Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 05, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | FINANCE OF AMERICA COMPANIES INC. | |
Entity Central Index Key | 0001828937 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 62,642,931 | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-40308 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-3474065 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Address, Address Line One | 5830 Granite Parkway | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75024 | |
City Area Code | 877 | |
Local Phone Number | 202-2666 | |
Class A common stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | FOA | |
Security Exchange Name | NYSE | |
Warrant to purchase | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase shares of Class A Common Stock | |
Trading Symbol | FOA.WS | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 219,033 | $ 141,238 |
Restricted cash | 354,803 | 322,403 |
Loans held for investment, subject to Home Equity Conversion Mortgage-Backed Securities ("HMBS") related obligations, at fair value | 10,882,441 | 10,556,054 |
Loans held for investment, subject to nonrecourse debt, at fair value | 6,600,762 | 6,218,194 |
Loans held for investment, at fair value | 1,058,410 | 1,031,328 |
Loans held for sale, at fair value | 1,229,594 | 2,052,378 |
Mortgage servicing rights ("MSRs"), at fair value, $143,382 and $142,435, subject to nonrecourse MSRs financing liability, respectively | 359,006 | 427,942 |
Derivative assets | 55,186 | 48,870 |
Fixed assets and leasehold improvements, net | 29,805 | 29,256 |
Intangible assets, net | 575,284 | 602,900 |
Other assets, net | 371,902 | 358,383 |
TOTAL ASSETS | 21,736,226 | 21,788,946 |
LIABILITIES AND EQUITY | ||
HMBS related obligations, at fair value | 10,745,879 | 10,422,358 |
Nonrecourse debt, at fair value | 6,752,084 | 6,111,242 |
Other financing lines of credit | 2,593,290 | 3,347,442 |
Payables and other liabilities | 428,768 | 471,511 |
Notes payable, net | 353,005 | 353,383 |
TOTAL LIABILITIES | 20,873,026 | 20,705,936 |
Commitments and Contingencies (Note 16) | ||
EQUITY (Note 22) | ||
Additional paid-in capital | 860,232 | 831,620 |
Accumulated deficit | (492,786) | (443,613) |
Accumulated other comprehensive loss | (262) | (110) |
Noncontrolling interest | 496,010 | 695,107 |
TOTAL EQUITY | 863,200 | 1,083,010 |
TOTAL LIABILITIES AND EQUITY | 21,736,226 | 21,788,946 |
Class A Common Stock | ||
EQUITY (Note 22) | ||
Common Stock Value | 6 | 6 |
Class B Common Stock | ||
EQUITY (Note 22) | ||
Common Stock Value | $ 0 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Mortgage servicing rights, at fair value | $ 143,382 | $ 142,435 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 6,000,000,000 | 6,000,000,000 |
Common stock, shares issued | 62,474,553 | 62,474,553 |
Common stock, shares outstanding | 62,474,553 | 62,474,553 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 15 | 15 |
Common stock, shares outstanding | 15 | 15 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Condition (Variable Interest Entities) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Restricted cash | $ 354,803 | $ 322,403 |
Loans held for investment, subject to nonrecourse debt, at fair value | 1,058,410 | 1,031,328 |
TOTAL ASSETS | 21,736,226 | 21,788,946 |
LIABILITIES | ||
Nonrecourse debt, at fair value | 6,752,084 | 6,111,242 |
TOTAL LIABILITIES | 20,873,026 | 20,705,936 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 342,575 | 311,652 |
Loans held for investment, subject to nonrecourse debt, at fair value | 6,433,638 | 6,099,607 |
Other assets, net | 68,239 | 67,593 |
TOTAL ASSETS | 6,844,452 | 6,478,852 |
LIABILITIES | ||
Nonrecourse debt, at fair value | 6,447,237 | 5,857,069 |
Payables and other liabilities | 598 | 428 |
TOTAL LIABILITIES | 6,447,835 | 5,857,497 |
Net fair value of assets subject to nonrecourse debt | $ 396,617 | $ 621,355 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
REVENUES | ||||
Gain on sale and other income from loans held for sale, net | $ 71,805 | $ 187,577 | $ 291,334 | $ 190,157 |
Net fair value gains on loans and related obligations | 1,613 | 131,151 | 76,663 | 12,048 |
Fee income | 88,681 | 90,864 | 161,371 | 246,286 |
Net interest expense: | ||||
Interest income | 15,853 | 13,151 | 12,661 | 29,726 |
Interest expense | (36,834) | (33,626) | (34,366) | (69,664) |
Net interest expense | (20,981) | (20,475) | (21,705) | (39,938) |
TOTAL REVENUES | 141,118 | 389,117 | 507,663 | 408,553 |
EXPENSES | ||||
Salaries, benefits and related expenses | 194,294 | 274,731 | 238,530 | 403,370 |
Occupancy, equipment rentals and other office related expenses | 7,262 | 6,720 | 7,597 | 15,100 |
General and administrative expenses | 123,457 | 119,301 | 127,187 | 256,080 |
TOTAL EXPENSES | 325,013 | 400,752 | 373,314 | 674,550 |
OTHER, NET | 15,132 | (2,103) | (8,892) | 19,904 |
NET INCOME (LOSS) BEFORE INCOME TAXES | (168,763) | (13,738) | 125,457 | (246,093) |
Provision (benefit) for income taxes | (940) | 1,086 | 1,137 | (14,275) |
NET INCOME (LOSS) | (167,823) | (14,824) | 124,320 | (231,818) |
Contingently Redeemable Noncontrolling Interest ("CRNCI") | 0 | 0 | 4,260 | 0 |
Noncontrolling interest | (127,143) | (17,089) | 201 | (182,645) |
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ (40,680) | $ 2,265 | $ 119,859 | $ (49,173) |
EARNINGS PER SHARE (Note 21) | ||||
Basic weighted average shares outstanding | 62,379,041 | 59,881,714 | 61,580,900 | |
Basic net earnings (loss) per share | $ (0.65) | $ 0.04 | $ (0.8) | |
Diluted weighted average shares outstanding | 187,818,225 | 191,200,000 | 188,629,076 | |
Diluted net loss per share | $ (0.7) | $ (0.05) | $ (1) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
NET INCOME (LOSS) | $ (167,823) | $ (14,824) | $ 124,320 | $ (231,818) |
Impact of foreign currency translation adjustment | (163) | (27) | (11) | (152) |
TOTAL COMPREHENSIVE INCOME (LOSS) | (167,986) | (14,851) | 124,309 | (231,970) |
Less: Net income (loss) attributable to the noncontrolling interest and CRNCI | (127,253) | (17,108) | 4,461 | (182,748) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ (40,733) | $ 2,257 | $ 119,848 | $ (49,222) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Accumulated Deficit | FoA Equity Capital LLC Member's Equity | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Class A Common Stock Common Stock | Class B Common Stock Common Stock |
Balance at beginning of period at Dec. 31, 2020 | $ 628,040 | $ 628,176 | $ 9 | $ (145) | ||||
Net income (loss) | 124,320 | |||||||
Contributions from members | 1,426 | 1,426 | ||||||
Distributions to members | (75,000) | (75,000) | ||||||
Noncontrolling interest distributions | (620) | (620) | ||||||
Net income | 120,060 | 119,859 | 201 | |||||
Accretion of CRNCI to redemption price | (32,725) | (32,725) | ||||||
Foreign currency translation adjustment | (11) | (11) | ||||||
Balance at end of period at Mar. 31, 2021 | 641,170 | $ 641,736 | (2) | (564) | ||||
Balance at end of period at Mar. 31, 2021 | 2,344,981 | $ 758,243 | $ (71,813) | 0 | $ 1,658,545 | $ 6 | $ 0 | |
Balance at end of period (in shares) at Mar. 31, 2021 | 131,318,286 | 59,881,714 | 7 | |||||
Net income (loss) | (14,824) | 2,265 | $ (17,089) | |||||
Noncontrolling interest contributions | 24 | 24 | ||||||
Noncontrolling interest distributions | (137) | (137) | ||||||
Equity based compensation, net | 49,278 | 49,278 | ||||||
Foreign currency translation adjustment | (27) | (27) | ||||||
Balance at end of period at Jun. 30, 2021 | 2,379,295 | 807,521 | (69,548) | (27) | $ 1,641,343 | $ 6 | $ 0 | |
Balance at end of period (in shares) at Jun. 30, 2021 | 131,318,286 | 59,881,714 | 7 | |||||
Balance at beginning of period at Dec. 31, 2021 | 1,083,010 | 831,620 | (443,613) | (110) | $ 695,107 | $ 6 | $ 0 | |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 128,693,867 | 60,755,069 | 15 | |||||
Net income (loss) | (231,818) | (49,173) | $ (182,645) | |||||
Noncontrolling interest contributions | 42 | 42 | ||||||
Noncontrolling interest distributions | (192) | (192) | ||||||
Equity based compensation, net | 20,883 | 20,883 | ||||||
Conversion of LLC Units for Class A Common Stock (Note 22—Equity) | (116) | 424 | $ (540) | |||||
Conversion of LLC Units for Class A Common Stock (Note 22—Equity) (shares) | (108,113) | 108,113 | ||||||
Settlement of LTIP RSUs, net (Note 21—Earnings Per Share) | (4,751) | 11,011 | $ (15,762) | |||||
Settlement of LTIP RSUs, net (Note 21—Earnings Per Share) (shares) | (3,172,247) | 3,172,247 | ||||||
Settlement of other RSUs (Note 21—Earnings Per Share) | 93,455 | |||||||
Cancellation of shares to fund employee tax withholdings (Note 22—Equity) | (3,706) | (3,706) | ||||||
Cancellation of shares to fund employee tax withholdings (Note 22—Equity) (in shares) | (1,654,331) | |||||||
Foreign currency translation adjustment | (152) | (152) | ||||||
Balance at end of period at Jun. 30, 2022 | 863,200 | 860,232 | (492,786) | (262) | $ 496,010 | $ 6 | $ 0 | |
Balance at end of period (in shares) at Jun. 30, 2022 | 125,413,507 | 62,474,553 | 15 | |||||
Balance at beginning of period at Mar. 31, 2022 | 1,032,095 | 845,002 | (452,106) | (99) | $ 639,292 | $ 6 | $ 0 | |
Balance at beginning of period (in shares) at Mar. 31, 2022 | 128,633,367 | 60,815,569 | 15 | |||||
Net income (loss) | (167,823) | (40,680) | $ (127,143) | |||||
Noncontrolling interest contributions | 42 | 42 | ||||||
Noncontrolling interest distributions | (192) | (192) | ||||||
Equity based compensation, net | 7,779 | 7,779 | ||||||
Conversion of LLC Units for Class A Common Stock (Note 22—Equity) | (91) | 194 | $ (285) | |||||
Conversion of LLC Units for Class A Common Stock (Note 22—Equity) (shares) | (58,417) | 58,417 | ||||||
Settlement of LTIP RSUs, net (Note 21—Earnings Per Share) | (4,741) | 10,963 | $ (15,704) | |||||
Settlement of LTIP RSUs, net (Note 21—Earnings Per Share) (shares) | (3,161,443) | 3,161,443 | ||||||
Settlement of other RSUs (Note 21—Earnings Per Share) | 93,455 | |||||||
Cancellation of shares to fund employee tax withholdings (Note 22—Equity) | (3,706) | (3,706) | ||||||
Cancellation of shares to fund employee tax withholdings (Note 22—Equity) (in shares) | (1,654,331) | |||||||
Foreign currency translation adjustment | (163) | (163) | ||||||
Balance at end of period at Jun. 30, 2022 | $ 863,200 | $ 860,232 | $ (492,786) | $ (262) | $ 496,010 | $ 6 | $ 0 | |
Balance at end of period (in shares) at Jun. 30, 2022 | 125,413,507 | 62,474,553 | 15 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Operating Activities | |||
Net income (loss) | $ (14,824) | $ 124,320 | $ (231,818) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | 5,172 | (6,277) | 986,478 |
Net cash provided by (used in) operating activities | (9,652) | 118,043 | 754,660 |
Investing Activities | |||
Purchases and originations of loans held for investment | (1,241,085) | (1,151,925) | (3,776,445) |
Proceeds/payments received on loans held for investment | 689,215 | 677,777 | 1,278,493 |
Purchases and origination of loans held for investment, subject to nonrecourse debt | (12,319) | (12,247) | (58,549) |
Proceeds/payments on loans held for investment, subject to nonrecourse debt | 251,152 | 217,452 | 1,160,149 |
Purchases of debt securities | (1,449) | (557) | (6,848) |
Proceeds/payments on debt securities | 1,888 | 2,096 | 912 |
Purchases of MSRs | (61) | (9,014) | 0 |
Proceeds on sale of MSRs | 0 | 7,765 | 191,707 |
Acquisition of subsidiaries, net of cash acquired | (20,000) | (749) | 0 |
Acquisition of fixed assets | (4,915) | (4,178) | (7,425) |
Payments on deferred purchase price liability | (311) | (657) | (8,000) |
Debtor in possession ("DIP") Financing | 0 | (35,260) | 0 |
Other investing activities, net | 0 | (2,550) | 88 |
Net cash used in investing activities | (337,885) | (312,047) | (1,225,918) |
Financing Activities | |||
Proceeds from issuance of HMBS related obligations | 795,334 | 602,172 | 1,933,150 |
Payments of HMBS related obligations | (597,892) | (506,142) | (1,438,537) |
Proceeds from issuance of nonrecourse debt | 600,595 | 579,518 | 1,929,163 |
Payments on nonrecourse debt | (498,966) | (658,300) | (1,082,466) |
Proceeds from other financing lines of credit | 8,758,149 | 10,027,696 | 14,315,000 |
Payments on other financing lines of credit | (8,620,873) | (9,660,588) | (15,069,153) |
Debt issuance costs | (580) | (2,467) | (373) |
Payment of withholding taxes relating to equity based compensation | 0 | 0 | (5,029) |
Member distributions | 0 | (75,000) | 0 |
Settlement of CRNCI | (203,216) | 0 | 0 |
Other financing activities, net | (114) | 806 | (150) |
Net cash provided by financing activities | 232,437 | 307,695 | 581,605 |
Foreign currency translation adjustment | (1) | (7) | (152) |
Net increase (decrease) in cash and restricted cash | (115,101) | 113,684 | 110,195 |
Cash and restricted cash, beginning of period | 653,047 | 539,363 | 463,641 |
Cash and restricted cash, end of period | 653,047 | 573,836 | |
Cash and restricted cash, beginning of period | 626,827 | ||
Cash and restricted cash, beginning of period | 511,726 | 626,827 | |
Supplementary Cash Flows Information | |||
Cash paid for interest | 68,186 | 50,071 | 117,351 |
Cash paid for income taxes, net | 1,521 | 63 | 25 |
Loans transferred to loans held for investment, at fair value, from loans held for investment, subject to nonrecourse debt, at fair value | 242,650 | 283,428 | 488,649 |
Loans transferred to loans held for investment, subject to nonrecourse debt, at fair value from loans held for investment, at fair value | 505,378 | 272,098 | 2,540,338 |
Loans transferred to loans held for investment, subject to HMBS, at fair value from loans held for investment, at fair value | $ 701,375 | $ 42,909 | $ 1,646,710 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Finance of America Companies Inc. (“FoA”, “Company”, or “Successor”) was incorporated in Delaware on October 9, 2020. FoA is a financial services holding company which, through its operating subsidiaries, is a leading originator and servicer of residential mortgage loans and provider of complementary financial services. FoA has a controlling financial interest in Finance of America Equity Capital LLC (“FoA Equity” or “Predecessor”). FoA Equity owns all of the outstanding equity interests in Finance of America Funding LLC (“FOAF”). FOAF wholly owns Finance of America Holdings LLC (“FAH”) and Incenter LLC (“Incenter” and collectively, with FoA Equity, FOAF and FAH, known as “holding company subsidiaries”). The Company, through its FAH holding company subsidiary, operates two lending companies, FAM and FAR (collectively, the “operating lending subsidiaries”). Effective January 1, 2022, the Company’s operating lending subsidiary Finance of America Commercial LLC (“FACo”), which previously operated as a separate operating lending subsidiary under FAH, merged with FAM, with FAM being the surviving operating lending subsidiary. Through FAM and FAR, the Company originates, purchases, sells, and securitizes conventional (conforming to the underwriting standards of Fannie Mae (“FNMA”) or Freddie Mac (“FHLMC”); collectively referred to as government sponsored entities (“GSEs”)), government-insured (FHA), government guaranteed (VA), and proprietary non-agency residential and reverse mortgages. FAM (prior to January 1, 2022 through FACo) also originates or acquires a variety of commercial mortgage loans made to owners and investors of single and multi-family residential rental properties, as well as government-insured agricultural loans made to farmers to fund their inputs and operating expenses for the upcoming growing season. Additionally, FAM originates or acquires secured and unsecured home improvement loans or receivables. The Company, through its Incenter holding company subsidiary, has operating service companies (the “operating service subsidiaries” and together with the operating lending subsidiaries, the “operating subsidiaries”) which provide lender services, title services, secondary markets advisory services, mortgage trade brokerage, appraisal, and capital management services to customers in the residential mortgage, student lending, and commercial lending industries. Incenter operates a foreign branch in the Philippines for fulfillment transactional support. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements comprise the financial statements of FoA and its controlled subsidiaries for the Successor three and six months ended June 30, 2022, three months ended June 30, 2021, and the financial statements of FoA Equity and its controlled subsidiaries for the Predecessor three months ended March 31, 2021. The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The accompanying financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of its financial condition as of June 30, 2022 and its results of operations and cash flows for the Successor three and six months ended June 30, 2022, three months ended June 30, 2021, and the Predecessor three months ended March 31, 2021. The Condensed Consolidated Statement of Financial Condition at December 31, 2021 was derived from audited financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the interim period are not necessarily indicative of the results that may be expected for any future period or for the full year. The condensed consolidated financial statements, including the significant accounting policies, should be read in conjunction with the consolidated financial statements and notes for the period ended December 31, 2021 within the Company’s Annual Report Form 10-K. There have not been any material changes to our critical accounting policies and estimates as disclosed in the Annual Report on Form 10-K. The significant accounting policies, together with the other notes that follow, are an integral part of the condensed consolidated financial statements. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates and assumptions due to factors such as changes in the economy, uncertainties due to the COVID-19 pandemic, interest rates, secondary market pricing, prepayment assumptions, home prices or discrete events affecting specific borrowers, and such differences could be material. Recently Adopted Accounting Guidance Standard Description Effective Date Effect on Condensed ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation(Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity—Classified Written Call Options The amendments in this Update affect all entities that issue freestanding written call options that are classified in equity. Specifically, the amendments affect those entities when a freestanding equity-classified written call option is modified or exchanged and remains equity classified after the modification or exchange. The amendments that relate to the recognition and measurement of EPS for certain modifications or exchanges of freestanding equity-classified written call options affect entities that present EPS in accordance with the guidance in Topic 260, Earnings Per Share. January 1, 2022 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements and related disclosures, as the Company does not currently issue freestanding written call options. Recently Issued Accounting Guidance, Not Yet Adopted as of June 30, 2022 Standard Description Date of Planned Adoption Effect on Condensed ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2021-01, Reference Rate Reform (Topic 848): Codification Clarification The amendments in this Update provide temporary optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter-Bank Offered Rate (“LIBOR”) or other interbank offered rates expected to be discontinued. In January 2021, FASB issued an Update which refines the scope of ASU Topic 848 and clarifies the guidance issued to facilitate the effects of reference rate reform on financial reporting. The amendment permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements and calculating price alignment interest in connection with reference rate reform activities. In April 2022, FASB released a proposed ASU that would amend the guidance on reference rate reform in ASC Topic 848 and ASC 815. Specifically, the proposal would defer the effective date of the guidance’s sunset date provision to December 31, 2024 (originally December 31, 2022), thereby extending the period over which entities can apply the guidance in ASU 2020-04,8 which provides “optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.” In addition, the proposal would amend the definition of the secured overnight financing rate (“SOFR”), as used in ASU 2018-16,9 to “include other versions of SOFR, such as SOFR term, as a benchmark interest rate under Topic 815.” TBD This ASU is effective from March 12, 2020 through December 31, 2022. The Company continues to monitor the impact associated with reference rate reform, and will apply the amendments in this update to account for contract modifications due to changes in reference rates once those occur. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. Standard Description Date of Planned Adoption Effect on Condensed ASU 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08 to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) Recognition of an acquired contract liability and (2) Payment terms and their effect on subsequent revenue recognized by the acquirer. The amendments in this ASU require that an entity (acquirer) recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in this ASU do not affect the accounting for other assets or liabilities that may arise from revenue contracts with customers in accordance with Topic 606, such as refund liabilities, or in a business combination, such as customer-related intangible assets and contract-based intangible assets. January 1, 2023 This ASU is effective for all business combinations occurring after January 1, 2023. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The amendments in this Update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments in this Update also require the following disclosures for equity securities subject to contractual sale restrictions: 1. The fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet 2. The nature and remaining duration of the restriction(s) 3. The circumstances that could cause a lapse in the restriction(s). January 1, 2024 This ASU is effective for fiscal years beginning after December 15, 2023. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. |
Variable Interest Entities and
Variable Interest Entities and Securitizations | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities and Securitizations | 3. Variable Interest Entities and Securitizations The Company determined that the special purpose entities (“SPEs”) created in connection with its securitizations are VIEs. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary, which is the entity that, through its variable interests has both the power to direct the activities that significantly impact the VIE’s economic performance and the obligations to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Consolidated VIEs FAR FAR securitizes certain of its interests in nonperforming reverse mortgages and non-agency one-to-four-family In February 2022, FAR executed its optional redemption of outstanding securitized notes related to outstanding nonperforming home equity conversion mortgage (“HECM”) securitizations. As part of the optional redemption, FAR paid off notes with an outstanding principal balance of million. The notes were paid off at par. As a result of the optional redemption, FAR is no longer required to consolidate this securitization trust and the outstanding loans with unpaid principal balance of million were included in loans held for investment, at fair value, in the Condensed Consolidated Statements of Financial Condition unless included in a subsequent securitization. FAM FAM (prior to January 1, 2022, through FACo) securitizes certain of its interests in fix & flip mortgages. The transactions provide debt security holders the ability to invest in a pool of loans secured by an investment in real estate. The transactions provide the Company with access to liquidity for the loans and ongoing management fees. The principal and interest on the outstanding debt securities are paid using the cash flows from the underlying loans, which serve as collateral for the debt. Servicing Securitized Loans In their capacity as servicer of the securitized loans, FAM (prior to January 1, 2022, through FACo) and FAR retain the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance. FAM (prior to January 1, 2022, through FACo) and FAR also retain certain beneficial interests in these trusts which provide exposure to potential gains and losses based on the performance of the trust. As FAM (prior to January 1, 2022, through FACo) and FAR have both the power to direct the activities that significantly impact the VIE’s economic performance and the obligations to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the definition of primary beneficiary is met and the trusts are consolidated by the Company through its FAM (prior to January 1, 2022, through Certain obligations may arise from the agreements associated with transfers of loans. Under these agreements, the Company may be obligated to repurchase the loans, or otherwise indemnify or reimburse the investor for losses incurred due to material breach of contractual representations and warranties. There were no charge-offs associated with these transferred mortgage loans related to the standard securitization representations and warranties obligations for the Successor three and six months ended June 30, 2022, three months ended June 30, 2021 or the Predecessor period three months ended March 31, 2021. The following table presents the assets and liabilities of the Company’s consolidated VIEs, which are included in the Condensed Consolidated Statements of Financial Condition, and excludes intercompany balances, except for retained bonds and beneficial interests (in thousands): June 30, 2022 December 31, 2021 ASSETS Restricted cash $ 342,575 $ 311,652 Loans held for investment, subject to nonrecourse debt, at fair value 6,433,638 6,099,607 Other assets, net 68,239 67,593 TOTAL ASSETS $ 6,844,452 $ 6,478,852 LIABILITIES Nonrecourse debt, at fair value $ 6,717,649 $ 6,088,298 Payables and other liabilities 598 428 TOTAL VIE LIABILITIES 6,718,247 6,088,726 Retained bonds and beneficial interests eliminated in consolidation (270,412 ) (231,229 ) TOTAL CONSOLIDATED LIABILITIES $ 6,447,835 $ 5,857,497 Unconsolidated VIEs FAM Hundred Acre Wood Trust (“HAWT”) FAM securitizes certain of its interests in agency-eligible residential mortgage loans. The transactions provide investors with the ability to invest in a pool of mortgage loans secured by one-to-four-family In 2021, FAM executed certain FAM’s continuing involvement with and exposure to loss from the VIE includes the carrying value of the retained bond, the servicing asset recognized in the sale of the loans, servicing advances in the role as servicer, and obligations under representations and warranties contained in the loan sale agreements. Creditors of the VIE have no recourse to FAM’s assets or general credit. The underlying performance of the mortgage loans transferred has a direct impact on the fair values and cash flows of the beneficial interests held and the servicing asset recognized. The following table presents a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor and that were not consolidated by the Company (in thousands): June 30, 2022 December 31, 2021 Unconsolidated securitization trusts: Total collateral balances— Unpaid Principal Balance (“ ”) $ 1,031,095 $ 1,085,340 Total certificate balances $ 1,031,095 $ 1,085,340 As of June 30, 2022 and December 31, 2021, there were $1.1 million and $0.4 million, respectively, of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 90 days or more past due. Cavatica Asset Participation Trust (“CAPT”) In December 2021, CAPT was vertical interest in the trust. The Company determined that the securitization structure meets the definition of a VIE and concluded that the Company does not hold a significant variable interest in the securitizations and the Company does not have the power to direct the activities that most significantly affect the economic performance of the VIEs. However, the transfer of the loans to the VIEs was determined not to be a sale. As such, the Company continues to recognize and consolidate the loans and the related nonrecourse liability, with the retained bonds being eliminated against the nonrecourse liability in consolidation. The Company’s continuing involvement with and exposure to loss from the VIE includes the carrying value of the retained bond, the retained loans, debt servicing of the related nonrecourse liability, servicing advances in the role as servicer, and obligations under representations and warranties contained in the loan sale agreements. Creditors of the VIE have no recourse to the Company’s assets or general credit. The underlying performance of the mortgage loans held has a direct impact on the fair values and cash flows of the beneficial interests held. As of June 30, 2022, the consolidated balance of the agricultural loans transferred to the VIE and the related nonrecourse liability had a fair value of $167.1 million and $162.5 million, respectively. As of December 31, 2021, the consolidated balance of the agricultural loans transferred to the VIE and the related nonrecourse liability had a fair value of $118.6 million and $111.7 million, respectively. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 4. Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based on the assumptions market participants would use when pricing an asset or liability and follows a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices available in active markets (i.e., observable inputs) and the lowest priority to data lacking transparency (i.e., unobservable inputs). In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. All aspects of nonperformance risk, including the Company’s own credit standing, are considered when measuring the fair value of a liability. Following is a description of the three levels of the fair value hierarchy: Level 1 Inputs: Quoted prices for identical instruments in active markets. Level 2 Inputs: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs: Instruments with unobservable inputs that are significant to the fair value measurement. The Company classifies assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy for the Successor three and six months ended June 30, 2022, three months ended June 30, 2021, or for the Predecessor three months ended March 31, 2021. Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and the details of the valuation models, key inputs to those models and significant assumptions utilized. Within the assumption tables presented, not meaningful (“NM”) refers to a range of inputs that is too broad to provide meaningful information to the user or to an input that has no range and consists of a single data point. Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value HECM loans securitized into Ginnie Mae HMBS are not actively traded in open markets with readily observable market prices. The Company values HECM loans securitized into Ginnie Mae HMBS utilizing a present value methodology that discounts estimated projected cash flows over the life of the loan portfolio using prepayment, loss frequency and severity, borrower mortality, borrower draw, and discount rate assumptions management believes a market participant would use in estimating fair value. Changes to any of these assumptions could result in significantly different valuation results. The Company classifies reverse mortgage loans held for investment as Level 3 assets within the GAAP hierarchy, as they are dependent on unobservable inputs. The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of loans held for investment, subject to HMBS related obligations, for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 23.0 % NM 20.8 % Loss frequency NM 3.9 % NM 4.5 % Loss severity 2.4% - 6.9 % 2.6 % 3.1% - 7.7 % 3.3 % Discount rate NM 4.2 % NM 2.4 % Average draw rate NM 1.2 % NM 1.1 % The Company aggregates loan portfolios based upon the underlying securitization trust and values these loans using these aggregated pools. The range of inputs provided above are based upon the range of inputs utilized for each securitization trust. Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value Reverse Mortgage Loans Reverse mortgage loans held for investment, subject to nonrecourse debt, at fair value, FHA-insured The Company values nonperforming securitized HECM buyouts, performing securitized HECM buyouts, and securitized non-agency The Company aggregates loan portfolios based upon the underlying securitization trust and values these loans using these aggregated pools. The range of inputs provided are based upon the range of inputs utilized for each securitization trust. HECM Buyouts—Securitized (Nonperforming) The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of nonperforming securitized HECM buyouts for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 39.7 % NM 41.2 % Loss frequency 23.1% - 100.0 % 51.4 % 25.0% - 100 % 59.5 % Loss severity 2.4% - % 3.7 % 3.1% - 7.7 % 4.3 % Discount rate NM 7.7 % NM 4.1 % HECM Buyouts—Securitized (Performing) The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of performing securitized HECM buyouts for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 9.0 NM 9.0 Conditional repayment rate NM 13.4 % NM 13.3 % Loss severity 2.4% - 6.9 % 5.7 % 3.1% - 7.7 % 7.7 % Discount rate NM 6.8 % NM 3.7 % Non-Agency The following table presents the significant unobservable assumptions used in the fair value measurements of securitized non-agency June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 9.3 NM 7.5 Loan to value 0.1% - 73.0 % 42.9 % 0.1% - 64.7 % 43.4 % Conditional repayment rate NM 14.7 % NM 18.6 % Loss severity NM 10.0 % NM 10.0 % Home price appreciation -10.1% - 11.0 % 4.9 % -4.6% - 14 % 4.7 % Discount rate NM 6.2 % NM 3.6 % Commercial Mortgage Loans Fix & Flip—Securitized The securitized Fix & Flip loans are short-term loans for individual real estate investors, with terms ranging from 9 - 24 months. This product is valued using a discounted cash flow (“DCF”) model. The Company classifies these mortgage loans as Level 3 assets within the GAAP hierarchy. The Company utilized the following weighted average assumptions in estimating the fair value of securitized Fix & Flip mortgage loans for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (SMM) NM 10.6 % NM 14.1 % Discount rate NM 8.9 % NM 5.7 % Loss frequency NM 0.5 % 0.3% - 69.0 % 0.6 % The Company aggregates loan portfolios based upon the underlying securitization trust and values these loans using these aggregated pools. The range of inputs provided above are based upon the range of inputs utilized for each securitization trust. Loans Held for Investment, at Fair Value Reverse Mortgage Loans Reverse mortgage loans held for investment, at fair value, consists of originated or purchased HECM and non-agency Originated or purchased HECM loans held for investment are valued predominantly by utilizing forward HMBS prices for similar pool characteristics and based on observable market data. These amounts are further adjusted to include future cash flows that would be earned for servicing the HECM loan over the life of the asset. Unsecuritized tails consists of performing and nonperforming repurchased loans. The fair value of performing unsecuritized tails are valued at current pricing levels for similar Ginnie Mae HMBS. The fair value of nonperforming unsecuritized tails is based on expected claim proceeds from the U.S Department of Housing and Urban Development (“HUD”) upon assignment of the loans. The fair value of repurchased loans is based on expected cash proceeds of the liquidation of the underlying properties and expected claim proceeds from HUD. The primary assumptions utilized in valuing nonperforming repurchased loans include loss frequency and loss severity. Termination proceeds are adjusted for expected loss frequencies and severities to arrive at net proceeds that will be provided upon final resolution, including assignments to FHA. Historical experience is utilized to estimate the loss rates resulting from scenarios where FHA insurance proceeds are not expected to cover all principal and interest outstanding and, as servicer, the Company is exposed to losses upon resolution of the loan. The Company classifies reverse mortgage loans held for investment, at fair value as Level 3 assets within the GAAP hierarchy. Inventory Buyouts The Company values Inventory Buyouts utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio. The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of Inventory Buyouts classified as loans held for investment, at fair value for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 41.2 % NM 43.2 % Loss frequency 23.1% - 100.0 % 47.4 % NM 59.4 % Loss severity 2.4% - 6.9 % 4.7 % 3.1% - 7.7 % 3.8 % Discount rate NM 7.7 % NM 4.1 % Non-Agency The fair value of non-agency The Company values non-agency The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of non-agency reverse mortgage loans classified as loans held for investment, at fair value for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 10.8 NM 9.2 Loan to value 2.9% - 68.9 % 47.3 % 0.2% - 68.7 % 47.8 % Conditional repayment rate NM 13.1 % NM 14.8 % Loss severity NM 10.0 % NM 10.0 % Home price appreciation -10.1% - 11.0 % 4.6 % -4.6% - 14.0 % 4.4 % Discount rate NM 6.2 % NM 3.6 % Commercial Mortgage Loans Fix & Flip The Fix & Flip loans are short-term loans for individual real estate investors, with terms ranging from 9 - 24 months. This product is valued using a DCF model. The Company classifies these mortgage loans as Level 3 assets within the GAAP hierarchy. The Company utilized the following weighted average assumptions in estimating the fair value of Fix & Flip loans for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (SMM) NM 11.6 % NM 11.9 % Discount rate 8.9% - 13.5 % 9.0 % 5.7% - 10.0 % 5.9 % Loss frequency NM 0.3 % NM 0.4 % Agricultural Loans The agricultural loans are government-insured loans made to farmers to fund their inputs and operating expenses for the upcoming growing season with terms ranging from 7 - 17 months. The product is valued using a DCF model. The Company classifies these loans as Level 3 assets within the GAAP hierarchy. The Company utilized the following assumptions in estimating the fair value of agricultural loans for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Discount rate NM 8.1 % NM 4.8 % Prepayment rate (SMM) NM 23.1 % 9.0% - 100.0 % 22.1 % Default rate (CDR) 0.0% - 1.0 % 1.0 % 0.0% - 0.7 % 0.9 % Loans Held for Sale, at Fair Value Residential and Commercial Mortgage Loans Mortgage loans held for sale include residential and commercial mortgage loans originated by the Company and held until sold to secondary market investors. Residential Mortgage Loans The Company originates or purchases mortgage loans in the U.S. that it intends to sell to FNMA, FHLMC, and Ginnie Mae (collectively “the Agencies”). Additionally, the Company originates or purchases mortgage loans in the U.S. that it intends to sell into the secondary markets via whole loan sales. Mortgage loans held for sale are typically pooled and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate, and credit quality. In addition, the Company may originate loans that do not meet specific underwriting criteria and are not eligible to be sold to the Agencies. Two valuation methodologies are used to determine the fair value of mortgage loans held for sale. The methodology used depends on the exit market as described below: Loans valued using observable market prices for identical or similar assets This will also include all non-agency loans where recently negotiated market prices for the loan pool exist with a counterparty (which approximates fair value), or quoted market prices for similar loans are available. The Company classifies these valuations as Level 2 assets within the GAAP hierarchy. During periods of illiquidity of the mortgage marketplace, it may be necessary to look for alternative sources of value, including the whole loan purchase market for similar loans, and place more reliance on the valuations using internal models. Due to limited sales activity and periodically unobservable prices in certain of the Company’s markets, certain mortgage loans held for sale portfolios may transfer from Level 2 to Level 3 in future periods. Loans valued using internal models – Commercial Mortgage Loans The Company primarily originates two separate commercial loan products that it classifies as held for sale: Single Rental Loan (“SRL”) and Portfolio Lending. SRL The SRL product is designed for small/individual real estate investors looking to purchase and then rent out a single property. This product is valued using a DCF model. The Company classifies these mortgage loans as Level 3 assets within the GAAP hierarchy. The Company utilized the following weighted average assumptions in estimating the fair value of SRL mortgage loans held for sale for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (CPR) 18.1% - 25.0 % 18.6 % 1.0% - 17.1 % 14.2 % Discount rate NM 6.5 % NM 3.3 % Default rate (CDR) NM 1.0 % 1.0% - 57.2 % 2.2 % Portfolio Lending The Portfolio Lending product is designed for larger investors with multiple properties. Specifically, these loans are useful for consolidating multiple rental property mortgages into a single loan. These loans have fixed coupons, with 5 and 10-year 30-year The Company utilized the following weighted average assumptions in estimating the fair value of Portfolio Lending mortgage loans held for sale for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (CPR) 0.0% - 22.1 % 14.5 % 0.0% - 14.5 % 8.7 % Discount rate NM 6.8 % NM 3.9 % Default rate (CDR) NM 1.0 % 1.0% - 54.0 % 3.2 % Fix & Flip The Fix & Flip loans are short-term loans for individual real estate investors, with terms ranging from 9-24 MSRs As of June 30, 2022 and December 31, 2021, the Company valued MSRs internally. The significant assumptions utilized to determine fair value are projected prepayments using the Public Securities Association Standard Prepayment Model, discount rates, and projected servicing costs that vary based on the loan type and delinquency. The Company classifies these valuations as Level 3 assets within the GAAP hierarchy since they are dependent on unobservable inputs. Fair value is derived through a DCF analysis and calculated using a computer pricing model. This computer valuation is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions (Prepayment speed assumptions (“PSA”), discount rate, etc.). The assumptions taken into account by the pricing model are those which many active purchasers of servicing employ in their evaluations of portfolios for sale in the secondary market. The unique characteristics of the secondary servicing market often dictate adjustments to parameters over short periods of time. Fair value is defined as the estimated price at which the servicing rights would change hands in the marketplace between a willing buyer and seller. The valuation assumes that neither party would be under any compulsion to buy or sell and that each has reasonably complete and accurate knowledge of all relevant aspects of the offered servicing. The fair values represented in this analysis have been derived under the assumptions that sufficient time would be available to market the portfolio. The following tables summarize certain information regarding the servicing portfolio of retained MSRs for the periods indicated: June 30, 2022 December 31, 2021 Capitalization servicing rate 1.2 % 1.1 % Capitalization servicing multiple 4.9 4.4 Weighted average servicing fee (in basis points) 25 25 The Company utilized the following weighted average assumptions in estimating the fair value of MSRs: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 0.1% - 12.3 % 6.8 % 0.0% - 12.8 % 8.3 % Discount rate NM 9.6 % NM 8.5 % Weighted average delinquency rate 0.8% - 4.6 % 1.4 % 0.8% - 14.3 % 1.3 % The following table summarizes the estimated change in the fair value of MSRs from adverse changes in the significant assumptions (in thousands): June 30, 2022 Weighted Average Prepayment Speed Discount Weighted Average Delinquency Rate Impact on fair value of 10% adverse change $ (8,958 ) $ (15,042 ) $ (467 ) Impact on fair value of 20% adverse change $ (17,439 ) $ (28,909 ) $ (934 ) These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Investments, at Fair Value The Company invests in the equity of other companies in the form of common stock, preferred stock, or other in-substance equity interests. To the extent market prices are not observable, the Company engages third party valuation experts to assist in determining the fair value of these investments. The values are determined utilizing a market approach which estimates fair value based on what other participants in the market have paid for reasonably similar assets that have been sold within a reasonable period from the valuation date. The Company classifies these valuations as Level 3 in the fair value disclosures. Derivative Assets and Liabilities Some of the derivatives held by the Company are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, the Company utilizes the exchange price or dealer market price for the particular derivative contract, therefore, these contracts are classified as Level 1 in the fair value hierarchy. The Company executes derivative contracts, including forward MBS commitments, To Be Announced Securities (“TBAs”), interest rate swaps, futures contracts, and loan purchase commitments (“LPCs”) as part of its overall risk management strategy related to its mortgage, reverse mortgage and commercial loan portfolios. The value of the LPCs is estimated using current market prices for HMBS and are considered Level 2 in the fair value hierarchy. TBAs are valued based on forward dealer marks from the Company’s approved counterparties and are considered Level 2 in the fair value hierarchy. The value of interest rate swaps and futures contracts is based on the exchange price or dealer market prices. The Company classifies interest rate swaps as Level 2 in the fair value hierarchy. The Company classifies futures contracts as Level 1 in the fair value hierarchy. The value of the forward MBS is based on forward prices with dealers in such securities or internally-developed third party models utilizing observable market inputs. The Company classifies forward MBS as Level 2 in the fair value hierarchy. In addition, the Company enters into Interest Rate Lock Commitments (“IRLCs”) with prospective borrowers. Commitments to fund residential mortgage loans with potential borrowers are a binding agreement to lend funds at a specified interest rate within a specified period of time. The fair value of IRLCs is derived from the fair value of similar mortgage loans or bonds, which is based on observable market data. Changes to the fair value of IRLCs are recognized based on changes in interest rates, changes in the probability that the commitment will be exercised (pull through factor), and the passage of time. The expected net future cash flows related to the associated servicing of the loan are included in the fair value measurement of IRLCs. The Company adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. Given the unobservable nature of the pull through factor, IRLCs are classified as Level 3 in the fair value hierarchy. The pull through factor is considered to be a significant unobservable assumption. HMBS Related Obligations, at Fair Value The HMBS related obligation valuation considers the obligation to pass FHA insured cash flows through to the beneficial interest holders (repayment of secured borrowing) of the HMBS securities and the servicer and issuer obligations of the Company. The valuation of the obligation to repay the secured borrowing is estimated using Level 3 unobservable market inputs. The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The estimated fair value of the HMBS related obligations also includes the consideration required by a market participant to transfer the HECM and HMBS servicing obligations, including exposure resulting from shortfalls in FHA insurance proceeds. The Company’s valuation considers assumptions that it believes a market participant would consider in valuing the liability, including, but not limited to, assumptions for repayment, costs to transfer servicing obligations, shortfalls in FHA insurance proceeds, and discount rates. The significant unobservable inputs used in the measurement include weighted average remaining life, borrower repayment rates, and discount rates. The following table presents the weighted average significant unobservable inputs used in the fair value measurement of HMBS related obligations for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 23.1 % NM 20.8 % Discount rate NM 4.1 % NM 2.3 % Nonrecourse Debt, at Fair Value Reverse Mortgage Loans Outstanding notes issued that are securitized by nonrecourse debt are paid using the cash flows from the underlying reverse mortgage loans, which serve as collateral for the debt. The fair value of nonrecourse debt is estimated using Level 3 unobservable market inputs. The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The significant unobservable inputs used in the measurement include borrower repayment rates and discount rates. The Company’s valuation considers assumptions that it believes a market participant would consider in valuing the liability, including, but not limited to, assumptions for prepayment and discount rates. The following table presents the weighted average significant unobservable assumptions used in the fair value measurements of nonrecourse debt for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Performing/Nonperforming HECM securitizations Weighted average remaining life (in years) 0.3 - 0.6 0.5 0.2 - 0.8 0.5 Conditional repayment rate 20.5% - 36.2 % 26.3 % 30.8% - 54.4 % 43.5 % Discount rate NM 6.3 % NM 2.3 % Securitized Non-Agency Weighted average remaining life (in years) 0.6 - 10.5 4.0 1.0 - 2.3 1.6 Conditional repayment rate 7.6% - 37.4 % 17.2 % 18.4% - 35.9 % 28.2 % Discount rate NM 5.9 % NM 2.2 % Commercial Mortgage Loans Outstanding nonrecourse notes issued that are securitized by loans held for investment, subject to nonrecourse debt, are paid using the cash flows from the underlying mortgage loans. The fair value of nonrecourse debt is estimated using Level 3 unobservable market inputs. The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The Company’s valuation considers assumptions that it believes a market participant would consider in valuing the liability, including, but not limited to, assumptions for prepayment and discount rates. The Company estimates prepayment speeds giving consideration that the Company may in the future transfer additional loans to the trust, subject to the availability of funds provided for within the trust. The following table presents the significant unobservable assumptions used in the fair value measurements of nonrecourse debt for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in months) NM 5.3 NM 4.0 Weighted average prepayment speed (SMM) NM 13.9 % NM 14.0 % Discount rate NM 6.3 % NM 3.1 % Deferred Purchase Price Liabilities Deferred purchase price liabilities are measured using a present value of future payments which considers various assumptions, including future loan origination volumes, projected earnings and discount rates. The significant unobservable assumption is the discount rate. As of June 30, 2022 and December 31, 2021, the Company utilized a discount rate of 35% to value the deferred purchase price liabilities. As this value is largely based on unobservable inputs, the Company classifies this liability as Level 3 in the fair value hierarchy. Tax Receivable Agreements (“TRA”) Obligation The fair value of the TRA obligation resulting from the exchanges at the Business Combination Closing Date is derived through the use of a DCF model. The significant unobservable assumptions used in the DCF include the ability to utilize tax attributes based on current tax forecasts, a constant U.S. federal income tax rate, an assumed weighted average state and local income tax rate, and a 20.4% and , respectively, Nonrecourse MSR Financing Liability The Company has sold to certain third parties the right to receive all excess servicing and ancillary fees related to identified MSRs in exchange for an upfront payment equal to the entire purchase price of the identified MSRs. The Company has elected to account for the servicing liability using the fair value option. Consistent with the underlying MSRs, fair value is derived through a DCF analysis and calculated using a computer pricing model. This computer valuation is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions (PSAs, etc.). The assumptions taken into account by the pricing model are those which many active purchasers of servicing rights employ in their evaluations of portfolios for sale in the secondary market. The unique characteristics of the secondary servicing market often dictate adjustments to parameters over short periods of time. Subjective factors are also considered in the derivation of fair values, including levels of supply and demand for servicing, interest rate trends, and perception of risk not incorporated into prepayment assumptions. The Company classifies the valuations of the nonrecourse MSR financing liability as Level 3 in the fair value disclosures. The Company utilized the following weighted average assumptions in estimating the fair value of the outstanding nonrecourse MSR financing liability: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 1.0% - 7.2 % 5.6 % 2.0% - 11.0 % 7.7 % Discount rate 9.6% - 11.6 % 9.7 % 8.1% - 10.1 % 9.1 % Weighted average delinquency rate NM 1.3 % NM 1.3 % Retained Bonds, at Fair Value The retained bonds, at fair value, represents the U.S. Risk Retention Certificates, a 5% eligible vertical interest in the Company’s unconsolidated VIEs: HAWT 2021-INV1, HAWT 2021-INV2, and HAWT 2021-INV3. The beneficial interests retained consist of an interest in each class of securities issued by the Trust. Because of the nature of the valuation inputs and due to the lack of observable market prices or data the Company classifies retained bonds as Level 3 assets within the GAAP hierarchy. Quarterly, management obtains third party valuations to assess the reasonableness of the fair value calculations provided by the internal valuation model. The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of retained bonds for the period indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) 2.5 - 24.5 5.0 2.6 - 25.0 5.1 Discount rate -10.0% - 11.7 % 5.7 % 1.9% - 8.2 % 2.7 % Warrants The Company has determined that the FoA warrants are subject to treatment as a liability. The warrants issued are exercisable for shares of Class A Common Stock of FoA at an exercise price of $11.50 per share. The warrants are publicly traded and are valued based on the closing market price of the applicable date of the Condensed Consolidated Statements of Financial Condition. Accordingly, the warrants are classified as Level 1 financial instruments. Fair Value of Assets and Liabilities The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis (in thousands): June 30, 2022 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 10,882,441 $ — $ — $ 10,882,441 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 6,149,706 — — 6,149,706 Fix & flip mortgage loans 451,056 — — 451,056 Loans held for investment: Reverse mortgage loans 949,551 — — 949,551 Fix & flip mortgage loans 77,544 — — 77,544 Agricultural loans 31,315 — — 31,315 Loans held for sale: Residential mortgage loans 996,345 — 959,472 36,873 SRL 195,615 — — 195,615 Portfolio 37,634 — — 37,634 MSRs 359,006 — — 359,006 Derivative assets: IRLCs and LPCs 14,126 — 129 13,997 Forward MBS and TBAs 4,258 — 4,258 — Interest rate swaps and futures contracts 36,802 36,802 — — Other assets: Investments 1,000 — — 1,000 Retained bonds 46,593 — — 46,593 Total assets $ 20,232,992 $ 36,802 $ 963,859 $ 19,232,331 Liabilities HMBS related obligations $ 10,745,879 $ — $ — $ 10,745,879 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 6,447,238 — — 6,447,238 Nonrecourse commercial loan financing liability 162,464 — — 162,464 Nonrecourse MSR financing liability 142,382 — — 142,382 Deferred purchase price liabilities: Deferred purchase price liabilities 4,852 — — 4,852 TRA obligation 13,925 — — 13,925 Derivative liabilities: Forward MBS and TBAs 7,530 — 7,530 — Interest rate swaps and futures contracts 2,183 2,183 — — Warrant liability 2,301 2,301 — — Total liabilities $ 17,528,754 $ 4,484 $ 7,530 $ 17,516,740 December 31, 2021 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 10,556,054 $ — $ — $ 10,556,054 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 5,823,301 — — 5,823,301 Fix & flip mortgage loans 394,893 — — 394,893 Loans held for investment: Reverse mortgage loans 940,604 — — 940,604 Fix & flip mortgage loans 62,933 — — 62,933 Agricultural loans 27,791 — — 27,791 Loans held for sale: Residential mortgage loans 1,902,952 — 1,885,627 17,325 SRL 98,852 — — 98,852 Portfolio 50,574 — — 50,574 MSRs 427,942 — — 427,942 Derivative assets: IRLCs and LPCs 24,786 — 1,564 23,222 Forward MBS and |
Reverse Mortgage Portfolio Comp
Reverse Mortgage Portfolio Composition | 6 Months Ended |
Jun. 30, 2022 | |
Reverse Mortgages Portfolio Composition [Abstract] | |
Reverse Mortgage Portfolio Composition | 5. Reverse Mortgage Portfolio Composition The table below summarizes the composition and the remaining UPB (in thousands) of the reverse mortgage loan portfolio serviced by the Company: June 30, 2022 December 31, 2021 Reverse mortgage loans: Reverse mortgage loans held for investment, subject to HMBS related obligations $ 10,468,472 $ 9,849,835 Reverse mortgage loans held for investment: Non-agency 534,866 432,144 Loans not securitized (1) 230,346 266,723 Unpoolable loans (2) 97,939 104,551 Unpoolable tails 8,520 12,008 Total reverse mortgage loans held for investment 871,671 815,426 June 30, 2022 December 31, 2021 Reverse mortgage loans held for investment, subject to nonrecourse debt: Performing HECM buyouts 291,633 289,089 Nonperforming HECM buyouts 603,189 590,729 Non-agency 5,158,345 4,285,661 Total reverse mortgage loans held for investment, subject to nonrecourse debt 6,053,167 5,165,479 Total owned reverse mortgage portfolio 17,393,310 15,830,740 Loans reclassified as government guaranteed receivable 63,402 48,625 Loans serviced for others 13,569 17,840 Total serviced reverse mortgage loan portfolio $ 17,470,281 $ 15,897,205 (1) Loans not securitized represent primarily newly originated loans . (2) Unpoolable loans represent primarily loans that have reached 98% of their MCA The table below summarizes the reverse mortgage portfolio owned by the Company by product type (in thousands): June 30, 2022 December 31, 2021 Fixed rate loans $ 5,891,343 $ 5,384,865 Adjustable rate loans 11,501,967 10,445,875 Total owned reverse mortgage portfolio $ 17,393,310 $ 15,830,740 As of June 30, 2022 and December 31, 2021, there were $546.9 million and $599.1 million, respectively, of foreclosure proceedings in process, which are included in loans held for investment, at fair value, on the Condensed Consolidated Statements of Financial Condition. |
Loans Held for Investment, Subj
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Reverse Mortgage Loans Held For Investment Subject To HMBS Related Obligations At Fair Value [Abstract] | |
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value | 6. Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value Loans held for investment, subject to HMBS related obligations, at fair value, consisted of the following for the dates indicated (in thousands): June 30, 2022 December 31, 2021 Loans held for investment, subject to HMBS related obligations—UPB $ 10,468,472 $ 9,849,835 Fair value adjustments 413,969 706,219 Total loans held for investment, subject to HMBS related obligations, at fair value $ 10,882,441 $ 10,556,054 |
Loans Held for Investment, Su_2
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Loans Held For Investment Subject To Nonrecourse Debt At Fair Value [Abstract] | |
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value | 7. Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value Loans held for investment, subject to nonrecourse debt, at fair value, consisted of the following for the dates indicated (in thousands): June 30, 2022 December 31, 2021 Loans held for investment, subject to nonrecourse debt—UPB: Reverse mortgage loans $ 6,053,167 $ 5,165,479 Commercial mortgage loans 451,981 388,788 Fair value adjustments 95,614 663,927 Total loans held for investment, subject to nonrecourse debt, at fair value $ 6,600,762 $ 6,218,194 The table below shows the total amount of loans held for investment, subject to nonrecourse debt, that were greater than 90 days past due and on non-accrual status (in thousands): June 30, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual Fair value: Commercial mortgage loans $ 17,998 $ 26,081 Total fair value 17,998 26,081 Aggregate UPB: Commercial mortgage loans 18,442 26,472 Total aggregate UPB 18,442 26,472 Difference $ (444 ) $ (391 ) |
Loans Held for Investment, at F
Loans Held for Investment, at Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Loans Held for Investment At Fair Value [Abstract] | |
Loans Held for Investment, at Fair Value | 8. Loans Held for Investment, at Fair Value Loans held for investment, at fair value, consisted of the following for the dates indicated (in thousands June 30, 2022 December 31, 2021 Loans held for investment—UPB: Reverse mortgage loans $ 871,671 $ 815,426 Commercial mortgage loans 108,322 89,267 Fair value adjustments 78,417 126,635 Total loans held for investment, at fair value $ 1,058,410 $ 1,031,328 As of June 30, 2022 and December 31, 2021, there were $2.5 million and $2.3 million, respectively, of commercial loans that were greater than 90 days past due. As of June 30, 2022 and December 31, 2021, there were $857.8 million and $810.6 million, respectively, in loans held for investment, at fair value, pledged as collateral for financing lines of credit. |
Loans Held for Sale, at Fair Va
Loans Held for Sale, at Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Loans Held for Sale At Fair Value [Abstract] | |
Loans Held for Sale, at Fair Value | 9. Loans Held for Sale, at Fair Value Loans held for sale, at fair value, consisted of the following for the dates indicated (in thousands): June 30, 2022 December 31, 2021 Loans held for sale—UPB: Residential mortgage and home improvement loans $ 988,361 $ 1,859,788 Commercial mortgage loans 239,108 145,463 Fair value adjustments 2,125 47,127 Total loans held for sale, at fair value $ 1,229,594 $ 2,052,378 The table below shows the total amount of loans held for sale that were greater than 90 days past due and on non-accrual June 30, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual Fair value: Residential mortgage and home improvement loans $ 3,386 $ 3,195 Commercial mortgage loans 1,365 3,163 Total fair value 4,751 6,358 Aggregate UPB: Residential mortgage loans 3,771 3,753 Commercial mortgage loans 1,361 3,323 Total aggregate UPB 5,132 7,076 Difference $ (381 ) $ (718 ) The Company originates or purchases and sells loans in the secondary mortgage market without recourse for credit losses. However, the Company at times maintains continuing involvement with the loans in the form of servicing arrangements and the liability under representations and warranties it makes to purchasers and insurers of the loans. The table below shows a reconciliation of the changes in loans held for sale for the respective periods presented below (in thousands): For the three For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ 1,709,357 $ 2,052,378 $ 2,140,361 $ 2,222,811 Originations/purchases/repurchases 4,598,116 10,087,003 7,109,958 8,569,575 Proceeds from sales (5,139,542 ) (11,012,321 ) (7,405,296 ) (8,878,131 ) Loans acquired through business combinations — — — 35,226 Net transfers from loans held for investment (2,905 ) — 17,494 — Gain on loans held for sale, net 67,482 112,354 194,228 188,564 Net fair value gain (loss) on loans held for sale (2,914 ) (9,820 ) 797 2,316 Ending balance $ 1,229,594 $ 1,229,594 $ 2,057,542 $ 2,140,361 As of June 30, 2022 and December 31, 2021, there were $1.1 billion billion |
Mortgage Servicing Rights, at F
Mortgage Servicing Rights, at Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights, at Fair Value | 10. Mortgage Servicing Rights, at Fair Value The servicing portfolio associated with capitalized servicing rights consists of the following (in thousands): June 30, 2022 December 31, 2021 Fannie Mae/Freddie Mac $ 27,446,915 $ 37,079,995 Ginnie Mae 995,944 1,109,962 Private investors 1,051,790 1,109,459 Total UPB $ 29,494,649 $ 39,299,416 Weighted average interest rate 3.32 % 3.03 % The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of the following (in thousands): For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning UPB $ 34,058,558 $ 39,299,416 $ 26,675,358 $ 22,269,362 Originated MSRs 3,375,623 7,632,904 5,139,859 6,312,227 Purchased MSRs — — 5,537 866,806 Sold MSRs (7,123,286 ) (15,492,020 ) — (1,090,267 ) Portfolio runoff (524,107 ) (1,329,775 ) (987,056 ) (1,488,977 ) Other (292,139 ) (615,876 ) (241,511 ) (193,793 ) Ending UPB $ 29,494,649 $ 29,494,649 $ 30,592,187 $ 26,675,358 The activity in the MSRs asset consisted of the following (in thousands): For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ 426,102 $ 427,942 $ 267,364 $ 180,684 Originations 41,218 94,662 50,049 65,964 Purchases — — 61 9,014 Sales (95,643 ) (203,295 ) — (8,647 ) Changes in fair value due to: Changes in market inputs or assumptions used in valuation model (2,570 ) 61,320 (16,051 ) 35,109 Changes in fair value due to portfolio runoff and other (10,101 ) (21,623 ) (10,485 ) (14,760 ) Ending balance $ 359,006 $ 359,006 $ 290,938 $ 267,364 The value of MSRs is driven by the net cash flows associated with servicing activities. The cash flows include contractually specified servicing fees, late fees, and other ancillary servicing revenue. The fees were $13.1 million, $27.4 million, and $13.7 million for the Successor three months ended June 30, 2022, six months ended June 30, 2022, and three months ended June 30, 2021, respectively; and million for the Predecessor three months ended March 31, 2021. These fees and chan ges in fair value of the MSRs are recorded within fee income on the Condensed Consolidated Statements of Operations (Unaudited). As of June 30, 2022 and December 31 , 2 million, respectively, in MSRs, at fair value, pledged as collateral for nonrecourse debt. The following table provides a summary of the loan servicing portfolio delinquencies as a percentage of the total number of loans and the total UPB of the portfolio: June 30, 2022 December 31, 2021 Number of Loans Unpaid Balance Number of Loans Unpaid Balance Portfolio delinquency 30 days 0.5 % 0.5 % 0.4 % 0.3 % 60 days 0.1 % 0.1 % 0.1 % 0.0 % 90 or more days 0.3 % 0.3 % 0.1 % 0.1 % Total 0.9 % 0.9 % 0.6 % 0.4 % Foreclosure/real estate owned 0.0 % 0.0 % 0.0 % 0.0 % |
Derivative and Risk Management
Derivative and Risk Management Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Risk Management Activities | 11. Derivative and Risk Management Activities The Company’s principal market exposure is to interest rate risk, specifically long-term U.S. Treasury and mortgage interest rates, due to their impact on mortgage-related assets and commitments. The Company is also subject to changes in short-term interest rates, such as LIBOR, due to their impact on certain variable rate asset-backed debt such as warehouse lines of credit. Various financial instruments are used to manage and reduce this risk, including forward delivery commitments on MBS or whole loans and interest rate swaps. The Company did not have any derivative instruments designated as hedging instruments or subject to master netting and collateral agreements as of June 30, 2022 and December 31, 2021. The following tables summarize the fair value and notional amount of derivative instruments (in thousands): June 30, 2022 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount IRLCs and LPCs $ 14,126 $ 1,315,810 $ — $ — Forward MBS and TBAs 4,258 696,000 7,530 694,500 Interest rate swaps and futures contracts 36,802 1,369,300 2,183 504,300 Total fair value and notional amount $ 55,186 $ 3,381,110 $ 9,713 $ 1,198,800 46 December 31, 2021 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount IRLCs and LPCs $ 24,786 $ 2,095,238 $ — $ — Forward MBS and TBAs 1,250 948,000 1,685 1,515,000 Interest rate swaps and futures contracts 22,834 11,977,300 24,993 12,193,100 Total fair value and notional amount $ 48,870 $ 15,020,538 $ 26,678 $ 13,708,100 The follow table details the gains/(losses) on derivative instruments (in thousands): For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Derivative activity Successor Predecessor IRLCs and LPCs $ 10,017 $ (10,660 ) $ (3,536 ) $ (49,557 ) Forward MBS and TBAs 94,350 210,967 (40,289 ) 113,331 Interest rate swaps and futures contracts 67,814 239,543 (37,383 ) 43,935 The Company is exposed to risk in the event of nonperformance by counterparties in their derivative contracts. In general, the Company manages such risk by evaluating the financial position and creditworthiness of counterparties, monitoring the amount of exposure and/or dispersing the risk among multiple counterparties. While the Company does not presently have master netting arrangements with its derivative counterparties, it does either maintain or deposit cash as margin collateral with its counterparties to the extent the relative value of its derivatives are above or below their initial strike price. The Company held collateral from its counterparties of $67.1 million as of June 30, 2022 and had provided collateral to its counterparties of $23.2 million as of December 31, 2021. Margin collateral is included in other assets, net, when in a receivable position or in payables and other liabilities when in a payable position in the Company’s Condensed Consolidated Statements of Financial Condition. |
HMBS Related Obligations, at Fa
HMBS Related Obligations, at Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Home Equity Conversion Mortgage Backed Security Related Obligations At Fair Value [Abstract] | |
HMBS Related Obligations, at Fair Value | 12. HMBS Related Obligations, at Fair Value HMBS related obligations, at fair value, consisted of the following (in thousands): June 30, 2022 December 31, 2021 Ginnie Mae loan pools—UPB $ 10,445,730 $ 9,849,835 Fair value adjustments 300,149 572,523 Total HMBS related obligations, at fair value $ 10,745,879 $ 10,422,358 Weighted average remaining life (in years) 4.1 4.6 Weighted average interest rate 3.3 % 2.5 % HMBS related obligations 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 Statements of Financial Condition as loans held for investment, subject to HMBS related obligations, at fair value, and recording the pooled HMBS as HMBS related obligations, at fair value. Monthly cash flows generated from the HECM loans are used to service the outstanding HMBS. The Company was servicing 1,941 and 1,849 Ginnie Mae loan pools at June 30, 2022 and December 31, 2021, respectively. |
Nonrecourse Debt, at Fair Value
Nonrecourse Debt, at Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Debt Instruments [Abstract] | |
Nonrecourse Debt, at Fair Value | 13. Nonrecourse Debt, at Fair Value Nonrecourse debt, at fair value, consisted of the following (in thousands): Issue Date Final Maturity Date Interest Rate Original Issue Amount June 30, 2022 December 31, 2021 Securitization of performing / nonperforming HECM loans July 2020 - July 2030 - 0.88% - $ 1,805,528 $ 929,541 $ 922,970 Securitization of non-agency May 2018 - May 2023 - 1.25% - 7,205,543 5,575,261 4,630,203 Securitization of Fix & Flip loans April 2021 November 2.10% - $ 268,511 268,511 268,511 Total consolidated VIE nonrecourse debt UPB 6,773,313 5,821,684 Nonrecourse MSR financing liability, at fair value 142,382 142,435 Nonrecourse commercial loan financing liability (1) 158,659 107,744 Fair value adjustments (322,270 ) 39,379 Total nonrecourse debt, at fair value $ 6,752,084 $ 6,111,242 (1) Nonrecourse commercial loan financing liability is comprised of the balance of the nonrecourse debt for the applicable period associated with the CAPT securitization. As the CAPT securitization was determined to be an unconsolidated VIE and failed sale treatment, the associated nonrecourse debt is accounted for by FoA and presented separately from the other nonrecourse debts. Refer to Note 3 - Variable Interest Entities and Securitizations for additional information. Future repayment of nonrecourse debt issued by securitization trusts is dependent on the receipt of cash flows from the corresponding encumbered loans receivable. As of June 30, 2022, estimated maturities for nonrecourse debt, at fair value, for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Estimated Maturities (1) 2022 $ 851,396 2023 2,925,814 2024 2,440,206 2025 714,556 Thereafter — Total payments on nonrecourse debt $ 6,931,972 (1) Nonrecourse MSR financing liability is excluded from this balance, because the timing of the payments of the nonrecourse MSR financing liability is dependent on the payments received on the underlying MSRs, and no contractual maturity date is applicable. |
Other Financing Lines of Credit
Other Financing Lines of Credit | 6 Months Ended |
Jun. 30, 2022 | |
Line of Credit Facility [Abstract] | |
Other Financing Lines of Credit | 14. Other Financing Lines of Credit The following summarizes the components of other financing lines of credit (in thousands) : Outstanding borrowings at Maturity Date Interest Rate Collateral Pledged Total (1) June 30, 2022 December 31, Mortgage Lines: August 2022 - June 2023 LIBOR / SOFR First Lien $ 2,875,000 $ 945,532 $ 1,802,348 March 2026 Ameribor + MSRs 150,000 120,209 138,524 August 2022 - September 2022 SOFR + Mortgage Related 40,821 40,821 55,666 Subtotal mortgage lines of credit $ 3,065,821 $ 1,106,562 $ 1,996,538 Reverse Lines: August 2022 - June 2023 LIBOR / SOFR First Lien $ 1,450,000 $ 773,871 $ 714,013 July 2022 - September 2022 Bond accrual Mortgage Related 330,000 293,345 297,893 September 2022 LIBOR + MSRs 90,000 42,325 78,952 May 2023 Prime + .50%; Unsecuritized 51,877 43,376 38,544 Subtotal reverse lines of credit $ 1,921,877 $ 1,152,917 $ 1,129,402 Commercial Lines: August 2022 LIBOR + Encumbered $ 75,000 $ 22,221 $ 25,127 April 2023 - January 2024 LIBOR / SOFR First Lien 407,500 272,690 167,159 August 2022 10% Second Lien 45,000 38,900 24,175 N/A LIBOR + Mortgage Related — — 5,041 Subtotal commercial lines of credit $ 527,500 $ 333,811 $ 221,502 Total other financing lines of credit $ 5,515,198 $ 2,593,290 $ 3,347,442 (1) Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions, and covenants of the respective agreements, including asset-eligibility requirements. Capacity amounts presented are as of June 30, 2022. As of June 30, 2022 and December 31, 2021, the weighted average outstanding interest rates on outstanding financing lines of credit of the Company were 3.03% and 2.75%, respectively. The Company’s financing arrangements and credit facilities contain various financial covenants, which primarily relate to required tangible net worth amounts, liquidity reserves, leverage ratios, and profitability. As of June 30, 2022, the Company was in compliance with its financial covenants related to required liquidity reserves. With respect to certain financial covenants related to required profitability, debt service coverage ratio and tangible net worth amounts, the Company obtained financial covenant waivers or amendments to such financial covenants effective as of June 30, 2022 in order to avoid breaching such financial covenants. The terms of the Company’s financing arrangements and credit facilities contain covenants, and the terms of the Company’s GSE/ seller servicer contracts contain requirements that may restrict the Company and its subsidiaries from paying distributions to its members. These restrictions include restrictions on paying distributions whenever the payment of such distributions would cause FoA or its subsidiaries to no longer be in compliance with any of its financial covenants or GSE requirements. Further, the Company is generally prohibited under Delaware law from making a distribution to a member to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of the Company (with certain exceptions) exceed the fair value of its assets. Subsidiaries of the Company are generally subject to similar legal limitations on their ability to make distributions to FoA. As of June 30, 2022, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios): Financial Covenants Requirement June 30, 2022 Maximum Allowable (1) FAM Adjusted Tangible Net Worth (2) $ 225,000 $ 227,279 $ 2,279 Liquidity 55,000 60,080 5,080 Leverage Ratio 13:1 8.7:1 75,388 Material Decline in Lender Adjusted Net Worth: Lender Adjusted Tangible Net Worth (Quarterly requirement) (3 ) $ 225,805 $ 227,278 $ 1,473 Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly (3) 128,988 227,278 98,290 FAR Adjusted Tangible Net Worth (2) $ 300,000 $ 361,029 $ 61,029 Liquidity 64,423 122,674 58,251 Leverage Ratio 6:1 4.2:1 106,461 (1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary. (2) This amount is based on the most restrictive financing line of credit covenant. (3) This amount is the covenant calculation specific to FNMA. As of December 31, 2021, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios): Financial Covenants Requirement December 31, 2021 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 150,000 $ 180,032 $ 30,032 Liquidity 40,000 43,734 3,734 Leverage Ratio 15:1 13.9:1 12,154 Material Decline in Lender Adjusted Net Worth: Lender Adjusted Tangible Net Worth (Quarterly requirement) (3) $ 150,539 $ 214,979 $ 64,440 Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly (3) 114,830 214,979 100,149 FACo Adjusted Tangible Net Worth $ 85,000 $ 87,350 $ 2,350 Liquidity 20,000 32,728 12,728 Leverage Ratio 6:1 2.8:1 46,895 FAR Adjusted Tangible Net Worth $ 417,826 $ 527,443 $ 109,617 Liquidity 20,000 23,845 3,845 Leverage Ratio 6:1 2.9:1 264,134 (1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary. (2) This amount is based on the most restrictive financing line of credit covenant. (3) This amount is the covenant calculation specific to FNMA. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2022 | |
Litigation [Abstract] | |
Litigation | 15. Litigation The Company’s business is subject to legal proceedings, examinations, investigations and reviews by various federal, state and local regulatory and enforcement agencies as well as private litigants such as the Company’s borrowers or former employees. At any point in time, the Company may have open investigations with regulators or enforcement agencies, including examinations and inquiries related to its loan servicing and origination practices. These matters and other pending or potential future investigations, examinations, inquiries or lawsuits may lead to administrative or legal proceedings, and possibly result in remedies, including fines, penalties, restitution, alterations in business practices, or additional expenses and collateral costs. As a litigation or regulatory matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and reasonably estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and reasonably estimable. Once the matter is deemed to be both probable and reasonably estimable, the Company establishes an accrued liability and records a corresponding amount to litigation related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. For certain matters, the Company may consider a loss to be probable but cannot calculate a precise estimate of losses. For these matters, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material litigation and regulatory matters on an ongoing basis, in conjunction with any outside counsel handling the matter. As of June 30, 2022, there were no matters that the Company considered to be probable or reasonably possible for which they could estimate losses or a reasonable range of estimated losses. The Company is a defendant in four representative lawsuits alleging violations of the California Labor Code and brought pursuant to the California Private Attorneys General Act (“PAGA”). The cases have been coordinated and were stayed pending a ruling by the Supreme Court of the United States in Viking River Cruises, Inc. v. Moriana (“the Moriana opinion”). Since the Moriana opinion was issued, the court lifted the stay to allow the Company to file Motions to Compel Arbitration. On July 15, 2022, one of the four plaintiffs requested to voluntarily dismiss her lawsuit. Due to the unpredictable nature of litigation, generally, and the wide discretion afforded the Court in awarding civil penalties in PAGA actions, the outcome of these matters cannot be presently determined, and a range of possible losses cannot be reasonably estimated. Although the actions are being vigorously defended, the Company could, in the future, incur judgments or enter into settlements of claims that could have a negative effect on its results of operations in any particular period. Legal expenses, which include, among other things, settlements and the fees paid to external legal service providers, were $1.7 million, Successor three and million for the Predecessor three months ended March 31, 2021. These expenses are included in general and administrative expenses in the Condensed Consolidated Statements of Operations (Unaudited). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Servicing of Mortgage Loans The Company has contracted with third party providers to perform specified servicing functions on its behalf. These services include maintaining borrower contact, facilitating borrower advances, generating borrower statements, collecting and processing payments of interest and principal and facilitating loss-mitigation strategies in an attempt to keep defaulted borrowers in their homes. For reverse mortgages, defaults on loans leading to foreclosures may occur if borrowers fail to meet maintenance obligations, such as payment of taxes or home insurance premiums. When a default cannot be cured, the sub-servicers sub-servicers Additionally, the sub-servicers sub-servicers Contractual sub-servicing sub-servicer Unfunded Commitments The Company is required to fund further borrower advances (where the borrower has not fully drawn down the HECM, non-agency reverse mortgage, fix & flip, or agricultural loan proceeds available) and fund the payment of the borrower’s obligation to pay FHA monthly insurance premiums. The outstanding unfunded commitments available to borrowers related to agency and non-agency The outstanding unfunded commitments available to borrowers related to agricultural loans were approximately $56.5 million and $78.5 million as of June 30, 2022 and December 31, 2021, respectively. The Company also has commitments to purchase and sell loans totaling $4.0 million and $112.3 million, respectively, as of June 30, 2022, compared to $47.3 million and $0, respectively, as of December 31, 2021. Mandatory Repurchase Obligation The Company is required to repurchase reverse loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the Maximum Claim Amount (“MCA”). Performing repurchased loans are conveyed to HUD and nonperforming repurchased loans are generally liquidated in accordance with program requirements. Loans are considered nonperforming upon events including, but not limited to, the death of the mortgagor, the mortgagor no longer occupying the property as their principal residence, or the property taxes or insurance are not being paid. As an issuer of HMBS, the Company also has the option to repurchase reverse loans out of the Ginnie Mae securitization pools without prior approval from Ginnie Mae in certain instances. These situations include the borrower requesting an additional advance that causes the outstanding principal balance to be equal to or greater than 98% of the MCA; the borrower’s loan becoming due and payable under certain circumstances; the borrower not occupying the home for greater than twelve consecutive months for physical or mental illness, and the home is not the residence of another borrower; or the borrower failing to perform in accordance with the terms of the loan. For each HECM loan that the Company securitizes into Agency HMBS, the Company is required to covenant and warrant to Ginnie Mae, among other things, that the HECM loans related to each participation included in the Agency HMBS are eligible under the requirements of the National Housing Act and the Ginnie Mae MBS Guide, and that the Company will take all actions necessary to ensure the HECM loan’s continued eligibility. The Ginnie Mae HMBS program requires that the Company removes the participation related to any HECM loan that does not meet the requirements of the Ginnie Mae MBS Guide. In addition to securitizing HECM loans into Agency HMBS, the Company may sell HECM loans to third parties, and the agreements with such third parties include standard representations and warranties related to such loans, which if breached, may require the Company to repurchase the HECM loan and/or indemnify the purchaser for losses related to such HECM loans. In the case where the Company repurchases the loan, the Company bears any subsequent credit loss on the loan. To the extent that the Company is required to remove a loan from an Agency HMBS, purchase a loan from a third party or indemnify a third party, the potential losses suffered by the Company may be reduced by any recourse the Company has to the originating broker and/or correspondent lender, if applicable, to the extent such entity breached similar or other representations and warranties. Under most circumstances, the Company has the right to require the originating broker/correspondent to repurchase the related loan from the Company and/or indemnify the Company for losses incurred. The Company seeks to manage the risk of repurchase and associated credit exposure through the Company’s underwriting and quality assurance practices. |
Business Segment Reporting
Business Segment Reporting | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | 17. Business Segment Reporting The following tables are a presentation of financial information by segment for the periods indicated (in thousands): For the three months ended June 30, 2022 Successor Mortgage Reverse Commercial Lender Portfolio Total Corporate Elim Total REVENUES Gain on sale and other income from loans $ 81,199 $ — $ — $ (1,125 ) $ (4,740 ) $ 75,334 $ — $ (3,529 ) $ 71,805 Net fair value gains on loans and related — 77,872 (3,980 ) — (72,249 ) 1,643 — (30 ) 1,613 Fee income 18,086 2,123 16,659 58,148 1,198 96,214 — (7,533 ) 88,681 Net interest income (expense) Interest income 13,657 — — 587 1,515 15,759 94 — 15,853 Interest expense (9,758 ) — — (51 ) (20,287 ) (30,096 ) (6,738 ) — (36,834 ) Net interest income (expense) 3,899 — — 536 (18,772 ) (14,337 ) (6,644 ) — (20,981 ) Total revenue 103,184 79,995 12,679 57,559 (94,563 ) 158,854 (6,644 ) (11,092 ) 141,118 Total expenses 138,183 44,171 24,587 63,667 34,554 305,162 30,787 (10,936 ) 325,013 Other, net — 38 164 814 37 1,053 13,923 156 15,132 Net (loss) income before taxes $ (34,999 ) $ 35,862 $ (11,744 ) $ (5,294 ) $ (129,080 ) $ (145,255 ) $ (23,508 ) $ — $ (168,763 ) Depreciation and amortization $ 1,615 $ 9,708 $ 522 $ 1,650 $ 106 $ 13,601 $ 3,180 $ — $ 16,781 Total assets 1,185,899 415,678 28,670 212,574 19,880,825 21,723,646 1,741,180 (1,728,600 ) 21,736,226 For the six months ended June 30, 2022 Successor Mortgage Reverse Commercial Lender Portfolio Total Corporate Elim Total REVENUES Gain on sale and other income from loans $ 193,120 $ — $ — $ (914 ) $ 6,187 $ 198,393 $ — $ (8,236 ) $ 190,157 Net fair value gains on loans and related — 183,627 (505 ) — (175,034 ) 8,088 — 3,960 12,048 Fee income 38,235 3,939 33,817 134,301 57,665 267,957 — (21,671 ) 246,286 Net interest income (expense) — Interest income 26,229 — — 747 2,562 29,538 188 — 29,726 Interest expense (19,129 ) — — (84 ) (37,010 ) (56,223 ) (13,441 ) — (69,664 ) Net interest income (expense) 7,100 — — 663 (34,448 ) (26,685 ) (13,253 ) — (39,938 ) Total revenue 238,455 187,566 33,312 134,050 (145,630 ) 447,753 (13,253 ) (25,947 ) 408,553 Total expenses 294,966 87,350 47,674 134,423 69,265 633,678 66,768 (25,896 ) 674,550 Other, net — 3,252 288 2,478 64 6,082 13,771 51 19,904 Net (loss) income before taxes $ (56,511 ) $ 103,468 $ (14,074 ) $ 2,105 $ (214,831 ) $ (179,843 ) $ (66,250 ) $ — $ (246,093 ) — Depreciation and amortization $ 4,435 $ 19,306 $ 1,036 $ 4,762 $ 197 $ 29,736 $ 3,689 $ — $ 33,425 Total assets 1,185,899 415,678 28,670 212,574 19,880,825 21,723,646 1,741,180 (1,728,600 ) 21,736,226 For the three months ended June 30, 2021 Successor Mortgage Reverse Commercial Lender Portfolio Total Corporate Elim Total REVENUES Gain on sale and other income from loans held 185,386 — — — 7,748 $ 193,134 $ — $ (5,557 ) $ 187,577 Net fair value gains on loans and related — 94,536 10,822 — 11,223 116,581 — 14,570 131,151 Fee income 30,345 954 12,124 81,130 3,577 128,130 — (37,266 ) 90,864 Net interest income (expense) Interest income 12,837 — — 29 187 13,053 107 (9 ) 13,151 Interest expense (10,861 ) (9 ) — (44 ) (16,038 ) (26,952 ) (6,674 ) (33,626 ) Net interest income (expense) 1,976 (9 ) — (15 ) (15,851 ) (13,899 ) (6,567 ) (9 ) (20,475 ) Total revenue 217,707 95,481 22,946 81,115 6,697 423,946 (6,567 ) (28,262 ) 389,117 Total expenses 224,191 42,246 20,049 73,317 33,190 392,993 36,021 (28,262 ) 400,752 Other, net — 104 140 83 (245 ) 82 (2,185 ) — (2,103 ) Net (loss) income before taxes $ (6,484 ) $ 53,339 $ 3,037 $ 7,881 $ (26,738 ) $ 31,035 $ (44,773 ) $ — $ (13,738 ) — Depreciation and amortization $ 1,433 $ (151 ) $ 127 $ 2,818 $ (107 ) $ 4,120 $ 12,342 $ — $ 16,462 Total assets 2,994,779 768,229 109,434 336,687 17,996,903 $ 22,206,032 2,115,780 (2,093,874 ) $ 22,227,938 For the three months ended March 31, 2021 Predecessor Mortgage Originations Reverse Originations Commercial Originations Lender Services Portfolio Management Total Operating Segments Corporate and Other Elim Total REVENUES Gain on sale and other income from loans held for sale, net $ 286,481 $ — $ — $ — $ 5,065 $ 291,546 $ — $ (212 ) $ 291,334 Net fair value gains on loans and related obligations — 68,449 5,431 — 2,750 76,630 — 33 76,663 Fee income 32,731 524 8,930 76,383 36,191 154,759 — 6,612 161,371 Net interest income (expense) Interest income 12,483 — — 28 138 12,649 12 — 12,661 Interest expense (11,592 ) — — (64 ) (14,954 ) (26,610 ) (7,756 ) — (34,366 ) Net interest income (expense) 891 — — (36 ) (14,816 ) (13,961 ) (7,744 ) — (21,705 ) Total revenue 320,103 68,973 14,361 76,347 29,190 508,974 (7,744 ) 6,433 507,663 Total expenses 224,246 23,693 13,391 62,970 24,406 348,706 18,683 5,925 373,314 Other, net — 34 149 2 895 1,080 (9,464 ) (508 ) (8,892 ) Net income (loss) before taxes $ 95,857 $ 45,314 $ 1,119 $ 13,379 $ 5,679 $ 161,348 $ (35,891 ) $ — $ 125,457 Depreciation and amortization $ 1,423 $ 151 $ 125 $ 1,268 $ 146 $ 3,113 $ 371 $ — $ 3,484 Total assets 2,425,529 35,861 82,375 125,317 17,378,088 20,047,170 379,562 (326,313 ) 20,100,419 |
Liquidity and Capital Requireme
Liquidity and Capital Requirements | 6 Months Ended |
Jun. 30, 2022 | |
Liquidity And Capital Requirements [Abstract] | |
Liquidity and Capital Requirements | 18. Liquidity and Capital Requirements FAM In addition to the covenant requirements of FAM mentioned in Note 14—Other Financing Lines of Credit, FAM is subject to various regulatory capital requirements administered by HUD as a result of their mortgage origination and servicing activities. HUD governs non-supervised, direct endorsement mortgagees, and Ginnie Mae, FNMA, and FHLMC, which sponsor programs that govern a significant portion of FAM’s mortgage loans sold and servicing activities. Additionally, FAM is required to maintain minimum net worth requirements for many of the states in which it sells and services loans. Each state has its own minimum net worth requirement; however, none of the state requirements are material to the Company’s Condensed Consolidated Financial Statements (Unaudited). Failure to meet minimum capital requirements can result in certain mandatory remedial actions and potentially result in additional discretionary remedial actions by regulators that, if undertaken, could: (i) remove FAM’s ability to sell and service loans to or on behalf of the Agencies; and (ii) have a direct material effect on FAM’s financial statements, results of operations and cash flows. In accordance with the regulatory capital guidelines, FAM must meet specific quantitative measures of cash, assets, liabilities, profitability and certain off-balance sheet items calculated under regulatory accounting practices. Further, changes in regulatory and accounting standards, as well as the impact of future events on FAM’s results, may significantly affect FAM’s net worth adequacy. Among FAM’s various capital requirements related to its outstanding mortgage origination and servicing agreements, the most restrictive of these requires FAM to maintain a minimum adjusted net worth balance as of the end of the most recent fiscal quarter of $149.7 million as of June 30, 2022. FAM’s adjusted net worth was $233.1 million as of June 30, 2022. FAM is also subject to requirements related to material declines in quarterly and two consecutive quarter tangible net worth. As of June 30, 2022, FAM was in compliance with these covenants. In addition, FAM is required to maintain both fidelity bond and errors and omissions insurance coverage at tiered levels based on the aggregate UPB of the loans serviced by FAM throughout the year. FAM is required to conduct compliance testing at least quarterly to ensure compliance with the foregoing requirements. As of June 30, 2022, FAM was in compliance with applicable requirements. FAR As an issuer of HMBS, FAR is required by Ginnie Mae to maintain minimum net worth, liquidity , The net worth required is $5.0 million plus 1% of FAR’s commitment authority from Ginnie Mae. The liquidity requirement is for 20% of FAR’s required net worth to be in the form of cash or cash equivalent assets. FAR is required to maintain a ratio of 6% of net worth to total assets. As of June 30, 2022, FAR was in compliance with the minimum net worth, liquidity, capitalization levels , million as of June 30, 2022. FAR’s actual ratio of net worth to total assets was below the Ginnie Mae requirement; however, FAR received a waiver for the minimum outstanding capital requirements from Ginnie Mae. Therefore, the Company was in compliance with all Ginnie Mae requirements. In addition, FAR is required to maintain both fidelity bond and errors and omissions insurance coverage at tiered levels based on the aggregate UPB of the loans serviced by FAR throughout the year. FAR is required to conduct compliance testing at least quarterly to ensure compliance with the foregoing requirements. As of June 30, 2022, FAR was in compliance with applicable requirements. Incenter Incenter Securities Group LLC (“ISG”), one of the operating subsidiaries of Incenter, operates in a highly regulated environment and is subject to federal and state laws, SEC rules and Financial Industry Regulatory Authority (“FINRA”) rules and guidance. Applicable laws and regulations, among other things, restrict permissible activities and require compliance with a wide range of financial and customer-related protections. The consequences of noncompliance can include substantial monetary and nonmonetary sanctions. In addition, ISG is subject to comprehensive examination by its regulators. These regulators have broad discretion to impose restrictions and limitations on the operations of the Company and to impose sanctions for noncompliance. ISG is subject to the SEC’s Uniform Net Capital Rule (SEC Rule 15c3-1), Additionally, the ISG claims the exemption provision of SEC Rule 15c3-3(k)(2)(ii). ISG does not hold customer funds or safekeep customer securities. ISG introduces and clears its customers’ transactions through a third party on a fully-disclosed basis. ISG also claims the exemption provision of Footnote 74 of the SEC Release No. 34-70073 Agents National Title Insurance Company (“ANTIC”), an operating subsidiary of Incenter, has additional capital requirements. The State of Missouri and State of Alabama require domestic title insurance underwriters maintain minimum capital and surplus of $1.6 million and $0.2 million, respectively. Failure to comply with these provisions may result in various actions up to and including surrender of the certificate of authority. Additionally, in October 2019, ANTIC entered into a capital maintenance agreement in conjunction with the approval for the certificate of authority for California. This agreement requires ANTIC to maintain a minimum of $8.0 million in policyholder surplus. If ANTIC falls below this requirement in any given quarter, Incenter must contribute cash, cash equivalents securities or other instruments to bring ANTIC in compliance. The Company’s insurance company subsidiaries met the existing minimum statutory capital and surplus requirements as of June 30, 2022. ANTIC is also required to maintain bonds, certificates of deposit and interest bearing accounts in accordance with applicable state regulatory requirements. The total requirement was $4.0 million across all states as of June 30, 2022. The Company was in compliance with these requirements as of June 30, 2022. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. Related Party Transactions Promissory Notes The Company had two Revolving Working Capital Promissory Note Agreements (the “2021 Promissory Notes”) outstanding with BTO Urban Holdings and Libman Family Holdings, LLC, which are deemed affiliates of the Company. Amounts under the 2021 Promissory Notes may be re-borrowed and repaid from time to time until the related maturity date. The 2021 Promissory Notes accrue interest monthly at a rate and amounts outstanding and an immaterial amount of interest paid on these notes during the Successor three and six months ended June 30, 2022, three months ended June 30, 2021, and the Predecessor three months ended March 31, 2021. Agricultural Loans In 2019, the Company entered into an Amended and Restated Limited Liability Company Agreement with FarmOp Capital Holdings, LLC (“FarmOps”) in which the Company acquired an equity investment in FarmOps. Subsequent to this agreement, the Company agreed to purchase originated agricultural loans from FarmOps. The Company purchased agricultural loans and had total funded draw amounts of $32.6 million and $44.8 million, respectively, for the Successor three months ended June 30, 2022, and $105.9 million and $133.5 million for the six months ended June 30, 2022. The Company purchased agricultural loans and had total funded draw amounts of $46.3 million and $53.4 million, respectively, during the three months ended June 30, 2021, and $83.0 million and $82.1 million, for the Predecessor three months ended March 31, 2021. The Company had promissory notes outstanding with FarmOps of $4.3 million and $4.1 million, including accrued interest, as of June 30, 2022 and December 31, 2021, respectively. Nonrecourse MSR Financing Liability, at Fair Value In 2020, the Company entered into a nonrevolving facility commitment with various related parties, to sell beneficial interests in the servicing fees generated from its originated or acquired MSRs. Under these agreements, the Company has agreed to sell excess servicing income or pay an amount equal to excess servicing income to third parties, in each case, taking into account cost of servicing and ancillary income related to the identified MSRs in exchange for an upfront payment equal to the purchase price or fair value of the identified MSRs. These transactions are accounted for as financings. As of June 30, 2022 and December 31, 2021, the Company had an outstanding advance of $153.1 million and $115.4 million, respectively, against this commitment for the purchase of MSRs with a fair value of $153.4 million and $155.1 million, respectively. Senior Notes Related parties of FoA purchased notes in the high-yield debt offering in November 2020 in an aggregate principal amount of $135.0 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 20. Income Taxes The components of income tax expense (benefit) were as follows: For the three months ended For the six months ended For the three months ended For the three months ended Successor Predecessor Net income (loss) before income taxes $ (168,763 ) $ (246,093 ) $ (13,738 ) $ 125,457 Provision (benefit) for income taxes (940 ) (14,275 ) 1,086 1,137 Effective tax provision rate 0.56 % 5.80 % (7.91 )% 0.91 % The Company’s effective tax rate for the three and six months ended June 30, 2022 differs from the U.S.’s statutory rate primarily due to anticipated state statutory income tax rates as well as the projected mix of earnings or loss attributable to the noncontrolling interest not allocable to FoA. Prior to the Business Combination, FoA Equity operated as a U.S. Partnership which, generally, are not subject to U.S. federal and state income taxes. After the Business Combination, FoA is taxed as a corporation and is subject to U.S. federal, state and local taxes on the income allocated to it from FoA Equity, based upon FoA’s economic interest in FoA Equity, as well as any stand-alone income it generates. FoA Equity and its disregarded subsidiaries are treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, FoA Equity is not subject to U.S. federal and certain state and local income taxes. FoA Equity’s members, including FoA, are liable for U.S. federal, state and local income taxes based on their allocable share of FoA Equity’s pass-through taxable income. FoA Equity wholly owns certain regarded corporate subsidiaries for tax purposes. FoA Equity’s regarded corporate subsidiaries are subject to U.S. federal, state and local taxes on income they generate. As such, the consolidated tax provision of FoA includes corporate taxes that it incurs based on its flow-through income from FoA Equity as well as its allocable portion of corporate taxes that are incurred by its regarded subsidiaries. The Company recognizes deferred tax assets to the extent it believes these assets are more-likely-than-not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent results of operations. The Company recognizes uncertain income tax positions when it is not more-likely-than-not a tax position will be sustained upon examination. As of June 30, 2022, the Company has recognized uncertain tax positions related to positions taken at FoA and lower tier subsidiaries. There were no significant changes to the Company’s uncertain tax positions for the current period. If necessary, the Company accrues interest and penalties related to uncertain tax positions as a component of the income tax No or prior. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per share | 21. Earnings Per Share Basic net income per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding during the Successor period. Diluted net income per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding and the effect of all dilutive common stock equivalents and potentially dilutive share based compensation awards outstanding during the Successor period. For the Predecessor periods, FoA Equity’s capital structure consisted of a single class of outstanding membership units which are held by one member, UFG. Therefore, the Company has omitted earnings per unit for the Predecessor periods presented due to the limited number of LLC unit holders. The following tables reconcile the numerators and denominators used in the computations of both basic and diluted earnings per share for the Successor periods (in thousands, except share data and per share amounts): For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Basic net earnings (loss) per share: Numerator Net loss $ (167,823 ) $ (231,818 ) $ (14,824 ) N/A Less: loss attributable to noncontrolling interest (1) (127,143 ) (182,645 ) (17,089 ) N/A Net income (loss) $ (40,680 ) $ (49,173 ) $ 2,265 N/A Denominator Weighted average shares of Class A Common Stock outstanding—basic 62,379,041 61,580,900 59,881,714 N/A Basic net earnings (loss) per share $ (0.65 ) $ (0.80 ) $ 0.04 N/A (1) The Class A LLC Units of FoA Equity, held by the Continuing Unitholders, which comprise the noncontrolling interest in the Company, represents a participating security. Therefore, the numerator was adjusted to reduce net income by the amount of net income attributable to noncontrolling interest. Additionally, the Class B Common Stock does not participate in earnings or losses of the Company and therefore is not a participating security. The Class B Common Stock has not been included in either the basic or diluted net income per share calculations. Loss attributable to noncontrolling interest includes an allocation of expense related to the Amended and Restated Long-Term Incentive Plan (“A&R MLTIP”). For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended Successor Predecessor Diluted net loss per share: Numerator Net income (loss) attributable to holders of Class A Common Stock $ (40,680 ) $ (49,173 ) $ 2,265 N/A Reallocation of net income (loss) assuming exchange of Class A LLC Units (1) (90,293 ) (139,756 ) (12,001 ) N/A Net loss attributable to holders of Class A Common Stock—diluted $ (130,973 ) $ (188,929 ) $ (9,736 ) N/A Denominator Weighted average shares of Class A Common Stock outstanding—basic 62,379,041 61,580,900 59,881,714 N/A Effect of dilutive securities: Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) 125,439,184 127,048,176 131,318,286 N/A Weighted average shares of Class A Common Stock outstanding—diluted 187,818,225 188,629,076 191,200,000 N/A Diluted net loss per share $ (0.70 ) $ (1.00 ) $ (0.05 ) N/A (1) This adjustment assumes the after-tax elimination of noncontrolling interest due to the assumed exchange of all Class A LLC Units outstanding for shares of Class A Common Stock in FoA as of the beginning of the period following the if-converted method for calculating diluted net income (loss) per share. Following the terms of the A&R LLC Agreement, the Class A LLC unitholders will bear approximately 85% of the cost of any vesting associated with the Replacement RSUs and Earnout Right RSUs prior to any distribution by the Company to such Class A LLC unitholders. The remaining compensation cost associated with the Replacement RSUs and Earnout Right RSUs will be born by FoA for the share attributable to Blackstone Tactical Opportunities Fund (Urban Feeder) – NQ L.P., a Delaware limited partnership (“Blocker”). As a result of the application of the if-converted method in arriving at diluted net loss per share, the entirety of the compensation cost associated with vesting of the Replacement RSUs and Earnout Right RSUs is assumed to be included in the net loss attributable to holders of the Company’s Class A Common Stock. (2) The diluted weighted average shares outstanding of Class A Common Stock includes the effects of the if-converted method to reflect the provisions of the Exchange Agreement and assumes the Class A LLC Units held by Continuing Unitholders, representing the noncontrolling interest, exchange their units on a one-for-one basis for shares of Class A Common Stock in FoA. In addition to the Class A LLC Units, the Company also had RSUs outstanding during the Successor three and six months ended June 30, 2022. The effects of the RSUs following the treasury stock method have been excluded from the computation of diluted net loss per share given that the if-converted method was determined to be more dilutive. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity | 22. Equity Class A Common Stock As of June 30, 2022 (Successor), there were 66,733,053 shares of Class A Common Stock outstanding, consisting of 62,474,553 shares issued and outstanding and 4,258,500 unvested shares that are subject to vesting and forfeiture. The 4,258,500 unvested shares of Class A Common Stock relate to the Sponsor Earnout. The 4,258,500 unvested shares of Class A Common Stock are not entitled to receive any dividends or other distributions, do not have any other economic rights until such shares are vested, and will not be entitled to receive back dividends or other distributions or any other form of economic “catch-up” Pursuant to the Exchange Agreement, the Continuing Unitholders may elect to exchange their Class A LLC Units for shares of Class A Common Stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. For the three months ended June 30, 2022, i Pursuant to the Exchange Agreement, the Continuing Unitholders may elect to exchange their Class A LLC Units for shares of Class A Common Stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. For the three months ended June 30, 2022, in connection with FoA’s settlement of the exchange of Class A LLC Units for shares of Class A Common Stock and pursuant to the Exchange Agreement, certain equity holders Class B Common Stock As of June 30, 2022, there are 15 shares of Class B Common Stock outstanding, all holders of which are Class A LLC Unit holders. The Class B Common Stock, par value $0.0001 per share, has no economic rights but entitles each holder of at least one such share (regardless of the number of shares so held) to a number of votes that is equal to the aggregate number of Class A LLC Units held by such holder on all matters on which shareholders of the Company are entitled to vote generally. Class A LLC Units In connection with the Business Combination, the Company, FoA Equity and the Continuing Unitholders entered into an Exchange Agreement. The Exchange Agreement sets forth the terms and conditions upon which holders of Class A LLC Units may exchange their Class A LLC Units for shares of Class A Common Stock on a one-for-one As a result of the settlement of 93,455 Non-LTIP RSUs in the 2022 Successor period, the Company issued 93,455 shares of Class A Common Stock and issued the same amount of Class A LLC Units for the benefit of FoA. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Line Items] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements comprise the financial statements of FoA and its controlled subsidiaries for the Successor three and six months ended June 30, 2022, three months ended June 30, 2021, and the financial statements of FoA Equity and its controlled subsidiaries for the Predecessor three months ended March 31, 2021. The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The accompanying financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of its financial condition as of June 30, 2022 and its results of operations and cash flows for the Successor three and six months ended June 30, 2022, three months ended June 30, 2021, and the Predecessor three months ended March 31, 2021. The Condensed Consolidated Statement of Financial Condition at December 31, 2021 was derived from audited financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the interim period are not necessarily indicative of the results that may be expected for any future period or for the full year. The condensed consolidated financial statements, including the significant accounting policies, should be read in conjunction with the consolidated financial statements and notes for the period ended December 31, 2021 within the Company’s Annual Report Form 10-K. There have not been any material changes to our critical accounting policies and estimates as disclosed in the Annual Report on Form 10-K. The significant accounting policies, together with the other notes that follow, are an integral part of the condensed consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates and assumptions due to factors such as changes in the economy, uncertainties due to the COVID-19 pandemic, interest rates, secondary market pricing, prepayment assumptions, home prices or discrete events affecting specific borrowers, and such differences could be material. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance Standard Description Effective Date Effect on Condensed ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation(Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity—Classified Written Call Options The amendments in this Update affect all entities that issue freestanding written call options that are classified in equity. Specifically, the amendments affect those entities when a freestanding equity-classified written call option is modified or exchanged and remains equity classified after the modification or exchange. The amendments that relate to the recognition and measurement of EPS for certain modifications or exchanges of freestanding equity-classified written call options affect entities that present EPS in accordance with the guidance in Topic 260, Earnings Per Share. January 1, 2022 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements and related disclosures, as the Company does not currently issue freestanding written call options. |
Recently Issued Accounting Guidance, Not Yet Adopted | Recently Issued Accounting Guidance, Not Yet Adopted as of June 30, 2022 Standard Description Date of Planned Adoption Effect on Condensed ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2021-01, Reference Rate Reform (Topic 848): Codification Clarification The amendments in this Update provide temporary optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter-Bank Offered Rate (“LIBOR”) or other interbank offered rates expected to be discontinued. In January 2021, FASB issued an Update which refines the scope of ASU Topic 848 and clarifies the guidance issued to facilitate the effects of reference rate reform on financial reporting. The amendment permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements and calculating price alignment interest in connection with reference rate reform activities. In April 2022, FASB released a proposed ASU that would amend the guidance on reference rate reform in ASC Topic 848 and ASC 815. Specifically, the proposal would defer the effective date of the guidance’s sunset date provision to December 31, 2024 (originally December 31, 2022), thereby extending the period over which entities can apply the guidance in ASU 2020-04,8 which provides “optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.” In addition, the proposal would amend the definition of the secured overnight financing rate (“SOFR”), as used in ASU 2018-16,9 to “include other versions of SOFR, such as SOFR term, as a benchmark interest rate under Topic 815.” TBD This ASU is effective from March 12, 2020 through December 31, 2022. The Company continues to monitor the impact associated with reference rate reform, and will apply the amendments in this update to account for contract modifications due to changes in reference rates once those occur. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. Standard Description Date of Planned Adoption Effect on Condensed ASU 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08 to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) Recognition of an acquired contract liability and (2) Payment terms and their effect on subsequent revenue recognized by the acquirer. The amendments in this ASU require that an entity (acquirer) recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in this ASU do not affect the accounting for other assets or liabilities that may arise from revenue contracts with customers in accordance with Topic 606, such as refund liabilities, or in a business combination, such as customer-related intangible assets and contract-based intangible assets. January 1, 2023 This ASU is effective for all business combinations occurring after January 1, 2023. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The amendments in this Update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments in this Update also require the following disclosures for equity securities subject to contractual sale restrictions: 1. The fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet 2. The nature and remaining duration of the restriction(s) 3. The circumstances that could cause a lapse in the restriction(s). January 1, 2024 This ASU is effective for fiscal years beginning after December 15, 2023. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. |
Variable Interest Entities an_2
Variable Interest Entities and Securitizations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of the Assets and Liabilities of the Company's Consolidated Variable Interest Entities | The following table presents the assets and liabilities of the Company’s consolidated VIEs, which are included in the Condensed Consolidated Statements of Financial Condition, and excludes intercompany balances, except for retained bonds and beneficial interests (in thousands): June 30, 2022 December 31, 2021 ASSETS Restricted cash $ 342,575 $ 311,652 Loans held for investment, subject to nonrecourse debt, at fair value 6,433,638 6,099,607 Other assets, net 68,239 67,593 TOTAL ASSETS $ 6,844,452 $ 6,478,852 LIABILITIES Nonrecourse debt, at fair value $ 6,717,649 $ 6,088,298 Payables and other liabilities 598 428 TOTAL VIE LIABILITIES 6,718,247 6,088,726 Retained bonds and beneficial interests eliminated in consolidation (270,412 ) (231,229 ) TOTAL CONSOLIDATED LIABILITIES $ 6,447,835 $ 5,857,497 |
Summary of the Outstanding Collateral and Certificate Balances for Securitization Trusts | The following table presents a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor and that were not consolidated by the Company (in thousands): June 30, 2022 December 31, 2021 Unconsolidated securitization trusts: Total collateral balances— Unpaid Principal Balance (“ ”) $ 1,031,095 $ 1,085,340 Total certificate balances $ 1,031,095 $ 1,085,340 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Summary of the recognized assets and liabilities that are measured at fair value on a recurring basis | The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis (in thousands): June 30, 2022 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 10,882,441 $ — $ — $ 10,882,441 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 6,149,706 — — 6,149,706 Fix & flip mortgage loans 451,056 — — 451,056 Loans held for investment: Reverse mortgage loans 949,551 — — 949,551 Fix & flip mortgage loans 77,544 — — 77,544 Agricultural loans 31,315 — — 31,315 Loans held for sale: Residential mortgage loans 996,345 — 959,472 36,873 SRL 195,615 — — 195,615 Portfolio 37,634 — — 37,634 MSRs 359,006 — — 359,006 Derivative assets: IRLCs and LPCs 14,126 — 129 13,997 Forward MBS and TBAs 4,258 — 4,258 — Interest rate swaps and futures contracts 36,802 36,802 — — Other assets: Investments 1,000 — — 1,000 Retained bonds 46,593 — — 46,593 Total assets $ 20,232,992 $ 36,802 $ 963,859 $ 19,232,331 Liabilities HMBS related obligations $ 10,745,879 $ — $ — $ 10,745,879 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 6,447,238 — — 6,447,238 Nonrecourse commercial loan financing liability 162,464 — — 162,464 Nonrecourse MSR financing liability 142,382 — — 142,382 Deferred purchase price liabilities: Deferred purchase price liabilities 4,852 — — 4,852 TRA obligation 13,925 — — 13,925 Derivative liabilities: Forward MBS and TBAs 7,530 — 7,530 — Interest rate swaps and futures contracts 2,183 2,183 — — Warrant liability 2,301 2,301 — — Total liabilities $ 17,528,754 $ 4,484 $ 7,530 $ 17,516,740 December 31, 2021 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 10,556,054 $ — $ — $ 10,556,054 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 5,823,301 — — 5,823,301 Fix & flip mortgage loans 394,893 — — 394,893 Loans held for investment: Reverse mortgage loans 940,604 — — 940,604 Fix & flip mortgage loans 62,933 — — 62,933 Agricultural loans 27,791 — — 27,791 Loans held for sale: Residential mortgage loans 1,902,952 — 1,885,627 17,325 SRL 98,852 — — 98,852 Portfolio 50,574 — — 50,574 MSRs 427,942 — — 427,942 Derivative assets: IRLCs and LPCs 24,786 — 1,564 23,222 Forward MBS and TBAs 1,250 — 1,250 — Interest rate swaps and futures contracts 22,834 22,834 — — Other assets: Investments 6,000 — — 6,000 Retained bonds 55,614 — — 55,614 Total assets $ 20,396,380 $ 22,834 $ 1,888,441 $ 18,485,105 Liabilities HMBS related obligations $ 10,422,358 $ — $ — $ 10,422,358 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 5,857,069 — — 5,857,069 Nonrecourse commercial loan financing liability 111,738 — — 111,738 Nonrecourse MSR financing liability 142,435 — — 142,435 Deferred purchase price liabilities: Deferred purchase price liabilities 12,852 — — 12,852 TRA obligation 29,380 — — 29,380 Derivative liabilities: Forward MBS and TBAs 1,685 — 1,685 — Interest rate swaps and futures contracts 24,993 24,993 — — Warrant liability 5,497 5,497 — — Total liabilities $ 16,608,007 $ 30,490 $ 1,685 $ 16,575,832 |
Fair value, assets measured on recurring basis, unobservable input reconciliation | Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3, in thousands): Successor Assets June 30, 2022 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale Derivative assets MSRs Retained bonds Investments Beginning balance, March 31 $ 11,891,142 $ 6,235,990 $ 229,045 $ 2,736 $ 426,102 $ 50,875 $ 6,000 Total gain or losses included in earnings (34,147 ) (257,874 ) (4,163 ) 11,261 (12,671 ) (3,020 ) (5,000 ) Purchases, settlements and transfers: Purchases and additions, net 1,928,290 28,206 395,502 — 41,218 — — Sales and settlements (671,743 ) (573,913 ) (353,460 ) — (95,643 ) (1,262 ) — Transfers in/(out) between categories (1,172,691 ) 1,168,353 3,198 — — — — Ending balance, June 30, 2022 $ 11,940,851 $ 6,600,762 $ 270,122 $ 13,997 $ 359,006 $ 46,593 $ 1,000 Successor Assets June 30, 2022 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale Derivative assets MSRs Retained bonds Investments Beginning balance, December 31, 2021 $ 11,587,382 $ 6,218,194 $ 166,750 $ 23,222 $ 427,942 $ 55,614 $ 6,000 Total gain or losses included in earnings (70,042 ) (571,594 ) (11,203 ) (9,225 ) 39,697 (6,309 ) (5,000 ) Purchases, settlements and transfers: Purchases and additions, net 3,776,445 58,548 791,522 — 94,662 — — Sales and settlements (1,284,367 ) (1,160,189 ) (683,050 ) — (203,295 ) (2,712 ) — Transfers in/(out) between categories (2,068,567 ) 2,055,803 6,103 — — — — Ending balance, June 30, 2022 $ 11,940,851 $ 6,600,762 $ 270,122 $ 13,997 $ 359,006 $ 46,593 $ 1,000 Successor Assets June 30, 2021 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale Derivative assets MSRs Retained Bonds Investments Beginning balance, March 31, 2021 $ 11,171,736 $ 5,291,444 $ 135,681 $ 38,574 $ 267,364 $ — $ 9,470 Total gain or losses included in earnings 153,690 80,408 1,816 (3,066 ) (26,536 ) 666 (3,470 ) Purchases, settlements and transfers: Purchases and additions, net 1,428,976 22,041 256,438 — 50,110 15,078 — Sales and settlements (615,958 ) (522,141 ) (275,956 ) (25 ) — (73 ) — Transfers in/(out) between categories (597,327 ) 552,869 42,909 — — — — Ending balance, June 30, 2021 $ 11,541,117 $ 5,424,621 $ 160,888 $ 35,483 $ 290,938 $ 15,671 $ 6,000 Predecessor Assets March 31, 2021 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale Derivative assets MSRs Investments Beginning balance, December 31, 2020 $ 10,659,984 $ 5,396,167 $ 152,854 $ 88,660 $ 180,684 $ 18,934 Total gain or losses included in earnings 132,499 (37,757 ) 2,764 (50,040 ) 20,349 (9,464 ) Purchases, settlements and transfers: Purchases and additions, net 1,143,109 21,064 175,551 — 74,978 — Sales and settlements (534,738 ) (360,128 ) (152,579 ) (46 ) (8,647 ) — Transfers in/(out) between categories (229,118 ) 272,098 (42,909 ) — — — Ending balance, March 31, 2021 $ 11,171,736 $ 5,291,444 $ 135,681 $ 38,574 $ 267,364 $ 9,470 |
Fair value, liabilities measured on recurring basis, unobservable input reconciliation | Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3, in thousands): Successor Liabilities June 30, 2022 HMBS related obligations Deferred purchase price liabilities Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability TRA Liability Beginning balance, March 31 $ (10,548,131 ) $ (7,852 ) $ (6,032,156 ) $ (127,640 ) $ (163,981 ) $ (29,380 ) Total gains or losses included in earnings 93,095 — 116,701 (66 ) (337 ) 15,455 Purchases, settlements and transfers: Purchases and additions, net (992,053 ) — (756,058 ) (57,157 ) (1,050 ) — Sales and settlements 701,210 3,000 224,275 22,399 22,986 — Transfers in/(out) between categories — — — — — — Ending balance, June 30, 2022 $ (10,745,879 ) $ (4,852 ) $ (6,447,238 ) $ (162,464 ) $ (142,382 ) $ (13,925 ) Successor Liabilities June 30, 2022 HMBS related obligations Deferred purchase price liabilities Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability TRA Beginning balance, December 31, 2021 $ (10,422,358 ) $ (12,852 ) $ (5,857,069 ) $ (111,738 ) $ (142,435 ) $ (29,380 ) Total gain or losses included in earnings 178,677 — 222,041 188 (16,375 ) 15,455 Purchases, settlements and transfers: Purchases and additions, net (1,940,735 ) — (1,804,557 ) (117,815 ) (6,792 ) — Sales and settlements 1,438,537 8,000 992,347 66,901 23,220 — Transfers in/(out) between categories — — — — — — Ending balance, June 30, 2022 $ (10,745,879 ) $ (4,852 ) $ (6,447,238 ) $ (162,464 ) $ (142,382 ) $ (13,925 ) Successor Liabilities June 30, 2021 HMBS related obligations Derivative liabilities Deferred purchase price liabilities Nonrecourse debt in VIE trusts Nonrecourse MSR financing liability TRA Liability Beginning balance, March 31, 2021 $ (9,926,132 ) $ (936 ) $ (3,214 ) $ (5,205,892 ) $ (22,051 ) $ — Total gains or losses included in earnings (44,651 ) $ — (1,760 ) (32,601 ) 4,123 (860 ) Purchases, settlements and transfers: Purchases and additions, net (795,333 ) — (7,000 ) (796,376 ) (47,201 ) (31,950 ) Settlements 597,892 (175 ) 311 674,266 — — Ending balance, June 30, 2021 $ (10,168,224 ) $ (1,111 ) $ (11,663 ) $ (5,360,603 ) $ (65,129 ) $ (32,810 ) Predecessor Liabilities March 31, 2021 HMBS related obligations Derivative liabilities Deferred purchase price liability Nonrecourse debt in VIE trusts Nonrecourse MSR financing liability Beginning balance, December 31, 2020 $ (9,788,668 ) $ (1,084 ) $ (3,842 ) $ (5,257,754 ) $ (14,088 ) Total gain or losses included in earnings (41,434 ) — (29 ) (30,770 ) 390 Purchases, settlements and transfers: Purchases and additions, net (602,172 ) — — (575,668 ) (8,353 ) Sales and settlements 506,142 148 657 658,300 Ending balance, March 31, 2021 $ (9,926,132 ) $ (936 ) $ (3,214 ) $ (5,205,892 ) $ (22,051 ) |
Summary of the fair value and unpaid principal balance ("UPB") | Fair Value Option The Company has elected to measure substantially all of its loans held for investment, loans held for sale, HMBS related obligations, and non-recourse debt at fair value under the fair value option provided for by ASC 825-10, Financial Instruments-Overall. June 30, 2022 Estimated Fair Unpaid Principal Assets at fair value under the fair value option Loans held for investment, subject to HMBS related obligations $ 10,882,441 $ 10,468,472 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 6,149,706 6,053,167 Commercial mortgage loans 451,056 451,981 Loans held for investment: Reverse mortgage loans 949,551 871,671 Commercial mortgage loans 108,859 108,322 Loans held for sale: Residential mortgage loans 996,345 988,361 Commercial mortgage loans 233,249 239,108 June 30, 2022 Estimated Fair Value Unpaid Principal Balance Liabilities at fair value under the fair value option HMBS related obligations 10,745,879 10,445,730 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 6,447,238 6,773,313 Nonrecourse MSR financing liability 142,382 142,382 Nonrecourse commercial loan financing liability 162,464 158,659 December 31, 2021 Estimated Fair Unpaid Principal Assets at fair value under the fair value option Loans held for investment, subject to HMBS related obligations $ 10,556,054 $ 9,849,835 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 5,823,301 5,165,479 Commercial mortgage loans 394,893 388,788 Loans held for investment: Reverse mortgage loans 940,604 815,426 Commercial mortgage loans 90,724 89,267 Loans held for sale: Residential mortgage loans 1,902,952 1,859,788 Commercial mortgage loans 149,426 145,463 Liabilities at fair value under the fair value option HMBS related obligations 10,422,358 9,849,835 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 5,857,069 5,709,946 Nonrecourse MSR financing liability 142,435 142,435 Nonrecourse commercial loan financing liability 111,738 107,744 |
Summary of the components of net fair value gains on mortgage loans and related obligations | Provided in the table below is a summary of the components of net fair value gains on loans and related obligations (in thousands): For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Net fair value gains (losses) on loans and related obligations: Interest income on commercial and reverse loans $ 189,760 $ 353,454 $ 173,940 $ 160,568 Change in fair value of loans (469,818 ) (977,145 ) 84,983 (51,346 ) Net fair value gains (losses) on loans (280,058 ) (623,691 ) 258,923 109,222 For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Interest expense on HMBS and nonrecourse obligations (124,603 ) (231,246 ) (113,474 ) (119,201 ) Change in fair value of derivatives 99,928 265,507 (46,478 ) 43,972 Change in fair value of related obligations 306,346 601,478 32,180 42,670 Net fair value gains (losses) on related obligations 281,671 635,739 (127,772 ) (32,559 ) Net fair value gains (losses) on loans and related obligations $ 1,613 $ 12,048 $ 131,151 $ 76,663 |
Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of loans held for investment, subject to HMBS related obligations, for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 23.0 % NM 20.8 % Loss frequency NM 3.9 % NM 4.5 % Loss severity 2.4% - 6.9 % 2.6 % 3.1% - 7.7 % 3.3 % Discount rate NM 4.2 % NM 2.4 % Average draw rate NM 1.2 % NM 1.1 % |
HECM Buyouts [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of nonperforming securitized HECM buyouts for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 39.7 % NM 41.2 % Loss frequency 23.1% - 100.0 % 51.4 % 25.0% - 100 % 59.5 % Loss severity 2.4% - % 3.7 % 3.1% - 7.7 % 4.3 % Discount rate NM 7.7 % NM 4.1 % |
HECM Buyouts Securitized [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of performing securitized HECM buyouts for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 9.0 NM 9.0 Conditional repayment rate NM 13.4 % NM 13.3 % Loss severity 2.4% - 6.9 % 5.7 % 3.1% - 7.7 % 7.7 % Discount rate NM 6.8 % NM 3.7 % |
Non Agency Reverse Mortgage Securitized [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the significant unobservable assumptions used in the fair value measurements of securitized non-agency June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 9.3 NM 7.5 Loan to value 0.1% - 73.0 % 42.9 % 0.1% - 64.7 % 43.4 % Conditional repayment rate NM 14.7 % NM 18.6 % Loss severity NM 10.0 % NM 10.0 % Home price appreciation -10.1% - 11.0 % 4.9 % -4.6% - 14 % 4.7 % Discount rate NM 6.2 % NM 3.6 % |
Fix And Flip Securitized Commercial Mortgage Loans [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The Company utilized the following weighted average assumptions in estimating the fair value of securitized Fix & Flip mortgage loans for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (SMM) NM 10.6 % NM 14.1 % Discount rate NM 8.9 % NM 5.7 % Loss frequency NM 0.5 % 0.3% - 69.0 % 0.6 % |
Inventory Buyout [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of Inventory Buyouts classified as loans held for investment, at fair value for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 41.2 % NM 43.2 % Loss frequency 23.1% - 100.0 % 47.4 % NM 59.4 % Loss severity 2.4% - 6.9 % 4.7 % 3.1% - 7.7 % 3.8 % Discount rate NM 7.7 % NM 4.1 % |
Non Agency Reverse Mortgage Loans [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of non-agency reverse mortgage loans classified as loans held for investment, at fair value for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 10.8 NM 9.2 Loan to value 2.9% - 68.9 % 47.3 % 0.2% - 68.7 % 47.8 % Conditional repayment rate NM 13.1 % NM 14.8 % Loss severity NM 10.0 % NM 10.0 % Home price appreciation -10.1% - 11.0 % 4.6 % -4.6% - 14.0 % 4.4 % Discount rate NM 6.2 % NM 3.6 % |
Commercial Mortgage Agricultural Loans [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The Company utilized the following assumptions in estimating the fair value of agricultural loans for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Discount rate NM 8.1 % NM 4.8 % Prepayment rate (SMM) NM 23.1 % 9.0% - 100.0 % 22.1 % Default rate (CDR) 0.0% - 1.0 % 1.0 % 0.0% - 0.7 % 0.9 % |
Commercial Mortgage Fix and Flip Loans [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The Company utilized the following weighted average assumptions in estimating the fair value of Fix & Flip loans for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (SMM) NM 11.6 % NM 11.9 % Discount rate 8.9% - 13.5 % 9.0 % 5.7% - 10.0 % 5.9 % Loss frequency NM 0.3 % NM 0.4 % |
Commercial Mortgage Single Rental Loans [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The Company utilized the following weighted average assumptions in estimating the fair value of SRL mortgage loans held for sale for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (CPR) 18.1% - 25.0 % 18.6 % 1.0% - 17.1 % 14.2 % Discount rate NM 6.5 % NM 3.3 % Default rate (CDR) NM 1.0 % 1.0% - 57.2 % 2.2 % |
Commercial Mortgage Portfolio Lending [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The Company utilized the following weighted average assumptions in estimating the fair value of Portfolio Lending mortgage loans held for sale for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (CPR) 0.0% - 22.1 % 14.5 % 0.0% - 14.5 % 8.7 % Discount rate NM 6.8 % NM 3.9 % Default rate (CDR) NM 1.0 % 1.0% - 54.0 % 3.2 % |
Mortgage Servicing Rights [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following tables summarize certain information regarding the servicing portfolio of retained MSRs for the periods indicated: June 30, 2022 December 31, 2021 Capitalization servicing rate 1.2 % 1.1 % Capitalization servicing multiple 4.9 4.4 Weighted average servicing fee (in basis points) 25 25 The Company utilized the following weighted average assumptions in estimating the fair value of MSRs: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 0.1% - 12.3 % 6.8 % 0.0% - 12.8 % 8.3 % Discount rate NM 9.6 % NM 8.5 % Weighted average delinquency rate 0.8% - 4.6 % 1.4 % 0.8% - 14.3 % 1.3 % The following table summarizes the estimated change in the fair value of MSRs from adverse changes in the significant assumptions (in thousands): June 30, 2022 Weighted Average Prepayment Speed Discount Weighted Average Delinquency Rate Impact on fair value of 10% adverse change $ (8,958 ) $ (15,042 ) $ (467 ) Impact on fair value of 20% adverse change $ (17,439 ) $ (28,909 ) $ (934 ) |
HMBS Related Obligations [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the weighted average significant unobservable inputs used in the fair value measurement of HMBS related obligations for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 23.1 % NM 20.8 % Discount rate NM 4.1 % NM 2.3 % |
Reverse Mortgage Loans [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the weighted average significant unobservable assumptions used in the fair value measurements of nonrecourse debt for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Performing/Nonperforming HECM securitizations Weighted average remaining life (in years) 0.3 - 0.6 0.5 0.2 - 0.8 0.5 Conditional repayment rate 20.5% - 36.2 % 26.3 % 30.8% - 54.4 % 43.5 % Discount rate NM 6.3 % NM 2.3 % Securitized Non-Agency Weighted average remaining life (in years) 0.6 - 10.5 4.0 1.0 - 2.3 1.6 Conditional repayment rate 7.6% - 37.4 % 17.2 % 18.4% - 35.9 % 28.2 % Discount rate NM 5.9 % NM 2.2 % |
Commercial Mortgage Loans [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the significant unobservable assumptions used in the fair value measurements of nonrecourse debt for the periods indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in months) NM 5.3 NM 4.0 Weighted average prepayment speed (SMM) NM 13.9 % NM 14.0 % Discount rate NM 6.3 % NM 3.1 % |
Non Recourse MSR Financing Liability [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The Company utilized the following weighted average assumptions in estimating the fair value of the outstanding nonrecourse MSR financing liability: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 1.0% - 7.2 % 5.6 % 2.0% - 11.0 % 7.7 % Discount rate 9.6% - 11.6 % 9.7 % 8.1% - 10.1 % 9.1 % Weighted average delinquency rate NM 1.3 % NM 1.3 % |
Retained Bonds [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value measurement inputs and valuation techniques | The following table presents the weighted average significant unobservable assumptions used in the fair value measurement of retained bonds for the period indicated: June 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) 2.5 - 24.5 5.0 2.6 - 25.0 5.1 Discount rate -10.0% - 11.7 % 5.7 % 1.9% - 8.2 % 2.7 % |
Reverse Mortgage Portfolio Co_2
Reverse Mortgage Portfolio Composition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Reverse Mortgages Portfolio Composition [Abstract] | |
Summary of the Company's Serviced Reverse Mortgage Portfolio Composition and the Remaining UPBs of the Reverse Mortgage Loan Portfolio | The table below summarizes the composition and the remaining UPB (in thousands) of the reverse mortgage loan portfolio serviced by the Company: June 30, 2022 December 31, 2021 Reverse mortgage loans: Reverse mortgage loans held for investment, subject to HMBS related obligations $ 10,468,472 $ 9,849,835 Reverse mortgage loans held for investment: Non-agency 534,866 432,144 Loans not securitized (1) 230,346 266,723 Unpoolable loans (2) 97,939 104,551 Unpoolable tails 8,520 12,008 Total reverse mortgage loans held for investment 871,671 815,426 June 30, 2022 December 31, 2021 Reverse mortgage loans held for investment, subject to nonrecourse debt: Performing HECM buyouts 291,633 289,089 Nonperforming HECM buyouts 603,189 590,729 Non-agency 5,158,345 4,285,661 Total reverse mortgage loans held for investment, subject to nonrecourse debt 6,053,167 5,165,479 Total owned reverse mortgage portfolio 17,393,310 15,830,740 Loans reclassified as government guaranteed receivable 63,402 48,625 Loans serviced for others 13,569 17,840 Total serviced reverse mortgage loan portfolio $ 17,470,281 $ 15,897,205 (1) Loans not securitized represent primarily newly originated loans . (2) Unpoolable loans represent primarily loans that have reached 98% of their MCA |
Summarizes the Owned Reverse Mortgage Portfolio by Product Type | The table below summarizes the reverse mortgage portfolio owned by the Company by product type (in thousands): June 30, 2022 December 31, 2021 Fixed rate loans $ 5,891,343 $ 5,384,865 Adjustable rate loans 11,501,967 10,445,875 Total owned reverse mortgage portfolio $ 17,393,310 $ 15,830,740 |
Loans Held for Investment, Su_3
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Reverse Mortgage Loans Held For Investment Subject To HMBS Related Obligations At Fair Value [Abstract] | |
Schedule of Loans held for investment, subject to HMBS related obligations, at fair value | Loans held for investment, subject to HMBS related obligations, at fair value, consisted of the following for the dates indicated (in thousands): June 30, 2022 December 31, 2021 Loans held for investment, subject to HMBS related obligations—UPB $ 10,468,472 $ 9,849,835 Fair value adjustments 413,969 706,219 Total loans held for investment, subject to HMBS related obligations, at fair value $ 10,882,441 $ 10,556,054 |
Loans Held for Investment, Su_4
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Loans Held For Investment Subject To Nonrecourse Debt At Fair Value [Abstract] | |
Schedule of mortgage loans held for investment subject to nonrecourse debt at fair value | Loans held for investment, subject to nonrecourse debt, at fair value, consisted of the following for the dates indicated (in thousands): June 30, 2022 December 31, 2021 Loans held for investment, subject to nonrecourse debt—UPB: Reverse mortgage loans $ 6,053,167 $ 5,165,479 Commercial mortgage loans 451,981 388,788 Fair value adjustments 95,614 663,927 Total loans held for investment, subject to nonrecourse debt, at fair value $ 6,600,762 $ 6,218,194 |
Schedule of mortgage loans held for investment, subject to nonrecourse debt that were greater than 90 days past due and on non-accrual status | The table below shows the total amount of loans held for investment, subject to nonrecourse debt, that were greater than 90 days past due and on non-accrual status (in thousands): June 30, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual Fair value: Commercial mortgage loans $ 17,998 $ 26,081 Total fair value 17,998 26,081 Aggregate UPB: Commercial mortgage loans 18,442 26,472 Total aggregate UPB 18,442 26,472 Difference $ (444 ) $ (391 ) |
Loans Held for Investment, at_2
Loans Held for Investment, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Loans Held for Investment At Fair Value [Abstract] | |
Schedule of loans held for investment at fair value | Loans held for investment, at fair value, consisted of the following for the dates indicated (in thousands June 30, 2022 December 31, 2021 Loans held for investment—UPB: Reverse mortgage loans $ 871,671 $ 815,426 Commercial mortgage loans 108,322 89,267 Fair value adjustments 78,417 126,635 Total loans held for investment, at fair value $ 1,058,410 $ 1,031,328 |
Loans Held for Sale, at Fair _2
Loans Held for Sale, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Loans Held for Sale At Fair Value [Abstract] | |
Schedule of mortgage loans held for sale at fair value | Loans held for sale, at fair value, consisted of the following for the dates indicated (in thousands): June 30, 2022 December 31, 2021 Loans held for sale—UPB: Residential mortgage and home improvement loans $ 988,361 $ 1,859,788 Commercial mortgage loans 239,108 145,463 Fair value adjustments 2,125 47,127 Total loans held for sale, at fair value $ 1,229,594 $ 2,052,378 |
Schedule of mortgage loans held for sale that were greater than 90 days past due and on non-accrual status | The table below shows the total amount of loans held for sale that were greater than 90 days past due and on non-accrual June 30, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual Fair value: Residential mortgage and home improvement loans $ 3,386 $ 3,195 Commercial mortgage loans 1,365 3,163 Total fair value 4,751 6,358 Aggregate UPB: Residential mortgage loans 3,771 3,753 Commercial mortgage loans 1,361 3,323 Total aggregate UPB 5,132 7,076 Difference $ (381 ) $ (718 ) |
Summary of cash flows between transferor and transferees resulted from sale of mortgage loans held for sale | The table below shows a reconciliation of the changes in loans held for sale for the respective periods presented below (in thousands): For the three For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ 1,709,357 $ 2,052,378 $ 2,140,361 $ 2,222,811 Originations/purchases/repurchases 4,598,116 10,087,003 7,109,958 8,569,575 Proceeds from sales (5,139,542 ) (11,012,321 ) (7,405,296 ) (8,878,131 ) Loans acquired through business combinations — — — 35,226 Net transfers from loans held for investment (2,905 ) — 17,494 — Gain on loans held for sale, net 67,482 112,354 194,228 188,564 Net fair value gain (loss) on loans held for sale (2,914 ) (9,820 ) 797 2,316 Ending balance $ 1,229,594 $ 1,229,594 $ 2,057,542 $ 2,140,361 |
Mortgage Servicing Rights, at_2
Mortgage Servicing Rights, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Summary of servicing portfolio and its activities | The servicing portfolio associated with capitalized servicing rights consists of the following (in thousands): June 30, 2022 December 31, 2021 Fannie Mae/Freddie Mac $ 27,446,915 $ 37,079,995 Ginnie Mae 995,944 1,109,962 Private investors 1,051,790 1,109,459 Total UPB $ 29,494,649 $ 39,299,416 Weighted average interest rate 3.32 % 3.03 % The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of the following (in thousands): For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning UPB $ 34,058,558 $ 39,299,416 $ 26,675,358 $ 22,269,362 Originated MSRs 3,375,623 7,632,904 5,139,859 6,312,227 Purchased MSRs — — 5,537 866,806 Sold MSRs (7,123,286 ) (15,492,020 ) — (1,090,267 ) Portfolio runoff (524,107 ) (1,329,775 ) (987,056 ) (1,488,977 ) Other (292,139 ) (615,876 ) (241,511 ) (193,793 ) Ending UPB $ 29,494,649 $ 29,494,649 $ 30,592,187 $ 26,675,358 The activity in the MSRs asset consisted of the following (in thousands): For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ 426,102 $ 427,942 $ 267,364 $ 180,684 Originations 41,218 94,662 50,049 65,964 Purchases — — 61 9,014 Sales (95,643 ) (203,295 ) — (8,647 ) Changes in fair value due to: Changes in market inputs or assumptions used in valuation model (2,570 ) 61,320 (16,051 ) 35,109 Changes in fair value due to portfolio runoff and other (10,101 ) (21,623 ) (10,485 ) (14,760 ) Ending balance $ 359,006 $ 359,006 $ 290,938 $ 267,364 |
Summary of Information regarding loan servicing portfolio delinquencies percentages and unpaid balance | The following table provides a summary of the loan servicing portfolio delinquencies as a percentage of the total number of loans and the total UPB of the portfolio: June 30, 2022 December 31, 2021 Number of Loans Unpaid Balance Number of Loans Unpaid Balance Portfolio delinquency 30 days 0.5 % 0.5 % 0.4 % 0.3 % 60 days 0.1 % 0.1 % 0.1 % 0.0 % 90 or more days 0.3 % 0.3 % 0.1 % 0.1 % Total 0.9 % 0.9 % 0.6 % 0.4 % Foreclosure/real estate owned 0.0 % 0.0 % 0.0 % 0.0 % |
Derivative and Risk Managemen_2
Derivative and Risk Management Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of derivative instruments | The following tables summarize the fair value and notional amount of derivative instruments (in thousands): June 30, 2022 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount IRLCs and LPCs $ 14,126 $ 1,315,810 $ — $ — Forward MBS and TBAs 4,258 696,000 7,530 694,500 Interest rate swaps and futures contracts 36,802 1,369,300 2,183 504,300 Total fair value and notional amount $ 55,186 $ 3,381,110 $ 9,713 $ 1,198,800 46 December 31, 2021 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount IRLCs and LPCs $ 24,786 $ 2,095,238 $ — $ — Forward MBS and TBAs 1,250 948,000 1,685 1,515,000 Interest rate swaps and futures contracts 22,834 11,977,300 24,993 12,193,100 Total fair value and notional amount $ 48,870 $ 15,020,538 $ 26,678 $ 13,708,100 |
Summary of the gains/(losses) on derivative instruments | The follow table details the gains/(losses) on derivative instruments (in thousands): For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Derivative activity Successor Predecessor IRLCs and LPCs $ 10,017 $ (10,660 ) $ (3,536 ) $ (49,557 ) Forward MBS and TBAs 94,350 210,967 (40,289 ) 113,331 Interest rate swaps and futures contracts 67,814 239,543 (37,383 ) 43,935 |
HMBS Related Obligations, at _2
HMBS Related Obligations, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Home Equity Conversion Mortgage Backed Security Related Obligations At Fair Value [Abstract] | |
Summary of HMBS related obligations, at fair value | HMBS related obligations, at fair value, consisted of the following (in thousands): June 30, 2022 December 31, 2021 Ginnie Mae loan pools—UPB $ 10,445,730 $ 9,849,835 Fair value adjustments 300,149 572,523 Total HMBS related obligations, at fair value $ 10,745,879 $ 10,422,358 Weighted average remaining life (in years) 4.1 4.6 Weighted average interest rate 3.3 % 2.5 % |
Nonrecourse Debt, at Fair Val_2
Nonrecourse Debt, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Instruments [Abstract] | |
Summary of nonrecourse debt at fair value | Nonrecourse debt, at fair value, consisted of the following (in thousands): Issue Date Final Maturity Date Interest Rate Original Issue Amount June 30, 2022 December 31, 2021 Securitization of performing / nonperforming HECM loans July 2020 - July 2030 - 0.88% - $ 1,805,528 $ 929,541 $ 922,970 Securitization of non-agency May 2018 - May 2023 - 1.25% - 7,205,543 5,575,261 4,630,203 Securitization of Fix & Flip loans April 2021 November 2.10% - $ 268,511 268,511 268,511 Total consolidated VIE nonrecourse debt UPB 6,773,313 5,821,684 Nonrecourse MSR financing liability, at fair value 142,382 142,435 Nonrecourse commercial loan financing liability (1) 158,659 107,744 Fair value adjustments (322,270 ) 39,379 Total nonrecourse debt, at fair value $ 6,752,084 $ 6,111,242 (1) Nonrecourse commercial loan financing liability is comprised of the balance of the nonrecourse debt for the applicable period associated with the CAPT securitization. As the CAPT securitization was determined to be an unconsolidated VIE and failed sale treatment, the associated nonrecourse debt is accounted for by FoA and presented separately from the other nonrecourse debts. Refer to Note 3 - Variable Interest Entities and Securitizations for additional information. |
Summary Of Estimated Maturities For Nonrecourse Debt Fair Value | As of June 30, 2022, estimated maturities for nonrecourse debt, at fair value, for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Estimated Maturities (1) 2022 $ 851,396 2023 2,925,814 2024 2,440,206 2025 714,556 Thereafter — Total payments on nonrecourse debt $ 6,931,972 (1) Nonrecourse MSR financing liability is excluded from this balance, because the timing of the payments of the nonrecourse MSR financing liability is dependent on the payments received on the underlying MSRs, and no contractual maturity date is applicable. |
Other Financing Lines of Cred_2
Other Financing Lines of Credit (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Financing Lines Of Credit [Abstract] | |
Summary of components of other financing lines of credit | The following summarizes the components of other financing lines of credit (in thousands) Outstanding borrowings at Maturity Date Interest Rate Collateral Pledged Total (1) June 30, 2022 December 31, Mortgage Lines: August 2022 - June 2023 LIBOR / SOFR First Lien $ 2,875,000 $ 945,532 $ 1,802,348 March 2026 Ameribor + MSRs 150,000 120,209 138,524 August 2022 - September 2022 SOFR + Mortgage Related 40,821 40,821 55,666 Subtotal mortgage lines of credit $ 3,065,821 $ 1,106,562 $ 1,996,538 Reverse Lines: August 2022 - June 2023 LIBOR / SOFR First Lien $ 1,450,000 $ 773,871 $ 714,013 July 2022 - September 2022 Bond accrual Mortgage Related 330,000 293,345 297,893 September 2022 LIBOR + MSRs 90,000 42,325 78,952 May 2023 Prime + .50%; Unsecuritized 51,877 43,376 38,544 Subtotal reverse lines of credit $ 1,921,877 $ 1,152,917 $ 1,129,402 Commercial Lines: August 2022 LIBOR + Encumbered $ 75,000 $ 22,221 $ 25,127 April 2023 - January 2024 LIBOR / SOFR First Lien 407,500 272,690 167,159 August 2022 10% Second Lien 45,000 38,900 24,175 N/A LIBOR + Mortgage Related — — 5,041 Subtotal commercial lines of credit $ 527,500 $ 333,811 $ 221,502 Total other financing lines of credit $ 5,515,198 $ 2,593,290 $ 3,347,442 (1) Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions, and covenants of the respective agreements, including asset-eligibility requirements. Capacity amounts presented are as of June 30, 2022. |
Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios | As of June 30, 2022, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios): Financial Covenants Requirement June 30, 2022 Maximum Allowable (1) FAM Adjusted Tangible Net Worth (2) $ 225,000 $ 227,279 $ 2,279 Liquidity 55,000 60,080 5,080 Leverage Ratio 13:1 8.7:1 75,388 Material Decline in Lender Adjusted Net Worth: Lender Adjusted Tangible Net Worth (Quarterly requirement) (3 ) $ 225,805 $ 227,278 $ 1,473 Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly (3) 128,988 227,278 98,290 FAR Adjusted Tangible Net Worth (2) $ 300,000 $ 361,029 $ 61,029 Liquidity 64,423 122,674 58,251 Leverage Ratio 6:1 4.2:1 106,461 (1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary. (2) This amount is based on the most restrictive financing line of credit covenant. (3) This amount is the covenant calculation specific to FNMA. As of December 31, 2021, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios): Financial Covenants Requirement December 31, 2021 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 150,000 $ 180,032 $ 30,032 Liquidity 40,000 43,734 3,734 Leverage Ratio 15:1 13.9:1 12,154 Material Decline in Lender Adjusted Net Worth: Lender Adjusted Tangible Net Worth (Quarterly requirement) (3) $ 150,539 $ 214,979 $ 64,440 Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly (3) 114,830 214,979 100,149 FACo Adjusted Tangible Net Worth $ 85,000 $ 87,350 $ 2,350 Liquidity 20,000 32,728 12,728 Leverage Ratio 6:1 2.8:1 46,895 FAR Adjusted Tangible Net Worth $ 417,826 $ 527,443 $ 109,617 Liquidity 20,000 23,845 3,845 Leverage Ratio 6:1 2.9:1 264,134 (1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary. (2) This amount is based on the most restrictive financing line of credit covenant. (3) This amount is the covenant calculation specific to FNMA. |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Information By Segment | The following tables are a presentation of financial information by segment for the periods indicated (in thousands): For the three months ended June 30, 2022 Successor Mortgage Reverse Commercial Lender Portfolio Total Corporate Elim Total REVENUES Gain on sale and other income from loans $ 81,199 $ — $ — $ (1,125 ) $ (4,740 ) $ 75,334 $ — $ (3,529 ) $ 71,805 Net fair value gains on loans and related — 77,872 (3,980 ) — (72,249 ) 1,643 — (30 ) 1,613 Fee income 18,086 2,123 16,659 58,148 1,198 96,214 — (7,533 ) 88,681 Net interest income (expense) Interest income 13,657 — — 587 1,515 15,759 94 — 15,853 Interest expense (9,758 ) — — (51 ) (20,287 ) (30,096 ) (6,738 ) — (36,834 ) Net interest income (expense) 3,899 — — 536 (18,772 ) (14,337 ) (6,644 ) — (20,981 ) Total revenue 103,184 79,995 12,679 57,559 (94,563 ) 158,854 (6,644 ) (11,092 ) 141,118 Total expenses 138,183 44,171 24,587 63,667 34,554 305,162 30,787 (10,936 ) 325,013 Other, net — 38 164 814 37 1,053 13,923 156 15,132 Net (loss) income before taxes $ (34,999 ) $ 35,862 $ (11,744 ) $ (5,294 ) $ (129,080 ) $ (145,255 ) $ (23,508 ) $ — $ (168,763 ) Depreciation and amortization $ 1,615 $ 9,708 $ 522 $ 1,650 $ 106 $ 13,601 $ 3,180 $ — $ 16,781 Total assets 1,185,899 415,678 28,670 212,574 19,880,825 21,723,646 1,741,180 (1,728,600 ) 21,736,226 For the six months ended June 30, 2022 Successor Mortgage Reverse Commercial Lender Portfolio Total Corporate Elim Total REVENUES Gain on sale and other income from loans $ 193,120 $ — $ — $ (914 ) $ 6,187 $ 198,393 $ — $ (8,236 ) $ 190,157 Net fair value gains on loans and related — 183,627 (505 ) — (175,034 ) 8,088 — 3,960 12,048 Fee income 38,235 3,939 33,817 134,301 57,665 267,957 — (21,671 ) 246,286 Net interest income (expense) — Interest income 26,229 — — 747 2,562 29,538 188 — 29,726 Interest expense (19,129 ) — — (84 ) (37,010 ) (56,223 ) (13,441 ) — (69,664 ) Net interest income (expense) 7,100 — — 663 (34,448 ) (26,685 ) (13,253 ) — (39,938 ) Total revenue 238,455 187,566 33,312 134,050 (145,630 ) 447,753 (13,253 ) (25,947 ) 408,553 Total expenses 294,966 87,350 47,674 134,423 69,265 633,678 66,768 (25,896 ) 674,550 Other, net — 3,252 288 2,478 64 6,082 13,771 51 19,904 Net (loss) income before taxes $ (56,511 ) $ 103,468 $ (14,074 ) $ 2,105 $ (214,831 ) $ (179,843 ) $ (66,250 ) $ — $ (246,093 ) — Depreciation and amortization $ 4,435 $ 19,306 $ 1,036 $ 4,762 $ 197 $ 29,736 $ 3,689 $ — $ 33,425 Total assets 1,185,899 415,678 28,670 212,574 19,880,825 21,723,646 1,741,180 (1,728,600 ) 21,736,226 For the three months ended June 30, 2021 Successor Mortgage Reverse Commercial Lender Portfolio Total Corporate Elim Total REVENUES Gain on sale and other income from loans held 185,386 — — — 7,748 $ 193,134 $ — $ (5,557 ) $ 187,577 Net fair value gains on loans and related — 94,536 10,822 — 11,223 116,581 — 14,570 131,151 Fee income 30,345 954 12,124 81,130 3,577 128,130 — (37,266 ) 90,864 Net interest income (expense) Interest income 12,837 — — 29 187 13,053 107 (9 ) 13,151 Interest expense (10,861 ) (9 ) — (44 ) (16,038 ) (26,952 ) (6,674 ) (33,626 ) Net interest income (expense) 1,976 (9 ) — (15 ) (15,851 ) (13,899 ) (6,567 ) (9 ) (20,475 ) Total revenue 217,707 95,481 22,946 81,115 6,697 423,946 (6,567 ) (28,262 ) 389,117 Total expenses 224,191 42,246 20,049 73,317 33,190 392,993 36,021 (28,262 ) 400,752 Other, net — 104 140 83 (245 ) 82 (2,185 ) — (2,103 ) Net (loss) income before taxes $ (6,484 ) $ 53,339 $ 3,037 $ 7,881 $ (26,738 ) $ 31,035 $ (44,773 ) $ — $ (13,738 ) — Depreciation and amortization $ 1,433 $ (151 ) $ 127 $ 2,818 $ (107 ) $ 4,120 $ 12,342 $ — $ 16,462 Total assets 2,994,779 768,229 109,434 336,687 17,996,903 $ 22,206,032 2,115,780 (2,093,874 ) $ 22,227,938 For the three months ended March 31, 2021 Predecessor Mortgage Originations Reverse Originations Commercial Originations Lender Services Portfolio Management Total Operating Segments Corporate and Other Elim Total REVENUES Gain on sale and other income from loans held for sale, net $ 286,481 $ — $ — $ — $ 5,065 $ 291,546 $ — $ (212 ) $ 291,334 Net fair value gains on loans and related obligations — 68,449 5,431 — 2,750 76,630 — 33 76,663 Fee income 32,731 524 8,930 76,383 36,191 154,759 — 6,612 161,371 Net interest income (expense) Interest income 12,483 — — 28 138 12,649 12 — 12,661 Interest expense (11,592 ) — — (64 ) (14,954 ) (26,610 ) (7,756 ) — (34,366 ) Net interest income (expense) 891 — — (36 ) (14,816 ) (13,961 ) (7,744 ) — (21,705 ) Total revenue 320,103 68,973 14,361 76,347 29,190 508,974 (7,744 ) 6,433 507,663 Total expenses 224,246 23,693 13,391 62,970 24,406 348,706 18,683 5,925 373,314 Other, net — 34 149 2 895 1,080 (9,464 ) (508 ) (8,892 ) Net income (loss) before taxes $ 95,857 $ 45,314 $ 1,119 $ 13,379 $ 5,679 $ 161,348 $ (35,891 ) $ — $ 125,457 Depreciation and amortization $ 1,423 $ 151 $ 125 $ 1,268 $ 146 $ 3,113 $ 371 $ — $ 3,484 Total assets 2,425,529 35,861 82,375 125,317 17,378,088 20,047,170 379,562 (326,313 ) 20,100,419 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of components of income tax expense | The components of income tax expense (benefit) were as follows: For the three months ended For the six months ended For the three months ended For the three months ended Successor Predecessor Net income (loss) before income taxes $ (168,763 ) $ (246,093 ) $ (13,738 ) $ 125,457 Provision (benefit) for income taxes (940 ) (14,275 ) 1,086 1,137 Effective tax provision rate 0.56 % 5.80 % (7.91 )% 0.91 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of basic earnings per share | The following tables reconcile the numerators and denominators used in the computations of both basic and diluted earnings per share for the Successor periods (in thousands, except share data and per share amounts): For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Basic net earnings (loss) per share: Numerator Net loss $ (167,823 ) $ (231,818 ) $ (14,824 ) N/A Less: loss attributable to noncontrolling interest (1) (127,143 ) (182,645 ) (17,089 ) N/A Net income (loss) $ (40,680 ) $ (49,173 ) $ 2,265 N/A Denominator Weighted average shares of Class A Common Stock outstanding—basic 62,379,041 61,580,900 59,881,714 N/A Basic net earnings (loss) per share $ (0.65 ) $ (0.80 ) $ 0.04 N/A (1) The Class A LLC Units of FoA Equity, held by the Continuing Unitholders, which comprise the noncontrolling interest in the Company, represents a participating security. Therefore, the numerator was adjusted to reduce net income by the amount of net income attributable to noncontrolling interest. Additionally, the Class B Common Stock does not participate in earnings or losses of the Company and therefore is not a participating security. The Class B Common Stock has not been included in either the basic or diluted net income per share calculations. Loss attributable to noncontrolling interest includes an allocation of expense related to the Amended and Restated Long-Term Incentive Plan (“A&R MLTIP”). |
Summary of diluted earnings per share | For the three months ended June 30, 2022 For the six months ended June 30, 2022 For the three months ended June 30, 2021 For the three months ended Successor Predecessor Diluted net loss per share: Numerator Net income (loss) attributable to holders of Class A Common Stock $ (40,680 ) $ (49,173 ) $ 2,265 N/A Reallocation of net income (loss) assuming exchange of Class A LLC Units (1) (90,293 ) (139,756 ) (12,001 ) N/A Net loss attributable to holders of Class A Common Stock—diluted $ (130,973 ) $ (188,929 ) $ (9,736 ) N/A Denominator Weighted average shares of Class A Common Stock outstanding—basic 62,379,041 61,580,900 59,881,714 N/A Effect of dilutive securities: Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) 125,439,184 127,048,176 131,318,286 N/A Weighted average shares of Class A Common Stock outstanding—diluted 187,818,225 188,629,076 191,200,000 N/A Diluted net loss per share $ (0.70 ) $ (1.00 ) $ (0.05 ) N/A (1) This adjustment assumes the after-tax elimination of noncontrolling interest due to the assumed exchange of all Class A LLC Units outstanding for shares of Class A Common Stock in FoA as of the beginning of the period following the if-converted method for calculating diluted net income (loss) per share. Following the terms of the A&R LLC Agreement, the Class A LLC unitholders will bear approximately 85% of the cost of any vesting associated with the Replacement RSUs and Earnout Right RSUs prior to any distribution by the Company to such Class A LLC unitholders. The remaining compensation cost associated with the Replacement RSUs and Earnout Right RSUs will be born by FoA for the share attributable to Blackstone Tactical Opportunities Fund (Urban Feeder) – NQ L.P., a Delaware limited partnership (“Blocker”). As a result of the application of the if-converted method in arriving at diluted net loss per share, the entirety of the compensation cost associated with vesting of the Replacement RSUs and Earnout Right RSUs is assumed to be included in the net loss attributable to holders of the Company’s Class A Common Stock. (2) The diluted weighted average shares outstanding of Class A Common Stock includes the effects of the if-converted method to reflect the provisions of the Exchange Agreement and assumes the Class A LLC Units held by Continuing Unitholders, representing the noncontrolling interest, exchange their units on a one-for-one basis for shares of Class A Common Stock in FoA. In addition to the Class A LLC Units, the Company also had RSUs outstanding during the Successor three and six months ended June 30, 2022. The effects of the RSUs following the treasury stock method have been excluded from the computation of diluted net loss per share given that the if-converted method was determined to be more dilutive. |
Variable Interest Entities an_3
Variable Interest Entities and Securitizations - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 28, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Finance of america commercial LLC [Member] | Cavatica Asset Participation Trust [Member] | |||||||
Variable Interest Entities and Securitizations [Line Items] | |||||||
Percentage of beneficial interest in securitized trust | 5% | ||||||
FAM [Member] | HAWT 2021-INV1 securitization [Member] | |||||||
Variable Interest Entities and Securitizations [Line Items] | |||||||
Percentage of beneficial interest in securitized trust | 5% | ||||||
FAM Mortgage Loan [Member] | |||||||
Variable Interest Entities and Securitizations [Line Items] | |||||||
Charge off expenses on transferred mortgage loan | $ 0 | $ 0 | $ 0 | $ 0 | |||
Repayments of debt | $ 488,200 | ||||||
FAM Mortgage Loan [Member] | Principal [Member] | Loans Receivable [Member] | |||||||
Variable Interest Entities and Securitizations [Line Items] | |||||||
Repayments of debt | $ 506,600 | ||||||
FAM Mortgage Loan [Member] | FAM [Member] | Financial Asset 60 Days Or Less Past Due [Member] | |||||||
Variable Interest Entities and Securitizations [Line Items] | |||||||
Mortgage loans transferred to unconsolidated securitization trusts amount | 1,100 | 1,100 | $ 400 | ||||
Agricultural Loans [Member] | Cavatica Asset Participation Trust [Member] | |||||||
Variable Interest Entities and Securitizations [Line Items] | |||||||
Consolidated balance Of Agricultural loans | 167,100 | 167,100 | 118,600 | ||||
Agricultural Loans [Member] | Cavatica Asset Participation Trust [Member] | Nonrecourse [Member] | |||||||
Variable Interest Entities and Securitizations [Line Items] | |||||||
Liability transferred to the Variable interest entity Fair Value amount | $ 162,500 | $ 162,500 | $ 111,700 |
Variable Interest Entities an_4
Variable Interest Entities and Securitizations - Summary of the Assets and Liabilities of the Company's Consolidated Variable Interest Entities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
ASSETS | ||||
Restricted cash | $ 354,803 | $ 322,403 | ||
Loans held for investment, subject to nonrecourse debt, at fair value | 1,058,410 | 1,031,328 | ||
TOTAL ASSETS | 21,736,226 | 21,788,946 | $ 22,227,938 | $ 20,100,419 |
LIABILITIES | ||||
Nonrecourse debt, at fair value | 6,752,084 | 6,111,242 | ||
TOTAL LIABILITIES | 20,873,026 | 20,705,936 | ||
Retained bonds and beneficial interests eliminated in consolidation | (270,412) | (231,229) | ||
TOTAL CONSOLIDATED LIABILITIES | 6,447,835 | 5,857,497 | ||
Variable Interest Entity, Primary Beneficiary | ||||
ASSETS | ||||
Restricted cash | 342,575 | 311,652 | ||
Loans held for investment, subject to nonrecourse debt, at fair value | 6,433,638 | 6,099,607 | ||
Other assets, net | 68,239 | 67,593 | ||
TOTAL ASSETS | 6,844,452 | 6,478,852 | ||
LIABILITIES | ||||
Nonrecourse debt, at fair value | 6,447,237 | 5,857,069 | ||
Payables and other liabilities | 598 | 428 | ||
TOTAL LIABILITIES | 6,447,835 | 5,857,497 | ||
Variable Interest Entity, Primary Beneficiary | Asset and Liabilities of Consolidated VIE | ||||
ASSETS | ||||
Restricted cash | 342,575 | 311,652 | ||
Loans held for investment, subject to nonrecourse debt, at fair value | 6,433,638 | 6,099,607 | ||
Other assets, net | 68,239 | 67,593 | ||
TOTAL ASSETS | 6,844,452 | 6,478,852 | ||
LIABILITIES | ||||
Nonrecourse debt, at fair value | 6,717,649 | 6,088,298 | ||
Payables and other liabilities | 598 | 428 | ||
TOTAL LIABILITIES | $ 6,718,247 | $ 6,088,726 |
Variable Interest Entities an_5
Variable Interest Entities and Securitizations - Summary of the Outstanding Collateral and Certificate Balances for Securitization Trusts (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Schedule Of Collateral And Certificate Balances For Securitization Trusts [Line Items] | ||||
Total certificate balances | $ 21,736,226 | $ 21,788,946 | $ 22,227,938 | $ 20,100,419 |
Unconsolidated Securitization Trusts | ||||
Schedule Of Collateral And Certificate Balances For Securitization Trusts [Line Items] | ||||
Total certificate balances | 1,031,095 | 1,085,340 | ||
Unconsolidated Securitization Trusts | Asset Pledged as Collateral | ||||
Schedule Of Collateral And Certificate Balances For Securitization Trusts [Line Items] | ||||
Total certificate balances | $ 1,031,095 | $ 1,085,340 |
Fair Value - Summary of Reverse
Fair Value - Summary of Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations (Detail) - Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Conditional repayment rate [Member] | Weighted Average [Member] | ||
Fair Value Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 23% | 20.80% |
Loss frequency [Member] | Weighted Average [Member] | ||
Fair Value Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 3.90% | 4.50% |
Loss severity [Member] | Minimum [Member] | ||
Fair Value Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 2.40% | 3.10% |
Loss severity [Member] | Maximum [Member] | ||
Fair Value Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 6.90% | 7.70% |
Loss severity [Member] | Weighted Average [Member] | ||
Fair Value Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 2.60% | 3.30% |
Discount rate [Member] | Weighted Average [Member] | ||
Fair Value Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 4.20% | 2.40% |
Average draw rate | 1.20% | 1.10% |
Fair Value - Summary of HECM Bu
Fair Value - Summary of HECM Buyouts (Detail) - HECM Buyouts [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Loss frequency [Member] | ||
Fair Value HECM Buyouts Securitized Nonperforming Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 23.10% | 25% |
Minimum [Member] | Loss severity [Member] | ||
Fair Value HECM Buyouts Securitized Nonperforming Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 2.40% | 3.10% |
Maximum [Member] | Loss frequency [Member] | ||
Fair Value HECM Buyouts Securitized Nonperforming Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 100% | 100% |
Maximum [Member] | Loss severity [Member] | ||
Fair Value HECM Buyouts Securitized Nonperforming Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 6.90% | 7.70% |
Weighted Average [Member] | Conditional repayment rate [Member] | ||
Fair Value HECM Buyouts Securitized Nonperforming Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 39.70% | 41.20% |
Weighted Average [Member] | Loss frequency [Member] | ||
Fair Value HECM Buyouts Securitized Nonperforming Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 51.40% | 59.50% |
Weighted Average [Member] | Loss severity [Member] | ||
Fair Value HECM Buyouts Securitized Nonperforming Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 3.70% | 4.30% |
Weighted Average [Member] | Discount rate [Member] | ||
Fair Value HECM Buyouts Securitized Nonperforming Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 7.70% | 4.10% |
Fair Value - Summary of HECM _2
Fair Value - Summary of HECM Buyouts Securitized (Detail) - HECM Buyouts Securitized [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Loss severity [Member] | ||
Fair Value HECM Buyouts Securitized Performing Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 2.40% | 3.10% |
Maximum [Member] | Loss severity [Member] | ||
Fair Value HECM Buyouts Securitized Performing Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 6.90% | 7.70% |
Weighted Average [Member] | Conditional repayment rate [Member] | ||
Fair Value HECM Buyouts Securitized Performing Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 13.40% | 13.30% |
Weighted Average [Member] | Loss severity [Member] | ||
Fair Value HECM Buyouts Securitized Performing Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 5.70% | 7.70% |
Weighted Average [Member] | Discount rate [Member] | ||
Fair Value HECM Buyouts Securitized Performing Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 6.80% | 3.70% |
Weighted Average [Member] | Weighted average remaining life in years [Member] | ||
Fair Value HECM Buyouts Securitized Performing Mortgage Loans Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted average remaining life in years | 9 years | 9 years |
Fair Value - Summary of Non-Age
Fair Value - Summary of Non-Agency Reverse Mortgage Securitized (Detail) - Non Agency Reverse Mortgage Securitized [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Loan to value [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loan to value | 0.10% | 0.10% |
Minimum [Member] | Home price appreciation [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Home price appreciation | 10.10% | 4.60% |
Maximum [Member] | Loan to value [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loan to value | 73% | 64.70% |
Maximum [Member] | Home price appreciation [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Home price appreciation | 11% | 14% |
Weighted Average [Member] | Weighted average remaining life in years [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 9 years 3 months 18 days | 7 years 6 months |
Weighted Average [Member] | Loan to value [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loan to value | 42.90% | 43.40% |
Weighted Average [Member] | Conditional repayment rate [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 14.70% | 18.60% |
Weighted Average [Member] | Loss severity [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 10% | 10% |
Weighted Average [Member] | Home price appreciation [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Home price appreciation | 4.90% | 4.70% |
Weighted Average [Member] | Discount rate [Member] | ||
Fair Value Non Agency Reverse Mortgage Loan Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 6.20% | 3.60% |
Fair Value - Summary of Fix & F
Fair Value - Summary of Fix & Flip - Securitized Commercial Mortgage Loans (Detail) - Fix Flip Securitized Commercial Mortgage Loans [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Loss frequency [Member] | ||
Fair Value Fix And Flip Mortgage Loan Securitized Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 0.30% | |
Maximum [Member] | Loss frequency [Member] | ||
Fair Value Fix And Flip Mortgage Loan Securitized Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 69% | |
Weighted Average [Member] | Prepayment Rate [Member] | ||
Fair Value Fix And Flip Mortgage Loan Securitized Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (SMM) | 10.60% | 14.10% |
Weighted Average [Member] | Discount rate [Member] | ||
Fair Value Fix And Flip Mortgage Loan Securitized Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 8.90% | 5.70% |
Weighted Average [Member] | Loss frequency [Member] | ||
Fair Value Fix And Flip Mortgage Loan Securitized Held For Investment Subject To Nonrecourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 0.50% | 0.60% |
Fair Value - Summary of Invento
Fair Value - Summary of Inventory Buyouts (Detail) - Inventory Buyouts [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Loss frequency [Member] | ||
Fair Value Inventory Buyouts Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 23.10% | |
Minimum [Member] | Loss severity [Member] | ||
Fair Value Inventory Buyouts Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 2.40% | 3.10% |
Maximum [Member] | Loss frequency [Member] | ||
Fair Value Inventory Buyouts Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 100% | |
Maximum [Member] | Loss severity [Member] | ||
Fair Value Inventory Buyouts Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 6.90% | 7.70% |
Weighted Average [Member] | Conditional repayment rate [Member] | ||
Fair Value Inventory Buyouts Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 41.20% | 43.20% |
Weighted Average [Member] | Loss frequency [Member] | ||
Fair Value Inventory Buyouts Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 47.40% | 59.40% |
Weighted Average [Member] | Loss severity [Member] | ||
Fair Value Inventory Buyouts Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 4.70% | 3.80% |
Weighted Average [Member] | Discount rate [Member] | ||
Fair Value Inventory Buyouts Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 7.70% | 4.10% |
Fair Value - Summary of Non-A_2
Fair Value - Summary of Non-Agency Reverse Mortgage Loans (Detail) - Non Agency Reverse Mortgage Loans [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Loan to value [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loan to value | 2.90% | 0.20% |
Minimum [Member] | Home price appreciation [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Home price appreciation | 10.10% | 4.60% |
Maximum [Member] | Loan to value [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loan to value | 68.90% | 68.70% |
Maximum [Member] | Home price appreciation [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Home price appreciation | 11% | 14% |
Weighted Average [Member] | Weighted average remaining life in years [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 10 years 9 months 18 days | 9 years 2 months 12 days |
Weighted Average [Member] | Loan to value [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loan to value | 47.30% | 47.80% |
Weighted Average [Member] | Conditional repayment rate [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 13.10% | 14.80% |
Weighted Average [Member] | Loss severity [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss severity | 10% | 10% |
Weighted Average [Member] | Home price appreciation [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Home price appreciation | 4.60% | 4.40% |
Weighted Average [Member] | Discount rate [Member] | ||
Fair Value Non Agency Reverse Mortgage Loans Classified As Reverse Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 6.20% | 3.60% |
Fair Value - Summary of Commerc
Fair Value - Summary of Commercial Mortgage Fix and Flip Loans (Detail) - Commercial Mortgage Fix and Flip Loans [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Maximum [Member] | Discount rate [Member] | ||
Fair Value Fix And Flip Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 8.90% | 5.70% |
Minimum [Member] | Discount rate [Member] | ||
Fair Value Fix And Flip Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 13.50% | 10% |
Weighted Average [Member] | Prepayment Rate [Member] | ||
Fair Value Fix And Flip Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (SMM) | 11.60% | 11.90% |
Weighted Average [Member] | Discount rate [Member] | ||
Fair Value Fix And Flip Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 9% | 5.90% |
Weighted Average [Member] | Loss frequency [Member] | ||
Fair Value Fix And Flip Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Loss frequency | 0.30% | 0.40% |
Fair Value - Summary of Comme_2
Fair Value - Summary of Commercial Mortgage Agricultural Loans (Detail) - Commercial Mortgage Agricultural Loans [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Prepayment Rate [Member] | ||
Fair Value Agricultural Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (SMM) | 9% | |
Minimum [Member] | Default Rate [Member] | ||
Fair Value Agricultural Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Default rate (CDR) | 0% | 0% |
Maximum [Member] | Prepayment Rate [Member] | ||
Fair Value Agricultural Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (SMM) | 100% | |
Maximum [Member] | Default Rate [Member] | ||
Fair Value Agricultural Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Default rate (CDR) | 1% | 0.70% |
Weighted Average [Member] | Discount rate [Member] | ||
Fair Value Agricultural Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 8.10% | 4.80% |
Weighted Average [Member] | Prepayment Rate [Member] | ||
Fair Value Agricultural Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (SMM) | 23.10% | 22.10% |
Weighted Average [Member] | Default Rate [Member] | ||
Fair Value Agricultural Loans Classified Under Mortgage Loans Held For Investment Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Default rate (CDR) | 1% | 0.90% |
Fair Value - Summary of Comme_3
Fair Value - Summary of Commercial Mortgage Single Rental Loans (Detail) - Commercial Mortgage Single Rental Loans [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Prepayment Rate [Member] | ||
Fair Value Single Rental Loan SRL Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (CPR) | 18.10% | 1% |
Minimum [Member] | Default Rate [Member] | ||
Fair Value Single Rental Loan SRL Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Default rate (CDR) | 1% | |
Maximum [Member] | Prepayment Rate [Member] | ||
Fair Value Single Rental Loan SRL Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (CPR) | 25% | 17.10% |
Maximum [Member] | Default Rate [Member] | ||
Fair Value Single Rental Loan SRL Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Default rate (CDR) | 57.20% | |
Weighted Average [Member] | Prepayment Rate [Member] | ||
Fair Value Single Rental Loan SRL Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (CPR) | 18.60% | 14.20% |
Weighted Average [Member] | Discount rate [Member] | ||
Fair Value Single Rental Loan SRL Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 6.50% | 3.30% |
Weighted Average [Member] | Default Rate [Member] | ||
Fair Value Single Rental Loan SRL Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Default rate (CDR) | 1% | 2.20% |
Fair Value - Summary of Comme_4
Fair Value - Summary of Commercial Mortgage Portfolio Lending (Detail) - Commercial Mortgage Portfolio Lending [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Prepayment Rate [Member] | ||
Fair Value Portfolio Mortgage Loans Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (CPR) | 0% | 0% |
Minimum [Member] | Default Rate [Member] | ||
Fair Value Portfolio Mortgage Loans Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Default rate (CDR) | 1% | |
Maximum [Member] | Prepayment Rate [Member] | ||
Fair Value Portfolio Mortgage Loans Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (CPR) | 22.10% | 14.50% |
Maximum [Member] | Default Rate [Member] | ||
Fair Value Portfolio Mortgage Loans Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Default rate (CDR) | 54% | |
Weighted Average [Member] | Prepayment Rate [Member] | ||
Fair Value Portfolio Mortgage Loans Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Prepayment rate (CPR) | 14.50% | 8.70% |
Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Portfolio Mortgage Loans Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 6.80% | 3.90% |
Weighted Average [Member] | Default Rate [Member] | ||
Fair Value Portfolio Mortgage Loans Classified Under Mortgage Loans Held For Sale Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Default rate (CDR) | 1% | 3.20% |
Fair Value - Summary of Informa
Fair Value - Summary of Information Regarding The Servicing Portfolio of Retained MSRs (Detail) | Jun. 30, 2022 | Dec. 31, 2021 |
Servicing Portfolio Of Retained Mortgage Servicing Rights [Abstract] | ||
Capitalization servicing rate | 1.20% | 1.10% |
Capitalization servicing multiple | 4.90% | 4.40% |
Weighted-average servicing fee (in basis points) | 25% | 25% |
Fair Value - Summary of Mortgag
Fair Value - Summary of Mortgage Servicing Rights (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value [Line Items] | ||
Discount rate | 3.32% | 3.03% |
Mortgage Servicing Rights [Member] | Minimum [Member] | Weighted Average Prepayment Speed [Member] | ||
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value [Line Items] | ||
Weighted average prepayment speed (CPR) | 0.10% | 0% |
Mortgage Servicing Rights [Member] | Minimum [Member] | Weighted average delinquency rate [Member] | ||
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value [Line Items] | ||
Weighted average delinquency rate | 0.80% | 0.80% |
Mortgage Servicing Rights [Member] | Maximum [Member] | Weighted Average Prepayment Speed [Member] | ||
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value [Line Items] | ||
Weighted average prepayment speed (CPR) | 12.30% | 12.80% |
Mortgage Servicing Rights [Member] | Maximum [Member] | Weighted average delinquency rate [Member] | ||
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value [Line Items] | ||
Weighted average delinquency rate | 4.60% | 14.30% |
Mortgage Servicing Rights [Member] | Weighted Average [Member] | Weighted Average Prepayment Speed [Member] | ||
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value [Line Items] | ||
Weighted average prepayment speed (CPR) | 6.80% | 8.30% |
Mortgage Servicing Rights [Member] | Weighted Average [Member] | Discount rate [Member] | ||
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value [Line Items] | ||
Discount rate | 9.60% | 8.50% |
Mortgage Servicing Rights [Member] | Weighted Average [Member] | Weighted average delinquency rate [Member] | ||
Servicing Assets And Servicing Liabilities At Fair Value Assumptions Used To Estimate Fair Value [Line Items] | ||
Weighted average delinquency rate | 1.40% | 1.30% |
Fair Value - Summary Of The Est
Fair Value - Summary Of The Estimated Change In The Fair Value Of MSRs From Adverse Changes In The Significant Assumptions (Detail) - Mortgage Servicing Rights [Member] $ in Thousands | Jun. 30, 2022 USD ($) |
Servicing Assets And Servicing Liabilities At Fair Value Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Impact on fair value of 10% adverse change, Weighted-Average Prepayment Speed | $ (8,958) |
Impact on fair value of 20% adverse change, Weighted-Average Prepayment Speed | (17,439) |
Impact on fair value of 10% adverse change, Discount Rate | (15,042) |
Impact on fair value of 20% adverse change, Discount Rate | (28,909) |
Impact on fair value of 10% adverse change, Weighted Average Delinquency Rate | (467) |
Impact on fair value of 20% adverse change, Weighted Average Delinquency Rate | $ (934) |
Fair Value - Summary of HMBS Re
Fair Value - Summary of HMBS Related Obligations (Detail) - HMBS Related Obligations [Member] - Weighted Average [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Conditional repayment rate [Member] | ||
Fair Value HMBS Related Obligations Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 23.10% | 20.80% |
Discount rate [Member] | ||
Fair Value HMBS Related Obligations Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 4.10% | 2.30% |
Fair Value - Summary of Perform
Fair Value - Summary of Performing/Nonperforming HECM securitizations (Details) - Non Recourse Debt [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Weighted average remaining life in years [Member] | Minimum [Member] | Performing/Nonperforming HECM securitizations | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted average remaining life in years | 3 months 18 days | 2 months 12 days |
Weighted average remaining life in years [Member] | Minimum [Member] | Securitized Non-Agency Reverse | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted average remaining life in years | 7 months 6 days | 1 year |
Weighted average remaining life in years [Member] | Maximum [Member] | Performing/Nonperforming HECM securitizations | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted average remaining life in years | 7 months 6 days | 9 months 18 days |
Weighted average remaining life in years [Member] | Maximum [Member] | Securitized Non-Agency Reverse | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted average remaining life in years | 10 years 6 months | 2 years 3 months 18 days |
Weighted average remaining life in years [Member] | Weighted Average [Member] | Performing/Nonperforming HECM securitizations | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted average remaining life in years | 6 months | 6 months |
Weighted average remaining life in years [Member] | Weighted Average [Member] | Securitized Non-Agency Reverse | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted average remaining life in years | 4 years | 1 year 7 months 6 days |
Conditional repayment rate [Member] | Minimum [Member] | Performing/Nonperforming HECM securitizations | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 20.50% | 30.80% |
Conditional repayment rate [Member] | Minimum [Member] | Securitized Non-Agency Reverse | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 7.60% | 18.40% |
Conditional repayment rate [Member] | Maximum [Member] | Performing/Nonperforming HECM securitizations | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 36.20% | 54.40% |
Conditional repayment rate [Member] | Maximum [Member] | Securitized Non-Agency Reverse | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 37.40% | 35.90% |
Conditional repayment rate [Member] | Weighted Average [Member] | Performing/Nonperforming HECM securitizations | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 26.30% | 43.50% |
Conditional repayment rate [Member] | Weighted Average [Member] | Securitized Non-Agency Reverse | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Conditional repayment rate | 17.20% | 28.20% |
Discount rate [Member] | Weighted Average [Member] | Performing/Nonperforming HECM securitizations | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 6.30% | 2.30% |
Discount rate [Member] | Weighted Average [Member] | Securitized Non-Agency Reverse | ||
Fair Value Non Recourse Debt Instruments Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 5.90% | 2.20% |
Fair Value - Summary of Comme_5
Fair Value - Summary of Commercial Mortgage Loans (Details) - Commercial Mortgage Loans [Member] - Weighted Average [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Weighted average remaining life in months [Member] | ||
Fair Value Non Recourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted-average remaining life (in months) | 5 months 9 days | 4 months |
Weighted-average prepayment speed (SMM) [Member] | ||
Fair Value Non Recourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Weighted-average prepayment speed (SMM) | 13.90% | 14% |
Discount rate [Member] | ||
Fair Value Non Recourse Debt Measured On Recurring And Nonrecurring Basis Fair Value Measurement [Line Items] | ||
Discount rate | 6.30% | 3.10% |
Fair Value - Summary of Nonreco
Fair Value - Summary of Nonrecourse MSR Financing Liability (Details) - Non Recourse MSR Financing Liability [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | Weighted-average prepayment speed (CPR) [Member] | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Weighted average prepayment speed (CPR) | 1% | 2% |
Minimum [Member] | Discount rate | ||
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% | 8.10% |
Maximum [Member] | Weighted-average prepayment speed (CPR) [Member] | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Weighted average prepayment speed (CPR) | 7.20% | 11% |
Maximum [Member] | Discount rate | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Discount rate | 11.60% | 10.10% |
Weighted Average [Member] | Weighted-average prepayment speed (CPR) [Member] | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Weighted average prepayment speed (CPR) | 5.60% | 7.70% |
Weighted Average [Member] | Discount rate | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Discount rate | 9.70% | 9.10% |
Weighted Average [Member] | Weighted average delinquency rate [Member] | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Weighted average delinquency rate | 1.30% | 1.30% |
Fair Value - Summary Of The Rec
Fair Value - Summary Of The Recognized Assets And Liabilities That Are Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | $ 1,058,410 | $ 1,031,328 |
Mortgages Held-for-sale, Fair Value Disclosure | 1,229,594 | 2,052,378 |
Derivative assets | 55,186 | 48,870 |
Nonrecourse commercial loan financing liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecourse commercial loan financing liability | 10,882,441 | 10,556,054 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,000 | 6,000 |
Retained beneficial interests | 46,593 | 55,614 |
Total assets | 20,232,992 | 20,396,380 |
HMBS related obligations | 10,745,879 | 10,422,358 |
Nonrecourse debt | 6,447,238 | 5,857,069 |
Nonrecourse MSR financing liability | 142,382 | 142,435 |
Deferred purchase price liabilities | 4,852 | 12,852 |
TRA Obligation | 13,925 | 29,380 |
Total liabilities | 17,528,754 | 16,608,007 |
Fair Value, Recurring [Member] | Nonrecourse commercial loan financing liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecourse commercial loan financing liability | 162,464 | 111,738 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 36,802 | 22,834 |
Total liabilities | 4,484 | 30,490 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 963,859 | 1,888,441 |
Derivative liabilities | 7,530 | |
Total liabilities | 7,530 | 1,685 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,000 | 6,000 |
Retained beneficial interests | 46,593 | 55,614 |
Total assets | 19,232,331 | 18,485,105 |
HMBS related obligations | 10,745,879 | 10,422,358 |
Nonrecourse debt | 6,447,238 | 5,857,069 |
Nonrecourse MSR financing liability | 142,382 | 142,435 |
Deferred purchase price liabilities | 4,852 | 12,852 |
TRA Obligation | 13,925 | 29,380 |
Total liabilities | 17,516,740 | 16,575,832 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Nonrecourse commercial loan financing liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonrecourse commercial loan financing liability | 162,464 | 111,738 |
Forward Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 7,530 | |
Forward Commitments Tbas And Treasury Futures And Forward Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,685 | |
Forward Commitments Tbas And Treasury Futures And Forward Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Forward Commitments Tbas And Treasury Futures And Forward Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,685 | |
Forward Commitments Tbas And Treasury Futures And Forward Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Interest Rate Swap And Futures Contracts [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 24,993 | |
Interest Rate Swap And Futures Contracts [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 24,993 | |
Interest Rate Swap And Futures Contracts [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Interest Rate Swap And Futures Contracts [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Warrant [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2,301 | 5,497 |
Warrant [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2,301 | 5,497 |
Warrant [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Warrant [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Loans Held For Investment Subject To Hmbs Related Obligation [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 10,882,441 | 10,556,054 |
Loans Held For Investment Subject To Hmbs Related Obligation [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 10,882,441 | 10,556,054 |
Mortgage Loans Held For Investment Reverse Mortgage Loans [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 6,149,706 | 5,823,301 |
Mortgage Loans Held For Investment Reverse Mortgage Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 6,149,706 | 5,823,301 |
Mortgage Loans Held For Investment Fix And Flip Mortgage Loans [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 77,544 | |
Mortgage Loans Held For Investment Fix And Flip Mortgage Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 77,544 | |
Agricultural Loans [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 31,315 | 27,791 |
Agricultural Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 31,315 | 27,791 |
Mortgage Loans Held For Sale Residential Mortgage Loans [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 996,345 | 1,902,952 |
Mortgage Loans Held For Sale Residential Mortgage Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 959,472 | 1,885,627 |
Mortgage Loans Held For Sale Residential Mortgage Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 36,873 | 17,325 |
Mortgage Loans Held For Sale SRL [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 195,615 | 98,852 |
Mortgage Loans Held For Sale SRL [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 195,615 | 98,852 |
Mortgage Loans Held For Sale Portfolio [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 37,634 | 50,574 |
Mortgage Loans Held For Sale Portfolio [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 37,634 | 50,574 |
Mortgage Loans Held For Sale Portfolio Fix And Flip Mortgage Loans [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 62,933 | |
Mortgage Loans Held For Sale Portfolio Fix And Flip Mortgage Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 62,933 | |
Mortgage Servicing Rights [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
MSRs | 359,006 | 427,942 |
Mortgage Servicing Rights [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
MSRs | 359,006 | 427,942 |
Interest Rate Swap Futures [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2,183 | |
Interest Rate Swap Futures [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2,183 | |
Interest Rate Swap Futures [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Irlcs And Lpcs [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 14,126 | 24,786 |
Irlcs And Lpcs [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 129 | 1,564 |
Irlcs And Lpcs [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 13,997 | 23,222 |
Forward Commitments Tbas And Treasury Futures And Forward Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4,258 | 1,250 |
Forward Commitments Tbas And Treasury Futures And Forward Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4,258 | 1,250 |
Interest Rate Swap And Futures Contracts [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 36,802 | 22,834 |
Interest Rate Swap And Futures Contracts [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 36,802 | 22,834 |
Interest Rate Swap And Futures Contracts [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Nonrecourse [Member] | Mortgage Loans Held For Investment Reverse Mortgage Loans [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 949,551 | 940,604 |
Nonrecourse [Member] | Mortgage Loans Held For Investment Reverse Mortgage Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 949,551 | 940,604 |
Nonrecourse [Member] | Mortgage Loans Held For Investment Fix And Flip Mortgage Loans [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | 451,056 | 394,893 |
Nonrecourse [Member] | Mortgage Loans Held For Investment Fix And Flip Mortgage Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Receivable, Fair Value Disclosure | $ 451,056 | $ 394,893 |
Fair Value - Summary of Signif
Fair Value - Summary of Significant Unobservable Inputs used in the Fair value Measurement of Retained Bonds (Details) - Retained Bonds [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Measurement Input, Expected Term [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Weighted average remaining life (in years) | 24 years 6 months | 25 years |
Measurement Input, Expected Term [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Weighted average remaining life (in years) | 2 years 6 months | 2 years 7 months 6 days |
Measurement Input, Expected Term [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Weighted average remaining life (in years) | 5 years | 5 years 1 month 6 days |
Measurement Input, Discount Rate [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 11.70% | 8.20% |
Measurement Input, Discount Rate [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 10% | 1.90% |
Measurement Input, Discount Rate [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 5.70% | 2.70% |
Fair Value - Fair Value, Assets
Fair Value - Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Mortgage loans held for investment | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 11,891,142 | $ 11,171,736 | $ 10,659,984 | $ 11,587,382 |
Total gain or losses included in earnings | (34,147) | 153,690 | 132,499 | (70,042) |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | 1,928,290 | 1,428,976 | 1,143,109 | 3,776,445 |
Sales and settlements | (671,743) | (615,958) | (534,738) | (1,284,367) |
Transfers in/(out) between categories | (1,172,691) | (597,327) | (229,118) | (2,068,567) |
Ending balance | 11,940,851 | 11,541,117 | 11,171,736 | 11,940,851 |
Mortgage loans held for investment, subject to nonrecourse debt | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 6,235,990 | 5,291,444 | 5,396,167 | 6,218,194 |
Total gain or losses included in earnings | (257,874) | 80,408 | (37,757) | (571,594) |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | 28,206 | 22,041 | 21,064 | 58,548 |
Sales and settlements | (573,913) | (522,141) | (360,128) | (1,160,189) |
Transfers in/(out) between categories | 1,168,353 | 552,869 | 272,098 | 2,055,803 |
Ending balance | 6,600,762 | 5,424,621 | 5,291,444 | 6,600,762 |
Mortgage loans held for sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 229,045 | 135,681 | 152,854 | 166,750 |
Total gain or losses included in earnings | (4,163) | 1,816 | 2,764 | (11,203) |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | 395,502 | 256,438 | 175,551 | 791,522 |
Sales and settlements | (353,460) | (275,956) | (152,579) | (683,050) |
Transfers in/(out) between categories | 3,198 | 42,909 | (42,909) | 6,103 |
Ending balance | 270,122 | 160,888 | 135,681 | 270,122 |
Derivative assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 2,736 | 38,574 | 88,660 | 23,222 |
Total gain or losses included in earnings | 11,261 | (3,066) | (50,040) | (9,225) |
Purchases, settlements and transfers: | ||||
Sales and settlements | (25) | (46) | ||
Ending balance | 13,997 | 35,483 | 38,574 | 13,997 |
Mortgage servicing rights | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 426,102 | 267,364 | 180,684 | 427,942 |
Total gain or losses included in earnings | (12,671) | (26,536) | 20,349 | 39,697 |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | 41,218 | 50,110 | 74,978 | 94,662 |
Sales and settlements | (95,643) | 0 | (8,647) | (203,295) |
Ending balance | 359,006 | 290,938 | 267,364 | 359,006 |
Retained Bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 50,875 | 0 | 55,614 | |
Total gain or losses included in earnings | (3,020) | 666 | (6,309) | |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | 15,078 | |||
Sales and settlements | (1,262) | (73) | (2,712) | |
Ending balance | 46,593 | 15,671 | 0 | 46,593 |
Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 6,000 | 9,470 | 18,934 | 6,000 |
Total gain or losses included in earnings | (5,000) | (3,470) | (9,464) | (5,000) |
Purchases, settlements and transfers: | ||||
Ending balance | $ 1,000 | $ 6,000 | $ 9,470 | $ 1,000 |
Fair Value - Fair Value, Liabil
Fair Value - Fair Value, Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
HMBS related obligations | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ (10,548,131) | $ (9,926,132) | $ (9,788,668) | $ (10,422,358) |
Total gains or losses included in earnings | 93,095 | (44,651) | (41,434) | 178,677 |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | (992,053) | (795,333) | (602,172) | (1,940,735) |
Sales and settlements | 701,210 | 597,892 | 506,142 | 1,438,537 |
Ending balance | (10,745,879) | (10,168,224) | (9,926,132) | (10,745,879) |
Derivative liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | (936) | (1,084) | ||
Purchases, settlements and transfers: | ||||
Sales and settlements | (175) | 148 | ||
Ending balance | (1,111) | (936) | ||
Deferred purchase price liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | (7,852) | (3,214) | (3,842) | (12,852) |
Total gains or losses included in earnings | 0 | (1,760) | (29) | |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | 0 | (7,000) | ||
Sales and settlements | 3,000 | 311 | 657 | 8,000 |
Ending balance | (4,852) | (11,663) | (3,214) | (4,852) |
Nonrecourse debt | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | (6,032,156) | (5,205,892) | (5,257,754) | (5,857,069) |
Total gains or losses included in earnings | 116,701 | (32,601) | (30,770) | 222,041 |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | (756,058) | (796,376) | (575,668) | (1,804,557) |
Sales and settlements | 224,275 | 674,266 | 658,300 | 992,347 |
Ending balance | (6,447,238) | (5,360,603) | (5,205,892) | (6,447,238) |
Nonrecourse commercial loan financing liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | (127,640) | (111,738) | ||
Total gains or losses included in earnings | (66) | 188 | ||
Purchases, settlements and transfers: | ||||
Purchases and additions, net | (57,157) | (117,815) | ||
Sales and settlements | 22,399 | 66,901 | ||
Ending balance | (162,464) | (162,464) | ||
Nonrecourse MSR financing liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | (163,981) | (22,051) | (14,088) | (142,435) |
Total gains or losses included in earnings | (337) | 4,123 | 390 | (16,375) |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | (1,050) | (47,201) | (8,353) | (6,792) |
Sales and settlements | 22,986 | 23,220 | ||
Transfers in/(out) between categories | 0 | 0 | ||
Ending balance | (142,382) | (65,129) | $ (22,051) | (142,382) |
TRA Liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | (29,380) | (29,380) | ||
Total gains or losses included in earnings | 15,455 | (860) | 15,455 | |
Purchases, settlements and transfers: | ||||
Purchases and additions, net | 0 | (31,950) | ||
Sales and settlements | 0 | |||
Ending balance | $ (13,925) | $ (32,810) | $ (13,925) |
Fair Value - Summary of the fai
Fair Value - Summary of the fair value and unpaid principal balance ("UPB") (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Estimated Fair Value | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | $ 10,882,441 | $ 10,556,054 |
Unpaid Principal Balance | 10,468,472 | 9,849,835 |
Mortgage Loans Held For Investment Subject To Nonrecourse Debt [Member] | Estimated Fair Value | Reverse Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 6,149,706 | 5,823,301 |
Unpaid Principal Balance | 6,053,167 | 5,165,479 |
Mortgage Loans Held For Investment Subject To Nonrecourse Debt [Member] | Estimated Fair Value | Commercial Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 451,056 | 394,893 |
Mortgage Loans Held For Investment Subject To Nonrecourse Debt [Member] | Unpaid Principal Balance | Commercial Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Unpaid Principal Balance | 451,981 | 388,788 |
Mortgage Loans Held For Investment [Member] | Estimated Fair Value | Reverse Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 949,551 | 940,604 |
Unpaid Principal Balance | 871,671 | 815,426 |
Mortgage Loans Held For Investment [Member] | Estimated Fair Value | Commercial Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 108,859 | 90,724 |
Mortgage Loans Held For Investment [Member] | Unpaid Principal Balance | Commercial Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Unpaid Principal Balance | 108,322 | 89,267 |
Mortgage Loans Held For Sale [Member] | Estimated Fair Value | Commercial Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 233,249 | 149,426 |
Mortgage Loans Held For Sale [Member] | Estimated Fair Value | Residential Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 996,345 | 1,902,952 |
Mortgage Loans Held For Sale [Member] | Unpaid Principal Balance | Commercial Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Unpaid Principal Balance | 239,108 | 145,463 |
Mortgage Loans Held For Sale [Member] | Unpaid Principal Balance | Residential Mortgage Loans [Member] | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Unpaid Principal Balance | 988,361 | 1,859,788 |
HMBS Related Obligations [Member] | Estimated Fair Value | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 10,745,879 | 10,422,358 |
HMBS Related Obligations [Member] | Unpaid Principal Balance | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Unpaid Principal Balance | 10,445,730 | 9,849,835 |
Non Recourse Debt [Member] | Estimated Fair Value | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 6,447,238 | 5,857,069 |
Non Recourse Debt [Member] | Unpaid Principal Balance | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Unpaid Principal Balance | 6,773,313 | 5,709,946 |
Nonrecourse Commercial Loan [Member] | Unpaid Principal Balance | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 162,464 | 111,738 |
Unpaid Principal Balance | 158,659 | 107,744 |
Nonrecourse Mortgage Service Rights [Member] | Unpaid Principal Balance | ||
Fair Value Summary Of The Fair Value And Unpaid Principal Balance Upb [Line Items] | ||
Estimated Fair Value | 142,382 | 142,435 |
Unpaid Principal Balance | $ 142,382 | $ 142,435 |
Fair Value - Summary of the com
Fair Value - Summary of the components of net fair value gains on mortgage loans and related obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Summary of the components of net fair value gains on mortgage loans and related obligations [Line Items] | ||||
Interest income on mortgage loans | $ 189,760 | $ 173,940 | $ 160,568 | $ 353,454 |
Change in fair value of mortgage loans | (469,818) | 84,983 | (51,346) | (977,145) |
Net fair value gains (losses) on loans | (280,058) | 258,923 | 109,222 | (623,691) |
Interest expense on related obligations | (124,603) | (113,474) | (119,201) | (231,246) |
Change in fair value of derivatives | 99,928 | (46,478) | 43,972 | 265,507 |
Change in fair value of related obligations | 306,346 | 32,180 | 42,670 | 601,478 |
Net fair value gains (losses) on related obligations | 281,671 | (127,772) | (32,559) | 635,739 |
Net fair value gains (losses) on loans and related obligations | $ 1,613 | $ 131,151 | $ 76,663 | $ 12,048 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Retained Bonds [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||
Additional Information [Line Items] | ||
Percentage of beneficial interest in securitized trust | 5% | |
Portfolio Lending Classified Under Mortgage Loans Held For Sale [Member] | Five Years [Member] | ||
Additional Information [Line Items] | ||
Debt instrument, Balloon structure period | 5% | |
Portfolio Lending Classified Under Mortgage Loans Held For Sale [Member] | Ten Years [Member] | ||
Additional Information [Line Items] | ||
Debt instrument, Balloon structure period | 10% | |
Portfolio Lending Classified Under Mortgage Loans Held For Sale [Member] | Thirty Years [Member] | ||
Additional Information [Line Items] | ||
Debt instrument, Balloon structure period | 30% | |
Maximum [Member] | ||
Additional Information [Line Items] | ||
Discount rates utilized to value deferred purchase price liability | 35% | 35% |
Maximum [Member] | Fix And Flip Loans Classified Under Mortgage Loans Held For Investment Subject To Nonrecourse Debt [Member] | ||
Additional Information [Line Items] | ||
Debt instrument term | 24 months | |
Maximum [Member] | Agricultural Loans [Member] | ||
Additional Information [Line Items] | ||
Debt instrument term | 17 months | |
Maximum [Member] | Fix And Flip Loans Classified Under Mortgage Loans Held For Investment [Member] | ||
Additional Information [Line Items] | ||
Debt instrument term | 24 months | |
Minimum [Member] | Fix And Flip Loans Classified Under Mortgage Loans Held For Investment Subject To Nonrecourse Debt [Member] | ||
Additional Information [Line Items] | ||
Debt instrument term | 9 months | |
Minimum [Member] | Agricultural Loans [Member] | ||
Additional Information [Line Items] | ||
Debt instrument term | 7 months | |
Minimum [Member] | Fix And Flip Loans Classified Under Mortgage Loans Held For Investment [Member] | ||
Additional Information [Line Items] | ||
Debt instrument term | 9 months | |
Mortgage Servicing Rights Financing Liability [Member] | ||
Additional Information [Line Items] | ||
Cumulative Percentage Change In Fair Value Of Servicing Rights Liabilities | 10% | |
TRA Obligation [Member] | Measurement Input, Discount Rate [Member] | ||
Additional Information [Line Items] | ||
TRA obligation measurement input | 20.4 | 13.5 |
Warrant [Member] | ||
Additional Information [Line Items] | ||
Exercise price of warrant (in dollars per share) | $ 11.5 |
Reverse Mortgage Portfolio Co_3
Reverse Mortgage Portfolio Composition - Summary of the Composition and the Remaining UPBs of the Reverse Mortgage Loan Portfolio (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | ||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ 10,468,472 | $ 9,849,835 | |
Total reverse mortgage loans held for investment | 871,671 | 815,426 | |
Total reverse mortgage loans held for sale | 6,053,167 | 5,165,479 | |
Total serviced reverse mortgage loan portfolio | 17,470,281 | 15,897,205 | |
owned reverse mortgage portfolio | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total serviced reverse mortgage loan portfolio | 17,393,310 | 15,830,740 | |
Loans reclassified as government guaranteed receivable | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total serviced reverse mortgage loan portfolio | 63,402 | 48,625 | |
Loans serviced for others | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total serviced reverse mortgage loan portfolio | 13,569 | 17,840 | |
Non Performing HECM Buyouts | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total reverse mortgage loans held for investment, subject to nonrecourse debt | 603,189 | 590,729 | |
Non-agency reverse mortgages | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total reverse mortgage loans held for sale | 5,158,345 | 4,285,661 | |
Performing HECM buyouts | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total reverse mortgage loans held for sale | 291,633 | 289,089 | |
Non-agency reverse mortgages | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total reverse mortgage loans held for investment | 534,866 | 432,144 | |
Loans not securitized | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total reverse mortgage loans held for investment | [1] | 230,346 | 266,723 |
Unpoolable loans | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total reverse mortgage loans held for investment | [2] | 97,939 | 104,551 |
Unpoolable tails | |||
Schedule of serviced reverse mortgage portfolio [Line Items] | |||
Total reverse mortgage loans held for investment | $ 8,520 | $ 12,008 | |
[1]Loans not securitized represent primarily newly originated loans.[2]Unpoolable loans represent primarily loans that have reached 98% of their MCA. |
Reverse Mortgage Portfolio Co_4
Reverse Mortgage Portfolio Composition - Summary of the Composition and the Remaining UPBs of the Reverse Mortgage Loan Portfolio (Parenthetical) (Detail) | Jun. 30, 2022 |
Maximum | |
Schedule of serviced reverse mortgage portfolio [Line Items] | |
Percentage of unpoolable loan | 98% |
Reverse Mortgage Portfolio Co_5
Reverse Mortgage Portfolio Composition - Summarizes the Owned Reverse Mortgage Portfolio by Product Type (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Owned Reverse Mortgage Portfolio [Line Items] | ||
Total owned reverse mortgage portfolio | $ 17,393,310 | $ 15,830,740 |
Fixed rate loans | ||
Schedule Of Owned Reverse Mortgage Portfolio [Line Items] | ||
Total owned reverse mortgage portfolio | 5,891,343 | 5,384,865 |
Adjustable rate loans | ||
Schedule Of Owned Reverse Mortgage Portfolio [Line Items] | ||
Total owned reverse mortgage portfolio | $ 11,501,967 | $ 10,445,875 |
Reverse Mortgage Portfolio Co_6
Reverse Mortgage Portfolio Composition - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Reverse Mortgages Portfolio Composition [Abstract] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 546.9 | $ 599.1 |
Loans Held for Investment, Su_5
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value - Schedule of Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans Held For Investment Subject To HMBS Related Obligations Fair Value [Line Items] | ||
Loans held for investment, subject to HMBS related obligations—UPB | $ 10,468,472 | $ 9,849,835 |
Fair value adjustments | 413,969 | 706,219 |
Total loans held for investment, subject to HMBS related obligations, at fair value | $ 10,882,441 | $ 10,556,054 |
Loans Held for Investment, Su_6
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans held for investment, subject to nonrecourse debt—UPB: | ||
Fair value adjustments | $ 95,614 | $ 663,927 |
Total loans held for investment, at fair value | 6,600,762 | 6,218,194 |
Reverse mortgage loans | ||
Loans held for investment, subject to nonrecourse debt—UPB: | ||
Mortgage loans held for investment, subject to nonrecourse debt | 6,053,167 | 5,165,479 |
Commercial mortgage loans | ||
Loans held for investment, subject to nonrecourse debt—UPB: | ||
Mortgage loans held for investment, subject to nonrecourse debt | $ 451,981 | $ 388,788 |
Loans Held for Inual Status (De
Loans Held for Inual Status (Detailvestment, Subject to Nonrecourse Debt, at Fair Value - Schedule of Mortgage Loans Held For Investment, Subject to Nonrecourse Debt that Were Greater Than 90 Days Past Due and on Non-Accr) - Loans 90 Days Or More Past Due And On Non Accrual Status [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans 90 days or more past due and on non-accrual status | ||
Mortgage loans held for investment, Total Fair value | $ 17,998 | $ 26,081 |
Mortgage loans held for investment, Total Aggregate Unpaid Principal Balance | 18,442 | 26,472 |
Mortgage loans held for investment, Total Difference | (444) | (391) |
Commercial Mortgage Loans [Member] | ||
Loans 90 days or more past due and on non-accrual status | ||
Mortgage loans held for investment, Total Fair value | 17,998 | 26,081 |
Mortgage loans held for investment, Total Aggregate Unpaid Principal Balance | $ 18,442 | $ 26,472 |
Loans Held for Investment, at_3
Loans Held for Investment, at Fair Value - Schedule of Mortgage Loans Held For Investment At Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans held for investment—UPB: | ||
Fair value adjustments | $ 78,417 | $ 126,635 |
Total loans held for investment, at fair value | 1,058,410 | 1,031,328 |
Reverse Mortgage Loans [Member] | ||
Loans held for investment—UPB: | ||
Mortgage loans held for investment | 871,671 | 815,426 |
Commercial Mortgage Loans [Member] | ||
Loans held for investment—UPB: | ||
Mortgage loans held for investment | $ 108,322 | $ 89,267 |
Loans Held for Sale, at Fair _3
Loans Held for Sale, at Fair Value - Schedule of Mortgage Loans Held For Sale, At Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Mortgage Loans Held for Sale At Fair Value [Line Items] | ||
Fair value adjustments | $ 2,125 | $ 47,127 |
Total mortgage loans held for sale, at fair value | 1,229,594 | 2,052,378 |
Residential Mortgage Loans [Member] | ||
Mortgage Loans Held for Sale At Fair Value [Line Items] | ||
Mortgage loans held for sale | 988,361 | 1,859,788 |
Commercial Mortgage Loans [Member] | ||
Mortgage Loans Held for Sale At Fair Value [Line Items] | ||
Mortgage loans held for sale | $ 239,108 | $ 145,463 |
Loans Held for Sale, at Fair _4
Loans Held for Sale, at Fair Value - Schedule of Mortgage Loans Held For Sale that were Greater Than 90 Days Past Due And On Non-Accrual Status (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Mortgage Loans Held For Sale That Were Greater Than 90 Days Past Due And OnNonAccrualStatus [Line Items] | ||
Mortgage loans held for sale, Aggregate Unpaid Principal Balance | $ 5,132 | $ 7,076 |
Mortgage loans held for sale, Total Difference | (381) | (718) |
Residential Mortgage Loans [Member] | ||
Mortgage Loans Held For Sale That Were Greater Than 90 Days Past Due And OnNonAccrualStatus [Line Items] | ||
Mortgage loans held for sale, Aggregate Unpaid Principal Balance | 3,386 | 3,195 |
Commercial Mortgage Loans [Member] | ||
Mortgage Loans Held For Sale That Were Greater Than 90 Days Past Due And OnNonAccrualStatus [Line Items] | ||
Mortgage loans held for sale, Aggregate Unpaid Principal Balance | 1,361 | 3,323 |
Loans 90 Days Or More Past Due And On Non Accrual Status [Member] | ||
Mortgage Loans Held For Sale That Were Greater Than 90 Days Past Due And OnNonAccrualStatus [Line Items] | ||
Mortgage loans held for sale, Fair Value | 4,751 | 6,358 |
Loans 90 Days Or More Past Due And On Non Accrual Status [Member] | Residential Mortgage Loans [Member] | ||
Mortgage Loans Held For Sale That Were Greater Than 90 Days Past Due And OnNonAccrualStatus [Line Items] | ||
Mortgage loans held for sale, Fair Value | 3,771 | 3,753 |
Loans 90 Days Or More Past Due And On Non Accrual Status [Member] | Commercial Mortgage Loans [Member] | ||
Mortgage Loans Held For Sale That Were Greater Than 90 Days Past Due And OnNonAccrualStatus [Line Items] | ||
Mortgage loans held for sale, Fair Value | $ 1,365 | $ 3,163 |
Loans Held for Sale, at Fair _5
Loans Held for Sale, at Fair Value - Summary Of Reconciliation Of Changes In Loans Held For Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Mortgage Loans Held for Sale At Fair Value [Abstract] | ||||
Beginning balance | $ 1,709,357 | $ 2,140,361 | $ 2,222,811 | $ 2,052,378 |
Originations/purchases/repurchases | 4,598,116 | 7,109,958 | 8,569,575 | 10,087,003 |
Proceeds from sales | (5,139,542) | (7,405,296) | (8,878,131) | (11,012,321) |
Loans acquired through business combinations | 0 | 0 | 35,226 | 0 |
Net transfers from loans held for investment | (2,905) | 17,494 | 0 | 0 |
Gain on loans held for sale, net | 67,482 | 194,228 | 188,564 | 112,354 |
Net fair value gain (loss) on loans held for sale | (2,914) | 797 | 2,316 | (9,820) |
Ending balance | $ 1,229,594 | $ 2,057,542 | $ 2,140,361 | $ 1,229,594 |
Loans Held for Sale, at Fair _6
Loans Held for Sale, at Fair Value - Additional Information (Details) - USD ($) $ in Billions | Jun. 30, 2022 | Dec. 31, 2021 |
Mortgage Loans Held for Sale At Fair Value [Abstract] | ||
Loans held for sale, at fair value pledged as collateral for financing lines of credit | $ 1.1 | $ 2 |
Loans Held for Investment, at_4
Loans Held for Investment, at Fair Value - Schedule of Mortgage Loans Held For Investment At Fair Value (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Mortgage Loans Held for Investment At Fair Value [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | $ 1,229,594 | $ 2,052,378 |
Commercial Mortgage Loans [Member] | ||
Mortgage Loans Held for Investment At Fair Value [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | 857,800 | 810,600 |
Commercial Mortgage Loans [Member] | Loans 90 Days Or More Past Due And On Non Accrual Status [Member] | ||
Mortgage Loans Held for Investment At Fair Value [Line Items] | ||
Mortgages Held-for-sale, Fair Value Disclosure | $ 2,500 | $ 2,300 |
Mortgage Servicing Rights, at_3
Mortgage Servicing Rights, at Fair Value - Summary of Servicing Portfolio and its Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Servicing Assets at Fair Value [Line Items] | |||||
Servicing rights | $ 29,494,649 | $ 29,494,649 | $ 39,299,416 | ||
Weighted average interest rate | 3.32% | 3.03% | |||
Capitalized servicing rights [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Beginning balance | 34,058,558 | $ 26,675,358 | $ 22,269,362 | $ 39,299,416 | $ 22,269,362 |
Originations | 3,375,623 | 5,139,859 | 6,312,227 | 7,632,904 | |
Purchases | 0 | 5,537 | 866,806 | 0 | |
Sold MSRs | (7,123,286) | 0 | (1,090,267) | (15,492,020) | |
Portfolio runoff | (524,107) | (987,056) | (1,488,977) | (1,329,775) | |
Other | (292,139) | (241,511) | (193,793) | (615,876) | |
Changes in fair value due to: | |||||
Changes in fair value due to portfolio runoff and other | (292,139) | (241,511) | (193,793) | (615,876) | |
Ending Balance | 29,494,649 | 30,592,187 | 26,675,358 | 29,494,649 | 39,299,416 |
Mortgage Servicing Rights [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Beginning balance | 426,102 | 267,364 | 180,684 | 427,942 | 180,684 |
Originations | 41,218 | 50,049 | 65,964 | 94,662 | |
Purchases | 0 | 61 | 9,014 | 0 | |
Sold MSRs | (8,647) | (203,295) | |||
Other | (10,101) | (10,485) | (14,760) | (21,623) | |
Payoffs, sales and curtailments | (95,643) | 0 | |||
Changes in fair value due to: | |||||
Changes in market inputs or assumptions used in valuation model | (2,570) | (16,051) | 35,109 | 61,320 | |
Changes in fair value due to portfolio runoff and other | (10,101) | (10,485) | (14,760) | (21,623) | |
Ending Balance | 359,006 | $ 290,938 | $ 267,364 | 359,006 | 427,942 |
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Servicing rights | 27,446,915 | 27,446,915 | 37,079,995 | ||
Government National Mortgage Association Certificates and Obligations (GNMA) [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Servicing rights | 995,944 | 995,944 | 1,109,962 | ||
Private Investors [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Servicing rights | $ 1,051,790 | $ 1,051,790 | $ 1,109,459 |
Mortgage Servicing Rights, at_4
Mortgage Servicing Rights, at Fair Value - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Servicing Assets at Fair Value [Line Items] | |||||
Contractually specified servicing fees, late fees, and other ancillary servicing revenue | $ 13.1 | $ 13.7 | $ 13 | $ 27.4 | |
Asset Pledged as Collateral with Right [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Servicing Asset at Fair Value, Amount | $ 143.4 | $ 143.4 | $ 142.4 |
Mortgage Servicing Rights, at_5
Mortgage Servicing Rights, at Fair Value - Summary of Information Regarding Loan Servicing Portfolio Delinquencies Percentages and Unpaid Balances (Detail) | Jun. 30, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 0.90% | 0.60% |
Unpaid Balance | 0.90% | 0.40% |
Foreclosure/real estate owned [member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 0% | 0% |
Unpaid Balance | 0% | 0% |
Portfolio delinquency 30 days [member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 0.50% | 0.40% |
Unpaid Balance | 0.50% | 0.30% |
60 days [member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 0.10% | 0.10% |
Unpaid Balance | 0.10% | 0% |
90 or more days [member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 0.30% | 0.10% |
Unpaid Balance | 0.30% | 0.10% |
Derivative and Risk Managemen_3
Derivative and Risk Management Activities - Summary of Derivative Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative assets | ||
Derivative assets, Fair value | $ 55,186 | $ 48,870 |
Derivative assets, Notional amount | 3,381,110 | 15,020,538 |
Derivative liabilities | ||
Derivative liabilities, Fair value | 9,713 | 26,678 |
Derivative liabilities, Notional amount | 1,198,800 | 13,708,100 |
Interest rate lock commitments and loan purchase commitments [Member] | ||
Derivative assets | ||
Derivative assets, Fair value | 14,126 | 24,786 |
Derivative assets, Notional amount | 1,315,810 | 2,095,238 |
Derivative liabilities | ||
Derivative liabilities, Fair value | 0 | 0 |
Derivative liabilities, Notional amount | 0 | 0 |
Forward mortgage backed securities and forward to be announced [Member] | ||
Derivative assets | ||
Derivative assets, Fair value | 4,258 | 1,250 |
Derivative assets, Notional amount | 696,000 | 948,000 |
Derivative liabilities | ||
Derivative liabilities, Fair value | 7,530 | 1,685 |
Derivative liabilities, Notional amount | 694,500 | 1,515,000 |
Interest rate swaps and futures contracts [Member] | ||
Derivative assets | ||
Derivative assets, Fair value | 36,802 | 22,834 |
Derivative assets, Notional amount | 1,369,300 | 11,977,300 |
Derivative liabilities | ||
Derivative liabilities, Fair value | 2,183 | 24,993 |
Derivative liabilities, Notional amount | $ 504,300 | $ 12,193,100 |
Derivative and Risk Managemen_4
Derivative and Risk Management Activities - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Pledged deposits | $ 67.1 | $ 23.2 |
Derivative and Risk Managemen_5
Derivative and Risk Management Activities - Summary of the Gains/(Losses) on Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Interest rate lock commitments and loan purchase commitments [Member] | ||||
Derivative [Line Items] | ||||
Derivative activity | $ 10,017 | $ (3,536) | $ (49,557) | $ (10,660) |
Forward mortgage backed securities and forward to be announced [Member] | ||||
Derivative [Line Items] | ||||
Derivative activity | 94,350 | (40,289) | 113,331 | 210,967 |
Interest rate swaps and futures contracts [Member] | ||||
Derivative [Line Items] | ||||
Derivative activity | $ 67,814 | $ (37,383) | $ 43,935 | $ 239,543 |
HMBS Related Obligations, at _3
HMBS Related Obligations, at Fair Value - Summary of HMBS Related Obligations, At Fair Value (Detail) - Home Equity Conversion Mortgage Backed Security - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Home Equity Conversion Mortgage Backed Security Related Obligations At Fair Value [Line Items] | ||
Ginnie Mae loan pools - UPB | $ 10,445,730 | $ 9,849,835 |
Fair value adjustments | 300,149 | 572,523 |
Total HMBS related obligations, at fair value | $ 10,745,879 | $ 10,422,358 |
Weighted average remaining life (years) | 4 years 1 month 6 days | 4 years 7 months 6 days |
Weighted average interest rate | 3.30% | 2.50% |
HMBS Related Obligations, at _4
HMBS Related Obligations, at Fair Value - Additional information (Detail) - LoanPools | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Home Equity Conversion Mortgage Backed Security Related Obligations At Fair Value [Abstract] | ||
Ginnie Mae loan pools | 1,941 | 1,849 |
Nonrecourse Debt, at Fair Val_3
Nonrecourse Debt, at Fair Value - Summary of Nonrecourse Debt at Fair Value (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Nonrecourse MSR financing liability, at fair value | $ 142,382 | $ 142,435 |
Nonrecourse Commercial loan financing liability | 158,659 | 107,744 |
Fair value adjustments | (322,270) | 39,379 |
Total nonrecourse debt, at fair value | 6,752,084 | 6,111,242 |
Nonrecourse [Member] | ||
Debt Instrument [Line Items] | ||
Total nonrecourse debt | $ 6,773,313 | 5,821,684 |
Securitization of performing / nonperforming HECM loans | ||
Debt Instrument [Line Items] | ||
Issue Date | July 2020 - February 2022 | |
Final Maturity Date | July 2030 - February 2032 | |
Original Issue Amount | $ 1,805,528 | |
Securitization of performing / nonperforming HECM loans | Nonrecourse [Member] | ||
Debt Instrument [Line Items] | ||
Total nonrecourse debt | $ 929,541 | 922,970 |
Securitization of performing / nonperforming HECM loans | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.88% | |
Securitization of performing / nonperforming HECM loans | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 9.32% | |
Securitization of non-agency reverse loans | ||
Debt Instrument [Line Items] | ||
Issue Date | May 2018 - February 2022 | |
Final Maturity Date | May 2023 - November 2069 | |
Original Issue Amount | $ 7,205,543 | |
Securitization of non-agency reverse loans | Nonrecourse [Member] | ||
Debt Instrument [Line Items] | ||
Total nonrecourse debt | $ 5,575,261 | 4,630,203 |
Securitization of non-agency reverse loans | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.25% | |
Securitization of non-agency reverse loans | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.50% | |
Securitization of fix & flip loans | ||
Debt Instrument [Line Items] | ||
Issue Date | April 2021 | |
Final Maturity Date | November 2024 - May 2025 | |
Original Issue Amount | $ 268,511 | |
Securitization of fix & flip loans | Nonrecourse [Member] | ||
Debt Instrument [Line Items] | ||
Total nonrecourse debt | $ 268,511 | $ 268,511 |
Securitization of fix & flip loans | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.10% | |
Securitization of fix & flip loans | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.40% |
Nonrecourse Debt, at Fair Val_4
Nonrecourse Debt, at Fair Value - Summary Of Estimated Maturities For Nonrecourse Debt Fair Value (Detail) - Nonrecourse [Member] $ in Thousands | Jun. 30, 2022 USD ($) |
Summary Of Estimated Maturities For Non recourse Debt Fair Value [Line Items] | |
2022 | $ 851,396 |
2023 | 2,925,814 |
2024 | 2,440,206 |
2025 | 714,556 |
Thereafter | |
Total payments on nonrecourse debt | $ 6,931,972 |
Other Financing Lines of Cred_3
Other Financing Lines of Credit - Additional Information (Details) - Line of Credit [Member] | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Financing line of credit outstanding, Weighted average interest rate | 3.03% | 2.75% |
Financing line of credit Instrument, Covenant Description | The Company’s financing arrangements and credit facilities contain various financial covenants, which primarily relate to required tangible net worth amounts, liquidity reserves, leverage ratios, and profitability. | |
Financing line of credit, Covenant Compliance | The terms of the Company’s financing arrangements and credit facilities contain covenants, and the terms of the Company’s GSE/ |
Other Financing Lines of Cred_4
Other Financing Lines of Credit - Summary Of Maximum Allowable Distributions Available To The Company Based On The Most Restrictive Of Such Financial Covenant Ratios (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Finance of America Mortgage LLC [Member] | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 227,279 | $ 180,032 |
Liquidity | $ 60,080 | $ 43,734 |
Leverage Ratio | 8.7:1 | 13.9:1 |
Material Decline In Lender Adjusted Net Worth [Abstract] | ||
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ 227,278 | $ 214,979 |
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 227,278 | 214,979 |
Finance of America Mortgage LLC [Member] | Requirement [Member] | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 225,000 | 150,000 |
Liquidity | $ 55,000 | $ 40,000 |
Leverage Ratio | 13:1 | 15:1 |
Material Decline In Lender Adjusted Net Worth [Abstract] | ||
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ 225,805 | $ 150,539 |
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 128,988 | 114,830 |
Finance of America Mortgage LLC [Member] | Maximum Allowable Distribution [Member] | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 2,279 | 30,032 |
Liquidity | $ 5,080 | $ 3,734 |
Leverage Ratio | 75,388 | 12,154 |
Material Decline In Lender Adjusted Net Worth [Abstract] | ||
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ 1,473 | $ 64,440 |
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 98,290 | 100,149 |
Finance of America Commercial LLC [Member] | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 87,350 | |
Liquidity | $ 32,728 | |
Leverage Ratio | 2.8:1 | |
Finance of America Commercial LLC [Member] | Requirement [Member] | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 85,000 | |
Liquidity | $ 20,000 | |
Leverage Ratio | 6:1 | |
Finance of America Commercial LLC [Member] | Maximum Allowable Distribution [Member] | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 2,350 | |
Liquidity | $ 12,728 | |
Leverage Ratio | 46,895 | |
Finance of America Reverse LLC [Member] | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 361,029 | $ 527,443 |
Liquidity | $ 122,674 | $ 23,845 |
Leverage Ratio | 4.2:1 | 2.9:1 |
Finance of America Reverse LLC [Member] | Requirement [Member] | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 300,000 | $ 417,826 |
Liquidity | $ 64,423 | $ 20,000 |
Leverage Ratio | 6:1 | 6:1 |
Finance of America Reverse LLC [Member] | Maximum Allowable Distribution [Member] | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 61,029 | $ 109,617 |
Liquidity | $ 58,251 | $ 3,845 |
Leverage Ratio | 106,461 | 264,134 |
Other Financing Lines of Cred_5
Other Financing Lines of Credit - Summary Of Components of Other Financing Lines of Credit (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 5,515,198 | |
Outstanding borrowings | 2,593,290 | $ 3,347,442 |
Mortgage Line Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 3,065,821 | |
Outstanding borrowings | 1,106,562 | 1,996,538 |
Reverse Line Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 1,921,877 | |
Outstanding borrowings | 1,152,917 | 1,129,402 |
Commercial Lines Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 527,500 | |
Outstanding borrowings | $ 333,811 | 221,502 |
August 2022 | Commercial Lines Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | August 2022 | |
Interest rate | LIBOR + applicable margin | |
Collateral pledge | Encumbered Agricultural Loans | |
Total Capacity | $ 75,000 | |
Outstanding borrowings | $ 22,221 | 25,127 |
April 2023 - January 2024 | Commercial Lines Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | April 2023 - January 2024 | |
Interest rate | LIBOR / SOFR + applicable margin | |
Collateral pledge | First Lien Mortgages | |
Total Capacity | $ 407,500 | |
Outstanding borrowings | $ 272,690 | 167,159 |
August 2022 | Commercial Lines Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | August 2022 | |
Interest rate | 10% | |
Collateral pledge | Second Lien Mortgages | |
Total Capacity | $ 45,000 | |
Outstanding borrowings | $ 38,900 | 24,175 |
Mortgage Related Assets | Commercial Lines Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | LIBOR + applicable margin | |
Collateral pledge | Mortgage Related Assets | |
Outstanding borrowings | 5,041 | |
August 2022 - June 2023 | Mortgage Line Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | August 2022 - June 2023 | |
Interest rate | LIBOR / SOFR+ applicablemargin | |
Collateral pledge | First Lien Mortgages | |
Total Capacity | $ 2,875,000 | |
Outstanding borrowings | $ 945,532 | 1,802,348 |
August 2022 - June 2023 | Reverse Line Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | August 2022 - June 2023 | |
Interest rate | LIBOR / SOFR + applicable margin | |
Collateral pledge | First Lien Mortgages | |
Total Capacity | $ 1,450,000 | |
Outstanding borrowings | $ 773,871 | 714,013 |
March 2026 | Mortgage Line Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | March 2026 | |
Interest rate | Ameribor + applicable margin | |
Collateral pledge | MSRs | |
Total Capacity | $ 150,000 | |
Outstanding borrowings | $ 120,209 | 138,524 |
August 2022 - September 2022 | Mortgage Line Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | August 2022 - September 2022 | |
Interest rate | SOFR + applicable margin | |
Collateral pledge | Mortgage Related Assets | |
Total Capacity | $ 40,821 | |
Outstanding borrowings | $ 40,821 | 55,666 |
July 2022 - September 2022 | Reverse Line Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | July 2022 - September 2022 | |
Interest rate | Bond accrual rate + applicable margin | |
Collateral pledge | Mortgage Related Assets | |
Total Capacity | $ 330,000 | |
Outstanding borrowings | $ 293,345 | 297,893 |
September 2022 | Reverse Line Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | September 2022 | |
Interest rate | LIBOR + applicable margin | |
Collateral pledge | MSRs | |
Total Capacity | $ 90,000 | |
Outstanding borrowings | $ 42,325 | 78,952 |
May 2023 | Reverse Line Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | May 2023 | |
Interest rate | Prime + .50%; 6% floor | |
Collateral pledge | Unsecuritized Tails | |
Total Capacity | $ 51,877 | |
Outstanding borrowings | $ 43,376 | $ 38,544 |
Litigation - Additional Informa
Litigation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Litigation [Abstract] | ||||
Litigation Settlement, Expense | $ 1.7 | $ 3.6 | $ 4.2 | $ 2.6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Commitments to Purchase Loans [Member] | ||
Commitments and Contingencies [Line Items] | ||
Long-term Purchase Commitment, Amount | $ 4 | $ 47.3 |
Commitments to Sell Loans [Member] | ||
Commitments and Contingencies [Line Items] | ||
Long-term Purchase Commitment, Amount | $ 112.3 | 0 |
Equal To Or Greater Than [Member] | ||
Commitments and Contingencies [Line Items] | ||
Percentage of outstanding principal balance is equal to or greater than MCA. | 98% | |
Percentage of outstanding principal balance of HECM is equal to or greater than MCA. | 98% | |
HECM Loans [Member] | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | $ 2,900 | 2,600 |
Fix And Flip Loans [Member] | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | 123.2 | 94.9 |
Agricultural loans[Member] | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | $ 56.5 | $ 78.5 |
Business Segment Reporting - Su
Business Segment Reporting - Summary of Financial Information By Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | $ 71,805 | $ 187,577 | $ 291,334 | $ 190,157 | |
Net fair value gains on loans and related obligations | 1,613 | 131,151 | 76,663 | 12,048 | |
Fee income | 88,681 | 90,864 | 161,371 | 246,286 | |
Interest income | 15,853 | 13,151 | 12,661 | 29,726 | |
Interest expense | (36,834) | (33,626) | (34,366) | (69,664) | |
Net interest income (expense) | (20,981) | (20,475) | (21,705) | (39,938) | |
TOTAL REVENUES | 141,118 | 389,117 | 507,663 | 408,553 | |
Total expenses | 325,013 | 400,752 | 373,314 | 674,550 | |
Other, net | 15,132 | (2,103) | (8,892) | 19,904 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (168,763) | (13,738) | 125,457 | (246,093) | |
Depreciation and amortization | 16,781 | 16,462 | 3,484 | 33,425 | |
Total assets | 21,736,226 | 22,227,938 | 20,100,419 | 21,736,226 | $ 21,788,946 |
Operating Segments | |||||
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | 75,334 | 193,134 | 291,546 | 198,393 | |
Net fair value gains on loans and related obligations | 1,643 | 116,581 | 76,630 | 8,088 | |
Fee income | 96,214 | 128,130 | 154,759 | 267,957 | |
Interest income | 15,759 | 13,053 | 12,649 | 29,538 | |
Interest expense | (30,096) | (26,952) | (26,610) | (56,223) | |
Net interest income (expense) | (14,337) | (13,899) | (13,961) | (26,685) | |
TOTAL REVENUES | 158,854 | 423,946 | 508,974 | 447,753 | |
Total expenses | 305,162 | 392,993 | 348,706 | 633,678 | |
Other, net | 1,053 | 82 | 1,080 | 6,082 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (145,255) | 31,035 | 161,348 | (179,843) | |
Depreciation and amortization | 13,601 | 4,120 | 3,113 | 29,736 | |
Total assets | 21,723,646 | 22,206,032 | 20,047,170 | 21,723,646 | |
Corporate and Other | |||||
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | 0 | ||||
Net fair value gains on loans and related obligations | 0 | ||||
Fee income | 0 | ||||
Interest income | 94 | 107 | 12 | 188 | |
Interest expense | (6,738) | (6,674) | (7,756) | (13,441) | |
Net interest income (expense) | (6,644) | (6,567) | (7,744) | (13,253) | |
TOTAL REVENUES | (6,644) | (6,567) | (7,744) | (13,253) | |
Total expenses | 30,787 | 36,021 | 18,683 | 66,768 | |
Other, net | 13,923 | (2,185) | (9,464) | 13,771 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (23,508) | (44,773) | (35,891) | (66,250) | |
Depreciation and amortization | 3,180 | 12,342 | 371 | 3,689 | |
Total assets | 1,741,180 | 2,115,780 | 379,562 | 1,741,180 | |
Elim | |||||
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | (3,529) | (5,557) | (212) | (8,236) | |
Net fair value gains on loans and related obligations | (30) | 14,570 | 33 | 3,960 | |
Fee income | (7,533) | (37,266) | 6,612 | (21,671) | |
Interest income | (9) | 0 | |||
Interest expense | 0 | ||||
Net interest income (expense) | (9) | 0 | |||
TOTAL REVENUES | (11,092) | (28,262) | 6,433 | (25,947) | |
Total expenses | (10,936) | (28,262) | 5,925 | (25,896) | |
Other, net | 156 | 0 | (508) | 51 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | 0 | ||
Total assets | (1,728,600) | (2,093,874) | (326,313) | (1,728,600) | |
Mortgage Originations | Operating Segments | |||||
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | 81,199 | 185,386 | 286,481 | 193,120 | |
Net fair value gains on loans and related obligations | 0 | 0 | |||
Fee income | 18,086 | 30,345 | 32,731 | 38,235 | |
Interest income | 13,657 | 12,837 | 12,483 | 26,229 | |
Interest expense | (9,758) | (10,861) | (11,592) | (19,129) | |
Net interest income (expense) | 3,899 | 1,976 | 891 | 7,100 | |
TOTAL REVENUES | 103,184 | 217,707 | 320,103 | 238,455 | |
Total expenses | 138,183 | 224,191 | 224,246 | 294,966 | |
Other, net | 0 | 0 | 0 | ||
NET INCOME (LOSS) BEFORE INCOME TAXES | (34,999) | (6,484) | 95,857 | (56,511) | |
Depreciation and amortization | 1,615 | 1,433 | 1,423 | 4,435 | |
Total assets | 1,185,899 | 2,994,779 | 2,425,529 | 1,185,899 | |
Reverse Originations | Operating Segments | |||||
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | 0 | 0 | |||
Net fair value gains on loans and related obligations | 77,872 | 94,536 | 68,449 | 183,627 | |
Fee income | 2,123 | 954 | 524 | 3,939 | |
Interest income | 0 | ||||
Interest expense | (9) | 0 | |||
Net interest income (expense) | (9) | 0 | |||
TOTAL REVENUES | 79,995 | 95,481 | 68,973 | 187,566 | |
Total expenses | 44,171 | 42,246 | 23,693 | 87,350 | |
Other, net | 38 | 104 | 34 | 3,252 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | 35,862 | 53,339 | 45,314 | 103,468 | |
Depreciation and amortization | 9,708 | (151) | 151 | 19,306 | |
Total assets | 415,678 | 768,229 | 35,861 | 415,678 | |
Commercial Originations | Operating Segments | |||||
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | 0 | 0 | |||
Net fair value gains on loans and related obligations | (3,980) | 10,822 | 5,431 | (505) | |
Fee income | 16,659 | 12,124 | 8,930 | 33,817 | |
Interest income | 0 | ||||
Interest expense | 0 | ||||
Net interest income (expense) | 0 | 0 | |||
TOTAL REVENUES | 12,679 | 22,946 | 14,361 | 33,312 | |
Total expenses | 24,587 | 20,049 | 13,391 | 47,674 | |
Other, net | 164 | 140 | 149 | 288 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (11,744) | 3,037 | 1,119 | (14,074) | |
Depreciation and amortization | 522 | 127 | 125 | 1,036 | |
Total assets | 28,670 | 109,434 | 82,375 | 28,670 | |
Lender Services | Operating Segments | |||||
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | (1,125) | 0 | (914) | ||
Net fair value gains on loans and related obligations | 0 | 0 | |||
Fee income | 58,148 | 81,130 | 76,383 | 134,301 | |
Interest income | 587 | 29 | 28 | 747 | |
Interest expense | (51) | (44) | (64) | (84) | |
Net interest income (expense) | 536 | (15) | (36) | 663 | |
TOTAL REVENUES | 57,559 | 81,115 | 76,347 | 134,050 | |
Total expenses | 63,667 | 73,317 | 62,970 | 134,423 | |
Other, net | 814 | 83 | 2 | 2,478 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (5,294) | 7,881 | 13,379 | 2,105 | |
Depreciation and amortization | 1,650 | 2,818 | 1,268 | 4,762 | |
Total assets | 212,574 | 336,687 | 125,317 | 212,574 | |
Portfolio Management | Operating Segments | |||||
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | (4,740) | 7,748 | 5,065 | 6,187 | |
Net fair value gains on loans and related obligations | (72,249) | 11,223 | 2,750 | (175,034) | |
Fee income | 1,198 | 3,577 | 36,191 | 57,665 | |
Interest income | 1,515 | 187 | 138 | 2,562 | |
Interest expense | (20,287) | (16,038) | (14,954) | (37,010) | |
Net interest income (expense) | (18,772) | (15,851) | (14,816) | (34,448) | |
TOTAL REVENUES | (94,563) | 6,697 | 29,190 | (145,630) | |
Total expenses | 34,554 | 33,190 | 24,406 | 69,265 | |
Other, net | 37 | (245) | 895 | 64 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (129,080) | (26,738) | 5,679 | (214,831) | |
Depreciation and amortization | 106 | (107) | 146 | 197 | |
Total assets | $ 19,880,825 | $ 17,996,903 | $ 17,378,088 | $ 19,880,825 |
Liquidity and Capital Require_2
Liquidity and Capital Requirements - Additional information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Liquidity And Capital Requirements [Line Items] | ||
Minimum net capital requirement | $ 300 | |
Policyholders' Surplus | 8,000 | |
Total requirement | 4,000 | |
Cash and Cash Equivalents, at Carrying Value | 219,033 | $ 141,238 |
State of Missouri | ||
Liquidity And Capital Requirements [Line Items] | ||
Minimum capital and surplus | 1,600 | |
State of Alabama | ||
Liquidity And Capital Requirements [Line Items] | ||
Minimum capital and surplus | 200 | |
Finance of America Mortgage LLC | ||
Liquidity And Capital Requirements [Line Items] | ||
Minimum adjusted net worth balance of capital requirements | 149,700 | |
Adjusted balance of capital requirements | $ 227,279 | $ 180,032 |
Description of factors that may affect minimum net worth requirements | The net worth required is $5.0 million plus 1% of FAR’s commitment authority from Ginnie Mae. The liquidity requirement is for 20% of FAR’s required net worth to be in the form of cash or cash equivalent assets. FAR is required to maintain a ratio of 6% of net worth to total assets. | |
Minimum tangible net worth required | $ 110,500 | |
Tangible capital, actual | 342,800 | |
Net worth | $ 5,000 | |
Percentage FAR commitment with addition to net worth | 1% | |
Percentage of liquidity | 20% | |
Percentage of net worth to total assets | 6% | |
Cash | $ 22,100 | |
Cash and Cash Equivalents, at Carrying Value | 121,900 | |
Finance of America Mortgage LLC | State of Missouri | ||
Liquidity And Capital Requirements [Line Items] | ||
Adjusted balance of capital requirements | $ 233,100 |
Related Party Transactions - Ad
Related Party Transactions - Additional information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Nov. 30, 2020 | |
Two Thousand And Nineteen Promissory Notes | ||||||
Related Party Transaction [Line Items] | ||||||
Interest Expense, Related Party | $ 0 | |||||
Maturity period | January 2023 | |||||
BTO Urban Holdings And Libman Family Holdings, LLC | Two Thousand And Nineteen Promissory Notes | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate | 6.50% | |||||
FarmOp Capital Holdings, LLC | Originated Agricultural Loans | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Purchases from Related Party | $ 32,600 | $ 46,300 | $ 83,000 | $ 105,900 | ||
FarmOp Capital Holdings, LLC | Originated Agricultural Loans Funded Draw Amounts | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Amounts of Transaction | 44,800 | $ 53,400 | $ 82,100 | 133,500 | ||
FarmOp Capital Holdings, LLC | Promissory Notes | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding promissory notes | $ 4,100 | 4,300 | 4,300 | |||
Various Investors Of UFG | Non Recourse MSR Financing | ||||||
Related Party Transaction [Line Items] | ||||||
Related party outstanding advance | 115,400 | 153,100 | 153,100 | |||
MSR fair value | $ 155,100 | $ 153,400 | $ 153,400 | |||
Related Parties Of FOA | Promissory Notes | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Face Amount | $ 135,000 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Net income (loss) before income taxes | $ (168,763) | $ (13,738) | $ 125,457 | $ (246,093) |
Provision (benefit) for income taxes | $ (940) | $ 1,086 | $ 1,137 | $ (14,275) |
Effective tax provision rate | 0.56% | (7.91%) | 0.91% | 5.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Uncertain tax positions interest or penalties recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share Basic by Common Class (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | ||
Numerator | |||||
Net loss | $ (167,823) | $ (14,824) | $ 124,320 | $ (231,818) | |
Less: loss attributable to noncontrolling interest | [1] | (127,143) | (17,089) | (182,645) | |
Net income (loss) attributable to holders of Class A Common Stock—basic | $ (40,680) | $ 2,265 | $ (49,173) | ||
Denominator | |||||
Weighted average shares of Class A Common Stock outstanding—basic | 62,379,041 | 59,881,714 | 61,580,900 | ||
Basic net earnings (loss) per share | $ (0.65) | $ 0.04 | $ (0.8) | ||
[1]The Class A LLC Units of FoA Equity, held by the Continuing Unitholders, which comprise the noncontrolling interest in the Company, represents a participating security. Therefore, the numerator was adjusted to reduce net income by the amount of net income attributable to noncontrolling interest. |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Earnings Per Share Diluted by Common Class (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | ||
Numerator | ||||
Net income (loss) attributable to holders of Class A Common Stock | $ (40,680) | $ 2,265 | $ (49,173) | |
Denominator | ||||
Weighted average shares of Class A Common Stock outstanding—basic | 62,379,041 | 59,881,714 | 61,580,900 | |
Effect of dilutive securities: | ||||
Weighted average shares of Class A Common Stock outstanding—diluted | 187,818,225 | 191,200,000 | 188,629,076 | |
Diluted net loss per share | $ (0.7) | $ (0.05) | $ (1) | |
Common Class A [Member] | ||||
Numerator | ||||
Net income (loss) attributable to holders of Class A Common Stock | $ (40,680) | $ 2,265 | $ (49,173) | |
Reallocation of net income (loss) assuming exchange of Class A LLC Units | [1] | (90,293) | (12,001) | (139,756) |
Net loss attributable to holders of Class A Common Stock—diluted | $ (130,973) | $ (9,736) | $ (188,929) | |
Denominator | ||||
Weighted average shares of Class A Common Stock outstanding—basic | 62,379,041 | 59,881,714 | 61,580,900 | |
Effect of dilutive securities: | ||||
Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock | [2] | 125,439,184 | 131,318,286 | 127,048,176 |
Weighted average shares of Class A Common Stock outstanding—diluted | 187,818,225 | 191,200,000 | 188,629,076 | |
Diluted net loss per share | $ (0.7) | $ (0.05) | $ (1) | |
[1]This adjustment assumes the after-tax elimination of noncontrolling interest due to the assumed exchange of all Class A LLC Units outstanding for shares of Class A Common Stock in FoA as of the beginning of the period following the if-converted method for calculating diluted net income (loss) per share. Following the terms of the A&R LLC Agreement, the Class A LLC unitholders will initially bear approximately 85% of the cost of any vesting associated with the Replacement RSUs and Earnout Right RSUs prior to any distribution by the Company to such Class A LLC unitholders. The remaining compensation cost associated with the Replacement RSUs and Earnout Right RSUs will be born by FoA for the share attributable to Blackstone Tactical Opportunities Fund (Urban Feeder) – NQ L.P., a Delaware limited partnership (“Blocker”). As a result of the application of the if-converted method, in arriving at diluted net loss per share, the entirety of the compensation cost associated with vesting of the Replacement RSUs and Earnout Right RSUs is assumed to be included in the net loss attributable to holders of the Company’s Class A Common Stock.[2]The diluted weighted average shares outstanding of Class A Common Stock includes the effects of the if-converted method to reflect the provisions of the Exchange Agreement and assumes the Class A LLC Units held by Continuing Unitholders, representing the noncontrolling interest, exchange their units on a one-for-one basis for shares of Class A Common Stock in FoA. In addition to the Class A LLC Units, the Company also had RSUs outstanding during the Successor three and six months ended June 30, 2022. The effects of the RSUs following the treasury stock method have been excluded from the computation of diluted net loss per share given that the if-converted method was determined to be more dilutive. |
Equity (Detail)
Equity (Detail) - $ / shares | 6 Months Ended | |||
Jun. 30, 2022 | Mar. 04, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||
Common units outstanding | 125,413,507 | 125,413,507 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Class of Stock [Line Items] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Settled In Period | 93,455 | |||
Capital Unit, Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares outstanding | 66,733,053 | 66,733,053 | ||
Common units outstanding | 187,888,060 | 187,888,060 | ||
Conversion of Stock, Shares Converted | 3,219,860 | |||
Capital Unit, Class A [Member] | Noncontrolling Interest [Member] | ||||
Class of Stock [Line Items] | ||||
Common units outstanding | 62,474,553 | 62,474,553 | ||
Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares outstanding | 62,474,553 | 62,474,553 | 62,474,553 | |
Common stock, shares issued | 62,474,553 | 62,474,553 | 62,474,553 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock shares outstanding unvested portion | 4,258,500 | 4,258,500 | ||
Stock Repurchased and Retired During Period, Shares | 1,654,331 | |||
Conversion of Stock, Shares Converted | 3,219,860 | |||
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 93,455 | |||
Common Class B [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares outstanding | 15 | 15 | 15 | |
Common stock, shares issued | 15 | 15 | 15 | |
Stock issued during period, shares | 15 | |||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |