||
Derivative asset | 4,588 | 3,522 |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative assets | 2,754 | 693 |
Forward delivery commitments | Derivative Financial Instruments, Assets | ||
Gross Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative asset | 1,602 | 8 |
Gross Amounts Offset in the Balance Sheet | ||
Derivative asset offset | (3,436) | (2,837) |
Cash Collateral Paid and Offset in the Balance Sheet | ||
Derivative asset | 4,588 | 3,522 |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative assets | 2,754 | 693 |
Forward delivery commitments and best efforts sales commitments | Derivative Financial Instruments, Liabilities | ||
Gross Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liability | (6,733) | (18,105) |
Gross Amounts Offset in the Balance Sheet | ||
Derivative liability offset | 2,017 | 148 |
Cash Collateral Paid and Offset in the Balance Sheet | ||
Derivative liability | 50 | 1,712 |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liability | $ (4,666) | $ (16,245) |
MORTGAGE SERVICING RIGHTS - Sum
MORTGAGE SERVICING RIGHTS - Summary of Activity of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance — beginning of period | $ 1,216,483 | $ 1,112,161 | $ 1,161,357 | $ 1,139,539 |
MSRs originated | 55,397 | 44,452 | 89,631 | 71,945 |
MSRs purchased | 18,648 | 0 | 18,762 | 0 |
Changes in fair value: | ||||
Due to collection/realization of cash flows | (18,511) | (15,890) | (30,630) | (27,060) |
Due to changes in valuation model inputs or assumptions | 20,645 | 43,780 | 53,542 | 79 |
Balance — end of period | $ 1,292,662 | $ 1,184,503 | $ 1,292,662 | $ 1,184,503 |
MORTGAGE SERVICING RIGHTS - S_2
MORTGAGE SERVICING RIGHTS - Summary of the Weighted Average Discount Rate, Prepayment Speed and Cost to Service Assumptions Used to Determine the Fair Value of MSRs (Details) - $ / loan | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
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% | 6.40% |
Cost to service (in USD per loan) | 71.9 | 72.1 |
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% | 15.50% |
Prepayment rate | 42.90% | 32% |
Cost to service (in USD per loan) | 466.1 | 366.3 |
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% | 10.90% |
Prepayment rate | 7.90% | 8.50% |
Cost to service (in USD per loan) | 96.2 | 96.4 |
MORTGAGE SERVICING RIGHTS - Add
MORTGAGE SERVICING RIGHTS - Additional Information (Details) - USD ($) $ in Billions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Mortgage servicing rights weighted average life | 8 years 2 months 12 days | 8 years |
Unpaid principal balance of mortgage loans serviced | $ 89.1 | $ 85 |
Subserviced Loans | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Unpaid principal balance of mortgage loans serviced | $ 1.6 |
MORTGAGE SERVICING RIGHTS - S_3
MORTGAGE SERVICING RIGHTS - Summary of Actual Revenue Generated from Servicing Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Transfers and Servicing [Abstract] | ||||
Servicing fees from servicing portfolio | $ 66,065 | $ 59,410 | $ 130,099 | $ 118,390 |
Late fees | 2,042 | 1,619 | 4,098 | 3,287 |
Other ancillary servicing revenue and fees | (398) | (818) | (700) | (1,379) |
Total loan servicing and other fees | $ 67,709 | $ 60,211 | $ 133,497 | $ 120,298 |
MORTGAGE SERVICING RIGHTS - S_4
MORTGAGE SERVICING RIGHTS - Summary of Impact of Adverse Changes on Prepayment Speeds, Discount Rate and Cost to Service at Two Different Data Points (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Transfers and Servicing [Abstract] | ||
Mortgage servicing rights, Prepayment Speeds 10% Adverse Change | $ (40,735) | $ (36,968) |
Mortgage servicing rights, Prepayment Speeds 20% Adverse Change | (79,215) | (72,701) |
Mortgage servicing rights, Discount Rates 10% Adverse Change | (53,549) | (47,899) |
Mortgage servicing rights, Discount Rates 20% Adverse Change | (103,281) | (93,196) |
Mortgage servicing rights, Cost to Service (per loan) 10% Adverse Change | (12,841) | (11,315) |
Mortgage servicing rights, Cost to Service (per loan) 20% Adverse Change | $ (25,506) | $ (23,573) |
MORTGAGE LOANS HELD FOR SALE (D
MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Mortgages Held For Sale [Roll Forward] | ||
Balance — beginning of period | $ 901,227 | $ 845,775 |
Origination and purchase of mortgage loans held for sale | 9,650,745 | 7,012,503 |
Proceeds on sale of and payments from mortgage loans held for sale | (9,057,786) | (6,877,200) |
Gain on sale of mortgage loans excluding fair value of other financial instruments, net | 235,539 | 151,020 |
Valuation adjustment of mortgage loans held for sale | (718) | (6,106) |
Balance — end of period | $ 1,729,007 | $ 1,125,992 |
REVERSE MORTGAGE LOANS HELD F_3
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS - Schedule of Loans Held For Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reverse Mortgage Loans Held for Investment | ||||
Balance — beginning of period | $ 348,076 | $ 0 | $ 315,912 | $ 0 |
Originations and purchases | 36,940 | 34,403 | 67,483 | 34,403 |
Repayments (principal payments received) | (14,428) | (23,620) | ||
Change in fair value recognized in earnings | 5,594 | 2,306 | 16,407 | 2,306 |
Balance — end of period | 376,182 | 36,709 | 376,182 | 36,709 |
HMBS-Related Borrowings | ||||
Balance — beginning of period | (326,804) | 0 | (302,183) | 0 |
Securitization of home equity conversion mortgages (“HECM”) loans and tails accounted for as a financing (including realized fair value changes) | (39,677) | (66,201) | ||
Repayments (principal payments received) | 11,840 | 21,326 | ||
Change in fair value recognized in earnings | (3,460) | (11,043) | ||
Balance — end of period | (358,101) | 0 | (358,101) | 0 |
Reverse Mortgage Loans Held for Investment | ||||
Securitized loans (pledged to HMBS-related borrowings) | 365,005 | 365,005 | ||
Unsecuritized loans and tail advances | 11,177 | 36,709 | 11,177 | 36,709 |
Total | 376,182 | 36,709 | 376,182 | 36,709 |
HMBS-Related Borrowings | ||||
Securitized loans (pledged to HMBS-related borrowings) | (358,101) | (358,101) | ||
Home Equity Conversion Mortgage-Backed Securities Related Borrowings At Fair Value | $ 358,101 | $ 0 | $ 358,101 | $ 0 |
REVERSE MORTGAGE LOANS HELD F_4
REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS - Schedule of Gain on Reverse Mortgage Loans Held for Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | ||||
Gain on new originations | $ 1,882 | $ 0 | $ 3,166 | $ 0 |
Gain on tail securitizations | 435 | 0 | 757 | 0 |
Net interest income | 25 | 0 | 48 | 0 |
Change in fair value of reverse mortgage loans held for investment | (208) | 2,306 | 1,393 | 2,306 |
Fair value gain recognized in earnings | 2,134 | 2,306 | 5,364 | 2,306 |
Loan fees and other(4) | 963 | 282 | 1,749 | 282 |
Total | $ 3,097 | $ 2,588 | $ 7,113 | $ 2,588 |
REVERSE MORTGAGE LOANS HELD F_5
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) | Jun. 30, 2024 yr | Dec. 31, 2023 $ / shares yr |
Discount rate | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Measurement input | 0.120 | 0.120 |
Minimum | Life in years | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Measurement input | 0.1 | 0.1 |
Minimum | Conditional prepayment rate including voluntary and involuntary prepayments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Measurement input | 0.065 | 0.069 |
Maximum | Life in years | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Measurement input | 9.1 | 8.9 |
Maximum | Conditional prepayment rate including voluntary and involuntary prepayments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Measurement input | 0.199 | 0.113 |
Weighted Average | Life in years | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Measurement input | 6.9 | 7.2 |
Weighted Average | Conditional prepayment rate including voluntary and involuntary prepayments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Measurement input | 0.080 | 0.081 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 198,724 | $ 186,181 | $ 176,769 |
Intangible assets, net | 31,728 | 25,125 | |
Goodwill and intangible assets, net | $ 230,452 | $ 211,306 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Changes in the Carrying Amount of Goodwill Allocated to the Origination Segment (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 186,181 | $ 176,769 | $ 176,769 |
Acquisitions | 12,543 | 8,654 | |
Purchase accounting adjustments | 0 | $ 760 | 758 |
Ending balance | $ 198,724 | $ 186,181 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 56,200 | $ 45,000 |
Accumulated Amortization | (24,472) | (19,875) |
Net Intangibles | 31,728 | 25,125 |
Referral network | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | 53,500 | 42,300 |
Accumulated Amortization | (21,772) | (17,625) |
Net Intangibles | 31,728 | 24,675 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | 2,700 | 2,700 |
Accumulated Amortization | (2,700) | (2,250) |
Net Intangibles | $ 0 | $ 450 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 2.4 | $ 2 | $ 4.6 | $ 4 |
WAREHOUSE LINES OF CREDIT, NE_2
WAREHOUSE LINES OF CREDIT, NET - Schedule of Warehouse Lines of Credit (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Aug. 08, 2024 | Dec. 31, 2023 | |
Warehouse Lines of Credit [Line Items] | |||
Warehouse lines of credit, net | $ 1,616,569,000 | $ 833,781,000 | |
Warehouse Agreement Borrowings | |||
Warehouse Lines of Credit [Line Items] | |||
Warehouse lines of credit | 1,619,132,000 | 836,335,000 | |
Prepaid commitment fees | (2,563,000) | (2,554,000) | |
Warehouse lines of credit, net | 1,616,569,000 | 833,781,000 | |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement $345 Million Due January 2025 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | 165,000,000 | ||
Warehouse lines of credit | 147,062,000 | 122,462,000 | |
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $150 Million, Due August 2024 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | 250,000,000 | ||
Warehouse lines of credit | 198,856,000 | 99,059,000 | |
Minimum deposit required for line of credit | 1,300,000 | ||
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $300 Million, Due June 2024 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | 400,000,000 | ||
Warehouse lines of credit | 366,086,000 | 158,412,000 | |
Minimum deposit required for line of credit | 2,000,000 | ||
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 | 141,856,000 | 87,252,000 | |
Minimum deposit required for line of credit | $ 300,000 | ||
Variable rate, floor | 0.375% | ||
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement $200 Million Due September 2024 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 200,000,000 | ||
Warehouse lines of credit | $ 139,963,000 | 91,039,000 | |
Variable rate, floor | 0.40% | ||
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $300 Million, Due September 2024 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 400,000,000 | ||
Warehouse lines of credit | $ 273,412,000 | 134,964,000 | |
Variable rate, floor | 0.50% | ||
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $300 Million, Due September 2024 | Subsequent Event | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 500,000,000 | ||
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $50 Million | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 200,000,000 | ||
Warehouse lines of credit | $ 161,931,000 | 30,185,000 | |
Maturity, period from written notice | 30 days | ||
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $200 Million | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 200,000,000 | ||
Warehouse lines of credit | $ 163,022,000 | 78,682,000 | |
Variable rate, floor | 0.75% | ||
Maturity, period from written notice | 364 days | ||
Committed amount | $ 150,000,000 | ||
Amount due on demand | 50,000,000 | ||
Warehouse Agreement Borrowings | Master Repurchase Facility Agreement, $75 Million | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | 75,000,000 | ||
Warehouse lines of credit | $ 26,944,000 | $ 34,280,000 | |
Stated interest rate | 3.375% | ||
Maximum term of buyout transactions on facility | 5 years |
WAREHOUSE LINES OF CREDIT, NE_3
WAREHOUSE LINES OF CREDIT, NET - Additional Information (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Warehouse Lines of Credit [Line Items] | ||
Warehouse lines of credit, net | $ 1,616,569,000 | $ 833,781,000 |
Line of Credit | ||
Warehouse Lines of Credit [Line Items] | ||
Warehouse lines of credit, net | $ 0 | 0 |
Line of Credit | Warehouse Agreement Borrowings | ||
Warehouse Lines of Credit [Line Items] | ||
Weighted average interest rate | 7% | |
Cash balances | $ 6,400,000 | $ 8,700,000 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Term Note | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 175,000,000 | ||
Current borrowing capacity | $ 125,000,000 | ||
Periodic payment, principal, percentage of outstanding balance | 5% | ||
Remaining balance | $ 87,500,000 | ||
Revolving Credit Facility | Federal National Mortgage Association | |||
Debt Instrument [Line Items] | |||
Variable rate, floor | 2% | ||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | ||
Outstanding borrowings | 130,000,000 | $ 87,800,000 | |
Current borrowing capacity | $ 250,000,000 | ||
Federal Home Loan Mortgage Corporation | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Variable rate, floor | 0.50% | ||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||
Outstanding borrowings | $ 95,000,000 | 30,000,000 | |
Unused facility fee percentage | 35% | ||
Government National Mortgage Association | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Percentage of available facility to waive unused facility fee (as a percent) | 50% | ||
Line of credit facility, maximum borrowing capacity | $ 135,000,000 | ||
Maximum amount of committed to increase | 200,000,000 | ||
Outstanding borrowings | $ 46,000,000 | $ 31,000,000 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
May 05, 2022 USD ($) | Jun. 30, 2024 USD ($) class $ / shares shares | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) class vote $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) shares | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of classes of stock | class | 2 | 2 | ||||||
Dividends paid | $ 30,702 | $ 0 | $ 30,500 | |||||
Stock repurchase program, period in force | 24 months | |||||||
Stock repurchased and retired during period, value | $ 201 | $ 251 | $ 550 | $ 568 | ||||
Stock repurchase program, remaining authorized repurchase | $ 10,700 | $ 10,700 | ||||||
Restricted Stock Units | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Dividend equivalent units granted (in shares) | shares | 59,330 | 95,413 | ||||||
Restricted Stock Units | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Right to receive common stock, upon vesting (in shares) | shares | 1 | |||||||
Class A Common Stock | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Common stock, voting rights, votes per share | vote | 1 | |||||||
Stock repurchase program, authorized amount | $ 20,000 | |||||||
Stock repurchased and retired during period (in shares) | shares | 14,221 | 51,588 | 31,968 | 101,754 | ||||
Stock repurchased and retired during period, value | $ 200 | $ 500 | $ 500 | $ 1,100 | ||||
Average cost per share (in dollars per share) | $ / shares | $ 14.09 | $ 10.64 | $ 14.13 | $ 10.96 | ||||
Class B Common Stock | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Common stock, voting rights, votes per share | vote | 10 |
EARNINGS (LOSS) PER SHARE - Sch
EARNINGS (LOSS) 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 37,583 | $ 36,936 | $ 66,081 | $ (254) |
Weighted-average shares outstanding - basic (in shares) | 61,337 | 60,962 | 61,223 | 60,931 |
Add dilutive effects of unvested shares of restricted stock (in shares) | 1,056 | 839 | 1,052 | 0 |
Weighted average shares outstanding—diluted (in shares) | 62,393 | 61,801 | 62,275 | 60,931 |
Earnings (loss) per share attributable to Class A and Class B Common Stock: | ||||
Basic (in dollars per share) | $ 0.61 | $ 0.61 | $ 1.08 | $ 0 |
Diluted (in dollars per share) | $ 0.60 | $ 0.60 | $ 1.06 | $ 0 |
Class A Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted-average shares outstanding - basic (in shares) | 21,004 | 20,629 | 20,890 | 20,598 |
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 |
EARNINGS (LOSS) PER SHARE - Add
EARNINGS (LOSS) PER SHARE - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Number of shares excluded from calculation of earnings per share | 0 | 0 | 0 | 786,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - Restricted Stock Units - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ||||
Compensation costs recognized | $ 2.7 | $ 2.3 | $ 4.8 | $ 4.1 |
Unrecognized compensation costs | $ 13.4 | $ 13.4 | ||
Restricted stock grants expected to recognition period | 1 year 4 months 24 days |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Activity of Investor Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investor Reserves [Roll Forward] | ||||
Balance — beginning of period | $ 18,278 | $ 16,671 | $ 19,973 | $ 16,094 |
Provision for investor reserves | 4,036 | 3,116 | 4,556 | 5,018 |
Realized losses, net | (2,003) | (1,423) | (4,218) | (2,748) |
Balance — end of period | $ 20,311 | $ 18,364 | $ 20,311 | $ 18,364 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Total commitments to originate loans | $ 1,800 | $ 821.9 |
Total commitments related to derivatives | 1,900 | 933.9 |
Reverse mortgage loans borrowers | 116.9 | 107.3 |
Short-term commitments to lend | $ 2.3 | $ 0.3 |
REGULATORY CAPITAL AND LIQUID_2
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Mortgage Banking [Abstract] | ||
Minimum adjusted net worth balance required | $ 263.8 | $ 253.5 |
SEGMENTS - Additional Informati
SEGMENTS - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 loan segment state | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 2 |
Servicing Segment | |
Segment Reporting Information [Line Items] | |
Number of states in which entity operates | state | 49 |
Minimum | Servicing | |
Segment Reporting Information [Line Items] | |
Number of loans serviced | loan | 1 |
SEGMENTS - Summary of Financial
SEGMENTS - Summary of Financial Performance and Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | ||||||
Loan origination fees and gain on sale of loans, net | $ 205,848 | $ 136,925 | $ 339,908 | $ 229,576 | ||
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 2,134 | 2,306 | 5,364 | 2,306 | ||
Loan servicing and other fees | 67,709 | 60,211 | 133,497 | 120,298 | ||
Valuation adjustment of mortgage servicing rights | 2,134 | 27,890 | 22,912 | (26,981) | ||
Interest income (expense), net | 7,572 | 9,255 | 15,759 | 15,238 | ||
Other income, net | 288 | 224 | 27 | 259 | ||
Net revenue | 285,685 | 236,811 | 517,467 | 340,696 | ||
Expenses | ||||||
Salaries, incentive compensation and benefits | 188,938 | 144,903 | 329,005 | 256,023 | ||
General and administrative | 28,398 | 20,448 | 57,609 | 41,331 | ||
Occupancy, equipment and communication | 20,348 | 18,402 | 40,163 | 35,832 | ||
Depreciation and amortization | 3,970 | 3,661 | 7,724 | 7,399 | ||
(Reversal of) provision for foreclosure losses | (496) | (1,044) | (104) | 470 | ||
Total expenses | 241,158 | 186,370 | 434,397 | 341,055 | ||
Income tax expense (benefit) | 6,936 | 13,505 | 17,079 | (100) | ||
Net income (loss) | 37,591 | $ 28,400 | 36,936 | $ (37,195) | 65,991 | (259) |
Operating Segments | ||||||
Revenue | ||||||
Loan origination fees and gain on sale of loans, net | 205,848 | 136,925 | 339,908 | 229,576 | ||
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 2,134 | 2,306 | 5,364 | 2,306 | ||
Loan servicing and other fees | 67,709 | 60,249 | 133,497 | 120,336 | ||
Valuation adjustment of mortgage servicing rights | 2,134 | 27,890 | 22,912 | (26,981) | ||
Interest income (expense), net | 11,791 | 11,597 | 22,911 | 20,307 | ||
Other income, net | 580 | 217 | 966 | 267 | ||
Net revenue | 290,196 | 239,184 | 525,558 | 345,811 | ||
Expenses | ||||||
Salaries, incentive compensation and benefits | 177,555 | 134,519 | 306,805 | 235,350 | ||
General and administrative | 24,653 | 17,301 | 49,063 | 34,675 | ||
Occupancy, equipment and communication | 18,611 | 17,410 | 36,512 | 33,842 | ||
Depreciation and amortization | 3,432 | 3,582 | 7,064 | 7,123 | ||
(Reversal of) provision for foreclosure losses | (496) | (1,044) | (104) | 470 | ||
Total expenses | 223,755 | 171,768 | 399,340 | 311,460 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net income (loss) | 66,441 | 67,416 | 126,218 | 34,351 | ||
Corporate, Non-Segment | ||||||
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 | 0 | 0 | ||
Loan servicing and other fees | 0 | (38) | 0 | (38) | ||
Valuation adjustment of mortgage servicing rights | 0 | 0 | 0 | 0 | ||
Interest income (expense), net | (4,219) | (2,342) | (7,152) | (5,069) | ||
Other income, net | (292) | 7 | (939) | (8) | ||
Net revenue | (4,511) | (2,373) | (8,091) | (5,115) | ||
Expenses | ||||||
Salaries, incentive compensation and benefits | 11,383 | 10,384 | 22,200 | 20,673 | ||
General and administrative | 3,745 | 3,147 | 8,546 | 6,656 | ||
Occupancy, equipment and communication | 1,737 | 992 | 3,651 | 1,990 | ||
Depreciation and amortization | 538 | 79 | 660 | 276 | ||
(Reversal of) provision for foreclosure losses | 0 | 0 | 0 | 0 | ||
Total expenses | 17,403 | 14,602 | 35,057 | 29,595 | ||
Income tax expense (benefit) | 6,936 | 13,505 | 17,079 | (100) | ||
Net income (loss) | (28,850) | (30,480) | (60,227) | (34,610) | ||
Origination | Operating Segments | ||||||
Revenue | ||||||
Loan origination fees and gain on sale of loans, net | 206,218 | 136,499 | 339,882 | 228,775 | ||
Loan servicing and other fees | 0 | 0 | 0 | 0 | ||
Valuation adjustment of mortgage servicing rights | 0 | 0 | 0 | 0 | ||
Interest income (expense), net | (119) | 1,331 | 545 | 2,631 | ||
Other income, net | 535 | 168 | 899 | 166 | ||
Net revenue | 208,768 | 140,304 | 346,690 | 233,878 | ||
Expenses | ||||||
Salaries, incentive compensation and benefits | 169,037 | 127,024 | 290,142 | 220,281 | ||
General and administrative | 21,798 | 15,061 | 42,346 | 29,555 | ||
Occupancy, equipment and communication | 17,876 | 16,187 | 34,811 | 31,361 | ||
Depreciation and amortization | 3,162 | 3,364 | 6,653 | 6,763 | ||
(Reversal of) provision for foreclosure losses | 0 | 0 | 0 | 0 | ||
Total expenses | 211,873 | 161,636 | 373,952 | 287,960 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net income (loss) | (3,105) | (21,332) | (27,262) | (54,082) | ||
Servicing | Operating Segments | ||||||
Revenue | ||||||
Loan origination fees and gain on sale of loans, net | (370) | 426 | 26 | 801 | ||
Loan servicing and other fees | 67,709 | 60,249 | 133,497 | 120,336 | ||
Valuation adjustment of mortgage servicing rights | 2,134 | 27,890 | 22,912 | (26,981) | ||
Interest income (expense), net | 11,910 | 10,266 | 22,366 | 17,676 | ||
Other income, net | 45 | 49 | 67 | 101 | ||
Net revenue | 81,428 | 98,880 | 178,868 | 111,933 | ||
Expenses | ||||||
Salaries, incentive compensation and benefits | 8,518 | 7,495 | 16,663 | 15,069 | ||
General and administrative | 2,855 | 2,240 | 6,717 | 5,120 | ||
Occupancy, equipment and communication | 735 | 1,223 | 1,701 | 2,481 | ||
Depreciation and amortization | 270 | 218 | 411 | 360 | ||
(Reversal of) provision for foreclosure losses | (496) | (1,044) | (104) | 470 | ||
Total expenses | 11,882 | 10,132 | 25,388 | 23,500 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net income (loss) | 69,546 | 88,748 | 153,480 | 88,433 | ||
Origination Segment | Operating Segments | ||||||
Revenue | ||||||
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | 2,134 | 2,306 | 5,364 | 2,306 | ||
Servicing Segment | Operating Segments | ||||||
Revenue | ||||||
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net | $ 0 | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event | 1 Months Ended |
Aug. 08, 2024 | |
Subsequent Event [Line Items] | |
Maximum percentage of net policy value (as a percent) | 90% |
Net interest percentage | 1% |