Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40308 | |
Entity Registrant Name | FINANCE OF AMERICA COMPANIES INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-3474065 | |
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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Central Index Key | 0001828937 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | FOA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 62,962,573 | |
Warrants to Purchase | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase shares of Class A Common Stock | |
Trading Symbol | FOA.WS | |
Security Exchange Name | NYSE | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 169,072 | $ 141,238 |
Restricted cash | 210,147 | 322,403 |
Loans held for investment, subject to Home Equity Conversion Mortgage-Backed Securities ("HMBS") related obligations, at fair value | 10,916,551 | 10,556,054 |
Loans held for investment, subject to nonrecourse debt, at fair value | 6,741,391 | 6,218,194 |
Loans held for investment, at fair value | 1,307,413 | 1,031,328 |
Loans held for sale, at fair value | 859,650 | 2,052,378 |
Mortgage servicing rights ("MSRs"), at fair value, $59,800 and $142,435 subject to nonrecourse MSRs financing liability, respectively | 103,069 | 427,942 |
Derivative assets | 89,899 | 48,870 |
Fixed assets and leasehold improvements, net | 19,828 | 29,256 |
Intangible assets, net | 438,300 | 602,900 |
Other assets, net | 334,577 | 358,383 |
TOTAL ASSETS | 21,189,897 | 21,788,946 |
LIABILITIES AND EQUITY | ||
HMBS related obligations, at fair value | 10,784,841 | 10,422,358 |
Nonrecourse debt, at fair value (includes amounts due to related parties of $0 and $142,435, respectively) | 6,745,526 | 6,111,242 |
Other financing lines of credit | 2,305,999 | 3,347,442 |
Payables and other liabilities | 395,635 | 471,511 |
Notes payable, net (includes amounts due to related parties of $30,000 and $0, respectively) | 382,810 | 353,383 |
TOTAL LIABILITIES | 20,614,811 | 20,705,936 |
Commitments and Contingencies (Note 20) | ||
EQUITY (Note 26) | ||
Additional paid-in capital | 876,140 | 831,620 |
Accumulated deficit | (577,272) | (443,613) |
Accumulated other comprehensive loss | (367) | (110) |
Noncontrolling interest | 276,579 | 695,107 |
TOTAL EQUITY | 575,086 | 1,083,010 |
TOTAL LIABILITIES AND EQUITY | 21,189,897 | 21,788,946 |
Fair Value, Recurring | Loans held for investment, subject to HMBS related obligations | ||
ASSETS | ||
Loans held for investment, at fair value | 10,916,551 | 10,556,054 |
Level 3 | Fair Value, Recurring | Loans held for investment, subject to HMBS related obligations | ||
ASSETS | ||
Loans held for investment, at fair value | 10,916,551 | 10,556,054 |
Class A Common Stock | ||
EQUITY (Note 26) | ||
Common Stock, Value | 6 | 6 |
Class B Common Stock | ||
EQUITY (Note 26) | ||
Common Stock, Value | $ 0 | $ 0 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - Parenthetical - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Mortgage servicing rights, at fair value | $ 59,800,000 | $ 142,435,000 |
Non Recourse Debt | ||
Outstanding advance | 0 | 142,435,000 |
2021 Promissory Notes | ||
Outstanding advance | $ 30,000,000 | $ 0 |
Class A Common Stock | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 6,000,000,000 | 6,000,000,000 |
Common stock, shares issued (in shares) | 62,959,276 | 62,959,276 |
Common stock, shares outstanding (in shares) | 62,959,276 | 62,959,276 |
Class B Common Stock | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, shares issued (in shares) | 15 | 15 |
Common stock, shares outstanding (in shares) | 15 | 15 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition - Variable Interest Entities - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Restricted cash | $ 210,147 | $ 322,403 |
Loans held for investment, at fair value | 1,307,413 | 1,031,328 |
TOTAL ASSETS | 21,189,897 | 21,788,946 |
Nonrecourse debt, at fair value (includes amounts due to related parties of $0 and $142,435, respectively) | 6,745,526 | 6,111,242 |
TOTAL LIABILITIES | 20,614,811 | 20,705,936 |
Variable Interest Entity, Primary Beneficiary | ||
Restricted cash | 196,062 | 311,652 |
Loans held for investment, at fair value | 6,577,569 | 6,099,607 |
Other assets, net | 76,177 | 67,593 |
TOTAL ASSETS | 6,849,808 | 6,478,852 |
Nonrecourse debt, at fair value (includes amounts due to related parties of $0 and $142,435, respectively) | 6,525,382 | 5,857,069 |
Payables and other liabilities | 778 | 428 |
TOTAL LIABILITIES | 6,526,160 | 5,857,497 |
NET CARRYING VALUE OF ASSETS SUBJECT TO NONRECOURSE DEBT | $ 323,648 | $ 621,355 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
REVENUES | |||||
Gain on sale and other income from loans held for sale, net | $ 36,179 | $ 210,095 | $ 291,334 | $ 397,672 | $ 226,336 |
Net fair value gains (losses) on loans and related obligations | (6,376) | 122,509 | 76,663 | 253,660 | 5,672 |
Fee income | 70,512 | 145,725 | 161,371 | 236,589 | 316,798 |
Net interest expense: | |||||
Interest income | 12,022 | 15,862 | 12,661 | 29,013 | 41,748 |
Interest expense | (41,236) | (37,691) | (34,366) | (71,317) | (110,900) |
Net interest expense | (29,214) | (21,829) | (21,705) | (42,304) | (69,152) |
TOTAL REVENUES | 71,101 | 456,500 | 507,663 | 845,617 | 479,654 |
EXPENSES | |||||
Salaries, benefits, and related expenses | 146,385 | 262,000 | 238,530 | 536,731 | 549,755 |
Occupancy, equipment rentals, and other office related expenses | 7,003 | 8,283 | 7,597 | 15,003 | 22,103 |
General and administrative expenses | 105,533 | 141,595 | 127,187 | 260,896 | 361,613 |
TOTAL EXPENSES | 258,921 | 411,878 | 373,314 | 812,630 | 933,471 |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | (138,184) | 0 | 0 | 0 | (138,184) |
OTHER, NET | 21,330 | 9,928 | (8,892) | 7,825 | 41,234 |
NET INCOME (LOSS) BEFORE INCOME TAXES | (304,674) | 54,550 | 125,457 | 40,812 | (550,767) |
Provision (benefit) for income taxes | (2,974) | 4,440 | 1,137 | 5,526 | (17,249) |
NET INCOME (LOSS) | (301,700) | 50,110 | 124,320 | 35,286 | (533,518) |
Contingently Redeemable Noncontrolling Interest ("CRNCI") | 0 | 0 | 4,260 | 0 | 0 |
Noncontrolling interest | (217,214) | 28,726 | 201 | 11,637 | (399,859) |
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ (84,486) | $ 21,384 | $ 119,859 | $ 23,649 | $ (133,659) |
EARNINGS PER SHARE (Note 25) | |||||
Basic weighted average shares outstanding (in shares) | 62,804,809 | 59,861,171 | 59,871,386 | 61,993,353 | |
Basic net earnings (loss) per share (in USD per share) | $ (1.35) | $ 0.36 | $ 0.39 | $ (2.16) | |
Diluted weighted average shares outstanding (in shares) | 62,804,809 | 191,161,431 | 191,180,610 | 188,375,945 | |
Diluted net earnings (loss) per share (in USD per share) | $ (1.35) | $ 0.22 | $ 0.17 | $ (2.34) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME (LOSS) | $ (301,700) | $ 50,110 | $ 124,320 | $ 35,286 | $ (533,518) |
Impact of foreign currency translation adjustment | (105) | (65) | (11) | (92) | (257) |
TOTAL COMPREHENSIVE INCOME (LOSS) | (301,805) | 50,045 | 124,309 | 35,194 | (533,775) |
Less: Comprehensive income (loss) attributable to the noncontrolling interest and CRNCI | (217,285) | 28,681 | 4,461 | 11,573 | (400,033) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ (84,520) | $ 21,364 | $ 119,848 | $ 23,621 | $ (133,742) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members’ Equity - USD ($) $ in Thousands | Total | FoA Equity Capital LLC Member's Equity | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance at Dec. 31, 2020 | $ 628,040 | $ 628,176 | $ 9 | $ (145) | ||||
Net income | 124,320 | |||||||
Contributions from members | 1,426 | 1,426 | ||||||
Distributions to members | (75,000) | (75,000) | ||||||
Net income | 120,060 | 119,859 | 201 | |||||
Accretion of CRNCI to redemption price | (32,725) | (32,725) | ||||||
Noncontrolling interest distributions | (620) | (620) | ||||||
Foreign currency translation adjustment | (11) | (11) | ||||||
Ending balance at Mar. 31, 2021 | 641,170 | $ 641,736 | (2) | (564) | ||||
Ending balance at Mar. 31, 2021 | 2,344,981 | 0 | $ 1,658,545 | $ 6 | $ 0 | $ 758,243 | $ (71,813) | |
Ending balance (in shares) at Mar. 31, 2021 | 131,318,286 | 59,881,714 | 7 | |||||
Net income | 35,286 | $ 11,637 | 23,649 | |||||
Noncontrolling interest contributions | 24 | 24 | ||||||
Noncontrolling interest distributions | (555) | $ (555) | ||||||
Equity based compensation, net | 61,314 | 61,314 | ||||||
Settlement of LTIP RSUs, net (Note 25 - Earnings Per Share) (in shares) | (829,222) | 829,222 | ||||||
Settlement of LTIP RSUs, net (Note 25 - Earnings Per Share) | (1,253) | $ (10,543) | 9,290 | |||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) (in shares) | (1,774,192) | |||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) | $ (7,531) | (7,531) | ||||||
Ownership change reclassification | (1) | |||||||
Foreign currency translation adjustment | $ (92) | (92) | ||||||
Ending balance at Sep. 30, 2021 | 2,432,174 | (92) | $ 1,659,108 | $ 6 | $ 0 | 821,316 | (48,164) | |
Ending balance (in shares) at Sep. 30, 2021 | 130,489,064 | 58,936,744 | 6 | |||||
Beginning balance at Dec. 31, 2021 | 1,083,010 | (110) | $ 695,107 | $ 6 | $ 0 | 831,620 | (443,613) | |
Beginning balance (in shares) at Dec. 31, 2021 | 128,693,867 | 60,755,069 | 15 | |||||
Net income | (533,518) | $ (399,859) | (133,659) | |||||
Noncontrolling interest contributions | 42 | 42 | ||||||
Noncontrolling interest distributions | (248) | $ (248) | ||||||
Equity based compensation, net | 36,618 | 36,618 | ||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) (in shares) | (111,209) | 111,209 | ||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) | (86) | $ (552) | 466 | |||||
Settlement of LTIP RSUs, net (Note 25 - Earnings Per Share) (in shares) | (3,749,057) | 3,749,057 | ||||||
Settlement of LTIP RSUs, net (Note 25 - Earnings Per Share) | (4,825) | $ (17,911) | 13,086 | |||||
Settlement of other RSUs (Note 25 - Earnings Per Share) | 346,133 | |||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) (in shares) | (2,002,192) | |||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) | (5,650) | (5,650) | ||||||
Foreign currency translation adjustment | (257) | (257) | ||||||
Ending balance at Sep. 30, 2022 | 575,086 | (367) | $ 276,579 | $ 6 | $ 0 | 876,140 | (577,272) | |
Ending balance (in shares) at Sep. 30, 2022 | 124,833,601 | 62,959,276 | 15 | |||||
Beginning balance at Jun. 30, 2022 | 863,200 | (262) | $ 496,010 | $ 6 | $ 0 | 860,232 | (492,786) | |
Beginning balance (in shares) at Jun. 30, 2022 | 125,413,507 | 62,474,553 | 15 | |||||
Net income | (301,700) | $ (217,214) | (84,486) | |||||
Noncontrolling interest distributions | (56) | $ (56) | ||||||
Equity based compensation, net | 15,735 | 15,735 | ||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) (in shares) | (3,096) | 3,096 | ||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) | 30 | $ (12) | 42 | |||||
Settlement of LTIP RSUs, net (Note 25 - Earnings Per Share) (in shares) | (576,810) | 576,810 | ||||||
Settlement of LTIP RSUs, net (Note 25 - Earnings Per Share) | (74) | $ (2,149) | 2,075 | |||||
Settlement of other RSUs (Note 25 - Earnings Per Share) | 252,678 | |||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) (in shares) | (347,861) | |||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) | (1,944) | (1,944) | ||||||
Foreign currency translation adjustment | (105) | (105) | ||||||
Ending balance at Sep. 30, 2022 | $ 575,086 | $ (367) | $ 276,579 | $ 6 | $ 0 | $ 876,140 | $ (577,272) | |
Ending balance (in shares) at Sep. 30, 2022 | 124,833,601 | 62,959,276 | 15 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Operating Activities | |||
Net income | $ 124,320 | $ 35,286 | $ (533,518) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | (6,277) | (107,899) | 1,594,533 |
Net cash provided by (used in) operating activities | 118,043 | (72,613) | 1,061,015 |
Investing Activities | |||
Purchases and originations of loans held for investment | (1,151,925) | (2,658,540) | (5,259,356) |
Proceeds/payments received on loans held for investment | 677,777 | 1,446,930 | 1,712,364 |
Purchases and origination of loans held for investment, subject to nonrecourse debt | (12,247) | (25,081) | (89,907) |
Proceeds/payments on loans held for investment, subject to nonrecourse debt | 217,452 | 556,466 | 1,551,340 |
Purchases of debt securities | (557) | (1,449) | (9,565) |
Proceeds/payments on debt securities | 2,096 | 3,238 | 2,249 |
Purchases of MSRs | (9,014) | (2,352) | 0 |
Proceeds on sale of MSRs | 7,765 | 2,501 | 454,106 |
Acquisition of subsidiaries, net of cash acquired | (749) | (22,838) | 0 |
Acquisition of fixed assets | (4,178) | (8,636) | (9,195) |
Payments on deferred purchase price liability | (657) | (311) | (8,000) |
Debtor in possession ("DIP") Financing | (35,260) | 0 | 0 |
Other investing activities, net | (2,550) | 0 | (153) |
Net cash used in investing activities | (312,047) | (710,072) | (1,656,117) |
Financing Activities | |||
Proceeds from issuance of HMBS related obligations | 602,172 | 1,587,902 | 2,481,514 |
Payments of HMBS related obligations | (506,142) | (1,221,327) | (1,945,207) |
Proceeds from issuance of nonrecourse debt | 579,518 | 1,270,334 | 2,678,347 |
Payments on nonrecourse debt | (658,300) | (809,184) | (1,655,080) |
Proceeds from other financing lines of credit | 10,027,696 | 18,451,706 | 18,936,854 |
Payments on other financing lines of credit | (9,660,588) | (18,401,507) | (19,978,296) |
Debt issuance costs | (2,467) | (1,342) | (1,338) |
Payment of withholding taxes relating to equity-based compensation | 0 | 0 | (5,650) |
Member distributions | (75,000) | 0 | 0 |
Settlement of CRNCI | 0 | (203,216) | 0 |
Other financing activities, net | 806 | (531) | (207) |
Net cash provided by financing activities | 307,695 | 672,835 | 510,937 |
Foreign currency translation adjustment | (7) | (15) | (257) |
Net increase (decrease) in cash and restricted cash | 113,684 | (84,422) | |
Cash and restricted cash, beginning of period | 539,363 | 653,047 | 463,641 |
Cash and restricted cash, end of period | 653,047 | 516,962 | 379,219 |
Supplementary Cash Flows Information | |||
Cash paid for interest | 50,071 | 124,312 | 194,179 |
Cash paid for income taxes, net | 63 | 1,882 | 46 |
Loans transferred to loans held for investment, at fair value, from loans held for investment, subject to nonrecourse debt, at fair value | 283,428 | 242,650 | 803,648 |
Loans transferred to loans held for investment, subject to nonrecourse debt, at fair value, from loans held for investment, at fair value | 272,098 | 1,309,669 | 3,608,016 |
Loans transferred to loans held for investment, subject to HMBS, at fair value, from loans held for investment, at fair value | $ 42,909 | $ 1,393,897 | $ 2,053,387 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 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, Finance of America Mortgage LLC ("FAM) and Finance of America Reverse ("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. On October 20, 2022, the Board of Directors (the “Board”) of the Company authorized a plan to discontinue substantially all of the operations of the Company’s Mortgage Originations segment to strategically optimize and invest in the Company’s Reverse Originations, Commercial Originations, Lender Services and Portfolio Management segments. This plan will commence in the fourth quarter of 2022 and is expected to be substantially completed by the end of 2022. Refer to Note 27 - Subsequent Events for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 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 nine months ended September 30, 2022, three and six months ended September 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 September 30, 2022 and its results of operations and cash flows for the Successor three and nine months ended September 30, 2022, three and six months ended September 30, 2021, and th e 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 on 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. Tax Receivable Agreement Obligation In connection with the Business Combination, concurrently with the Closing, the Company entered into TRAs with certain owners of FoA Equity prior to the Business Combination (the "TRA Parties"). The TRAs generally provide for payment by the Company to the TRA Parties of 85% of the cash tax benefits, if any, that the Company is deemed to realize (calculated using certain simplifying assumptions) as a result of (i) tax basis adjustments as a result of sales and exchanges of units in connection with or following the Business Combination and certain distributions with respect to units, (ii) the Company’s utilization of certain tax attributes attributable to Blackstone Tactical Opportunities Associates - NQ L.L.C., a Delaware limited partnership, shareholders ("Blocker GP"), and (iii) certain other tax benefits related to entering into the TRAs, including tax benefits attributable to making payments under the TRAs. These tax basis adjustments generated over time may increase (for tax purposes) the depreciation and amortization deductions available to the Company and, therefore, may reduce the amount of U.S. federal, state and local tax that the Company would otherwise be required to pay in the future, although the IRS may challenge all or part of the validity of that tax basis, and a court could sustain such challenge. The tax basis adjustments upon sales or exchanges of units for shares of Class A Common Stock and certain distributions with respect to Class A LLC Units may also decrease gains (or increase losses) on future dispositions of certain assets to the extent tax basis is allocated to those assets. Actual tax benefits realized by the Company may differ from tax benefits calculated under the Tax Receivable Agreements as a result of the use of certain assumptions in the TRAs, including the use of an assumed weighted average state and local income tax rate to calculate tax benefits. The payments under the TRAs are not conditioned upon continued ownership of FoA or FoA Equity by the Continuing Unitholders. The Company accounts for the effects of these increases in tax basis and associated payments under the TRAs arising from exchanges in connection with the Business Combination as follows: • records an increase in deferred tax assets for the estimated income tax effects of the increases in tax basis based on enacted U.S. federal and state tax rates at the date of the exchange; • to the extent we estimate that the Company will not realize the full benefit represented by the deferred tax asset, based on an analysis that will consider, among other things, our expectation of future earnings, the Company reduces the deferred tax asset with a valuation allowance; and • initial measurement of the obligations was at fair value on the date of the Business Combination. Subsequently, the liability will be remeasured at fair value each reporting period, with any changes in fair value recognized in other, net, in the Condensed Consolidated Statements of Operations. The Company records obligations under the TRAs resulting from exchanges subsequent to the Business Combination, as they occur, at the gross undiscounted amount of the expected future payments as an increase to the liability along with the deferred tax asset and valuation allowance (if any) with an offset to additional paid-in capital. If the Company determines that it is no longer probable that a related contingent payment will be required based on expected future cash flows, a reversal of the liability will be recorded through earnings. For the period ended September 30, 2022, the Company determined that the contingent liability portion of the TRA obligation is no longer probable of occurring, which is consistent with the Company’s need to record the associated valuation allowance against the deferred tax assets (for more information regarding the valuation allowance see Note 24 - Income Taxes), and has recorded an adjustment through other, net, in the Condensed Consolidated Statements of Operations to release the previously estimated contingent TRA liabilities. As of September 30, 2022 and December 31, 2021, the Company had a liability of $4.9 million and $29.4 million, respectively, which is included in deferred purchase price liabilities within payables and other liabilities on the Condensed Consolidated Statements of Financial Condition. Recently Adopted Accounting Guidance Standard Description Effective Date Effect on Condensed Consolidated Financial Statements 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 September 30, 2022 Standard Description Date of Planned Adoption Effect on Condensed Consolidated Financial Statements 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. 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 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. Standard Description Date of Planned Adoption Effect on Condensed Consolidated Financial Statements 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 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 | 9 Months Ended |
Sep. 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 reverse mortgage loans. The transactions provide investors with the ability to invest in a pool of reverse mortgage loans secured by one-to-four-family residential properties. The transactions provide FAR with access to liquidity for these assets, ongoing servicing fees, and potential residual returns. The principal and interest on the outstanding certificates are paid using the cash flows from the underlying reverse mortgage loans, which serve as collateral for the debt. The securitizations are callable at or following the optional redemption date as defined in the respective indenture agreements. 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 $488.2 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 $506.6 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. In August 2022, FAR executed its optional redemption of outstanding securitized notes related to outstanding nonperforming HECM securitizations. As part of the optional redemption, FAR paid off notes with an outstanding principal balance of $337.4 million. The notes were paid off at par. As a result of the optional redemption, the Company will no longer be required to consolidate this securitization trust and the outstanding loans with unpaid principal balance in the amount of $363.0 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 FACo) and FAR subsidiaries. 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 nine months ended September 30, 2022, six months ended September 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): September 30, 2022 December 31, 2021 ASSETS Restricted cash $ 196,062 $ 311,652 Loans held for investment, subject to nonrecourse debt, at fair value 6,577,569 6,099,607 Other assets, net 76,177 67,593 TOTAL ASSETS $ 6,849,808 $ 6,478,852 LIABILITIES Nonrecourse debt, at fair value $ 6,788,437 $ 6,088,298 Payables and other liabilities 778 428 TOTAL VIE LIABILITIES 6,789,215 6,088,726 Retained bonds and beneficial interests eliminated in consolidation (263,055) (231,229) TOTAL CONSOLIDATED LIABILITIES $ 6,526,160 $ 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 residential properties and provide FAM with access to liquidity for these assets and ongoing servicing fees. The principal and interest on the outstanding certificates are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. In 2021, FAM executed certain securitizations, where FAM's beneficial interest in the securitization is limited to its U.S. Risk Retention Certificates, a 5% eligible vertical interest in the Trust. The Company determined that the securitization structures meets the definition of a VIE and concluded that the Company does not hold a significant variable interest in the securitizations and that the contractual role as servicer is not a variable interest. The transfer of the loans to the VIEs was determined to be a sale. The Company derecognized the mortgage loans and did not consolidate the trusts. 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): September 30, 2022 December 31, 2021 Unconsolidated securitization trusts: Total collateral balances – Unpaid Principal Balance ("UPB") $ 1,009,386 $ 1,085,340 Total certificate balances $ 1,009,386 $ 1,085,340 As of September 30, 2022 and December 31, 2021, there were $0.7 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 established for the purpose of securitizing agricultural loans, where its beneficial interest in the securitization is limited to its Issuer Residual Interest Certificates, a 5% eligible 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 September 30, 2022, the consolidated balance of the agricultural loans transferred to the VIE and the related nonrecourse liability had a fair value of $163.8 million and $160.3 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 | 9 Months Ended |
Sep. 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 wer e no transfers within the hierarchy for the Successor three and nine months ended September 30, 2022, six months ended September 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 23.2 % NM 20.8 % Loss frequency NM 3.9 % NM 4.5 % Loss severity 2.4% - 9.5% 2.6 % 3.1% - 7.7% 3.3 % Discount rate NM 5.2 % NM 2.4 % Average draw rate NM 1.1 % 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, include HECM loans previously purchased out of Ginnie Mae HMBS pools and non FHA-insured jumbo reverse mortgages, which have been subsequently securitized and serve as collateral for the issued debt. These loans are not traded in active and open markets with readily observable market prices. The Company classifies reverse mortgage loans held for investment, subject to nonrecourse debt as Level 3 assets within the GAAP hierarchy. The Company values nonperforming securitized HECM buyouts, performing securitized HECM buyouts, and securitized non-agency reverse mortgage loans utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio. 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 39.5 % NM 41.2 % Loss frequency 23.1% - 100.0% 50.6 % 25.0% - 100% 59.5 % Loss severity 2.4% - 9.5% 4.4 % 3.1% - 7.7% 4.3 % Discount rate NM 8.6 % 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 8.3 NM 9.0 Conditional repayment rate NM 15.1 % NM 13.3 % Loss severity 2.4% - 9.5% 4.9 % 3.1% - 7.7% 7.7 % Discount rate NM 8.2 % NM 3.7 % Non-Agency Reverse Mortgage - Securitized The following table presents the significant unobservable assumptions used in the fair value measurements of securitized non-agency reverse mortgage loans for the periods indicated: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 9.4 NM 7.5 Loan to value 0.0% - 73.0% 42.6 % 0.1% - 64.7% 43.4 % Conditional repayment rate NM 15.0 % NM 18.6 % Loss severity NM 10.0 % NM 10.0 % Home price appreciation (6.8)% - 6.3% 3.8 % (4.6)% - 14% 4.7 % Discount rate NM 7.2 % 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 3 - 39 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (SMM) NM 10.5 % NM 14.1 % Discount rate NM 10.2 % NM 5.7 % Loss rate 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 reverse mortgage loans not yet securitized, unsecuritized tails, and certain HECMs purchased out of Ginnie Mae HMBS ("Inventory Buyouts") that the Company intends for future securitization transfers. 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 44.6 % NM 43.2 % Loss frequency NM 54.3 % NM 59.4 % Loss severity 2.4% - 9.5% 5.9 % 3.1% - 7.7% 3.8 % Discount rate NM 8.6 % NM 4.1 % Non-Agency Reverse Mortgage Loans The fair value of non-agency reverse mortgage loans is based on values for investments with similar investment grade ratings and the value the Company would expect to receive if the whole loans were sold to an investor. The Company values non-agency reverse mortgage loans utilizing a present value methodology that discounts estimated projected cash flows over the life of the loan portfolio. 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 11.7 NM 9.2 Loan to value 0.1% - 64.7% 43.6 % 0.2% - 68.7% 47.8 % Conditional repayment rate NM 13.6 % NM 14.8 % Loss severity NM 10.0 % NM 10.0 % Home price appreciation (6.8)% - 6.3% 3.6 % (4.6)%-14.0% 4.4 % Discount rate NM 7.1 % 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 - 31 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (SMM) NM 14.0 % NM 11.9 % Discount rate 10.2% - 14.8% 10.3 % 5.7% - 10.0% 5.9 % Loss rate 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 14 - 24 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Discount rate NM 9.3 % NM 4.8 % Prepayment rate (SMM) NM 17.6 % 9.0% - 100.0% 22.1 % Default rate (CDR) 0.0% - 1.0% 0.9 % 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 includes all mortgage loans that can be sold to the Agencies, which are valued predominantly by published forward agency prices. 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 – To the extent observable market prices are not available, the Company will determine the fair value of mortgage loans held for sale using a collateral based valuation model, which approximates expected cash proceeds on liquidation. For loans where bid prices or commitment prices are unavailable, these valuation models estimate the exit price the Company expects to receive in the loan’s principal market and are based on a combination of recent appraisal values, adjusted for certain loss factors. The Company classifies these loans as Level 3 assets within the GAAP hierarchy. Commercial Mortgage Loans The Co mpany 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (CPR) 18.1% - 25.0% 18.8 % 1.0% - 17.1% 14.2 % Discount rate NM 7.9 % 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 balloon structures, as well as a 30-year structure. 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 Portfolio Lending mortgage loans held for sale for the periods indicated: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (CPR) 0.0% - 20.1% 14.3 % 0.0% - 14.5% 8.7 % Discount rate NM 7.9 % NM 3.9 % Default rate (CDR) NM 1.0 % 1.0% - 54.0% 3.2 % MSRs As of September 30, 2022 and December 31, 2021, the Company valued MSRs internally. The significant assumptions utilized to determine fair value are proje cted 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: September 30, 2022 December 31, 2021 Capitalization servicing rate 1.2 % 1.1 % Capitalization servicing multiple 4.8 4.4 Weighted average servicing fee (in basis points) 26 25 The Company utilized the following weighted average assumptions in estimating the fair value of MSRs: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 0.9% - 7.9% 5.8 % 0.0% - 12.8% 8.3 % Discount rate NM 11.7 % NM 8.5 % The following table summarizes the estimated change in the fair value of MSRs from adverse changes in the significant assumptions (in thousands): September 30, 2022 Weighted Average Prepayment Speed Discount Rate Impact on fair value of 10% adverse change $ (2,397) $ (4,402) Impact on fair value of 20% adverse change $ (4,666) $ (8,461) 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 23.2 % NM 20.8 % Discount rate NM 5.2 % 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Performing/Nonperforming HECM securitizations Weighted average remaining life (in years) 1.8 - 1.9 1.9 0.2 - 0.8 0.5 Conditional repayment rate 18.7% - 22.8% 21.0 % 30.8% - 54.4% 43.5 % Discount rate NM 8.2 % NM 2.3 % Securitized Non-Agency Reverse Weighted average remaining life (in years) 0.5 - 11.2 6.7 1.0 - 2.3 1.6 Conditional repayment rate 11.9% - 31.6% 16.9 % 18.4% - 35.9% 28.2 % Discount rate NM 7.1 % 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in months) NM 5.1 NM 4.0 Weighted average prepayment speed (SMM) NM 13.7 % NM 14.0 % Discount rate NM 7.6 % 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 September 30, 2022 and December 31, 2021, the Company utilized a discou nt rate of 8% and 35%, respectively, to value the de ferred 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 30.2% and 13.5% discount rate at September 30, 2022 and December 31, 2021, respectively, applied to future payments under the Tax Receivable Agreements. The Company classifies the TRA obligation as Level 3 in the fair value hierarchy. 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 1.3% - 6.4% 4.7 % 2.0% - 11.0% 7.7 % Discount rate 12.6% 12.6 % 8.1% - 10.1% 9.1 % Weighted average delinquency rate NM 1.7 % 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) 2.4 - 24.3 4.9 2.6 - 25.0 5.1 Discount rate (16.6)% - 12.2% 7.1 % 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): September 30, 2022 Total Fair Value Level 1 Level |
Reverse Mortgages Portfolio Com
Reverse Mortgages Portfolio Composition | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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: September 30, 2022 December 31, 2021 Reverse mortgage loans: Reverse mortgage loans held for investment, subject to HMBS related obligations $ 10,609,500 $ 9,849,835 Reverse mortgage loans held for investment: Non-agency reverse mortgages 839,877 432,144 Loans not securitized (1) 137,477 266,723 Unpoolable loans (2) 91,286 104,551 Unpoolable tails 9,408 12,008 Total reverse mortgage loans held for investment 1,078,048 815,426 Reverse mortgage loans held for investment, subject to nonrecourse debt: Performing HECM buyouts 320,625 289,089 Nonperforming HECM buyouts 584,206 590,729 Non-agency reverse mortgages 5,596,371 4,285,661 Total reverse mortgage loans held for investment, subject to nonrecourse debt 6,501,202 5,165,479 Total owned reverse mortgage portfolio 18,188,750 15,830,740 Loans reclassified as government guaranteed receivable 67,706 48,625 Loans serviced for others 12,991 17,840 Total serviced reverse mortgage loan portfolio $ 18,269,447 $ 15,897,205 (1) Loans not securitized represent primarily newly originated loans. (2) Unpoolable loans represent primarily loans that have reached 98% of their Maximum Claim Amount ("MCA"). The table below summarizes the reverse mortgage portfolio owned by the Company by product type (in thousands): September 30, 2022 December 31, 2021 Fixed rate loans $ 6,364,867 $ 5,384,865 Adjustable rate loans 11,823,883 10,445,875 Total owned reverse mortgage portfolio $ 18,188,750 $ 15,830,740 As of September 30, 2022 and December 31, 2021, th ere were $506.6 million and $599.1 million, |
Loans Held for Investment, Subj
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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): September 30, 2022 December 31, 2021 Loans held for investment, subject to HMBS related obligations - UPB $ 10,609,500 $ 9,849,835 Fair value adjustments 307,051 706,219 Total loans held for investment, subject to HMBS related obligations, at fair value $ 10,916,551 $ 10,556,054 |
Loans Held for Investment, Su_2
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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): September 30, 2022 December 31, 2021 Loans held for investment, subject to nonrecourse debt - UPB: Reverse mortgage loans $ 6,501,202 $ 5,165,479 Commercial mortgage loans 457,525 388,788 Fair value adjustments (217,336) 663,927 Total loans held for investment, subject to nonrecourse debt, at fair value $ 6,741,391 $ 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): September 30, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual status Fair value: Commercial mortgage loans $ 17,255 $ 26,081 Total fair value 17,255 26,081 Aggregate UPB: Commercial mortgage loans 18,234 26,472 Total aggregate UPB 18,234 26,472 Difference $ (979) $ (391) |
Loans Held for Investment, at F
Loans Held for Investment, at Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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): September 30, 2022 December 31, 2021 Loans held for investment - UPB: Reverse mortgage loans $ 1,078,048 $ 815,426 Commercial mortgage loans 181,001 89,267 Fair value adjustments 48,364 126,635 Total loans held for investment, at fair value $ 1,307,413 $ 1,031,328 As of September 30, 2022 and December 31, 2021, th ere were $1.6 million and $2.3 million, respectively, of commercial loans that were greater than 90 days past due. As of September 30, 2022 and December 31, 2021, there were $1,118.4 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 | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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): September 30, 2022 December 31, 2021 Loans held for sale - UPB: Residential mortgage and home improvement loans $ 648,123 $ 1,859,788 Commercial mortgage loans 235,789 145,463 Fair value adjustments (24,262) 47,127 Total loans held for sale, at fair value $ 859,650 $ 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 status (in thousands): September 30, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual status Fair value: Residential mortgage and home improvement loans $ 5,493 $ 3,195 Commercial mortgage loans 4,338 3,163 Total fair value 9,831 6,358 Aggregate UPB: Residential mortgage loans 6,191 3,753 Commercial mortgage loans 5,099 3,323 Total aggregate UPB 11,290 7,076 Difference $ (1,459) $ (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 months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ 1,229,594 $ 2,052,378 $ 2,057,542 $ 2,140,361 $ 2,222,811 Originations/purchases/repurchases 2,888,128 12,975,131 7,717,616 14,827,573 8,569,575 Proceeds from sales (3,268,201) (14,280,522) (7,887,849) (15,293,145) (8,878,131) Loans acquired through business combinations — — — — 35,226 Net transfers (to) from loans held for investment — — (10,460) 7,034 — Gain on loans held for sale, net 10,287 122,641 174,655 368,884 188,564 Net fair value gain (loss) on loans held for sale (158) (9,978) 158 955 2,316 Ending balance $ 859,650 $ 859,650 $ 2,051,662 $ 2,051,662 $ 2,140,361 As of September 30, 2022 and December 31, 2021, there were $0.8 billion and $2.0 billion, respectively, in loans held for sale, at fair value pledged as collateral for financing lines of credit. |
Mortgage Servicing Rights, at F
Mortgage Servicing Rights, at Fair Value | 9 Months Ended |
Sep. 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): September 30, 2022 December 31, 2021 Fannie Mae/Freddie Mac $ 7,207,398 $ 37,079,995 Ginnie Mae 535,952 1,109,962 Private investors 1,030,666 1,109,459 Total UPB $ 8,774,016 $ 39,299,416 Weighted average interest rate 3.55 % 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 September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning UPB $ 29,494,649 $ 39,299,416 $ 30,592,187 $ 26,675,358 $ 22,269,362 Originated MSRs 1,788,998 9,421,902 5,380,307 10,520,166 6,312,227 Purchased MSRs — — 228,470 234,007 866,806 Sold MSRs (22,037,083) (37,529,103) (320,028) (320,028) (1,090,267) Portfolio runoff (281,332) (1,611,107) (1,506,451) (2,493,506) (1,488,977) Other (191,216) (807,092) (283,370) (524,882) (193,793) Ending UPB $ 8,774,016 $ 8,774,016 $ 34,091,115 $ 34,091,115 $ 26,675,358 The activity in the MSRs asset consisted of the following (in thousands): For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ 359,006 $ 427,942 $ 290,938 $ 267,364 $ 180,684 Originations 20,241 114,903 52,252 102,301 65,964 Purchases — — 2,291 2,352 9,014 Sales (266,723) (470,018) (2,501) (2,501) (8,647) Changes in fair value due to: Changes in market inputs or assumptions used in valuation model (4,382) 56,938 13,165 (2,886) 35,109 Changes in fair value due to portfolio runoff and other (5,073) (26,696) (15,196) (25,681) (14,760) Ending balance $ 103,069 $ 103,069 $ 340,949 $ 340,949 $ 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 $4.6 million and $32.0 million, for the Successor three and nine months ended September 30, 2022, and were $14.4 million and $28.1 million, for the Successor three and six months ended September 30, 2021, respectively; and $13.0 million for the Predecessor three months ended March 31, 2021. These fees and changes in fair value of the MSRs are recorded within fee income on the Condensed Consolidated Statements of Operations. As of September 30, 2022 and December 31, 2021, there were $59.8 million and $142.4 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: September 30, 2022 December 31, 2021 Number of Loans Unpaid Principal Balance Number of Loans Unpaid Principal Balance Portfolio delinquency 30 days 1.1 % 0.9 % 0.4 % 0.3 % 60 days 0.2 % 0.2 % 0.1 % 0.0 % 90 or more days 0.6 % 0.5 % 0.1 % 0.1 % Total 1.9 % 1.6 % 0.6 % 0.4 % Foreclosure/real estate owned 0.1 % 0.1 % 0.0 % 0.0 % |
Derivatives and Risk Management
Derivatives and Risk Management Activities | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives 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 and SOFR, 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 as of September 30, 2022 or December 31, 2021. The following tables summarize the fair value and notional amount of derivative instruments (in thousands): September 30, 2022 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount IRLCs and LPCs $ 3,678 $ 344,617 $ 13,740 $ 590,007 Forward MBS and TBAs 32,254 1,162,300 97 15,071 Interest rate swaps and futures contracts 53,967 1,430,600 — — Total fair value and notional amount $ 89,899 $ 2,937,517 $ 13,837 $ 605,078 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 September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Derivative activity Successor Predecessor IRLCs and LPCs $ (24,189) $ (34,848) $ (5,119) $ (8,656) $ (49,557) Forward MBS and TBAs 54,856 265,822 (8,349) (48,638) 113,331 Interest rate swaps and futures contracts 53,123 292,666 1,254 (36,129) 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. The Company either maintains or deposits 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 Com |
Fixed Assets and Leasehold Impr
Fixed Assets and Leasehold Improvements, Net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets and Leasehold Improvements, Net | 12. Fixed Assets and Leasehold Improvements, Net Fixed assets and leasehold improvements, net, consisted of the following (in thousands): September 30, 2022 December 31, 2021 Estimated Useful Life Computer hardware and software $ 23,482 $ 28,726 3 - 5 years Furniture and fixtures 3,587 4,450 5 - 7 years Leasehold improvements 3,324 4,217 * Buildings and land 164 164 10 years Vehicles 37 48 10 years Total fixed assets 30,594 37,605 Less: Accumulated depreciation and amortization (10,766) (8,349) Total fixed assets and leasehold improvements, net $ 19,828 $ 29,256 *Shorter of life of lease or useful life of assets. The depreciation and amortization expense was $3.6 million and $9.4 million for the three and nine months ended September 30, 2022, respectively. The depreciation and amortization expense was $3.0 million and $6.0 million for the Successor three and six months ended September 30, 2021, respectively, and $2.9 million for the Predecessor three months ended March 31, 2021. Depreciation expense is recorded in general and administrative expenses in the Condensed Consolidated Statements of Operations. The Company evaluates the carrying value of long-lived assets, including the fixed assets and leasehold improvements when indicators of impairment exist in accordance with ASC 360, Property, Plant, and Equipment (ASC 360). The carrying value of a long-lived asset is considered impaired when the estimated separately identifiable, undiscounted cash flows expected to result from use and eventual disposal from such an asset are less than the carrying value of the asset. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. During the first half of 2022, the Company observed that inflationary measures began to rise, reducing the demand for mortgage products from its Mortgage Originations segment and responded by implementing cost cutting measures. As the length and magnitude of the downturn in mortgage demand continued into the third quarter, including increasingly compressed margins and longer expected duration of such market pressures, the Mortgage Origination reporting unit's current and expected future operating losses indicated that the fixed assets and leasehold improvements included in the reporting unit may not be recoverable and an impairment analysis was performed as of September 30, 2022 . Based on the analysis, the Company wrote off certain assets and recognized an impairment charge of $8.1 million for the fixed assets and leasehold improvements, which is recorded in impairment of intangibles and other assets in the Condensed Consolidated Statements of Operations. There was no impairment charge in any other periods presented |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 13. Intangible Assets, Net Intangible assets, net, consisted of the following (in thousands): September 30, 2022 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 91,600 $ — $ (51,200) $ 40,400 Total non-amortizing intangibles $ 91,600 $ — $ (51,200) $ 40,400 Amortizing intangibles Broker/customer relationships 8 - 15 $ 541,100 $ (80,736) $ (70,464) $ 389,900 Trade names and other 5 - 10 10,937 (1,425) (1,512) 8,000 Total amortizing intangibles $ 552,037 $ (82,161) $ (71,976) $ 397,900 Total intangibles $ 643,637 $ (82,161) $ (123,176) $ 438,300 December 31, 2021 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 178,000 $ — $ (86,400) $ 91,600 Total non-amortizing intangibles $ 178,000 $ — $ (86,400) $ 91,600 Amortizing intangibles Broker/customer relationships 8 - 15 $ 541,100 $ (39,711) $ — $ 501,389 Trade names and other 5 - 10 10,937 (1,026) — 9,911 Total amortizing intangibles $ 552,037 $ (40,737) $ — $ 511,300 Total intangibles $ 730,037 $ (40,737) $ (86,400) $ 602,900 Intangible assets deemed to have an indefinite life are not amortized but are instead reviewed annually for impairment of value or when indicators of a potential impairment are present. The Company performs its annual impairment testing as of October 1 and monitors for interim triggering events on an ongoing basis as events occur or circumstances change. The Company estimated the fair value of the indefinite life intangibles for all the reporting units utilizing a relief from royalty approach and the significant assumptions used to measure fair value include discount rate, terminal factors, and royalty rate. This valuation resulted in a Level 3 nonrecurring fair value measurement. During the first half of 2022, the Company observed that inflationary measures began to rise, reducing the demand for mortgage products from its Mortgage Originations segment and responded by implementing cost cu tting measures. As the length and magnitude of the downturn in mortgage demand continued during the third quarter of 2022, including increasingly compressed margins and longer expected duration of such market pressures, an interim i mpairment analysis was triggered as of September 30, 2022. Based on the analysis, the Company recognized an indefinite lived intangible asset impairment of $51.2 million in the third quarter of 2022. The impairment was recognized in impairment of intangibles and other assets in the Condensed Consolidated Statements of Operations. The impairment of these intangible assets for each reporting unit is as follows: $41.9 million at the Mortgage Originations reporting unit, $5.5 million at the Commercial Originations reporting unit, and $3.8 million at the Portfolio Management reporting unit. The Company recognized an indefinite lived intangible asset impairment of $86.4 million for the year ended December 31, 2021. The Company’s definite lived intangible assets comprise various customer/broker relationships, certain technological assets and definite lived trade names acquired through various acquisitions. These assets are amortized on a straight-line basis over their useful lives and are subject to recoverability testing whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, in accordance with ASC 360. During the third quarter of 2022, the Company observed that the length and magnitude of the downturn in mortgage demand had significantly increased compared to prior periods. As a result, our Mortgage Origination reporting unit's current and expected future operating losses indicated that the definite lived intangible assets included in the reporting unit may not be recoverable, and an impairment analysis was performed as of September 30, 2022. Based on the analysis, the Company wrote off and recognized a definite lived intangible asset impairment of $72.0 million for the Mortgage Originations reporting unit in the third quarter of 2022. The impairment was recognized in impairment of intangibles and other assets in the Condensed Consolidated Statements of Operations . Amortization expense was $13.8 million and $41.4 million for the three and nine months ended September 30, 2022, respectively . Amortization expense was $13.5 million and $26.9 million for the Successor three and six months ended September 30, 2021, respectively, and $0.6 million for the Predecessor three months ended March 31, 2021. The estimated amortization expense for each of the five succeeding fiscal years and thereafter as of September 30, 2022 is as follows (in thousands): Year Ending December 31, Amount Remainder of 2022 $ 11,862 2023 47,446 2024 47,446 2025 47,446 2026 47,433 Thereafter 196,267 Total future amortization expense $ 397,900 |
HMBS Related Obligations, at Fa
HMBS Related Obligations, at Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
HMBS Related Obligations, at Fair Value | 14. HMBS Related Obligations, at Fair Value HMBS related obligations, at fair value, consisted of the following (in thousands): September 30, 2022 December 31, 2021 Ginnie Mae loan pools - UPB $ 10,587,475 $ 9,849,835 Fair value adjustments 197,366 572,523 Total HMBS related obligations, at fair value $ 10,784,841 $ 10,422,358 Weighted average remaining life (in years) 3.9 4.6 Weighted average interest rate 4.1 % 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. T he Company was servicing 1,980 |
Nonrecourse Debt, at Fair Value
Nonrecourse Debt, at Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Nonrecourse Debt At Fair Value | 15. 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 September 30, 2022 December 31, 2021 Securitization of performing / nonperforming HECM loans July 2020 - August 2022 July 2030 - August 2032 2.69% - 9.32% $ 2,250,554 $ 994,563 $ 922,970 Securitization of non-agency reverse loans May 2018 - June 2022 March 2050 - November 2069 1.25% - 4.50% 7,537,674 5,851,878 4,630,203 Securitization of Fix & Flip loans April 2021 May 2025 2.10% - 5.40% $ 268,511 268,511 268,511 Total consolidated VIE nonrecourse debt UPB 7,114,952 5,821,684 Nonrecourse MSR financing liability, at fair value (1) 59,800 142,435 Nonrecourse commercial loan financing liability (2) 153,770 107,744 Fair value adjustments (582,996) 39,379 Total nonrecourse debt, at fair value $ 6,745,526 $ 6,111,242 (1) As of December 31, 2021, the financing liability is due to a related party. Refer to Note 23 - Related Party Transactions for additional information. (2) 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 September 30, 2022, estimated maturities for nonrecourse debt for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Estimated Maturities (1) Remainder of 2022 $ 309,549 2023 1,660,548 2024 1,977,994 2025 262,030 2026 3,058,601 Thereafter — Total payments on nonrecourse debt $ 7,268,722 (1) |
Other Financing Lines of Credit
Other Financing Lines of Credit | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Other Financing Lines Of Credit | 16. 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 Capacity (1) September 30, 2022 December 31, 2021 Mortgage Lines: October 2022 -August 2023 SOFR + applicable margin First Lien Mortgages $ 2,000,000 $ 601,635 $ 1,802,348 March 2026 Ameribor + applicable margin MSRs 50,000 10,227 138,524 November 2022 - December 2022 SOFR + applicable margin Mortgage Related Assets 39,065 39,065 50,559 November 2022 SOFR + applicable margin HI Consumer Loans 50,000 11,770 5,107 Subtotal mortgage lines of credit $ 2,139,065 $ 662,697 $ 1,996,538 Reverse Lines: November 2022 - September 2023 LIBOR + applicable margin First Lien Mortgages $ 1,475,000 $ 935,434 $ 714,013 October 2022 Bond accrual rate + applicable margin Mortgage Related Assets 345,000 292,524 297,893 N/A LIBOR + applicable margin MSRs — — 78,952 May 2023 Prime + .50%; 6% floor Unsecuritized Tails 50,000 40,000 38,544 Subtotal reverse lines of credit $ 1,870,000 $ 1,267,958 $ 1,129,402 Commercial Lines: August 2023 2.50% / 3.25% Encumbered Agricultural Loans $ 75,000 $ 27,310 $ 25,127 April 2023 - November 2023 Ameribor + applicable margin First Lien Mortgages 309,000 290,534 167,159 February 2023 15% Second Lien Mortgages 45,000 45,000 24,175 January 2024 SOFR + applicable margin Mortgage Related Assets 12,500 12,500 5,041 Subtotal commercial lines of credit $ 441,500 $ 375,344 $ 221,502 Total other financing lines of credit $ 4,450,565 $ 2,305,999 $ 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 September 30, 2022. As of September 30, 2022 and December 31, 2021, the weighted average outstanding interest rates on outstanding financing lines of credit of the Company were 5.66% 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 September 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, amendments to such financial covenants effective as of September 30, 2022, or paid off the line of credit, 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 September 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 September 30, 2022 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 150,000 $ 174,785 $ 24,785 Liquidity 55,000 66,098 11,098 Leverage Ratio 13:1 8.9:1 55,118 Material Decline in Lender Adjusted Net Worth: Lender Adjusted Tangible Net Worth (Quarterly requirement) (3) $ 170,459 $ 174,785 $ 4,326 Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) (3) 174,734 174,785 51 FAR Adjusted Tangible Net Worth (2) $ 250,000 $ 250,750 $ 750 Liquidity 20,000 69,951 49,951 Leverage Ratio 7:1 6.2:1 30,765 (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 requirement) (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. |
Payables and Other Liabilities
Payables and Other Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Payables and Other Liabilities | 17. Payables and Other Liabilities Payables and other liabilities consisted of the following (in thousands): September 30, 2022 December 31, 2021 Accrued liabilities $ 167,140 $ 114,931 Lease liabilities 63,587 65,518 Accrued compensation expense 55,952 129,919 GNMA reverse mortgage buyout payable 48,853 31,274 Estimate of claim losses 18,247 14,993 Derivative liabilities 13,837 26,678 Deferred purchase price liabilities 9,707 47,479 Liability for loans eligible for repurchase from GNMA 8,670 7,956 Repurchase reserves 6,293 8,685 Warrant liability 1,867 5,497 Deferred tax liability, net 1,482 18,581 Total payables and other liabilities $ 395,635 $ 471,511 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 18. Leases The table below summarizes the Company's operating lease portfolio (in thousands): September 30, 2022 December 31, 2021 Right-of-use assets $ 59,295 $ 62,528 Lease liabilities 63,587 65,518 Weighted average remaining lease term (in years) 6.48 6.47 Weighted average discount rate 6.03 % 6.27 % ASC 842, Leases (ASC 842) stipulates that the right-of-use (ROU) asset in an operating lease is subject to the impairment guidance in ASC 360, similar to other long-lived assets . Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net cash flows expected to be generated by that asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. As the length and magnitude of the downturn in mortgage demand, including compressed revenue margins, had significantly increased compared to prior periods, the Mortgage Originations reporting unit's current and expected future operating losses triggered an impairment analysis as of September 30, 2022. Based on the analysis, the Company recognized an impairment charge of $6.9 million for the ROU during the third quarter of 2022, which is recorded in impairment of intangibles and other assets in the Condensed Consolidated Statements of Operations. There was no material impairment charge in any other periods presented . The table below summarizes the Company's net operating lease cost (in thousands): For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Operating lease cost $ 5,244 $ 16,469 $ 5,894 $ 11,419 $ 5,490 Short-term lease cost 790 2,485 1,823 2,629 1,035 Total operating and short term lease cost 6,034 18,954 7,717 14,048 6,525 Variable lease cost 763 2,818 732 2,747 1,808 Sublease income (309) (1,001) (421) (855) (464) Net lease cost $ 6,488 $ 20,771 $ 8,028 $ 15,940 $ 7,869 The table below summarizes other information related to the Company’s operating leases (in thousands): For the nine months ended September 30, 2022 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 15,109 $ 10,393 $ 5,423 Leased assets obtained in exchange for new operating lease liabilities 19,312 23,783 701 The following table presents a maturity analysis of operating leases and a reconciliation of the undiscounted cash flows to lease liabilities as of September 30, 2022 (in thousands): Remainder of 2022 $ 4,945 2023 18,202 2024 13,525 2025 8,799 2026 6,462 2027 5,294 Thereafter 21,847 Total undiscounted lease payments 79,074 Less: amounts representing interest (15,487) Total lease liabilities $ 63,587 |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | 19. 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 September 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 three 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. On November 4, 2022, the court ordered that each of the plaintiffs’ individual PAGA claims must be arbitrated and that their representative PAGA claims will be stayed pending a ruling by the California Supreme Court in the third-party case Adolph v. Uber Technologies, Inc. , which will determine whether the representative portion of a PAGA claim can survive following the arbitration of the individual portion of the PAGA claim. 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 $1.2 million and $3.8 million for the Su ccessor three and nine months ended September 30, 2022, respectively, and were $3.9 million and $7.5 million for the Successor three and six months ended September 30, 2021, respectively, and $4.2 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. |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. 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. The contracts are generally fixed term arrangements, with standard notification and transition terms governing termination of such contracts. 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 manage the foreclosure process and the filing of any insurance claims with HUD. The sub-servicers have responsibility for remitting timely advances and statements to borrowers and timely and accurate claims to HUD, including compliance with local, state and federal regulatory requirements. Although the Company has outsourced its servicing function, as the issuer, the Company has responsibility for all aspects of servicing of the HECM loans and related HMBS beneficial interests under the terms of the servicing contracts, state laws and regulations. Additionally, the sub-servicers are responsible for remitting payments to investors, including interest accrued, interest shortfalls and funding advances such as taxes and home insurance premiums. Advances are typically remitted by the Company to the sub-servicers on a daily basis. Contractual sub-servicing fees related to sub-servicer arrangements are generally based on a fixed dollar amount per loan and are included in general and administrative expenses in the Condensed Consolidated Statements of Operations. 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 reverse mortgage loans were approximately $3.1 billion as of September 30, 2022 compared to $2.6 billion as of December 31, 2021. The outstanding unfunded commitments available to borrowers related to fix & flip loans were approximately $133.0 million and $94.9 million as of September 30, 2022 and December 31, 2021, respectively. This additional borrowing capacity is primarily in the form of undrawn lines of credit. The outstanding unfunded commitments available to borrowers related to agricultural loans were approximately $19.7 million and $78.5 million as of September 30, 2022 and December 31, 2021, respectively. The Company also has commitments to purchase and sell loans totaling $115.3 million and $42.0 million, respectively, as of September 30, 2022, compared to $178.6 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 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, |
Business Segment Reporting
Business Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | 21. Business Segment Reporting The following tables are a presentation of financial information by segment for the periods indicated (in thousands): For the nine months ended September 30, 2022 Successor 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 $ 239,430 $ — $ — $ (1,057) $ (463) $ 237,910 $ — $ (11,574) $ 226,336 Net fair value gains (losses) on loans and related obligations — 254,830 556 — (255,754) (368) — 6,040 5,672 Fee income 52,120 4,875 45,233 178,043 64,814 345,085 — (28,287) 316,798 Net interest income (expense) Interest income 35,097 — — 1,374 4,980 41,451 297 — 41,748 Interest expense (26,770) — — (146) (63,623) (90,539) (20,361) — (110,900) Net interest income (expense) 8,327 — — 1,228 (58,643) (49,088) (20,064) — (69,152) Total revenues 299,877 259,705 45,789 178,214 (250,046) 533,539 (20,064) (33,821) 479,654 Total expenses 397,209 125,092 67,210 190,111 97,204 876,826 90,445 (33,800) 933,471 Impairment of intangibles and other assets (128,884) — (5,500) — (3,800) (138,184) — — (138,184) Other, net — 3,276 418 3,212 848 7,754 33,459 21 41,234 Net income (loss) before taxes $ (226,216) $ 137,889 $ (26,503) $ (8,685) $ (350,202) $ (473,717) $ (77,050) $ — $ (550,767) Depreciation and amortization $ 8,407 $ 29,063 $ 1,660 $ 9,602 $ 302 $ 49,034 $ 1,832 $ — $ 50,866 Total assets $ 724,099 $ 354,007 $ 16,453 $ 203,157 $ 19,871,260 $ 21,168,976 $ 1,581,538 $ (1,560,617) $ 21,189,897 For the three months ended September 30, 2021 Successor 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 $ 200,294 $ — $ — $ — $ 13,664 $ 213,958 $ — $ (3,863) $ 210,095 Net fair value gains (losses) on loans and related obligations 1,145 109,408 13,604 — (448) 123,709 — (1,200) 122,509 Fee income 30,827 1,022 14,252 87,592 14,937 148,630 — (2,905) 145,725 Net interest income (expense) Interest income 15,363 — — 37 379 15,779 83 — 15,862 Interest expense (12,556) — — (114) (18,178) (30,848) (6,803) (40) (37,691) Net interest income (expense) 2,807 — — — — — (77) — (17,799) (15,069) (6,720) (40) (21,829) Total revenues 235,073 110,430 27,856 87,515 10,354 471,228 (6,720) (8,008) 456,500 Total expenses 220,331 41,354 21,678 78,688 30,068 392,119 28,672 (8,913) 411,878 Other, net — 221 133 22 252 628 10,205 (905) 9,928 Net income (loss) before taxes $ 14,742 $ 69,297 $ 6,311 $ 8,849 $ (19,462) $ 79,737 $ (25,187) $ — $ 54,550 Depreciation and amortization $ 2,822 $ 9,970 $ 638 $ 2,892 $ 18 $ 16,340 $ 152 $ — $ 16,492 Total assets $ 2,978,565 $ 789,351 $ 120,116 $ 358,684 $ 18,429,429 $ 22,676,145 $ 964,815 $ (972,867) $ 22,668,093 For the six months ended September 30, 2021 Successor 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 $ 385,680 $ — $ — $ — $ 21,412 $ 407,092 $ — $ (9,420) $ 397,672 Net fair value gains on loans and related obligations 1,145 203,944 24,425 — 10,776 240,290 — 13,370 253,660 Fee income 61,172 1,976 26,376 168,722 18,514 276,760 — (40,171) 236,589 Net interest income (expense) Interest income 28,200 — — 66 756 29,022 — (9) 29,013 Interest expense (23,417) (9) — (158) (34,406) (57,990) (13,287) (40) (71,317) Net interest income (expense) 4,783 (9) — (92) (33,650) (28,968) (13,287) (49) (42,304) Total revenues 452,780 205,911 50,801 168,630 17,052 895,174 (13,287) (36,270) 845,617 Total expenses 444,522 83,600 41,727 151,962 63,325 785,136 64,669 (37,175) 812,630 Other, net — 325 273 105 8 711 8,019 (905) 7,825 Net income (loss) before taxes $ 8,258 $ 122,636 $ 9,347 $ 16,773 $ (46,265) $ 110,749 $ (69,937) $ — $ 40,812 Depreciation and amortization $ 4,255 $ 9,819 $ 1,059 $ 5,710 $ (89) $ 20,754 $ 12,200 $ — $ 32,954 Total assets $ 2,978,565 $ 789,351 $ 120,116 $ 358,684 $ 18,429,429 $ 22,676,145 $ 964,815 $ (972,867) $ 22,668,093 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 revenues 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 | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Liquidity And Capital Requirements | 22. Liquidity and Capital Requirements FAM In addition to the covenant requirements of FAM mentioned in Note 16 - 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. 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 $174.7 million as of September 30, 2022 . FAM’s actual net worth was $180.9 million as of September 30, 2022 . FAM is also subject to requirements related to material declines in quarterly and two consecutive quarter tangible net worth. As of September 30, 2022, FAM was in compliance with the two consecutive quarter covenant. In addition, FAM is required to maintain both fidelity bond and errors and omissions i nsurance 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 September 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, and capitalization levels as well as minimum insurance levels. 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 September 30, 2022, FAR was in compliance with the minimum net worth, liquidity, capitalization levels, and insurance requirements of Ginnie Mae. The minimum net worth required of FAR by Ginnie Mae was $111.7 million as of September 30, 2022. FAR’s actual net worth calculated based on Ginnie Mae guidance was $271.7 million as of September 30, 2022. The minimum liquidity required of FAR by Ginnie Mae was $22.3 million as of September 30, 2022. FAR’s actual cash and cash equivalents were $69.2 million as of September 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 September 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 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), which requires the maintenance of minimum net capital. ISG computes net capital under the alternative method. Under this method, the required minimum net capital is equal to $0.3 million. As of September 30, 2022, ISG met the minimum net capital requirement amounts and was, therefore, in compliance. 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 adopting amendments to 17 C.F.R. § 240.17a-5 because ISG's other business activities are limited to (1) proprietary trading; (2) receiving transaction-based compensation for referring securities transactions to other broker-dealers; and (3) participating in distributions of securities (other than firm commitment underwritings) in accordance with the requirements of paragraphs (a) or (b)(2) of Rule 15c2-4. 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 September 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 $4.3 million across all states as of September 30, 2022. The Company was in compliance with these requirements as of September 30, 2022. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 23. 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, a Delaware limited liability company (“BTO Urban”) 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 of 6.5% per annum and mature in January 2023. These notes had outstanding amounts of $30.0 million and $0 as of September 30, 2022 and December 31, 2021, respectively, recorded within notes payable, net, on the Condensed Consolidation Statements of Financial Condition. Additionally, there was an immaterial amount of interest paid on these notes during the Successor three and nine months ended September 30, 2022, six months ended September 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 $2.4 million and $41.1 million, respectively, for the Successor three months ended September 30, 2022 and $108.3 million and $174.6 million, respectively, for the nine months ended September 30, 2022. The Company purchased agricultural loans and had total funded draw amounts of $43.2 million and $41.2 million, respectively, for the three months ended September 30, 2021, $89.5 million and $94.6 million, respectively, during the six months ended September 30, 2021, and $83.0 million and $82.1 million, respectively, for the Predecessor three months ended March 31, 2021. The Company had promissory notes outstanding with FarmOps of $4.6 million and $4.1 million, including accrued interest, as of September 30, 2022 and December 31, 2021, respectively, which are recorded in Other assets, net, on the Condensed Consolidated Statements of Financial Condition. This promissory note has an interest rate of 10% and maturity date of December 31, 2022. 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 September 30, 2022, the parties to the nonrecourse MSR financing liability are no longer deemed related. As of December 31, 2021, the Company had an outstanding balance for this financing liability of $142.4 million. Senior Notes |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 24. Income Taxes The Company’s effective tax rate for the three and nine months ended September 30, 2022 differs from the U.S.’s statutory rate primarily due to anticipated state statutory income tax rates, the projected mix of earnings or loss attributable to the noncontrolling interest not allocable to FoA, and the impact of discrete tax items, which includes a $23.5 million charge associated with the creation of a valuation allowance against net deferred tax assets, including net operating loss carry forwards and other deferred tax assets. 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, collectively, 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. Tax positions taken in tax years that remain open under the statute of limitations will be subject to examinations by tax authorities. With few exceptions, the Company is no longer subject to state or local examinations by tax authorities for tax years ended December 31, 2017 or prior. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 25. 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 September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Basic net earnings (loss) per share: Numerator Net earnings (loss) $ (301,700) $ (533,518) $ 50,110 $ 35,286 N/A Less: Earnings (loss) attributable to noncontrolling interest (1) (217,214) (399,859) 28,726 11,637 N/A Net income (loss) attributable to holders of Class A Common Stock - basic $ (84,486) $ (133,659) $ 21,384 $ 23,649 N/A Denominator Weighted average shares of Class A Common Stock outstanding - basic 62,804,809 61,993,353 59,861,171 59,871,386 N/A Basic net earnings (loss) per share $ (1.35) $ (2.16) $ 0.36 $ 0.39 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 September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Diluted net loss per share: Numerator Net income (loss) attributable to holders of Class A Common Stock $ (84,486) $ (133,659) $ 21,384 $ 23,649 N/A Reallocation of net income (loss) assuming exchange of Class A LLC Units (1) — (307,401) 21,475 9,476 N/A Net loss attributable to holders of Class A Common Stock - diluted $ (84,486) $ (441,060) $ 42,859 $ 33,125 N/A Denominator Weighted average shares of Class A Common Stock outstanding - basic 62,804,809 61,993,353 59,861,171 59,871,386 N/A Effect of dilutive securities: Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) — 126,382,592 131,300,259 131,309,223 N/A Weighted average shares of Class A Common Stock outstanding - diluted 62,804,809 188,375,945 191,161,430 191,180,609 N/A Diluted net loss per share $ (1.35) $ (2.34) $ 0.22 $ 0.17 N/A Weighed-average anti-dilutive securities excluded from the computation of diluted earnings per share For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Restricted stock units — 951,833 — — N/A Class A LLC Units of FoA Equity that are convertible into Class A Common Stock 125,073,127 — — — N/A (1) For the three months ended September 30, 2022, the effect of the elimination of the noncontrolling interest due to the assumed exchange of all Class A LLC Units outstanding for shares of Class A Common Stock in FoA was determined to be anti-dilutive under the if-converted method. As such, the effect has been excluded from the calculation of diluted net loss per share. For the nine months ended September 30, 2022, 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 income (loss) per share for the nine months ended September, 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 income (loss) attributable to holders of the Company’s Class A Common Stock. (2) For the the three months ended September 30, 2022, the diluted weighted average shares outstanding of Class A Common Stock excludes 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 as a result of such conversion being anti-dilutive. For the nine months ended September 30, 2022, 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 as a result of such conversion being anti-dilutive. In addition to the Class A LLC Units, the Company also had RSUs outstanding during the Successor three and nine months ended September 30, 2022. For the three months ended September 30, 2022, the effects of the RSUs was determined to be anti-dilutive following both the if-converted and treasury stock methods, and as such were excluded from the calculation of diluted net loss per share. For the nine months ended September 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 | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | 26. Equity Class A Common Stock As of September 30, 2022 (Successor), there were 67,217,776 shares of Class A Common Stock outstanding, consisting of 62,959,276 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” once they become vested. The holders of the 62,959,276 issued and outstanding shares of Class A Common Stock represent the controlling interest of the Company. Pursuant to the A&R MLTIP, certain equity holders of FoA and FoA Equity are obligated to deliver a number of shares of Class A Common Stock and Class A LLC Units for restricted stock unit awards granted by the Company. During the three and nine months ended September 30, 2022, in connection with FoA’s settlement of restricted stock units into shares of Class A Common Stock and pursuant to the A&R MLTIP, these equity holders delivered 97,429 and 1,373,080 shares, respectively, of Class A Common Stock and 576,810 and 3,749,057 Class A LLC Units to the Company in satisfaction, of such settlement. During both the three and six months ended September 30, 2021, in connection with FoA's settlement of restricted stock units into shares of Class A Common Stock and pursuant to the A&R MLTIP, these equity holders delivered 3,391,635 shares of Class A Common Stock and 829,222 Class A LLC Units to the Company in satisfaction of such settlement. No settlement of restricted stock awards occurred during the Predecessor period from January 1, 2021 to March 31, 2021. This delivery of shares of Class A Common Stock and Class A LLC Units to the Company offset the gross award of RSUs settled. During the three and nine months ended September 30, 2022, the Company elected to retire 347,861 and 2,002,192 shares received offsetting RSUs withheld to fund employee payroll taxes and instead funded those taxes with operating cash. During both the three and six months ended September 30, 2021, the Company elected to retire 1,774,192 shares received offsetting RSUs withheld to fund employee taxes. No shares were retired for this purpose during the Predecessor period from January 1, 2021 to March 31, 2021. The future settlement of the Replacement RSUs and Earnout Rights outstanding as of September 30, 2022, will also be funded by the delivery of Class A Common Stock and Class A LLC Units from certain equity holders of FoA and FoA Equity pursuant to the A&R MLTIP. 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. During the three and nine months ended September 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 delivered 3,096 and 111,209 Class A LLC Units, respectively, to the Company in exchange for the same number of shares of Class A Common Stock, respectively, in satisfaction of such settlement. There were no exchanges of Class A LLC Units for shares of Class A Common Stock during the Successor period for the three and six months ended September 30, 2021 or during the Predecessor period from January 1, 2021 to March 31, 2021. Class B Common Stock As of September 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 basis, subject to customary conversion rate adjustments for stock splits, stock dividends, and reclassifications. The Continuing Unitholders' ownership of Class A LLC Units represents the noncontrolling interest of the Company, which is accounted for as permanent equity on the Condensed Consolidated Statements of Financial Condition. As of September 30, 2022, there were 187,792,877 Class A LLC Units outstanding. Of the 187,792,877 Class A LLC Units outstanding, 62,959,276 are held by the Class A Common Stock shareholders and 124,833,601 are held by the noncontrolling interest of the Company. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 27. Subsequent Events The Company has evaluated subsequent events from the date of the condensed consolidated financial statements of September 30, 2022 through November 9, 2022, the date these condensed consolidated financial statements were issued. No events or transactions were identified that would have an impact on the financial position as of September 30, 2022 or results of operations of the Company for the three and nine months ended September 30, 2022, except as follows: Mortgage Originations Segment On October 20, 2022, the Board of the Company authorized a plan to discontinue substantially all of the operations of the Company’s Mortgage Originations segment in order to strategically optimize and invest in the Company’s Reverse Originations, Commercial Originations, Lender Services, and Portfolio Management segments (such plan, the “Resource Optimization Plan”). The Company anticipates that the Resource Optimization Plan will commence in the fourth quarter of 2022 and is expected to be substantially completed by the end of 2022. For the reporting periods ended September 30, 2022 and December 31, 2021, the Mortgage Originations segment contributed $724.1 million and $2,148.5 million, respectively, of total assets and $693.1 million and $1,987.0 million , respectively, of total liabilities on Condensed Consolidated Statement of Financial Condition . These amounts include immaterial balances associated with the Company's home improvement channel, which will continue as part of the Company's operations. Results for the affected Mortgage Originations segment for the periods presented in this report were as follows (in thousands): For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Gain on sale and other income from loans held for sale, net $ 46,310 $ 239,430 $ 200,294 $ 385,680 $ 286,481 Net fair value gains on loans and related obligations — — 1,145 1,145 — Fee income 13,885 52,120 30,827 61,172 32,731 Net interest income 1,079 8,327 2,807 4,783 891 Total revenues 61,274 299,877 235,073 452,780 320,103 Total expenses 102,499 397,209 220,331 444,522 224,246 Impairment of intangibles and other assets (128,884) (128,884) — — — NET INCOME (LOSS) BEFORE INCOME TAXES $ (170,109) $ (226,216) $ 14,742 $ 8,258 $ 95,857 As part of the Plan, the Company will incur certain charges including but not limited to employee severance, retention and related benefits, contract terminations, and other charges. Amounts and timing of such charges will be assessed and recognized in accordance with accounting standards applicable to the respective charges. Additionally, the Company is reducing the total capacity of our other financing lines of credit associated with the Mortgage Origination segment. Promissory Notes On November 8, 2022, the Company amended the 2021 Promissory Notes with certain funds which are deemed affiliates of the Company, to increase the aggregate commitments for revolving borrowings thereunder from $30.0 million to $50.0 million and to extend their maturity from January 3, 2023 to July 31, 2023. The additional liquidity provides investment capital for growth initiatives and strategic opportunities currently under evaluation by the Company as well as other general corporate purposes. The 2021 Promissory Notes, which are structured with simultaneous draw and paydown terms, are secured by certain tangible assets of the Borrower and will continue to accrue interest monthly at a rate of 6.5% per annum. Refer to Note 23 - Related Party Transactions for additional information regarding the 2021 Promissory Notes. Financing Lines of Credit |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
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 nine months ended September 30, 2022, three and six months ended September 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 September 30, 2022 and its results of operations and cash flows for the Successor three and nine months ended September 30, 2022, three and six months ended September 30, 2021, and th e 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 on 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 and Recently Issued Accounting Guidance, Not Yet Adopted | Recently Adopted Accounting Guidance Standard Description Effective Date Effect on Condensed Consolidated Financial Statements 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 September 30, 2022 Standard Description Date of Planned Adoption Effect on Condensed Consolidated Financial Statements 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. 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 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. Standard Description Date of Planned Adoption Effect on Condensed Consolidated Financial Statements 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 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) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of 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): September 30, 2022 December 31, 2021 ASSETS Restricted cash $ 196,062 $ 311,652 Loans held for investment, subject to nonrecourse debt, at fair value 6,577,569 6,099,607 Other assets, net 76,177 67,593 TOTAL ASSETS $ 6,849,808 $ 6,478,852 LIABILITIES Nonrecourse debt, at fair value $ 6,788,437 $ 6,088,298 Payables and other liabilities 778 428 TOTAL VIE LIABILITIES 6,789,215 6,088,726 Retained bonds and beneficial interests eliminated in consolidation (263,055) (231,229) TOTAL CONSOLIDATED LIABILITIES $ 6,526,160 $ 5,857,497 |
Schedule Of 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): September 30, 2022 December 31, 2021 Unconsolidated securitization trusts: Total collateral balances – Unpaid Principal Balance ("UPB") $ 1,009,386 $ 1,085,340 Total certificate balances $ 1,009,386 $ 1,085,340 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 23.2 % NM 20.8 % Loss frequency NM 3.9 % NM 4.5 % Loss severity 2.4% - 9.5% 2.6 % 3.1% - 7.7% 3.3 % Discount rate NM 5.2 % NM 2.4 % Average draw rate NM 1.1 % NM 1.1 % 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 39.5 % NM 41.2 % Loss frequency 23.1% - 100.0% 50.6 % 25.0% - 100% 59.5 % Loss severity 2.4% - 9.5% 4.4 % 3.1% - 7.7% 4.3 % Discount rate NM 8.6 % NM 4.1 % 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 8.3 NM 9.0 Conditional repayment rate NM 15.1 % NM 13.3 % Loss severity 2.4% - 9.5% 4.9 % 3.1% - 7.7% 7.7 % Discount rate NM 8.2 % NM 3.7 % The following table presents the significant unobservable assumptions used in the fair value measurements of securitized non-agency reverse mortgage loans for the periods indicated: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 9.4 NM 7.5 Loan to value 0.0% - 73.0% 42.6 % 0.1% - 64.7% 43.4 % Conditional repayment rate NM 15.0 % NM 18.6 % Loss severity NM 10.0 % NM 10.0 % Home price appreciation (6.8)% - 6.3% 3.8 % (4.6)% - 14% 4.7 % Discount rate NM 7.2 % NM 3.6 % The Company utilized the following weighted average assumptions in estimating the fair value of securitized Fix & Flip mortgage loans for the periods indicated: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (SMM) NM 10.5 % NM 14.1 % Discount rate NM 10.2 % NM 5.7 % Loss rate NM 0.5 % 0.3% - 69.0% 0.6 % 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 44.6 % NM 43.2 % Loss frequency NM 54.3 % NM 59.4 % Loss severity 2.4% - 9.5% 5.9 % 3.1% - 7.7% 3.8 % Discount rate NM 8.6 % NM 4.1 % 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: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) NM 11.7 NM 9.2 Loan to value 0.1% - 64.7% 43.6 % 0.2% - 68.7% 47.8 % Conditional repayment rate NM 13.6 % NM 14.8 % Loss severity NM 10.0 % NM 10.0 % Home price appreciation (6.8)% - 6.3% 3.6 % (4.6)%-14.0% 4.4 % Discount rate NM 7.1 % NM 3.6 % The Company utilized the following weighted average assumptions in estimating the fair value of Fix & Flip loans for the periods indicated: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (SMM) NM 14.0 % NM 11.9 % Discount rate 10.2% - 14.8% 10.3 % 5.7% - 10.0% 5.9 % Loss rate NM 0.3 % NM 0.4 % The Company utilized the following assumptions in estimating the fair value of agricultural loans for the periods indicated: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Discount rate NM 9.3 % NM 4.8 % Prepayment rate (SMM) NM 17.6 % 9.0% - 100.0% 22.1 % Default rate (CDR) 0.0% - 1.0% 0.9 % 0.0% - 0.7% 0.9 % The Company utilized the following weighted average assumptions in estimating the fair value of SRL mortgage loans held for sale for the periods indicated: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (CPR) 18.1% - 25.0% 18.8 % 1.0% - 17.1% 14.2 % Discount rate NM 7.9 % NM 3.3 % Default rate (CDR) NM 1.0 % 1.0% - 57.2% 2.2 % September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Prepayment rate (CPR) 0.0% - 20.1% 14.3 % 0.0% - 14.5% 8.7 % Discount rate NM 7.9 % NM 3.9 % Default rate (CDR) NM 1.0 % 1.0% - 54.0% 3.2 % The following tables summarize certain information regarding the servicing portfolio of retained MSRs for the periods indicated: September 30, 2022 December 31, 2021 Capitalization servicing rate 1.2 % 1.1 % Capitalization servicing multiple 4.8 4.4 Weighted average servicing fee (in basis points) 26 25 The following table presents the weighted average significant unobservable inputs used in the fair value measurement of HMBS related obligations for the periods indicated: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Conditional repayment rate NM 23.2 % NM 20.8 % Discount rate NM 5.2 % NM 2.3 % September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Performing/Nonperforming HECM securitizations Weighted average remaining life (in years) 1.8 - 1.9 1.9 0.2 - 0.8 0.5 Conditional repayment rate 18.7% - 22.8% 21.0 % 30.8% - 54.4% 43.5 % Discount rate NM 8.2 % NM 2.3 % Securitized Non-Agency Reverse Weighted average remaining life (in years) 0.5 - 11.2 6.7 1.0 - 2.3 1.6 Conditional repayment rate 11.9% - 31.6% 16.9 % 18.4% - 35.9% 28.2 % Discount rate NM 7.1 % NM 2.2 % September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in months) NM 5.1 NM 4.0 Weighted average prepayment speed (SMM) NM 13.7 % NM 14.0 % Discount rate NM 7.6 % NM 3.1 % September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average remaining life (in years) 2.4 - 24.3 4.9 2.6 - 25.0 5.1 Discount rate (16.6)% - 12.2% 7.1 % 1.9% - 8.2% 2.7 % |
Summary of servicing portfolio and its activities | The Company utilized the following weighted average assumptions in estimating the fair value of MSRs: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 0.9% - 7.9% 5.8 % 0.0% - 12.8% 8.3 % Discount rate NM 11.7 % NM 8.5 % The servicing portfolio associated with capitalized servicing rights consists of the following (in thousands): September 30, 2022 December 31, 2021 Fannie Mae/Freddie Mac $ 7,207,398 $ 37,079,995 Ginnie Mae 535,952 1,109,962 Private investors 1,030,666 1,109,459 Total UPB $ 8,774,016 $ 39,299,416 Weighted average interest rate 3.55 % 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 September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning UPB $ 29,494,649 $ 39,299,416 $ 30,592,187 $ 26,675,358 $ 22,269,362 Originated MSRs 1,788,998 9,421,902 5,380,307 10,520,166 6,312,227 Purchased MSRs — — 228,470 234,007 866,806 Sold MSRs (22,037,083) (37,529,103) (320,028) (320,028) (1,090,267) Portfolio runoff (281,332) (1,611,107) (1,506,451) (2,493,506) (1,488,977) Other (191,216) (807,092) (283,370) (524,882) (193,793) Ending UPB $ 8,774,016 $ 8,774,016 $ 34,091,115 $ 34,091,115 $ 26,675,358 The activity in the MSRs asset consisted of the following (in thousands): For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ 359,006 $ 427,942 $ 290,938 $ 267,364 $ 180,684 Originations 20,241 114,903 52,252 102,301 65,964 Purchases — — 2,291 2,352 9,014 Sales (266,723) (470,018) (2,501) (2,501) (8,647) Changes in fair value due to: Changes in market inputs or assumptions used in valuation model (4,382) 56,938 13,165 (2,886) 35,109 Changes in fair value due to portfolio runoff and other (5,073) (26,696) (15,196) (25,681) (14,760) Ending balance $ 103,069 $ 103,069 $ 340,949 $ 340,949 $ 267,364 |
Schedule of Servicing Liabilities at Fair Value | The Company utilized the following weighted average assumptions in estimating the fair value of MSRs: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 0.9% - 7.9% 5.8 % 0.0% - 12.8% 8.3 % Discount rate NM 11.7 % NM 8.5 % |
Summary of estimated change in the fair value of MSRs from adverse changes in the significant assumptions | The following table summarizes the estimated change in the fair value of MSRs from adverse changes in the significant assumptions (in thousands): September 30, 2022 Weighted Average Prepayment Speed Discount Rate Impact on fair value of 10% adverse change $ (2,397) $ (4,402) Impact on fair value of 20% adverse change $ (4,666) $ (8,461) |
Weighted average assumptions in estimating the fair value of the outstanding nonrecourse MSR financing liability | The Company utilized the following weighted average assumptions in estimating the fair value of the outstanding nonrecourse MSR financing liability: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 1.3% - 6.4% 4.7 % 2.0% - 11.0% 7.7 % Discount rate 12.6% 12.6 % 8.1% - 10.1% 9.1 % Weighted average delinquency rate NM 1.7 % NM 1.3 % |
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): September 30, 2022 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 10,916,551 $ — $ — $ 10,916,551 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 6,285,773 — — 6,285,773 Fix & flip mortgage loans 455,618 — — 455,618 Loans held for investment: Reverse mortgage loans 1,126,483 — — 1,126,483 Fix & flip mortgage loans 137,367 — — 137,367 Agricultural loans 43,563 — — 43,563 Loans held for sale: Residential mortgage loans 629,877 — 600,439 29,438 SRL 147,872 — — 147,872 Portfolio 81,901 — — 81,901 MSRs 103,069 — — 103,069 Derivative assets: IRLCs and LPCs 3,678 — 4 3,674 Forward MBS and TBAs 32,254 — 32,254 — Interest rate swaps and futures contracts 53,967 53,967 — — Other assets: Investments 1,000 — — 1,000 Retained bonds 43,206 — — 43,206 Total assets $ 20,062,179 $ 53,967 $ 632,697 $ 19,375,515 Liabilities HMBS related obligations $ 10,784,841 $ — $ — $ 10,784,841 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 6,525,382 — — 6,525,382 Nonrecourse commercial loan financing liability 160,344 — — 160,344 Nonrecourse MSR financing liability 59,800 — — 59,800 Deferred purchase price liabilities: Deferred purchase price liabilities 4,852 — — 4,852 TRA obligation 4,855 — — 4,855 Derivative liabilities: IRLCs and LPCs 13,740 — — 13,740 Forward MBS and TBAs 97 — 97 — Warrant liability 1,867 1,867 — — Total liabilities $ 17,555,778 $ 1,867 $ 97 $ 17,553,814 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 Three months ended September 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 $ 11,940,851 $ 6,600,762 $ 270,122 $ 13,997 $ 359,006 $ 46,593 $ 1,000 Total gain or losses included in earnings (7,558) (265,038) (4,158) (10,323) (9,455) (2,302) — Purchases, settlements, and transfers: Purchases and additions, net 1,482,912 31,359 210,004 — 20,241 — — Sales and settlements (417,114) (376,855) (219,663) — (266,723) (1,085) — Transfers in/(out) between categories (775,127) 751,163 2,906 — — — — Ending balance $ 12,223,964 $ 6,741,391 $ 259,211 $ 3,674 $ 103,069 $ 43,206 $ 1,000 Successor Assets Nine months ended September 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 $ 11,587,382 $ 6,218,194 $ 166,750 $ 23,222 $ 427,942 $ 55,614 $ 6,000 Total gain or losses included in earnings (77,600) (836,632) (15,361) (19,548) 30,242 (8,611) (5,000) Purchases, settlements, and transfers: Purchases and additions, net 5,259,357 89,907 1,001,526 — 114,903 — — Sales and settlements (1,701,481) (1,537,044) (902,713) — (470,018) (3,797) — Transfers in/(out) between categories (2,843,694) 2,806,966 9,009 — — — — Ending balance $ 12,223,964 $ 6,741,391 $ 259,211 $ 3,674 $ 103,069 $ 43,206 $ 1,000 Successor Assets Three months ended September 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 $ 11,541,117 $ 5,424,621 $ 160,888 $ 35,483 $ 290,938 $ 15,671 $ 9,470 Total gain or losses included in earnings (10,328) 40,355 386 (5,198) (2,031) 839 (3,470) Purchases, settlements, and transfers: Purchases and additions, net 1,402,360 27,857 284,650 — 54,543 24,762 — Sales and settlements (738,913) (366,177) (250,058) (1,110) (2,501) (22) — Transfers in/(out) between categories (769,107) 812,995 (37,059) — — — — Ending balance $ 11,425,129 $ 5,939,651 $ 158,807 $ 29,175 $ 340,949 $ 41,250 $ 6,000 Successor Assets Six months ended September 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 $ 11,171,736 $ 5,291,444 $ 135,681 $ 38,574 $ 267,364 $ — $ 9,470 Total gain or losses included in earnings 143,362 120,763 2,202 (8,264) (28,567) 1,505 (3,470) Purchases, settlements, and transfers: Purchases and additions, net 2,831,336 49,898 541,088 — 104,653 39,840 — Sales and settlements (1,354,871) (888,318) (526,014) (1,135) (2,501) (95) — Transfers in/(out) between categories (1,366,434) 1,365,864 5,850 — — — — Ending balance $ 11,425,129 $ 5,939,651 $ 158,807 $ 29,175 $ 340,949 $ 41,250 $ 6,000 Predecessor Assets Three months ended 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 $ 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 $ 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 Three months ended September 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 $ (10,745,879) $ (4,852) $ (6,447,238) $ (162,464) $ (142,382) $ (13,925) Total gains or losses included in earnings 13,421 — 178,700 (2,769) 1,736 9,070 Purchases, settlements, and transfers: Purchases and additions, net (547,762) — (718,656) (24,975) (92) — Settlements 495,379 — 461,812 29,864 80,938 — Transfers in/(out) between categories — — — — — — Ending balance $ (10,784,841) $ (4,852) $ (6,525,382) $ (160,344) $ (59,800) $ (4,855) Successor Liabilities Nine months ended September 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 $ (10,422,358) $ (12,852) $ (5,857,069) $ (111,738) $ (142,435) $ (29,380) Total gain or losses included in earnings 192,098 — 400,741 (2,581) (14,639) 24,525 Purchases, settlements, and transfers: Purchases and additions, net (2,488,497) — (2,523,213) (142,790) (6,884) — Settlements 1,933,916 8,000 1,454,159 96,765 104,158 — Transfers in/(out) between categories — — — — — — Ending balance $ (10,784,841) $ (4,852) $ (6,525,382) $ (160,344) $ (59,800) $ (4,855) Successor Liabilities Three months ended September 30, 2021 HMBS related obligations Derivative liabilities Deferred purchase price liabilities Nonrecourse debt in VIE trusts Nonrecourse MSR financing liability TRA Liability Beginning balance $ (10,168,224) $ (1,111) $ (11,663) $ (5,360,603) $ (65,129) $ (32,810) Total gain or losses included in earnings 121,048 275 (237) (45,116) (712) (1,036) Purchases, settlements, and transfers: Purchases and additions, net (792,569) — (275) (464,209) (30,232) (1,296) Settlements 623,435 836 — 134,918 — — Transfers in/(out) between categories — — — — — — Ending balance $ (10,216,310) $ — $ (12,175) $ (5,735,010) $ (96,073) $ (35,142) Successor Liabilities Six months ended September 30, 2021 HMBS related obligations Derivative liabilities Deferred purchase price liabilities Nonrecourse debt in VIE trusts Nonrecourse MSR financing liability TRA Liability Beginning balance $ (9,926,132) $ (936) $ (3,214) $ (5,205,892) $ (22,051) $ — Total gains or losses included in earnings 76,397 $ 98 (1,997) (77,717) 3,411 (1,896) Purchases, settlements, and transfers: Purchases and additions, net (1,587,902) — (7,275) (1,260,585) (77,433) (33,246) Settlements 1,221,327 838 311 809,184 — — Ending balance $ (10,216,310) $ — $ (12,175) $ (5,735,010) $ (96,073) $ (35,142) Predecessor Liabilities Three months ended March 31, 2021 HMBS related obligations Derivative liabilities Deferred purchase price liability Nonrecourse debt in VIE trusts Nonrecourse MSR financing liability Beginning balance $ (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) Settlements 506,142 148 657 658,300 — Ending balance $ (9,926,132) $ (936) $ (3,214) $ (5,205,892) $ (22,051) |
Summary of the fair value and unpaid principal balance ("UPB") | Presented in the tables below are the fair value and UPB, at September 30, 2022 and December 31, 2021, of financial assets and liabilities for which the Company has elected the fair value option (in thousands): September 30, 2022 Estimated Fair Value Unpaid Principal Balance Assets at fair value under the fair value option Loans held for investment, subject to HMBS related obligations $ 10,916,551 $ 10,609,500 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 6,285,773 6,501,202 Commercial mortgage loans 455,618 457,525 Loans held for investment: Reverse mortgage loans 1,126,483 1,078,048 Commercial mortgage loans 180,930 181,001 Loans held for sale: Residential mortgage loans 629,877 648,123 Commercial mortgage loans 229,773 235,789 Liabilities at fair value under the fair value option HMBS related obligations 10,784,841 10,587,475 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 6,525,382 7,114,952 Nonrecourse MSR financing liability 59,800 59,800 Nonrecourse commercial loan financing liability 160,344 153,770 December 31, 2021 Estimated Fair Value Unpaid Principal Balance 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 (losses) on loans and related obligations (in thousands): For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 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 reverse and commercial loans $ 228,896 $ 582,350 $ 160,683 $ 334,623 $ 160,568 Change in fair value of loans (486,206) (1,463,351) (119,690) (34,707) (51,346) Net fair value gains (losses) on loans (257,310) (881,001) 40,993 299,916 109,222 Interest expense on HMBS and nonrecourse obligations (149,200) (380,446) (107,593) (221,067) (119,201) Change in fair value of derivatives 64,693 330,200 6,841 (39,637) 43,972 Change in fair value of related obligations 335,441 936,919 182,268 214,448 42,670 Net fair value gains (losses) on related obligations 250,934 886,673 81,516 (46,256) (32,559) Net fair value gains (losses) on loans and related obligations $ (6,376) $ 5,672 $ 122,509 $ 253,660 $ 76,663 |
Reverse Mortgage Portfolio Comp
Reverse Mortgage Portfolio Composition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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: September 30, 2022 December 31, 2021 Reverse mortgage loans: Reverse mortgage loans held for investment, subject to HMBS related obligations $ 10,609,500 $ 9,849,835 Reverse mortgage loans held for investment: Non-agency reverse mortgages 839,877 432,144 Loans not securitized (1) 137,477 266,723 Unpoolable loans (2) 91,286 104,551 Unpoolable tails 9,408 12,008 Total reverse mortgage loans held for investment 1,078,048 815,426 Reverse mortgage loans held for investment, subject to nonrecourse debt: Performing HECM buyouts 320,625 289,089 Nonperforming HECM buyouts 584,206 590,729 Non-agency reverse mortgages 5,596,371 4,285,661 Total reverse mortgage loans held for investment, subject to nonrecourse debt 6,501,202 5,165,479 Total owned reverse mortgage portfolio 18,188,750 15,830,740 Loans reclassified as government guaranteed receivable 67,706 48,625 Loans serviced for others 12,991 17,840 Total serviced reverse mortgage loan portfolio $ 18,269,447 $ 15,897,205 (1) Loans not securitized represent primarily newly originated loans. |
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): September 30, 2022 December 31, 2021 Fixed rate loans $ 6,364,867 $ 5,384,865 Adjustable rate loans 11,823,883 10,445,875 Total owned reverse mortgage portfolio $ 18,188,750 $ 15,830,740 |
Loans Held for Investment, Su_3
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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): September 30, 2022 December 31, 2021 Loans held for investment, subject to HMBS related obligations - UPB $ 10,609,500 $ 9,849,835 Fair value adjustments 307,051 706,219 Total loans held for investment, subject to HMBS related obligations, at fair value $ 10,916,551 $ 10,556,054 |
Loans Held for Investment, Su_4
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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): September 30, 2022 December 31, 2021 Loans held for investment, subject to nonrecourse debt - UPB: Reverse mortgage loans $ 6,501,202 $ 5,165,479 Commercial mortgage loans 457,525 388,788 Fair value adjustments (217,336) 663,927 Total loans held for investment, subject to nonrecourse debt, at fair value $ 6,741,391 $ 6,218,194 |
Schedule of mortgage loans held for investment, subject to nonrecourse debt, 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): September 30, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual status Fair value: Commercial mortgage loans $ 17,255 $ 26,081 Total fair value 17,255 26,081 Aggregate UPB: Commercial mortgage loans 18,234 26,472 Total aggregate UPB 18,234 26,472 Difference $ (979) $ (391) |
Loans Held for Investment, at_2
Loans Held for Investment, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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): September 30, 2022 December 31, 2021 Loans held for investment - UPB: Reverse mortgage loans $ 1,078,048 $ 815,426 Commercial mortgage loans 181,001 89,267 Fair value adjustments 48,364 126,635 Total loans held for investment, at fair value $ 1,307,413 $ 1,031,328 |
Loans Held for Sale, at Fair _2
Loans Held for Sale, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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): September 30, 2022 December 31, 2021 Loans held for sale - UPB: Residential mortgage and home improvement loans $ 648,123 $ 1,859,788 Commercial mortgage loans 235,789 145,463 Fair value adjustments (24,262) 47,127 Total loans held for sale, at fair value $ 859,650 $ 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 status (in thousands): September 30, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual status Fair value: Residential mortgage and home improvement loans $ 5,493 $ 3,195 Commercial mortgage loans 4,338 3,163 Total fair value 9,831 6,358 Aggregate UPB: Residential mortgage loans 6,191 3,753 Commercial mortgage loans 5,099 3,323 Total aggregate UPB 11,290 7,076 Difference $ (1,459) $ (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 months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ 1,229,594 $ 2,052,378 $ 2,057,542 $ 2,140,361 $ 2,222,811 Originations/purchases/repurchases 2,888,128 12,975,131 7,717,616 14,827,573 8,569,575 Proceeds from sales (3,268,201) (14,280,522) (7,887,849) (15,293,145) (8,878,131) Loans acquired through business combinations — — — — 35,226 Net transfers (to) from loans held for investment — — (10,460) 7,034 — Gain on loans held for sale, net 10,287 122,641 174,655 368,884 188,564 Net fair value gain (loss) on loans held for sale (158) (9,978) 158 955 2,316 Ending balance $ 859,650 $ 859,650 $ 2,051,662 $ 2,051,662 $ 2,140,361 |
Mortgage Servicing Rights, at_2
Mortgage Servicing Rights, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Summary of servicing portfolio and its activities | The Company utilized the following weighted average assumptions in estimating the fair value of MSRs: September 30, 2022 December 31, 2021 Unobservable Assumptions Range Weighted Average Range Weighted Average Weighted average prepayment speed (CPR) 0.9% - 7.9% 5.8 % 0.0% - 12.8% 8.3 % Discount rate NM 11.7 % NM 8.5 % The servicing portfolio associated with capitalized servicing rights consists of the following (in thousands): September 30, 2022 December 31, 2021 Fannie Mae/Freddie Mac $ 7,207,398 $ 37,079,995 Ginnie Mae 535,952 1,109,962 Private investors 1,030,666 1,109,459 Total UPB $ 8,774,016 $ 39,299,416 Weighted average interest rate 3.55 % 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 September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning UPB $ 29,494,649 $ 39,299,416 $ 30,592,187 $ 26,675,358 $ 22,269,362 Originated MSRs 1,788,998 9,421,902 5,380,307 10,520,166 6,312,227 Purchased MSRs — — 228,470 234,007 866,806 Sold MSRs (22,037,083) (37,529,103) (320,028) (320,028) (1,090,267) Portfolio runoff (281,332) (1,611,107) (1,506,451) (2,493,506) (1,488,977) Other (191,216) (807,092) (283,370) (524,882) (193,793) Ending UPB $ 8,774,016 $ 8,774,016 $ 34,091,115 $ 34,091,115 $ 26,675,358 The activity in the MSRs asset consisted of the following (in thousands): For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ 359,006 $ 427,942 $ 290,938 $ 267,364 $ 180,684 Originations 20,241 114,903 52,252 102,301 65,964 Purchases — — 2,291 2,352 9,014 Sales (266,723) (470,018) (2,501) (2,501) (8,647) Changes in fair value due to: Changes in market inputs or assumptions used in valuation model (4,382) 56,938 13,165 (2,886) 35,109 Changes in fair value due to portfolio runoff and other (5,073) (26,696) (15,196) (25,681) (14,760) Ending balance $ 103,069 $ 103,069 $ 340,949 $ 340,949 $ 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: September 30, 2022 December 31, 2021 Number of Loans Unpaid Principal Balance Number of Loans Unpaid Principal Balance Portfolio delinquency 30 days 1.1 % 0.9 % 0.4 % 0.3 % 60 days 0.2 % 0.2 % 0.1 % 0.0 % 90 or more days 0.6 % 0.5 % 0.1 % 0.1 % Total 1.9 % 1.6 % 0.6 % 0.4 % Foreclosure/real estate owned 0.1 % 0.1 % 0.0 % 0.0 % |
Derivatives and Risk Manageme_2
Derivatives and Risk Management Activities (Tables) | 9 Months Ended |
Sep. 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): September 30, 2022 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount IRLCs and LPCs $ 3,678 $ 344,617 $ 13,740 $ 590,007 Forward MBS and TBAs 32,254 1,162,300 97 15,071 Interest rate swaps and futures contracts 53,967 1,430,600 — — Total fair value and notional amount $ 89,899 $ 2,937,517 $ 13,837 $ 605,078 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 September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Derivative activity Successor Predecessor IRLCs and LPCs $ (24,189) $ (34,848) $ (5,119) $ (8,656) $ (49,557) Forward MBS and TBAs 54,856 265,822 (8,349) (48,638) 113,331 Interest rate swaps and futures contracts 53,123 292,666 1,254 (36,129) 43,935 |
Fixed Assets and Leasehold Im_2
Fixed Assets and Leasehold Improvements, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets and Leasehold Improvements, Net | Fixed assets and leasehold improvements, net, consisted of the following (in thousands): September 30, 2022 December 31, 2021 Estimated Useful Life Computer hardware and software $ 23,482 $ 28,726 3 - 5 years Furniture and fixtures 3,587 4,450 5 - 7 years Leasehold improvements 3,324 4,217 * Buildings and land 164 164 10 years Vehicles 37 48 10 years Total fixed assets 30,594 37,605 Less: Accumulated depreciation and amortization (10,766) (8,349) Total fixed assets and leasehold improvements, net $ 19,828 $ 29,256 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net, consisted of the following (in thousands): September 30, 2022 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 91,600 $ — $ (51,200) $ 40,400 Total non-amortizing intangibles $ 91,600 $ — $ (51,200) $ 40,400 Amortizing intangibles Broker/customer relationships 8 - 15 $ 541,100 $ (80,736) $ (70,464) $ 389,900 Trade names and other 5 - 10 10,937 (1,425) (1,512) 8,000 Total amortizing intangibles $ 552,037 $ (82,161) $ (71,976) $ 397,900 Total intangibles $ 643,637 $ (82,161) $ (123,176) $ 438,300 December 31, 2021 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 178,000 $ — $ (86,400) $ 91,600 Total non-amortizing intangibles $ 178,000 $ — $ (86,400) $ 91,600 Amortizing intangibles Broker/customer relationships 8 - 15 $ 541,100 $ (39,711) $ — $ 501,389 Trade names and other 5 - 10 10,937 (1,026) — 9,911 Total amortizing intangibles $ 552,037 $ (40,737) $ — $ 511,300 Total intangibles $ 730,037 $ (40,737) $ (86,400) $ 602,900 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net, consisted of the following (in thousands): September 30, 2022 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 91,600 $ — $ (51,200) $ 40,400 Total non-amortizing intangibles $ 91,600 $ — $ (51,200) $ 40,400 Amortizing intangibles Broker/customer relationships 8 - 15 $ 541,100 $ (80,736) $ (70,464) $ 389,900 Trade names and other 5 - 10 10,937 (1,425) (1,512) 8,000 Total amortizing intangibles $ 552,037 $ (82,161) $ (71,976) $ 397,900 Total intangibles $ 643,637 $ (82,161) $ (123,176) $ 438,300 December 31, 2021 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 178,000 $ — $ (86,400) $ 91,600 Total non-amortizing intangibles $ 178,000 $ — $ (86,400) $ 91,600 Amortizing intangibles Broker/customer relationships 8 - 15 $ 541,100 $ (39,711) $ — $ 501,389 Trade names and other 5 - 10 10,937 (1,026) — 9,911 Total amortizing intangibles $ 552,037 $ (40,737) $ — $ 511,300 Total intangibles $ 730,037 $ (40,737) $ (86,400) $ 602,900 |
Schedule of Estimated Amortization Expense | The estimated amortization expense for each of the five succeeding fiscal years and thereafter as of September 30, 2022 is as follows (in thousands): Year Ending December 31, Amount Remainder of 2022 $ 11,862 2023 47,446 2024 47,446 2025 47,446 2026 47,433 Thereafter 196,267 Total future amortization expense $ 397,900 |
HMBS Related Obligations, at _2
HMBS Related Obligations, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of HMBS related obligations, at fair value | HMBS related obligations, at fair value, consisted of the following (in thousands): September 30, 2022 December 31, 2021 Ginnie Mae loan pools - UPB $ 10,587,475 $ 9,849,835 Fair value adjustments 197,366 572,523 Total HMBS related obligations, at fair value $ 10,784,841 $ 10,422,358 Weighted average remaining life (in years) 3.9 4.6 Weighted average interest rate 4.1 % 2.5 % |
Nonrecourse Debt, at Fair Val_2
Nonrecourse Debt, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [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 September 30, 2022 December 31, 2021 Securitization of performing / nonperforming HECM loans July 2020 - August 2022 July 2030 - August 2032 2.69% - 9.32% $ 2,250,554 $ 994,563 $ 922,970 Securitization of non-agency reverse loans May 2018 - June 2022 March 2050 - November 2069 1.25% - 4.50% 7,537,674 5,851,878 4,630,203 Securitization of Fix & Flip loans April 2021 May 2025 2.10% - 5.40% $ 268,511 268,511 268,511 Total consolidated VIE nonrecourse debt UPB 7,114,952 5,821,684 Nonrecourse MSR financing liability, at fair value (1) 59,800 142,435 Nonrecourse commercial loan financing liability (2) 153,770 107,744 Fair value adjustments (582,996) 39,379 Total nonrecourse debt, at fair value $ 6,745,526 $ 6,111,242 (1) As of December 31, 2021, the financing liability is due to a related party. Refer to Note 23 - Related Party Transactions for additional information. (2) 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 September 30, 2022, estimated maturities for nonrecourse debt for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Estimated Maturities (1) Remainder of 2022 $ 309,549 2023 1,660,548 2024 1,977,994 2025 262,030 2026 3,058,601 Thereafter — Total payments on nonrecourse debt $ 7,268,722 (1) |
Other Financing Lines of Cred_2
Other Financing Lines of Credit (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [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 Capacity (1) September 30, 2022 December 31, 2021 Mortgage Lines: October 2022 -August 2023 SOFR + applicable margin First Lien Mortgages $ 2,000,000 $ 601,635 $ 1,802,348 March 2026 Ameribor + applicable margin MSRs 50,000 10,227 138,524 November 2022 - December 2022 SOFR + applicable margin Mortgage Related Assets 39,065 39,065 50,559 November 2022 SOFR + applicable margin HI Consumer Loans 50,000 11,770 5,107 Subtotal mortgage lines of credit $ 2,139,065 $ 662,697 $ 1,996,538 Reverse Lines: November 2022 - September 2023 LIBOR + applicable margin First Lien Mortgages $ 1,475,000 $ 935,434 $ 714,013 October 2022 Bond accrual rate + applicable margin Mortgage Related Assets 345,000 292,524 297,893 N/A LIBOR + applicable margin MSRs — — 78,952 May 2023 Prime + .50%; 6% floor Unsecuritized Tails 50,000 40,000 38,544 Subtotal reverse lines of credit $ 1,870,000 $ 1,267,958 $ 1,129,402 Commercial Lines: August 2023 2.50% / 3.25% Encumbered Agricultural Loans $ 75,000 $ 27,310 $ 25,127 April 2023 - November 2023 Ameribor + applicable margin First Lien Mortgages 309,000 290,534 167,159 February 2023 15% Second Lien Mortgages 45,000 45,000 24,175 January 2024 SOFR + applicable margin Mortgage Related Assets 12,500 12,500 5,041 Subtotal commercial lines of credit $ 441,500 $ 375,344 $ 221,502 Total other financing lines of credit $ 4,450,565 $ 2,305,999 $ 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 September 30, 2022. |
Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios | As of September 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 September 30, 2022 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 150,000 $ 174,785 $ 24,785 Liquidity 55,000 66,098 11,098 Leverage Ratio 13:1 8.9:1 55,118 Material Decline in Lender Adjusted Net Worth: Lender Adjusted Tangible Net Worth (Quarterly requirement) (3) $ 170,459 $ 174,785 $ 4,326 Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) (3) 174,734 174,785 51 FAR Adjusted Tangible Net Worth (2) $ 250,000 $ 250,750 $ 750 Liquidity 20,000 69,951 49,951 Leverage Ratio 7:1 6.2:1 30,765 (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 requirement) (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. |
Payables and Other Liabilities
Payables and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Other Liabilities | Payables and other liabilities consisted of the following (in thousands): September 30, 2022 December 31, 2021 Accrued liabilities $ 167,140 $ 114,931 Lease liabilities 63,587 65,518 Accrued compensation expense 55,952 129,919 GNMA reverse mortgage buyout payable 48,853 31,274 Estimate of claim losses 18,247 14,993 Derivative liabilities 13,837 26,678 Deferred purchase price liabilities 9,707 47,479 Liability for loans eligible for repurchase from GNMA 8,670 7,956 Repurchase reserves 6,293 8,685 Warrant liability 1,867 5,497 Deferred tax liability, net 1,482 18,581 Total payables and other liabilities $ 395,635 $ 471,511 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Summary of Operating Lease Information | The table below summarizes the Company's operating lease portfolio (in thousands): September 30, 2022 December 31, 2021 Right-of-use assets $ 59,295 $ 62,528 Lease liabilities 63,587 65,518 Weighted average remaining lease term (in years) 6.48 6.47 Weighted average discount rate 6.03 % 6.27 % |
Summary of Lease Cost and Other Information | The table below summarizes the Company's net operating lease cost (in thousands): For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Operating lease cost $ 5,244 $ 16,469 $ 5,894 $ 11,419 $ 5,490 Short-term lease cost 790 2,485 1,823 2,629 1,035 Total operating and short term lease cost 6,034 18,954 7,717 14,048 6,525 Variable lease cost 763 2,818 732 2,747 1,808 Sublease income (309) (1,001) (421) (855) (464) Net lease cost $ 6,488 $ 20,771 $ 8,028 $ 15,940 $ 7,869 The table below summarizes other information related to the Company’s operating leases (in thousands): For the nine months ended September 30, 2022 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 15,109 $ 10,393 $ 5,423 Leased assets obtained in exchange for new operating lease liabilities 19,312 23,783 701 |
Maturity Analysis of Operating Leases | The following table presents a maturity analysis of operating leases and a reconciliation of the undiscounted cash flows to lease liabilities as of September 30, 2022 (in thousands): Remainder of 2022 $ 4,945 2023 18,202 2024 13,525 2025 8,799 2026 6,462 2027 5,294 Thereafter 21,847 Total undiscounted lease payments 79,074 Less: amounts representing interest (15,487) Total lease liabilities $ 63,587 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 9 Months Ended |
Sep. 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 September 30, 2022 Successor 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 $ 46,310 $ — $ — $ (142) $ (6,650) $ 39,518 $ — $ (3,339) $ 36,179 Net fair value gains (losses) on loans and related obligations — 71,204 1,061 — (80,721) (8,456) — 2,080 (6,376) Fee income 13,885 936 11,416 43,743 7,147 77,127 — (6,615) 70,512 Net interest income (expense) Interest income 9,235 — — 627 2,051 11,913 109 — 12,022 Interest expense (8,156) — — (62) (26,098) (34,316) (6,920) — (41,236) Net interest income (expense) 1,079 — — 565 (24,047) (22,403) (6,811) — (29,214) Total revenues 61,274 72,140 12,477 44,166 (104,271) 85,786 (6,811) (7,874) 71,101 Total expenses 102,499 37,959 19,535 55,690 27,463 243,146 23,679 (7,904) 258,921 Impairment of intangibles and other assets (128,884) — (5,500) — (3,800) (138,184) — — (138,184) Other, net — 24 130 734 784 1,672 19,688 (30) 21,330 Net income (loss) before taxes $ (170,109) $ 34,205 $ (12,428) $ (10,790) $ (134,750) $ (293,872) $ (10,802) $ — $ (304,674) Depreciation and amortization $ 2,828 $ 9,667 $ 550 $ 3,278 $ 109 $ 16,432 $ 960 $ — $ 17,392 Total assets $ 724,099 $ 354,007 $ 16,453 $ 203,157 $ 19,871,260 $ 21,168,976 $ 1,581,538 $ (1,560,617) $ 21,189,897 For the nine months ended September 30, 2022 Successor 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 $ 239,430 $ — $ — $ (1,057) $ (463) $ 237,910 $ — $ (11,574) $ 226,336 Net fair value gains (losses) on loans and related obligations — 254,830 556 — (255,754) (368) — 6,040 5,672 Fee income 52,120 4,875 45,233 178,043 64,814 345,085 — (28,287) 316,798 Net interest income (expense) Interest income 35,097 — — 1,374 4,980 41,451 297 — 41,748 Interest expense (26,770) — — (146) (63,623) (90,539) (20,361) — (110,900) Net interest income (expense) 8,327 — — 1,228 (58,643) (49,088) (20,064) — (69,152) Total revenues 299,877 259,705 45,789 178,214 (250,046) 533,539 (20,064) (33,821) 479,654 Total expenses 397,209 125,092 67,210 190,111 97,204 876,826 90,445 (33,800) 933,471 Impairment of intangibles and other assets (128,884) — (5,500) — (3,800) (138,184) — — (138,184) Other, net — 3,276 418 3,212 848 7,754 33,459 21 41,234 Net income (loss) before taxes $ (226,216) $ 137,889 $ (26,503) $ (8,685) $ (350,202) $ (473,717) $ (77,050) $ — $ (550,767) Depreciation and amortization $ 8,407 $ 29,063 $ 1,660 $ 9,602 $ 302 $ 49,034 $ 1,832 $ — $ 50,866 Total assets $ 724,099 $ 354,007 $ 16,453 $ 203,157 $ 19,871,260 $ 21,168,976 $ 1,581,538 $ (1,560,617) $ 21,189,897 For the three months ended September 30, 2021 Successor 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 $ 200,294 $ — $ — $ — $ 13,664 $ 213,958 $ — $ (3,863) $ 210,095 Net fair value gains (losses) on loans and related obligations 1,145 109,408 13,604 — (448) 123,709 — (1,200) 122,509 Fee income 30,827 1,022 14,252 87,592 14,937 148,630 — (2,905) 145,725 Net interest income (expense) Interest income 15,363 — — 37 379 15,779 83 — 15,862 Interest expense (12,556) — — (114) (18,178) (30,848) (6,803) (40) (37,691) Net interest income (expense) 2,807 — — — — — (77) — (17,799) (15,069) (6,720) (40) (21,829) Total revenues 235,073 110,430 27,856 87,515 10,354 471,228 (6,720) (8,008) 456,500 Total expenses 220,331 41,354 21,678 78,688 30,068 392,119 28,672 (8,913) 411,878 Other, net — 221 133 22 252 628 10,205 (905) 9,928 Net income (loss) before taxes $ 14,742 $ 69,297 $ 6,311 $ 8,849 $ (19,462) $ 79,737 $ (25,187) $ — $ 54,550 Depreciation and amortization $ 2,822 $ 9,970 $ 638 $ 2,892 $ 18 $ 16,340 $ 152 $ — $ 16,492 Total assets $ 2,978,565 $ 789,351 $ 120,116 $ 358,684 $ 18,429,429 $ 22,676,145 $ 964,815 $ (972,867) $ 22,668,093 For the six months ended September 30, 2021 Successor 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 $ 385,680 $ — $ — $ — $ 21,412 $ 407,092 $ — $ (9,420) $ 397,672 Net fair value gains on loans and related obligations 1,145 203,944 24,425 — 10,776 240,290 — 13,370 253,660 Fee income 61,172 1,976 26,376 168,722 18,514 276,760 — (40,171) 236,589 Net interest income (expense) Interest income 28,200 — — 66 756 29,022 — (9) 29,013 Interest expense (23,417) (9) — (158) (34,406) (57,990) (13,287) (40) (71,317) Net interest income (expense) 4,783 (9) — (92) (33,650) (28,968) (13,287) (49) (42,304) Total revenues 452,780 205,911 50,801 168,630 17,052 895,174 (13,287) (36,270) 845,617 Total expenses 444,522 83,600 41,727 151,962 63,325 785,136 64,669 (37,175) 812,630 Other, net — 325 273 105 8 711 8,019 (905) 7,825 Net income (loss) before taxes $ 8,258 $ 122,636 $ 9,347 $ 16,773 $ (46,265) $ 110,749 $ (69,937) $ — $ 40,812 Depreciation and amortization $ 4,255 $ 9,819 $ 1,059 $ 5,710 $ (89) $ 20,754 $ 12,200 $ — $ 32,954 Total assets $ 2,978,565 $ 789,351 $ 120,116 $ 358,684 $ 18,429,429 $ 22,676,145 $ 964,815 $ (972,867) $ 22,668,093 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 revenues 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 Results for the affected Mortgage Originations segment for the periods presented in this report were as follows (in thousands): For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Gain on sale and other income from loans held for sale, net $ 46,310 $ 239,430 $ 200,294 $ 385,680 $ 286,481 Net fair value gains on loans and related obligations — — 1,145 1,145 — Fee income 13,885 52,120 30,827 61,172 32,731 Net interest income 1,079 8,327 2,807 4,783 891 Total revenues 61,274 299,877 235,073 452,780 320,103 Total expenses 102,499 397,209 220,331 444,522 224,246 Impairment of intangibles and other assets (128,884) (128,884) — — — NET INCOME (LOSS) BEFORE INCOME TAXES $ (170,109) $ (226,216) $ 14,742 $ 8,258 $ 95,857 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 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 September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Basic net earnings (loss) per share: Numerator Net earnings (loss) $ (301,700) $ (533,518) $ 50,110 $ 35,286 N/A Less: Earnings (loss) attributable to noncontrolling interest (1) (217,214) (399,859) 28,726 11,637 N/A Net income (loss) attributable to holders of Class A Common Stock - basic $ (84,486) $ (133,659) $ 21,384 $ 23,649 N/A Denominator Weighted average shares of Class A Common Stock outstanding - basic 62,804,809 61,993,353 59,861,171 59,871,386 N/A Basic net earnings (loss) per share $ (1.35) $ (2.16) $ 0.36 $ 0.39 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. |
Summary of diluted earnings per share | For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Diluted net loss per share: Numerator Net income (loss) attributable to holders of Class A Common Stock $ (84,486) $ (133,659) $ 21,384 $ 23,649 N/A Reallocation of net income (loss) assuming exchange of Class A LLC Units (1) — (307,401) 21,475 9,476 N/A Net loss attributable to holders of Class A Common Stock - diluted $ (84,486) $ (441,060) $ 42,859 $ 33,125 N/A Denominator Weighted average shares of Class A Common Stock outstanding - basic 62,804,809 61,993,353 59,861,171 59,871,386 N/A Effect of dilutive securities: Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) — 126,382,592 131,300,259 131,309,223 N/A Weighted average shares of Class A Common Stock outstanding - diluted 62,804,809 188,375,945 191,161,430 191,180,609 N/A Diluted net loss per share $ (1.35) $ (2.34) $ 0.22 $ 0.17 N/A Weighed-average anti-dilutive securities excluded from the computation of diluted earnings per share For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Restricted stock units — 951,833 — — N/A Class A LLC Units of FoA Equity that are convertible into Class A Common Stock 125,073,127 — — — N/A (1) For the three months ended September 30, 2022, the effect of the elimination of the noncontrolling interest due to the assumed exchange of all Class A LLC Units outstanding for shares of Class A Common Stock in FoA was determined to be anti-dilutive under the if-converted method. As such, the effect has been excluded from the calculation of diluted net loss per share. For the nine months ended September 30, 2022, 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 income (loss) per share for the nine months ended September, 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 income (loss) attributable to holders of the Company’s Class A Common Stock. (2) For the the three months ended September 30, 2022, the diluted weighted average shares outstanding of Class A Common Stock excludes 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 as a result of such conversion being anti-dilutive. For the nine months ended September 30, 2022, 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 as a result of such conversion being anti-dilutive. In addition to the Class A LLC Units, the Company also had RSUs outstanding during the Successor three and nine months ended September 30, 2022. For the three months ended September 30, 2022, the effects of the RSUs was determined to be anti-dilutive following both the if-converted and treasury stock methods, and as such were excluded from the calculation of diluted net loss per share. For the nine months ended September 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. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [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 September 30, 2022 Successor 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 $ 46,310 $ — $ — $ (142) $ (6,650) $ 39,518 $ — $ (3,339) $ 36,179 Net fair value gains (losses) on loans and related obligations — 71,204 1,061 — (80,721) (8,456) — 2,080 (6,376) Fee income 13,885 936 11,416 43,743 7,147 77,127 — (6,615) 70,512 Net interest income (expense) Interest income 9,235 — — 627 2,051 11,913 109 — 12,022 Interest expense (8,156) — — (62) (26,098) (34,316) (6,920) — (41,236) Net interest income (expense) 1,079 — — 565 (24,047) (22,403) (6,811) — (29,214) Total revenues 61,274 72,140 12,477 44,166 (104,271) 85,786 (6,811) (7,874) 71,101 Total expenses 102,499 37,959 19,535 55,690 27,463 243,146 23,679 (7,904) 258,921 Impairment of intangibles and other assets (128,884) — (5,500) — (3,800) (138,184) — — (138,184) Other, net — 24 130 734 784 1,672 19,688 (30) 21,330 Net income (loss) before taxes $ (170,109) $ 34,205 $ (12,428) $ (10,790) $ (134,750) $ (293,872) $ (10,802) $ — $ (304,674) Depreciation and amortization $ 2,828 $ 9,667 $ 550 $ 3,278 $ 109 $ 16,432 $ 960 $ — $ 17,392 Total assets $ 724,099 $ 354,007 $ 16,453 $ 203,157 $ 19,871,260 $ 21,168,976 $ 1,581,538 $ (1,560,617) $ 21,189,897 For the nine months ended September 30, 2022 Successor 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 $ 239,430 $ — $ — $ (1,057) $ (463) $ 237,910 $ — $ (11,574) $ 226,336 Net fair value gains (losses) on loans and related obligations — 254,830 556 — (255,754) (368) — 6,040 5,672 Fee income 52,120 4,875 45,233 178,043 64,814 345,085 — (28,287) 316,798 Net interest income (expense) Interest income 35,097 — — 1,374 4,980 41,451 297 — 41,748 Interest expense (26,770) — — (146) (63,623) (90,539) (20,361) — (110,900) Net interest income (expense) 8,327 — — 1,228 (58,643) (49,088) (20,064) — (69,152) Total revenues 299,877 259,705 45,789 178,214 (250,046) 533,539 (20,064) (33,821) 479,654 Total expenses 397,209 125,092 67,210 190,111 97,204 876,826 90,445 (33,800) 933,471 Impairment of intangibles and other assets (128,884) — (5,500) — (3,800) (138,184) — — (138,184) Other, net — 3,276 418 3,212 848 7,754 33,459 21 41,234 Net income (loss) before taxes $ (226,216) $ 137,889 $ (26,503) $ (8,685) $ (350,202) $ (473,717) $ (77,050) $ — $ (550,767) Depreciation and amortization $ 8,407 $ 29,063 $ 1,660 $ 9,602 $ 302 $ 49,034 $ 1,832 $ — $ 50,866 Total assets $ 724,099 $ 354,007 $ 16,453 $ 203,157 $ 19,871,260 $ 21,168,976 $ 1,581,538 $ (1,560,617) $ 21,189,897 For the three months ended September 30, 2021 Successor 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 $ 200,294 $ — $ — $ — $ 13,664 $ 213,958 $ — $ (3,863) $ 210,095 Net fair value gains (losses) on loans and related obligations 1,145 109,408 13,604 — (448) 123,709 — (1,200) 122,509 Fee income 30,827 1,022 14,252 87,592 14,937 148,630 — (2,905) 145,725 Net interest income (expense) Interest income 15,363 — — 37 379 15,779 83 — 15,862 Interest expense (12,556) — — (114) (18,178) (30,848) (6,803) (40) (37,691) Net interest income (expense) 2,807 — — — — — (77) — (17,799) (15,069) (6,720) (40) (21,829) Total revenues 235,073 110,430 27,856 87,515 10,354 471,228 (6,720) (8,008) 456,500 Total expenses 220,331 41,354 21,678 78,688 30,068 392,119 28,672 (8,913) 411,878 Other, net — 221 133 22 252 628 10,205 (905) 9,928 Net income (loss) before taxes $ 14,742 $ 69,297 $ 6,311 $ 8,849 $ (19,462) $ 79,737 $ (25,187) $ — $ 54,550 Depreciation and amortization $ 2,822 $ 9,970 $ 638 $ 2,892 $ 18 $ 16,340 $ 152 $ — $ 16,492 Total assets $ 2,978,565 $ 789,351 $ 120,116 $ 358,684 $ 18,429,429 $ 22,676,145 $ 964,815 $ (972,867) $ 22,668,093 For the six months ended September 30, 2021 Successor 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 $ 385,680 $ — $ — $ — $ 21,412 $ 407,092 $ — $ (9,420) $ 397,672 Net fair value gains on loans and related obligations 1,145 203,944 24,425 — 10,776 240,290 — 13,370 253,660 Fee income 61,172 1,976 26,376 168,722 18,514 276,760 — (40,171) 236,589 Net interest income (expense) Interest income 28,200 — — 66 756 29,022 — (9) 29,013 Interest expense (23,417) (9) — (158) (34,406) (57,990) (13,287) (40) (71,317) Net interest income (expense) 4,783 (9) — (92) (33,650) (28,968) (13,287) (49) (42,304) Total revenues 452,780 205,911 50,801 168,630 17,052 895,174 (13,287) (36,270) 845,617 Total expenses 444,522 83,600 41,727 151,962 63,325 785,136 64,669 (37,175) 812,630 Other, net — 325 273 105 8 711 8,019 (905) 7,825 Net income (loss) before taxes $ 8,258 $ 122,636 $ 9,347 $ 16,773 $ (46,265) $ 110,749 $ (69,937) $ — $ 40,812 Depreciation and amortization $ 4,255 $ 9,819 $ 1,059 $ 5,710 $ (89) $ 20,754 $ 12,200 $ — $ 32,954 Total assets $ 2,978,565 $ 789,351 $ 120,116 $ 358,684 $ 18,429,429 $ 22,676,145 $ 964,815 $ (972,867) $ 22,668,093 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 revenues 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 Results for the affected Mortgage Originations segment for the periods presented in this report were as follows (in thousands): For the three months ended September 30, 2022 For the nine months ended September 30, 2022 For the three months ended September 30, 2021 For the six months ended September 30, 2021 For the three months ended March 31, 2021 Successor Predecessor Gain on sale and other income from loans held for sale, net $ 46,310 $ 239,430 $ 200,294 $ 385,680 $ 286,481 Net fair value gains on loans and related obligations — — 1,145 1,145 — Fee income 13,885 52,120 30,827 61,172 32,731 Net interest income 1,079 8,327 2,807 4,783 891 Total revenues 61,274 299,877 235,073 452,780 320,103 Total expenses 102,499 397,209 220,331 444,522 224,246 Impairment of intangibles and other assets (128,884) (128,884) — — — NET INCOME (LOSS) BEFORE INCOME TAXES $ (170,109) $ (226,216) $ 14,742 $ 8,258 $ 95,857 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Percentage of realized tax benefits payable pursuant to an agreement | 85% | |
TRA obligation | $ 4.9 | $ 29.4 |
Variable Interest Entities an_3
Variable Interest Entities and Securitizations - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 31, 2022 | Feb. 28, 2022 | Sep. 30, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
F A M Mortgage Loan | |||||||
Variable Interest Entity [Line Items] | |||||||
Repayments of debt | $ 337,400 | $ 488,200 | |||||
Charge off expenses on transferred mortgage loan | $ 0 | $ 0 | $ 0 | $ 0 | |||
FAM | Financial Asset 60 Days Or Less Past Due | F A M Mortgage Loan | |||||||
Variable Interest Entity [Line Items] | |||||||
Mortgage loans transferred to unconsolidated securitization trusts amount | 700 | $ 700 | $ 400 | ||||
HAWT Two Thousand And Twenty One Inv One Securitization | FAM | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of beneficial interest in securitized trust | 5% | ||||||
Cavatica Asset Participation Trust | Agricultural loans | |||||||
Variable Interest Entity [Line Items] | |||||||
Consolidated balance of agricultural loans | 163,800 | $ 163,800 | 118,600 | ||||
Cavatica Asset Participation Trust | Nonrecourse | Agricultural loans | |||||||
Variable Interest Entity [Line Items] | |||||||
Liability transferred to the Variable interest entity Fair Value amount | $ 160,300 | $ 160,300 | $ 111,700 | ||||
Cavatica Asset Participation Trust | FACo | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of beneficial interest in securitized trust | 5% | ||||||
Principal | Loans Receivable | F A M Mortgage Loan | |||||||
Variable Interest Entity [Line Items] | |||||||
Repayments of debt | $ 363,000 | $ 506,600 |
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 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 |
ASSETS | ||||
Restricted cash | $ 210,147 | $ 322,403 | ||
Loans held for investment, at fair value | 1,307,413 | 1,031,328 | ||
TOTAL ASSETS | 21,189,897 | 21,788,946 | $ 22,668,093 | $ 20,100,419 |
LIABILITIES | ||||
Nonrecourse debt, at fair value (includes amounts due to related parties of $0 and $142,435, respectively) | 6,745,526 | 6,111,242 | ||
TOTAL LIABILITIES | 20,614,811 | 20,705,936 | ||
Variable Interest Entity, Primary Beneficiary | ||||
ASSETS | ||||
Restricted cash | 196,062 | 311,652 | ||
Loans held for investment, at fair value | 6,577,569 | 6,099,607 | ||
Other assets, net | 76,177 | 67,593 | ||
TOTAL ASSETS | 6,849,808 | 6,478,852 | ||
LIABILITIES | ||||
Nonrecourse debt, at fair value (includes amounts due to related parties of $0 and $142,435, respectively) | 6,525,382 | 5,857,069 | ||
Payables and other liabilities | 778 | 428 | ||
TOTAL LIABILITIES | 6,526,160 | 5,857,497 | ||
Variable Interest Entity, Primary Beneficiary | Asset and Liabilities of Consolidated V I E | ||||
ASSETS | ||||
Restricted cash | 196,062 | 311,652 | ||
Loans held for investment, at fair value | 6,577,569 | 6,099,607 | ||
Other assets, net | 76,177 | 67,593 | ||
TOTAL ASSETS | 6,849,808 | 6,478,852 | ||
LIABILITIES | ||||
Nonrecourse debt, at fair value (includes amounts due to related parties of $0 and $142,435, respectively) | 6,788,437 | 6,088,298 | ||
Payables and other liabilities | 778 | 428 | ||
TOTAL LIABILITIES | 6,789,215 | 6,088,726 | ||
Retained bonds and beneficial interests eliminated in consolidation | (263,055) | (231,229) | ||
TOTAL CONSOLIDATED LIABILITIES | $ 6,526,160 | $ 5,857,497 |
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 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 |
Variable Interest Entity [Line Items] | ||||
Total certificate balances | $ 21,189,897 | $ 21,788,946 | $ 22,668,093 | $ 20,100,419 |
Unconsolidated Securitization Trusts | ||||
Variable Interest Entity [Line Items] | ||||
Total certificate balances | 1,009,386 | 1,085,340 | ||
Asset Pledged as Collateral | Unconsolidated Securitization Trusts | ||||
Variable Interest Entity [Line Items] | ||||
Total certificate balances | $ 1,009,386 | $ 1,085,340 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, carrying value | $ 382,810 | $ 353,383 |
Notes payable, fair value | $ 261,200 | $ 347,000 |
Consolidated Entity, Excluding Consolidated VIE | Retained bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of beneficial interest in securitized trust | 5% | |
Mortgage Servicing Rights Financing Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cumulative percentage change in fair value of servicing rights, liabilities | 10% | |
TRA Obligation | Discount rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
TRA obligation measurement input | 0.302 | 0.135 |
Warrant liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Exercise price of warrant (in dollars per share) | $ 11.50 | |
Portfolio lending classified under mortgage loans held for sale | Five Years | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, Balloon structure period | 5 years | |
Portfolio lending classified under mortgage loans held for sale | Ten Years | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, Balloon structure period | 10 years | |
Portfolio lending classified under mortgage loans held for sale | Thirty Years | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, Balloon structure period | 30 years | |
Minimum | Fix and flip loans classified under mortgage loans held for investment subject to nonrecourse debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument term | 3 months | |
Minimum | Agricultural loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument term | 14 months | |
Minimum | Fix and flip loans classified under mortgage loans held for investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument term | 9 months | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rates utilized to value deferred purchase price, liability | 8% | 35% |
Maximum | Fix and flip loans classified under mortgage loans held for investment subject to nonrecourse debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument term | 39 months | |
Maximum | Agricultural loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument term | 24 months | |
Maximum | Fix and flip loans classified under mortgage loans held for investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument term | 31 months |
Fair Value - Weighted Average U
Fair Value - Weighted Average Unobservable Assumptions Used In The Fair Value Measurements (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Weighted Average | Conditional repayment rate | HMBS related obligations | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.208 | |
Weighted Average | Conditional repayment rate | Inventory Buyouts | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.446 | 0.432 |
Weighted Average | Conditional repayment rate | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.136 | 0.148 |
Weighted Average | Loss rate | Inventory Buyouts | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.543 | 0.594 |
Weighted Average | Loss severity | Inventory Buyouts | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.059 | 0.038 |
Weighted Average | Loss severity | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.100 | 0.100 |
Weighted Average | Discount rate | HMBS related obligations | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.052 | 0.023 |
Weighted Average | Discount rate | Inventory Buyouts | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.086 | 0.041 |
Weighted Average | Discount rate | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.071 | 0.036 |
Weighted Average | Discount rate | Commercial Mortgage Fix and Flip Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.103 | 0.059 |
Weighted Average | Discount rate | Commercial Mortgage Agricultural Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.093 | 0.048 |
Weighted Average | Discount rate | Commercial Mortgage Single Rental Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.079 | 0.033 |
Weighted Average | Discount rate | Commercial Mortgage Portfolio Lending | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.079 | 0.039 |
Weighted Average | Weighted average remaining life (in years) | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 11.7 | 9.2 |
Weighted Average | Loan to value | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.436 | 0.478 |
Weighted Average | Home price appreciation | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.036 | 0.044 |
Weighted Average | Prepayment rate (CPR) | Commercial Mortgage Fix and Flip Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.140 | 0.119 |
Weighted Average | Prepayment rate (CPR) | Commercial Mortgage Agricultural Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.176 | 0.221 |
Weighted Average | Prepayment rate (CPR) | Commercial Mortgage Single Rental Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.188 | 0.142 |
Weighted Average | Prepayment rate (CPR) | Commercial Mortgage Portfolio Lending | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.143 | 0.087 |
Weighted Average | Default rate (CDR) | Commercial Mortgage Agricultural Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.009 | 0.009 |
Weighted Average | Default rate (CDR) | Commercial Mortgage Single Rental Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.010 | 0.022 |
Weighted Average | Default rate (CDR) | Commercial Mortgage Portfolio Lending | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.010 | 0.032 |
Weighted Average | Measurement Input, Loss Rate | Commercial Mortgage Fix and Flip Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.003 | 0.004 |
Weighted Average | Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.232 | 0.208 |
Weighted Average | Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations | Loss rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.039 | 0.045 |
Weighted Average | Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.026 | 0.033 |
Weighted Average | Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations | Discount rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.052 | 0.024 |
Weighted Average | Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations | Average draw rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.011 | 0.011 |
Weighted Average | HECM Buyouts | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.395 | 0.412 |
Weighted Average | HECM Buyouts | Loss rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.506 | 0.595 |
Weighted Average | HECM Buyouts | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.044 | 0.043 |
Weighted Average | HECM Buyouts | Discount rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.086 | 0.041 |
Weighted Average | HECM Buyouts Securitized | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.151 | 0.133 |
Weighted Average | HECM Buyouts Securitized | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.049 | 0.077 |
Weighted Average | HECM Buyouts Securitized | Discount rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.082 | 0.037 |
Weighted Average | HECM Buyouts Securitized | Weighted average remaining life (in years) | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 8.3 | 9 |
Weighted Average | Non Agency Reverse Mortgage Securitized | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.150 | 0.186 |
Weighted Average | Non Agency Reverse Mortgage Securitized | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.100 | 0.100 |
Weighted Average | Non Agency Reverse Mortgage Securitized | Discount rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.072 | 0.036 |
Weighted Average | Non Agency Reverse Mortgage Securitized | Weighted average remaining life (in years) | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 9.4 | 7.5 |
Weighted Average | Non Agency Reverse Mortgage Securitized | Loan to value | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.426 | 0.434 |
Weighted Average | Non Agency Reverse Mortgage Securitized | Home price appreciation | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.038 | 0.047 |
Weighted Average | Fix Flip Securitized Commercial Mortgage Loans | Discount rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.102 | 0.057 |
Weighted Average | Fix Flip Securitized Commercial Mortgage Loans | Prepayment rate (CPR) | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.105 | 0.141 |
Weighted Average | Fix Flip Securitized Commercial Mortgage Loans | Measurement Input, Loss Rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.005 | 0.006 |
Weighted Average | HMBS related obligations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.232 | |
Weighted Average | Performing/Nonperforming HECM securitizations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.210 | 0.435 |
Weighted Average | Performing/Nonperforming HECM securitizations | Discount rate | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.082 | 0.023 |
Weighted Average | Performing/Nonperforming HECM securitizations | Weighted average remaining life (in years) | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 1.9 | 0.5 |
Weighted Average | Securitized Non-Agency Reverse | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.169 | 0.282 |
Weighted Average | Securitized Non-Agency Reverse | Discount rate | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.071 | 0.022 |
Weighted Average | Securitized Non-Agency Reverse | Weighted average remaining life (in years) | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 6.7 | 1.6 |
Weighted Average | Nonrecourse Debt, Commercial Mortgage Loans | Discount rate | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.076 | 0.031 |
Weighted Average | Nonrecourse Debt, Commercial Mortgage Loans | Weighted average remaining life (in years) | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 5.1 | 4 |
Weighted Average | Nonrecourse Debt, Commercial Mortgage Loans | Weighted average prepayment speed (CPR) | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.137 | 0.140 |
Minimum | Loss severity | Inventory Buyouts | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.024 | 0.077 |
Minimum | Discount rate | Commercial Mortgage Fix and Flip Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.148 | 0.100 |
Minimum | Loan to value | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.001 | 0.002 |
Minimum | Home price appreciation | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | (0.068) | (0.046) |
Minimum | Prepayment rate (CPR) | Commercial Mortgage Agricultural Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.090 | |
Minimum | Prepayment rate (CPR) | Commercial Mortgage Single Rental Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.181 | 0.010 |
Minimum | Prepayment rate (CPR) | Commercial Mortgage Portfolio Lending | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0 | 0 |
Minimum | Default rate (CDR) | Commercial Mortgage Agricultural Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0 | 0 |
Minimum | Default rate (CDR) | Commercial Mortgage Single Rental Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.010 | |
Minimum | Default rate (CDR) | Commercial Mortgage Portfolio Lending | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.010 | |
Minimum | Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.024 | 0.031 |
Minimum | HECM Buyouts | Loss rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.231 | 0.250 |
Minimum | HECM Buyouts | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.024 | 0.031 |
Minimum | HECM Buyouts Securitized | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.024 | 0.031 |
Minimum | Non Agency Reverse Mortgage Securitized | Loan to value | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0 | 0.001 |
Minimum | Non Agency Reverse Mortgage Securitized | Home price appreciation | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | (0.068) | (0.046) |
Minimum | Fix Flip Securitized Commercial Mortgage Loans | Measurement Input, Loss Rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.003 | |
Minimum | Performing/Nonperforming HECM securitizations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.187 | 0.308 |
Minimum | Performing/Nonperforming HECM securitizations | Weighted average remaining life (in years) | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 1.8 | 0.2 |
Minimum | Securitized Non-Agency Reverse | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.119 | 0.184 |
Minimum | Securitized Non-Agency Reverse | Weighted average remaining life (in years) | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.5 | 1 |
Maximum | Loss severity | Inventory Buyouts | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.095 | 0.031 |
Maximum | Discount rate | Commercial Mortgage Fix and Flip Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.102 | 0.057 |
Maximum | Loan to value | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.647 | 0.687 |
Maximum | Home price appreciation | Non Agency Reverse Mortgage Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.063 | 0.140 |
Maximum | Prepayment rate (CPR) | Commercial Mortgage Agricultural Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 1 | |
Maximum | Prepayment rate (CPR) | Commercial Mortgage Single Rental Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.250 | 0.171 |
Maximum | Prepayment rate (CPR) | Commercial Mortgage Portfolio Lending | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.201 | 0.145 |
Maximum | Default rate (CDR) | Commercial Mortgage Agricultural Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.010 | 0.007 |
Maximum | Default rate (CDR) | Commercial Mortgage Single Rental Loans | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.572 | |
Maximum | Default rate (CDR) | Commercial Mortgage Portfolio Lending | ||
Unobservable Assumptions | ||
Loans Held-for-sale, Measurement Input | 0.540 | |
Maximum | Reverse Mortgage Loans Held for Investment, Subject to HMBS Related Obligations | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.095 | 0.077 |
Maximum | HECM Buyouts | Loss rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 1 | 1 |
Maximum | HECM Buyouts | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.095 | 0.077 |
Maximum | HECM Buyouts Securitized | Loss severity | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.095 | 0.077 |
Maximum | Non Agency Reverse Mortgage Securitized | Loan to value | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.730 | 0.647 |
Maximum | Non Agency Reverse Mortgage Securitized | Home price appreciation | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.063 | 0.14 |
Maximum | Fix Flip Securitized Commercial Mortgage Loans | Measurement Input, Loss Rate | ||
Unobservable Assumptions | ||
Loans Held-For-Investment, Measurement Input | 0.690 | |
Maximum | Performing/Nonperforming HECM securitizations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.228 | 0.544 |
Maximum | Performing/Nonperforming HECM securitizations | Weighted average remaining life (in years) | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 1.9 | 0.8 |
Maximum | Securitized Non-Agency Reverse | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 0.316 | 0.359 |
Maximum | Securitized Non-Agency Reverse | Weighted average remaining life (in years) | ||
Unobservable Assumptions | ||
Long-Term Debt, Measurement Input | 11.2 | 2.3 |
Fair Value - Information Regard
Fair Value - Information Regarding Servicing Portfolio of Retained MSRs (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Capitalization servicing rate | 1.20% | 1.10% |
Capitalization servicing multiple | 480% | 440% |
Weighted average servicing fee (in basis points) | 2,600% | 2,500% |
Fair Value - Weighted Average A
Fair Value - Weighted Average Assumptions in Estimating Fair Value of MSRs (Details) - MSRs | Sep. 30, 2022 | Dec. 31, 2021 |
Minimum | Weighted average prepayment speed (CPR) | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing asset, measurement input | 0.009 | 0 |
Maximum | Weighted average prepayment speed (CPR) | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing asset, measurement input | 0.079 | 0.128 |
Weighted Average | Weighted average prepayment speed (CPR) | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing asset, measurement input | 0.058 | 0.083 |
Weighted Average | Discount rate | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing asset, measurement input | 0.117 | 0.085 |
Fair Value - Summary of Estimat
Fair Value - Summary of Estimated Change In Fair Value of MSRs from Adverse Changes In The Significant Assumptions (Details) - MSRs $ in Thousands | Sep. 30, 2022 USD ($) |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |
Impact on fair value of 10% adverse change, Weighted-Average Prepayment Speed | $ (2,397) |
Impact on fair value of 10% adverse change, Discount Rate | (4,402) |
Impact on fair value of 20% adverse change, Weighted-Average Prepayment Speed | (4,666) |
Impact on fair value of 20% adverse change, Discount Rate | $ (8,461) |
Fair Value - Weighted Average_2
Fair Value - Weighted Average Assumptions In Estimating The Fair Value Of The Outstanding Nonrecourse MSR Financing Liability (Details) - Non Recourse MSR Financing Liability | Sep. 30, 2022 | Dec. 31, 2021 |
Minimum | Weighted average prepayment speed (CPR) | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Servicing liability, measurement input | 0.013 | 0.020 |
Minimum | Discount rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Servicing liability, measurement input | 0.126 | 0.081 |
Maximum | Weighted average prepayment speed (CPR) | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Servicing liability, measurement input | 0.064 | 0.110 |
Maximum | Discount rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Servicing liability, measurement input | 0.101 | |
Weighted Average | Weighted average prepayment speed (CPR) | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Servicing liability, measurement input | 0.047 | 0.077 |
Weighted Average | Discount rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Servicing liability, measurement input | 0.126 | 0.091 |
Weighted Average | Weighted average delinquency rate | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Servicing liability, measurement input | 0.017 | 0.013 |
Fair Value - Weighted Average S
Fair Value - Weighted Average Significant Unobservable Assumptions Used In Fair Value Measurement Of Retained Bonds (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Minimum | Weighted average remaining life (in years) | ||
Retained Bonds at Fair Value [Line Items] | ||
Retained Bonds, Measurement Input | 2.4 | 2.6 |
Minimum | Discount rate | ||
Retained Bonds at Fair Value [Line Items] | ||
Retained Bonds, Measurement Input | (0.166) | 0.019 |
Maximum | Weighted average remaining life (in years) | ||
Retained Bonds at Fair Value [Line Items] | ||
Retained Bonds, Measurement Input | 24.3 | 25 |
Maximum | Discount rate | ||
Retained Bonds at Fair Value [Line Items] | ||
Retained Bonds, Measurement Input | 0.122 | 0.082 |
Weighted Average | Weighted average remaining life (in years) | ||
Retained Bonds at Fair Value [Line Items] | ||
Retained Bonds, Measurement Input | 4.9 | 5.1 |
Weighted Average | Discount rate | ||
Retained Bonds at Fair Value [Line Items] | ||
Retained Bonds, Measurement Input | 0.071 | 0.027 |
Fair Value - Summary Of Recogni
Fair Value - Summary Of Recognized Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Loans held for investment, at fair value | $ 1,307,413 | $ 1,031,328 |
Total loans held for sale, at fair value | 859,650 | 2,052,378 |
Derivative assets | 89,899 | 48,870 |
Liabilities | ||
TRA obligation | 4,900 | 29,400 |
Fair Value, Recurring | ||
Assets | ||
Investments | 1,000 | 6,000 |
Retained bonds | 43,206 | 55,614 |
Total assets | 20,062,179 | 20,396,380 |
Liabilities | ||
HMBS related obligations | 10,784,841 | 10,422,358 |
Nonrecourse debt in consolidated VIE trusts | 6,525,382 | 5,857,069 |
Nonrecourse commercial loan financing liability | 160,344 | 111,738 |
Nonrecourse MSR financing liability | 59,800 | 142,435 |
Deferred purchase price liabilities | 4,852 | 12,852 |
TRA obligation | 4,855 | 29,380 |
Total liabilities | 17,555,778 | 16,608,007 |
Fair Value, Recurring | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 10,916,551 | 10,556,054 |
Fair Value, Recurring | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 6,285,773 | 5,823,301 |
Fair Value, Recurring | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 455,618 | 394,893 |
Fair Value, Recurring | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 1,126,483 | 940,604 |
Fair Value, Recurring | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 137,367 | 62,933 |
Fair Value, Recurring | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 43,563 | 27,791 |
Fair Value, Recurring | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 629,877 | 1,902,952 |
Fair Value, Recurring | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 147,872 | 98,852 |
Fair Value, Recurring | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 81,901 | 50,574 |
Fair Value, Recurring | MSRs | ||
Assets | ||
MSRs | 103,069 | 427,942 |
Fair Value, Recurring | IRLCs and LPCs | ||
Assets | ||
Derivative assets | 3,678 | 24,786 |
Liabilities | ||
Derivative liabilities | 13,740 | |
Fair Value, Recurring | Forward MBS and TBAs | ||
Assets | ||
Derivative assets | 32,254 | 1,250 |
Fair Value, Recurring | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 53,967 | 22,834 |
Fair Value, Recurring | Forward MBS and TBAs | ||
Liabilities | ||
Derivative liabilities | 97 | 1,685 |
Fair Value, Recurring | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 24,993 | |
Fair Value, Recurring | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 1,867 | 5,497 |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Investments | 0 | 0 |
Retained bonds | 0 | 0 |
Total assets | 53,967 | 22,834 |
Liabilities | ||
HMBS related obligations | 0 | 0 |
Nonrecourse debt in consolidated VIE trusts | 0 | 0 |
Nonrecourse commercial loan financing liability | 0 | 0 |
Nonrecourse MSR financing liability | 0 | 0 |
Deferred purchase price liabilities | 0 | 0 |
TRA obligation | 0 | 0 |
Total liabilities | 1,867 | 30,490 |
Fair Value, Recurring | Level 1 | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | MSRs | ||
Assets | ||
MSRs | 0 | 0 |
Fair Value, Recurring | Level 1 | IRLCs and LPCs | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 1 | Forward MBS and TBAs | ||
Assets | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 53,967 | 22,834 |
Fair Value, Recurring | Level 1 | Forward MBS and TBAs | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 24,993 | |
Fair Value, Recurring | Level 1 | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 1,867 | 5,497 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Investments | 0 | 0 |
Retained bonds | 0 | 0 |
Total assets | 632,697 | 1,888,441 |
Liabilities | ||
HMBS related obligations | 0 | 0 |
Nonrecourse debt in consolidated VIE trusts | 0 | 0 |
Nonrecourse commercial loan financing liability | 0 | 0 |
Nonrecourse MSR financing liability | 0 | 0 |
Deferred purchase price liabilities | 0 | 0 |
TRA obligation | 0 | 0 |
Total liabilities | 97 | 1,685 |
Fair Value, Recurring | Level 2 | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 600,439 | 1,885,627 |
Fair Value, Recurring | Level 2 | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | MSRs | ||
Assets | ||
MSRs | 0 | 0 |
Fair Value, Recurring | Level 2 | IRLCs and LPCs | ||
Assets | ||
Derivative assets | 4 | 1,564 |
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 2 | Forward MBS and TBAs | ||
Assets | ||
Derivative assets | 32,254 | 1,250 |
Fair Value, Recurring | Level 2 | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 2 | Forward MBS and TBAs | ||
Liabilities | ||
Derivative liabilities | 97 | 1,685 |
Fair Value, Recurring | Level 2 | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 2 | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Investments | 1,000 | 6,000 |
Retained bonds | 43,206 | 55,614 |
Total assets | 19,375,515 | 18,485,105 |
Liabilities | ||
HMBS related obligations | 10,784,841 | 10,422,358 |
Nonrecourse debt in consolidated VIE trusts | 6,525,382 | 5,857,069 |
Nonrecourse commercial loan financing liability | 160,344 | 111,738 |
Nonrecourse MSR financing liability | 59,800 | 142,435 |
Deferred purchase price liabilities | 4,852 | 12,852 |
TRA obligation | 4,855 | 29,380 |
Total liabilities | 17,553,814 | 16,575,832 |
Fair Value, Recurring | Level 3 | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 10,916,551 | 10,556,054 |
Fair Value, Recurring | Level 3 | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 6,285,773 | 5,823,301 |
Fair Value, Recurring | Level 3 | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 455,618 | 394,893 |
Fair Value, Recurring | Level 3 | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 1,126,483 | 940,604 |
Fair Value, Recurring | Level 3 | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 137,367 | 62,933 |
Fair Value, Recurring | Level 3 | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 43,563 | 27,791 |
Fair Value, Recurring | Level 3 | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 29,438 | 17,325 |
Fair Value, Recurring | Level 3 | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 147,872 | 98,852 |
Fair Value, Recurring | Level 3 | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 81,901 | 50,574 |
Fair Value, Recurring | Level 3 | MSRs | ||
Assets | ||
MSRs | 103,069 | 427,942 |
Fair Value, Recurring | Level 3 | IRLCs and LPCs | ||
Assets | ||
Derivative assets | 3,674 | 23,222 |
Liabilities | ||
Derivative liabilities | 13,740 | |
Fair Value, Recurring | Level 3 | Forward MBS and TBAs | ||
Assets | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Forward MBS and TBAs | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 3 | Warrant liability | ||
Liabilities | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Loans held for investment | |||||
Assets | |||||
Beginning balance | $ 11,940,851 | $ 11,541,117 | $ 10,659,984 | $ 11,171,736 | $ 11,587,382 |
Total gain or losses included in earnings | (7,558) | (10,328) | 132,499 | 143,362 | (77,600) |
Purchases and additions, net | 1,482,912 | 1,402,360 | 1,143,109 | 2,831,336 | 5,259,357 |
Sales and settlements | (417,114) | (738,913) | (534,738) | (1,354,871) | (1,701,481) |
Transfers in/(out) between categories | (775,127) | (769,107) | (229,118) | (1,366,434) | (2,843,694) |
Ending balance | 12,223,964 | 11,425,129 | 11,171,736 | 11,425,129 | 12,223,964 |
Loans held for investment, subject to nonrecourse debt | |||||
Assets | |||||
Beginning balance | 6,600,762 | 5,424,621 | 5,396,167 | 5,291,444 | 6,218,194 |
Total gain or losses included in earnings | (265,038) | 40,355 | (37,757) | 120,763 | (836,632) |
Purchases and additions, net | 31,359 | 27,857 | 21,064 | 49,898 | 89,907 |
Sales and settlements | (376,855) | (366,177) | (360,128) | (888,318) | (1,537,044) |
Transfers in/(out) between categories | 751,163 | 812,995 | 272,098 | 1,365,864 | 2,806,966 |
Ending balance | 6,741,391 | 5,939,651 | 5,291,444 | 5,939,651 | 6,741,391 |
Loans held for sale | |||||
Assets | |||||
Beginning balance | 270,122 | 160,888 | 152,854 | 135,681 | 166,750 |
Total gain or losses included in earnings | (4,158) | 386 | 2,764 | 2,202 | (15,361) |
Purchases and additions, net | 210,004 | 284,650 | 175,551 | 541,088 | 1,001,526 |
Sales and settlements | (219,663) | (250,058) | (152,579) | (526,014) | (902,713) |
Transfers in/(out) between categories | 2,906 | (37,059) | (42,909) | 5,850 | 9,009 |
Ending balance | 259,211 | 158,807 | 135,681 | 158,807 | 259,211 |
Derivative assets | |||||
Assets | |||||
Beginning balance | 13,997 | 35,483 | 88,660 | 38,574 | 23,222 |
Total gain or losses included in earnings | (10,323) | (5,198) | (50,040) | (8,264) | (19,548) |
Purchases and additions, net | 0 | 0 | 0 | 0 | 0 |
Sales and settlements | 0 | (1,110) | (46) | (1,135) | 0 |
Transfers in/(out) between categories | 0 | 0 | 0 | 0 | 0 |
Ending balance | 3,674 | 29,175 | 38,574 | 29,175 | 3,674 |
MSRs | |||||
Assets | |||||
Beginning balance | 359,006 | 290,938 | 180,684 | 267,364 | 427,942 |
Total gain or losses included in earnings | (9,455) | (2,031) | 20,349 | (28,567) | 30,242 |
Purchases and additions, net | 20,241 | 54,543 | 74,978 | 104,653 | 114,903 |
Sales and settlements | (266,723) | (2,501) | (8,647) | (2,501) | (470,018) |
Transfers in/(out) between categories | 0 | 0 | 0 | 0 | 0 |
Ending balance | 103,069 | 340,949 | 267,364 | 340,949 | 103,069 |
Retained bonds | |||||
Assets | |||||
Beginning balance | 46,593 | 15,671 | 0 | 55,614 | |
Total gain or losses included in earnings | (2,302) | 839 | 1,505 | (8,611) | |
Purchases and additions, net | 0 | 24,762 | 39,840 | 0 | |
Sales and settlements | (1,085) | (22) | (95) | (3,797) | |
Transfers in/(out) between categories | 0 | 0 | 0 | 0 | |
Ending balance | 43,206 | 41,250 | 0 | 41,250 | 43,206 |
Investments | |||||
Assets | |||||
Beginning balance | 1,000 | 9,470 | 18,934 | 9,470 | 6,000 |
Total gain or losses included in earnings | 0 | (3,470) | (9,464) | (3,470) | (5,000) |
Purchases and additions, net | 0 | 0 | 0 | 0 | 0 |
Sales and settlements | 0 | 0 | 0 | 0 | 0 |
Transfers in/(out) between categories | 0 | 0 | 0 | 0 | 0 |
Ending balance | 1,000 | 6,000 | 9,470 | 6,000 | 1,000 |
HMBS related obligations | |||||
Liabilities | |||||
Beginning balance | (10,745,879) | (10,168,224) | (9,788,668) | (9,926,132) | (10,422,358) |
Total gains or losses included in earnings | 13,421 | 121,048 | (41,434) | 76,397 | 192,098 |
Purchases and additions, net | (547,762) | (792,569) | (602,172) | (1,587,902) | (2,488,497) |
Settlements | 495,379 | 623,435 | 506,142 | 1,221,327 | 1,933,916 |
Transfers in/(out) between categories | 0 | 0 | 0 | ||
Ending balance | (10,784,841) | (10,216,310) | (9,926,132) | (10,216,310) | (10,784,841) |
Deferred purchase price liabilities | |||||
Liabilities | |||||
Beginning balance | (4,852) | (11,663) | (3,842) | (3,214) | (12,852) |
Total gains or losses included in earnings | 0 | (237) | (29) | (1,997) | 0 |
Purchases and additions, net | 0 | (275) | 0 | (7,275) | 0 |
Settlements | 0 | 0 | 657 | 311 | 8,000 |
Transfers in/(out) between categories | 0 | 0 | 0 | ||
Ending balance | (4,852) | (12,175) | (3,214) | (12,175) | (4,852) |
Nonrecourse debt in consolidated VIE trusts | |||||
Liabilities | |||||
Beginning balance | (6,447,238) | (5,360,603) | (5,257,754) | (5,205,892) | (5,857,069) |
Total gains or losses included in earnings | 178,700 | (45,116) | (30,770) | (77,717) | 400,741 |
Purchases and additions, net | (718,656) | (464,209) | (575,668) | (1,260,585) | (2,523,213) |
Settlements | 461,812 | 134,918 | 658,300 | 809,184 | 1,454,159 |
Transfers in/(out) between categories | 0 | 0 | 0 | ||
Ending balance | (6,525,382) | (5,735,010) | (5,205,892) | (5,735,010) | (6,525,382) |
Nonrecourse commercial loan financing liability | |||||
Liabilities | |||||
Beginning balance | (162,464) | (111,738) | |||
Total gains or losses included in earnings | (2,769) | (2,581) | |||
Purchases and additions, net | (24,975) | (142,790) | |||
Settlements | 29,864 | 96,765 | |||
Transfers in/(out) between categories | 0 | 0 | |||
Ending balance | (160,344) | (160,344) | |||
Nonrecourse MSR financing liability | |||||
Liabilities | |||||
Beginning balance | (142,382) | (65,129) | (14,088) | (22,051) | (142,435) |
Total gains or losses included in earnings | 1,736 | (712) | 390 | 3,411 | (14,639) |
Purchases and additions, net | (92) | (30,232) | (8,353) | (77,433) | (6,884) |
Settlements | 80,938 | 0 | 0 | 0 | 104,158 |
Transfers in/(out) between categories | 0 | 0 | 0 | ||
Ending balance | (59,800) | (96,073) | (22,051) | (96,073) | (59,800) |
TRA Liability | |||||
Liabilities | |||||
Beginning balance | (13,925) | (32,810) | 0 | (29,380) | |
Total gains or losses included in earnings | 9,070 | (1,036) | (1,896) | 24,525 | |
Purchases and additions, net | 0 | (1,296) | (33,246) | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfers in/(out) between categories | 0 | 0 | 0 | ||
Ending balance | $ (4,855) | (35,142) | 0 | (35,142) | $ (4,855) |
Derivative liabilities | |||||
Liabilities | |||||
Beginning balance | (1,111) | (1,084) | (936) | ||
Total gains or losses included in earnings | 275 | 0 | 98 | ||
Purchases and additions, net | 0 | 0 | 0 | ||
Settlements | 836 | 148 | 838 | ||
Transfers in/(out) between categories | 0 | ||||
Ending balance | $ 0 | $ (936) | $ 0 |
Fair Value - Summary of Fair Va
Fair Value - Summary of Fair Value and Unpaid Principal Balance ("UPB") of Financial Assets and Liabilities With Elected Fair Value Option (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Nonrecourse commercial loan financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | $ 10,916,551 | $ 10,556,054 |
Nonrecourse commercial loan financing liability | Loans held for investment | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 1,126,483 | 940,604 |
Nonrecourse commercial loan financing liability | Loans held for investment | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 180,930 | 90,724 |
Nonrecourse commercial loan financing liability | Loans held for sale | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 229,773 | 149,426 |
Nonrecourse commercial loan financing liability | Loans held for sale | Residential mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 629,877 | 1,902,952 |
Nonrecourse commercial loan financing liability | HMBS related obligations | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 10,784,841 | 10,422,358 |
Nonrecourse commercial loan financing liability | Nonrecourse debt in consolidated VIE trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 6,525,382 | 5,857,069 |
Nonrecourse commercial loan financing liability | Nonrecourse MSR financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 59,800 | 142,435 |
Nonrecourse commercial loan financing liability | Nonrecourse commercial loan financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 160,344 | 111,738 |
Nonrecourse commercial loan financing liability | Reverse mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 6,285,773 | 5,823,301 |
Nonrecourse commercial loan financing liability | Commercial mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 455,618 | 394,893 |
Unpaid Principal Balance | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 10,609,500 | 9,849,835 |
Unpaid Principal Balance | Loans held for investment | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 1,078,048 | 815,426 |
Unpaid Principal Balance | Loans held for investment | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 181,001 | 89,267 |
Unpaid Principal Balance | Loans held for sale | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 235,789 | 145,463 |
Unpaid Principal Balance | Loans held for sale | Residential mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 648,123 | 1,859,788 |
Unpaid Principal Balance | HMBS related obligations | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 10,587,475 | 9,849,835 |
Unpaid Principal Balance | Nonrecourse debt in consolidated VIE trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 7,114,952 | 5,709,946 |
Unpaid Principal Balance | Nonrecourse MSR financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 59,800 | 142,435 |
Unpaid Principal Balance | Nonrecourse commercial loan financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 153,770 | 107,744 |
Unpaid Principal Balance | Reverse mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 6,501,202 | 5,165,479 |
Unpaid Principal Balance | Commercial mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | $ 457,525 | $ 388,788 |
Fair Value - Summary of Compone
Fair Value - Summary of Components of Net Fair Value Gains On Loans and Related Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |||||
Interest income on reverse and commercial loans | $ 228,896 | $ 160,683 | $ 160,568 | $ 334,623 | $ 582,350 |
Change in fair value of loans | (486,206) | (119,690) | (51,346) | (34,707) | (1,463,351) |
Net fair value gains (losses) on loans | (257,310) | 40,993 | 109,222 | 299,916 | (881,001) |
Interest expense on HMBS and nonrecourse obligations | (149,200) | (107,593) | (119,201) | (221,067) | (380,446) |
Change in fair value of derivatives | 64,693 | 6,841 | 43,972 | (39,637) | 330,200 |
Change in fair value of related obligations | 335,441 | 182,268 | 42,670 | 214,448 | 936,919 |
Net fair value gains (losses) on related obligations | 250,934 | 81,516 | (32,559) | (46,256) | 886,673 |
Net fair value gains (losses) on loans and related obligations | $ (6,376) | $ 122,509 | $ 76,663 | $ 253,660 | $ 5,672 |
Reverse Mortgage Portfolio Co_2
Reverse Mortgage Portfolio Composition - Summary of the Composition and the Remaining UPBs of the Reverse Mortgage Loan Portfolio (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ 10,609,500 | $ 9,849,835 |
Reverse mortgage loans held for investment | 1,078,048 | 815,426 |
Reverse mortgage loans held for investment, subject to nonrecourse debt | 6,501,202 | 5,165,479 |
Serviced reverse mortgage loan portfolio | $ 18,269,447 | 15,897,205 |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of unpoolable loan | 98% | |
Total owned reverse mortgage portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serviced reverse mortgage loan portfolio | $ 18,188,750 | 15,830,740 |
Loans reclassified as government guaranteed receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serviced reverse mortgage loan portfolio | 67,706 | 48,625 |
Loans serviced for others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serviced reverse mortgage loan portfolio | 12,991 | 17,840 |
Nonperforming HECM buyouts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonperforming HECM buyouts | 584,206 | 590,729 |
Performing HECM buyouts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to nonrecourse debt | 320,625 | 289,089 |
Non-agency reverse mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to nonrecourse debt | 5,596,371 | 4,285,661 |
Non-agency reverse mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | 839,877 | 432,144 |
Loans not securitized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | 137,477 | 266,723 |
Unpoolable loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | 91,286 | 104,551 |
Unpoolable tails | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | $ 9,408 | $ 12,008 |
Reverse Mortgage Portfolio Co_3
Reverse Mortgage Portfolio Composition - Summarizes the Owned Reverse Mortgage Portfolio by Product Type (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Owned reverse mortgage portfolio | $ 18,188,750 | $ 15,830,740 |
Fixed rate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Owned reverse mortgage portfolio | 6,364,867 | 5,384,865 |
Adjustable rate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Owned reverse mortgage portfolio | $ 11,823,883 | $ 10,445,875 |
Reverse Mortgage Portfolio Co_4
Reverse Mortgage Portfolio Composition - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Foreclosure proceedings in process, amount | $ 506.6 | $ 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 | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Loans held for investment, subject to HMBS related obligations - UPB | $ 10,609,500 | $ 9,849,835 |
Fair value adjustments | 307,051 | 706,219 |
Total loans held for investment, subject to HMBS related obligations, at fair value | $ 10,916,551 | $ 10,556,054 |
Loans Held for Investment, Su_6
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustments | $ (217,336) | $ 663,927 |
Total loans held for investment, subject to nonrecourse debt, at fair value | 6,741,391 | 6,218,194 |
Reverse mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, subject to nonrecourse debt - UPB | 6,501,202 | 5,165,479 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, subject to nonrecourse debt - UPB | $ 457,525 | $ 388,788 |
Loans Held for Investment, Su_7
Loans Held for Investment, 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-Accrual Status (Details) - Loans 90 days or more past due and on non-accrual status - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for investment, total fair value | $ 17,255 | $ 26,081 |
Mortgage loans held for investment, total aggregate UPB | 18,234 | 26,472 |
Difference | (979) | (391) |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for investment, total fair value | 17,255 | 26,081 |
Mortgage loans held for investment, total aggregate UPB | $ 18,234 | $ 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 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustments | $ 48,364 | $ 126,635 |
Loans held for investment, at fair value | 1,307,413 | 1,031,328 |
Reverse mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment - UPB | 1,078,048 | 815,426 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment - UPB | $ 181,001 | $ 89,267 |
Loans Held for Investment, at_4
Loans Held for Investment, at Fair Value - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale, at fair value | $ 859,650 | $ 2,052,378 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale, at fair value | 1,118,400 | 810,600 |
Commercial mortgage loans | Loans 90 days or more past due and on non-accrual status | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale, at fair value | $ 1,600 | $ 2,300 |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustments | $ (24,262) | $ 47,127 |
Total loans held for sale, at fair value | 859,650 | 2,052,378 |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale - UPB | 648,123 | 1,859,788 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale - UPB | $ 235,789 | $ 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 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, aggregate unpaid principal balance | $ 11,290 | $ 7,076 |
Difference | (1,459) | (718) |
Loans 90 days or more past due and on non-accrual status | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, at fair value | 9,831 | 6,358 |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, aggregate unpaid principal balance | 5,493 | 3,195 |
Residential mortgage loans | Loans 90 days or more past due and on non-accrual status | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, at fair value | 6,191 | 3,753 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, aggregate unpaid principal balance | 5,099 | 3,323 |
Commercial mortgage loans | Loans 90 days or more past due and on non-accrual status | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, at fair value | $ 4,338 | $ 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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Loans Held-For-Sale [Roll Forward] | |||||
Beginning balance | $ 1,229,594 | $ 2,057,542 | $ 2,222,811 | $ 2,140,361 | $ 2,052,378 |
Originations/purchases/repurchases | 2,888,128 | 7,717,616 | 8,569,575 | 14,827,573 | 12,975,131 |
Proceeds from sales | (3,268,201) | (7,887,849) | (8,878,131) | (15,293,145) | (14,280,522) |
Loans acquired through business combinations | 0 | 0 | 35,226 | 0 | 0 |
Net transfers (to) from loans held for investment | 0 | (10,460) | 0 | 7,034 | 0 |
Gain on loans held for sale, net | 10,287 | 174,655 | 188,564 | 368,884 | 122,641 |
Net fair value gain (loss) on loans held for sale | (158) | 158 | 2,316 | 955 | (9,978) |
Ending balance | $ 859,650 | $ 2,051,662 | $ 2,140,361 | $ 2,051,662 | $ 859,650 |
Loans Held for Sale, at Fair _6
Loans Held for Sale, at Fair Value - Narrative (Details) - USD ($) $ in Billions | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Loans held for sale, at fair value pledged as collateral for financing lines of credit | $ 0.8 | $ 2 |
Mortgage Servicing Rights, at_3
Mortgage Servicing Rights, at Fair Value - Summary of Servicing Portfolio and its Activities (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | $ 8,774,016 | $ 39,299,416 |
Weighted average interest rate (in percent) | 3.55% | 3.03% |
Fannie Mae/Freddie Mac | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | $ 7,207,398 | $ 37,079,995 |
Ginnie Mae | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | 535,952 | 1,109,962 |
Private investors | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | $ 1,030,666 | $ 1,109,459 |
Mortgage Servicing Rights, at_4
Mortgage Servicing Rights, at Fair Value - Rollforward Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Capitalized servicing rights | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Beginning balance | $ 29,494,649 | $ 30,592,187 | $ 22,269,362 | $ 26,675,358 | $ 39,299,416 |
Originations | 1,788,998 | 5,380,307 | 6,312,227 | 10,520,166 | 9,421,902 |
Purchases | 0 | 228,470 | 866,806 | 234,007 | 0 |
Sales | (22,037,083) | (320,028) | (1,090,267) | (320,028) | (37,529,103) |
Portfolio runoff | (281,332) | (1,506,451) | (1,488,977) | (2,493,506) | (1,611,107) |
Other | (191,216) | (283,370) | (193,793) | (524,882) | (807,092) |
Changes in fair value due to: | |||||
Changes in fair value due to portfolio runoff and other | (191,216) | (283,370) | (193,793) | (524,882) | (807,092) |
Ending UPB | 8,774,016 | 34,091,115 | 26,675,358 | 34,091,115 | 8,774,016 |
MSRs | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Beginning balance | 359,006 | 290,938 | 180,684 | 267,364 | 427,942 |
Originations | 20,241 | 52,252 | 65,964 | 102,301 | 114,903 |
Purchases | 0 | 2,291 | 9,014 | 2,352 | 0 |
Sales | (266,723) | (2,501) | (8,647) | (2,501) | |
Other | (5,073) | (15,196) | (14,760) | (25,681) | (26,696) |
Changes in fair value due to: | |||||
Changes in market inputs or assumptions used in valuation model | (4,382) | 13,165 | 35,109 | (2,886) | 56,938 |
Changes in fair value due to portfolio runoff and other | (5,073) | (15,196) | (14,760) | (25,681) | (26,696) |
Ending UPB | $ 103,069 | $ 340,949 | $ 267,364 | $ 340,949 | $ 103,069 |
Mortgage Servicing Rights, at_5
Mortgage Servicing Rights, at Fair Value - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Servicing Assets at Fair Value [Line Items] | ||||||
Contractually specified servicing fees, late fees, and other ancillary servicing revenue | $ 4.6 | $ 14.4 | $ 13 | $ 28.1 | $ 32 | |
Asset Pledged as Collateral with Right | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
MSRs | $ 59.8 | $ 59.8 | $ 142.4 |
Mortgage Servicing Rights, at_6
Mortgage Servicing Rights, at Fair Value - Summary of Information Regarding Loan Servicing Portfolio Delinquencies Percentages and Unpaid Balances (Detail) | Sep. 30, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 1.90% | 0.60% |
Unpaid Principal Balance | 1.60% | 0.40% |
Foreclosure/real estate owned | ||
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 0.10% | 0% |
Unpaid Principal Balance | 0.10% | 0% |
30 days | ||
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 1.10% | 0.40% |
Unpaid Principal Balance | 0.90% | 0.30% |
60 days | ||
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 0.20% | 0.10% |
Unpaid Principal Balance | 0.20% | 0% |
90 or more days | ||
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 0.60% | 0.10% |
Unpaid Principal Balance | 0.50% | 0.10% |
Derivative and Risk Management
Derivative and Risk Management Activities - Summary of Derivative Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative assets | ||
Fair value | $ 89,899 | $ 48,870 |
Notional amount | 2,937,517 | 15,020,538 |
Derivative liabilities | ||
Fair value | 13,837 | 26,678 |
Notional amount | 605,078 | 13,708,100 |
IRLCs and LPCs | ||
Derivative assets | ||
Fair value | 3,678 | 24,786 |
Notional amount | 344,617 | 2,095,238 |
Derivative liabilities | ||
Fair value | 13,740 | 0 |
Notional amount | 590,007 | 0 |
Forward MBS and TBAs | ||
Derivative assets | ||
Fair value | 32,254 | 1,250 |
Notional amount | 1,162,300 | 948,000 |
Derivative liabilities | ||
Fair value | 97 | 1,685 |
Notional amount | 15,071 | 1,515,000 |
Interest rate swaps and futures contracts | ||
Derivative assets | ||
Fair value | 53,967 | 22,834 |
Notional amount | 1,430,600 | 11,977,300 |
Derivative liabilities | ||
Fair value | 0 | 24,993 |
Notional amount | $ 0 | $ 12,193,100 |
Derivative and Risk Managemen_2
Derivative and Risk Management Activities - Summary of the Gains/(Losses) on Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
IRLCs and LPCs | |||||
Derivative [Line Items] | |||||
Derivative activity | $ (24,189) | $ (5,119) | $ (49,557) | $ (8,656) | $ (34,848) |
Forward MBS and TBAs | |||||
Derivative [Line Items] | |||||
Derivative activity | 54,856 | (8,349) | 113,331 | (48,638) | 265,822 |
Interest rate swaps and futures contracts | |||||
Derivative [Line Items] | |||||
Derivative activity | $ 53,123 | $ 1,254 | $ 43,935 | $ (36,129) | $ 292,666 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management Activities - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Pledged deposits | $ 75.6 | $ 23.2 |
Fixed Assets and Leasehold Im_3
Fixed Assets and Leasehold Improvements, Net - Schedule of Fixed Assets and Leasehold Improvements, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 37,605 | $ 30,594 |
Less: Accumulated depreciation and amortization | (8,349) | (10,766) |
Fixed assets and leasehold improvements, net | 29,256 | 19,828 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 28,726 | 23,482 |
Computer Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Computer Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 4,450 | 3,587 |
Furniture and Fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Furniture and Fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 7 years | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 4,217 | 3,324 |
Land and Building | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 164 | 164 |
Estimated Useful Life | 10 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 48 | $ 37 |
Estimated Useful Life | 10 years |
Fixed Assets and Leasehold Im_4
Fixed Assets and Leasehold Improvements, Net - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 3,600,000 | $ 3,000,000 | $ 2,900,000 | $ 6,000,000 | $ 9,400,000 | |
Leasehold Improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Impairment charges | $ 8,100,000 | $ 0 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets | $ 91,600 | $ 91,600 | $ 178,000 |
Impairment | (51,200) | (86,400) | |
Intangible assets, net | 40,400 | 40,400 | 91,600 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, cost | 552,037 | 552,037 | 552,037 |
Accumulated Amortization | (82,161) | (82,161) | (40,737) |
Impairment | (71,976) | ||
Net | 397,900 | 397,900 | 511,300 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Intangible assets, gross | 643,637 | 643,637 | 730,037 |
Accumulated Amortization | (82,161) | (82,161) | (40,737) |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | (123,176) | (86,400) | |
Intangible assets, net | 438,300 | 438,300 | 602,900 |
Trade name | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets | 91,600 | 91,600 | 178,000 |
Impairment | (51,200) | (86,400) | |
Intangible assets, net | 40,400 | 40,400 | 91,600 |
Broker/customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, cost | 541,100 | 541,100 | 541,100 |
Accumulated Amortization | (80,736) | (80,736) | (39,711) |
Impairment | (70,464) | ||
Net | 389,900 | 389,900 | 501,389 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Accumulated Amortization | (80,736) | $ (80,736) | (39,711) |
Broker/customer relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period (Years) | 15 years | ||
Broker/customer relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period (Years) | 8 years | ||
Trade names and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, cost | 10,937 | $ 10,937 | 10,937 |
Accumulated Amortization | (1,425) | (1,425) | (1,026) |
Impairment | (1,512) | ||
Net | 8,000 | 8,000 | 9,911 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Accumulated Amortization | $ (1,425) | $ (1,425) | $ (1,026) |
Trade names and other | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period (Years) | 10 years | 10 years | |
Trade names and other | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period (Years) | 5 years | 5 years |
Intangible Assets, Net - Narrat
Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||||
Impairment | $ 51,200 | $ 86,400 | ||||
Impairment | (71,976) | |||||
Amortization expense | $ 13,800 | $ 13,500 | $ 600 | $ 26,900 | $ 41,400 | |
Operating segments | Mortgage Originations | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | 41,900 | |||||
Impairment | (72,000) | |||||
Operating segments | Commercial Originations | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | 5,500 | |||||
Operating segments | Portfolio Management | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | 3,800 | |||||
Trade name | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | $ 51,200 | $ 86,400 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 11,862 | |
2023 | 47,446 | |
2024 | 47,446 | |
2025 | 47,446 | |
2026 | 47,433 | |
Thereafter | 196,267 | |
Intangible assets, net | $ 397,900 | $ 511,300 |
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Home Equity Conversion Mortgage Backed Security Related to Obligations At Fair Value [Line Items] | ||
Ginnie Mae loan pools - UPB | $ 10,587,475 | $ 9,849,835 |
Fair value adjustments | 197,366 | 572,523 |
Total HMBS related obligations, at fair value | $ 10,784,841 | $ 10,422,358 |
Weighted average remaining life (in years) | 3 years 10 months 24 days | 4 years 7 months 6 days |
Weighted average interest rate | 4.10% | 2.50% |
HMBS Related Obligations, at _4
HMBS Related Obligations, at Fair Value - Narrative (Details) - LoanPools | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Ginnie Mae loan pools | 1,980,000 | 1,849,000 |
Nonrecourse Debt, at Fair Val_3
Nonrecourse Debt, at Fair Value - Summary of Nonrecourse Debt at Fair Value (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Nonrecourse MSR financing liability, at fair value | $ 59,800 | $ 142,435 |
Nonrecourse commercial loan financing liability | 153,770 | 107,744 |
Fair value adjustments | (582,996) | 39,379 |
Total nonrecourse debt, at fair value | 6,745,526 | 6,111,242 |
Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 7,114,952 | 5,821,684 |
Securitization of performing / nonperforming HECM loans | ||
Debt Instrument [Line Items] | ||
Issue Date | July 2020 - August 2022 | |
Final Maturity Date | July 2030 - August 2032 | |
Original Issue Amount | $ 2,250,554 | |
Securitization of performing / nonperforming HECM loans | Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 994,563 | 922,970 |
Securitization of performing / nonperforming HECM loans | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.69% | |
Securitization of performing / nonperforming HECM loans | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 9.32% | |
Securitization of non-agency reverse loans | ||
Debt Instrument [Line Items] | ||
Issue Date | May 2018 - June 2022 | |
Final Maturity Date | March 2050 - November 2069 | |
Original Issue Amount | $ 7,537,674 | |
Securitization of non-agency reverse loans | Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 5,851,878 | 4,630,203 |
Securitization of non-agency reverse loans | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.25% | |
Securitization of non-agency reverse loans | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.50% | |
Securitization of Fix & Flip loans | ||
Debt Instrument [Line Items] | ||
Issue Date | April 2021 | |
Final Maturity Date | May 2025 | |
Original Issue Amount | $ 268,511 | |
Securitization of Fix & Flip loans | Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 268,511 | $ 268,511 |
Securitization of Fix & Flip loans | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.10% | |
Securitization of Fix & Flip loans | Maximum | ||
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 $ in Thousands | Sep. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
Remainder of 2022 | $ 309,549 |
2023 | 1,660,548 |
2024 | 1,977,994 |
2025 | 262,030 |
2026 | 3,058,601 |
Thereafter | 0 |
Total payments on nonrecourse debt | $ 7,268,722 |
Other Financing Lines of Cred_3
Other Financing Lines of Credit - Summary Of Components of Other Financing Lines of Credit (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 4,450,565 | |
Outstanding borrowings | 2,305,999 | $ 3,347,442 |
Mortgage Lines | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 2,139,065 | |
Outstanding borrowings | 662,697 | 1,996,538 |
Mortgage Lines | August 2022 - June 2023, First Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 2,000,000 | |
Outstanding borrowings | 601,635 | 1,802,348 |
Mortgage Lines | March 2026, MSRs | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 50,000 | |
Outstanding borrowings | 10,227 | 138,524 |
Mortgage Lines | August 2022 - September 2022, Mortgage Related Assets | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 39,065 | |
Outstanding borrowings | 39,065 | 50,559 |
Mortgage Lines | November 2022, HI Customer Loans | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 50,000 | |
Outstanding borrowings | 11,770 | 5,107 |
Reverse Lines | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 1,870,000 | |
Outstanding borrowings | 1,267,958 | 1,129,402 |
Reverse Lines | August 2022 - June 2023, First Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 1,475,000 | |
Outstanding borrowings | 935,434 | 714,013 |
Reverse Lines | July 2022 - September 2022, Mortgage Related Assets | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 345,000 | |
Outstanding borrowings | 292,524 | 297,893 |
Reverse Lines | September 2022, MSRs | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 0 | |
Outstanding borrowings | 0 | 78,952 |
Reverse Lines | May 2023, Unsecuritized Tails | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 50,000 | |
Outstanding borrowings | $ 40,000 | 38,544 |
Reverse Lines | May 2023, Unsecuritized Tails | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Reverse Lines | May 2023, Unsecuritized Tails | Prime Rate, Floor | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 6% | |
Commercial Lines | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 441,500 | |
Outstanding borrowings | 375,344 | 221,502 |
Commercial Lines | August 2022, Encumbered Agricultural Loans | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 75,000 | |
Outstanding borrowings | $ 27,310 | $ 25,127 |
Commercial Lines | August 2022, Encumbered Agricultural Loans | Minimum | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 2.50% | 2.50% |
Commercial Lines | August 2022, Encumbered Agricultural Loans | Maximum | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 3.25% | 3.25% |
Commercial Lines | April 2023 - January 2024, First Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 309,000 | |
Outstanding borrowings | 290,534 | $ 167,159 |
Commercial Lines | August 2022, Second Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 45,000 | |
Outstanding borrowings | $ 45,000 | $ 24,175 |
Interest Rate | 15% | 15% |
Commercial Lines | Mortgage Related Assets | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 12,500 | |
Outstanding borrowings | $ 12,500 | $ 5,041 |
Other Financing Lines of Cred_4
Other Financing Lines of Credit - Narrative (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Line of credit | ||
Line of Credit Facility [Line Items] | ||
Financing line of credit outstanding, weighted average interest rate | 5.66% | 2.75% |
Other Financing Lines of Cred_5
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) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
FAM | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 174,785 | $ 180,032 |
Liquidity | $ 66,098 | $ 43,734 |
Debt instrument, covenant, leverage ratio | 8.9 | 13.9 |
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ 174,785 | $ 214,979 |
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 174,785 | 214,979 |
FACo | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 87,350 | |
Liquidity | $ 32,728 | |
Debt instrument, covenant, leverage ratio | 2.8 | |
FAR | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 250,750 | $ 527,443 |
Liquidity | $ 69,951 | $ 23,845 |
Debt instrument, covenant, leverage ratio | 6.2 | 2.9 |
Requirement | FAM | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 150,000 | $ 150,000 |
Liquidity | $ 55,000 | $ 40,000 |
Debt instrument, covenant, leverage ratio | 13 | 15 |
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ 170,459 | $ 150,539 |
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 174,734 | 114,830 |
Requirement | FACo | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 85,000 | |
Liquidity | $ 20,000 | |
Debt instrument, covenant, leverage ratio | 6 | |
Requirement | FAR | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 250,000 | $ 417,826 |
Liquidity | $ 20,000 | $ 20,000 |
Debt instrument, covenant, leverage ratio | 7 | 6 |
Maximum Allowable Distribution | FAM | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 24,785 | $ 30,032 |
Liquidity | $ 11,098 | $ 3,734 |
Debt instrument, covenant, leverage ratio | 55,118,000 | 12,154,000 |
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ 4,326 | $ 64,440 |
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 51 | 100,149 |
Maximum Allowable Distribution | FACo | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 2,350 | |
Liquidity | $ 12,728 | |
Debt instrument, covenant, leverage ratio | 46,895,000 | |
Maximum Allowable Distribution | FAR | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | 750 | $ 109,617 |
Liquidity | $ 49,951 | $ 3,845 |
Debt instrument, covenant, leverage ratio | 30,765 | 264,134,000 |
Payables and Other Liabilitie_2
Payables and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued liabilities | $ 167,140 | $ 114,931 |
Lease liabilities | 63,587 | 65,518 |
Accrued compensation expense | 55,952 | 129,919 |
GNMA reverse mortgage buyout payable | 48,853 | 31,274 |
Estimate of claim losses | 18,247 | 14,993 |
Derivative liabilities | 13,837 | 26,678 |
Deferred purchase price liabilities | 9,707 | 47,479 |
Liability for loans eligible for repurchase from GNMA | 8,670 | 7,956 |
Repurchase reserves | 6,293 | 8,685 |
Warrant liability | 1,867 | 5,497 |
Deferred tax liability, net | 1,482 | 18,581 |
Total payables and other liabilities | $ 395,635 | $ 471,511 |
Leases - Operating Lease inform
Leases - Operating Lease information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right-of-use assets | $ 59,295 | $ 62,528 |
Lease liabilities | $ 63,587 | $ 65,518 |
Weighted-average remaining lease term (in years) | 6 years 5 months 23 days | 6 years 5 months 19 days |
Weighted average discount rate | 6.03% | 6.27% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases [Abstract] | |
Impairment charge | $ 6.9 |
Leases - Lease Cost and Other i
Leases - Lease Cost and Other information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Leases [Abstract] | |||||
Operating lease cost | $ 5,244 | $ 5,894 | $ 5,490 | $ 11,419 | $ 16,469 |
Short-term lease cost | 790 | 1,823 | 1,035 | 2,629 | 2,485 |
Total operating and short term lease cost | 6,034 | 7,717 | 6,525 | 14,048 | 18,954 |
Variable lease cost | 763 | 732 | 1,808 | 2,747 | 2,818 |
Sublease income | (309) | (421) | (464) | (855) | (1,001) |
Net lease cost | $ 6,488 | $ 8,028 | 7,869 | 15,940 | 20,771 |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | 5,423 | 10,393 | 15,109 | ||
Leased assets obtained in exchange for new operating lease liabilities | $ 701 | $ 23,783 | $ 19,312 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
Remainder of 2022 | $ 4,945 | |
2023 | 18,202 | |
2024 | 13,525 | |
2025 | 8,799 | |
2026 | 6,462 | |
2027 | 5,294 | |
Thereafter | 21,847 | |
Total undiscounted lease payments | 79,074 | |
Less: amounts representing interest | (15,487) | |
Lease liabilities | $ 63,587 | $ 65,518 |
Litigation (Details)
Litigation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Legal expenses | $ 1.2 | $ 3.9 | $ 4.2 | $ 7.5 | $ 3.8 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Equal or greater than | ||
Commitments and Contingencies [Line Items] | ||
Outstanding principal balance of HECM is equal to or greater than MCA (in percent) | 98% | |
Outstanding principal balance is equal to or greater than MCA (in percent) | 98% | |
Loan purchase commitments | ||
Commitments and Contingencies [Line Items] | ||
Long-term purchase commitment | $ 115,300,000 | $ 178,600,000 |
Loan origination commitments | ||
Commitments and Contingencies [Line Items] | ||
Long-term purchase commitment | 42,000,000 | 0 |
HECM loans | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | 3,100,000,000 | 2,600,000,000 |
Fix and flip loans | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | 133,000,000 | 94,900,000 |
Agricultural loans | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | $ 19,700,000 | $ 78,500,000 |
Business Segment Reporting (Det
Business Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||||
Gain on sale and other income from loans held for sale, net | $ 36,179 | $ 210,095 | $ 291,334 | $ 397,672 | $ 226,336 | |
Net fair value gains (losses) on loans and related obligations | (6,376) | 122,509 | 76,663 | 253,660 | 5,672 | |
Fee income | 70,512 | 145,725 | 161,371 | 236,589 | 316,798 | |
Interest income | 12,022 | 15,862 | 12,661 | 29,013 | 41,748 | |
Interest expense | (41,236) | (37,691) | (34,366) | (71,317) | (110,900) | |
Net interest income (expense) | (29,214) | (21,829) | (21,705) | (42,304) | (69,152) | |
TOTAL REVENUES | 71,101 | 456,500 | 507,663 | 845,617 | 479,654 | |
Total expenses | 258,921 | 411,878 | 373,314 | 812,630 | 933,471 | |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | (138,184) | 0 | 0 | 0 | (138,184) | |
Other, net | 21,330 | 9,928 | (8,892) | 7,825 | 41,234 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (304,674) | 54,550 | 125,457 | 40,812 | (550,767) | |
Depreciation and amortization | 17,392 | 16,492 | 3,484 | 32,954 | 50,866 | |
TOTAL ASSETS | 21,189,897 | 22,668,093 | 20,100,419 | 22,668,093 | 21,189,897 | $ 21,788,946 |
Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on sale and other income from loans held for sale, net | 39,518 | 213,958 | 291,546 | 407,092 | 237,910 | |
Net fair value gains (losses) on loans and related obligations | (8,456) | 123,709 | 76,630 | 240,290 | (368) | |
Fee income | 77,127 | 148,630 | 154,759 | 276,760 | 345,085 | |
Interest income | 11,913 | 15,779 | 12,649 | 29,022 | 41,451 | |
Interest expense | (34,316) | (30,848) | (26,610) | (57,990) | (90,539) | |
Net interest income (expense) | (22,403) | (15,069) | (13,961) | (28,968) | (49,088) | |
TOTAL REVENUES | 85,786 | 471,228 | 508,974 | 895,174 | 533,539 | |
Total expenses | 243,146 | 392,119 | 348,706 | 785,136 | 876,826 | |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | (138,184) | (138,184) | ||||
Other, net | 1,672 | 628 | 1,080 | 711 | 7,754 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (293,872) | 79,737 | 161,348 | 110,749 | (473,717) | |
Depreciation and amortization | 16,432 | 16,340 | 3,113 | 20,754 | 49,034 | |
TOTAL ASSETS | 21,168,976 | 22,676,145 | 20,047,170 | 22,676,145 | 21,168,976 | |
Operating segments | Mortgage Originations | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on sale and other income from loans held for sale, net | 46,310 | 200,294 | 286,481 | 385,680 | 239,430 | |
Net fair value gains (losses) on loans and related obligations | 0 | 1,145 | 0 | 1,145 | 0 | |
Fee income | 13,885 | 30,827 | 32,731 | 61,172 | 52,120 | |
Interest income | 9,235 | 15,363 | 12,483 | 28,200 | 35,097 | |
Interest expense | (8,156) | (12,556) | (11,592) | (23,417) | (26,770) | |
Net interest income (expense) | 1,079 | 2,807 | 891 | 4,783 | 8,327 | |
TOTAL REVENUES | 61,274 | 235,073 | 320,103 | 452,780 | 299,877 | |
Total expenses | 102,499 | 220,331 | 224,246 | 444,522 | 397,209 | |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | (128,884) | 0 | 0 | 0 | (128,884) | |
Other, net | 0 | 0 | 0 | 0 | 0 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (170,109) | 14,742 | 95,857 | 8,258 | (226,216) | |
Depreciation and amortization | 2,828 | 2,822 | 1,423 | 4,255 | 8,407 | |
TOTAL ASSETS | 724,099 | 2,978,565 | 2,425,529 | 2,978,565 | 724,099 | $ 2,148,500 |
Operating segments | Reverse Originations | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on sale and other income from loans held for sale, net | 0 | 0 | 0 | 0 | 0 | |
Net fair value gains (losses) on loans and related obligations | 71,204 | 109,408 | 68,449 | 203,944 | 254,830 | |
Fee income | 936 | 1,022 | 524 | 1,976 | 4,875 | |
Interest income | 0 | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | (9) | 0 | |
Net interest income (expense) | 0 | 0 | 0 | (9) | 0 | |
TOTAL REVENUES | 72,140 | 110,430 | 68,973 | 205,911 | 259,705 | |
Total expenses | 37,959 | 41,354 | 23,693 | 83,600 | 125,092 | |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | 0 | 0 | ||||
Other, net | 24 | 221 | 34 | 325 | 3,276 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | 34,205 | 69,297 | 45,314 | 122,636 | 137,889 | |
Depreciation and amortization | 9,667 | 9,970 | 151 | 9,819 | 29,063 | |
TOTAL ASSETS | 354,007 | 789,351 | 35,861 | 789,351 | 354,007 | |
Operating segments | Commercial Originations | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on sale and other income from loans held for sale, net | 0 | 0 | 0 | 0 | 0 | |
Net fair value gains (losses) on loans and related obligations | 1,061 | 13,604 | 5,431 | 24,425 | 556 | |
Fee income | 11,416 | 14,252 | 8,930 | 26,376 | 45,233 | |
Interest income | 0 | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | 0 | |
Net interest income (expense) | 0 | 0 | 0 | 0 | 0 | |
TOTAL REVENUES | 12,477 | 27,856 | 14,361 | 50,801 | 45,789 | |
Total expenses | 19,535 | 21,678 | 13,391 | 41,727 | 67,210 | |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | (5,500) | (5,500) | ||||
Other, net | 130 | 133 | 149 | 273 | 418 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (12,428) | 6,311 | 1,119 | 9,347 | (26,503) | |
Depreciation and amortization | 550 | 638 | 125 | 1,059 | 1,660 | |
TOTAL ASSETS | 16,453 | 120,116 | 82,375 | 120,116 | 16,453 | |
Operating segments | Lender Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on sale and other income from loans held for sale, net | (142) | 0 | 0 | 0 | (1,057) | |
Net fair value gains (losses) on loans and related obligations | 0 | 0 | 0 | 0 | 0 | |
Fee income | 43,743 | 87,592 | 76,383 | 168,722 | 178,043 | |
Interest income | 627 | 37 | 28 | 66 | 1,374 | |
Interest expense | (62) | (114) | (64) | (158) | (146) | |
Net interest income (expense) | 565 | (77) | (36) | (92) | 1,228 | |
TOTAL REVENUES | 44,166 | 87,515 | 76,347 | 168,630 | 178,214 | |
Total expenses | 55,690 | 78,688 | 62,970 | 151,962 | 190,111 | |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | 0 | 0 | ||||
Other, net | 734 | 22 | 2 | 105 | 3,212 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (10,790) | 8,849 | 13,379 | 16,773 | (8,685) | |
Depreciation and amortization | 3,278 | 2,892 | 1,268 | 5,710 | 9,602 | |
TOTAL ASSETS | 203,157 | 358,684 | 125,317 | 358,684 | 203,157 | |
Operating segments | Portfolio Management | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on sale and other income from loans held for sale, net | (6,650) | 13,664 | 5,065 | 21,412 | (463) | |
Net fair value gains (losses) on loans and related obligations | (80,721) | (448) | 2,750 | 10,776 | (255,754) | |
Fee income | 7,147 | 14,937 | 36,191 | 18,514 | 64,814 | |
Interest income | 2,051 | 379 | 138 | 756 | 4,980 | |
Interest expense | (26,098) | (18,178) | (14,954) | (34,406) | (63,623) | |
Net interest income (expense) | (24,047) | (17,799) | (14,816) | (33,650) | (58,643) | |
TOTAL REVENUES | (104,271) | 10,354 | 29,190 | 17,052 | (250,046) | |
Total expenses | 27,463 | 30,068 | 24,406 | 63,325 | 97,204 | |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | (3,800) | (3,800) | ||||
Other, net | 784 | 252 | 895 | 8 | 848 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (134,750) | (19,462) | 5,679 | (46,265) | (350,202) | |
Depreciation and amortization | 109 | 18 | 146 | (89) | 302 | |
TOTAL ASSETS | 19,871,260 | 18,429,429 | 17,378,088 | 18,429,429 | 19,871,260 | |
Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on sale and other income from loans held for sale, net | 0 | 0 | 0 | 0 | 0 | |
Net fair value gains (losses) on loans and related obligations | 0 | 0 | 0 | 0 | 0 | |
Fee income | 0 | 0 | 0 | 0 | 0 | |
Interest income | 109 | 83 | 12 | 0 | 297 | |
Interest expense | (6,920) | (6,803) | (7,756) | (13,287) | (20,361) | |
Net interest income (expense) | (6,811) | (6,720) | (7,744) | (13,287) | (20,064) | |
TOTAL REVENUES | (6,811) | (6,720) | (7,744) | (13,287) | (20,064) | |
Total expenses | 23,679 | 28,672 | 18,683 | 64,669 | 90,445 | |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | 0 | 0 | ||||
Other, net | 19,688 | 10,205 | (9,464) | 8,019 | 33,459 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (10,802) | (25,187) | (35,891) | (69,937) | (77,050) | |
Depreciation and amortization | 960 | 152 | 371 | 12,200 | 1,832 | |
TOTAL ASSETS | 1,581,538 | 964,815 | 379,562 | 964,815 | 1,581,538 | |
Elim | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on sale and other income from loans held for sale, net | (3,339) | (3,863) | (212) | (9,420) | (11,574) | |
Net fair value gains (losses) on loans and related obligations | 2,080 | (1,200) | 33 | 13,370 | 6,040 | |
Fee income | (6,615) | (2,905) | 6,612 | (40,171) | (28,287) | |
Interest income | 0 | 0 | 0 | (9) | 0 | |
Interest expense | 0 | (40) | 0 | (40) | 0 | |
Net interest income (expense) | 0 | (40) | 0 | (49) | 0 | |
TOTAL REVENUES | (7,874) | (8,008) | 6,433 | (36,270) | (33,821) | |
Total expenses | (7,904) | (8,913) | 5,925 | (37,175) | (33,800) | |
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | 0 | 0 | ||||
Other, net | (30) | (905) | (508) | (905) | 21 | |
NET INCOME (LOSS) BEFORE INCOME TAXES | 0 | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | 0 | |
TOTAL ASSETS | $ (1,560,617) | $ (972,867) | $ (326,313) | $ (972,867) | $ (1,560,617) |
Liquidity and Capital Require_2
Liquidity and Capital Requirements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Liquidity And Capital Requirements [Line Items] | ||
Cash and cash equivalents | $ 169,072 | $ 141,238 |
Minimum net capital requirement | 300 | |
Policyholders' surplus | 8,000 | |
Total requirement | 4,300 | |
MISSOURI | ||
Liquidity And Capital Requirements [Line Items] | ||
Minimum capital and surplus | 1,600 | |
ALABAMA | ||
Liquidity And Capital Requirements [Line Items] | ||
Minimum capital and surplus | 200 | |
FAM | ||
Liquidity And Capital Requirements [Line Items] | ||
Minimum adjusted net worth balance of capital requirements | 174,700 | |
Adjusted balance of capital requirements | 174,785 | $ 180,032 |
Net worth | $ 5,000 | |
FAR commitment with addition to net worth (in percent) | 1% | |
Liquidity (in percent) | 20% | |
Net worth to total assets (in percent) | 6% | |
Minimum tangible net worth required | $ 111,700 | |
Tangible capital, actual | 271,700 | |
Cash | 22,300 | |
Cash and cash equivalents | 69,200 | |
FAM | MISSOURI | ||
Liquidity And Capital Requirements [Line Items] | ||
Adjusted balance of capital requirements | $ 180,900 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 segment | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2020 USD ($) | |
Related Party Transaction [Line Items] | ||||||||
Mortgage servicing rights, at fair value | $ 59,800,000 | $ 59,800,000 | $ 142,435,000 | |||||
2021 Promissory Notes | ||||||||
Related Party Transaction [Line Items] | ||||||||
Outstanding advance | 30,000,000 | $ 30,000,000 | 0 | |||||
2021 Promissory Notes | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of promissory notes | segment | 2 | |||||||
2021 Promissory Notes | BTO Urban Holdings And Libman Family Holdings, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate (in percent) | 6.50% | |||||||
Originated Agricultural Loans | FarmOp Capital Holdings, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, purchases from related party | 2,400,000 | $ 43,200,000 | $ 83,000,000 | $ 89,500,000 | $ 108,300,000 | |||
Originated Agricultural Loans Funded Draw Amounts | FarmOp Capital Holdings, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, amounts of transaction | 41,100,000 | $ 41,200,000 | $ 82,100,000 | $ 94,600,000 | 174,600,000 | |||
Promissory Notes | FarmOp Capital Holdings, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Outstanding promissory notes | $ 4,600,000 | $ 4,600,000 | $ 4,100,000 | |||||
Promissory Notes | Related Parties Of FOA | ||||||||
Related Party Transaction [Line Items] | ||||||||
Original issue amount | $ 135,000,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Valuation allowance | $ 23.5 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic Earnings Per Share by Common Class (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Numerator | |||||
Net earnings (loss) | $ (301,700) | $ 50,110 | $ 124,320 | $ 35,286 | $ (533,518) |
Less: loss attributable to noncontrolling interest | (217,214) | 28,726 | 11,637 | (399,859) | |
Net income (loss) attributable to holders of Class A Common Stock - basic | $ (84,486) | $ 21,384 | $ 23,649 | $ (133,659) | |
Basic weighted average shares outstanding (in shares) | 62,804,809 | 59,861,171 | 59,871,386 | 61,993,353 | |
Denominator | |||||
Basic net earnings (loss) per share (in USD per share) | $ (1.35) | $ 0.36 | $ 0.39 | $ (2.16) |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Diluted Earnings Per Share by Common Class (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Numerator | ||||
Net income (loss) attributable to holders of Class A Common Stock - basic | $ (84,486) | $ 21,384 | $ 23,649 | $ (133,659) |
Denominator | ||||
Weighted average shares of Class A Common Stock outstanding - basic (in shares) | 62,804,809 | 59,861,171 | 59,871,386 | 61,993,353 |
Diluted weighted average shares outstanding (in shares) | 62,804,809 | 191,161,431 | 191,180,610 | 188,375,945 |
Earnings Per Share, Diluted EPS [Abstract] | ||||
Diluted net earnings (loss) per share (in USD per share) | $ (1.35) | $ 0.22 | $ 0.17 | $ (2.34) |
Restricted Stock Units (RSUs) | ||||
Earnings Per Share, Diluted EPS [Abstract] | ||||
Weighted-average anti-dilutive securities excluded from the computation of diluted earnings per share (in shares) | 0 | 0 | 0 | 951,833 |
Class A LLC Units | ||||
Earnings Per Share, Diluted EPS [Abstract] | ||||
Weighted-average anti-dilutive securities excluded from the computation of diluted earnings per share (in shares) | 125,073,127 | 0 | 0 | 0 |
Class A Common Stock | ||||
Numerator | ||||
Net income (loss) attributable to holders of Class A Common Stock - basic | $ (84,486) | $ 21,384 | $ 23,649 | $ (133,659) |
Reallocation of net income (loss) assuming exchange of Class A LLC Units | 0 | 21,475 | 9,476 | (307,401) |
Net loss attributable to holders of Class A Common Stock - diluted | $ (84,486) | $ 42,859 | $ 33,125 | $ (441,060) |
Denominator | ||||
Weighted average shares of Class A Common Stock outstanding - basic (in shares) | 62,804,809 | 59,861,171 | 59,871,386 | 61,993,353 |
Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (in shares) | 0 | 131,300,259 | 131,309,223 | 126,382,592 |
Diluted weighted average shares outstanding (in shares) | 62,804,809 | 191,161,430 | 191,180,609 | 188,375,945 |
Earnings Per Share, Diluted EPS [Abstract] | ||||
Diluted net earnings (loss) per share (in USD per share) | $ (1.35) | $ 0.22 | $ 0.17 | $ (2.34) |
Award vesting cost responsibility (in percent) | 85% | 85% |
Equity (Detail)
Equity (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||||||
Common units outstanding (in shares) | 124,833,601 | 124,833,601 | 124,833,601 | ||||
Capital Unit, Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 67,217,776 | 67,217,776 | 67,217,776 | ||||
Stocks delivered | 576,810 | 829,222 | 829,222 | 3,749,057 | |||
Conversion of stock, shares converted (in shares) | 3,096 | 111,209 | |||||
Common units outstanding (in shares) | 187,792,877 | 187,792,877 | 187,792,877 | ||||
Capital Unit, Class A | Noncontrolling Interest | |||||||
Class of Stock [Line Items] | |||||||
Common units outstanding (in shares) | 62,959,276 | 62,959,276 | 62,959,276 | ||||
Class A Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 62,959,276 | 62,959,276 | 62,959,276 | 62,959,276 | |||
Common stock, shares issued (in shares) | 62,959,276 | 62,959,276 | 62,959,276 | 62,959,276 | |||
Common stock shares outstanding unvested portion (in shares) | 4,258,500 | 4,258,500 | |||||
Stocks delivered | 97,429 | 3,391,635 | 3,391,635 | 1,373,080 | |||
Stock repurchased and retired during period, shares (in shares) | 347,861 | 1,774,192 | 0 | 1,774,192 | 2,002,192 | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Class B Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 15 | 15 | 15 | 15 | |||
Common stock, shares issued (in shares) | 15 | 15 | 15 | 15 | |||
Stock issued during period, new issues (in shares) | 15 | ||||||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ in Thousands | Nov. 08, 2022 | Oct. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 |
Segment Reporting Information [Line Items] | ||||||
TOTAL ASSETS | $ 21,189,897 | $ 21,788,946 | $ 22,668,093 | $ 20,100,419 | ||
TOTAL LIABILITIES | 20,614,811 | 20,705,936 | ||||
Total Capacity | 4,450,565 | |||||
Subsequent Event | ||||||
Segment Reporting Information [Line Items] | ||||||
Reversal of MSR | $ 75,000 | |||||
2021 Promissory Notes | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Capacity | 30,000 | |||||
2021 Promissory Notes | Subsequent Event | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Capacity | $ 50,000 | |||||
Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
TOTAL ASSETS | 21,168,976 | 22,676,145 | 20,047,170 | |||
Operating segments | Mortgage Originations | ||||||
Segment Reporting Information [Line Items] | ||||||
TOTAL ASSETS | 724,099 | 2,148,500 | $ 2,978,565 | $ 2,425,529 | ||
TOTAL LIABILITIES | $ 693,100 | $ 1,987,000 |
Subsequent Events - Results for
Subsequent Events - Results for Mortgage Origination Segment To Be Discontinued (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Gain on sale and other income from loans held for sale, net | $ 36,179 | $ 210,095 | $ 291,334 | $ 397,672 | $ 226,336 |
Net fair value gains (losses) on loans and related obligations | (6,376) | 122,509 | 76,663 | 253,660 | 5,672 |
Fee income | 70,512 | 145,725 | 161,371 | 236,589 | 316,798 |
Net interest income | (29,214) | (21,829) | (21,705) | (42,304) | (69,152) |
Total revenues | 71,101 | 456,500 | 507,663 | 845,617 | 479,654 |
Total expenses | 258,921 | 411,878 | 373,314 | 812,630 | 933,471 |
Impairment of intangibles and other assets | 138,184 | 0 | 0 | 0 | 138,184 |
NET INCOME (LOSS) BEFORE INCOME TAXES | (304,674) | 54,550 | 125,457 | 40,812 | (550,767) |
Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Gain on sale and other income from loans held for sale, net | 39,518 | 213,958 | 291,546 | 407,092 | 237,910 |
Net fair value gains (losses) on loans and related obligations | (8,456) | 123,709 | 76,630 | 240,290 | (368) |
Fee income | 77,127 | 148,630 | 154,759 | 276,760 | 345,085 |
Net interest income | (22,403) | (15,069) | (13,961) | (28,968) | (49,088) |
Total revenues | 85,786 | 471,228 | 508,974 | 895,174 | 533,539 |
Total expenses | 243,146 | 392,119 | 348,706 | 785,136 | 876,826 |
Impairment of intangibles and other assets | 138,184 | 138,184 | |||
NET INCOME (LOSS) BEFORE INCOME TAXES | (293,872) | 79,737 | 161,348 | 110,749 | (473,717) |
Operating segments | Mortgage Originations | |||||
Segment Reporting Information [Line Items] | |||||
Gain on sale and other income from loans held for sale, net | 46,310 | 200,294 | 286,481 | 385,680 | 239,430 |
Net fair value gains (losses) on loans and related obligations | 0 | 1,145 | 0 | 1,145 | 0 |
Fee income | 13,885 | 30,827 | 32,731 | 61,172 | 52,120 |
Net interest income | 1,079 | 2,807 | 891 | 4,783 | 8,327 |
Total revenues | 61,274 | 235,073 | 320,103 | 452,780 | 299,877 |
Total expenses | 102,499 | 220,331 | 224,246 | 444,522 | 397,209 |
Impairment of intangibles and other assets | 128,884 | 0 | 0 | 0 | 128,884 |
NET INCOME (LOSS) BEFORE INCOME TAXES | $ (170,109) | $ 14,742 | $ 95,857 | $ 8,258 | $ (226,216) |
Uncategorized Items - foa-20220
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 626,827,000 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect | $ (109,865,000) |