Cover
Cover | Aug. 18, 2023 |
Document Information [Line Items] | |
Document Type | 8-K |
Document Period End Date | Aug. 18, 2023 |
Entity Registrant Name | FINANCE OF AMERICA COMPANIES INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-40308 |
Entity Tax Identification Number | 85-3474065 |
Entity Address, Address Line One | 5830 Granite Parkway |
Entity Address, Address Line Two | Suite 400 |
Entity Address, State or Province | TX |
Entity Address, City or Town | Plano |
Entity Address, Postal Zip Code | 75024 |
City Area Code | 877 |
Local Phone Number | 202-2666 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001828937 |
Class A Common Stock | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share |
Trading Symbol | FOA |
Security Exchange Name | NYSE |
Warrant To Purchase Common Class A | |
Document Information [Line Items] | |
Title of 12(b) Security | Warrants to purchase shares of Class A Common Stock |
Trading Symbol | FOA.WS |
Security Exchange Name | NYSE |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 61,149 | $ 103,778 |
Restricted cash | 179,764 | 322,091 |
Loans held for investment, subject to Home Equity Conversion Mortgage-Backed Securities ("HMBS") related obligations, at fair value | 11,114,100 | 10,556,054 |
Loans held for investment, subject to nonrecourse debt, at fair value | 7,454,638 | 6,218,194 |
Loans held for investment, at fair value | 907,998 | 1,031,328 |
Loans held for sale, at fair value | 173,984 | 158,156 |
Mortgage servicing rights ("MSR"), at fair value, $60,562 and $142,435 subject to nonrecourse MSR financing liability, respectively | 95,096 | 427,942 |
Derivative assets | 1,678 | 24,453 |
Fixed assets and leasehold improvements, net | 9,131 | 12,785 |
Intangible assets, net | 297,119 | 342,173 |
Other assets, net | 264,638 | 272,421 |
Assets of discontinued operations | 313,360 | 2,319,571 |
TOTAL ASSETS | 20,872,655 | 21,788,946 |
LIABILITIES AND EQUITY | ||
HMBS related obligations, at fair value | 10,996,755 | 10,422,358 |
Nonrecourse debt, at fair value (includes amounts due to related parties of $0 and $142,435, respectively) | 7,343,177 | 6,111,242 |
Other financing lines of credit | 1,327,634 | 1,530,637 |
Payables and other liabilities | 173,732 | 260,458 |
Notes payable, net (includes amounts due to related parties of $46,790 and $0, respectively) | 399,402 | 353,383 |
Liabilities of discontinued operations | 227,114 | 2,027,858 |
TOTAL LIABILITIES | 20,467,814 | 20,705,936 |
Commitments and Contingencies (Note 24) | ||
EQUITY (Note 37) | ||
Additional paid-in capital | 888,488 | 831,620 |
Accumulated deficit | (634,295) | (443,613) |
Accumulated other comprehensive loss | (273) | (110) |
Noncontrolling interest | 150,915 | 695,107 |
TOTAL EQUITY | 404,841 | 1,083,010 |
TOTAL LIABILITIES AND EQUITY | 20,872,655 | 21,788,946 |
Class A Common Stock | ||
EQUITY (Note 37) | ||
Common stock, value | 6 | 6 |
Class B Common Stock | ||
EQUITY (Note 37) | ||
Common stock, value | $ 0 | $ 0 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition - Parenthetical - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Mortgage servicing rights, at fair value | $ 60,562,000 | $ 142,435,000 |
TOTAL ASSETS | 20,872,655,000 | 21,788,946,000 |
Assets of discontinued operations | 313,360,000 | 2,319,571,000 |
Nonrecourse debt | ||
Amounts due to related parties | 0 | 142,435,000 |
Working Capital Promissory Notes | ||
Amounts due to related parties | $ 46,790,000 | $ 0 |
Class A Common Stock | ||
Common stock, shares issued (in shares) | 67,681,856 | 65,013,569 |
Common stock, shares outstanding (in shares) | 63,423,356 | 60,755,069 |
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 |
Class B Common Stock | ||
Common stock, shares issued (in shares) | 14 | 15 |
Common stock, shares outstanding (in shares) | 14 | 15 |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Consolidated Statements of Fi_3
Consolidated Statements of Financial Condition - Variable Interest Entities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted cash | $ 179,764 | $ 322,091 |
Loans held for investment, subject to nonrecourse debt, at fair value | 907,998 | 1,031,328 |
TOTAL ASSETS | 20,872,655 | 21,788,946 |
Nonrecourse debt, at fair value | 7,343,177 | 6,111,242 |
TOTAL LIABILITIES | 20,467,814 | 20,705,936 |
Variable Interest Entity, Primary Beneficiary | ||
Restricted cash | 173,714 | 311,652 |
Loans held for investment, subject to nonrecourse debt, at fair value | 7,340,528 | 6,099,607 |
Other assets, net | 75,977 | 67,593 |
TOTAL ASSETS | 7,590,219 | 6,478,852 |
Nonrecourse debt, at fair value | 7,175,857 | 5,857,069 |
Payables and other liabilities | 757 | 428 |
TOTAL LIABILITIES | 7,176,614 | 5,857,497 |
NET CARRYING VALUE OF ASSETS SUBJECT TO NONRECOURSE DEBT | $ 413,605 | $ 621,355 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | ||
REVENUES | |||||
Gain (loss) on sale and other income from loans held for sale, net | $ 5,065 | $ 35,800 | $ (5,931) | $ 10,192 | |
Net fair value gains on loans and related obligations | 71,198 | 291,021 | 89,489 | 296,127 | |
Fee income | 36,547 | 41,686 | 81,815 | 32,530 | |
Net interest expense: | |||||
Interest income | 150 | 2,334 | 6,038 | 729 | |
Interest expense | (22,710) | (73,232) | (118,649) | (82,955) | |
Net interest expense | (22,560) | (70,898) | (112,611) | (82,226) | |
TOTAL REVENUES | 90,250 | 297,609 | 52,762 | 256,623 | |
EXPENSES | |||||
Salaries, benefits, and related expenses | 30,274 | 166,805 | 206,943 | 115,029 | |
Occupancy, equipment rentals, and other office related expenses | 920 | 5,769 | 7,115 | 4,180 | |
General and administrative expenses | 36,038 | 131,957 | 204,168 | 116,135 | |
TOTAL EXPENSES | 67,232 | 304,531 | 418,226 | 235,344 | |
IMPAIRMENT OF GOODWILL, INTANGIBLES, AND OTHER ASSETS | 0 | (425,777) | (9,528) | 0 | |
OTHER, NET | (9,043) | 10,684 | 31,992 | (6,131) | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 13,975 | (422,015) | (343,000) | 15,148 | |
Provision (benefit) for income taxes from continuing operations | 18 | (7,182) | (17,132) | 150 | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 13,957 | (414,833) | (325,868) | 14,998 | |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | 110,363 | (886,169) | (389,660) | 482,915 | |
NET INCOME (LOSS) | [1] | 124,320 | (1,301,002) | (715,528) | 497,913 |
Contingently redeemable noncontrolling interest ("CRNCI") from continuing operations | 3,141 | 0 | 0 | (17,620) | |
Net loss attributable to noncontrolling interest from continuing operations | 0 | (307,212) | (261,450) | 0 | |
CRNCI from discontinued operations | 1,119 | 0 | 0 | (4,129) | |
Net income (loss) attributable to noncontrolling interest from discontinued operations | 201 | (621,990) | (263,396) | 1,274 | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO CONTROLLING INTEREST | 10,816 | (107,621) | (64,418) | 32,618 | |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO CONTROLLING INTEREST | 109,043 | (264,179) | (126,264) | 485,770 | |
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ 119,859 | $ (371,800) | $ (190,682) | $ 518,388 | |
EARNINGS PER SHARE (Note 35) | |||||
Basic weighted average shares outstanding (in shares) | 59,849,638 | 62,298,532 | |||
Basic net loss per share from continuing operations (in USD per share) | $ (1.80) | $ (1.03) | |||
Basic, net loss per share (in USD per share) | $ (6.21) | $ (3.06) | |||
Diluted weighted average shares outstanding (in shares) | 190,597,249 | 188,236,513 | |||
Diluted net loss per share from continuing operations (in USD per share) | $ (2.08) | $ (1.58) | |||
Diluted net loss per share (in USD per share) | $ (6.52) | $ (3.12) | |||
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 3 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME (LOSS) | [1] | $ 124,320 | $ (1,301,002) | $ (715,528) | $ 497,913 |
COMPREHENSIVE INCOME (LOSS) ITEM: | |||||
Impact of foreign currency translation adjustment | (11) | (110) | (163) | 60 | |
TOTAL COMPREHENSIVE INCOME (LOSS) | 124,309 | (1,301,112) | (715,691) | 497,973 | |
Less: Comprehensive income (loss) attributable to the noncontrolling interest and CRNCI | 4,461 | (929,278) | (524,955) | (20,475) | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ 119,848 | $ (371,834) | $ (190,736) | $ 518,448 | |
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 3 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | FoA Equity Capital LLC Member's Equity | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balance at Dec. 31, 2019 | $ 482,813 | $ 482,719 | $ (51) | $ 145 |
Contributions from members | 7,500 | 7,500 | ||
Distributions to members | (380,431) | (380,431) | ||
Noncontrolling interest contributions | 104 | 104 | ||
Noncontrolling interest distributions | (1,668) | (1,668) | ||
Net income | 519,662 | 518,388 | 1,274 | |
Foreign currency translation adjustment | 60 | 60 | ||
Ending balance at Dec. 31, 2020 | 628,040 | 628,176 | 9 | (145) |
Contributions from members | 1,426 | 1,426 | ||
Distributions to members | (75,000) | (75,000) | ||
Noncontrolling interest distributions | (620) | (620) | ||
Net income | 120,060 | 119,859 | 201 | |
Accretion of CRNCI to redemption price | (32,725) | (32,725) | ||
Foreign currency translation adjustment | (11) | (11) | ||
Ending balance at Mar. 31, 2021 | $ 641,170 | $ 641,736 | $ (2) | $ (564) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Class A Common Stock | Class A Common Stock Common Stock | Class B Common Stock Common Stock | |
Beginning balance (in shares) at Apr. 01, 2021 | 131,318,286 | 59,881,714 | 7 | ||||||
Beginning balance at Apr. 01, 2021 | $ 2,344,981 | $ 758,243 | $ (71,813) | $ 0 | $ 1,658,545 | $ 6 | $ 0 | ||
Net loss | (1,301,002) | (371,800) | (929,202) | ||||||
Noncontrolling interest contributions | 73 | 73 | |||||||
Noncontrolling interest distributions | (827) | $ (827) | |||||||
Equity-based compensation, net | 52,922 | 52,922 | |||||||
Conversion of LLC Units for Class A Common Stock (Note 37 - Equity) (in shares) | (1,795,197) | 1,795,197 | |||||||
Conversion of LLC Units for Class A Common Stock (Note 37 - Equity) | (3,330) | 19,609 | $ (22,939) | ||||||
Settlement of long-term incentive plan ("LTIP") restricted stock units ("RSUs"), net (Note 37 - Equity) (in shares) | (829,222) | 829,222 | |||||||
Settlement of long-term incentive plan ("LTIP") restricted stock units ("RSUs"), net (Note 37 - Equity) | (2,090) | 8,453 | $ (10,543) | ||||||
Settlement of other RSUs (Note 25 - Equity-Based Compensation) (in shares) | 37,383 | ||||||||
Cancellation of shares to fund employee tax withholdings (Note 37 - Equity) (in shares) | (1,788,447) | ||||||||
Cancellation of shares to fund employee tax withholdings (Note 37 - Equity) | (7,607) | (7,607) | |||||||
Reorganization of Class A LLC ownership (in shares) | 8 | ||||||||
Foreign currency translation adjustment | (110) | (110) | |||||||
Ending balance (in shares) at Dec. 31, 2021 | 128,693,867 | 60,755,069 | 15 | ||||||
Ending balance at Dec. 31, 2021 | 1,083,010 | 831,620 | (443,613) | (110) | $ 695,107 | $ 6 | $ 0 | ||
Net loss | (715,528) | [1] | (190,682) | (524,846) | |||||
Noncontrolling interest contributions | 42 | 42 | |||||||
Noncontrolling interest distributions | (248) | $ (248) | |||||||
Equity-based compensation, net | 48,342 | 48,342 | |||||||
Conversion of LLC Units for Class A Common Stock (Note 37 - Equity) (in shares) | (491,509) | 491,509 | |||||||
Conversion of LLC Units for Class A Common Stock (Note 37 - Equity) | (83) | 1,147 | $ (1,230) | ||||||
Settlement of long-term incentive plan ("LTIP") restricted stock units ("RSUs"), net (Note 37 - Equity) (in shares) | (3,749,057) | 3,749,057 | |||||||
Settlement of long-term incentive plan ("LTIP") restricted stock units ("RSUs"), net (Note 37 - Equity) | (4,824) | 13,086 | $ (17,910) | ||||||
Settlement of other RSUs (Note 25 - Equity-Based Compensation) (in shares) | 473,783 | ||||||||
Cancellation of shares to fund employee tax withholdings (Note 37 - Equity) (in shares) | (2,046,062) | ||||||||
Cancellation of shares to fund employee tax withholdings (Note 37 - Equity) | (5,707) | (5,707) | |||||||
Class B share retirement (Note 37 - Equity) (in shares) | (2,046,062) | (1) | |||||||
Foreign currency translation adjustment | (163) | (163) | |||||||
Ending balance (in shares) at Dec. 31, 2022 | 124,453,301 | 63,423,356 | 14 | ||||||
Ending balance at Dec. 31, 2022 | $ 404,841 | $ 888,488 | $ (634,295) | $ (273) | $ 150,915 | $ 6 | $ 0 | ||
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 3 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | ||||||
Operating Activities | |||||||||
NET INCOME (LOSS) | [1] | $ 124,320 | $ (1,301,002) | $ (715,528) | $ 497,913 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||
Gain on sale and other income from loans held for sale, net | [1] | (291,334) | (564,525) | (211,018) | (1,178,995) | ||||
Unrealized fair value changes on loans, related obligations, and derivatives | [1] | (69,283) | (317,296) | (60,260) | (275,485) | ||||
Change in fair value of mortgage servicing rights | [1] | (20,349) | 15,200 | (23,026) | (4,562) | ||||
Depreciation and amortization | [1] | 5,366 | 50,005 | 64,991 | 19,327 | ||||
Change in fair value of nonrecourse MSR financing liability | [1] | (390) | 2,998 | 8,162 | (798) | ||||
Impairment of goodwill, intangibles, and other assets | [1] | 0 | 1,380,630 | 192,509 | 0 | ||||
Deferred income taxes | [1] | (128) | (23,747) | (16,768) | (231) | ||||
Change in fair value of deferred purchase price liabilities | [1] | 29 | 2,240 | (11,207) | 3,014 | ||||
Loss on investments | [1] | 9,464 | 3,470 | 6,925 | 3,838 | ||||
Equity-based compensation | [1] | 0 | 71,808 | 47,857 | 0 | ||||
Non-cash lease expense | [1] | 1,411 | 7,324 | 6,537 | 3,824 | ||||
Provision for claims | [1] | 0 | 7,043 | 3,351 | 3,520 | ||||
Originations/purchases of loans held for sale | [1] | (8,569,575) | (21,843,640) | (14,313,496) | (29,407,723) | ||||
Proceeds from sale of loans held for sale | [1] | 8,878,131 | 22,438,540 | 16,174,272 | 29,628,177 | ||||
Change in fair value of warrant liability | [1] | 0 | (12,472) | (4,380) | 0 | ||||
Changes in operating assets and liabilities: | |||||||||
Other assets, net | [1] | 149,978 | (275,426) | 421,323 | 17,838 | ||||
Payables and accrued expenses | [1] | (99,597) | 144,220 | (162,425) | 4,253 | ||||
Net cash provided by (used in) operating activities | [1] | 118,043 | (214,630) | 1,407,819 | (686,090) | ||||
Investing Activities | |||||||||
Purchases and originations of loans held for investment | [1] | (1,151,925) | (4,426,519) | (6,165,003) | (3,637,299) | ||||
Proceeds/payments received on loans held for investment | [1] | 677,777 | 2,006,133 | 2,178,473 | 1,822,409 | ||||
Purchases and origination of loans held for investment, subject to nonrecourse debt | [1] | (12,247) | (89,359) | (117,009) | (44,705) | ||||
Proceeds/payments on loans held for investment, subject to nonrecourse debt | [1] | 217,452 | 1,460,257 | 1,846,937 | 913,824 | ||||
Purchases of debt securities | [1] | (557) | (4,987) | (11,854) | (39,264) | ||||
Proceeds/payments on debt securities | [1] | 2,096 | 3,791 | 13,056 | 140,787 | ||||
Purchases of MSR | [1] | (9,014) | (16,915) | 0 | (14,088) | ||||
Proceeds on sale of MSR | [1] | 7,765 | 2,061 | 473,794 | 0 | ||||
Acquisition of subsidiaries, net of cash acquired | [1] | (749) | (28,436) | 0 | (197) | ||||
Acquisition of fixed assets | [1] | (4,178) | (13,951) | (11,236) | (9,027) | ||||
Issuance of notes receivable | [1] | 0 | 0 | (20,000) | 0 | ||||
Debtor in possession ("DIP") Financing | [1] | (35,260) | 0 | 0 | |||||
Debtor in possession ("DIP") Financing | [1] | 5,600 | |||||||
Other investing activities, net | [1] | (3,207) | (1,086) | (6,233) | (7,547) | ||||
Net cash used in investing activities | [1] | (312,047) | (1,103,411) | (1,819,075) | (875,107) | ||||
Financing Activities | |||||||||
Proceeds from issuance of HMBS related obligations | [1] | 602,172 | 2,491,919 | 2,863,667 | 2,051,954 | ||||
Payments of HMBS related obligations | [1] | (506,142) | (1,933,388) | (2,325,269) | (1,943,445) | ||||
Proceeds from issuance of nonrecourse debt | [1] | 579,518 | 2,108,634 | 3,418,437 | 3,074,047 | ||||
Payments on nonrecourse debt | [1] | (658,300) | (1,300,720) | (1,879,198) | (1,637,612) | ||||
Proceeds from other financing lines of credit | [1] | 10,027,696 | 27,843,799 | 21,473,732 | 35,230,187 | ||||
Payments on other financing lines of credit | [1] | (9,660,588) | (27,836,702) | (23,365,804) | (34,969,022) | ||||
Issuance of notes payable | [1] | 0 | 0 | 87,530 | 350,000 | ||||
Payments on notes payable | [1] | 0 | 0 | (40,740) | (46,771) | ||||
Member distributions | [1] | (75,000) | 0 | 0 | (380,431) | ||||
Settlement of CRNCI | [1] | 0 | (203,216) | 0 | 0 | ||||
Other financing activities, net | [1] | (1,661) | (15,361) | (7,141) | (11,045) | ||||
Net cash provided by financing activities | [1] | 307,695 | 1,154,965 | 225,214 | 1,717,862 | ||||
Foreign currency translation adjustment | (7) | (110) | (163) | 34 | |||||
Net increase (decrease) in cash and restricted cash | 113,684 | (163,186) | (186,205) | 156,699 | |||||
Cash and restricted cash, beginning of period | [1] | 539,363 | [2] | 653,047 | 463,641 | [2] | 382,664 | [2] | |
Cash and restricted cash, end of period | [1] | 653,047 | 463,641 | [2] | 277,436 | 539,363 | [2] | ||
Supplementary Cash Flows Information | |||||||||
Cash paid for interest | 50,071 | 117,965 | 269,259 | 169,362 | |||||
Cash paid for income taxes, net | 63 | 2,219 | 46 | 1,447 | |||||
Loans transferred to loans held for sale, at fair value, from loans held for investment, at fair value | $ 0 | $ 8,828 | $ 183,578 | $ 11,562 | |||||
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 3 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. (2) Difference between beginning cash for the Successor period and ending cash balance for the Predecessor period resulted from cash expense that were considered to have been incurred "on the line." |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 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 modern retirement solutions platform that provides customers with access to an innovative range of retirement offerings centered on the home, including reverse mortgages and home improvement loans as well as home-sharing services. In addition, FoA offers capital markets and portfolio management capabilities to optimize distribution to investors. 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 Reverse LLC ("FAR") and Finance of America Mortgage LLC ("FAM"). Through FAR, the Company originates, purchases, sells, and securitizes home equity conversion mortgages, which are insured by the Federal Housing Administration ("FHA"), and non-agency reverse mortgages. Through FAM, the Company 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 capital markets and portfolio management capabilities such as secondary markets advisory services, mortgage trade brokerage, and capital management services. Incenter operates a foreign branch in the Philippines for fulfillment transactional support. Organizational Updates On October 20, 2022, the Board of Directors (the "Board") of the Company authorized a plan to discontinue the operations of the Company’s previously reported Mortgage Originations segment, other than the Home Improvement channel (the "Dispositio n"). The Disposition commenced in the fourth quarter of 2022 and was completed on February 28, 2023. The operations of the Home Improvement channel are now reported as part of the Company's Retirement Solutions segment. Refer to Note 3 - Discontinued Operations and Note 38 - Subsequent Events for additional information. On December 6, 2022, the Company entered into an asset purchase agreement with American Advisors Group, now known as Bloom Retirement Holdings Inc. ("AAG/Bloom"). Also on December 6, 2022, concurrently with the execution of the asset purchase agreement, FAR entered into a Servicing Rights Purchase and Sale Agreement (the "MSR Purchase Agreement") and a Loan Sale Agreement (the "Mortgage Loan Purchase Agreement" and collectively with the asset purchase agreement and MSR Purchase Agreement, the "AAG Transaction") with AAG/Bloom. The AAG Transaction closed on March 31, 2023. Refer to Note 38 - Subsequent Events for additional information. On February 1, 2023, the Company's indirect subsidiary, Incenter, entered into an agreement to sell one hundred percent of (i) the issued and outstanding shares of capital stock of Agents National Title Holding Company ("ANTIC"), a direct subsidiary of Incenter and an indirect subsidiary of the Company, and (ii) the issued and outstanding membership interests of Boston National Holdings LLC ("BNT"), a direct subsidiary of Incenter and an indirect subsidiary of the Company. The closing of the ANTIC and BNT sale was completed on July 3, 2023. The Company has historically included the operations of ANTIC and BNT in its previously reported Lender Services operating segment. On March 30, 2023, the FoA Equity Board authorized a plan to sell assets making up the remainder of the Company's previously reported Lender Services operating segment, with the exception of its Incenter Solutions LLC operating service subsidiary. The operations of Incenter Solutions LLC are now reported as part of the Company's Corporate and Other segment. The Company sold the remainder of the assets on June 30, 2023. Refer to Note 3 - Discontinued Operations and Note 38 - Subsequent Events for additional information. On February 19, 2023, the Company's indirect subsidiary, FAH, entered into an agreement to sell certain commercial originations operational assets of FAM, operating under Finance of America Commercial ("FACo"). This transaction closed on March 14, 2023. The Company has historically included the commercial originations operations of FACo in its previously reported Commercial Originations operating segment. Refer to Note 3 - Discontinued Operations and Note 38 - Subsequent Events for additional information. In 2022 and 2023, the Company reevaluated the business strategy and implemented a series of transformational actions to restructure the organization into a modern retirement solutions platform. This plan included the wind-down of the previously reported Mortgage Originations segment and sale of the previously reported Commercial Originations and Lenders Services segments. To more closely align with the business strategy, the Company restructured the reporting segments into the following: Retirement Solutions, Portfolio Management and Corporate and Other. The segment disclosures have been restated to reflect the new structure. Refer to Note 30 - Business Segment Reporting for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements comprise the financial statements of FoA and its controlled subsidiaries for the Successor year ended December 31, 2022 and nine months ended December 31, 2021 and the financial statements of FoA Equity and its controlled subsidiaries for the Predecessor period from January 1, 2021 to March 31, 2021 and the year ended December 31, 2020. The consolidated financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for financial statements and pursuant to the accounting and disclosure rules and regulations of the SEC. In the opinion of management, such financial information reflects all normal and recurring adjustments necessary for a fair presentation of the financial position and the results of operations for such periods in accordance with U.S. GAAP. On October 12, 2020, the Company, Replay and FoA Equity entered into the Transaction Agreement pursuant to which Replay agreed to combine with FoA Equity in a series of transactions that resulted in the formation of FoA as a publicly traded company on the New York Stock Exchange ("NYSE"), and FoA controlling FoA Equity (collectively, the "Business Combination"). At the Closing on April 1, 2021 (the "Closing Date"), Replay domesticated into a Delaware corporation and FoA was formed. See Note 5 - Acquisitions for additional information. The consolidated financial statements include the accounts of the Predecessor, prior to the Business Combination, which was determined to be FoA Equity, a limited liability company that was formed in July 2020. Prior to the Business Combination, FoA Equity was a wholly-owned subsidiary of UFG Holdings LLC ("UFG"). FoA Equity owns all of the outstanding equity interests or has a controlling financial interest in FOAF. FAH and Incenter LLC are wholly-owned s ubsidiaries of FOAF, and are included in the consolidated financial statements along with their consolidated operating lending subsidiaries and operating service subsidiaries. See Note 1 - Organization and Description of Business for additional information. Liquidity and Going Concern The Company’s financial statements are prepared in accordance with GAAP assuming the Company will continue to operate as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. In accordance with Financial Accounting Standards Board, or the FASB, Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), our management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about our ability to continue as a going concern. For the year ended December 31, 2022, the Company incurred net losses of approximately $715.5 million, including operational losses in its discontinued previously reported Mortgage Originations, Commercial Originations, and Lender Services segments. Revenues generated for 2022 were negatively impacted by macroeconomic factors including persistent high inflation and increased market interest rates. These factors significantly reduced customer demand and compressed margins in our business segments. The Company also observed significantly widened market spreads for assets that we hold for investment at fair value, which combined with higher interest rates, resulted in negative fair value adjustments. These fair value losses recognized in accordance with U.S. GAAP resulted in the Company using cash during 2022 to pay down or repay certain credit facilities. When evaluated in the aggregate, and before consideration of management’s plans, these conditions raise questions as to our ability to meet our obligations and covenants for the twelve-month and a day period from the date of the issuance of the consolidated financial statements. In order to address the conditions noted above, Management has taken certain actions and is implementing the following plans and actions that we believe will address the Company’s liquidity needs over at least the twelve-month and a day period from the date of the issuance of the consolidated financial statements: • Disposal of the Mortgage Origination business was completed as of February 28, 2023. This disposal reduces future operating losses and increases liquidity. • Sale of operating assets in Commercial Originations closed on March 14, 2023. This sale further reduces future operating losses. • Sale of the Company’s remaining commercial loan and other related assets, which increases liquidity. • Extension (executed March 13, 2023) of the Company’s revolving working capital lines of credit through May 15, 2024. • Acquisition of certain business operations (assets and liabilities) of American Advisors Group, is expected to close at the end of the first quarter of 2023. In connection with the closing of the AAG transaction, the Company will pay cash of $10 million and issue approximately $50 million in FoA Equity LLC units as equity consideration to AAG and further, the Company will issue shares to certain existing equity holders in connection with a committed cash equity raise totaling $30 million. The AAG acquisition is expected to increase operating revenues and net cash attributable to its Retirement Solutions and Portfolio Management business segments. Refer to Note 38 - Subsequent Events for further details related to the acquisition. • Sale of Boston National Holdings LLC and Agents National Title Holding Company for a cash purchase price of approximately $100 million (approximately $65 million net of cash on hand), which is expected to close in the second quarter of 2023. Refer to Note 38 - Subsequent Events for further details related to the divestiture. The Company believes management’s plans, as described above, will provide sufficient liquidity to meet the financial obligations and covenants over at least the twelve-month and a day period from the date the consolidated financial statements are issued and that the execution of these plans is probable. Use of Estimates The preparation of 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates regarding loans held for investment, subject to HMBS related obligations, loans held for investment, subject to nonrecourse debt, loans held for investment, loans held for sale, MSR, HMBS related obligations, and nonrecourse debt are particularly subject to change. Actual results may differ from those estimates and assumptions due to factors such as changes in the economy, interest rates, secondary market pricing, prepayment assumptions, home prices or discrete events affecting specific borrowers, and such differences could be material. Principles of Consolidation The consolidated financial statements include the accounts of the Company, its controlled subsidiaries and certain variable interest entities where the Company is the primary beneficiary. The Company is deemed to be the primary beneficiary of a variable interest entity ("VIE") when it has both (1) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (2) exposure to benefits and/or losses that could potentially be significant to the entity. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date that the Company ceases to be the primary beneficiary. Through December 31, 2021, FoA Equity consolidated the accounts of Finance of America Commercial Holdings LLC ("FACo Holdings"), which was a direct subsidiary of FAH and an indirect parent company of FACo. Through the date of the Business Combination, the noncontrolling interests of FACo Holdings met the definition of contingently redeemable financial instruments for which the ability to redeem was outside the control of the consolidating entit y. In connection with the closing of the Business Combination disclosed in Note 5 - Acquisitions , FoA caused FAH to exe rcise its right under the FACo Holdings Agreement to purchase all of the outstanding Class B Units held by Buy to Rent Platform Holdings, L.P. for a redemption price of $203.2 million in satisfaction of the applicable Hurdle Amount under the FACo Holdings Agreement. Effective January 1, 2022, the Company's operating lending subsidiary, FACo, which previously operated as a separate operating lending subsidiary under FAH, merged with FAM, with FAM being the surviving operating lending subsidiary. Asset Acquisitions and Business Combinations In accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), as of the acquisition date, the Company evaluates acquisitions to determine whether the Company has acquired a business or a group of assets. The evaluation includes a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The results of this evaluation impacts whether the Company accounts for an acquisition under business combination or asset acquisition guidance. If the screen test is met, the acquisition is not considered to be a business, and is instead accounted for as an asset acquisition. Under ASC 805, asset acquisitions are measured following a cost accumulation and allocation model, whereby the costs to acquire the assets, including transaction costs, are accumulated and then allocated to the individual assets and liabilities acquired based upon their estimated fair values. No goodwill or bargain purchase gain is recognized in an asset acquisition. The Company applies the acquisition method to all transactions and other events in which the entity obtains control over one or more other businesses. Under business combination, assets acquired and liabilities assumed are measured at fair value as of the acquisition date. Liabilities related to contingent consideration are recognized at the acquisition date and re-measured at fair value in each subsequent reporting period. Goodwill is recognized if the consideration transferred exceeds the fair value of the net assets acquired. Under ASC 805, there is an option to apply push-down accounting, which establishes a new basis for the assets and liabilities of the acquired company based on a “push-down” of the acquirer’s stepped-up basis. The push-down accounting election is made in the reporting period in which the change in control event occurs. FoA elected push-down accounting for the Business Combination and recorded the push-down entries at FoA Equity. Refer to Note 5 - Acquisitions for further information about the Company’s acquisition-related transactions. On December 6, 2022, the Company entered into an asset purchase agreement with AAG/Bloom. The AAG Transaction closed on March 31, 2023. Refer to Note 38 - Subsequent Events for additional information. Discontinued Operations and Assets Held for Sale The Company classifies assets and liabilities as held for sale when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. We also consider whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate it is unlikely significant changes to the plan will be made or the plan will be withdrawn. In accordance with ASC 205, Presentation of Financial Statements ("ASC 205") , we classify operations as discontinued when they meet all the criteria to be classified as held for sale and when the sale represents a strategic shift that will have a major impact on our financial condition and results of operations. The Company considers a component of the entity that is being exited to be discontinued operations when all operations, including wind-down operations, cease. VIEs The Company has been the transferor in connection with securitizations or asset-backed financing arrangements with special purpose entities ("SPE"), in which the Company has continuing involvement with the underlying transferred financial assets. The Company’s continuing involvement includes acting as servicer for the mortgage loans transferred and retaining beneficial interests in the SPE to which the assets were transferred. The Company evaluates its interests in each SPE for classification as a VIE in accordance with ASC 810-10 Consolidation-Overall . When an SPE meets the definition of a VIE and the Company determines that it is the VIE's primary beneficiary, the Company includes the SPE in its consolidated financial statements. The beneficial interests held consist of residual securities that were retained at the time of securitization. These beneficial interests may obligate the Company to absorb losses of the VIE that could potentially be significant to the VIE, or affords the Company the right to receive benefits from the VIE that could potentially be significant. In addition, when the Company acts as servicer of the transferred assets, the Company retains the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE. When it is determined that the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE, the assets and liabilities of these VIEs are included in the consolidated financial statements of the Company. The Company reassesses its evaluation of an entity as a VIE upon the occurrence of certain reconsideration events as the primary beneficiary determination may change over time as interest in the VIE changes. The Company elected the fair value option provided for by ASC 825-10, Financial Instruments-Overall . This option was applied for the nonrecourse debt issued by the consolidated VIE. See Note 4 - Variable Interest Entities and Securitizations for further discussion of VIEs in which the Company is deemed to be the primary beneficiary. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. These investments are with high quality financial, governmental, or corporate institutions and potentially subject the Company to concentrations of credit risk. December 31, 2022 December 31, 2021 Cash and cash equivalents $ 61,149 $ 103,778 Restricted cash 179,764 322,091 Cash, cash equivalents, and restricted cash of discontinued operations 36,523 37,772 Total cash, cash equivalents, and restricted cash in statement of cash flows $ 277,436 $ 463,641 Restricted Cash Restricted cash includes amounts specifically designated to repay debt and provide over-collateralization within warehouse facilities and securitized nonrecourse debt obligations, custodial accounts related to the Company’s portfolio of mortgage loans serviced for investors, and funds deposited from prospective borrowers to cover out-of-pocket expenses incurred by the Company in connection with due diligence activities performed during the loan approval process. Certain funds deposited with the Company may be returned to the borrower at the time the loan funds or if the loan does not close. The Company records a liability for these amounts until the loan has closed or a cost has been incurred. Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value The Company elected the fair value option provided for by ASC 825-10, Financial Instruments-Overall . A home equity conversion mortgage ("HECM") is a reverse mortgage loan available to homeowners aged 62 or older that allows conversion of a portion of the home’s equity into cash. The HECM loan terms do not have a defined maturity date or a scheduled repayment of principal and interest. Interest rates are tied to an index plus a margin that ranges up to three percentage points. Interest compounds over the life of the loan and is not paid by the borrower until the loan is repaid. HECM loans include a monthly mortgage insurance premium ("MIP") that is payable to FHA. The MIP amount is typically calculated as 1.25% of the mortgage balance for loans originated prior to October 2, 2017 and 0.5% for loans originated after October 2, 2017 and accretes to the borrower’s loan balance over the life of the loan. As the issuer, the Company is responsible for remitting the MIP to FHA. A maturity event will cause the loan to become due and payable. Maturity events include: borrower has passed away and the property is not the principal residence of at least one surviving borrower; borrower has sold or conveyed title of the property to a third party; the property is no longer the principal residence of at least one borrower for reasons other than death; the borrower does not maintain the property as principal residence for a period exceeding 12 months; the borrower fails to pay property taxes and/or insurance and all attempts to rectify the situation have been exhausted; and the property is in disrepair and the borrower has refused or is unable to repair the property. Once a loan has become due and payable, unsecuritized borrower advances cannot be placed into a Government National Mortgage Association ("Ginnie Mae" or "GNMA") HMBS. Generally, the Company recovers such advances (referred to as unpoolable tails) from borrowers, from proceeds of liquidation of collateral or ultimate disposition of the loan, including conveyance of claims to FHA. If the loan is not paid within six months of the maturity event, the Company may proceed with foreclosure on the property. A loan may be satisfied by borrower repayment, sales or appraisal-based claim submissions to the U.S. Department of Housing and Urban Development ("HUD"), and/or foreclosure sale proceeds. If the Company sells the property within six months, it may file a sales-based claim with HUD to recover any shortfall between the sales price of the property and the outstanding loan balance. If the property is not sold within six months, the Company may file an appraisal-based claim with HUD to recover any shortfall between the appraised value and the outstanding loan balance. Once the appraisal based claim is paid by HUD, any subsequent expenses or loss in the property’s value exposes the Company to additional losses that may not be eligible to be recouped through the filing of an additional HUD claim. The Company has determined that HECM loans transferred under the current Ginnie Mae HMBS securitization program do not meet the requirements for sale accounting and are not derecognized upon date of transfer. The Ginnie Mae HMBS securitization program includes certain terms that do not meet the participating interest requirements and require or provide an option for the Company to reacquire the loans prior to maturity. Due to these terms, the transfer of the loans does not meet the requirements of sale accounting. As a result, the Company accounts for HECM loans transferred into HMBS securitizations as secured borrowings and continues to recognize the loans as held for investment, subject to HMBS related obligations, along with the corresponding liability for the HMBS related obligations. No gains or losses are recognized on these transfers of HECM loans into HMBS securitizations. Loans are considered nonperforming upon events such as, 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 not being paid. In addition to having to fund repurchase of these loans out of Ginnie Mae HMBS, the Company also typically earns a lower interest rate and incurs certain non-reimbursable costs during the process of liquidating nonperforming loans. Loans purchased out of Ginnie Mae HMBS are recorded in loans held for investment or loans held for investment, subject to nonrecourse debt, in the Consolidated Statements of Financial Condition at their fair value reflective of proceeds of liquidation of collateral or ultimate disposition of the loan. Loans held for investment, subject to HMBS related obligations, also include claims receivable that have been submitted to HUD awaiting reimbursement. These amounts are recorded net of amounts the Company does not expect to recover through outstanding claims. The yield recognized on loans held for investment, subject to HMBS related obligations, and changes in estimated fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The yield recognized includes the recognition of interest income based on the stated interest rates of the loans that is expected to be collected through conveyance of loans to FHA, repayment by borrower or through disposition of real estate upon foreclosure. See Note 6 - Fair Value for further discussion of valuation of loans held for investment, subject to HMBS related obligations. Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value Loans held for investment, subject to nonrecourse debt, at fair value, are loans that were securitized and serve as collateral for the issued nonrecourse debt, including HECM Buyouts, agricultural securitized loans, fix & flip securitized loans, and non-agency reverse mortgages that were securitized into trusts that meet the definition of a VIE and were consolidated or did not qualify for true sale accounting. The Company has determined that it has both the power to direct the activities that most significantly impact the economic performance of the VIE, and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company has elected the fair value option for all loans held for investment and determines the fair value, on a recurring basis, based on discounted cash flow ("DCF") models. The difference between the cost basis of newly originated or acquired loans, and their estimated fair value is recognized in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. See Note 6 - Fair Value for further discussion of valuation of loans held for investment, subject to nonrecourse debt. The yield recognized on loans held for investment, subject to nonrecourse debt, at fair value and changes in estimated fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The yield recognized includes the contractual interest income that is expected to be collected based on the stated interest rates of the loans. Loans Held for Investment, at Fair Value Loans held for investment, at fair value, consists of certain reverse mortgage and commercial mortgage loans that the Company intends to hold to maturity. The Company has elected the fair value option for all loans held for investment and determines the fair value, on a recurring basis, based on DCF models. These valuations require the use of judgment by the Company and changes in assumptions can have a significant impact on the determination of the loan’s fair value. The difference between the cost basis of newly originated or acquired loans, and their estimated fair value is recognized in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. See Note 6 - Fair Value for further discussion of valuation of loans held for investment. The yield recognized on loans held for investment and changes in estimated fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The yield recognized includes the contractual interest income that is expected to be collected based on the stated interest rates of the loans. Reverse Mortgage Loans Reverse mortgage loans held for investment consists of originated or purchased HECM and non-agency reverse mortgage loans not yet securitized, unsecuritized tails, and certain HECM purchased out of Ginnie Mae HMBS, which the Company intends to hold to maturity. HECM loans and tails that have not yet been securitized into HMBS consist primarily of newly-issued HECM that the Company has either originated or purchased, subsequent borrower draws, and amounts paid by the Company on the borrower's behalf for MIP that have not yet been transferred to a Ginnie Mae securitization. Non-agency reverse mortgage loans are typically designated for homeowners aged 62 or older, with higher priced homes. However, certain non-agency reverse mortgage loan products are designated for homeowners aged 55 or older. The minimum home value is $400 thousand and the maximum loan amount is $4 million. Non-agency reverse mortgage loans are not insured by the FHA and will not be placed into a Ginnie Mae HMBS; however, the Company may transfer or pledge these assets as collateral for securitized nonrecourse debt obligations. The Company, as an issuer of HMBS, is required to repurchase reverse loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the maximum claim amount ("MCA") (referred to as HECM Buyouts). Performing repurchased loans are conveyed to HUD and payment is received from HUD typically within 75 days of repurchase. Nonperforming repurchased loans are generally liquidated through foreclosure, subsequent sale of the real estate owned, and claim submissions to HUD. Loans are considered nonperforming upon events such as, 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 not being paid. In addition to having to fund these repurchases, the Company also typically earns a lower interest rate and incurs certain non-reimbursable costs during the process of liquidating nonperforming loans. Loans purchased out of Ginnie Mae HMBS are recorded in the Consolidated Statements of Financial Condition at their fair value reflective of proceeds of liquidation of collateral or ultimate disposition of the loan. Reverse mortgage loans also include claims receivable that have been submitted to HUD awaiting reimbursement. These amounts are recorded net of amounts the Company does not expect to recover through outstanding claims. Loan origination fees represent an up-front fee charged to a borrower for processing the HECM or non-agency reverse mortgage application and are recorded in fee income in the Consolidated Statements of Operations as they are received when a loan is successfully funded. Costs to originate loans are recognized as incurred and recorded in general and administrative expenses in the Consolidated Statements of Operations. Certain HECM and non-agency reverse mortgage loans originated or acquired by the Company include broker compensation or correspondent fees. These premiums are remitted to the mortgage broker or correspondent lender who acted as the intermediary for the reverse mortgage. Broker compensation and correspondent fees are recorded on a net basis in net fair value gains on loans and related obligations and therefore are not separately presented in the Consolidated Statements of Operations. Commercial Mortgage Loans Commercial mortgage loans held for investment primarily consist of short-term loans for real estate investors and agricultural loans for farmers. Loans Held for Sale, at Fair Value Loans held for sale, at fair value, represent mortgage loans originated by the Company and held until sold to secondary market investors. The Company primarily originates conventional GSEs, government insured (FHA), and government guaranteed (VA) residential mortgage loans (collectively "residential mortgage loans held for sale") and commercial mortgage loans to owners and investors of single and multi-family residential rental properties ("commercial loans held for sale"). The Company elected the fair value option provided for by ASC 825-10, Financial Instruments-Overall . Loans held for sale are measured at fair value at the time of origination and on a recurring basis thereafter. Gains and losses on loans held for sale are recorded in gain (loss) on sale and other income from loans held for sale, net, in the Consolidated Statements of Operations. The yield recognized includes the contractual interest income that is expected to be collected based on the stated interest rates of the loans. In connection with the Company's election to measure originated loans held for sale at fair value, any fees recognized in relation to originated loans are recognized as they are received and are included in fee income in the Consolidated Statements of Operations. Direct loan origination costs and fees are expensed when incurred and are included in general and administrative expenses in the Consolidated Statements of Operations. Residential Mortgage and Home Improvement Loans Held for Sale Residential mortgage and home improvement loans held for sale are typically warehoused for a period after origination or purchase before sale into the secondary market. Servicing rights are either released upon sale of mortgage loans in the secondary market or retained by the Company. The yield on residential mortgage loans held for sale is recorded in interest income and changes in fair value are recorded in gain (loss) on sale and other income from loans held for sale, net, in the Consolidated Statements of Operations. Commercial Loans Held for Sale Commercial loans held for sale are typically warehoused for a period after origination or purchase before sale into the secondary market. The Company estimates fair value by evaluating a variety of market indicators, including recent sales of similar product types and outstanding commitments, calculated on an aggregate basis. The yield recognized on commercial loans held for sale and changes in estimated fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. MSR, at Fair Value MSR represent contractual rights to perform specific administrative functions for the underlying loans including specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow funds for the payment of mortgage-related expenses such as taxes and insurance, and otherwise administrating the mortgage loan servicing portfolio. MSR are created through the sale of an originated mortgage loan or purchased from third parties. The unpaid principal balance ("UPB") of the loans underlying the MSR is not included in the Consolidated Statements of Financial Condition. For servicing retained in connection with the securitization of reverse mortgage loans accounted for as secured financings, an MSR is not recognized. The fair value of future servicing revenue net of servicing costs related to reverse mortgage loans is included in the fair value of the underlying loan. The Company follows the fair value measurement method to record the value of MSR in accordance with ASC 860, Transfers and Servicing . Under this method, servicing assets are measured at fair value on a recurring basis with changes in fair value recorded through earnings in the period of the change as a component of fee income in the Consolidated Statements of Operations. The fair value of the MSR is based upon the present value of the expected future net cash flows related to servicing these loans. For MSR that the Company has current commitments to sell to third parties, the fair value is based on the outstanding commitment price. The Company receives a base servicing fee based on the remaining outstanding pri |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations In 2022 and 2023, the Company reevaluated the business strategy and implemented a series of transformational actions to restructure the organization into a modern retirement solutions platform. This plan included the wind-down of the previously reported Mortgage Originations segment and sale of the previously reported Commercial Originations and Lenders Services segments. This constitutes a strategic shift that has or will have a major effect on our operations and financial results. As such, the results of our previously reported Mortgage Originations, Commercial Originations, and Lenders Services segments are reported as discontinued operations for all periods presented, in accordance with ASC 205. Mortgage Originations Segment On October 20, 2022, the Board of the Company authorized a plan to discontinue the operations of the Company’s previously reported Mortgage Originations segment, other than the Home Improvement channel. The Disposition commenced in the fourth quarter of 2022 and was completed on February 28, 2023. The operations of the Home Improvement channel are now reported as part of the Company's Retirement Solutions segment. Refer to Note 38 - Subsequent Events for additional information. Lender Services Segment On February 1, 2023, the Company's indirect subsidiary, Incenter, entered into an agreement to sell one hundred percent of (i) the issued and outstanding shares of capital stock of ANTIC, a direct subsidiary of Incenter and an indirect subsidiary of the Company, and (ii) the issued and outstanding membership interests of BNT, a direct subsidiary of Incenter and an indirect subsidiary of the Company. The closing of the ANTIC and BNT sale was completed on July 3, 2023. Refer to Note 38 - Subsequent Events for additional information. The Company has historically included the operations of ANTIC and BNT in its previously reported Lender Services operating segment. On March 30, 2023, the FoA Equity Board authorized a plan to sell assets making up the remainder of the Company's previously reported Lender Services operating segment, with the exception of its Incenter Solutions LLC operating service subsidiary. The operations of Incenter Solutions LLC are now reported as part of the Company's Corporate and Other segment. The Company sold the remainder of the assets on June 30, 2023 in two separate transactions for an aggregate consideration of $17.5 million which includes $4.8 million in cash and a $12.7 million note receivable. Refer to Note 38 - Subsequent Events for additional information. Commercial Originations Segment On February 19, 2023, the Company entered into an agreement to sell certain operational assets of FAM operating as FACo. This transaction closed on March 14, 2023. Refer to Note 38 - Subsequent Events for additional information. The Company has historically included the operations of FACo in its previously reported Commercial Originations operating segment. The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 December 31, 2021 Assets Cash and cash equivalents $ 36,212 $ 37,460 Restricted cash 311 312 Loans held for sale, at fair value 141,994 1,894,222 Derivative assets 676 24,417 Fixed assets and leasehold improvements, net 9,884 16,471 Intangible assets, net 77,436 260,727 Other assets, net 46,847 85,962 Assets of discontinued operations $ 313,360 $ 2,319,571 Liabilities Other financing lines of credit $ 127,735 $ 1,816,805 Payables and other liabilities 99,379 211,053 Liabilities of discontinued operations $ 227,114 $ 2,027,858 The following table summarizes the major components of net income (loss) from discontinued operations for the dates indicated (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Revenues Gain on sale and other income from loans held for sale, net $ 216,949 $ 528,725 $ 286,269 $ 1,168,803 Net fair value gains on loans and related obligations 14,705 50,729 5,465 15,571 Fee income 280,315 344,379 124,824 357,339 Net interest income: Interest income 41,598 41,591 12,511 41,855 Interest expense (33,088) (34,462) (11,656) (40,046) Net interest income 8,510 7,129 855 1,809 Total revenues 520,479 930,962 417,413 1,543,522 Expenses Salaries, benefits, and related expenses 456,382 601,300 208,256 753,236 Occupancy, equipment rentals, and other office related expenses 21,274 17,620 6,677 25,441 General and administrative expenses 252,733 260,305 91,149 279,736 Total expenses 730,389 879,225 306,082 1,058,413 Impairment of goodwill, intangibles, and other assets (182,981) (954,853) — — Other, net 3,839 3,458 151 — Net income (loss) from discontinued operations before income taxes (389,052) (899,658) 111,482 485,109 Provision (benefit) for income taxes from discontinued operations 608 (13,489) 1,119 2,194 Net income (loss) from discontinued operations (389,660) (886,169) 110,363 482,915 Net income (loss) attributable to noncontrolling interest from discontinued operations (263,396) (621,990) 201 1,274 CRNCI from discontinued operations — — 1,119 (4,129) Net income (loss) from discontinued operations attributable to controlling interest $ (126,264) $ (264,179) $ 109,043 $ 485,770 The Consolidated Statements of Cash Flows for the dates indicated below included the following material activities related to discontinued operations (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Gain on sale and other income from loans held for sale, net $ 221,121 $ 534,092 $ 286,447 $ 1,169,147 Unrealized fair value changes on loans, related obligations, and derivatives 14,705 50,729 5,465 15,571 Impairment of goodwill, intangibles, and other assets 182,981 954,853 — — Depreciation and amortization 22,963 19,429 2,713 10,859 Acquisition of fixed assets 5,787 7,690 2,622 6,915 |
Variable Interest Entities and
Variable Interest Entities and Securitizations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities and Securitizations | 4. Variable Interest Entities and Securitizations The Company determined that the 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 and August 2022, FAR executed its optional redemption of outstanding securitized notes related to outstanding nonperforming HECM securitizations. As part of the optional redemptions, FAR paid off notes with outstanding principal balances of $488.2 million and $337.4 million, respectively. The notes were paid off at par. As a result of the optional redemptions, FAR is no longer required to consolidate these securitization trusts, and the outstanding loans with unpaid principal balances of $506.6 million and $363.0 million, respectively, were recognized in loans held for investment, at fair value, in the Consolidated Statements of Financial Condition. 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 year ended December 31, 2022, the Successor nine months ended December 31, 2021 or the Predecessor three months ended March 31, 2021. There were $2.5 million realized losses associated with these transferred mortgage loans for the Predecessor year ended December 31, 2020. The following table presents the assets and liabilities of the Company's consolidated VIEs, which are included in the Consolidated Statements of Financial Condition, and excludes intercompany balances, except for retained bonds and beneficial interests (in thousands): December 31, 2022 December 31, 2021 ASSETS Restricted cash $ 173,714 $ 311,652 Loans held for investment, subject to nonrecourse debt, at fair value 7,340,528 6,099,607 Other assets, net 75,977 67,593 TOTAL ASSETS $ 7,590,219 $ 6,478,852 LIABILITIES Nonrecourse debt, at fair value $ 7,479,918 $ 6,088,298 Payables and other liabilities 757 428 TOTAL VIE LIABILITIES 7,480,675 6,088,726 Retained bonds and beneficial interests eliminated in consolidation (304,061) (231,229) TOTAL CONSOLIDATED LIABILITIES $ 7,176,614 $ 5,857,497 Unconsolidated VIEs FAM Hundred Acre Wood Trust 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 meet 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. FAR In December 2022, FAR securitized its interest in certain non-agency reverse mortgage loans where its beneficial interest in the securitization is limited to a 5% eligible vertical interest in the trust. The Company determined that the securitization structures meet the definition of a VIE and concluded that the Company does not hold a significant variable interest in the securitization and that the contractual role as servicer is not a variable interest. The transfer of the loans to the VIE was determined to be a sale. The Company derecognized the reverse mortgage loans and did not consolidate the trust. The Company has outstanding collateral and certificate UPB for securitization trusts for which it was the transferor and that were not consolidated of $1.1 billion as of December 31, 2022 and December 31, 2021. As of December 31, 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 December 31, 2022, the consolidated balance of the agricultural loans transferred to the VIE and the related nonrecourse liability had a fair value of $114.1 million and $106.8 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. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 5. Acquisitions The Business Combination On October 12, 2020, the Company, Replay and FoA Equity entered into the Transaction Agreement pursuant to which Replay agreed to combine with FoA Equity in a series of transactions that resulted in the Company becoming a publicly-traded company on the NYSE and controlling FoA Equity in an “UP-C” structure. At the Closing on April 1, 2021, Replay domesticated into a Delaware corporation, and the Company was formed. Following the Closing, the public investors held Class A Common Stock representing approximately a 31.3% economic interest, and BTO Urban, Blackstone Family Tactical Opportunities Investment Partnership – NQ – ESC, Family Holdings, TMO, L&TF, Management Holdings, and Joe Cayre (each of BTO Urban, ESC, Family Holdings, TMO, L&TF, Management Holdings and Continuing Unitholders retained a 68.7% economic interest in FoA Equity in the form of Class A LLC Units. Additionally, the Company issued to the Continuing Unitholders shares of Class B Common Stock, which have no economic rights but entitle each holder 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. Subsequent to the Closing, the Company controls FoA Equity as the sole appointer of the board of managers and is a holding company with no assets or operations other than its equity interest in FoA Equity. The Business Combination was accounted for using the acquisition method with the Company as the accounting acquirer. Under the acquisition method of accounting, the Company’s assets and liabilities were recorded at carrying value, and the assets and liabilities associated with FoA Equity were recorded at estimated fair value as of the Closing Date. The excess of the purchase price over the estimated fair values of the net assets acquired was recognized as goodwill. For accounting purposes, the acquirer is the entity that has obtained control of another entity and, thus, consummated a business combination. The determination of whether control has been obtained begins with the evaluation of whether control should be evaluated based on the variable interest or voting interest model. If the acquiree is a VIE, the primary beneficiary would be the accounting acquirer. FoA Equity met the definition of a VIE, and the Company was determined to be the primary beneficiary. As a result of the Business Combination, the Company’s financial statement presentation distinguishes FoA Equity as the “Predecessor” through the Closing Date. FoA is the “Successor” for periods after the Closing Date. Revenue and earnings from the date of acquisition to year end are shown as the "Successor" period in the Consolidated Statements of Operations. As a result of the application of the acquisition method of accounting in the Successor period, the consolidated financial statements for the Successor period are presented on a full step-up basis, and are therefore not comparable to the consolidated financial statements of the Predecessor period that are not presented on the same full step-up basis. The following table summarizes the fair value of consideration transferred, noncontrolling interest equity value, assets acquired, and liabilities assumed in conjunction with the Business Combination (in thousands): Consideration transferred: Total cash consideration $ 342,270 Blocker rollover equity 221,811 Seller earnout contingent consideration (1) 160,272 Tax receivable agreement obligations to the seller 31,950 Total consideration transferred 756,303 Noncontrolling interest 1,658,545 Total equity value $ 2,414,848 Assets acquired: Cash and cash equivalents $ 336,075 Restricted cash 305,292 Loans held for investment, subject to HMBS related obligations, at fair value 10,071,192 Loans held for investment, subject to nonrecourse debt, at fair value 5,291,443 Loans held for investment, at fair value 1,100,544 Loans held for sale, at fair value 2,140,361 MSR, at fair value 267,364 Fixed assets and leasehold improvements, net 26,079 Intangible assets, net (2) 717,700 Other assets, net 404,864 Total assets acquired $ 20,660,914 Liabilities assumed: HMBS related obligations, at fair value $ 9,926,131 Nonrecourse debt, at fair value 5,227,942 Other financing lines of credit 3,340,345 Payables and other liabilities 669,048 Notes payable, net 353,924 Total liabilities assumed 19,517,390 Net identifiable assets acquired 1,143,524 Goodwill (3) $ 1,271,324 (1) Represents the fair market value of earnout shares issued to Sellers, which will be settled with shares of Class A Common Stock and is accounted for as equity classified contingent consideration. (2) Intangible assets were identified that met either the separability criterion or contractual legal criterion. The indefinite-lived trade names and definite-lived trade names intangible assets represent the values of all the Company’s trade names. The broker/customer relationships intangible asset represents the existing broker/customer relationships. (3) Goodwill represents the excess of the gross consideration transferred over the fair value of the underlying net tangible and identifiable intangible assets acquired. Goodwill represents future economic benefits arising from acquiring FoA Equity, primarily due to its strong market position and its assembled workforce that are not individually identified and separately recognized as intangible assets. Approximately $85.2 million of the goodwill recognized was expected to be deductible for income tax purposes at the acquisition date. There were certain payments and transactions expenses contingent on the Closing (i.e. the change-in-control event). The Company made one-time lump sum cash payments totaling $24.0 million to the holders of Phantom Units, and had $5.0 million of transaction expenses related to the Business Combination. Given these payments and expenses were triggered by the successful Closing of the Business Combination, the $29.0 million is considered to have been incurred "on the line", i.e., these payments and expenses are not presented in either the Predecessor or Successor periods. The following unaudited pro forma financial information presents the results of operations as if the Business Combination had occurred on January 1, 2020. The unaudited pro forma results may not necessarily reflect the actual results of operations that would have been achieved nor are they necessarily indicative of future results of operations. Identifiable intangible assets Useful life Indefinite-lived trade names $ 178,000 N/A Definite-lived trade names 8,800 10 Broker/customer relationships 530,900 8-15 Total $ 717,700 For the year ended December 31, 2021 2020 Pro forma revenues $ 1,736,999 $ 1,777,444 Pro forma net (loss) income $ (1,173,481) $ 295,136 Pro forma net (loss) income attributable to controlling interest $ (344,687) $ 70,411 Pro forma net (loss) income attributable to noncontrolling interest $ (828,795) $ 224,725 Renovate America Inc. On March 26, 2021, in order to expand its product base to home improvement loans, the Company acquired certain assets and operations of Renovate America, Inc. (“RAI”) (the “RAI Transaction”). The RAI Transaction met the requirements to be considered a business combination under ASC 805. The assets purchased and liabilities assumed from the RAI Transaction have been recorded at fair market value and included in the Company’s consolidated financial statements from the date of the RAI Transaction. The Company has allocated the purchase price to the tangible and identifiable intangible assets based on their estimated fair market values at the date of the RAI Transaction as required under ASC 805. The excess of the purchase price over the fair value of the net identifiable tangible and intangible assets was recorded as goodwill. The goodwill generated by the RAI Transaction is expected to be deductible for U.S. federal income tax purposes. As a result of the RAI Transaction, for accounting purposes, FAM was deemed to be the accounting acquirer and RAI was deemed to be the accounting acquiree. The RAI Transaction was accounted for using the acquisition method of accounting and the fair value of the total purchase consideration transferred was $43.5 million, including cash and the relief of obligations owed to FAM by the DIP of RAI. There was no contingent consideration as part of the RAI Transaction. Goodwill is comprised of expected future benefits for the Company and the assembled workforce acquired in the RAI Transaction, which do not qualify as separately recognized intangible assets. Goodwill associated with the RAI Transaction was assigned to the Company’s previously reported Mortgage Originations reportable segment. The following table sets forth the fair values of the assets acquired in connection with the RAI Transaction (in thousands): Acquisition date fair value Loans held for sale, at fair value $ 35,226 Intangible assets - Technology 1,890 Goodwill 5,627 Other assets, net 753 Net assets acquired $ 43,496 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. 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 year ended December 31, 2022, nine months ended December 31, 2021, or for the Predecessor three months ended March 31, 2021 or year ended December 31, 2020. 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. Instrument Valuation techniques Classification of Fair Value Hierarchy Assets Loans held for investment, subject to HMBS related obligations (1) HECM loans - securitized into Ginnie Mae HMBS These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the loan portfolio using conditional prepayment rate ("CPR"), loss frequency and severity, borrower mortality, borrower draw, and discount rate assumptions. Level 3 Loans held for investment, subject to nonrecourse debt (1) HECM buyouts - securitized (nonperforming) These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using CPR, loss frequency, loss severity, and discount rate assumptions. Level 3 HECM buyouts - securitized (performing) These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using weighted average remaining life ("WAL"), CPR, loss severity, and discount rate assumptions. Level 3 Non-agency reverse mortgage - securitized These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using WAL, loan to value ("LTV"), CPR, loss severity, home price appreciation ("HPA"), and discount rate assumptions. Level 3 Fix & flip mortgage loans This product is valued using a discounted cash flow model utilizing prepayment rate (single monthly mortality or "SMM"), discount rate, and loss rate assumptions. Level 3 (1) The Company aggregates loan portfolios based on the underlying securitization trust and values these loans using these aggregated pools. The range of inputs provided is based on the range of inputs utilized for each securitization trust. Loans held for investment Inventory buy-outs 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 CPR, loss frequency, loss severity, and discount rate. 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. Level 3 Non-agency reverse mortgage 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 primary assumptions utilized in valuing the loans include LTV, CPR, loss severity, HPA, and discount rate. Level 3 Fix & flip mortgage loans This product is valued using a DCF model with SMM, discount rate, and loss rate assumptions. Level 3 Agricultural loans The product is valued using a DCF model with discount rate, prepayment rate, and default rate assumptions. Level 3 Loans held for sale Residential mortgage loans 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. Level 2 Single Rental Loan ("SRL") This product is valued using a DCF model utilizing CPR, discount rate, and constant default rate ("CDR") assumptions. Level 3 Portfolio loans This product is valued using a DCF model utilizing CPR, discount rate, and CDR assumptions. Level 3 Mortgage Servicing Rights MSR The Company valued MSR internally through a DCF analysis and calculated using a pricing model. This pricing model is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions such as discount rate and weighted average CPR. Level 3 Derivative assets/liabilities Loan purchase commitments ("LPCs") This product is valued based on current market prices for HMBS. Level 2 Forward MBS and TBAs This product is valued using forward dealer marks from the Company's approved counterparties, forward prices with dealers in such securities, or internally-developed third party models utilizing observable market inputs. Level 2 Interest rate swaps and futures contracts This product is valued using quoted market prices. Level 1 Other assets Retained bonds Management obtains third party valuations to assess the reasonableness of the fair value calculations provided by the internal valuation model. The primary assumptions utilized include weighted average life remaining and discount rate. Level 3 Investments 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 that 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. Level 3 Purchase Commitments - reverse mortgage loans Purchase commitments are valued based on the value of the underlying loan. These loans are valued based on an expected margin on sale of 3.00%. Level 3 Liabilities HMBS related obligations HMBS related obligations 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, as well as, 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 CPR and discount rates. Level 3 Nonrecourse debt Nonrecourse reverse mortgage loans financing liability 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 WAL, CPR, and discount rates. Level 3 Nonrecourse commercial loan financing liability The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The primary assumptions utilized include WAL, SMM, 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. Level 3 Nonrecourse MSR financing liability Consistent with the underlying MSR, fair value is derived through a DCF analysis and calculated using a pricing model. This pricing model is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions including CPR and discount rate. Level 3 Deferred purchase price liabilities Deferred purchase price liabilities These are measured using a present value of future payments utilizing discount rate assumptions. Level 3 TRA obligation The fair value 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, and a discount rate. Level 3 Warrant liability Warrants The warrants are publicly traded and are valued based on the closing market price of the applicable date of the Consolidated Statements of Financial Condition. Level 1 December 31, 2022 December 31, 2021 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Assets Loans held for investment, subject to HMBS related obligations Conditional repayment rate NM 21.9 % NM 20.8 % Loss frequency NM 4.1 % NM 4.5 % Loss severity 2.4% - 12.1% 2.7 % 3.1% - 7.7% 3.3 % Discount rate NM 5.0 % NM 2.4 % Average draw rate NM 1.1 % NM 1.1 % Loans held for investment, subject to nonrecourse debt: HECM buyouts - securitized (nonperforming) Conditional repayment rate NM 39.2 % NM 41.2 % Loss frequency 23.1% - 100.0% 51.7 % 25.0% - 100% 59.5 % Loss severity 2.4% - 12.1% 5.2 % 3.1% - 7.7% 4.3 % Discount rate NM 8.7 % NM 4.1 % HECM buyouts - securitized (performing) WAL (in years) NM 8.0 NM 9.0 Conditional repayment rate NM 15.2 % NM 13.3 % Loss severity 2.4% - 12.1% 4.8 % 3.1% - 7.7% 7.7 % Discount rate NM 8.2 % NM 3.7 % December 31, 2022 December 31, 2021 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Non-agency reverse mortgage loans - securitized WAL (in years) NM 9.7 NM 7.5 LTV 0.0% - 74.7% 43.1 % 0.1% - 64.7% 43.4 % Conditional repayment rate NM 14.3 % NM 18.6 % Loss severity NM 10.0 % NM 10.0 % HPA (10.1)% - 7.3% 3.8 % (4.6)% - 14% 4.7 % Discount rate NM 7.1 % NM 3.6 % Fix & flip mortgage loans - securitized Prepayment rate (SMM) NM 11.2 % NM 14.1 % Discount rate NM 17.5 % NM 5.7 % Loss rate NM 0.5 % NM 0.6 % Loans held for investment: Inventory buy-outs Conditional repayment rate NM 41.3 % NM 43.2 % Loss frequency NM 47.6 % NM 59.4 % Loss severity 2.4% - 12.1% 5.6 % 3.1% - 7.7% 3.8 % Discount rate NM 8.7 % NM 4.1 % Non-agency reverse mortgage loans WAL (in years) NM 12.0 NM 9.2 LTV 0.1% - 67.9% 36.4 % 0.2% - 68.7% 47.8 % Conditional repayment rate NM 13.8 % NM 14.8 % Loss severity NM 10.0 % NM 10.0 % HPA (10.1)% - 7.3% 3.6 % (4.6)% - 14.0% 4.4 % Discount rate NM 7.1 % NM 3.6 % Fix & flip mortgage loans Prepayment rate (SMM) NM 9.5 % NM 11.9 % Discount rate 16.3% - 25.8% 16.6 % 5.7% - 10.0% 5.9 % Loss rate NM 0.2 % NM 0.4 % Agricultural loans Discount rate NM 9.7 % NM 4.8 % Prepayment rate (SMM) 11.0% - 100.0% 11.8 % 9.0% - 100.0% 22.1 % Default rate (CDR) 0.0% - 1.0% 0.9 % 0.0% - 0.9% 0.9 % Loans held for sale: SRL Prepayment rate (CPR) 18.5% - 25.0% 19.7 % 1.0% - 17.1% 14.2 % Discount rate NM 8.3 % NM 3.3 % Default rate (CDR) NM 1.0 % 1.0% - 57.2% 2.2 % Portfolio loans Prepayment rate (CPR) 0.0% - 24.3% 18.4 % 0.0% - 14.5% 8.7 % Discount rate NM 10.9 % NM 3.9 % December 31, 2022 December 31, 2021 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Default rate (CDR) NM 1.0 % 1.0% - 54.0% 3.2 % Mortgage Servicing Rights Weighted average prepayment speed (CPR) 1.0% - 8.5% 6.4 % 0.0% - 12.8% 8.3 % Discount rate NM 10.1 % NM 8.5 % Other assets: Retained bonds WAL (in years) 2.4 - 24.1 4.9 2.6 - 25.0 5.1 Discount rate (16.8)% - 12.2% 6.9 % 1.9% - 8.2% 2.7 % Liabilities HMBS related obligations Conditional repayment rate NM 21.8 % NM 20.8 % Discount rate NM 5.0 % NM 2.3 % Nonrecourse debt: Reverse mortgage loans Performing/Nonperforming HECM securitizations WAL (in years) 1.5 - 1.6 1.6 0.2 - 0.8 0.5 Conditional repayment rate 19.9% - 22.2% 21.1 % 30.8% - 54.4% 43.5 % Discount rate NM 8.6 % NM 2.3 % Securitized non-agency reverse WAL (in years) 0.2 - 11.7 6.4 1.0 - 2.3 1.6 Conditional repayment rate 8.3% - 46.1% 16.5 % 18.4% - 35.9% 28.2 % Discount rate NM 7.2 % NM 2.2 % Nonrecourse commercial loan financing liability WAL (in months) NM 4.3 NM 4.0 Weighted average prepayment speed (SMM) NM 15.3 % NM 14.0 % Discount rate NM 14.5 % NM 3.1 % Nonrecourse MSR financing liability Weighted average prepayment speed (CPR) 0.8% - 9.2% 5.1 % 2.0% - 11.0% 7.7 % Discount rate 10.0% - 12.0% 10.2 % 8.1% - 10.1% 9.1 % Deferred purchase price liabilities Deferred purchase price liabilities Discount rate NM 8.0 % NM 35.0% TRA obligation Discount rate NM 48.3 % NM 13.5 % 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): December 31, 2022 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 11,114,100 $ — $ — $ 11,114,100 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 7,065,477 — — 7,065,477 Fix & flip mortgage loans 389,161 — — 389,161 Loans held for investment: Reverse mortgage loans 771,724 — — 771,724 Fix & flip mortgage loans 127,469 — — 127,469 Agricultural loans 8,805 — — 8,805 Loans held for sale: Residential mortgage loans 12,123 — 12,123 — SRL 69,187 — — 69,187 Portfolio 43,272 — — 43,272 Fix and flip 49,402 — — 49,402 MSR 95,096 — — 95,096 Derivative assets: LPCs, forward MBS, and TBAs 907 — 907 — Interest rate swaps and futures contracts 771 771 — — Other assets: Purchase commitments - reverse mortgage loans 9,356 — — 9,356 Retained bonds 46,439 — — 46,439 Total assets $ 19,803,289 $ 771 $ 13,030 $ 19,789,488 Liabilities HMBS related obligations $ 10,996,755 $ — $ — $ 10,996,755 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,175,857 — — 7,175,857 Nonrecourse commercial loan financing liability 106,758 — — 106,758 Nonrecourse MSR financing liability 60,562 — — 60,562 Deferred purchase price liabilities: Deferred purchase price liabilities 137 — — 137 TRA obligation 3,781 — — 3,781 Derivative liabilities: Interest rate swaps and futures contracts 385 385 — — Warrant liability 1,117 1,117 — — Total liabilities $ 18,345,352 $ 1,502 $ — $ 18,343,850 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 8,730 — 8,730 — SRL 98,852 — — 98,852 Portfolio 50,574 — — 50,574 MSR 427,942 — — 427,942 Derivative assets: LPCs, forward MBS, and TBAs 1,619 — 1,619 — 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 $ 18,477,741 $ 22,834 $ 10,349 $ 18,444,558 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 137 — — 137 TRA obligation 29,380 — — 29,380 Derivative liabilities: Forward MBS and TBAs 56 — 56 — Interest rate swaps and futures contracts 24,993 24,993 — — Warrant liability 5,497 5,497 — — Total liabilities $ 16,593,663 $ 30,490 $ 56 $ 16,563,117 Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3, in thousands): Successor Assets Year ended December 31, 2022 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Retained bonds Purchase commitments Investments Beginning balance $ 11,587,382 $ 6,218,194 $ 149,426 $ 427,942 $ 55,614 $ — $ 6,000 Total gain or losses included in earnings 190,714 (744,123) (15,213) 22,989 (8,668) 9,356 (6,000) Purchases, settlements, and transfers: Purchases and additions, net 6,165,003 117,010 1,119,578 122,362 — — — Sales and settlements (2,178,245) (1,847,648) (1,103,492) (478,197) (507) — — Transfers in/(out) between categories (3,742,756) 3,711,205 11,562 — — — — Ending balance $ 12,022,098 $ 7,454,638 $ 161,861 $ 95,096 $ 46,439 $ 9,356 $ — Successor Liabilities Year ended December 31, 2022 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability TRA Liability Beginning balance $ (10,422,358) $ (5,857,069) $ (111,738) $ (142,435) $ (29,380) Total gain or losses included in earnings (29,015) 316,963 2,527 (8,162) 25,599 Purchases, settlements, and transfers: Purchases and additions, net (2,870,650) (3,202,519) (205,746) (14,196) — Settlements 2,325,268 1,566,768 208,199 104,231 — Ending balance $ (10,996,755) $ (7,175,857) $ (106,758) $ (60,562) $ (3,781) Successor Assets Nine months ended December 31, 2021 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Retained Bonds Investments Beginning balance $ 11,171,736 $ 5,291,444 $ 118,396 $ 267,364 $ — $ 9,470 Total gain or losses included in earnings 272,802 71,126 532 (15,200) 1,344 (3,470) Purchases, settlements, and transfers: Purchases and additions, net 4,438,629 80,542 879,172 178,279 54,752 — Sales and settlements (2,235,651) (1,275,674) (857,503) (2,501) (482) — Transfers in/(out) between categories (2,060,134) 2,050,756 8,829 — — — Ending balance $ 11,587,382 $ 6,218,194 $ 149,426 $ 427,942 $ 55,614 $ 6,000 Successor Liabilities Nine months ended December 31, 2021 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability TRA Liability Beginning balance $ (9,926,132) $ (5,205,892) $ — $ (22,051) $ — Total gain or losses included in earnings 62,306 (74,333) 1,019 (2,998) 2,570 Purchases, settlements, and transfers: Purchases and additions, net (2,491,919) (1,813,458) (176,863) (117,386) (31,950) Settlements 1,933,387 1,236,614 64,106 — — Ending balance $ (10,422,358) $ (5,857,069) $ (111,738) $ (142,435) $ (29,380) Predecessor Assets Three months ended March 31, 2021 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Investments Beginning balance $ 10,659,984 $ 5,396,167 $ 142,226 $ 180,684 $ 18,934 Total gain or losses included in earnings 132,499 (37,757) 2,316 20,349 (9,464) Purchases, settlements, and transfers: Purchases and additions, net 1,143,109 21,064 164,450 74,978 — Sales and settlements (534,738) (360,128) (147,687) (8,647) — Transfers in/(out) between categories (229,118) 272,098 (42,909) — — Ending balance $ 11,171,736 $ 5,291,444 $ 118,396 $ 267,364 $ 9,470 Predecessor Liabilities Three months ended March 31, 2021 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse MSR financing liability Beginning balance $ (9,788,668) $ (5,257,754) $ (14,088) Total gain or losses included in earnings (41,434) (30,770) 390 Purchases, settlements, and transfers: Purchases and additions, net (602,172) (575,668) (8,353) Settlements 506,142 658,300 — Ending balance $ (9,926,132) $ (5,205,892) $ (22,051) Predecessor Assets For the year ended December 31, 2020 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Debt Securities Investments Beginning balance $ 10,894,577 $ 3,511,212 $ 164,830 $ 2,600 $ 102,260 $ 20,508 Total gain or losses included in earnings 627,251 304,663 (992) 4,562 2,288 (5,512) Purchases, settlements, and transfers: Purchases and additions, net 3,616,667 136,838 348,951 173,522 24,489 3,938 Sales and settlements (1,536,977) (1,285,902) (554,141) — (129,037) — Transfers in/(out) between categories (2,941,534) 2,729,356 183,578 — — — Ending balance $ 10,659,984 $ 5,396,167 $ 142,226 $ 180,684 $ — $ 18,934 Predecessor Liability For the year ended December 31, 2020 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse MSR financing liability Beginning balance $ (9,320,209) $ (3,490,196) $ — Total gain or losses included in earnings (359,951) (294,802) 798 Purchases, settlements, and transfers: Purchases and additions, net (2,051,953) (3,110,368) (15,101) Settlements 1,943,445 1,637,612 215 Ending balance $ (9,788,668) $ (5,257,754) $ (14,088) Fair Value Option The Company has elected to measure substantially all of its loans held for investment, loans held for sale, HMBS related obligations, and non-recourse debt at fair value under the fair value option provided for by ASC 825-10, Financial Instruments-Overall. The Company elected to apply the provisions of the fair value option to these assets and liabilities in order to align financial reporting presentation with the Company's operational and risk management strategies. Presented in the tables below are the fair value and UPB, at December 31, 2022 and December 31, 2021, of financial assets and liabilities for which the Company has elected the fair value option (in thousands): December 31, 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 $ 11,114,100 $ 10,719,000 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 7,065,477 7,240,125 Commercial mortgage loans 389,161 405,970 Loans held for investment: Reverse mortgage loans 771,724 724,800 Commercial mortgage loans 136,274 143,373 Loans held for sale: Residential mortgage loans 12,123 15,529 Commercial mortgage loans 161,861 173,112 Other assets: Purchase commitments - reverse mortgage loans 9,356 9,356 Liabilities at fair value under the fair value option HMBS related obligations 10,996,755 10,719,000 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,175,857 7,819,992 Nonrecourse MSR financing liability 60,562 60,562 Nonrecourse commercial loan financing liability 106,758 105,291 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 8,730 9,709 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 Net fair value gains on loans and related obligations Provided in the table below is a summary of the components of net fair value gains on loans and related obligations (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Net fair value gains on loans and related obligations: Interest income on reverse and commercial loans $ 857,271 $ 495,163 $ 160,568 $ 709,679 Change in fair value of loans (1,380,503) (159,589) (56,811) 281,105 Net fair value gains (losses) on loans (523,232) 335,574 103,757 990,784 Interest expense on HMBS and nonrecourse obligations (560,316) (329,344) (119,201) (526,690) Change in fair value of derivatives 332,630 (28,233) 43,972 (12,482) Change in fair value of related obligations 840,407 313,024 42,670 (155,485) Net fair value gains (losses) on related obligations 612,721 (44,553) (32,559) (694,657) Net fair value gains on loans and related obligations $ 89,489 $ 291,021 $ 71,198 $ 296,127 As the cash flows on the underlying mortgage loans will be utilized to settle the outstanding obligations, the Company's own credit risk would not impact the fair value on the outstanding HMBS liabilities and nonrecourse debt. Fair Value of Other Financial Instruments As of December 31, 2022 and December 31, 2021, all financial instruments were either recorded at fair value or the carrying value approximated fair value with the exception of notes payable, ne t, and promissory notes receivable. Notes payable, net, includes our senior secured high-yield debt and related-party credit line recorded at the carrying value of $399.4 million and $353.4 million as of December 31, 2022 and December 31, 2021, respectively, and have a fair value of $231.9 million and $347.0 million as of December 31, 2022 and December 31, 2021, respectively. The fair value for Notes payable, net, was determined using quoted market prices adjusted for accrued interest, which is considered to be a Level 2 input. Promissory notes receivable are recorded at the net carrying value of $0 and $4.1 million, including accrued interest, as of December 31, 2022 and December 31, 2021, respectively. The carrying value approximates fair value. The fair value for promissory notes receivable was determined using a DCF model using discount rate assumptions which is considered to be a Level 3 input. For other financial instruments that were not recorded at fair value, such as cash and cash equivalents including restricted cash, servicer advances, and other financing lines of credit, the carrying value approximates fair value due to the short-term nature of such instruments. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 3 inputs, with the exception of cash and cash equivalents, including restricted cash, which are Level 1 inputs. |
Reverse Mortgages Portfolio Com
Reverse Mortgages Portfolio Composition | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Reverse Mortgage Portfolio Composition | 7. Reverse Mortgage Portfolio Composition The table below summarizes the composition and the outstanding UPB (in thousands) of the reverse mortgage loan portfolio serviced by the Company: December 31, 2022 December 31, 2021 Reverse mortgage loans: Reverse mortgage loans held for investment, subject to HMBS related obligations $ 10,719,000 $ 9,849,835 Reverse mortgage loans held for investment: Non-agency reverse mortgages 489,038 432,144 Loans not securitized (1) 88,029 266,723 Unpoolable loans (2) 136,657 104,551 Unpoolable tails 11,076 12,008 Total reverse mortgage loans held for investment 724,800 815,426 Reverse mortgage loans held for investment, subject to nonrecourse debt: Performing HECM buyouts 328,845 289,089 Nonperforming HECM buyouts 541,071 590,729 Non-agency reverse mortgages 6,370,209 4,285,661 Total reverse mortgage loans held for investment, subject to nonrecourse debt 7,240,125 5,165,479 Total owned reverse mortgage portfolio 18,683,925 15,830,740 Loans reclassified as government guaranteed receivable 76,033 48,625 Loans serviced for others 81,436 17,840 Total serviced reverse mortgage loan portfolio $ 18,841,394 $ 15,897,205 (1) Loans not securitized represent primarily newly originated loans and poolable tails. (2) Unpoolable loans represent primarily loans that have reached 98% of their MCA. The table below summarizes the reverse mortgage portfolio owned by the Company by product type (in thousands): December 31, 2022 December 31, 2021 Fixed rate loans $ 6,548,902 $ 5,384,865 Adjustable rate loans 12,135,023 10,445,875 Total owned reverse mortgage portfolio $ 18,683,925 $ 15,830,740 As of December 31, 2022 and December 31, 2021, th ere were $489.3 million and $599.1 million, |
Loans Held for Investment, Subj
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value | 8. 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): December 31, 2022 December 31, 2021 Loans held for investment, subject to HMBS related obligations - UPB $ 10,719,000 $ 9,849,835 Fair value adjustments 395,100 706,219 Total loans held for investment, subject to HMBS related obligations, at fair value $ 11,114,100 $ 10,556,054 |
Loans Held for Investment, Su_2
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value | 9. 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): December 31, 2022 December 31, 2021 Loans held for investment, subject to nonrecourse debt - UPB: Reverse mortgage loans $ 7,240,125 $ 5,165,479 Commercial mortgage loans 405,970 388,788 Fair value adjustments (191,457) 663,927 Total loans held for investment, subject to nonrecourse debt, at fair value $ 7,454,638 $ 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): December 31, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual status Fair value: Commercial mortgage loans $ 21,325 $ 26,081 Aggregate UPB: Commercial mortgage loans 24,023 26,472 Difference $ (2,698) $ (391) |
Loans Held for Investment, at F
Loans Held for Investment, at Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans Held for Investment, at Fair Value | 10. Loans Held for Investment, at Fair Value Loans held for investment, at fair value, consisted of the following for the dates indicated (in thousands): December 31, 2022 December 31, 2021 Loans held for investment - UPB: Reverse mortgage loans $ 724,800 $ 815,426 Commercial mortgage loans 143,373 89,267 Fair value adjustments 39,825 126,635 Total loans held for investment, at fair value $ 907,998 $ 1,031,328 As of December 31, 2022 and December 31, 2021, th ere were $2.4 million and $2.3 million, respectively, of commercial loans that were greater than 90 days past due. |
Loans Held for Sale, at Fair Va
Loans Held for Sale, at Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans Held for Sale At Fair Value | 11. Loans Held for Sale, at Fair Value Loans held for sale, at fair value, consisted of the following for the dates indicated (in thousands): December 31, 2022 December 31, 2021 Loans held for sale - UPB: Residential mortgage and home improvement loans $ 15,529 $ 9,709 Commercial mortgage loans 173,112 145,463 Fair value adjustments (14,657) 2,984 Total loans held for sale, at fair value $ 173,984 $ 158,156 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): December 31, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual status Fair value: Residential mortgage and home improvement loans $ 2,736 $ 616 Commercial mortgage loans 2,817 3,163 Total fair value 5,553 3,779 Aggregate UPB: Residential mortgage loans 2,136 554 Commercial mortgage loans 3,405 3,323 Total aggregate UPB 5,541 3,877 Difference $ 12 $ (98) 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 year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Beginning balance $ 158,156 $ 118,397 $ 142,226 $ 98,409 Originations/purchases/repurchases 1,119,578 879,197 164,451 351,521 Proceeds from sales (1,088,472) (935,598) (152,659) (566,909) Loans acquired through business combinations — 8,731 — — Net transfers from loans held for investment — 8,828 — 249,999 Gain on loans held for sale, net (65) 95,711 (37,518) 10,198 Net fair value gain (loss) on loans held for sale (15,213) (17,110) 1,897 (992) Ending balance $ 173,984 $ 158,156 $ 118,397 $ 142,226 As of December 31, 2022 and December 31, 2021, there were $186.0 million and $144.2 million, 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 | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights, at Fair Value | 12. Mortgage Servicing Rights, at Fair Value The servicing portfolio associated with capitalized servicing rights consists of the following (in thousands): December 31, 2022 December 31, 2021 Fannie Mae/Freddie Mac $ 7,051,851 $ 37,079,995 Ginnie Mae 532,328 1,109,962 Private investors 1,018,159 1,109,459 Total UPB $ 8,602,338 $ 39,299,416 Weighted average interest rate 3.59 % 3.03 % The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Beginning UPB $ 39,299,416 $ 26,675,358 $ 22,269,362 $ 288,057 Originated MSR 10,098,259 17,491,713 6,312,227 21,241,997 Purchased MSR — 234,007 866,806 1,966,657 Sales MSR (38,233,148) (320,027) (1,090,267) (527) Payoffs MSR (1,671,774) (3,935,261) (1,488,977) (991,716) Other (890,415) (846,374) (193,793) (235,106) Ending UPB $ 8,602,338 $ 39,299,416 $ 26,675,358 $ 22,269,362 The activity in the MSR asset consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Beginning balance $ 427,942 $ 267,364 $ 180,684 $ 2,600 Originations 122,362 161,364 65,964 159,434 Purchases — 16,915 9,014 14,088 Sales (478,197) (2,501) (8,647) — Changes in fair value due to: Changes in market inputs or assumptions used in valuation model 51,309 26,950 35,109 14,817 Changes in fair value due to portfolio runoff and other (28,320) (42,150) (14,760) (10,255) Ending balance $ 95,096 $ 427,942 $ 267,364 $ 180,684 The value of MSR 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 for Successor periods were $35.0 million and $43.4 million for the year ended December 31, 2022 and nine months ended December 31, 2021, respectively. Fees for Predecessor periods were $13.0 million and $18.1 million for January 1, 2021 to March 31, 2021 and the year ended December 31, 2020, respectively. These fees and changes in fair value of the MSR are recorded within fee income The following table summarizes the estimated change in the fair value of MSR from adverse changes in the significant assumptions (in thousands): December 31, 2022 Weighted Average Prepayment Speed Discount Rate Impact on fair value of 10% adverse change $ (2,677) $ (4,258) Impact on fair value of 20% adverse change $ (5,178) $ (8,155) 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. 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: December 31, 2022 December 31, 2021 Number of Loans Unpaid Principal Balance Number of Loans Unpaid Principal Balance Portfolio delinquency 30 days 1.2 % 1.1 % 0.4 % 0.3 % 60 days 0.3 % 0.2 % 0.1 % 0.0 % 90 or more days 0.6 % 0.5 % 0.1 % 0.1 % Total 2.1 % 1.8 % 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 | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Risk Management Activities | 13. 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 the Secured Overnight Financing Rate ("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 December 31, 2022 or December 31, 2021. The following tables summarize the fair value and notional amount of derivative instruments (in thousands): December 31, 2022 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount LPCs $ 23 $ 1,701 $ — $ — Forward MBS and TBAs 884 63,600 — — Interest rate swaps and futures contracts 771 261,300 385 244,100 Total fair value and notional amount $ 1,678 $ 326,601 $ 385 $ 244,100 December 31, 2021 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount LPCs $ 1,564 $ 47,300 $ — $ — Forward MBS and TBAs 55 304,000 56 104,000 Interest rate swaps and futures contracts 22,834 11,977,300 24,993 12,193,100 Total fair value and notional amount $ 24,453 $ 12,328,600 $ 25,049 $ 12,297,100 The follow table details the gains/(losses) on derivative instruments (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Derivative activity Successor Predecessor LPCs $ (1,541) $ 700 $ 389 $ (364) Forward MBS and TBAs 62,114 111 — (1,254) Interest rate swaps and futures contracts 282,721 (29,483) 43,935 (8,487) 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 | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets and Leasehold Improvements, Net | 14. Fixed Assets and Leasehold Improvements, Net Fixed assets and leasehold improvements, net, related to continuing operations consisted of the following (in thousands): December 31, 2022 December 31, 2021 Estimated Useful Life Computer hardware and software $ 7,647 $ 7,424 3 - 5 years Furniture and fixtures 3,574 3,097 5 - 7 years Leasehold improvements 3,870 3,296 * Total fixed assets 15,091 13,817 Less: Accumulated depreciation and amortization (5,960) (1,032) Total fixed assets and leasehold improvements, net $ 9,131 $ 12,785 *Shorter of life of lease or useful life of assets The depreciation and amortization expense for the Successor periods was $4.2 million and $3.3 million for the year ended December 31, 2022 and for the nine months ended December 31, 2021, respectively. The depreciation and amortization expense for the Predecessor periods was $0.8 million and $3.0 million for the three months ended March 31, 2021 and for the year ended December 31, 2020, respectively. Depreciation and amortization expense is recorded in general and administrative expenses in the 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 and responded by implementing cost-cutting measures. As the length and magnitude of the downturn in mortgage demand continued into the second half of 2022, including increasingly compressed margins and longer expected duration of such market pressures, the Company's current and expected future operating losses indicated that some fixed assets and leasehold improvements may not be recoverable and an impairment analysis was performed . Based on the analysis, the Company wrote off certain assets and recognized an impairment charge of $2.2 million for the fixed assets and leasehold improvements in the year ended December 31, 2022 , which is recorded in impairment of goodwill, intangibles, and other assets in the Consolidated Statements of Operations. There were no fixed assets and leasehold improvements impairments in the Successor nine months ended December 31, 2021 or in the Predecessor three months ended March 31, 2021 and the year ended December 31, 2020. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | 15. Goodwill and Intangible Assets, Net Goodwill, related to continuing operations, consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ — $ — $ 8,444 Additions from acquisitions — 413,977 5,627 Impairment — (413,977) — Ending balance $ — $ — $ 14,071 For the nine months ended December 31, 2021 , the Company recognized impairment to goodwill of $414.0 million. This impairment was recognized in impairment of goodwill, intangibles, and other assets in the Consolidated Statements of Operations. The Company did not identify any goodwill impairment for the Predecessor three months ended March 31, 2021 or the year ended December 31, 2020. Intangible assets, net, related to continuing operations consisted of the following (in thousands): December 31, 2022 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 34,800 $ — $ (7,300) $ 27,500 Amortizing intangibles Broker/customer relationships 9 334,700 (65,081) — 269,619 Total intangibles $ 369,500 $ (65,081) $ (7,300) $ 297,119 December 31, 2021 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 46,600 $ — $ (11,800) $ 34,800 Amortizing intangibles Broker/customer relationships 9 334,700 (27,327) — 307,373 Total intangibles $ 381,300 $ (27,327) $ (11,800) $ 342,173 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. During the first half of 2022, the Company observed that inflationary measures began to rise, reducing the demand for mortgage products and responded by implementing cost-cutting 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 impairment analysis was triggered as of September 30, 2022. I n addition, the Company performed its annual impairment testing in the fourth quarter of 2022. 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. These valuations resulted in a Level 3 nonrecurring fair value measurement. Based on the analyses, the Company recognized an indefinite-lived intangible asset impairment of $3.8 million as of September 30, 2022 and an additional impairment of $3.5 million during the fourth quarter of 2022, totaling $7.3 million for the year ended December 31, 2022 . The impairment was recognized in impairment of goodwill, intangibles, and other assets $3.8 million at the Portfolio Management reporting unit, and $3.5 million at the Retirement Solutions reporting unit. The Company recognized an indefinite-lived intangible asset impairment of $11.8 million in the Successor nine months ended December 31, 2021. There was no indefinite-lived intangible asset impairment in the Predecessor three months ended March 31, 2021 or the year ended December 31, 2020. Amortization expense for the Successor periods was $37.8 million and $27.3 million for the year ended December 31, 2022 and for the nine months ended December 31, 2021, respectively. There was no amortization expense for the Predecessor periods. The estimated amortization expense for each of the five succeeding fiscal years and thereafter as of December 31, 2022 is as follows (in thousands): Year Ending December 31, Amount 2023 $ 37,189 2024 37,189 2025 37,189 2026 37,189 2027 37,189 Thereafter 83,674 Total future amortization expense $ 269,619 |
Other Assets, Net
Other Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets, Net | 16. Other Assets, Net Other assets, net, related to continuing operations, consisted of the following (in thousands): December 31, 2022 December 31, 2021 Government guaranteed receivables $ 66,947 $ 46,958 Receivables, net of allowance of $5,173 and $0, respectively (1) 53,261 27,825 Retained bonds, at fair value 46,439 55,614 Right-of-use assets (Note 21 - Leases) 27,933 30,684 Loans subject to repurchase from Ginnie Mae 15,631 7,956 Prepaid expenses 10,646 15,732 Servicer advances, net of allowance of $2,416 and $2,115, respectively 7,107 10,552 Margin deposits (Note 13 - Derivative and Risk Management Activities) 4,065 22,787 Deposits 1,191 1,154 Investments 300 6,000 Receivable from clearing organization — 2,038 Other 31,118 45,121 Total other assets, net $ 264,638 $ 272,421 |
HMBS Related Obligations, at Fa
HMBS Related Obligations, at Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
HMBS Related Obligations, at Fair Value | 17. HMBS Related Obligations, at Fair Value HMBS related obligations, at fair value, consisted of the following (in thousands): December 31, 2022 December 31, 2021 Ginnie Mae loan pools - UPB $ 10,719,000 $ 9,849,835 Fair value adjustments 277,755 572,523 Total HMBS related obligations, at fair value $ 10,996,755 $ 10,422,358 Weighted average remaining life (in years) 4.0 4.6 Weighted average interest rate 5.0 % 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 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 2,004 |
Nonrecourse Debt, at Fair Value
Nonrecourse Debt, at Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Nonrecourse Debt At Fair Value | 18. 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 December 31, 2022 December 31, 2021 Securitization of performing / nonperforming HECM loans July 2020 - August 2022 July 2030 - August 2032 0.88% - 9.32% $ 2,250,554 $ 953,336 $ 922,970 Securitization of non-agency reverse loans May 2018 - December 2022 March 2050 - November 2069 1.75% - 4.50% 8,363,562 6,598,145 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 7,819,992 5,821,684 Nonrecourse MSR financing liability, at fair value (1) 60,562 142,435 Nonrecourse commercial loan financing liability (2) 105,291 107,744 Fair value adjustments (642,668) 39,379 Total nonrecourse debt, at fair value $ 7,343,177 $ 6,111,242 (1) As of December 31, 2021, the financing liability is due to a related-party. Refer to Note 33 - Related-Party Transactions for additional information regarding the financing liability due to a related-party. (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 4 - 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 December 31, 2022, estimated maturities for nonrecourse debt for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Estimated Maturities 2023 $ 1,685,944 2024 2,248,967 2025 884,036 2026 359,841 2027 2,746,495 Thereafter — Nonrecourse MSR financing liability (1) 60,562 Total payments on nonrecourse debt $ 7,985,845 (1) |
Other Financing Lines of Credit
Other Financing Lines of Credit | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Other Financing Lines Of Credit | 19. Other Financing Lines of Credit Mortgage facilities The warehouse facility is structured as a master repurchase agreement under which ownership of the related eligible loans is temporarily transferred to the lender. When mortgage facilities are drawn on, the Company generally must transfer and pledge eli gible loans to the lender and comply with various financial and other covenants. For facilities that have a maturity date, they expire at various times during 2023 through 2026. Under the facilities, loans are generally transferred at an advance rate less than the principal balance or fair value of the loans, which serves as the primary credit enhancement for the lender. Three of the lines of credit are also guaranteed by FAH, a wholly-owned subsidiary and the parent holding company to the mortgage business. Since the advances are generally for less than 100% of the principal balance of the loans, working capital is required to fund the remaining portion of the principal balance of the loans. The amount of the advance that is provided under the warehouse facility ranges from 45% to 70% of the market value or principal balance of the loans. Upon expiration, the facility will either be closed or combined with other facilities. Reverse mortgage facilities These facilities are generally structured as master repurchase agreements under which ownership of the related eligible loans is temporarily transferred to a lender or as participation arrangements pursuant to which the lender acquires a participation interest in the related eligible loans. The funds advanced are generally repaid using the proceeds from the sale or securitization of the loans to, or pursuant to, programs sponsored by Ginnie Mae or to private secondary market investors, although prior payment may be required based on, among other things, certain breaches of representations and warranties or other events of default. When these facilities are drawn on, the Company generally must transfer and pledge eligible loans to the lender and comply with various financial and other covenants. The facilities expire at various times during 2023 through 2027. Under the facilities, loans are generally transferred at an advance rate less than the principal balance or fair value of the loans, which serves as the primary credit enhancement for the lender. Six of the lines of credit are also guaranteed by FAH, a wholly-owned subsidiary and the parent holding company to the reverse mortgage business. Since the advances are generally for less than 100% of the principal balance of the loans, working capital is required to fund the remaining portion of the principal balance of the loans. The amount of the advance that is provided under the various warehouse facilities ranges from 30% to 104% of the market value or principal ba lance of the loans. Upon expiration, management believes it will either renew its existing facilities or obtain sufficient additional lines of credit. Commercial loan facilities These facilities are either structured as master repurchase agreements under which ownership of the related eligible loans is temporarily transferred to a lender or are collateralized by first or second lien loans or crop loans. The funds advanced are generally repaid using the proceeds from the sale or securitization of the loans to private secondary market investors, although prior payment may be required based on, among other things, certain breaches of representations and warranties or other events of default. When these facilities are drawn on, the Company generally must transfer and pledge eligible loan collateral and comply with various financial and other covenants. The facilities expire at various times during 2023 and 2024. Under the facilities, loans are generally transferred at an advance rate less than the principal balance or fair value of the loans, which serves as the primary credit enhancement for the lender. Five of the lines of credit are also guaranteed by FAH, a wholly-owned subsidiary and the parent holding company to the commercial lending business. Since the advances are generally for less than 100% of the principal balance of the loans, working capital is required to fund the remaining portion of the principal balance of the loans. The amount of the advance that is provided under the various warehouse facilities generally ranges from 70% to 90% of the market value or principal balance of the l oans. Upon expiration, the facilities will either be closed or combined with other facilities. The following summarizes the components of other financing lines of credit related to continuing operations (in thousands): Outstanding borrowings at Maturity Date Interest Rate Collateral Pledged Total Capacity (1) December 31, 2022 December 31, 2021 Mortgage Lines: October 2023 Bloomberg short-term bank yield index + applicable margin First Lien Mortgages $ 311,673 $ 83,814 $ — November 2023 SOFR + applicable margin Home Improvement Consumer Loans 50,000 7,495 5,107 March 2026 Ameribor + applicable margin MSR 15,600 10,312 138,524 N/A Bond accrual rate + applicable margin Mortgage Related Assets 37,604 37,604 36,102 Subtotal mortgage lines of credit $ 414,877 $ 139,225 $ 179,733 Reverse Lines: April 2023 - November 2023 LIBOR/SOFR + applicable margin First Lien Mortgages $ 1,375,000 $ 584,658 $ 714,013 N/A LIBOR/Bond accrual rate + applicable margin Mortgage Related Assets 320,715 320,715 297,893 October 2027 SOFR + applicable margin MSR 70,000 33,036 78,952 May 2023 Prime + .50%; 6% floor Unsecuritized Tails 50,000 45,001 38,544 Subtotal reverse lines of credit $ 1,815,715 $ 983,410 $ 1,129,402 Commercial Lines: August 2023 2.50% / 3.25% Encumbered Agricultural Loans $ 75,000 $ 7,561 $ 25,127 April 2023 - November 2023 LIBOR/SOFR/Ameribor + applicable margin First Lien Mortgages 191,040 159,938 167,159 February 2023 15% Second Lien Mortgages 25,000 25,000 24,175 January 2024 SOFR + applicable margin Mortgage Related Assets 12,500 12,500 5,041 Subtotal commercial lines of credit $ 303,540 $ 204,999 $ 221,502 Total other financing lines of credit $ 2,534,132 $ 1,327,634 $ 1,530,637 (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 December 31, 2022. As of December 31, 2022 and December 31, 2021, the weighted average outstanding interest rates on outstanding financing lines of credit of the Company were 7.35% and 3.77%, 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 December 31, 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 December 31, 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 December 31, 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 December 31, 2022 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 100,000 $ 100,907 $ 907 Liquidity 20,000 23,368 3,368 Leverage Ratio 13:1 9.30:1 28,732 FAR Adjusted Tangible Net Worth (2) $ 250,000 $ 267,067 $ 17,067 Liquidity 24,724 28,718 3,994 Leverage Ratio 6:1 5.29:1 31,808 FAH Adjusted Tangible Net Worth (2) $ 300,000 $ 310,850 $ 10,850 Liquidity 45,000 52,270 7,270 Leverage Ratio 10:1 6.55:1 107,292 (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. 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 FACo Adjusted Tangible Net Worth (2) $ 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 (2) $ 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. |
Payables and Other Liabilities
Payables and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Payables and Other Liabilities | 20. Payables and Other Liabilities Payables and other liabilities related to continuing operations consisted of the following (in thousands): December 31, 2022 December 31, 2021 Accrued liabilities $ 56,302 $ 77,307 GNMA reverse mortgage buyout payable 41,768 31,274 Lease liabilities (Note 21 - Leases) 34,391 31,364 Accrued compensation expense 19,333 28,834 Liability for loans eligible for repurchase from GNMA 15,631 7,956 Deferred purchase price liabilities 3,918 34,764 Warrant liability 1,117 5,497 Deferred tax liability, net (Note 28 - Income Taxes) 887 18,413 Derivative liabilities (Note 13 - Derivative and Risk Management Activities) 385 25,049 Total payables and other liabilities $ 173,732 $ 260,458 Warrants Prior to the Business Combination, Replay issued 28,750,000 units, consisting of one ordinary share and one-half of one redeemable warrant (each, a “Public Warrant” or “Warrant”), resulting in 14,375,000 Public Warrants. Each Warrant is now exercisable for a share of FoA Class A Common Stock. As of both December 31, 2022 and December 31, 2021, there were 14,375,000 Public Warrants outstanding. The Warrants will expire April 1, 2026, five years after the completion of the Business Combination. The Company may call the Warrants for redemption: • in whole and not in part; • at a price of $0.01 per warrant; • upon a minimum of 30 days’ prior written notice of redemption; • if, and only if, the last reported closing price of the Class A Common Stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. Each Warrant entitles the holder to purchase one ordinary share at a price of $11.50 per share, subject to adjustment for reorganization and/or an extraordinary dividends event, as described in the warrant agreement. If the Company calls the Warrants for redemption, management will have the option to require all holders that wish to exercise the Warrants to do so on a “cashless basis,” as described in the warrant agreement. The Company has determined that the Warrants are subject to treatment as a liability. As of December 31, 2022 and December 31, 2021, the Warrants had a fair value of $1.1 million and $5.5 million , respectively. These liability-classified Public Warrants are anti-dilutive and thus have no impact on diluted EPS. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 21. Leases The table below summarizes the Company's operating lease portfolio related to continuing operations (in thousands): December 31, 2022 December 31, 2021 Right-of-use assets $ 27,933 $ 30,684 Lease liabilities 34,391 31,364 Weighted average remaining lease term (in years) 9.29 10.22 Weighted average discount rate 6.50 % 6.54 % The Company’s lease portfolio is comprised primarily of real estate and equipment agreements. Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in other assets, net, and payables and other liabilities, respectively, in the Consolidated Statements of Financial Condition as of December 31, 2022 and December 31, 2021. The Company does not currently have any finance leases in which it is the lessee. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ASC 842 stipulates that the 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 Company's current and expected future operating losses triggered an impairment analysis in the second half of 2022. The Company estimated the fair value using a discounted cash flow model with the discount rate being the significant assumption. Based on the analysis, the Company recognized an impairment charge of $2.2 million for the ROU asset related to continuing operations during 2022, which was recorded in impairment of goodwill, intangibles, and other assets in the Consolidated Statements of Operations. The table below summarizes the Company's net operating lease cost related to continuing operations (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Operating lease cost $ 6,230 $ 4,352 $ 850 $ 3,651 Short-term lease cost 612 218 96 1,641 Total operating and short-term lease cost 6,842 4,570 946 5,292 Variable lease cost 991 1,582 876 348 Sublease income (859) (93) (23) (425) Net lease cost $ 6,974 $ 6,059 $ 1,799 $ 5,215 The table below summarizes other information related to the Company’s operating leases in continuing operations (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,856 $ 2,442 $ 889 $ 3,767 Leased assets obtained in exchange for new operating lease liabilities 7,400 23,723 433 1,349 The following table presents a maturity analysis of operating leases and a reconciliation of the undiscounted cash flows to lease liabilities as of December 31, 2022 (in thousands): 2023 $ 5,864 2024 5,418 2025 4,760 2026 4,758 2027 4,473 Thereafter 21,729 Total undiscounted lease payments 47,002 Less: amounts representing interest (12,611) Total lease liabilities $ 34,391 |
Notes Payable, Net
Notes Payable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable, Net | 22. Notes Payable, Net In November 2020, FOAF issued $350.0 million aggregate principal amount of senior unsecured notes (the “Notes”). Interest is payable semi-annually in arrears on May 15 and November 15 beginning on May 15, 2021. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by FoA and each of FoA’s material existing and future wholly-owned domestic subsidiaries, excluding FOAF and subsidiaries. In accordance with the agreement, FOAF may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount thereof, plus the applicable premium as of the redemption date under the terms of the indenture and accrued and unpaid interest. The redemption price during each of the twelve-month periods following November 15, 2022, November 15, 2023 and at any time after November 15, 2024 is 103.938%, 101.969% and 100%, respectively, of the principal amount plus accrued and unpaid interest thereon. Upon the occurrence of a change of control, the holders of the Notes will have the right to require FOAF to make an offer to repurchase each holder’s Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest. FOAF has not redeemed any of the Notes since they were issued in November 2020. The Notes contain covenants limiting, among other things, FOAF and its restricted subsidiaries’ ability to incur additional debt or issue certain preferred shares, incur liens, make certain distributions, investments and other restricted payments, engage in certain transactions with affiliates, and merge or consolidate or sell, transfer, lease or otherwise dispose of all or substantially all of FOAF’s assets. These incurrence-based covenants are subject to exceptions and qualifications. Many of these covenants will cease to apply during any time that the Notes have investment grade ratings and no default has occurred and is continuing . The Company was in compliance with all required covenants related to the Notes as of December 31, 2022. The Company also has related-party promissory notes, which are further discussed in Note 33 - Related-Party Transactions. A summary of the outstanding notes payable, net, is presented in the table below (in thousands): Description Maturity Date Interest Rate December 31, 2022 December 31, 2021 Senior unsecured notes November 2025 7.9% $ 350,000 $ 350,000 Related-party notes (Note 33 - Related-Party Transactions) 46,790 — Fair value adjustment, net of amortization (1) 2,612 3,383 Total notes payable, net $ 399,402 $ 353,383 (1) In conjunction with the Business Combination, the Company was required to adjust the liabilities assumed to fair value, resulting in a premium on the Notes and the elimination of the previously recognized debt issuance costs. The interest expense for the Successor periods was $31.0 million and $22.6 million for the year ended December 31, 2022 and for the nine months ended December 31, 2021, respectively. The interest expense for the Predecessor periods was $7.7 million and $4.3 million for the three months ended March 31, 2021 and for the year ended December 31, 2020, respectively. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | 23. 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 December 31, 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 $4.9 million and $7.0 million for the Su ccessor year ended December 31, 2022 and nine months ended December 31, 2021, respectively. Legal expenses for the Predecessor periods were $4.0 million and $10.9 million |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 24. 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 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 for HECM loans. The outstanding unfunded commitments available to borrowers related to agency and non-agency reverse mortgage loans were approximately $3.1 billion as of December 31, 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 $128.9 million and $94.9 million as of December 31, 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 $26.7 million and $78.5 million as of December 31, 2022 and December 31, 2021, respectively. The Company also has commitments to purchase and sell loans totaling $1.7 million and $133.6 million, respectively, as of December 31, 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 |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | 25. Equity-Based Compensation Restricted Stock Units Pursuant to the terms of the A&R MLTIP, there are two types of equity-based compensation granted to employees, henceforth referred to as Replacement Restricted Stock Units (“Replacement RSUs”) and Earnout Right Restricted Stock Units (“Earnout Right RSUs”). The issuance of the Replacement RSUs and Earnout Right RSUs by pre-transaction ownership to employees under the A&R MLTIP will be funded by the exchange of current Class A Common Stock and Class A LLC Units held by the unitholders of FoA Equity prior to the closing of the Business Combination. Therefore, the shares issued to employees under the A&R MLTIP will not result in incremental share ownership in the Company, and the total compensation costs associated with the vesting of the Replacement RSUs and Earnout Right RSUs will be directly allocated to the noncontrolling interest and, with respect to Blocker GP, to FoA in proportion to their sharing percentages of exchanged units. Additionally, pursuant to the terms of the 2021 Omnibus Incentive Plan, the Company granted equity-based compensation to certain employees and non-employee board of directors members, henceforth referred to as Non-LTIP Restricted Stock Units ("Non-LTIP RSUs"). Vested Non-LTIP RSUs will be settled with issuance of shares of Class A Common Stock of FoA to the participant and a respective count of Class A LLC units of FoA Equity to FoA. Each type of RSUs is classified as equity and FoA accounts for the RSUs following the fair value method. Each type of RSUs' fair values is fixed on the grant date and not remeasured unless the award is subsequently modified. Replacement RSUs Pursuant to the terms of the A&R MLTIP executed on October 28, 2020, the Company granted each employee who held Phantom Units in FoA Equity and remained employed as of the Replacement RSU grant date, April 1, 2021, in consideration for the cancellation of their Phantom Units, Replacement RSUs that will vest into shares of Class A Common Stock. Following the terms of the A&R MLTIP, 25% of the Replacement RSUs vested on the Replacement RSU grant date, and the remaining 75% vest in equal installments on each of the first three anniversaries of the Closing of the Business Combination, subject to each holder’s continued employment. Earnout Right RSUs In addition to the Replacement RSUs, participants in the A&R MLTIP are entitled to receive additional Earnout Right RSUs depending on whether the Company achieves certain market-based conditions. The market-based vesting conditions have been factored into the grant date fair value measurement of the Earnout Right RSUs using a Monte Carlo simulation. The assumptions used in the Monte Carlo simulation model included a volatility rate of 60%, risk free rate of 1.14% and a weighted average expected term of 1.06 years for the first tranche of Earnout Right RSUs and 1.52 years for the second tranche of Earnout Right RSUs. Earnout Right RSUs have the same service-based vesting conditions listed above for the Replacement RSUs along with market-based vesting conditions. The first tranche of Earnout Right RSUs vest upon satisfaction of the service-based vesting conditions and if, at any time during the six years following the Closing, the VWAP of FoA's Class A Common Stock is greater than or equal to $12.50 for any twenty thirty twenty thirty Non-LTIP RSUs Pursuant to the terms of the 2021 Omnibus Incentive Plan and the form of Restricted Stock Unit Award Agreement adopted on November 18, 2021, the Company granted Non-LTIP RSUs to certain employees and non-employee board of directors members. The RSUs granted have various grant dates and vesting schedules. All vesting is subject to each holder's continued employment and are subject to forfeiture if the participant leaves the company for reasons other than those permitted under the plan. On January 1, 2022, FoA opened an initial offering period for our Employee Stock Purchase Plan (the “ESPP”) for the benefit of Company employees. Participation in the ESPP is voluntary and is open to any Company employee who satisfies the eligibility requirements under the ESPP other than the Company’s “officers” (as defined in Rule 16a-1 under the Exchange Act). The ESPP allows for shares of the Company’s Class A Common Stock to be purchased on behalf of participants, using funds contributed by participants through payroll deductions. Participants can contribute up to the lesser of 15% of the participant’s Base Earnings (as defined in the ESPP) or $50,000 per participant in any calendar year. The ESPP includes a matching component pursuant to which participating employees will be eligible to receive a grant of restricted stock units (“Match RSUs”) pursuant to and in accordance with the Company’s 2021 Omnibus Incentive Plan. The number of Match RSUs to be granted to participants with respect to each offering period will equal to 20% of the shares purchased by participants under the ESPP with respect to such offering period. A summary of each classification of RSU activity for the periods indicated is presented below: Grant Date Fair Value Replacement RSUs Number of Units Unvested Number of Units Vested Total Number of Units Weighted Average Price Per Unit Total Fair Value (in thousands) Outstanding, December 31, 2021 10,392,226 20,640 10,412,866 $ 9.48 $ 98,714 Vested (5,713,819) 5,713,819 — — — Forfeited (557,281) — (557,281) 9.48 (5,283) Settled — (5,122,137) (5,122,137) 9.48 (48,558) Outstanding, December 31, 2022 4,121,126 612,322 4,733,448 $ 9.48 $ 44,873 Equity-based compensation expense for the Replacement RSUs for the Successor periods was $23.2 million and $43.3 million for the year ended December 31, 2022 and for the nine months ended December 31, 2021, respectively. There was no equity-based compensation expense for the Replacement RSUs for the Predecessor three months ended March 31, 2021 or the year ended December 31, 2020. Unrecognized equity-based compensation expense for the Replacement RSUs totaled $23.0 million as of December 31, 2022 and is expected to be recognized over 1.2 years. Grant Date Fair Value Earnout Right RSUs Number of Units Unvested Number of Units Vested Total Number of Units Weighted Average Price Per Unit Total Fair Value (in thousands) Outstanding, December 31, 2021 1,531,440 — 1,531,440 $ 8.91 $ 13,638 Forfeited (58,320) — (58,320) 8.91 (519) Outstanding, December 31, 2022 1,473,120 — 1,473,120 $ 8.91 $ 13,119 Equity-based compensation expense for the Earnout Right RSUs for the Successor periods was $2.9 million and $4.4 million for the year ended December 31, 2022 and for the nine months ended December 31, 2021, respectively. There was no equity-based compensation expense for the Earnout Right RSUs for the Predecessor three months ended March 31, 2021 or the year ended December 31, 2020. Unrecognized equity-based compensation expense for the Earnout Right RSUs totaled $1.0 million as of December 31, 2022 and is expected to be recognized over 1.0 year. Grant Date Fair Value Non-LTIP RSUs Number of Units Unvested Number of Units Vested Total Number of Units Weighted Average Price Per Unit Total Fair Value (in thousands) Outstanding, December 31, 2021 168,221 — 168,221 $ 5.35 $ 900 Granted 4,403,158 — 4,403,158 2.94 12,938 Vested (499,338) 499,338 — — — Forfeited (699,937) — (699,937) 3.00 (2,102) Settled — (473,783) (473,783) 3.56 (1,686) Outstanding, December 31, 2022 3,372,104 25,555 3,397,659 $ 2.96 $ 10,050 Equity-based compensation expense for the Non-LTIP RSUs for the Successor periods was $3.8 million and $0.3 million for the year ended December 31, 2022 and for the nine months ended December 31, 2021, respectively. There was no equity-based compensation expense for the Non-LTIP RSUs for the Predecessor three months ended March 31, 2021 or the year ended December 31, 2020. Unrecognized equity-based compensation expense for the Non-LTIP RSUs totaled $6.2 million as of December 31, 2022 and is expected to be recognized over 2.1 years. |
Fee Income
Fee Income | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Fee Income | Fee income related to continuing operations consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Loan servicing fees, net $ 45,965 $ 43,639 $ 13,494 $ 20,063 Loan origination fees 18,476 14,100 1,206 7,848 Change in fair value of MSR 14,348 (18,400) 20,739 4,562 Other fee income 3,026 2,347 1,108 57 Total fee income $ 81,815 $ 41,686 $ 36,547 $ 32,530 |
General and Administrative Expe
General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
General and Administrative Expenses | 27. General and Administrative Expenses General and administrative expenses related to continuing operations consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Depreciation and amortization $ 42,028 $ 30,576 $ 771 $ 3,012 Loan portfolio expenses 37,712 27,557 9,157 27,465 Securitization expenses 32,152 13,040 4,966 13,893 Communications and data processing 27,733 18,869 4,240 12,761 Loan origination expenses 19,927 10,883 5,370 12,931 Business development 13,031 9,329 2,684 12,468 Other expenses 31,585 21,703 8,850 33,605 Total general and administrative expenses $ 204,168 $ 131,957 $ 36,038 $ 116,135 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 28. Income Taxes The provision (benefit) for income taxes related to continuing operations consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Current expense Federal $ 384 $ 67 $ 18 $ 150 State 8 — — — Subtotal 392 67 18 150 Deferred benefit Federal (13,953) (6,085) — — State (3,571) (1,164) — — Subtotal (17,524) (7,249) — — Provision (benefit) for income taxes $ (17,132) $ (7,182) $ 18 $ 150 The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate (dollars in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Tax expense (benefit) at federal statutory rate $ (72,030) $ (88,623) $ 2,935 $ 3,181 Effect of: Noncontrolling interest 54,414 64,236 (3,060) (3,480) Permanent differences (17) (1,872) — — Goodwill impairment — 21,719 — — State taxes (3,531) (1,236) — — Valuation allowance 3,073 — — — Other tax adjustments 959 (1,406) 143 449 Provision (benefit) for income taxes $ (17,132) $ (7,182) $ 18 $ 150 Effective Tax Rate 4.99 % 1.70 % 0.13 % 0.99 % The effective tax rate is calculated by dividing the provision (benefit) for income taxes by net income (loss) from continuing operations before income taxes. The effective tax rate for the year ended December 31, 2022 differs from the U.S. federal statutory rate primarily due to income attributable to noncontrolling interests, state statutory income tax rates, and the impact of discrete tax items, which includes a $3.8 million charge (of which $3.1 million is federal and $0.7 million is included in state taxes adjustment) associated with the creation of a valuation allowance against net deferred tax assets, including net operating loss carry forwards and other deferred tax assets. The effective tax rate for the nine months ended December 31, 2021 differs from the statutory rate primarily due to income attributable to noncontrolling interests and the impairment of book goodwill recorded during the period. The effective tax rate for the Predecessor periods differs from the statutory rate primarily due to the business operating as a flow-through entity which was not subject to U.S. federal and state income taxes. 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 corporate taxes that are incurred by its regarded subsidiaries. Deferred income taxes reflect the net tax effects of temporary differences between the carrying value of assets and liabilities for financial reporting purposes and the amounts reported for income tax purposes. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to these temporary differences and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Significant components of the Company's deferred tax assets and deferred tax liabilities are as follows (in thousands): December 31, 2022 December 31, 2021 Deferred tax assets Loss carryforwards $ 20,845 $ 8,582 Research and development tax credits 1,092 172 Earnout awards 5,183 — TRA 983 9,107 Other 234 — Gross deferred tax assets 28,337 17,861 Valuation allowance (24,710) (777) Deferred tax assets, net of valuation allowance 3,627 17,084 Deferred tax liabilities Investment in FoA Equity 4,428 35,345 Other 86 152 Gross deferred tax liabilities 4,514 35,497 Net deferred tax liability $ (887) $ (18,413) The federal and state net operating loss ("NOL") carryforwards amount to approximately $80.3 million and $32.8 million at December 31, 2022 and December 31, 2021, respectively. It is expected that these NOL's will not expire. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not 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. During 2022, resulting from a reduced demand for mortgage products from the previously reported Mortgage Originations segment and compressed margins, the Company decided to exit that business. Management assessed the existing taxable temporary differences that will reverse through the course of ordinary business and concluded the Company will not more likely than not generate sufficient taxable income to utilize the current attributes, and a valuation allowance was established for the deferred tax asset in excess of deferred tax liabilities. Management has also determined that the future sources of taxable income from reversing taxable temporary differences that comprise the investment in FoA Equity deferred tax liability would only be fully realized upon sale of FoA's interest in FoA Equity. Accordingly, the deferred tax liability from investment in FoA Equity has been treated as an indefinite-lived intangible and is limited by the federal net operating loss utilization rules. Thus an incremental valuation allowance was recorded for the amount subject to the limitation. The net change in the valuation allowance was $23.9 million for the year ended December 31, 2022, and $0.6 million for the Successor nine months ended December 31, 2021. Furthermore, the effect both of a change in the beginning-of-the-year balance of a valuation allowance and changes from income or loss in the current year have been included in provision (benefit) for income taxes. $11.8 million of decreases in the valuation allowance associated with transactions with noncontrolling interests in the current year are offset to additional paid-in capital. Net deferred tax liabilities are included in payables and other liabilities in the Consolidated Statements of Financial Condition. 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, 2018 or prior. The Company's unrecognized tax benefits, excluding related interest and penalties, were (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Unrecognized tax benefits—beginning of period $ 74 $ — $ — $ — Increases on tax positions related to the current period 233 74 — — Unrecognized tax benefits—end of period $ 307 $ 74 $ — $ — If recognized, the entire amount of the tax benefits disclosed above, would reduce the annual effective tax rate. FoA does not believe that it will have a material increase or decrease in its unrecognized tax benefits during the coming year. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | 29. Defined Contribution Plan The Company sponsors a qualified defined contribution plan and matches certain employee contributions on a discretionary basis. The Company's expenses for matching contributions to the defined contribution plan related to continuing operations for the Successor periods were $3.6 million and $1.9 million for the year ended December 31, 2022 and for the nine months ended December 31, 2021, respectively. Matching contribution expenses to the defined contribution plan related to continuing operations for the Predecessor periods were $0.8 million and $1.7 million for the three months ended March 31, 2021 and for the year ended December 31, 2020 , respectively. These expenses are included in salaries, benefits, and related expenses in the Consolidated Statements of Operations. |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | 30. Business Segment Reporting The following tables are a presentation of financial information by segment for the periods indicated (in thousands), and have been restated to reflect the new segment structure, as described in Note 1 - Organization and Description of Business: For the year ended December 31, 2022 Successor Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain (loss) on sale and other income from loans held for sale, net $ 367 $ (6,298) $ (5,931) $ — $ — $ (5,931) Net fair value gains (losses) on loans and related obligations 283,808 (195,231) 88,577 — 912 89,489 Fee income 15,526 66,761 82,287 27,578 (28,050) 81,815 Net interest expense Interest income 43 5,319 5,362 676 — 6,038 Interest expense (54) (90,926) (90,980) (27,669) — (118,649) Net interest expense (11) (85,607) (85,618) (26,993) — (112,611) Total revenues 299,690 (220,375) 79,315 585 (27,138) 52,762 Total expenses 182,287 124,060 306,347 139,014 (27,135) 418,226 Impairment of intangibles and other assets (3,500) (3,800) (7,300) (2,228) (9,528) Other, net 3,290 860 4,150 27,839 3 31,992 Net income (loss) before taxes $ 117,193 $ (347,375) $ (230,182) $ (112,818) $ — $ (343,000) Depreciation and amortization $ 38,654 $ 319 $ 38,973 $ 3,055 $ — $ 42,028 Total assets $ 297,361 $ 20,185,979 $ 20,483,340 $ 1,610,355 $ (1,534,400) $ 20,559,295 For the nine months ended December 31, 2021 Successor Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain (loss) on sale and other income from loans held for sale, net $ (4,150) $ 39,950 $ 35,800 $ — $ — $ 35,800 Net fair value gains (losses) on loans and related obligations 317,138 (30,738) 286,400 — 4,621 291,021 Fee income 11,220 30,455 41,675 25,243 (25,232) 41,686 Net interest income (expense) Interest income 1,031 1,027 2,058 276 — 2,334 Interest expense (364) (52,625) (52,989) (20,243) — (73,232) Net interest income (expense) 667 (51,598) (50,931) (19,967) — (70,898) Total revenues 324,875 (11,931) 312,944 5,276 (20,611) 297,609 Total expenses 137,872 92,197 230,069 101,005 (26,543) 304,531 Impairment of goodwill and intangible assets (413,868) (11,909) (425,777) — (425,777) Other, net 248 1,170 1,418 15,198 (5,932) 10,684 Net loss before taxes $ (226,617) $ (114,867) $ (341,484) $ (80,531) $ — $ (422,015) Depreciation and amortization $ 29,019 $ 132 $ 29,151 $ 1,425 $ — $ 30,576 Total assets $ 368,927 $ 18,974,389 $ 19,343,316 $ 1,083,412 $ (957,353) $ 19,469,375 For the three months ended March 31, 2021 Predecessor Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain on sale and other income from loans held for sale, net $ — $ 5,065 $ 5,065 $ — $ — $ 5,065 Net fair value gains on loans and related obligations 68,449 2,750 71,199 — (1) 71,198 Fee income 524 36,191 36,715 7,936 (8,104) 36,547 Net interest expense Interest income — 138 138 12 — 150 Interest expense — (14,954) (14,954) (7,756) — (22,710) Net interest expense — (14,816) (14,816) (7,744) — (22,560) Total revenues 68,973 29,190 98,163 192 (8,105) 90,250 Total expenses 23,693 24,406 48,099 27,746 (8,613) 67,232 Other, net 34 895 929 (9,464) (508) (9,043) Net income (loss) before taxes $ 45,314 $ 5,679 $ 50,993 $ (37,018) $ — $ 13,975 Depreciation and amortization $ 151 $ 146 $ 297 $ 474 $ — $ 771 Total assets $ 35,861 $ 17,378,088 $ 17,413,949 $ 385,370 $ (326,313) $ 17,473,006 For the year ended December 31, 2020 Predecessor Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain on sale and other income from loans held for sale, net $ — $ 10,192 $ 10,192 $ — $ — $ 10,192 Net fair value gains on loans and related obligations 192,257 103,872 296,129 — (2) 296,127 Fee income 1,837 28,002 29,839 25,392 (22,701) 32,530 Net interest expense Interest income — 714 714 15 — 729 Interest expense — (73,877) (73,877) (8,946) (132) (82,955) Net interest expense — (73,163) (73,163) (8,931) (132) (82,226) Total revenues 194,094 68,903 262,997 16,461 (22,835) 256,623 Total expenses 87,219 90,854 178,073 80,106 (22,835) 235,344 Other, net — — — (6,131) — (6,131) Net income (loss) before taxes $ 106,875 $ (21,951) $ 84,924 $ (69,776) $ — $ 15,148 Depreciation and amortization $ 897 $ 130 $ 1,027 $ 1,985 $ — $ 3,012 Total assets $ 25,841 $ 16,895,820 $ 16,921,661 $ 88,638 $ — $ 17,010,299 The Company has identified three reportable segments: Retirement Solutions, Portfolio Management, and Corporate and Other. Retirement Solutions Our Retirement Solutions segment is where we fulfill our goal to help older homeowners achieve their financial goals in retirement. This segment includes all loan origination activity for the Company, including reverse mortgage and home improvement loans. We originate or acquire reverse mortgage loans through our FAR operating subsidiary. This segment originates HECM and non-agency reverse mortgages. We securitize HECM into HMBS, which Ginnie Mae guarantees, and sell them in the secondary market while retaining the rights to service. Non-agency reverse mortgages, which complement the FHA HECM for higher value homes, may be sold as whole loans to investors or held for investment and pledged as collateral to securitized nonrecourse debt obligations. Non-agency reverse mortgage loans are not insured by the FHA. We originate reverse mortgage loans through a retail channel (consisting primarily of field offices and a centralized retail platform) and a third-party originator channel (consisting primarily of a network of mortgage brokers). Additionally, this segment originates home improvement loans through our FAM subsidiary. Through these operations, the Company assists homeowners in the financing of short-term home improvement projects such as windows, HVAC, or remodeling, and relies on a network of partner contractors across the country to acquire, interact with, and serve these customers. These home improvement loans are then sold in the secondary market through our capital markets platform. Portfolio Management Our Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services to the enterprise. As part of the vertical integration of our business, our Portfolio Management team acts as the connector between borrowers and investors. The direct connections to investors, provided by our Financial Industry Regulatory Authority registered broker-dealer, allows us to innovate and manage risk through better price and product discovery. Given our scale, we are able to work directly with investors and where appropriate, retain assets on balance sheet for attractive return opportunities. These retained investments are a source of growing and recurring earnings. The Portfolio Management segment generates revenue and earnings in the form of gains on sale of loans, fair value gains on portfolio assets, interest income, and fee income related to mortgage servicing rights, underwriting, advisory, valuation, and other ancillary services. Corporate and Other Our Corporate and Other segment consists of our corporate services groups. The Company's segments are based upon the Company's organizational structure which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on actual cost of services performed based on a direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Non-allocated corporate expenses include administrative costs of executive management and other corporate functions that are not directly attributable to the Company's operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. To reconcile the Company's consolidated results, certain inter-segment revenues and expenses are eliminated in the "Eliminations" column in the previous tables. |
Liquidity and Capital Requireme
Liquidity and Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Liquidity And Capital Requirements | 31. Liquidity and Capital Requirements Compliance 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 December 31, 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 $112.4 million as of December 31, 2022. FAR’s actual net worth calculated based on Ginnie Mae guidance was $254.7 million as of December 31, 2022. The minimum liquidity required of FAR by Ginnie Mae was $22.5 million as of December 31, 2022. FAR’s actual cash and cash equivalents were $28.7 million as of December 31, 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 December 31, 2022, FAR was in compliance with applicable requirements. FAM In addition to the covenant requirements of FAM mentioned in Note 19 - 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 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 at the end of the most recent fiscal quarter of $139.8 million as of December 31, 2022. FAM’s actual net worth was $102.9 million as of December 31, 2022. FAM is also subject to requirements related to material declines in quarterly and two consecutive quarter tangible net worth. As of December 31, 2022, FAM was not in compliance with the FNMA lender adjusted tangible net worth quarterly and two consecutive quarter requirements. As of December 31, 2022, FAM obtained all required waivers for these covenant violations. 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 December 31, 2022, FAM 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 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 $250 thousand. As of December 31, 2022, ISG met the minimum net capital requirement amounts and was, therefore, in compliance. Additionally, the ISG 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. |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | 32. Concentrations of Risk The Company’s activities are subject to significant risks and uncertainties, including the ability of management to adequately develop its service lines, acquire adequate customer and revenue bases, and overall market demand for its services. In addition, the Company engages in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company’s policy to review, as necessary, the credit standing of each counterparty. Financial instruments, which potentially subject the Company to credit risk, consist of cash and cash equivalents, derivatives, loans held for sale, and loans held for investment. The Company invests its excess cash balances that may exceed federal insured limits with creditworthy financial institutions, primarily in accounts that are exposed to minimal interest rate and credit risk. The Company maintains multiple banking relationships with both national and regional banks and actively monitors the financial stability of such institutions to ensure they have sufficient capital to meet the Company's funding needs and can withstand a sudden liquidity stress event or an unexpected significant amount of withdrawal requests submitted at the same time by multiple customers. Credit risk is reduced by the Company’s underwriting standards, monitoring pledged collateral and other in-house monitoring procedures performed by management. The Company’s credit exposure for amounts due from investors and derivative related receivables is minimized since its policy is to sell mortgages only to highly reputable and financially sound financial institutions. Mortgage loans are sold or financed through one of the following methods: (i) sales or financing securitizations to or pursuant to programs sponsored by FNMA, FHLMC, and Ginnie Mae, or (ii) sales or financing securitizations issued to a few large private investors. The Company sold $2,255.5 million for the year ended December 31, 2022, $1,965.4 million for the Successor nine months ended December 31, 2021, $450.1 million for the Predecessor three months ended March 31, 2021, and $1,479.9 million for the year ended December 31, 2020 in mortgage loans to FNMA, FHLMC and Ginnie Mae related to our continuing operations. The Company sold to or securitized with private investors $3,373.1 million and $3,491.7 million for the year ended December 31, 2022 and for the Successor nine months ended December 31, 2021, respectively, and $854.1 million for the Predecessor three months ended March 31, 2021 in mortgage loans related to our continuing operations. The Company sold to or securitized with private investors $3,613.4 million for the year ended December 31, 2020 in mortgage loans related to our continuing operations. As of December 31, 2022 the sale or financing securitizations issued to private investors related to our continuing operations consisted of 84.5% non-agency reverse mortgage loans, 7.5% commercial loans, and 8.0% non-assignable buy-outs ("NABO") loans . For the Successor nine months ended December 31, 2021, the sale or financing securitizations issued to private investors related to our continuing operations consisted of 39.7% non-agency reverse mortgage loans, 12.9% commercial loans, and 47.4% NABO loans . F or the Predecessor three months ended March 31, 2021, the sale or financing securitizations issued to private investors related to our continuing operations consisted of 66.9% NABO loans, and 33.1% commercial loans. The Company's sales or financing securitizations issued to private investors related to our continuing operations for the Predecessor year ended December 31, 2020 consisted of 55.2% non-agency reverse mortgage loans, 6.5% agency reverse mortgage loans, 12.3% commercial loans, and 26.0% NABO loans. In July 2017, the Company entered into a $45.0 million mezzanine financing agreement with a non-affiliated company, separately owned by other investment funds affiliated with Blackstone, secured by a junior lien in mortgage assets pledged to certain senior secured warehouse facilities. This facility was structured as a loan and security agreement. The funds advanced are generally repaid using collections from the underlying assets to the extent remaining after the payment of any senior debt or the proceeds from the sale or securitization of the underlying assets or distribution from underlying securities, although prior payment may be required based on, among other things, certain breaches of representations and warranties or other events of default. This financing agreement was amended in May 2021 from $45.0 million to $25.0 million. As of December 31, 2022 and December 31, 2021 the Company had outstanding borrowings of $25.0 million and $21.5 million, respectively. Reverse Mortgages FAR originates, buys and sells HECM, commonly referred to as reverse mortgages, and securitizes and sells the HECM as HMBS. FAR is subject to approval of, and is heavily regulated by, federal and state regulatory agencies as a mortgage lender, Ginnie Mae issuer, broker and servicer. The secondary market for the FHA-insured HECM loans is not assured; to the extent the program requires Congressional appropriations in future years, which are not forthcoming, the program could be jeopardized; and/or, consumer demand could be reduced if FHA actions result in a reduction of initial principal limit available to borrowers. FAR depends on its ability to securitize reverse mortgages, subsequent draws, mortgage insurance premiums and servicing fees, and would be adversely affected if the ability to access the secondary market were to be limited. Concentrations of credit risk associated with reverse mortgage loans are limited due to the large number of customers and their dispersion across many geographic areas. The table below provides the percentage of reverse loans in the Company’s Consolidated Statements of Financial Condition by the location in which the home securing the loan is located and is based on their remaining UPB. "Other" consists of loans in states in which concentration individually represents less than 5% of total remaining UPB. December 31, 2022 December 31, 2021 California 47 % 45 % New York 7 % 8 % Florida 5 % 5 % Texas 4 % 5 % Other 37 % 37 % Total 100 % 100 % A significant portion of the Company's non-agency reverse mortgage products are originated within the state of California. The Company's non-agency reverse mortgage production concentration by location is presented in the following table. The Company's total origination volume in any other states did not exceed 5% of the total origination volume, and were included in the "Other" balance. December 31, 2022 December 31, 2021 California 77 % 81 % Other 23 % 19 % Total 100 % 100 % The following table provides the percentage of reverse mortgage loans which are serviced by the Company by loans with GSEs ("Agency") and those with private investors ("Non-agency") by period. December 31, 2022 December 31, 2021 Agency 64 % 70 % Non-agency 36 % 30 % Total 100 % 100 % Loans previously repurchased out of HECM Buyouts that were subsequently securitized also contain concentrations of credit risk as they are limited due to the dispersion across many geographic areas. The table below provides the percentage of securitized nonperforming HECM buyouts in the Company's Consolidated Statements of Financial Condition by the location in which the home securing the loan is located and is based on their remaining UPB. "Other" consists of loans in states in which concentration individually represents less than 5% of total remaining UPB. December 31, 2022 December 31, 2021 New York 20 % 17 % Puerto Rico 14 % 15 % California 9 % 10 % Texas 10 % 10 % Florida 5 % 6 % Other 42 % 42 % Total 100 % 100 % Commercial Mortgages The economies of states where mortgage properties are concentrated may be adversely affected to a greater degree than the economies of other areas of the country. The table below provides the percentage of commercial loans on the Company’s Consolidated Statements of Financial Condition by the location in which the home securing the loan is located and is based on their remaining UPB. "Other" consists of loans in states in which concentration individually represents less than 5% of total remaining UPB. December 31, 2022 December 31, 2021 Illinois 13 % 11 % New Jersey 8 % 7 % Florida 7 % 6 % California 4 % 5 % Texas 4 % 5 % Other 64 % 66 % Total 100 % 100 % |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 33. Related-Party Transactions Promissory Notes The Company had two Revolving Working Capital Promissory Note Agreements (the "Working Capital Promissory Notes") outstanding with BTO Urban Holdings and Libman Family Holdings, LLC, a Delaware limited liability company which are deemed affiliates of the Company. Amounts under the Working Capital Promissory Notes may be re-borrowed and repaid from time to time until the relate d maturity date. The Working Capital Promissory Notes accrue interest monthly at a rate of 6.5% per annum and mature in October 2023. These notes had outstanding amounts of $46.8 million and $0.0 million as of December 31, 2022 and December 31, 2021, respectively, recorded within notes payable, net, in the Consolidated Statements of Financial Condition. Additionally, there was an immaterial amount of interest paid on these notes during the Successor year ended December 31, 2022 and nine months ended December 31, 2021, and for the Predecessor three months ended March 31, 2021. Prior to their 2021 amendment, t he Company paid interest of $3.1 million f or the Predecessor year ended December 31, 2020 related to the Working Capital Promissory No tes. The Working Capital Promissory Notes were amended subsequent to the balance sheet date. Refer to Note 38 - Subsequent Events for additional information. Agricultural Loans In 2019, the Company entered into an Amended and Restated Limited Liability Company Agreement with FarmOp Capital Holdings, LLC ("FarmOp") in which the Company acquired an equity investment in FarmOp. Subsequent to this agreement, the Company agreed to purchase originated agricultural loans from FarmOp. The Company purchased agricultural loans and had total funded draw amounts of $142.3 million and $211.4 million, respectively, for the year ended December 31, 2022. The Company purchased agricultural loans and had total funded draw amounts of $155.8 million and $182.4 million, respectively, during the Successor nine months ended December 31, 2021, and $83.0 million and $82.1 million, respectively, for the Predecessor three months ended March 31, 2021. The Company purchased agricultural loans and had total funded draw amounts of $126.4 million and $146.2 million, respectively, for the Predecessor year ended December 31, 2020. The Company had promissory notes receivable outstanding with FarmOp of $4.7 million and $4.1 million, including accrued interest, as of December 31, 2022 and December 31, 2021, respectively, which are recorded in other assets, net, in the Consolidated Statements of Financial Condition. This promissory note has an interest rate of 10% and maturity date of December 31, 2022. There is an allowance for loan losses recorded against the outstanding note receivable of $4.7 million and $0.0 million as of December 31, 2022 and December 31, 2021, respectively. Nonrecourse MSR Financing Liability, at Fair Value In 2020, the Company entered into a nonrevolving facility commitment with various related parties, to sell beneficial interests in the servicing fees generated from certain of its originated or acquired MSR. 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 MSR in exchange for an upfront payment equal to the purchase price or fair value of the identified MSR. These transactions are accounted for as financings. As of December 31, 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 Related parties of FoA purchased notes in the high-yield debt offering in November 2020 in an aggregate principal amount of $135.0 million. Equity Investment On December 6, 2022, the Company entered into separate Stock Purchase Agreements (each, a “Stock Purchase Agreement”) with each of (i) BTO Urban Holdings L.L.C., Blackstone Family Tactical Opportunities Investment Partnership – NQ ESC L.P. and BTO Urban Holdings II L.P. (collectively, the “Blackstone Investor”) and (ii) Libman Family Holdings LLC (the “BL Investor” and together with the Blackstone Investor, the “Investors”). Pursuant to each such Investor’s respective Stock Purchase Agreement, on the terms and subject to the conditions set forth therein, each of the Investors will purchase 10,869,566 shares of Company Class A Common Stock for an aggregate purchase price of $15.0 million (collectively, the “Equity Investments”), representing a price per share of Company Class A Common Stock equal to the volume weighted average price per share of Company Class A Common Stock on the New York Stock Exchange over the fifteen consecutive trading days ending on December 6, 2022. The closing of the Equity Investments will occur on the date of the AAG Transaction closing and is subject to, among other customary conditions, the prior or substantially simultaneous consummation of the AAG Transaction in accordance with the AAG/Bloom purchase agreements. Refer to Note 38 - Subsequent Events for additional information. |
Condensed Financial Information
Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Registrant | 34. Condensed Financial Information of Registrant Finance of America Companies Inc. (Parent Company Only) Condensed Statements of Financial Condition (In thousands, except share data) December 31, 2022 December 31, 2021 ASSETS Investment in subsidiaries $ 259,895 $ 446,517 TOTAL ASSETS $ 259,895 $ 446,517 LIABILITIES AND EQUITY Payables and other liabilities 5,784 58,538 TOTAL LIABILITIES $ 5,784 $ 58,538 EQUITY Class A Common Stock, $0.0001 par value; 6,000,000,000 shares authorized; 67,681,856 and 65,013,569 shares issued, respectively, and 63,423,356 and 60,755,069 shares outstanding, respectively 6 6 Additional paid-in capital 888,488 831,620 Accumulated deficit (634,295) (443,613) Accumulated other comprehensive loss (88) (34) TOTAL EQUITY 254,111 387,979 TOTAL LIABILITIES AND EQUITY $ 259,895 $ 446,517 Finance of America Companies Inc. (Parent Company Only) Condensed Statements of Operations and Comprehensive Income (In thousands) For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor REVENUES Interest income $ — $ — $ — $ 164 Interest expense — — (46) (3,669) Net interest expense — — (46) (3,505) TOTAL REVENUES — — (46) (3,505) EXPENSES Salaries, benefits, and related expenses — — 4,041 7,710 Occupancy, equipment rentals, and other office related expenses — — 161 632 General and administrative expenses — — 357 1,292 TOTAL EXPENSES — — 4,559 9,634 OTHER, NET 40,163 15,042 — — NET INCOME (LOSS) BEFORE INCOME TAXES 40,163 15,042 (4,605) (13,139) Benefit for income taxes applicable to parent (17,524) (23,748) — — NET INCOME (LOSS) 57,687 38,790 (4,605) (13,139) Equity (deficit) in undistributed income from subsidiaries (248,369) (410,590) 124,464 531,527 NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST (190,682) (371,800) 119,859 518,388 Other comprehensive income (loss) (54) (34) (11) 60 COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST $ (190,736) $ (371,834) $ 119,848 $ 518,448 As disclosed in Note 1 - Organization and Description of Business, FoA is a holding company and has a controlling interest in FoA Equity. FoA did not have any cash as of December 31, 2022 or December 31, 2021. Therefore, Condensed Statements of Cash Flows have not been presented. Management determined which assets and liabilities were to be used by the operating subsidiaries, and these amounts have been appropriately excluded from the parent company Condensed Statements of Financial Condition of FoA presented above. Changes in these balances are reflected as additional contributions and distributions from FoA Equity in the period in which they occur, and had no impact on any cash balances that may have otherwise been maintained at FoA. Basis of Presentation The parent company financial statements should be read in conjunction with the Company's consolidated financial statements and the accompanying notes thereto. The parent company follows the same accounting policies as disclosed in Note 2 - Summary of Significant Accounting Policies to the Company's consolidated financial statements. For purposes of this condensed financial information, the Company's consolidated subsidiaries are recorded based upon its proportionate share of the subsidiaries net assets (similar to presenting them on the equity method). Since restricted net assets of FoA and its subsidiaries exceed 25% of the consolidated net assets of the Company and its subsidiaries, the accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04 Schedule 1 of Regulation S-X. Dividends from Subsidiaries |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 35. Earnings Per Share Basic net loss per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding during the Successor periods. Diluted net loss 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 periods. For the Predecessor periods, FoA Equity’s capital structure consisted of a single class of outstanding membership units, which were 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 net loss per share for the Successor periods (in thousands, except share data and per share amounts): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Basic net loss per share: Numerator Net loss from continuing operations $ (325,868) $ (414,833) N/A N/A Less: Loss from continuing operations attributable to noncontrolling interest (1) (261,450) (307,212) N/A N/A Net loss from continuing operations attributable to holders of Class A Common Stock - basic $ (64,418) $ (107,621) N/A N/A Net loss from discontinued operations $ (389,660) $ (886,169) N/A N/A Less: Loss from discontinued operations attributable to noncontrolling interest (1) (263,396) (621,990) N/A N/A Net loss from discontinued operations attributable to holders of Class A Common Stock - basic $ (126,264) $ (264,179) N/A N/A Denominator Weighted average shares of Class A Common Stock outstanding - basic 62,298,532 59,849,638 N/A N/A Basic net loss per share Continuing operations $ (1.03) $ (1.80) N/A N/A Discontinued operations (2.03) (4.41) N/A N/A Basic net loss per share $ (3.06) $ (6.21) N/A 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 loss by the amount of net loss 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 loss per share calculations. Loss attributable to noncontrolling interest includes an allocation of expense related to the A&R MLTIP. See Note 25 - Equity-Based Compensation for additional details. For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Diluted net loss per share: Numerator Net loss from continuing operations attributable to holders of Class A Common Stock - basic $ (64,418) $ (107,621) N/A N/A Reallocation of net loss from continuing operations assuming exchange of Class A LLC Units (1) (233,420) (289,568) N/A N/A Net loss from continuing operations attributable to holders of Class A Common Stock - diluted $ (297,838) $ (397,189) N/A N/A Net loss from discontinued operations attributable to holders of Class A Common Stock - basic $ (126,264) $ (264,179) N/A N/A Reallocation of net loss from discontinued operations assuming exchange of Class A LLC Units (1) (162,486) (582,253) N/A N/A Net loss from discontinued operations attributable to holders of Class A Common Stock - diluted $ (288,750) $ (846,432) N/A N/A Denominator Weighted average shares of Class A Common Stock outstanding - basic 62,298,532 59,849,638 N/A N/A Effect of dilutive securities: Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) 125,937,981 130,747,611 N/A N/A Weighted average shares of Class A Common Stock outstanding - diluted 188,236,513 190,597,249 N/A N/A Diluted net loss per share Continuing operations $ (1.58) $ (2.08) N/A N/A Discontinued operations (1.54) (4.44) N/A N/A Diluted net loss per share $ (3.12) $ (6.52) N/A N/A (1) This adjustment assumes the reallocation of noncontrolling interest earnings, on an after-tax basis, 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 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 Blocker. As a result of the application of the if-converted method in arriving at diluted net loss per share, the entirety of the compensation cost associated with vesting of the Replacement RSUs and Earnout Right RSUs is assumed to be included in the net loss attributable to holders of the Company’s Class A Common Stock. (2) The diluted weighted average shares outstanding of Class A Common Stock includes the effects of the if-converted method to reflect the provisions of the Exchange Agreement and assumes the Class A LLC Units held by Continuing Unitholders, representing the noncontrolling interest, exchange their units on a one-for-one basis for shares of Class A Common Stock in FoA. In addition to the Class A LLC Units, the Company also had RSUs outstanding during the Successor year ended December 31, 2022 and nine months ended December 31, 2021 . The effects of the RSUs following the treasury stock method have been excluded from the computation of diluted net loss per share as it did not yield dilutive shares. |
Sponsor Earnout
Sponsor Earnout | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Sponsor Earnout | 36. Sponsor Earnout Contemporaneously with the execution of the Transaction Agreement, the initial shareholders entered into an amendment and restatement of the existing Sponsor Agreement (as amended and restated, the “Sponsor Agreement”) with FoA, Replay and FoA Equity, pursuant to which, in connection with the Closing of the Business Combination, among other things, (i) immediately prior to the Domestication (as defined below), the 7,750,000 of private placement warrants (the “Private Warrants”) owned by the Sponsor were exchanged for 775,000 ordinary shares which then converted into shares of Class A Common Stock and (ii) excluding the 90,000 Founder Shares held by Replay's independent directors (unless transferred to any other initial shareholder or permitted transferee thereof) that were converted into shares of Class A Common Sock and immediately vested, 40% of the Founder Shares shares held by the Sponsor (2,839,000 shares) were converted into vested Class A Common Stock and became wholly-owned by the Sponsor immediately prior to the Closing of the Business Combination and 60% of the Founder Shares held by the Sponsor (4,258,500 shares) were converted into unvested shares of Class A Common Stock and are subject to vesting and forfeiture in accordance with certain terms and conditions, as laid out below. If at any time during the six years following the Closing, the VWAP of FoA's Class A Common Stock is greater than or equal to $12.50 for any twenty (20) Trading Days within a period of thirty (30) consecutive Trading Days (“First Sponsor Earnout Achievement Date”) then 35% of the total Founder Shares owned by each sponsor person shall vest. If the First Sponsor Earnout Achievement Date has not occurred within six years of the Closing Date the Founder Shares that were eligible to vest shall not vest and shall be forfeited. If at any time during the six years following the Closing, the VWAP of FoA’s Class A Common Stock is greater than or equal to $15.00 for any twenty (20) Trading Days within a period of thirty (30) consecutive Trading Days (“Second Sponsor Earnout Achievement Date”) then 25% of the total Founder Shares owned by each sponsor person shall vest. If the Second Sponsor Earnout Achievement Date has not occurred within six years of the Closing Date the Founder Shares that were eligible to vest shall not vest and shall be forfeited. Given that the Sponsor Agreement was issued to the acquirers of FoA Equity, and not to the sellers of FoA Equity, the Pre-Closing Equity Holders, the Sponsor Agreement was not accounted for as consideration transferred and did not impact the purchase price paid by Replay. Instead the Sponsor Agreement was accounted for separately from the other provisions of the Transaction Agreement. The Company classified the Sponsor Agreement as an equity transaction. Given the equity classification, the Sponsor shares were measured at a fair value of $38.1 million upon the consummation of the Transaction Agreement, the date of issuance, and will not be subsequently remeasured. Additionally, the settlement of the Sponsor Agreement will be accounted for within equity, if and when the First or Second Earnout Achievement Date occurs. The fair value was determined by using a Monte Carlo simulation to forecast the future daily price per share of Class A Common Stock over a six |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | 37. Equity Class A Common Stock As of December 31, 2022, there were 67,681,856 shares of Class A Common Stock issued, consisting of 63,423,356 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, which is further discussed in Note 36 - 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” if, and when, they become vested. The holders of the 63,423,356 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 Successor year ended December 31, 2022 and nine months ended December 31, 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 1,373,080 and 3,391,635 shares, respectively, of Class A Common Stock and 3,749,057 and 829,222 Class A LLC Units, respectively, to the Company in satisfaction of such settlement. No settlement of restricted stock awards occurred during the Predecessor three months ended March 31, 2021 or for the year ended December 31, 2020 . 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 Successor year ended December 31, 2022 and nine months ended December 31, 2021, the Company elected to retire 2,046,062 and 1,788,447 shares, respectively, offsetting RSUs withheld to fund employee payroll taxes and instead funded those taxes with operating cash. No shares were retired for this purpose during the Predecessor three months ended March 31, 2021 or year ended December 31, 2020 . The future settlement of the Replacement RSUs and Earnout Rights outstanding as of December 31, 2022 (see Note 25 - Equity-Based Compensation) 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 Successor year ended December 31, 2022 and nine months ended December 31, 2021, 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 491,509 and 1,795,197 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 Predecessor three months ended March 31, 2021 or year ended December 31, 2020. Class B Common Stock As of December 31, 2022, there are 14 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 Class A common stock holders are entitled to vote. In December 2022, The Mortgage Opportunity Group, LLC transferred its one share of Class B Common Stock to Libman Family Holdings, LLC, which was subsequently retired. 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 in the Consolidated Statements of Financial Condition. As of December 31, 2022, there were 187,876,657 Class A LLC Units outstanding. Of the 187,876,657 Class A LLC Units outstanding, 63,423,356 are held by the Class A Common Stock shareholders and 124,453,301 are held by the noncontrolling interest of the Company. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 38. Subsequent Events The Company has evaluated subsequent events from the date of the consolidated financial statements of December 31, 2022 through August 18, 2023, the date these consolidated financial statements were issued. No events or transactions were identified that would have an impact on the financial position as of December 31, 2022 or results of operations of the Company for the year ended December 31, 2022 , except as follows: Discontinued Operations In 2022 and 2023, the Company reevaluated the business strategy and implemented a series of transformational actions to restructure the organization into a modern retirement solutions platform. This plan included the wind-down of the previously reported Mortgage Originations segment and sale of the previously reported Commercial Originations and Lenders Services segments as further discussed below. This constitutes a strategic shift that has or will have a major effect on our operations and financial results. As such, the results of our previously reported Mortgage Originations, Commercial Originations, and Lenders Services segments are reported as discontinued operations for all periods presented, in accordance with ASC 205. Mortgage Originations Segment On October 20, 2022, the Board of the Company authorized a plan to discontinue the operations of the Company’s previously reported Mortgage Originations segment, other than the Home Improvement channel . The Disposition commenced in the fourth quarter of 2022 and was completed on February 28, 2023. The operations of the Home Improvement channel are now reported as part of the Company's Retirement Solutions segment. Lender Services Segment On February 1, 2023, the Company's indirect subsidiary, Incenter, entered into an agreement to sell one hundred percent of (i) the issued and outstanding shares of capital stock of ANTIC, a direct subsidiary of Incenter and an indirect subsidiary of the Company, and (ii) the issued and outstanding membership interests of BNT, a direct subsidiary of Incenter and an indirect subsidiary of the Company. The closing of the ANTIC and BNT sale was completed on July 3, 2023. The Company has historically included the operations of ANTIC and BNT in its previously reported Lender Services operating segment. On March 30, 2023, the FoA Equity Board authorized a plan to sell assets making up the remainder of the Company's previously reported Lender Services operating segment, with the exception of its Incenter Solutions LLC operating service subsidiary. The operations of Incenter Solutions LLC are now reported as part of the Company's Corporate and Other segment. The Company sold the remainder of the assets on June 30, 2023 in two separate transactions for an aggregate consideration of $17.5 million which includes $4.8 million in cash and a $12.7 million note receivable. Commercial Originations Segment On February 19, 2023, the Company’s indirect subsidiary, FAH, entered into an agreement to sell certain operational assets of FAM, operating as FACo. This transaction closed on March 14, 2023. The Company has historically included the operations of FACo in its previously reported Commercial Originations operating segment. This transaction did not include FACo’s financial assets as of closing, comprised of loans and securitization assets, which will continue to be sold or otherwise paid in full or liquidated in the ordinary course of business. Following the closing of the FACo transaction, FAM no longer operates in the business of originating business purpose loans to residential real estate investors. Related-Party Promissory Note On January 31, 2023, FoA Equity entered into an amendment to its revolving Working Capital Promissory Notes dated June 14, 2019 with certain funds affiliated with Blackstone Inc. and an entity controlled by Brian L. Libman, to increase the aggregate commitments for revolving borrowings thereunder from $50.0 million to $60.0 million and to extend their maturity from July 31, 2023 to October 31, 2023. Additionally, on March 13, 2023, FoA Equity entered into a subsequent amendment to its revolving Working Capital Promissory Notes to extend their maturity from October 31, 2023 to May 15, 2024. The additional liquidity and extended term provides investment capital for growth initiatives and strategic opportunities currently in process by the Company, as well as other general corporate purposes. The Working Capital Promissory Notes, which are structured with simultaneous draw and paydown terms, are secured by certain tangible assets of the Borrower and bear interest at rate per annum equal to 6.5%. Further, on August 8, 2023, FoA Equity entered into amendments to its revolving working capital promissory notes dated June 14, 2019 (as amended, the “Promissory Notes”) with certain funds affiliated with Blackstone Inc. and an entity controlled by Brian L. Libman, to extend their maturity from May 15, 2024 to November 30, 2024, increase their interest rate from 6.5% per annum to 10% per annum and provide for a future additional increase of their interest rate to 15% per annum effective May 15, 2024. AAG Transaction On December 6, 2022, the Company entered into an agreement described above as the AAG Transaction, which closed on March 31, 2023. The Company completed the acquisition of the assets and liabilities associated with the AAG Transaction for a total purchase consideration of $215.4 million. The Company has determined that the AAG Transaction should be considered an asset acquisition, because substantially all of the fair value of the acquired assets was concentrated in a single group of similar assets. Under the accounting for asset acquisitions, the acquisition is recorded using a cost accumulation and allocation model under which the cost of the acquisition is allocated on a relative fair value basis to the assets acquired and liabilities assumed. Acquisition-related transaction costs are capitalized as a component of the cost of the assets acquired. Consequently, no goodwill was recognized as part of this transaction. On March 31, 2023, in conjunction with the closing of the AAG Transaction, 21,739,132 shares of Company Class A Common Stock were issued to the Investors for $30.0 million. Refer to Note 33 - Related-Party Transactions for additional information. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements comprise the financial statements of FoA and its controlled subsidiaries for the Successor year ended December 31, 2022 and nine months ended December 31, 2021 and the financial statements of FoA Equity and its controlled subsidiaries for the Predecessor period from January 1, 2021 to March 31, 2021 and the year ended December 31, 2020. The consolidated financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for financial statements and pursuant to the accounting and disclosure rules and regulations of the SEC. In the opinion of management, such financial information reflects all normal and recurring adjustments necessary for a fair presentation of the financial position and the results of operations for such periods in accordance with U.S. GAAP. On October 12, 2020, the Company, Replay and FoA Equity entered into the Transaction Agreement pursuant to which Replay agreed to combine with FoA Equity in a series of transactions that resulted in the formation of FoA as a publicly traded company on the New York Stock Exchange ("NYSE"), and FoA controlling FoA Equity (collectively, the "Business Combination"). At the Closing on April 1, 2021 (the "Closing Date"), Replay domesticated into a Delaware corporation and FoA was formed. See Note 5 - Acquisitions for additional information. The consolidated financial statements include the accounts of the Predecessor, prior to the Business Combination, which was determined to be FoA Equity, a limited liability company that was formed in July 2020. Prior to the Business Combination, FoA Equity was a wholly-owned subsidiary of UFG Holdings LLC ("UFG"). FoA Equity owns all of the outstanding equity interests or has a controlling financial interest in FOAF. FAH and Incenter LLC are wholly-owned s ubsidiaries of FOAF, and are included in the consolidated financial statements along with their consolidated operating lending subsidiaries and operating service subsidiaries. See Note 1 - Organization and Description of Business for additional information. |
Liquidity | Liquidity and Going Concern The Company’s financial statements are prepared in accordance with GAAP assuming the Company will continue to operate as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. In accordance with Financial Accounting Standards Board, or the FASB, Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), our management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about our ability to continue as a going concern. For the year ended December 31, 2022, the Company incurred net losses of approximately $715.5 million, including operational losses in its discontinued previously reported Mortgage Originations, Commercial Originations, and Lender Services segments. Revenues generated for 2022 were negatively impacted by macroeconomic factors including persistent high inflation and increased market interest rates. These factors significantly reduced customer demand and compressed margins in our business segments. The Company also observed significantly widened market spreads for assets that we hold for investment at fair value, which combined with higher interest rates, resulted in negative fair value adjustments. These fair value losses recognized in accordance with U.S. GAAP resulted in the Company using cash during 2022 to pay down or repay certain credit facilities. When evaluated in the aggregate, and before consideration of management’s plans, these conditions raise questions as to our ability to meet our obligations and covenants for the twelve-month and a day period from the date of the issuance of the consolidated financial statements. In order to address the conditions noted above, Management has taken certain actions and is implementing the following plans and actions that we believe will address the Company’s liquidity needs over at least the twelve-month and a day period from the date of the issuance of the consolidated financial statements: • Disposal of the Mortgage Origination business was completed as of February 28, 2023. This disposal reduces future operating losses and increases liquidity. • Sale of operating assets in Commercial Originations closed on March 14, 2023. This sale further reduces future operating losses. • Sale of the Company’s remaining commercial loan and other related assets, which increases liquidity. • Extension (executed March 13, 2023) of the Company’s revolving working capital lines of credit through May 15, 2024. • Acquisition of certain business operations (assets and liabilities) of American Advisors Group, is expected to close at the end of the first quarter of 2023. In connection with the closing of the AAG transaction, the Company will pay cash of $10 million and issue approximately $50 million in FoA Equity LLC units as equity consideration to AAG and further, the Company will issue shares to certain existing equity holders in connection with a committed cash equity raise totaling $30 million. The AAG acquisition is expected to increase operating revenues and net cash attributable to its Retirement Solutions and Portfolio Management business segments. Refer to Note 38 - Subsequent Events for further details related to the acquisition. • Sale of Boston National Holdings LLC and Agents National Title Holding Company for a cash purchase price of approximately $100 million (approximately $65 million net of cash on hand), which is expected to close in the second quarter of 2023. Refer to Note 38 - Subsequent Events for further details related to the divestiture. The Company believes management’s plans, as described above, will provide sufficient liquidity to meet the financial obligations and covenants over at least the twelve-month and a day period from the date the consolidated financial statements are issued and that the execution of these plans is probable. |
Use of Estimates | Use of Estimates The preparation of 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates regarding loans held for investment, subject to HMBS related obligations, loans held for investment, subject to nonrecourse debt, loans held for investment, loans held for sale, MSR, HMBS related obligations, and nonrecourse debt are particularly subject to change. Actual results may differ from those estimates and assumptions due to factors such as changes in the economy, interest rates, secondary market pricing, prepayment assumptions, home prices or discrete events affecting specific borrowers, and such differences could be material. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, its controlled subsidiaries and certain variable interest entities where the Company is the primary beneficiary. The Company is deemed to be the primary beneficiary of a variable interest entity ("VIE") when it has both (1) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (2) exposure to benefits and/or losses that could potentially be significant to the entity. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date that the Company ceases to be the primary beneficiary. |
Asset Acquisition and Business Combinations | Asset Acquisitions and Business Combinations In accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), as of the acquisition date, the Company evaluates acquisitions to determine whether the Company has acquired a business or a group of assets. The evaluation includes a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The results of this evaluation impacts whether the Company accounts for an acquisition under business combination or asset acquisition guidance. If the screen test is met, the acquisition is not considered to be a business, and is instead accounted for as an asset acquisition. Under ASC 805, asset acquisitions are measured following a cost accumulation and allocation model, whereby the costs to acquire the assets, including transaction costs, are accumulated and then allocated to the individual assets and liabilities acquired based upon their estimated fair values. No goodwill or bargain purchase gain is recognized in an asset acquisition. The Company applies the acquisition method to all transactions and other events in which the entity obtains control over one or more other businesses. Under business combination, assets acquired and liabilities assumed are measured at fair value as of the acquisition date. Liabilities related to contingent consideration are recognized at the acquisition date and re-measured at fair value in each subsequent reporting period. Goodwill is recognized if the consideration transferred exceeds the fair value of the net assets acquired. Under ASC 805, there is an option to apply push-down accounting, which establishes a new basis for the assets and liabilities of the acquired company based on a “push-down” of the acquirer’s stepped-up basis. The push-down accounting election is made in the reporting period in which the change in control event occurs. FoA elected push-down accounting for the Business Combination and recorded the push-down entries at FoA Equity. Refer to Note 5 - Acquisitions for further information about the Company’s acquisition-related transactions. On December 6, 2022, the Company entered into an asset purchase agreement with AAG/Bloom. The AAG Transaction closed on March 31, 2023. Refer to Note 38 - Subsequent Events for additional information. |
Discontinued Operations And Assets Held For Sale | Discontinued Operations and Assets Held for Sale The Company classifies assets and liabilities as held for sale when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. We also consider whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate it is unlikely significant changes to the plan will be made or the plan will be withdrawn. In accordance with ASC 205, Presentation of Financial Statements ("ASC 205") , we classify operations as discontinued when they meet all the criteria to be classified as held for sale and when the sale represents a strategic shift that will have a major impact on our financial condition and results of operations. The Company considers a component of the entity that is being exited to be discontinued operations when all operations, including wind-down operations, cease. |
VIEs | VIEs The Company has been the transferor in connection with securitizations or asset-backed financing arrangements with special purpose entities ("SPE"), in which the Company has continuing involvement with the underlying transferred financial assets. The Company’s continuing involvement includes acting as servicer for the mortgage loans transferred and retaining beneficial interests in the SPE to which the assets were transferred. The Company evaluates its interests in each SPE for classification as a VIE in accordance with ASC 810-10 Consolidation-Overall . When an SPE meets the definition of a VIE and the Company determines that it is the VIE's primary beneficiary, the Company includes the SPE in its consolidated financial statements. The beneficial interests held consist of residual securities that were retained at the time of securitization. These beneficial interests may obligate the Company to absorb losses of the VIE that could potentially be significant to the VIE, or affords the Company the right to receive benefits from the VIE that could potentially be significant. In addition, when the Company acts as servicer of the transferred assets, the Company retains the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE. When it is determined that the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE, the assets and liabilities of these VIEs are included in the consolidated financial statements of the Company. The Company reassesses its evaluation of an entity as a VIE upon the occurrence of certain reconsideration events as the primary beneficiary determination may change over time as interest in the VIE changes. The Company elected the fair value option provided for by ASC 825-10, Financial Instruments-Overall . This option was applied for the nonrecourse debt issued by the consolidated VIE. See Note 4 - Variable Interest Entities and Securitizations for further discussion of VIEs in which the Company is deemed to be the primary beneficiary. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. These investments are with high quality financial, governmental, or corporate institutions and potentially subject the Company to concentrations of credit risk. December 31, 2022 December 31, 2021 Cash and cash equivalents $ 61,149 $ 103,778 Restricted cash 179,764 322,091 Cash, cash equivalents, and restricted cash of discontinued operations 36,523 37,772 Total cash, cash equivalents, and restricted cash in statement of cash flows $ 277,436 $ 463,641 |
Restricted Cash | Restricted Cash Restricted cash includes amounts specifically designated to repay debt and provide over-collateralization within warehouse facilities and securitized nonrecourse debt obligations, custodial accounts related to the Company’s portfolio of mortgage loans serviced for investors, and funds deposited from prospective borrowers to cover out-of-pocket expenses incurred by the Company in connection with due diligence activities performed during the loan approval process. Certain funds deposited with the Company may be returned to the borrower at the time the loan funds or if the loan does not close. The Company records a liability for these amounts until the loan has closed or a cost has been incurred. |
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value | Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value The Company elected the fair value option provided for by ASC 825-10, Financial Instruments-Overall . A home equity conversion mortgage ("HECM") is a reverse mortgage loan available to homeowners aged 62 or older that allows conversion of a portion of the home’s equity into cash. The HECM loan terms do not have a defined maturity date or a scheduled repayment of principal and interest. Interest rates are tied to an index plus a margin that ranges up to three percentage points. Interest compounds over the life of the loan and is not paid by the borrower until the loan is repaid. HECM loans include a monthly mortgage insurance premium ("MIP") that is payable to FHA. The MIP amount is typically calculated as 1.25% of the mortgage balance for loans originated prior to October 2, 2017 and 0.5% for loans originated after October 2, 2017 and accretes to the borrower’s loan balance over the life of the loan. As the issuer, the Company is responsible for remitting the MIP to FHA. A maturity event will cause the loan to become due and payable. Maturity events include: borrower has passed away and the property is not the principal residence of at least one surviving borrower; borrower has sold or conveyed title of the property to a third party; the property is no longer the principal residence of at least one borrower for reasons other than death; the borrower does not maintain the property as principal residence for a period exceeding 12 months; the borrower fails to pay property taxes and/or insurance and all attempts to rectify the situation have been exhausted; and the property is in disrepair and the borrower has refused or is unable to repair the property. Once a loan has become due and payable, unsecuritized borrower advances cannot be placed into a Government National Mortgage Association ("Ginnie Mae" or "GNMA") HMBS. Generally, the Company recovers such advances (referred to as unpoolable tails) from borrowers, from proceeds of liquidation of collateral or ultimate disposition of the loan, including conveyance of claims to FHA. If the loan is not paid within six months of the maturity event, the Company may proceed with foreclosure on the property. A loan may be satisfied by borrower repayment, sales or appraisal-based claim submissions to the U.S. Department of Housing and Urban Development ("HUD"), and/or foreclosure sale proceeds. If the Company sells the property within six months, it may file a sales-based claim with HUD to recover any shortfall between the sales price of the property and the outstanding loan balance. If the property is not sold within six months, the Company may file an appraisal-based claim with HUD to recover any shortfall between the appraised value and the outstanding loan balance. Once the appraisal based claim is paid by HUD, any subsequent expenses or loss in the property’s value exposes the Company to additional losses that may not be eligible to be recouped through the filing of an additional HUD claim. The Company has determined that HECM loans transferred under the current Ginnie Mae HMBS securitization program do not meet the requirements for sale accounting and are not derecognized upon date of transfer. The Ginnie Mae HMBS securitization program includes certain terms that do not meet the participating interest requirements and require or provide an option for the Company to reacquire the loans prior to maturity. Due to these terms, the transfer of the loans does not meet the requirements of sale accounting. As a result, the Company accounts for HECM loans transferred into HMBS securitizations as secured borrowings and continues to recognize the loans as held for investment, subject to HMBS related obligations, along with the corresponding liability for the HMBS related obligations. No gains or losses are recognized on these transfers of HECM loans into HMBS securitizations. Loans are considered nonperforming upon events such as, 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 not being paid. In addition to having to fund repurchase of these loans out of Ginnie Mae HMBS, the Company also typically earns a lower interest rate and incurs certain non-reimbursable costs during the process of liquidating nonperforming loans. Loans purchased out of Ginnie Mae HMBS are recorded in loans held for investment or loans held for investment, subject to nonrecourse debt, in the Consolidated Statements of Financial Condition at their fair value reflective of proceeds of liquidation of collateral or ultimate disposition of the loan. Loans held for investment, subject to HMBS related obligations, also include claims receivable that have been submitted to HUD awaiting reimbursement. These amounts are recorded net of amounts the Company does not expect to recover through outstanding claims. The yield recognized on loans held for investment, subject to HMBS related obligations, and changes in estimated fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The yield recognized includes the recognition of interest income based on the stated interest rates of the loans that is expected to be collected through conveyance of loans to FHA, repayment by borrower or through disposition of real estate upon foreclosure. See Note 6 - Fair Value for further discussion of valuation of loans held for investment, subject to HMBS related obligations. |
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value | Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value Loans held for investment, subject to nonrecourse debt, at fair value, are loans that were securitized and serve as collateral for the issued nonrecourse debt, including HECM Buyouts, agricultural securitized loans, fix & flip securitized loans, and non-agency reverse mortgages that were securitized into trusts that meet the definition of a VIE and were consolidated or did not qualify for true sale accounting. The Company has determined that it has both the power to direct the activities that most significantly impact the economic performance of the VIE, and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company has elected the fair value option for all loans held for investment and determines the fair value, on a recurring basis, based on discounted cash flow ("DCF") models. The difference between the cost basis of newly originated or acquired loans, and their estimated fair value is recognized in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. See Note 6 - Fair Value for further discussion of valuation of loans held for investment, subject to nonrecourse debt. The yield recognized on loans held for investment, subject to nonrecourse debt, at fair value and changes in estimated fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The yield recognized includes the contractual interest income that is expected to be collected based on the stated interest rates of the loans. |
Loans Held for Investment, at Fair Value | Loans Held for Investment, at Fair Value Loans held for investment, at fair value, consists of certain reverse mortgage and commercial mortgage loans that the Company intends to hold to maturity. The Company has elected the fair value option for all loans held for investment and determines the fair value, on a recurring basis, based on DCF models. These valuations require the use of judgment by the Company and changes in assumptions can have a significant impact on the determination of the loan’s fair value. The difference between the cost basis of newly originated or acquired loans, and their estimated fair value is recognized in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. See Note 6 - Fair Value for further discussion of valuation of loans held for investment. The yield recognized on loans held for investment and changes in estimated fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The yield recognized includes the contractual interest income that is expected to be collected based on the stated interest rates of the loans. Reverse Mortgage Loans Reverse mortgage loans held for investment consists of originated or purchased HECM and non-agency reverse mortgage loans not yet securitized, unsecuritized tails, and certain HECM purchased out of Ginnie Mae HMBS, which the Company intends to hold to maturity. HECM loans and tails that have not yet been securitized into HMBS consist primarily of newly-issued HECM that the Company has either originated or purchased, subsequent borrower draws, and amounts paid by the Company on the borrower's behalf for MIP that have not yet been transferred to a Ginnie Mae securitization. Non-agency reverse mortgage loans are typically designated for homeowners aged 62 or older, with higher priced homes. However, certain non-agency reverse mortgage loan products are designated for homeowners aged 55 or older. The minimum home value is $400 thousand and the maximum loan amount is $4 million. Non-agency reverse mortgage loans are not insured by the FHA and will not be placed into a Ginnie Mae HMBS; however, the Company may transfer or pledge these assets as collateral for securitized nonrecourse debt obligations. The Company, as an issuer of HMBS, is required to repurchase reverse loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the maximum claim amount ("MCA") (referred to as HECM Buyouts). Performing repurchased loans are conveyed to HUD and payment is received from HUD typically within 75 days of repurchase. Nonperforming repurchased loans are generally liquidated through foreclosure, subsequent sale of the real estate owned, and claim submissions to HUD. Loans are considered nonperforming upon events such as, 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 not being paid. In addition to having to fund these repurchases, the Company also typically earns a lower interest rate and incurs certain non-reimbursable costs during the process of liquidating nonperforming loans. Loans purchased out of Ginnie Mae HMBS are recorded in the Consolidated Statements of Financial Condition at their fair value reflective of proceeds of liquidation of collateral or ultimate disposition of the loan. Reverse mortgage loans also include claims receivable that have been submitted to HUD awaiting reimbursement. These amounts are recorded net of amounts the Company does not expect to recover through outstanding claims. Loan origination fees represent an up-front fee charged to a borrower for processing the HECM or non-agency reverse mortgage application and are recorded in fee income in the Consolidated Statements of Operations as they are received when a loan is successfully funded. Costs to originate loans are recognized as incurred and recorded in general and administrative expenses in the Consolidated Statements of Operations. Certain HECM and non-agency reverse mortgage loans originated or acquired by the Company include broker compensation or correspondent fees. These premiums are remitted to the mortgage broker or correspondent lender who acted as the intermediary for the reverse mortgage. Broker compensation and correspondent fees are recorded on a net basis in net fair value gains on loans and related obligations and therefore are not separately presented in the Consolidated Statements of Operations. Commercial Mortgage Loans Commercial mortgage loans held for investment primarily consist of short-term loans for real estate investors and agricultural loans for farmers. |
Loans Held for Sale, at Fair Value | Loans Held for Sale, at Fair Value Loans held for sale, at fair value, represent mortgage loans originated by the Company and held until sold to secondary market investors. The Company primarily originates conventional GSEs, government insured (FHA), and government guaranteed (VA) residential mortgage loans (collectively "residential mortgage loans held for sale") and commercial mortgage loans to owners and investors of single and multi-family residential rental properties ("commercial loans held for sale"). The Company elected the fair value option provided for by ASC 825-10, Financial Instruments-Overall . Loans held for sale are measured at fair value at the time of origination and on a recurring basis thereafter. Gains and losses on loans held for sale are recorded in gain (loss) on sale and other income from loans held for sale, net, in the Consolidated Statements of Operations. The yield recognized includes the contractual interest income that is expected to be collected based on the stated interest rates of the loans. In connection with the Company's election to measure originated loans held for sale at fair value, any fees recognized in relation to originated loans are recognized as they are received and are included in fee income in the Consolidated Statements of Operations. Direct loan origination costs and fees are expensed when incurred and are included in general and administrative expenses in the Consolidated Statements of Operations. Residential Mortgage and Home Improvement Loans Held for Sale Residential mortgage and home improvement loans held for sale are typically warehoused for a period after origination or purchase before sale into the secondary market. Servicing rights are either released upon sale of mortgage loans in the secondary market or retained by the Company. The yield on residential mortgage loans held for sale is recorded in interest income and changes in fair value are recorded in gain (loss) on sale and other income from loans held for sale, net, in the Consolidated Statements of Operations. Commercial Loans Held for Sale Commercial loans held for sale are typically warehoused for a period after origination or purchase before sale into the secondary market. The Company estimates fair value by evaluating a variety of market indicators, including recent sales of similar product types and outstanding commitments, calculated on an aggregate basis. The yield recognized on commercial loans held for sale and changes in estimated fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. |
MSR, at Fair Value | MSR, at Fair Value MSR represent contractual rights to perform specific administrative functions for the underlying loans including specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow funds for the payment of mortgage-related expenses such as taxes and insurance, and otherwise administrating the mortgage loan servicing portfolio. MSR are created through the sale of an originated mortgage loan or purchased from third parties. The unpaid principal balance ("UPB") of the loans underlying the MSR is not included in the Consolidated Statements of Financial Condition. For servicing retained in connection with the securitization of reverse mortgage loans accounted for as secured financings, an MSR is not recognized. The fair value of future servicing revenue net of servicing costs related to reverse mortgage loans is included in the fair value of the underlying loan. The Company follows the fair value measurement method to record the value of MSR in accordance with ASC 860, Transfers and Servicing . Under this method, servicing assets are measured at fair value on a recurring basis with changes in fair value recorded through earnings in the period of the change as a component of fee income in the Consolidated Statements of Operations. The fair value of the MSR is based upon the present value of the expected future net cash flows related to servicing these loans. For MSR that the Company has current commitments to sell to third parties, the fair value is based on the outstanding commitment price. The Company receives a base servicing fee based on the remaining outstanding principal balances of the loans, which are collected from borrowers on a monthly basis. The Company determines the fair value of the MSR by the use of a DCF model that incorporates prepayment speeds, delinquencies, discount rate, ancillary revenues, and other assumptions (including costs to service) that management believes are consistent with the assumptions other similar market participants use in valuing the MSR. The primary risk associated with MSR is the potential reduction in fair value as a result of higher than anticipated prepayments due to loan refinancing prompted, in part, by declining interest rates or government intervention. Conversely, these assets generally increase in value in a rising interest rate environment to the extent that prepayments are slower than anticipated. At times, the Company may utilize derivatives as economic hedges to offset changes in the fair value of the MSR resulting from the actual or anticipated changes in prepayments stemming from changing interest rate environments. There is also a risk of valuation decline due to higher than expected increases in default rates, which the Company does not believe can be effectively managed using derivatives. |
Derivatives and Hedging Activities | Derivatives and Hedging 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 the fair value of mortgage loans and related commitments. The Company uses derivative instruments as part of its overall strategy to manage its exposure to market and price risks primarily associated with fluctuations in interest rates. As a matter of policy, the Company does not use derivatives for speculative purposes. Interest Rate Lock Commitments ("IRLCs") IRLCs represent an agreement to extend credit to a mortgage loan applicant, whereby the interest rate on the loan is set prior to funding. The IRLC binds the Company (subject to the loan approval process) to lend funds to a potential borrower at the specified rate, regardless of whether interest rates have changed between the commitment date and the loan funding date. As such, outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of issuance through the date of loan funding, cancellation or expiration. The Company uses mandatory and best efforts commitments to substantially mitigate these risks. Loan commitments generally range between 30 and 90 days; however, the borrower is not obligated to obtain the loan. The Company is subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs. Historical commitment-to-closing ratios are considered to estimate the quantity of mortgage loans that will fund within the terms of the IRLCs. IRLCs that relate to the origination of a mortgage that will be held for sale upon funding are considered derivative instruments under the derivatives and hedging accounting guidance ASC 815, Derivatives and Hedging ("ASC 815"). Loan commitments that are derivatives are recognized at fair value within discontinued operations in derivative assets or payables and other liabilities, with changes in their fair values recorded in gain (loss) on sale and other income from loans held for sale, net, within discontinued operations. The fair value of the Company’s IRLCs is based upon the estimated fair value of the underlying mortgage loan, adjusted for (i) estimated costs to complete and originate the loan and (ii) the estimated percentage of IRLCs that will result in a closed mortgage loan. The valuation of the Company's IRLCs are based on prices of mortgage-backed securities ("MBS") in the market place and the value of the related mortgage servicing. Forward Loan Sale Commitments The Company is subject to interest rate and price risk on its loans held for sale, at fair value, and IRLCs from the date the IRLC is made until the date the loan is sold. Mandatory commitments which fix the forward sales price that will be realized in the secondary market are used to substantially mitigate the interest rate and price risk to the Company. The Company carefully evaluates all loan sale agreements to determine whether they meet the definition of a derivative under the derivatives and hedging accounting guidance under ASC 815. To mitigate the price risk the Company is exposed to on its outstanding loan commitments, the Company uses “mandatory delivery” forward loan sale commitments to manage the risk of potential interest rate movements and their impact on the value of the underlying mortgage loans. Mandatory delivery contracts that meet the definition of a derivative are accounted for as derivative instruments. Accordingly, forward loan sale commitments are recognized at fair value within discontinued operations in derivative assets or payables and other liabilities with changes in their fair values recorded in gain (loss) on sale and other income from loans held for sale, net, within discontinued operations. The fair value is determined on a recurring basis based on forward prices with dealers in such securities or internally-developed or third party models utilizing observable market inputs. To Be Announced Securities To Be Announced Securities ("TBAs") are "forward delivery" securities considered derivative instruments under derivatives and hedging accounting guidance ASC 815. The Company uses TBAs to protect against the price risk inherent in derivative loan commitments. TBAs are valued based on forward dealer marks from the Company's approved counterparties. The Company utilizes internal and third party market pricing services which compile current prices for instruments from market sources, and those prices represent the current executable price. TBAs are recorded at fair value in the Consolidated Statements of Financial Condition in derivative assets and payables and other liabilities, with changes in fair value recorded in gain (loss) on sale and other income from loans held for sale, net, and net fair value gains on loans and related obligations in the Consolidated Statements of Operations. Best Efforts Commitments The Company uses best efforts commitments with various investors to mitigate the risk associated with loans held for sale, at fair value, and interest rate lock commitments. The Company is exposed to counterparty risk with its best efforts commitments in the event that the counterparty cannot take delivery of the underlying mortgage loan. Best Efforts Commitments are recorded at fair value within discontinued operations in derivative assets and payables and other liabilities, with changes in fair value recorded in gain (loss) on sale and other income from loans held for sale, net, within discontinued operations. Forward MBS Commitments Periodically, the Company uses forward MBS commitments to hedge changes in the value of MSR. MSR are subject to substantial interest rate risk as the mortgage loans underlying the servicing rights permit the borrowers to prepay the loans. The Company may at times enter into economic hedges, which do not qualify as hedges for accounting purposes, including forward contracts to minimize the effects of loss in value of these MSR associated with increased prepayment activity that generally results from declining interest rates. Forward MBS commitments are recorded at fair value in the Consolidated Statements of Financial Condition in derivative assets and payables and other liabilities, with changes in fair value recorded in gain (loss) on sale and other income from loans held for sale, net, in the Consolidated Statements of Operations. The Company treats forward HMBS purchase and sale commitments that have not settled as derivative instruments. Any changes in fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The fair value is determined on a recurring basis based on forward prices with dealers in such securities or internally-developed or third party models utilizing observable market inputs. These forward commitments will be fulfilled with loans not yet securitized and new reverse mortgage loan originations and purchases. Interest Rate Swaps and Futures Contracts The Company also enters into interest rate swaps and futures contracts to offset changes in the value of its non-agency reverse mortgage loans, commercial loans and MSR. The Company has not designated its interest rate swaps and futures contracts as hedges for accounting purposes. These interest rate swaps and futures contracts are accounted for as derivatives and recorded at fair value as derivative assets or as a component of payables and other liabilities in the Consolidated Statements of Financial Condition. Realized and unrealized changes in fair value of interest rate swaps and futures contracts are recorded in gain (loss) on sale and other income from loans held for sale, net, and net fair value gains on loans and related obligations in the Consolidated Statements of Operations. Certain of the trade counterparties contain margin call provisions that, upon notice from the counterparty, require us to transfer cash to eliminate any margin deficit. A margin deficit will generally result from any decline in market value of the assets subject to the related hedging transaction. Margin deposits are presented in other assets, net, in the Consolidated Statements of Financial Condition. See Note 13 - Derivative and Risk Management Activities for further discussion of derivative assets and liabilities. The Company does not account for margin deposits as an offset against the reported derivative assets or liabilities. |
Fixed Assets and Leasehold Improvements, Net | Fixed Assets and Leasehold Improvements, NetFixed assets are depreciated on a straight-line basis over their estimated useful lives. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the related office lease or the expected useful life of the assets. The Company capitalizes certain costs associated with the acquisition of internal-use software and amortizes the software over its estimated useful life, commencing at the time the software is placed in service. The Company reviews fixed assets and leasehold improvements for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Impairment related to fixed assets and leasehold improvements is recorded in impairment of goodwill, intangibles, and other assets in the Consolidated Statements of Operations. |
Goodwil | Goodwill Goodwill is the excess of the purchase price over the fair value of the net assets acquired. Goodwill is not amortized, but is reviewed for impairment annually as of October 1 and monitored for interim triggering events on an ongoing basis. If triggering events occur, which indicate goodwill might be impaired between annual tests, goodwill will be tested when such events occur. In making this assessment, the Company considers a number of factors including, but not limited to, operating results, business plans, economic projections, share price, and anticipated future cash flows. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis |
Intangible Assets, Net | Intangible Assets, NetIntangible assets, net, primarily consist of trade names and broker/customer relationships acquired through various acquisitions and the Business Combination and recorded at their estimated fair value on the date of acquisition. Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense of definite-lived intangibles is included in general and administrative expenses in the Consolidated Statements of Operations. The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Impairment related to intangible assets is recorded in impairment of goodwill, intangibles, and other assets in the Consolidated Statements of Operations. |
Leases | Leases The Company evaluates all leases at inception under ASC 842, Leases ("ASC 842") and classifies the lease as either an operating or a finance lease. The Company currently only has operating leases. Operating lease right-of-use ("ROU") assets represent the Company’s right to use an underlying asset during the lease term. ROU assets are further adjusted for lease incentives. Operating lease expense is recognized on a straight-line basis over the lease term and is recorded in occupancy, equipment rentals, and other office related expenses in the Consolidated Statements of Operations. The Company recognizes variable lease payments associated with the Company’s leases when the variability is resolved. Variable lease payments are recorded in occupancy, equipment rentals, and other office related expenses in the Consolidated Statements of Operations along with expenses arising from fixed lease payments. The Company reviews ROU assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Impairment related to ROU assets is recorded in impairment of goodwill, intangibles, and other assets in the Consolidated Statements of Operations. See Note 21 - Leases for more information. Operating lease liabilities represent the Company’s obligation to make lease payments arising from the terms of the lease. The lease liabilities are initially recognized based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate as of the lease commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available as of the lease commencement date in determining the present value of the lease payments. This incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment and given similar credit risk. The lease term for all of the Company’s leases includes the noncancellable period of the lease plus any additional periods covered by the option to extend (or not to terminate) the lease. The Company includes these options in the lease term when it is reasonably certain of exercising them. ASC 842 provides for policy elections related to leases with a term of 12 months or less and separation of lease components from non-lease components. The Company elected not to recognize lease assets and lease liabilities for leases with a term of 12 months or less and not to separate lease components from non-lease components. |
Other Assets, Net | Other Assets, NetOther assets, net, consist of ROU assets, receivables, net of allowance, retained bonds, at fair value, government guaranteed receivables, prepaid expenses, servicer advances, net of allowance, investments, loans subject to repurchase from Ginnie Mae, debt securities, deposits, receivable from clearing organization, and other. The components of other assets, net, are detailed in |
Debt securities | Debt Securities Debt securities consists of U.S. government securities, securities backed by collateral pools of non-agency mortgages that are not insured by the FHA, and other debt securities. The Company accounts for debt securities in accordance with ASC 320, Investments-Debt and Equity Securities . The Company determines the classification of securities at purchase. The Company classifies debt securities into held-to-maturity, trading, or available-for-sale categories. Debt securities that management has the ability and intent to hold to maturity are classified as held-to-maturity and, unless elected to be carried at fair value, are carried at amortized cost adjusted for amortization of premiums and accretion of discounts amortized over the contractual term of the securities in a method that approximates the interest method. The Company has elected to account for certain debt securities at fair value under the fair value option provisions included in ASC 825, Financial Instruments . The election is made on an instrument-by-instrument basis and is irrevocable. Changes in fair value of these securities are included as a component of net fair value gains on loans and related obligations in the Consolidated Statements of Operations. Receivables, Net of Allowance Receivables, net of allowance, are represented by amounts due from investors and other parties and are stated at the amounts management expects to collect. If the Company expects to collect less than 100% of the recorded receivable balances, an allowance for doubtful accounts is recorded based on the current expected credit loss methodology which includes a combination of historical experience, aging analysis, information on specific balances and reasonable and supportable forecasts. Government Guaranteed Receivables, Net The Company accounts for foreclosed mortgage loans guaranteed by the government as a separate receivable. These amounts are carried at the net amounts the Company expects to receive from the liquidation of the underlying property and any expected claim proceeds from HUD for shortfall on liquidation proceeds. Outstanding HUD claims associated with HECM loans that are collateral for issued and outstanding HMBS may be retained inside the HMBS while the associated HECM loan remains insured by HUD or a HUD claim is outstanding and the HECM loan has not yet reached 98% of the loan's MCA. Subsequent to reaching 98% of the MCA, the Company must purchase the loan out of the HMBS. Servicer Advances, Net of Allowance The Company is required under certain servicing contracts to ensure that property taxes, insurance premiums, foreclosure costs, and various other items are paid in order to preserve the assets being serviced. Generally, the Company recovers such advances from borrowers for reinstated or performing loans, proceeds of liquidation of collateral or ultimate disposition of the loan, credit owners or loan insurers. Investments The Company invests in the equity of other companies in the form of common stock, preferred stock or other in-substance equity interests or an investment in a limited liability company. The Company evaluates its outstanding equity investments in other companies to determine whether the Company is able to demonstrate a controlling financial interest or significant influence. For investments in which the Company is able to exercise significant influence, the Company applies the equity method of accounting. If the investment does not meet the criteria for the use of the equity method of accounting, the investment is accounted for at cost unless an election is made to account for it at fair value. The Company has elected to account for certain of its investments at fair value under the fair value option provisions included in Financial Accounting Standards Board ("FASB") ASC 825, Financial Instruments. See Note 6 - Fair Value for the information regarding the effects of applying the fair value option to the Company's financial instruments in the consolidated financial statements. Equity securities with a readily determinable fair value are required to be measured at fair value, with changes in fair value recognized through net income. Equity securities without readily determinable fair value are carried at cost, less any impairment, plus or minus changes resulting from observable price changes for identical or similar investments. Loans Subject to Repurchase from Ginnie Mae For certain loans that the Company has pooled and securitized with Ginnie Mae, the Company as the issuer has the right to repurchase, with Ginnie Mae's prior authorization, any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once the Company has the right to repurchase a delinquent loan, the Company has effectively regained control over the loan and, under GAAP, must re-recognize the loan in the Consolidated Statements of Financial Condition and establish a corresponding liability regardless of the Company's intention to repurchase the loan. Receivable from Clearing Organization The Company clears all of its proprietary and all of its customer transactions from its broker-dealer transactions through another broker-dealer on a fully disclosed basis. Securities transactions are recorded on the trade date as if they had settled. The related amounts receivable and payable for unsettled securities transactions, along with contractual deposits are recorded in other assets, net, in the Consolidated Statements of Financial Condition. |
HMBS Related Obligations, at Fair Value | HMBS Related Obligations, at Fair Value HMBS related obligations, at fair value, represent the secured borrowing associated with the Company’s securitization of HECM loans where the securitization does not meet the criteria for sale accounting treatment. This liability includes the Company’s obligation to repay the secured borrowing from the FHA insured HECM cash flows and the obligations as issuer and servicer of the HECM loans and HMBS. As an issuer of HMBS, the Company is obligated to service the HECM loan and associated HMBS, which includes funding the repurchase of the HECM loans or pass through of cash due to the holder of the beneficial interests in the Ginnie Mae HMBS upon maturity events and certain funding obligations related to monthly guarantee fees, mortgage insurance proceeds, and partial month interest. As an issuer, 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. The Company is also required to pay off the outstanding remaining principal balance of secured borrowings if certain triggering events are reached prior to the 98% of MCA limit, such as death of borrower and completion of foreclosure. Performing repurchased loans are conveyed to HUD and payment is received from HUD typically within 75 days of repurchase. Nonperforming repurchased loans are generally liquidated through foreclosure, subsequent sale of real estate owned, and claim submissions to HUD. Loans are considered nonperforming upon events such as, 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 not being paid. The Company relies upon its secured financing facilities (see Note 19 - Other Financing Lines of Credit) and operating cash flows, to the extent necessary, to repurchase loans. The timing and amount of the Company’s obligation to repurchase HECM is uncertain as repurchase is predicated on certain factors such as whether or not a borrower event of default occurs prior to the HECM reaching the mandatory repurchase threshold under which the Company is obligated to repurchase the loan. Performing repurchased loans are conveyed to HUD and nonperforming repurchased loans are generally liquidated in accordance with program requirements. In addition to having to fund repurchases, the Company may sustain losses during the process of liquidating the loans. The issuer is also required to fund guarantee fees to Ginnie Mae, MIP to the FHA, and is obligated to fund partial month interest resulting from shortfalls in interest received from borrower payoffs to the holders of the HMBS beneficial interests. Estimated cash flows associated with these obligations are included in the HMBS related obligations, at fair value, in the Consolidated Statements of Financial Condition. The Company has elected to record the HMBS related obligations at fair value. The estimated fair value is generally determined by discounting expected principal, interest, and other servicing or issuer obligation cash flows using an estimated market discount rate that management believes a market participant would consider in determining fair value. See Note 6 - Fair Value for further discussion of valuation of HMBS related obligations. The yield on HMBS related obligations along with any changes in fair value are recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The yield on the HMBS related obligations includes recognition of contractual interest expense based on the stated interest rates of the HMBS beneficial interests. |
Nonrecourse Debt, at Fair Value | Nonrecourse Debt, at Fair Value Nonrecourse debt, at fair value, is debt of consolidated VIE securitization trusts or nonconsolidated funds that provide nonrecourse financing for MSR. The consolidated VIE loans initially transferred to the securitization trust and the MSR designated to nonconsolidated funds serve as collateral for the nonrecourse debt, and the principal and interest cash flows from these loans serve as the sole source of repayment. The Company has elected to measure the outstanding nonrecourse debt at fair value in the Consolidated Statements of Financial Condition with all changes in fair value recorded to net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The yield on nonrecourse debt and any change in fair value are also recorded in net fair value gains on loans and related obligations in the Consolidated Statements of Operations. The yield recognized includes the contractual interest expense based on the stated interest rates of the debt and amortization of any discount at which the related bonds were issued. Reverse Mortgage Loans The Company securitizes certain of its interests in HECM Buyouts 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 the Company with access to liquidity for these assets, ongoing servicing fees, and potential residual returns. The securitizations are callable at or following the optional redemption date as defined in the respective indenture agreements. Commercial Mortgage Loans The Company issues nonrecourse debt securities secured by mortgage loans made to real estate investors. The transactions provide debt security holders the ability to invest in a pool of loans secured by investment real estate. The Company issues nonrecourse debt securities secured by agricultural loans made to investors. The transactions provide the Company with access to liquidity for the agricultural loans and ongoing management fees. Nonrecourse MSR Financing Liability The Company has agreements with third parties and has sold beneficial interests in the servicing fees generated from certain of its originated or acquired MSR. Under these agreements, the Company has agreed to sell to the third parties the right to receive all excess servicing and ancillary fees related to the identified MSR in exchange for an upfront payment equal to the entire purchase price of the acquired or originated MSR. The Company elected to measure the outstanding financings related to the nonrecourse MSR financing liability at fair value as permitted under ASC 825 , Financial Instruments , with all changes in fair value recorded as a charge or credit to fee income in the Consolidated Statements of Operations. The fair value on the nonrecourse MSR financing liability is based on the present value of the future expected discounted cash flows paid to the third parties with the discount rate approximating current market value for similar financial instruments. See Note 33 - Related-Party Transactions for additional information regarding the nonrecourse MSR financing liability. |
Other Financing Lines of Credit | Other Financing Lines of Credit Other financing lines of credit principally consists of variable-rate, asset-backed facilities, primarily warehouse lines of credit, to support the origination of mortgage loans and operations of the Company, which provide creditors a collateralized interest in specific mortgage loans and other Company assets that meet the eligibility requirements under the terms of the facility. The source of repayment of the facilities is typically from the sale or securitization of the underlying loans into the secondary mortgage market. The Company evaluates its capacity needs for warehouse facilities and adjusts the amount of available capacity under these facilities in response to the current mortgage environment and origination needs. Interest expense from these financings is recorded in net interest expense in the Consolidated Statements of Operations. Costs incurred in connection with obtaining financing lines of credit are capitalized to other assets, net, within the Consolidated Statements of Financial Condition and amortized over the term of the related financing as interest expense within the Consolidated Statements of Operations. |
Payables and Other Liabilities | Payables and Other Liabilities Payables and other liabilities consist of accrued compensation expense, accrued liabilities, lease liabilities, deferred purchase price liabilities, Ginnie Mae reverse mortgage buyout payable, derivative liabilities, deferred tax liability, net, estimate of claim losses, repurchase reserves, liability for loans eligible for repurchase from Ginnie Mae, and warrant liability. The components of payables and other liabilities are detailed in Note 20 - Payables and Other Liabilities. Deferred Purchase Price Liabilities As a result of business acquisitions, the Company has recorded contingent liabilities based upon expected future payouts. In accordance with ASC 805, the Company measures any contingent consideration related to business combinations at fair value, and adjusts the reported amount each period with the change in fair value recorded in other, net, in the Consolidated Statements of Operations. Estimate of Claim Losses The Company offers medical, dental, and other benefits to its employees. Certain of these medical benefit plans are self-funded by the Company, whereby the Company pays actual claims made by its employees. Any employee-paid portion of these benefits are withheld by the individual operating entities and remitted back to the Company on a monthly basis. In addition, the Company has a stop-loss insurance policy in place which reimburses the Company for extraordinary claims. The Company estimates incurred but not reported obligations, including any existing and future claims, related to these self-funded benefits on a quarterly basis. The estimated claims are recorded based upon current and future claims expected to be received. In addition, the Company has engaged a third party actuary to validate the reasonableness of the existing estimated claims. The Company is occasionally named as a defendant in claims concerning alleged errors or omissions pertaining to the issuance of title policies or the performance of escrow services. The Company assesses pending and threatened claims to determine whether losses are probable and reasonably estimable in accordance with ASC 450, Contingencies . To the extent losses are deemed probable and reasonably estimable, the Company will establish an accrual for those losses based on historical experience and analysis of specific claim attributes, which is included in discontinued operations. This liability also includes amounts determined on the basis of claim evaluation, estimates for reported losses and estimates for losses incurred but not reported related to the Company's title and settlement services subsidiary. These estimates are continually reviewed and updated. Any adjustments are reflected currently. Accordingly, loss and loss adjustment expenses are charged to income as incurred. Management believes the liability for loss and loss adjustment expenses is adequate; however, the ultimate liability may be in excess of or less than the amounts provided. Repurchase Reserve The Company has exposure to potential mortgage loan repurchases and indemnifications in its capacity as a seller of mortgage loans. The estimation of the liability for probable loss related to repurchase and indemnification obligations considers: (i) specific, nonperforming loans where the Company has received a repurchase or indemnification request and believes it will be required to repurchase the loan or indemnify the investor for any losses; and (ii) an estimate of probable future repurchase or indemnification obligations for standard representation and warranty provisions, early payment defaults, or other recourse obligations. The Company establishes an initial reserve at fair value for expected losses relating to loan sales at the date the loans are derecognized from the Consolidated Statements of Financial Condition, which is recorded as a component of gain (loss) on sale and other income from loans held for sale, net, in the Consolidated Statements of Operations. Warrant Liability The Company accounts for warrants for the Company’s Class A Common Stock at fair value within payables and other liabilities in the Consolidated Statements of Financial Condition because the warrants do not meet the criteria for classification within equity. The warrants are subject to remeasurement at each statement of financial condition date and any change in fair value is recognized within other, net, in the Consolidated Statements of Operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the warrants. Tax Receivable Agreement Obligation In connection with the Business Combination, concurrently with the Closing, the Company entered into Tax Receivable Agreements ("TRA") with certain owners of FoA Equity prior to the Business Combination (the "TRA Parties"). The TRA 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 TRA, including tax benefits attributable to making payments under the TRA. 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 Internal Revenue Service 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 TRA, including the use of an assumed weighted average state and local income tax rate to calculate tax benefits. The payments under the TRA 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 TRA 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, and is remeasured at fair value each reporting period, with any changes in fair value recognized in other, net, in the Consolidated Statements of Operations. The Company records obligations under the TRA 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 is recorded through earnings. During 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 28 - Income Taxes), and has recorded an adjustment through other, net, in the Consolidated Statements of Operations to release the previously estimated contingent TRA liabilities. As of December 31, 2022 and December 31, 2021, the Company had a liability of $3.8 million and $34.6 million, respectively, which is included in deferred purchase price liabilities within payables and other liabilities in the Consolidated Statements of Financial Condition. |
Notes Payable, Net | Notes Payable, Net The Company accounts for outstanding notes payable in accordance with ASC 470, Debt |
Reinsurance | ReinsuranceThe Company writes direct premiums and cedes reinsurance with other insurance companies in the normal course of business. Ceded insurance is comprised of excess-of-loss treaties, which protect against losses over defined amounts. The Company remains liable to the insured for claims under ceded insurance policies in the event the assuming insurance companies are unable to meet their obligations under these contracts. Reinsurance is recorded as a contra-revenue within fee income in discontinued operations. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Recognized revenue, expenses, gains, and losses are included in operations. Certain changes in assets and liabilities, such as foreign currency translation adjustments, are reported as a separate component in the Consolidated Statements of Equity. Such items, along with net income and losses, are components of comprehensive income (loss). The components of other comprehensive income (loss) are reported in the Consolidated Statements of Comprehensive Income (Loss). For the years ended December 31, 2022, 2021, and 2020, the only component of other comprehensive income (loss) was foreign currency translation adjustments, arising from translation of the foreign branch accounts in Manila, Philippines. |
Foreign Currency | Foreign Currency The functional currency of the Company’s international branch is the Philippine peso. Foreign currency denominated assets and liabilities are translated into United States dollars using the exchange rates in effect at the dates of the Consolidated Statements of Financial Condition. Results of operations and cash flows are translated using the average exchange rates throughout the period. The resulting exchange rate translation adjustments are included as a component of equity in accumulated other comprehensive income (loss). |
Revenue Recognition | Revenue Recognition The Company derives its revenues principally from gains on origination and sale of loans, including revenue fees collected from the borrower at closing, loan servicing fees, fair value gains on originated mortgage loans, net of changes in fair value associated with outstanding HMBS and other nonrecourse obligations, other fee income, and net interest income on loans. Net gains on loans held for sale include realized and unrealized gains and losses on loans held for sale, interest rate lock commitments, and related derivatives. The Company sells mortgage loans into the secondary market, including sales to the GSEs on a servicing-released basis, where the loans are sold to an investor with the associated MSR transferred to the investor or to a separate third party investor. In addition, the Company may opportunistically sell loans on a servicing-retained basis, where the loan is sold and the rights to service that loan are retained. Unrealized gains and losses include fair value gains and losses resulting from changes in fair value in the underlying mortgages, interest rate lock commitments, related derivatives, and retained MSR, from the time of origination to the ultimate sale of the loan or other settlement of those financial instruments. Monthly servicing revenue represents income derived by the Company in relation to the servicing of loans. Interest income reflects interest earned on loans held for sale by the Company prior to sale on the secondary market. The interest income collected on such loans is reported net of the interest expense incurred while the loans are carried on the Company’s warehouse lines. Interest income is recognized using the interest method. Loans are placed on non-accrual status when any portion of the principal or interest is 90 days past due or earlier if factors indicate that the ulti mate collectability of the principal or interest is not probable. Interest received from loans on non-accrual status is recorded as income when collected. Loans return to accrual status when the principal and interest become current and it is probable that the amounts are fully collectible. The majority of revenue generated by the Company in connection with originations and servicing are not within the scope of ASC 606, Revenue from Contracts with Customers ("ASC 606"). Based on its evaluation of loan origination fees, the Company has determined that loan origination fees are recorded in fee income in the Consolidated Statements of Operations when a loan is successfully funded, with the related costs recognized in general and administrative expenses when incurred. The primary components of fee income consist of the following: Loan Servicing Fees Loan servicing income represents recurring servicing and other ancillary fees earned for servicing mortgage loans owned by investors. Servicing fees received for servicing mortgage loans owned by investors are based on a stipulated percentage of the outstanding monthly principal balance on such loans, or the difference between the weighted average yield received on the mortgage loans and the amount paid to the investor, less guaranty fees and interest on curtailments. Loan servicing income is receivable only out of interest collected from mortgagors and is recorded as income when collected. Late charges and other miscellaneous fees collected from mortgagors are also recorded as income when collected and are included as a component of fee income in the Consolidated Statements of Operations. In addition to the fees earned from customers, we recognize the gains or losses from changes in fair value of MSR after the sale of the underlying mortgage loans as a component of fee income. To hedge against volatility in the fair value of certain MSR, we enter into various derivative agreements, which may include but are not limited to interest rate swaps and futures contracts. Changes in the fair value of such derivative instruments and the related hedging gains and losses are also included as a component of fee income. Loan Origination Fees Loan origination fees are recorded in fee income in the Consolidated Statements of Operations when earned, with the related costs recognized in general and administrative expenses when incurred at the date of origination. The Company collects from the borrower certain amounts, including underwriting fees, credit reporting fees, loan administration, and appraisal fees. The Company has determined that it is primarily responsible for fulfillment and acceptability for these services, and has discretion in setting the price to the borrower, and therefore these fees should be recognized gross as the Company is the principal for the specified goods and services performed. In addition to the fees above, the Company also acts as agent for certain services for its customers. These services include obtaining flood certification, credit reporting, and inspection fees. In these transactions, the Company will facilitate the providing of the goods or services to prospective borrowers, and collects these amounts from the borrower prior to the services being provided. These amounts are included as a component of fee income within discontinued operations. ANTIC, a subsidiary of the Company, issues title insurance products through a network of title insurance agents throughout the country. Title insurance is a product providing coverage to parties within a real estate transaction according to the respective state regulatory bodies in the United States of America. Insurance premium revenue is recognized in discontinued operations from title insurance contracts when the title agents report the issuance of a title insurance policy. The revenue stream falls under Accounting Standards Update ("ASU") 2016-20, Issue 5: Scope of Topic 606 11 , which is excluded from ASC 606, Revenue from Contracts with Customers . The scope exceptions to ASC 606 clarify that all contracts within the scope of Topic 944, Financial Services-Insurance , are excluded from the scope of Topic 606. Therefore, ANTIC is considered under Insurance Contracts within the scope of ASC 944-605 which reflects premiums from title insurance contracts shall be considered due from policyholders and, accordingly, recognized as revenue on the effective date of the insurance contract because most of the services associated with the contract have been rendered by that time. However, the binder date is appropriate if the insurance entity is legally or contractually entitled to the premium on the binder date. The Company recognizes revenues from services provided in accordance with the five-step process outlined in ASC 606. Revenue is recognized when the performance obligations have been satisfied by transferring control of a product or service to a customer in an amount that reflects the consideration that the Company expects to receive. This revenue can be recognized at a point in time or over time. Other Fee Income Title and Closing Services : The Company generates revenue by providing title agent and closing services for lenders in connection with loan closings. Specific fees are specified within each lenders/financial institutions’ agreements. While the services are generally performed over a 90-day time frame leading up to and finalized before the date of loan closing, no fees are earned and recorded unless the loan closing occurs. Net fees are issued to the Company at the time of the respective loan closing. The specific good and/or service provided to the customer is the issuance of title insurance policy. The risk in the title issuance lies mostly with the title underwriter of the insurance policy and less on the Company, as the agent, thus the Company determined within step 5 of ASC 606 that the Company does not control the goods or service before it is transferred to the customer. The Company recognizes net revenue at a point in time using the output method, specifically as services are completed in connection with the performance of said obligations. There are two performance obligations, the first is the search and examination of the title of a property, which is performed by the Company on behalf of the underwriter. The second is the issuance of a title insurance policy, which is performed by an independent underwriter. The transaction price is allocated between the performance obligations based on the terms of the transaction agreement. These amounts are included as a component of fee income in discontinued operations. Settlement, Appraisal, and Other Services : Settlement, appraisal, and other services include specific real estate transaction services provided to customers to facilitate the origination of mortgage loans. Revenue is recognized when the performance obligations have been satisfied by transferring control of a product or service to a customer in an amount that reflects the consideration that the Company expects to receive. The Company recognizes gross revenue at a point in time using the output method, specifically as services are completed in connection with the performance of said obligations. The Company earns appraisal revenue through the one performance obligation of managing the appraisal process for a consumer to obtain an independent valuation of a property to be mortgaged. The appraisal management company maintains a pool of qualified appraisers, who on behalf of the lender provide an appraisal report for a property. Gross revenue is earned and recognized at a point in time using the output method when each appraisal is performed and completed. These amounts are included as a component of fee income in discontinued operations. There are no variable consideration or significant judgments or estimates when revenue is recognized for this stream in accordance with ASC 606. Transactional Revenue : The Company generates revenue through loan processing activities for in-school students and refinancing existing student loans. Transaction fees are considered revenue from contracts with customers. The Company receives transaction fees for the performance obligation of providing loan application processing and loan facilitation services for the issuing banks. The Company records revenue over time using the output method, specifically when certain milestones are reached in connection with the performance of said obligations. These amounts are included as a component of fee income in discontinued operations. Hedge Advisory Services: The Company provides certain valuation and advisory services, which include the development and implementation of a MSR hedging framework, for various independent mortgage banks. Pursuant to these agreements or other governing documents, the Company's maintenance fee (the "maintenance fee") will generally vary between 0.05% and 0.25% of the assets under management per month. The maintenance fee is typically calculated and paid monthly and recognized in the Consolidated Statements of Operations in the period services are provided. In addition to the Company's maintenance fee, the Company may also be entitled to receive incentive compensation (the "at-risk fee") tied to the performance of the MSR portfolio, which will generally vary between 5% and 15% of net gains. The at-risk fee is typically calculated and paid monthly. The Company recognizes gross revenues over time utilizing the output method. These amounts are included as a component of fee income in the Consolidated Statements of Operations. Other advisory fees: In addition to the management fee and incentive fee, the Company may also receive expense reimbursements from its clients in accordance with applicable advisory or sub-advisory agreements and other governing documents. These may include but are not limited to, reimbursement for expenses associated with legal entity formation and capital raising activities, initial public offering costs, and expenses, fund administration costs, professional fees, securitization costs, custodian and transfer agent costs, and certain other out-of-pocket expenses. To the extent such reimbursements are provided, the Company recognizes these amounts as a component of fee income in the Consolidated Statements of Operations. The Company recognizes gross revenues over time utilizing the output method. MSR Trade Broker: The Company's one performance obligation for these services is providing brokerage services to its clients. Services include analysis, structuring, marketing, and negotiation of transactions for servicing portfolios in the secondary market. The Company earns revenue based on fees resulting from the trade of MSR assets. Trading of MSR assets is done in two ways: 1) co-issue, flow arrangement for the exit of a pipeline on a per loan basis, and 2) bulk, sale of an entire MSR portfolio. Fees on these brokered trades are based upon a dollar per loan or basis points on UPB of underlying loans. Fees are defined in agreements with clients. Service is completed at the settlement date. The Company recognizes gross revenue at a point in time when the services are performed utilizing the output method. These amounts are included as a component of fee income in the Consolidated Statements of Operations. OAS and MSR Valuation Services: The Company has one performance obligation for these services which is providing the analytic valuation services specified in the client-specific statement of work. Services are rendered when valuation results are complete and delivered to the client. The Company recognizes gross revenue at a point in time in which the services are performed using the output method. These amounts are included as a component of fee income in the Consolidated Statements of Operations. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s non-interest revenue streams are largely based on transactional activity, or standard month-end revenue accruals. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers and, therefore, does not experience significant contract balances. The Company did not have any significant contract balances as of December 31, 2022 and 2021. The Company has other revenue streams that are considered insignificant to the overall business. These services are negotiated with customers based on separate contracts for each of the respective services. These revenue streams are also recognized over time using the output method and contain only one performance obligation. There is no significant variable consideration or significant judgments or estimates when revenue is recognized for the Company's revenue streams in accordance with ASC 606. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, put presumptively beyond the reach of the entity, even in bankruptcy, (ii) the transferee (or if the transferee is an entity whose sole purpose is to engage in securitization and that entity is constrained from pledging or exchanging the assets it receives, each third party holder of its beneficial interests) has the right to pledge or exchange the transferred financial assets, and (iii) the Company or its agents does not maintain effective control over the transferred financial assets or third party beneficial interest related to those transferred assets through an agreement to repurchase them before their maturity. When the Company determines that control over the transfer of financial assets has been surrendered, the transaction will be accounted for as a sale in which the underlying mortgage loans are derecognized, and a corresponding gain recorded equal to the proceeds of the cash and any other beneficial interest retained by the Company, less the carrying balance of the transferred mortgage loans. Upon completion of the sale, the recorded gains and losses are reflected in gain (loss) on sale and other income from loans held for sale, net, in the Consolidated Statements of Operations. |
Equity Based Compensation | Equity-Based Compensation Equity-based compensation with service conditions made to employees is measured based on the grant date fair value of the awards and recognized as compensation expense over the period during which the recipient is required to perform services in exchange for the award (the requisite service period). The Company has elected to use a straight-line attribution method for recognizing compensation costs relating to awards that have service conditions only. Forfeitures are recorded as they occur. |
Advertising Cost | Advertising Costs Advertising costs are expensed as incurred. For the year ended December 31, 2022, the Company recorded $13.0 million in advertising expense. For the Successor period from April 1, 2021 to December 31, 2021 and Predecessor period from January 1, 2021 to March 31, 2021, the Company recorded $9.3 million and $2.7 million in advertising expense, respectively. For the year ended December 31, 2020, the Company recorded $12.5 million in advertising and related expenses, which are included in general and administrative expenses in the Consolidated Statements of Operations for all periods. |
Income Taxes | Income Taxes Prior to the Business Combination, a portion of FoA Equity’s earnings were subject to certain U.S. federal and state taxes. Subsequent to the Business Combination, the portion of earnings allocable to FoA is subject to corporate level tax rates at the federal, state, and local levels. Therefore, the amount of income taxes recorded prior to the Business Combination are not representative of the expenses expected subsequent to the Business Combination. The computation of the effective tax rate and provision (benefit) at each period requires the use of certain estimates and significant judgments including, but not limited to, the expected operating income for the year, projections of the proportion of income that is subject to tax, permanent differences between the Company’s GAAP earnings and taxable income, and the likelihood of recovering deferred tax assets existing as of the statement of financial condition date. The estimates used to compute the provision (benefit) for income taxes may change throughout the year as new events occur, additional information is obtained or as tax laws and regulations change. Accordingly, the effective tax rate for future periods may vary materially. The Company accounts for income taxes pursuant to the asset and liability method, which requires it to recognize current tax liabilities or receivables for the amount of taxes it estimates are payable or refundable for the current year, deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. |
Contingencies | ContingenciesThe Company evaluates contingencies based on information currently available and will establish accruals for those matters when a loss contingency is considered probable, and the related amount is reasonably estimable. For matters where a loss is believed to be reasonably possible but not probable, no accrual is established, but the nature of the loss contingency and an estimate of the reasonably possible range of loss in excess of amounts accrued, when such estimate can be made, is disclosed. In deriving an estimate, the Company is required to make assumptions about matters that are, by their nature, highly uncertain. The assessment of loss contingencies, including legal contingencies, involves the use of critical estimates, assumptions, and judgments. Whenever practicable, the Company consults with outside experts, including legal counsel and consultants, to assist with the gathering and evaluation of information related to contingent liabilities. It is not possible to predict or determine the outcome of all loss contingencies. Accruals are periodically reviewed and may be adjusted as circumstances change. See Note 24 - Commitments and Contingencies for further discussion. |
Seller Earnout | Seller Earnout The equity owners of FoA Equity prior to the Closing are entitled to receive an earnout exchangeable for Class A Common Stock if, at any time during the six years following Closing, the volume-weighted average price (the “VWAP”) of Class A Common Stock with respect to a trading day is greater than or equal to $12.50 for any 20 trading days within a consecutive 30-trading-day period ("First Earnout Achievement Date"), 50% of the earnout units issued to sellers (in conjunction with the Sponsor shares defined below, the “Earnout Securities”) will be issued; and if, at any time during the six years following Closing, the VWAP is greater than or equal to $15.00 for any 20 trading days within a consecutive 30-trading-day period ("Second Earnout Achievement Date"), the remaining 50% of the Earnout Securities will be issued. The seller earnout is accounted for as contingent consideration and classified as equity. The seller earnout was measured at fair value upon the consummation of the Business Combination, the date of issuance, and is not subsequently remeasured. The settlement of the seller earnout will be accounted for within equity if and when the First or Second Earnout Achievement Date occurs. |
Sponsor Earnout | Sponsor Earnout The Company classified the Sponsor Earnout Agreement as an equity transaction measured at fair value upon the consummation of the Business Combination, the date of issuance, and is not subsequently remeasured. Additionally, the settlement of the Sponsor Earnout Agreement will be accounted for within equity if and when the First or Second Sponsor Earnout Achievement Date occurs. See Note 37 - Equity for additional information. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest represents the Company's noncontrolling interest in consolidated subsidiaries which are not attributable, directly or indirectly, to the controlling Class A Common Stock ownership of the Company. Net income (loss) is reduced by the portion of net income (loss) that is attributable to noncontrolling interests as well as special allocations related to the Amended and Restated Long-Term Incentive Plan (“A&R MLTIP”) as defined in the FoA Equity LLC Agreement. |
Earnings Per Share | Earnings Per Share Basic net loss per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding during the Successor periods. Diluted net loss 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 equity-based compensation awards outstanding during the Successor periods. For the Predecessor periods, FoA Equity's capital structure consisted of a single class of outstanding membership units which were held by one member, UFG. Therefore, the Company omitted earnings per unit for the Predecessor periods presented due to the limited number of LLC unit holders. |
Reclassifications | Reclassifications Certain amounts from the prior year consolidated financial statements have been reclassified to conform to the current year financial presentation. |
Recently Adopted Accounting Guidance and Recently Issued Accounting Guidance, Not Yet Adopted | Recently Issued Accounting Guidance, Not Yet Adopted as of December 31, 2022 Standard Description Date of Planned Adoption Effect on 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 ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 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 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 December 2022, the FASB issued ASU 2022-06 that defers the sunset date for applying the reference rate reform relief in Topic 848 to December 31, 2024 (originally December 31, 2022), thereby extending the period over which entities can apply the guidance in ASU 2020-04, 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.” TBD This ASU is effective from March 12, 2020 through December 31, 2024. The Company continues to monitor the impact associated with reference rate reform, and will apply the amendments in these updates 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 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 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 consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. These investments are with high quality financial, governmental, or corporate institutions and potentially subject the Company to concentrations of credit risk. December 31, 2022 December 31, 2021 Cash and cash equivalents $ 61,149 $ 103,778 Restricted cash 179,764 322,091 Cash, cash equivalents, and restricted cash of discontinued operations 36,523 37,772 Total cash, cash equivalents, and restricted cash in statement of cash flows $ 277,436 $ 463,641 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 December 31, 2021 Assets Cash and cash equivalents $ 36,212 $ 37,460 Restricted cash 311 312 Loans held for sale, at fair value 141,994 1,894,222 Derivative assets 676 24,417 Fixed assets and leasehold improvements, net 9,884 16,471 Intangible assets, net 77,436 260,727 Other assets, net 46,847 85,962 Assets of discontinued operations $ 313,360 $ 2,319,571 Liabilities Other financing lines of credit $ 127,735 $ 1,816,805 Payables and other liabilities 99,379 211,053 Liabilities of discontinued operations $ 227,114 $ 2,027,858 The following table summarizes the major components of net income (loss) from discontinued operations for the dates indicated (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Revenues Gain on sale and other income from loans held for sale, net $ 216,949 $ 528,725 $ 286,269 $ 1,168,803 Net fair value gains on loans and related obligations 14,705 50,729 5,465 15,571 Fee income 280,315 344,379 124,824 357,339 Net interest income: Interest income 41,598 41,591 12,511 41,855 Interest expense (33,088) (34,462) (11,656) (40,046) Net interest income 8,510 7,129 855 1,809 Total revenues 520,479 930,962 417,413 1,543,522 Expenses Salaries, benefits, and related expenses 456,382 601,300 208,256 753,236 Occupancy, equipment rentals, and other office related expenses 21,274 17,620 6,677 25,441 General and administrative expenses 252,733 260,305 91,149 279,736 Total expenses 730,389 879,225 306,082 1,058,413 Impairment of goodwill, intangibles, and other assets (182,981) (954,853) — — Other, net 3,839 3,458 151 — Net income (loss) from discontinued operations before income taxes (389,052) (899,658) 111,482 485,109 Provision (benefit) for income taxes from discontinued operations 608 (13,489) 1,119 2,194 Net income (loss) from discontinued operations (389,660) (886,169) 110,363 482,915 Net income (loss) attributable to noncontrolling interest from discontinued operations (263,396) (621,990) 201 1,274 CRNCI from discontinued operations — — 1,119 (4,129) Net income (loss) from discontinued operations attributable to controlling interest $ (126,264) $ (264,179) $ 109,043 $ 485,770 The Consolidated Statements of Cash Flows for the dates indicated below included the following material activities related to discontinued operations (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Gain on sale and other income from loans held for sale, net $ 221,121 $ 534,092 $ 286,447 $ 1,169,147 Unrealized fair value changes on loans, related obligations, and derivatives 14,705 50,729 5,465 15,571 Impairment of goodwill, intangibles, and other assets 182,981 954,853 — — Depreciation and amortization 22,963 19,429 2,713 10,859 Acquisition of fixed assets 5,787 7,690 2,622 6,915 |
Variable Interest Entities an_2
Variable Interest Entities and Securitizations (Tables) | 12 Months Ended |
Dec. 31, 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 Consolidated Statements of Financial Condition, and excludes intercompany balances, except for retained bonds and beneficial interests (in thousands): December 31, 2022 December 31, 2021 ASSETS Restricted cash $ 173,714 $ 311,652 Loans held for investment, subject to nonrecourse debt, at fair value 7,340,528 6,099,607 Other assets, net 75,977 67,593 TOTAL ASSETS $ 7,590,219 $ 6,478,852 LIABILITIES Nonrecourse debt, at fair value $ 7,479,918 $ 6,088,298 Payables and other liabilities 757 428 TOTAL VIE LIABILITIES 7,480,675 6,088,726 Retained bonds and beneficial interests eliminated in consolidation (304,061) (231,229) TOTAL CONSOLIDATED LIABILITIES $ 7,176,614 $ 5,857,497 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of consideration transferred, noncontrolling interest equity value, assets acquired, and liabilities assumed in conjunction with the Business Combination (in thousands): Consideration transferred: Total cash consideration $ 342,270 Blocker rollover equity 221,811 Seller earnout contingent consideration (1) 160,272 Tax receivable agreement obligations to the seller 31,950 Total consideration transferred 756,303 Noncontrolling interest 1,658,545 Total equity value $ 2,414,848 Assets acquired: Cash and cash equivalents $ 336,075 Restricted cash 305,292 Loans held for investment, subject to HMBS related obligations, at fair value 10,071,192 Loans held for investment, subject to nonrecourse debt, at fair value 5,291,443 Loans held for investment, at fair value 1,100,544 Loans held for sale, at fair value 2,140,361 MSR, at fair value 267,364 Fixed assets and leasehold improvements, net 26,079 Intangible assets, net (2) 717,700 Other assets, net 404,864 Total assets acquired $ 20,660,914 Liabilities assumed: HMBS related obligations, at fair value $ 9,926,131 Nonrecourse debt, at fair value 5,227,942 Other financing lines of credit 3,340,345 Payables and other liabilities 669,048 Notes payable, net 353,924 Total liabilities assumed 19,517,390 Net identifiable assets acquired 1,143,524 Goodwill (3) $ 1,271,324 (1) Represents the fair market value of earnout shares issued to Sellers, which will be settled with shares of Class A Common Stock and is accounted for as equity classified contingent consideration. (2) Intangible assets were identified that met either the separability criterion or contractual legal criterion. The indefinite-lived trade names and definite-lived trade names intangible assets represent the values of all the Company’s trade names. The broker/customer relationships intangible asset represents the existing broker/customer relationships. (3) Goodwill represents the excess of the gross consideration transferred over the fair value of the underlying net tangible and identifiable intangible assets acquired. Goodwill represents future economic benefits arising from acquiring FoA Equity, primarily due to its strong market position and its assembled workforce that are not individually identified and separately recognized as intangible assets. Approximately $85.2 million of the goodwill recognized was expected to be deductible for income tax purposes at the acquisition date. Identifiable intangible assets Useful life Indefinite-lived trade names $ 178,000 N/A Definite-lived trade names 8,800 10 Broker/customer relationships 530,900 8-15 Total $ 717,700 The following table sets forth the fair values of the assets acquired in connection with the RAI Transaction (in thousands): Acquisition date fair value Loans held for sale, at fair value $ 35,226 Intangible assets - Technology 1,890 Goodwill 5,627 Other assets, net 753 Net assets acquired $ 43,496 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information presents the results of operations as if the Business Combination had occurred on January 1, 2020. The unaudited pro forma results may not necessarily reflect the actual results of operations that would have been achieved nor are they necessarily indicative of future results of operations. For the year ended December 31, 2021 2020 Pro forma revenues $ 1,736,999 $ 1,777,444 Pro forma net (loss) income $ (1,173,481) $ 295,136 Pro forma net (loss) income attributable to controlling interest $ (344,687) $ 70,411 Pro forma net (loss) income attributable to noncontrolling interest $ (828,795) $ 224,725 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement inputs and valuation techniques | 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. Instrument Valuation techniques Classification of Fair Value Hierarchy Assets Loans held for investment, subject to HMBS related obligations (1) HECM loans - securitized into Ginnie Mae HMBS These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the loan portfolio using conditional prepayment rate ("CPR"), loss frequency and severity, borrower mortality, borrower draw, and discount rate assumptions. Level 3 Loans held for investment, subject to nonrecourse debt (1) HECM buyouts - securitized (nonperforming) These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using CPR, loss frequency, loss severity, and discount rate assumptions. Level 3 HECM buyouts - securitized (performing) These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using weighted average remaining life ("WAL"), CPR, loss severity, and discount rate assumptions. Level 3 Non-agency reverse mortgage - securitized These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using WAL, loan to value ("LTV"), CPR, loss severity, home price appreciation ("HPA"), and discount rate assumptions. Level 3 Fix & flip mortgage loans This product is valued using a discounted cash flow model utilizing prepayment rate (single monthly mortality or "SMM"), discount rate, and loss rate assumptions. Level 3 (1) The Company aggregates loan portfolios based on the underlying securitization trust and values these loans using these aggregated pools. The range of inputs provided is based on the range of inputs utilized for each securitization trust. Loans held for investment Inventory buy-outs 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 CPR, loss frequency, loss severity, and discount rate. 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. Level 3 Non-agency reverse mortgage 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 primary assumptions utilized in valuing the loans include LTV, CPR, loss severity, HPA, and discount rate. Level 3 Fix & flip mortgage loans This product is valued using a DCF model with SMM, discount rate, and loss rate assumptions. Level 3 Agricultural loans The product is valued using a DCF model with discount rate, prepayment rate, and default rate assumptions. Level 3 Loans held for sale Residential mortgage loans 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. Level 2 Single Rental Loan ("SRL") This product is valued using a DCF model utilizing CPR, discount rate, and constant default rate ("CDR") assumptions. Level 3 Portfolio loans This product is valued using a DCF model utilizing CPR, discount rate, and CDR assumptions. Level 3 Mortgage Servicing Rights MSR The Company valued MSR internally through a DCF analysis and calculated using a pricing model. This pricing model is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions such as discount rate and weighted average CPR. Level 3 Derivative assets/liabilities Loan purchase commitments ("LPCs") This product is valued based on current market prices for HMBS. Level 2 Forward MBS and TBAs This product is valued using forward dealer marks from the Company's approved counterparties, forward prices with dealers in such securities, or internally-developed third party models utilizing observable market inputs. Level 2 Interest rate swaps and futures contracts This product is valued using quoted market prices. Level 1 Other assets Retained bonds Management obtains third party valuations to assess the reasonableness of the fair value calculations provided by the internal valuation model. The primary assumptions utilized include weighted average life remaining and discount rate. Level 3 Investments 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 that 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. Level 3 Purchase Commitments - reverse mortgage loans Purchase commitments are valued based on the value of the underlying loan. These loans are valued based on an expected margin on sale of 3.00%. Level 3 Liabilities HMBS related obligations HMBS related obligations 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, as well as, 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 CPR and discount rates. Level 3 Nonrecourse debt Nonrecourse reverse mortgage loans financing liability 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 WAL, CPR, and discount rates. Level 3 Nonrecourse commercial loan financing liability The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The primary assumptions utilized include WAL, SMM, 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. Level 3 Nonrecourse MSR financing liability Consistent with the underlying MSR, fair value is derived through a DCF analysis and calculated using a pricing model. This pricing model is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions including CPR and discount rate. Level 3 Deferred purchase price liabilities Deferred purchase price liabilities These are measured using a present value of future payments utilizing discount rate assumptions. Level 3 TRA obligation The fair value 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, and a discount rate. Level 3 Warrant liability Warrants The warrants are publicly traded and are valued based on the closing market price of the applicable date of the Consolidated Statements of Financial Condition. Level 1 December 31, 2022 December 31, 2021 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Assets Loans held for investment, subject to HMBS related obligations Conditional repayment rate NM 21.9 % NM 20.8 % Loss frequency NM 4.1 % NM 4.5 % Loss severity 2.4% - 12.1% 2.7 % 3.1% - 7.7% 3.3 % Discount rate NM 5.0 % NM 2.4 % Average draw rate NM 1.1 % NM 1.1 % Loans held for investment, subject to nonrecourse debt: HECM buyouts - securitized (nonperforming) Conditional repayment rate NM 39.2 % NM 41.2 % Loss frequency 23.1% - 100.0% 51.7 % 25.0% - 100% 59.5 % Loss severity 2.4% - 12.1% 5.2 % 3.1% - 7.7% 4.3 % Discount rate NM 8.7 % NM 4.1 % HECM buyouts - securitized (performing) WAL (in years) NM 8.0 NM 9.0 Conditional repayment rate NM 15.2 % NM 13.3 % Loss severity 2.4% - 12.1% 4.8 % 3.1% - 7.7% 7.7 % Discount rate NM 8.2 % NM 3.7 % December 31, 2022 December 31, 2021 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Non-agency reverse mortgage loans - securitized WAL (in years) NM 9.7 NM 7.5 LTV 0.0% - 74.7% 43.1 % 0.1% - 64.7% 43.4 % Conditional repayment rate NM 14.3 % NM 18.6 % Loss severity NM 10.0 % NM 10.0 % HPA (10.1)% - 7.3% 3.8 % (4.6)% - 14% 4.7 % Discount rate NM 7.1 % NM 3.6 % Fix & flip mortgage loans - securitized Prepayment rate (SMM) NM 11.2 % NM 14.1 % Discount rate NM 17.5 % NM 5.7 % Loss rate NM 0.5 % NM 0.6 % Loans held for investment: Inventory buy-outs Conditional repayment rate NM 41.3 % NM 43.2 % Loss frequency NM 47.6 % NM 59.4 % Loss severity 2.4% - 12.1% 5.6 % 3.1% - 7.7% 3.8 % Discount rate NM 8.7 % NM 4.1 % Non-agency reverse mortgage loans WAL (in years) NM 12.0 NM 9.2 LTV 0.1% - 67.9% 36.4 % 0.2% - 68.7% 47.8 % Conditional repayment rate NM 13.8 % NM 14.8 % Loss severity NM 10.0 % NM 10.0 % HPA (10.1)% - 7.3% 3.6 % (4.6)% - 14.0% 4.4 % Discount rate NM 7.1 % NM 3.6 % Fix & flip mortgage loans Prepayment rate (SMM) NM 9.5 % NM 11.9 % Discount rate 16.3% - 25.8% 16.6 % 5.7% - 10.0% 5.9 % Loss rate NM 0.2 % NM 0.4 % Agricultural loans Discount rate NM 9.7 % NM 4.8 % Prepayment rate (SMM) 11.0% - 100.0% 11.8 % 9.0% - 100.0% 22.1 % Default rate (CDR) 0.0% - 1.0% 0.9 % 0.0% - 0.9% 0.9 % Loans held for sale: SRL Prepayment rate (CPR) 18.5% - 25.0% 19.7 % 1.0% - 17.1% 14.2 % Discount rate NM 8.3 % NM 3.3 % Default rate (CDR) NM 1.0 % 1.0% - 57.2% 2.2 % Portfolio loans Prepayment rate (CPR) 0.0% - 24.3% 18.4 % 0.0% - 14.5% 8.7 % Discount rate NM 10.9 % NM 3.9 % December 31, 2022 December 31, 2021 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Default rate (CDR) NM 1.0 % 1.0% - 54.0% 3.2 % Mortgage Servicing Rights Weighted average prepayment speed (CPR) 1.0% - 8.5% 6.4 % 0.0% - 12.8% 8.3 % Discount rate NM 10.1 % NM 8.5 % Other assets: Retained bonds WAL (in years) 2.4 - 24.1 4.9 2.6 - 25.0 5.1 Discount rate (16.8)% - 12.2% 6.9 % 1.9% - 8.2% 2.7 % Liabilities HMBS related obligations Conditional repayment rate NM 21.8 % NM 20.8 % Discount rate NM 5.0 % NM 2.3 % Nonrecourse debt: Reverse mortgage loans Performing/Nonperforming HECM securitizations WAL (in years) 1.5 - 1.6 1.6 0.2 - 0.8 0.5 Conditional repayment rate 19.9% - 22.2% 21.1 % 30.8% - 54.4% 43.5 % Discount rate NM 8.6 % NM 2.3 % Securitized non-agency reverse WAL (in years) 0.2 - 11.7 6.4 1.0 - 2.3 1.6 Conditional repayment rate 8.3% - 46.1% 16.5 % 18.4% - 35.9% 28.2 % Discount rate NM 7.2 % NM 2.2 % Nonrecourse commercial loan financing liability WAL (in months) NM 4.3 NM 4.0 Weighted average prepayment speed (SMM) NM 15.3 % NM 14.0 % Discount rate NM 14.5 % NM 3.1 % Nonrecourse MSR financing liability Weighted average prepayment speed (CPR) 0.8% - 9.2% 5.1 % 2.0% - 11.0% 7.7 % Discount rate 10.0% - 12.0% 10.2 % 8.1% - 10.1% 9.1 % Deferred purchase price liabilities Deferred purchase price liabilities Discount rate NM 8.0 % NM 35.0% TRA obligation Discount rate NM 48.3 % NM 13.5 % |
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): December 31, 2022 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 11,114,100 $ — $ — $ 11,114,100 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 7,065,477 — — 7,065,477 Fix & flip mortgage loans 389,161 — — 389,161 Loans held for investment: Reverse mortgage loans 771,724 — — 771,724 Fix & flip mortgage loans 127,469 — — 127,469 Agricultural loans 8,805 — — 8,805 Loans held for sale: Residential mortgage loans 12,123 — 12,123 — SRL 69,187 — — 69,187 Portfolio 43,272 — — 43,272 Fix and flip 49,402 — — 49,402 MSR 95,096 — — 95,096 Derivative assets: LPCs, forward MBS, and TBAs 907 — 907 — Interest rate swaps and futures contracts 771 771 — — Other assets: Purchase commitments - reverse mortgage loans 9,356 — — 9,356 Retained bonds 46,439 — — 46,439 Total assets $ 19,803,289 $ 771 $ 13,030 $ 19,789,488 Liabilities HMBS related obligations $ 10,996,755 $ — $ — $ 10,996,755 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,175,857 — — 7,175,857 Nonrecourse commercial loan financing liability 106,758 — — 106,758 Nonrecourse MSR financing liability 60,562 — — 60,562 Deferred purchase price liabilities: Deferred purchase price liabilities 137 — — 137 TRA obligation 3,781 — — 3,781 Derivative liabilities: Interest rate swaps and futures contracts 385 385 — — Warrant liability 1,117 1,117 — — Total liabilities $ 18,345,352 $ 1,502 $ — $ 18,343,850 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 8,730 — 8,730 — SRL 98,852 — — 98,852 Portfolio 50,574 — — 50,574 MSR 427,942 — — 427,942 Derivative assets: LPCs, forward MBS, and TBAs 1,619 — 1,619 — 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 $ 18,477,741 $ 22,834 $ 10,349 $ 18,444,558 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 137 — — 137 TRA obligation 29,380 — — 29,380 Derivative liabilities: Forward MBS and TBAs 56 — 56 — Interest rate swaps and futures contracts 24,993 24,993 — — Warrant liability 5,497 5,497 — — Total liabilities $ 16,593,663 $ 30,490 $ 56 $ 16,563,117 |
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 Year ended December 31, 2022 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Retained bonds Purchase commitments Investments Beginning balance $ 11,587,382 $ 6,218,194 $ 149,426 $ 427,942 $ 55,614 $ — $ 6,000 Total gain or losses included in earnings 190,714 (744,123) (15,213) 22,989 (8,668) 9,356 (6,000) Purchases, settlements, and transfers: Purchases and additions, net 6,165,003 117,010 1,119,578 122,362 — — — Sales and settlements (2,178,245) (1,847,648) (1,103,492) (478,197) (507) — — Transfers in/(out) between categories (3,742,756) 3,711,205 11,562 — — — — Ending balance $ 12,022,098 $ 7,454,638 $ 161,861 $ 95,096 $ 46,439 $ 9,356 $ — Successor Assets Nine months ended December 31, 2021 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Retained Bonds Investments Beginning balance $ 11,171,736 $ 5,291,444 $ 118,396 $ 267,364 $ — $ 9,470 Total gain or losses included in earnings 272,802 71,126 532 (15,200) 1,344 (3,470) Purchases, settlements, and transfers: Purchases and additions, net 4,438,629 80,542 879,172 178,279 54,752 — Sales and settlements (2,235,651) (1,275,674) (857,503) (2,501) (482) — Transfers in/(out) between categories (2,060,134) 2,050,756 8,829 — — — Ending balance $ 11,587,382 $ 6,218,194 $ 149,426 $ 427,942 $ 55,614 $ 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 MSR Investments Beginning balance $ 10,659,984 $ 5,396,167 $ 142,226 $ 180,684 $ 18,934 Total gain or losses included in earnings 132,499 (37,757) 2,316 20,349 (9,464) Purchases, settlements, and transfers: Purchases and additions, net 1,143,109 21,064 164,450 74,978 — Sales and settlements (534,738) (360,128) (147,687) (8,647) — Transfers in/(out) between categories (229,118) 272,098 (42,909) — — Ending balance $ 11,171,736 $ 5,291,444 $ 118,396 $ 267,364 $ 9,470 Predecessor Assets For the year ended December 31, 2020 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Debt Securities Investments Beginning balance $ 10,894,577 $ 3,511,212 $ 164,830 $ 2,600 $ 102,260 $ 20,508 Total gain or losses included in earnings 627,251 304,663 (992) 4,562 2,288 (5,512) Purchases, settlements, and transfers: Purchases and additions, net 3,616,667 136,838 348,951 173,522 24,489 3,938 Sales and settlements (1,536,977) (1,285,902) (554,141) — (129,037) — Transfers in/(out) between categories (2,941,534) 2,729,356 183,578 — — — Ending balance $ 10,659,984 $ 5,396,167 $ 142,226 $ 180,684 $ — $ 18,934 |
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 Year ended December 31, 2022 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability TRA Liability Beginning balance $ (10,422,358) $ (5,857,069) $ (111,738) $ (142,435) $ (29,380) Total gain or losses included in earnings (29,015) 316,963 2,527 (8,162) 25,599 Purchases, settlements, and transfers: Purchases and additions, net (2,870,650) (3,202,519) (205,746) (14,196) — Settlements 2,325,268 1,566,768 208,199 104,231 — Ending balance $ (10,996,755) $ (7,175,857) $ (106,758) $ (60,562) $ (3,781) Successor Liabilities Nine months ended December 31, 2021 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability TRA Liability Beginning balance $ (9,926,132) $ (5,205,892) $ — $ (22,051) $ — Total gain or losses included in earnings 62,306 (74,333) 1,019 (2,998) 2,570 Purchases, settlements, and transfers: Purchases and additions, net (2,491,919) (1,813,458) (176,863) (117,386) (31,950) Settlements 1,933,387 1,236,614 64,106 — — Ending balance $ (10,422,358) $ (5,857,069) $ (111,738) $ (142,435) $ (29,380) Predecessor Liabilities Three months ended March 31, 2021 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse MSR financing liability Beginning balance $ (9,788,668) $ (5,257,754) $ (14,088) Total gain or losses included in earnings (41,434) (30,770) 390 Purchases, settlements, and transfers: Purchases and additions, net (602,172) (575,668) (8,353) Settlements 506,142 658,300 — Ending balance $ (9,926,132) $ (5,205,892) $ (22,051) Predecessor Liability For the year ended December 31, 2020 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse MSR financing liability Beginning balance $ (9,320,209) $ (3,490,196) $ — Total gain or losses included in earnings (359,951) (294,802) 798 Purchases, settlements, and transfers: Purchases and additions, net (2,051,953) (3,110,368) (15,101) Settlements 1,943,445 1,637,612 215 Ending balance $ (9,788,668) $ (5,257,754) $ (14,088) |
Summary of the fair value and unpaid principal balance ("UPB") | Presented in the tables below are the fair value and UPB, at December 31, 2022 and December 31, 2021, of financial assets and liabilities for which the Company has elected the fair value option (in thousands): December 31, 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 $ 11,114,100 $ 10,719,000 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 7,065,477 7,240,125 Commercial mortgage loans 389,161 405,970 Loans held for investment: Reverse mortgage loans 771,724 724,800 Commercial mortgage loans 136,274 143,373 Loans held for sale: Residential mortgage loans 12,123 15,529 Commercial mortgage loans 161,861 173,112 Other assets: Purchase commitments - reverse mortgage loans 9,356 9,356 Liabilities at fair value under the fair value option HMBS related obligations 10,996,755 10,719,000 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,175,857 7,819,992 Nonrecourse MSR financing liability 60,562 60,562 Nonrecourse commercial loan financing liability 106,758 105,291 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 8,730 9,709 Commercial mortgage loans 149,426 145,463 Liabilities at fair value under the fair value option HMBS related obligations 10,422,358 9,849,835 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 5,857,069 5,709,946 Nonrecourse MSR financing liability 142,435 142,435 Nonrecourse commercial loan financing liability 111,738 107,744 |
Summary of the components of net fair value gains on mortgage loans and related obligations | Provided in the table below is a summary of the components of net fair value gains on loans and related obligations (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Net fair value gains on loans and related obligations: Interest income on reverse and commercial loans $ 857,271 $ 495,163 $ 160,568 $ 709,679 Change in fair value of loans (1,380,503) (159,589) (56,811) 281,105 Net fair value gains (losses) on loans (523,232) 335,574 103,757 990,784 Interest expense on HMBS and nonrecourse obligations (560,316) (329,344) (119,201) (526,690) Change in fair value of derivatives 332,630 (28,233) 43,972 (12,482) Change in fair value of related obligations 840,407 313,024 42,670 (155,485) Net fair value gains (losses) on related obligations 612,721 (44,553) (32,559) (694,657) Net fair value gains on loans and related obligations $ 89,489 $ 291,021 $ 71,198 $ 296,127 |
Reverse Mortgage Portfolio Comp
Reverse Mortgage Portfolio Composition (Tables) | 12 Months Ended |
Dec. 31, 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 outstanding UPB (in thousands) of the reverse mortgage loan portfolio serviced by the Company: December 31, 2022 December 31, 2021 Reverse mortgage loans: Reverse mortgage loans held for investment, subject to HMBS related obligations $ 10,719,000 $ 9,849,835 Reverse mortgage loans held for investment: Non-agency reverse mortgages 489,038 432,144 Loans not securitized (1) 88,029 266,723 Unpoolable loans (2) 136,657 104,551 Unpoolable tails 11,076 12,008 Total reverse mortgage loans held for investment 724,800 815,426 Reverse mortgage loans held for investment, subject to nonrecourse debt: Performing HECM buyouts 328,845 289,089 Nonperforming HECM buyouts 541,071 590,729 Non-agency reverse mortgages 6,370,209 4,285,661 Total reverse mortgage loans held for investment, subject to nonrecourse debt 7,240,125 5,165,479 Total owned reverse mortgage portfolio 18,683,925 15,830,740 Loans reclassified as government guaranteed receivable 76,033 48,625 Loans serviced for others 81,436 17,840 Total serviced reverse mortgage loan portfolio $ 18,841,394 $ 15,897,205 (1) Loans not securitized represent primarily newly originated loans and poolable tails. |
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): December 31, 2022 December 31, 2021 Fixed rate loans $ 6,548,902 $ 5,384,865 Adjustable rate loans 12,135,023 10,445,875 Total owned reverse mortgage portfolio $ 18,683,925 $ 15,830,740 |
Loans Held for Investment, Su_3
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2022 December 31, 2021 Loans held for investment, subject to HMBS related obligations - UPB $ 10,719,000 $ 9,849,835 Fair value adjustments 395,100 706,219 Total loans held for investment, subject to HMBS related obligations, at fair value $ 11,114,100 $ 10,556,054 |
Loans Held for Investment, Su_4
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2022 December 31, 2021 Loans held for investment, subject to nonrecourse debt - UPB: Reverse mortgage loans $ 7,240,125 $ 5,165,479 Commercial mortgage loans 405,970 388,788 Fair value adjustments (191,457) 663,927 Total loans held for investment, subject to nonrecourse debt, at fair value $ 7,454,638 $ 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): December 31, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual status Fair value: Commercial mortgage loans $ 21,325 $ 26,081 Aggregate UPB: Commercial mortgage loans 24,023 26,472 Difference $ (2,698) $ (391) |
Loans Held for Investment, at_2
Loans Held for Investment, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2022 December 31, 2021 Loans held for investment - UPB: Reverse mortgage loans $ 724,800 $ 815,426 Commercial mortgage loans 143,373 89,267 Fair value adjustments 39,825 126,635 Total loans held for investment, at fair value $ 907,998 $ 1,031,328 |
Loans Held for Sale, at Fair _2
Loans Held for Sale, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2022 December 31, 2021 Loans held for sale - UPB: Residential mortgage and home improvement loans $ 15,529 $ 9,709 Commercial mortgage loans 173,112 145,463 Fair value adjustments (14,657) 2,984 Total loans held for sale, at fair value $ 173,984 $ 158,156 |
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): December 31, 2022 December 31, 2021 Loans 90 days or more past due and on non-accrual status Fair value: Residential mortgage and home improvement loans $ 2,736 $ 616 Commercial mortgage loans 2,817 3,163 Total fair value 5,553 3,779 Aggregate UPB: Residential mortgage loans 2,136 554 Commercial mortgage loans 3,405 3,323 Total aggregate UPB 5,541 3,877 Difference $ 12 $ (98) |
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 year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Beginning balance $ 158,156 $ 118,397 $ 142,226 $ 98,409 Originations/purchases/repurchases 1,119,578 879,197 164,451 351,521 Proceeds from sales (1,088,472) (935,598) (152,659) (566,909) Loans acquired through business combinations — 8,731 — — Net transfers from loans held for investment — 8,828 — 249,999 Gain on loans held for sale, net (65) 95,711 (37,518) 10,198 Net fair value gain (loss) on loans held for sale (15,213) (17,110) 1,897 (992) Ending balance $ 173,984 $ 158,156 $ 118,397 $ 142,226 |
Mortgage Servicing Rights, at_2
Mortgage Servicing Rights, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Summary of servicing portfolio and its activities | The servicing portfolio associated with capitalized servicing rights consists of the following (in thousands): December 31, 2022 December 31, 2021 Fannie Mae/Freddie Mac $ 7,051,851 $ 37,079,995 Ginnie Mae 532,328 1,109,962 Private investors 1,018,159 1,109,459 Total UPB $ 8,602,338 $ 39,299,416 Weighted average interest rate 3.59 % 3.03 % The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Beginning UPB $ 39,299,416 $ 26,675,358 $ 22,269,362 $ 288,057 Originated MSR 10,098,259 17,491,713 6,312,227 21,241,997 Purchased MSR — 234,007 866,806 1,966,657 Sales MSR (38,233,148) (320,027) (1,090,267) (527) Payoffs MSR (1,671,774) (3,935,261) (1,488,977) (991,716) Other (890,415) (846,374) (193,793) (235,106) Ending UPB $ 8,602,338 $ 39,299,416 $ 26,675,358 $ 22,269,362 The activity in the MSR asset consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Beginning balance $ 427,942 $ 267,364 $ 180,684 $ 2,600 Originations 122,362 161,364 65,964 159,434 Purchases — 16,915 9,014 14,088 Sales (478,197) (2,501) (8,647) — Changes in fair value due to: Changes in market inputs or assumptions used in valuation model 51,309 26,950 35,109 14,817 Changes in fair value due to portfolio runoff and other (28,320) (42,150) (14,760) (10,255) Ending balance $ 95,096 $ 427,942 $ 267,364 $ 180,684 |
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 MSR from adverse changes in the significant assumptions (in thousands): December 31, 2022 Weighted Average Prepayment Speed Discount Rate Impact on fair value of 10% adverse change $ (2,677) $ (4,258) Impact on fair value of 20% adverse change $ (5,178) $ (8,155) |
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: December 31, 2022 December 31, 2021 Number of Loans Unpaid Principal Balance Number of Loans Unpaid Principal Balance Portfolio delinquency 30 days 1.2 % 1.1 % 0.4 % 0.3 % 60 days 0.3 % 0.2 % 0.1 % 0.0 % 90 or more days 0.6 % 0.5 % 0.1 % 0.1 % Total 2.1 % 1.8 % 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) | 12 Months Ended |
Dec. 31, 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): December 31, 2022 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount LPCs $ 23 $ 1,701 $ — $ — Forward MBS and TBAs 884 63,600 — — Interest rate swaps and futures contracts 771 261,300 385 244,100 Total fair value and notional amount $ 1,678 $ 326,601 $ 385 $ 244,100 December 31, 2021 Derivative assets Derivative liabilities Fair value Notional amount Fair value Notional amount LPCs $ 1,564 $ 47,300 $ — $ — Forward MBS and TBAs 55 304,000 56 104,000 Interest rate swaps and futures contracts 22,834 11,977,300 24,993 12,193,100 Total fair value and notional amount $ 24,453 $ 12,328,600 $ 25,049 $ 12,297,100 |
Summary of the gains/(losses) on derivative instruments | The follow table details the gains/(losses) on derivative instruments (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Derivative activity Successor Predecessor LPCs $ (1,541) $ 700 $ 389 $ (364) Forward MBS and TBAs 62,114 111 — (1,254) Interest rate swaps and futures contracts 282,721 (29,483) 43,935 (8,487) |
Fixed Assets and Leasehold Im_2
Fixed Assets and Leasehold Improvements, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets and Leasehold Improvements, Net | Fixed assets and leasehold improvements, net, related to continuing operations consisted of the following (in thousands): December 31, 2022 December 31, 2021 Estimated Useful Life Computer hardware and software $ 7,647 $ 7,424 3 - 5 years Furniture and fixtures 3,574 3,097 5 - 7 years Leasehold improvements 3,870 3,296 * Total fixed assets 15,091 13,817 Less: Accumulated depreciation and amortization (5,960) (1,032) Total fixed assets and leasehold improvements, net $ 9,131 $ 12,785 *Shorter of life of lease or useful life of assets |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill, related to continuing operations, consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 Successor Predecessor Beginning balance $ — $ — $ 8,444 Additions from acquisitions — 413,977 5,627 Impairment — (413,977) — Ending balance $ — $ — $ 14,071 |
Schedule of Intangible Assets, Net | Intangible assets, net, related to continuing operations consisted of the following (in thousands): December 31, 2022 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 34,800 $ — $ (7,300) $ 27,500 Amortizing intangibles Broker/customer relationships 9 334,700 (65,081) — 269,619 Total intangibles $ 369,500 $ (65,081) $ (7,300) $ 297,119 December 31, 2021 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 46,600 $ — $ (11,800) $ 34,800 Amortizing intangibles Broker/customer relationships 9 334,700 (27,327) — 307,373 Total intangibles $ 381,300 $ (27,327) $ (11,800) $ 342,173 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net, related to continuing operations consisted of the following (in thousands): December 31, 2022 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 34,800 $ — $ (7,300) $ 27,500 Amortizing intangibles Broker/customer relationships 9 334,700 (65,081) — 269,619 Total intangibles $ 369,500 $ (65,081) $ (7,300) $ 297,119 December 31, 2021 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 46,600 $ — $ (11,800) $ 34,800 Amortizing intangibles Broker/customer relationships 9 334,700 (27,327) — 307,373 Total intangibles $ 381,300 $ (27,327) $ (11,800) $ 342,173 |
Schedule of Estimated Amortization Expense | The estimated amortization expense for each of the five succeeding fiscal years and thereafter as of December 31, 2022 is as follows (in thousands): Year Ending December 31, Amount 2023 $ 37,189 2024 37,189 2025 37,189 2026 37,189 2027 37,189 Thereafter 83,674 Total future amortization expense $ 269,619 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Net | Other assets, net, related to continuing operations, consisted of the following (in thousands): December 31, 2022 December 31, 2021 Government guaranteed receivables $ 66,947 $ 46,958 Receivables, net of allowance of $5,173 and $0, respectively (1) 53,261 27,825 Retained bonds, at fair value 46,439 55,614 Right-of-use assets (Note 21 - Leases) 27,933 30,684 Loans subject to repurchase from Ginnie Mae 15,631 7,956 Prepaid expenses 10,646 15,732 Servicer advances, net of allowance of $2,416 and $2,115, respectively 7,107 10,552 Margin deposits (Note 13 - Derivative and Risk Management Activities) 4,065 22,787 Deposits 1,191 1,154 Investments 300 6,000 Receivable from clearing organization — 2,038 Other 31,118 45,121 Total other assets, net $ 264,638 $ 272,421 |
HMBS Related Obligations, at _2
HMBS Related Obligations, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of HMBS related obligations, at fair value | HMBS related obligations, at fair value, consisted of the following (in thousands): December 31, 2022 December 31, 2021 Ginnie Mae loan pools - UPB $ 10,719,000 $ 9,849,835 Fair value adjustments 277,755 572,523 Total HMBS related obligations, at fair value $ 10,996,755 $ 10,422,358 Weighted average remaining life (in years) 4.0 4.6 Weighted average interest rate 5.0 % 2.5 % |
Nonrecourse Debt, at Fair Val_2
Nonrecourse Debt, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 December 31, 2021 Securitization of performing / nonperforming HECM loans July 2020 - August 2022 July 2030 - August 2032 0.88% - 9.32% $ 2,250,554 $ 953,336 $ 922,970 Securitization of non-agency reverse loans May 2018 - December 2022 March 2050 - November 2069 1.75% - 4.50% 8,363,562 6,598,145 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 7,819,992 5,821,684 Nonrecourse MSR financing liability, at fair value (1) 60,562 142,435 Nonrecourse commercial loan financing liability (2) 105,291 107,744 Fair value adjustments (642,668) 39,379 Total nonrecourse debt, at fair value $ 7,343,177 $ 6,111,242 (1) As of December 31, 2021, the financing liability is due to a related-party. Refer to Note 33 - Related-Party Transactions for additional information regarding the financing liability due to a related-party. (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 4 - Variable Interest Entities and Securitizations for additional information. |
Summary Of Estimated Maturities For Nonrecourse Debt Fair Value | As of December 31, 2022, estimated maturities for nonrecourse debt for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Estimated Maturities 2023 $ 1,685,944 2024 2,248,967 2025 884,036 2026 359,841 2027 2,746,495 Thereafter — Nonrecourse MSR financing liability (1) 60,562 Total payments on nonrecourse debt $ 7,985,845 (1) |
Other Financing Lines of Cred_2
Other Financing Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of components of other financing lines of credit | The following summarizes the components of other financing lines of credit related to continuing operations (in thousands): Outstanding borrowings at Maturity Date Interest Rate Collateral Pledged Total Capacity (1) December 31, 2022 December 31, 2021 Mortgage Lines: October 2023 Bloomberg short-term bank yield index + applicable margin First Lien Mortgages $ 311,673 $ 83,814 $ — November 2023 SOFR + applicable margin Home Improvement Consumer Loans 50,000 7,495 5,107 March 2026 Ameribor + applicable margin MSR 15,600 10,312 138,524 N/A Bond accrual rate + applicable margin Mortgage Related Assets 37,604 37,604 36,102 Subtotal mortgage lines of credit $ 414,877 $ 139,225 $ 179,733 Reverse Lines: April 2023 - November 2023 LIBOR/SOFR + applicable margin First Lien Mortgages $ 1,375,000 $ 584,658 $ 714,013 N/A LIBOR/Bond accrual rate + applicable margin Mortgage Related Assets 320,715 320,715 297,893 October 2027 SOFR + applicable margin MSR 70,000 33,036 78,952 May 2023 Prime + .50%; 6% floor Unsecuritized Tails 50,000 45,001 38,544 Subtotal reverse lines of credit $ 1,815,715 $ 983,410 $ 1,129,402 Commercial Lines: August 2023 2.50% / 3.25% Encumbered Agricultural Loans $ 75,000 $ 7,561 $ 25,127 April 2023 - November 2023 LIBOR/SOFR/Ameribor + applicable margin First Lien Mortgages 191,040 159,938 167,159 February 2023 15% Second Lien Mortgages 25,000 25,000 24,175 January 2024 SOFR + applicable margin Mortgage Related Assets 12,500 12,500 5,041 Subtotal commercial lines of credit $ 303,540 $ 204,999 $ 221,502 Total other financing lines of credit $ 2,534,132 $ 1,327,634 $ 1,530,637 (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 December 31, 2022. |
Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios | As of December 31, 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 December 31, 2022 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 100,000 $ 100,907 $ 907 Liquidity 20,000 23,368 3,368 Leverage Ratio 13:1 9.30:1 28,732 FAR Adjusted Tangible Net Worth (2) $ 250,000 $ 267,067 $ 17,067 Liquidity 24,724 28,718 3,994 Leverage Ratio 6:1 5.29:1 31,808 FAH Adjusted Tangible Net Worth (2) $ 300,000 $ 310,850 $ 10,850 Liquidity 45,000 52,270 7,270 Leverage Ratio 10:1 6.55:1 107,292 (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. 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 FACo Adjusted Tangible Net Worth (2) $ 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 (2) $ 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. |
Payables and Other Liabilities
Payables and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Other Liabilities | Payables and other liabilities related to continuing operations consisted of the following (in thousands): December 31, 2022 December 31, 2021 Accrued liabilities $ 56,302 $ 77,307 GNMA reverse mortgage buyout payable 41,768 31,274 Lease liabilities (Note 21 - Leases) 34,391 31,364 Accrued compensation expense 19,333 28,834 Liability for loans eligible for repurchase from GNMA 15,631 7,956 Deferred purchase price liabilities 3,918 34,764 Warrant liability 1,117 5,497 Deferred tax liability, net (Note 28 - Income Taxes) 887 18,413 Derivative liabilities (Note 13 - Derivative and Risk Management Activities) 385 25,049 Total payables and other liabilities $ 173,732 $ 260,458 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Operating Lease Information | The table below summarizes the Company's operating lease portfolio related to continuing operations (in thousands): December 31, 2022 December 31, 2021 Right-of-use assets $ 27,933 $ 30,684 Lease liabilities 34,391 31,364 Weighted average remaining lease term (in years) 9.29 10.22 Weighted average discount rate 6.50 % 6.54 % |
Summary of Lease Cost and Other Information | The table below summarizes the Company's net operating lease cost related to continuing operations (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Operating lease cost $ 6,230 $ 4,352 $ 850 $ 3,651 Short-term lease cost 612 218 96 1,641 Total operating and short-term lease cost 6,842 4,570 946 5,292 Variable lease cost 991 1,582 876 348 Sublease income (859) (93) (23) (425) Net lease cost $ 6,974 $ 6,059 $ 1,799 $ 5,215 The table below summarizes other information related to the Company’s operating leases in continuing operations (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,856 $ 2,442 $ 889 $ 3,767 Leased assets obtained in exchange for new operating lease liabilities 7,400 23,723 433 1,349 |
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 December 31, 2022 (in thousands): 2023 $ 5,864 2024 5,418 2025 4,760 2026 4,758 2027 4,473 Thereafter 21,729 Total undiscounted lease payments 47,002 Less: amounts representing interest (12,611) Total lease liabilities $ 34,391 |
Notes Payable, Net (Tables)
Notes Payable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Notes Payable | A summary of the outstanding notes payable, net, is presented in the table below (in thousands): Description Maturity Date Interest Rate December 31, 2022 December 31, 2021 Senior unsecured notes November 2025 7.9% $ 350,000 $ 350,000 Related-party notes (Note 33 - Related-Party Transactions) 46,790 — Fair value adjustment, net of amortization (1) 2,612 3,383 Total notes payable, net $ 399,402 $ 353,383 (1) In conjunction with the Business Combination, the Company was required to adjust the liabilities assumed to fair value, resulting in a premium on the Notes and the elimination of the previously recognized debt issuance costs. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award | A summary of each classification of RSU activity for the periods indicated is presented below: Grant Date Fair Value Replacement RSUs Number of Units Unvested Number of Units Vested Total Number of Units Weighted Average Price Per Unit Total Fair Value (in thousands) Outstanding, December 31, 2021 10,392,226 20,640 10,412,866 $ 9.48 $ 98,714 Vested (5,713,819) 5,713,819 — — — Forfeited (557,281) — (557,281) 9.48 (5,283) Settled — (5,122,137) (5,122,137) 9.48 (48,558) Outstanding, December 31, 2022 4,121,126 612,322 4,733,448 $ 9.48 $ 44,873 Grant Date Fair Value Earnout Right RSUs Number of Units Unvested Number of Units Vested Total Number of Units Weighted Average Price Per Unit Total Fair Value (in thousands) Outstanding, December 31, 2021 1,531,440 — 1,531,440 $ 8.91 $ 13,638 Forfeited (58,320) — (58,320) 8.91 (519) Outstanding, December 31, 2022 1,473,120 — 1,473,120 $ 8.91 $ 13,119 Grant Date Fair Value Non-LTIP RSUs Number of Units Unvested Number of Units Vested Total Number of Units Weighted Average Price Per Unit Total Fair Value (in thousands) Outstanding, December 31, 2021 168,221 — 168,221 $ 5.35 $ 900 Granted 4,403,158 — 4,403,158 2.94 12,938 Vested (499,338) 499,338 — — — Forfeited (699,937) — (699,937) 3.00 (2,102) Settled — (473,783) (473,783) 3.56 (1,686) Outstanding, December 31, 2022 3,372,104 25,555 3,397,659 $ 2.96 $ 10,050 |
Fee Income (Tables)
Fee Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Summary Of Fee Income | Fee income related to continuing operations consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Loan servicing fees, net $ 45,965 $ 43,639 $ 13,494 $ 20,063 Loan origination fees 18,476 14,100 1,206 7,848 Change in fair value of MSR 14,348 (18,400) 20,739 4,562 Other fee income 3,026 2,347 1,108 57 Total fee income $ 81,815 $ 41,686 $ 36,547 $ 32,530 |
General and Administrative Ex_2
General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of General and Administrative Expenses | General and administrative expenses related to continuing operations consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Depreciation and amortization $ 42,028 $ 30,576 $ 771 $ 3,012 Loan portfolio expenses 37,712 27,557 9,157 27,465 Securitization expenses 32,152 13,040 4,966 13,893 Communications and data processing 27,733 18,869 4,240 12,761 Loan origination expenses 19,927 10,883 5,370 12,931 Business development 13,031 9,329 2,684 12,468 Other expenses 31,585 21,703 8,850 33,605 Total general and administrative expenses $ 204,168 $ 131,957 $ 36,038 $ 116,135 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes related to continuing operations consisted of the following (in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Current expense Federal $ 384 $ 67 $ 18 $ 150 State 8 — — — Subtotal 392 67 18 150 Deferred benefit Federal (13,953) (6,085) — — State (3,571) (1,164) — — Subtotal (17,524) (7,249) — — Provision (benefit) for income taxes $ (17,132) $ (7,182) $ 18 $ 150 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate (dollars in thousands): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Tax expense (benefit) at federal statutory rate $ (72,030) $ (88,623) $ 2,935 $ 3,181 Effect of: Noncontrolling interest 54,414 64,236 (3,060) (3,480) Permanent differences (17) (1,872) — — Goodwill impairment — 21,719 — — State taxes (3,531) (1,236) — — Valuation allowance 3,073 — — — Other tax adjustments 959 (1,406) 143 449 Provision (benefit) for income taxes $ (17,132) $ (7,182) $ 18 $ 150 Effective Tax Rate 4.99 % 1.70 % 0.13 % 0.99 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and deferred tax liabilities are as follows (in thousands): December 31, 2022 December 31, 2021 Deferred tax assets Loss carryforwards $ 20,845 $ 8,582 Research and development tax credits 1,092 172 Earnout awards 5,183 — TRA 983 9,107 Other 234 — Gross deferred tax assets 28,337 17,861 Valuation allowance (24,710) (777) Deferred tax assets, net of valuation allowance 3,627 17,084 Deferred tax liabilities Investment in FoA Equity 4,428 35,345 Other 86 152 Gross deferred tax liabilities 4,514 35,497 Net deferred tax liability $ (887) $ (18,413) |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward | For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Unrecognized tax benefits—beginning of period $ 74 $ — $ — $ — Increases on tax positions related to the current period 233 74 — — Unrecognized tax benefits—end of period $ 307 $ 74 $ — $ — |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 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), and have been restated to reflect the new segment structure, as described in Note 1 - Organization and Description of Business: For the year ended December 31, 2022 Successor Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain (loss) on sale and other income from loans held for sale, net $ 367 $ (6,298) $ (5,931) $ — $ — $ (5,931) Net fair value gains (losses) on loans and related obligations 283,808 (195,231) 88,577 — 912 89,489 Fee income 15,526 66,761 82,287 27,578 (28,050) 81,815 Net interest expense Interest income 43 5,319 5,362 676 — 6,038 Interest expense (54) (90,926) (90,980) (27,669) — (118,649) Net interest expense (11) (85,607) (85,618) (26,993) — (112,611) Total revenues 299,690 (220,375) 79,315 585 (27,138) 52,762 Total expenses 182,287 124,060 306,347 139,014 (27,135) 418,226 Impairment of intangibles and other assets (3,500) (3,800) (7,300) (2,228) (9,528) Other, net 3,290 860 4,150 27,839 3 31,992 Net income (loss) before taxes $ 117,193 $ (347,375) $ (230,182) $ (112,818) $ — $ (343,000) Depreciation and amortization $ 38,654 $ 319 $ 38,973 $ 3,055 $ — $ 42,028 Total assets $ 297,361 $ 20,185,979 $ 20,483,340 $ 1,610,355 $ (1,534,400) $ 20,559,295 For the nine months ended December 31, 2021 Successor Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain (loss) on sale and other income from loans held for sale, net $ (4,150) $ 39,950 $ 35,800 $ — $ — $ 35,800 Net fair value gains (losses) on loans and related obligations 317,138 (30,738) 286,400 — 4,621 291,021 Fee income 11,220 30,455 41,675 25,243 (25,232) 41,686 Net interest income (expense) Interest income 1,031 1,027 2,058 276 — 2,334 Interest expense (364) (52,625) (52,989) (20,243) — (73,232) Net interest income (expense) 667 (51,598) (50,931) (19,967) — (70,898) Total revenues 324,875 (11,931) 312,944 5,276 (20,611) 297,609 Total expenses 137,872 92,197 230,069 101,005 (26,543) 304,531 Impairment of goodwill and intangible assets (413,868) (11,909) (425,777) — (425,777) Other, net 248 1,170 1,418 15,198 (5,932) 10,684 Net loss before taxes $ (226,617) $ (114,867) $ (341,484) $ (80,531) $ — $ (422,015) Depreciation and amortization $ 29,019 $ 132 $ 29,151 $ 1,425 $ — $ 30,576 Total assets $ 368,927 $ 18,974,389 $ 19,343,316 $ 1,083,412 $ (957,353) $ 19,469,375 For the three months ended March 31, 2021 Predecessor Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain on sale and other income from loans held for sale, net $ — $ 5,065 $ 5,065 $ — $ — $ 5,065 Net fair value gains on loans and related obligations 68,449 2,750 71,199 — (1) 71,198 Fee income 524 36,191 36,715 7,936 (8,104) 36,547 Net interest expense Interest income — 138 138 12 — 150 Interest expense — (14,954) (14,954) (7,756) — (22,710) Net interest expense — (14,816) (14,816) (7,744) — (22,560) Total revenues 68,973 29,190 98,163 192 (8,105) 90,250 Total expenses 23,693 24,406 48,099 27,746 (8,613) 67,232 Other, net 34 895 929 (9,464) (508) (9,043) Net income (loss) before taxes $ 45,314 $ 5,679 $ 50,993 $ (37,018) $ — $ 13,975 Depreciation and amortization $ 151 $ 146 $ 297 $ 474 $ — $ 771 Total assets $ 35,861 $ 17,378,088 $ 17,413,949 $ 385,370 $ (326,313) $ 17,473,006 For the year ended December 31, 2020 Predecessor Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain on sale and other income from loans held for sale, net $ — $ 10,192 $ 10,192 $ — $ — $ 10,192 Net fair value gains on loans and related obligations 192,257 103,872 296,129 — (2) 296,127 Fee income 1,837 28,002 29,839 25,392 (22,701) 32,530 Net interest expense Interest income — 714 714 15 — 729 Interest expense — (73,877) (73,877) (8,946) (132) (82,955) Net interest expense — (73,163) (73,163) (8,931) (132) (82,226) Total revenues 194,094 68,903 262,997 16,461 (22,835) 256,623 Total expenses 87,219 90,854 178,073 80,106 (22,835) 235,344 Other, net — — — (6,131) — (6,131) Net income (loss) before taxes $ 106,875 $ (21,951) $ 84,924 $ (69,776) $ — $ 15,148 Depreciation and amortization $ 897 $ 130 $ 1,027 $ 1,985 $ — $ 3,012 Total assets $ 25,841 $ 16,895,820 $ 16,921,661 $ 88,638 $ — $ 17,010,299 |
Concentrations of Risk (Tables)
Concentrations of Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk | The table below provides the percentage of reverse loans in the Company’s Consolidated Statements of Financial Condition by the location in which the home securing the loan is located and is based on their remaining UPB. "Other" consists of loans in states in which concentration individually represents less than 5% of total remaining UPB. December 31, 2022 December 31, 2021 California 47 % 45 % New York 7 % 8 % Florida 5 % 5 % Texas 4 % 5 % Other 37 % 37 % Total 100 % 100 % December 31, 2022 December 31, 2021 California 77 % 81 % Other 23 % 19 % Total 100 % 100 % The following table provides the percentage of reverse mortgage loans which are serviced by the Company by loans with GSEs ("Agency") and those with private investors ("Non-agency") by period. December 31, 2022 December 31, 2021 Agency 64 % 70 % Non-agency 36 % 30 % Total 100 % 100 % December 31, 2022 December 31, 2021 New York 20 % 17 % Puerto Rico 14 % 15 % California 9 % 10 % Texas 10 % 10 % Florida 5 % 6 % Other 42 % 42 % Total 100 % 100 % December 31, 2022 December 31, 2021 Illinois 13 % 11 % New Jersey 8 % 7 % Florida 7 % 6 % California 4 % 5 % Texas 4 % 5 % Other 64 % 66 % Total 100 % 100 % |
Condensed Financial Informati_2
Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Finance of America Companies Inc. (Parent Company Only) Condensed Statements of Financial Condition (In thousands, except share data) December 31, 2022 December 31, 2021 ASSETS Investment in subsidiaries $ 259,895 $ 446,517 TOTAL ASSETS $ 259,895 $ 446,517 LIABILITIES AND EQUITY Payables and other liabilities 5,784 58,538 TOTAL LIABILITIES $ 5,784 $ 58,538 EQUITY Class A Common Stock, $0.0001 par value; 6,000,000,000 shares authorized; 67,681,856 and 65,013,569 shares issued, respectively, and 63,423,356 and 60,755,069 shares outstanding, respectively 6 6 Additional paid-in capital 888,488 831,620 Accumulated deficit (634,295) (443,613) Accumulated other comprehensive loss (88) (34) TOTAL EQUITY 254,111 387,979 TOTAL LIABILITIES AND EQUITY $ 259,895 $ 446,517 |
Condensed Income Statement | Finance of America Companies Inc. (Parent Company Only) Condensed Statements of Operations and Comprehensive Income (In thousands) For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor REVENUES Interest income $ — $ — $ — $ 164 Interest expense — — (46) (3,669) Net interest expense — — (46) (3,505) TOTAL REVENUES — — (46) (3,505) EXPENSES Salaries, benefits, and related expenses — — 4,041 7,710 Occupancy, equipment rentals, and other office related expenses — — 161 632 General and administrative expenses — — 357 1,292 TOTAL EXPENSES — — 4,559 9,634 OTHER, NET 40,163 15,042 — — NET INCOME (LOSS) BEFORE INCOME TAXES 40,163 15,042 (4,605) (13,139) Benefit for income taxes applicable to parent (17,524) (23,748) — — NET INCOME (LOSS) 57,687 38,790 (4,605) (13,139) Equity (deficit) in undistributed income from subsidiaries (248,369) (410,590) 124,464 531,527 NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST (190,682) (371,800) 119,859 518,388 Other comprehensive income (loss) (54) (34) (11) 60 COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST $ (190,736) $ (371,834) $ 119,848 $ 518,448 |
Condensed Statement of Comprehensive Income | Finance of America Companies Inc. (Parent Company Only) Condensed Statements of Operations and Comprehensive Income (In thousands) For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor REVENUES Interest income $ — $ — $ — $ 164 Interest expense — — (46) (3,669) Net interest expense — — (46) (3,505) TOTAL REVENUES — — (46) (3,505) EXPENSES Salaries, benefits, and related expenses — — 4,041 7,710 Occupancy, equipment rentals, and other office related expenses — — 161 632 General and administrative expenses — — 357 1,292 TOTAL EXPENSES — — 4,559 9,634 OTHER, NET 40,163 15,042 — — NET INCOME (LOSS) BEFORE INCOME TAXES 40,163 15,042 (4,605) (13,139) Benefit for income taxes applicable to parent (17,524) (23,748) — — NET INCOME (LOSS) 57,687 38,790 (4,605) (13,139) Equity (deficit) in undistributed income from subsidiaries (248,369) (410,590) 124,464 531,527 NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST (190,682) (371,800) 119,859 518,388 Other comprehensive income (loss) (54) (34) (11) 60 COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST $ (190,736) $ (371,834) $ 119,848 $ 518,448 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 net loss per share for the Successor periods (in thousands, except share data and per share amounts): For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Basic net loss per share: Numerator Net loss from continuing operations $ (325,868) $ (414,833) N/A N/A Less: Loss from continuing operations attributable to noncontrolling interest (1) (261,450) (307,212) N/A N/A Net loss from continuing operations attributable to holders of Class A Common Stock - basic $ (64,418) $ (107,621) N/A N/A Net loss from discontinued operations $ (389,660) $ (886,169) N/A N/A Less: Loss from discontinued operations attributable to noncontrolling interest (1) (263,396) (621,990) N/A N/A Net loss from discontinued operations attributable to holders of Class A Common Stock - basic $ (126,264) $ (264,179) N/A N/A Denominator Weighted average shares of Class A Common Stock outstanding - basic 62,298,532 59,849,638 N/A N/A Basic net loss per share Continuing operations $ (1.03) $ (1.80) N/A N/A Discontinued operations (2.03) (4.41) N/A N/A Basic net loss per share $ (3.06) $ (6.21) N/A 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 loss by the amount of net loss 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 loss per share calculations. |
Summary of diluted earnings per share | For the year ended December 31, 2022 For the nine months ended December 31, 2021 For the three months ended March 31, 2021 For the year ended December 31, 2020 Successor Predecessor Diluted net loss per share: Numerator Net loss from continuing operations attributable to holders of Class A Common Stock - basic $ (64,418) $ (107,621) N/A N/A Reallocation of net loss from continuing operations assuming exchange of Class A LLC Units (1) (233,420) (289,568) N/A N/A Net loss from continuing operations attributable to holders of Class A Common Stock - diluted $ (297,838) $ (397,189) N/A N/A Net loss from discontinued operations attributable to holders of Class A Common Stock - basic $ (126,264) $ (264,179) N/A N/A Reallocation of net loss from discontinued operations assuming exchange of Class A LLC Units (1) (162,486) (582,253) N/A N/A Net loss from discontinued operations attributable to holders of Class A Common Stock - diluted $ (288,750) $ (846,432) N/A N/A Denominator Weighted average shares of Class A Common Stock outstanding - basic 62,298,532 59,849,638 N/A N/A Effect of dilutive securities: Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) 125,937,981 130,747,611 N/A N/A Weighted average shares of Class A Common Stock outstanding - diluted 188,236,513 190,597,249 N/A N/A Diluted net loss per share Continuing operations $ (1.58) $ (2.08) N/A N/A Discontinued operations (1.54) (4.44) N/A N/A Diluted net loss per share $ (3.12) $ (6.52) N/A N/A (1) This adjustment assumes the reallocation of noncontrolling interest earnings, on an after-tax basis, 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 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 Blocker. As a result of the application of the if-converted method in arriving at diluted net loss per share, the entirety of the compensation cost associated with vesting of the Replacement RSUs and Earnout Right RSUs is assumed to be included in the net loss attributable to holders of the Company’s Class A Common Stock. (2) The diluted weighted average shares outstanding of Class A Common Stock includes the effects of the if-converted method to reflect the provisions of the Exchange Agreement and assumes the Class A LLC Units held by Continuing Unitholders, representing the noncontrolling interest, exchange their units on a one-for-one basis for shares of Class A Common Stock in FoA. In addition to the Class A LLC Units, the Company also had RSUs outstanding during the Successor year ended December 31, 2022 and nine months ended December 31, 2021 . The effects of the RSUs following the treasury stock method have been excluded from the computation of diluted net loss per share as it did not yield dilutive shares. |
Organization and Description _2
Organization and Description of Business (Details) - company | 12 Months Ended | |
Feb. 01, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Number of lending companies operated | 2 | |
Subsequent Event | ANTIC Capital Stock | Incenter | ||
Segment Reporting Information [Line Items] | ||
Sale of stock, percentage of ownership before transaction | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |||||
Class of Stock [Line Items] | ||||||||||||
Net loss | $ (124,320) | [1] | $ 1,301,002 | [1] | $ 1,301,002 | $ 715,528 | [1] | $ (497,913) | [1] | |||
Reverse mortgage loans held for investment, subject to nonrecourse debt | $ 7,240,125 | 5,165,479 | 5,165,479 | $ 7,240,125 | ||||||||
Receivables due from investors (in percent) | 100% | 100% | ||||||||||
TRA obligation | $ 3,800 | 34,600 | 34,600 | $ 3,800 | ||||||||
Advertising expense | $ 2,700 | 9,300 | $ 13,000 | $ 12,500 | ||||||||
Forecast | Boston National Holdings LLC and Agents National Title Holding Company | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Proceeds from sale of businesses | $ 100,000 | |||||||||||
Proceeds from sale of businesses, net of cash on hand | $ 65,000 | |||||||||||
Earnout Shares, Tranche One | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Volume weighted average price (in dollars per share) | $ 12.50 | |||||||||||
Number of trading days for determining the volume weighted average share price | 20 days | |||||||||||
Number of consecutive trading days for determining the volume weighted average share price | 30 days | |||||||||||
Earnout shares to be issued (in percent) | 50% | 50% | ||||||||||
Earnout Shares, Tranche Two | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Volume weighted average price (in dollars per share) | $ 15 | |||||||||||
Number of trading days for determining the volume weighted average share price | 20 days | |||||||||||
Number of consecutive trading days for determining the volume weighted average share price | 30 days | |||||||||||
Earnout shares to be issued (in percent) | 50% | 50% | ||||||||||
American Advisors Group (AAG) | Forecast | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Total cash consideration | $ 10,000 | |||||||||||
Business combination, consideration transferred, equity interests issued and issuable | 50,000 | |||||||||||
TRA obligation | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Realized tax benefits payable pursuant to an agreement (in percent) | 85% | |||||||||||
Minimum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Maintenance fee rate (in percent) | 0.05% | |||||||||||
Eligible incentive compensation rate (in percent) | 5% | |||||||||||
Minimum | LPCs | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Loan commitments term | 30 days | |||||||||||
Maximum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Maximum claim amount (in percent) | 98% | 98% | ||||||||||
Maintenance fee rate (in percent) | 0.25% | |||||||||||
Eligible incentive compensation rate (in percent) | 15% | |||||||||||
Maximum | LPCs | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Loan commitments term | 90 days | |||||||||||
Non-agency reverse mortgages | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Reverse mortgage loans held for investment, subject to nonrecourse debt | $ 6,370,209 | $ 4,285,661 | $ 4,285,661 | $ 6,370,209 | ||||||||
Non-agency reverse mortgages | Minimum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Reverse mortgage loans held for investment, subject to nonrecourse debt | 400 | 400 | ||||||||||
Non-agency reverse mortgages | Maximum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Reverse mortgage loans held for investment, subject to nonrecourse debt | $ 4,000 | $ 4,000 | ||||||||||
Before October Two Twenty Seventeen | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Rate of MIP amount on mortgage balance for loans | 0.50% | 0.50% | ||||||||||
After October Two Twenty Seventeen | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Rate of MIP amount on mortgage balance for loans | 1.25% | 1.25% | ||||||||||
Buy To Rent Platform Holdings L P | Capital Unit, Class B | FAH | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock redeemed or called during period | $ 203,200 | |||||||||||
Certain Existing Equity Holders | American Advisors Group (AAG) | Forecast | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Business combination, consideration transferred, equity interests issued and issuable | $ 30,000 | |||||||||||
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 3 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 61,149 | $ 103,778 |
Restricted cash | 179,764 | 322,091 |
Cash, cash equivalents, and restricted cash of discontinued operations | 36,523 | 37,772 |
Total cash, cash equivalents, and restricted cash in statement of cash flows | $ 277,436 | $ 463,641 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Subsequent Event $ in Millions | Jun. 30, 2023 USD ($) transaction | Feb. 01, 2023 |
Incenter Investments LLC | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of transactions | transaction | 2 | |
Consideration received on transaction | $ 17.5 | |
Cash proceeds received from transaction | 4.8 | |
Notes receivable from sale | $ 12.7 | |
ANTIC Capital Stock | Incenter | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale of stock, percentage of ownership before transaction | 100% |
Discontinued Operations - Summa
Discontinued Operations - Summary Of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Assets | ||||
Assets of discontinued operations | $ 2,319,571 | $ 313,360 | ||
Liabilities | ||||
Liabilities of discontinued operations | 2,027,858 | 227,114 | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | $ 110,363 | (886,169) | (389,660) | $ 482,915 |
Net income (loss) attributable to noncontrolling interest from discontinued operations | 201 | (621,990) | (263,396) | 1,274 |
CRNCI from discontinued operations | 1,119 | 0 | 0 | (4,129) |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO CONTROLLING INTEREST | 109,043 | (264,179) | (126,264) | 485,770 |
Discontinued Operations, Disposed of by Sale | ||||
Assets | ||||
Cash and cash equivalents | 37,460 | 36,212 | ||
Restricted cash | 312 | 311 | ||
Loans held for sale, at fair value | 1,894,222 | 141,994 | ||
Derivative assets | 24,417 | 676 | ||
Fixed assets and leasehold improvements, net | 16,471 | 9,884 | ||
Intangible assets, net | 260,727 | 77,436 | ||
Other assets, net | 85,962 | 46,847 | ||
Assets of discontinued operations | 2,319,571 | 313,360 | ||
Liabilities | ||||
Other financing lines of credit | 1,816,805 | 127,735 | ||
Payables and other liabilities | 211,053 | 99,379 | ||
Liabilities of discontinued operations | 2,027,858 | 227,114 | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Gain on sale and other income from loans held for sale, net | 286,269 | 528,725 | 216,949 | 1,168,803 |
Net fair value gains on loans and related obligations | 5,465 | 50,729 | 14,705 | 15,571 |
Fee income | 124,824 | 344,379 | 280,315 | 357,339 |
Interest income | 12,511 | 41,591 | 41,598 | 41,855 |
Interest expense | (11,656) | (34,462) | (33,088) | (40,046) |
Net interest income | 855 | 7,129 | 8,510 | 1,809 |
Total revenues | 417,413 | 930,962 | 520,479 | 1,543,522 |
Salaries, benefits, and related expenses | 208,256 | 601,300 | 456,382 | 753,236 |
Occupancy, equipment rentals, and other office related expenses | 6,677 | 17,620 | 21,274 | 25,441 |
General and administrative expenses | 91,149 | 260,305 | 252,733 | 279,736 |
Total expenses | 306,082 | 879,225 | 730,389 | 1,058,413 |
Impairment of goodwill, intangibles, and other assets | 0 | (954,853) | (182,981) | 0 |
Other, net | 151 | 3,458 | 3,839 | 0 |
Net income (loss) from discontinued operations before income taxes | 111,482 | (899,658) | (389,052) | 485,109 |
Provision (benefit) for income taxes from discontinued operations | 1,119 | (13,489) | 608 | 2,194 |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | 110,363 | (886,169) | (389,660) | 482,915 |
Net income (loss) attributable to noncontrolling interest from discontinued operations | 201 | (621,990) | (263,396) | 1,274 |
CRNCI from discontinued operations | 1,119 | 0 | 0 | (4,129) |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO CONTROLLING INTEREST | 109,043 | (264,179) | (126,264) | 485,770 |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||||
Gain on sale and other income from loans held for sale, net | 286,447 | 534,092 | 221,121 | 1,169,147 |
Unrealized fair value changes on loans, related obligations, and derivatives | 5,465 | 50,729 | 14,705 | 15,571 |
Impairment of goodwill, intangibles, and other assets | 0 | 954,853 | 182,981 | 0 |
Depreciation and amortization | 2,713 | 19,429 | 22,963 | 10,859 |
Acquisition of fixed assets | $ 2,622 | $ 7,690 | $ 5,787 | $ 6,915 |
Variable Interest Entities an_3
Variable Interest Entities and Securitizations - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Aug. 31, 2022 | Feb. 28, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||||||
Total assets | $ 17,473,006 | $ 21,788,946 | $ 20,872,655 | $ 21,788,946 | $ 17,010,299 | ||
Unconsolidated Securitization Trusts | Asset Pledged as Collateral | |||||||
Variable Interest Entity [Line Items] | |||||||
Total assets | 1,100,000 | 1,100,000 | 1,100,000 | ||||
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 | ||||
Realized losses on transferred mortgage loans | $ 2,500 | ||||||
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 | 400 | $ 700 | 400 | ||||
HAWT Two Thousand And Twenty One Inv One Securitization | FAM | |||||||
Variable Interest Entity [Line Items] | |||||||
Beneficial interest in securitized trust (in percent) | 5% | ||||||
Cavatica Asset Participation Trust | Agricultural loans | |||||||
Variable Interest Entity [Line Items] | |||||||
Consolidated balance of agricultural loans | 118,600 | $ 114,100 | 118,600 | ||||
Cavatica Asset Participation Trust | Nonrecourse | Agricultural loans | |||||||
Variable Interest Entity [Line Items] | |||||||
Liability transferred to the variable interest entity Fair Value amount | $ 111,700 | $ 106,800 | $ 111,700 | ||||
Cavatica Asset Participation Trust | FACo | |||||||
Variable Interest Entity [Line Items] | |||||||
Beneficial interest in securitized trust (in percent) | 5% | 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 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Restricted cash | $ 179,764 | $ 322,091 | ||
Loans held for investment, at fair value | 907,998 | 1,031,328 | ||
TOTAL ASSETS | 20,872,655 | 21,788,946 | $ 17,473,006 | $ 17,010,299 |
LIABILITIES | ||||
Nonrecourse debt, at fair value | 7,343,177 | 6,111,242 | ||
TOTAL LIABILITIES | 20,467,814 | 20,705,936 | ||
Variable Interest Entity, Primary Beneficiary | ||||
ASSETS | ||||
Restricted cash | 173,714 | 311,652 | ||
Loans held for investment, at fair value | 7,340,528 | 6,099,607 | ||
Other assets, net | 75,977 | 67,593 | ||
TOTAL ASSETS | 7,590,219 | 6,478,852 | ||
LIABILITIES | ||||
Nonrecourse debt, at fair value | 7,175,857 | 5,857,069 | ||
Payables and other liabilities | 757 | 428 | ||
TOTAL LIABILITIES | 7,176,614 | 5,857,497 | ||
Variable Interest Entity, Primary Beneficiary | Asset and Liabilities of Consolidated V I E | ||||
ASSETS | ||||
Restricted cash | 173,714 | 311,652 | ||
Loans held for investment, at fair value | 7,340,528 | 6,099,607 | ||
Other assets, net | 75,977 | 67,593 | ||
TOTAL ASSETS | 7,590,219 | 6,478,852 | ||
LIABILITIES | ||||
Nonrecourse debt, at fair value | 7,479,918 | 6,088,298 | ||
Payables and other liabilities | 757 | 428 | ||
TOTAL LIABILITIES | 7,480,675 | 6,088,726 | ||
Retained bonds and beneficial interests eliminated in consolidation | (304,061) | (231,229) | ||
TOTAL CONSOLIDATED LIABILITIES | $ 7,176,614 | $ 5,857,497 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Mar. 26, 2021 | Oct. 12, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Loans held for sale, at fair value | $ 173,984 | $ 158,156 | $ 118,397 | $ 142,226 | $ 98,409 | ||
FoA Equity | |||||||
Business Acquisition [Line Items] | |||||||
Economic interest held by public investors (in percent) | 31.30% | ||||||
Economic interest held by pre-transaction equity owners (in percent) | 68.70% | ||||||
Total consideration transferred | $ 756,303 | ||||||
Renovate America, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration transferred | $ 43,500 | ||||||
Loans held for sale, at fair value | $ 36,600 |
Acquisitions - Fair Value of Co
Acquisitions - Fair Value of Consideration Transferred, Noncontrolling Interest Equity Value, and Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 26, 2021 | Oct. 12, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 01, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Liabilities assumed: | |||||||
Goodwill | $ 0 | $ 0 | $ 0 | $ 14,071 | $ 8,444 | ||
FoA Equity | |||||||
Consideration transferred: | |||||||
Total cash consideration | $ 342,270 | ||||||
Blocker rollover equity | 221,811 | ||||||
Seller earnout contingent consideration | 160,272 | ||||||
Tax receivable agreement obligations to the seller | 31,950 | ||||||
Total consideration transferred | 756,303 | ||||||
Noncontrolling interest | 1,658,545 | ||||||
Total equity value | 2,414,848 | ||||||
Assets acquired: | |||||||
Cash and cash equivalents | 336,075 | ||||||
Restricted cash | 305,292 | ||||||
Loans held for sale, at fair value | 2,140,361 | ||||||
MSR, at fair value | 267,364 | ||||||
Fixed assets and leasehold improvements, net | 26,079 | ||||||
Intangible assets, net | 717,700 | ||||||
Other assets, net | 404,864 | ||||||
Total assets acquired | 20,660,914 | ||||||
Liabilities assumed: | |||||||
Payables and other liabilities | 669,048 | ||||||
Notes payable, net | 353,924 | ||||||
Total liabilities assumed | 19,517,390 | ||||||
Net identifiable assets acquired | 1,143,524 | ||||||
Goodwill | 1,271,324 | ||||||
Business combination goodwill deductible for tax purposes | 85,200 | ||||||
Cash payment | 342,270 | ||||||
Transaction expenses related to acquisition | 5,000 | ||||||
Payment and expenses incurred on close of business acquisition | 29,000 | ||||||
FoA Equity | Phantom Share Unit Holders | |||||||
Consideration transferred: | |||||||
Total cash consideration | 24,000 | ||||||
Liabilities assumed: | |||||||
Cash payment | 24,000 | ||||||
FoA Equity | Broker Relationships | |||||||
Assets acquired: | |||||||
Intangible assets | 530,900 | ||||||
FoA Equity | Loans held for investment, subject to HMBS related obligations | |||||||
Assets acquired: | |||||||
Loans held for investment, at fair value | 10,071,192 | ||||||
FoA Equity | Loans held for investment, subject to nonrecourse debt | |||||||
Assets acquired: | |||||||
Loans held for investment, at fair value | 5,291,443 | ||||||
FoA Equity | Loans held for investment | |||||||
Assets acquired: | |||||||
Loans held for investment, at fair value | 1,100,544 | ||||||
FoA Equity | HMBS related obligations | |||||||
Liabilities assumed: | |||||||
Financial liabilities | 9,926,131 | ||||||
FoA Equity | Nonrecourse debt | |||||||
Liabilities assumed: | |||||||
Financial liabilities | 5,227,942 | ||||||
FoA Equity | Other financing lines of credit | |||||||
Liabilities assumed: | |||||||
Financial liabilities | $ 3,340,345 | ||||||
Renovate America, Inc. | |||||||
Consideration transferred: | |||||||
Total consideration transferred | $ 43,500 | ||||||
Assets acquired: | |||||||
Loans held for sale, at fair value | 35,226 | ||||||
Other assets, net | 753 | ||||||
Total assets acquired | 43,496 | ||||||
Liabilities assumed: | |||||||
Goodwill | 5,627 | ||||||
Renovate America, Inc. | Technology | |||||||
Assets acquired: | |||||||
Intangible assets | $ 1,890 |
Acquisitions - Identifiable Int
Acquisitions - Identifiable Intangible Assets (Details) - FoA Equity $ in Thousands | Oct. 12, 2020 USD ($) |
Business Acquisition [Line Items] | |
Total | $ 717,700 |
Trade name | |
Business Acquisition [Line Items] | |
Definite-lived intangible assets | $ 8,800 |
Useful life (in years) | 10 years |
Broker/customer relationships | |
Business Acquisition [Line Items] | |
Definite-lived intangible assets | $ 530,900 |
Broker/customer relationships | Minimum | |
Business Acquisition [Line Items] | |
Useful life (in years) | 8 years |
Broker/customer relationships | Maximum | |
Business Acquisition [Line Items] | |
Useful life (in years) | 15 years |
Trade name | |
Business Acquisition [Line Items] | |
Indefinite-lived intangible assets | $ 178,000 |
Acquisitions - Pro Forma Result
Acquisitions - Pro Forma Results (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Pro forma revenues | $ 1,736,999 | $ 1,777,444 |
Pro forma net (loss) income | (1,173,481) | 295,136 |
Pro forma net (loss) income attributable to controlling interest | (344,687) | 70,411 |
Pro forma net (loss) income attributable to noncontrolling interest | $ (828,795) | $ 224,725 |
Fair Value - Valuation Techniqu
Fair Value - Valuation Techniques (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Reverse mortgage loans | |
Unobservable Assumptions | |
Margin of sale (in percent) | 3% |
Fair Value - Weighted Average U
Fair Value - Weighted Average Unobservable Assumptions Used In The Fair Value Measurements (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted Average | Discount rate | ||
Unobservable Assumptions | ||
Deferred purchase price liabilities, measurement input | 0.080 | 0.350 |
Retained bonds, measurement input | 0.069 | 0.027 |
Weighted Average | Discount rate | TRA obligation | ||
Unobservable Assumptions | ||
Deferred purchase price liabilities, measurement input | 0.483 | 0.135 |
Weighted Average | Discount rate | MSR | ||
Unobservable Assumptions | ||
Mortgage servicing rights, measurement input | 0.101 | 0.085 |
Weighted Average | WAL (in years) | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | 4.9 | 5.1 |
Weighted Average | Weighted average prepayment speed (CPR) | MSR | ||
Unobservable Assumptions | ||
Mortgage servicing rights, measurement input | 0.064 | 0.083 |
Weighted Average | Loans held for investment, subject to HMBS related obligations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.219 | 0.208 |
Weighted Average | Loans held for investment, subject to HMBS related obligations | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.041 | 0.045 |
Weighted Average | Loans held for investment, subject to HMBS related obligations | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.027 | 0.033 |
Weighted Average | Loans held for investment, subject to HMBS related obligations | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.050 | 0.024 |
Weighted Average | 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 - securitized (nonperforming) | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.392 | 0.412 |
Weighted Average | HECM buyouts - securitized (nonperforming) | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.517 | 0.595 |
Weighted Average | HECM buyouts - securitized (nonperforming) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.052 | 0.043 |
Weighted Average | HECM buyouts - securitized (nonperforming) | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.087 | 0.041 |
Weighted Average | HECM buyouts - securitized (performing) | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.152 | 0.133 |
Weighted Average | HECM buyouts - securitized (performing) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.048 | 0.077 |
Weighted Average | HECM buyouts - securitized (performing) | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.082 | 0.037 |
Weighted Average | HECM buyouts - securitized (performing) | WAL (in years) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 8 | 9 |
Weighted Average | Non-agency reverse mortgage loans - securitized | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.143 | 0.186 |
Weighted Average | Non-agency reverse mortgage loans - securitized | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.100 | 0.100 |
Weighted Average | Non-agency reverse mortgage loans - securitized | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.071 | 0.036 |
Weighted Average | Non-agency reverse mortgage loans - securitized | WAL (in years) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 9.7 | 7.5 |
Weighted Average | Non-agency reverse mortgage loans - securitized | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.431 | 0.434 |
Weighted Average | Non-agency reverse mortgage loans - securitized | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.038 | 0.047 |
Weighted Average | Fix & flip mortgage loans - securitized | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.175 | 0.057 |
Weighted Average | Fix & flip mortgage loans - securitized | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.112 | 0.141 |
Weighted Average | Fix & flip mortgage loans - securitized | Loss rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.005 | 0.006 |
Weighted Average | Inventory buy-outs | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.413 | 0.432 |
Weighted Average | Inventory buy-outs | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.476 | 0.594 |
Weighted Average | Inventory buy-outs | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.056 | 0.038 |
Weighted Average | Inventory buy-outs | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.087 | 0.041 |
Weighted Average | Non-agency reverse mortgage loans | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.138 | 0.148 |
Weighted Average | Non-agency reverse mortgage loans | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.100 | 0.100 |
Weighted Average | Non-agency reverse mortgage loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.071 | 0.036 |
Weighted Average | Non-agency reverse mortgage loans | WAL (in years) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 12 | 9.2 |
Weighted Average | Non-agency reverse mortgage loans | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.364 | 0.478 |
Weighted Average | Non-agency reverse mortgage loans | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.036 | 0.044 |
Weighted Average | Fix & flip mortgage loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.166 | 0.059 |
Weighted Average | Fix & flip mortgage loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.095 | 0.119 |
Weighted Average | Fix & flip mortgage loans | Loss rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.002 | 0.004 |
Weighted Average | Agricultural loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.097 | 0.048 |
Weighted Average | Agricultural loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.118 | 0.221 |
Weighted Average | Agricultural loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.009 | 0.009 |
Weighted Average | SRL | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.083 | 0.033 |
Weighted Average | SRL | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.197 | 0.142 |
Weighted Average | SRL | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.010 | 0.022 |
Weighted Average | Portfolio loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.109 | 0.039 |
Weighted Average | Portfolio loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.184 | 0.087 |
Weighted Average | Portfolio loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.010 | 0.032 |
Weighted Average | HMBS related obligations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.218 | 0.208 |
Weighted Average | HMBS related obligations | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.050 | 0.023 |
Weighted Average | Performing/Nonperforming HECM securitizations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.211 | 0.435 |
Weighted Average | Performing/Nonperforming HECM securitizations | Discount rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.086 | 0.023 |
Weighted Average | Performing/Nonperforming HECM securitizations | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 1.6 | 0.5 |
Weighted Average | Securitized non-agency reverse | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.165 | 0.282 |
Weighted Average | Securitized non-agency reverse | Discount rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.072 | 0.022 |
Weighted Average | Securitized non-agency reverse | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 6.4 | 1.6 |
Weighted Average | Nonrecourse commercial loan financing liability | Discount rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.145 | 0.031 |
Weighted Average | Nonrecourse commercial loan financing liability | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 4.3 | 4 |
Weighted Average | Nonrecourse commercial loan financing liability | Weighted average prepayment speed (CPR) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.153 | 0.140 |
Weighted Average | Nonrecourse MSR financing liability | Discount rate | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.102 | 0.091 |
Weighted Average | Nonrecourse MSR financing liability | Weighted average prepayment speed (CPR) | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.051 | 0.077 |
Minimum | Discount rate | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | (0.168) | 0.019 |
Minimum | WAL (in years) | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | 2.4 | 2.6 |
Minimum | Weighted average prepayment speed (CPR) | MSR | ||
Unobservable Assumptions | ||
Mortgage servicing rights, measurement input | 0.010 | 0 |
Minimum | 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 - securitized (nonperforming) | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.231 | 0.250 |
Minimum | HECM buyouts - securitized (nonperforming) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.024 | 0.031 |
Minimum | HECM buyouts - securitized (performing) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.024 | 0.031 |
Minimum | Non-agency reverse mortgage loans - securitized | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0 | 0.001 |
Minimum | Non-agency reverse mortgage loans - securitized | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | (0.101) | (0.046) |
Minimum | Inventory buy-outs | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.024 | 0.077 |
Minimum | Non-agency reverse mortgage loans | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.001 | 0.002 |
Minimum | Non-agency reverse mortgage loans | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | (0.101) | (0.046) |
Minimum | Fix & flip mortgage loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.163 | 0.057 |
Minimum | Agricultural loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.110 | 0.090 |
Minimum | Agricultural loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0 | 0 |
Minimum | SRL | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.185 | 0.010 |
Minimum | SRL | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.010 | |
Minimum | Portfolio loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0 | 0 |
Minimum | Portfolio loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.010 | |
Minimum | Performing/Nonperforming HECM securitizations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.199 | 0.308 |
Minimum | Performing/Nonperforming HECM securitizations | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 1.5 | 0.2 |
Minimum | Securitized non-agency reverse | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.083 | 0.184 |
Minimum | Securitized non-agency reverse | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.2 | 1 |
Minimum | Nonrecourse MSR financing liability | Discount rate | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.100 | 0.081 |
Minimum | Nonrecourse MSR financing liability | Weighted average prepayment speed (CPR) | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.008 | 0.020 |
Maximum | Discount rate | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | 0.122 | 0.082 |
Maximum | WAL (in years) | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | 24.1 | 25 |
Maximum | Weighted average prepayment speed (CPR) | MSR | ||
Unobservable Assumptions | ||
Mortgage servicing rights, measurement input | 0.085 | 0.128 |
Maximum | Loans held for investment, subject to HMBS related obligations | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.121 | 0.077 |
Maximum | HECM buyouts - securitized (nonperforming) | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 1 | 1 |
Maximum | HECM buyouts - securitized (nonperforming) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.121 | 0.077 |
Maximum | HECM buyouts - securitized (performing) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.121 | 0.077 |
Maximum | Non-agency reverse mortgage loans - securitized | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.747 | 0.647 |
Maximum | Non-agency reverse mortgage loans - securitized | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.073 | 0.14 |
Maximum | Inventory buy-outs | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.121 | 0.031 |
Maximum | Non-agency reverse mortgage loans | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.679 | 0.687 |
Maximum | Non-agency reverse mortgage loans | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.073 | 0.140 |
Maximum | Fix & flip mortgage loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.258 | 0.100 |
Maximum | Agricultural loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 1 | 1 |
Maximum | Agricultural loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.010 | 0.009 |
Maximum | SRL | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.250 | 0.171 |
Maximum | SRL | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.572 | |
Maximum | Portfolio loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.243 | 0.145 |
Maximum | Portfolio loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.540 | |
Maximum | Performing/Nonperforming HECM securitizations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.222 | 0.544 |
Maximum | Performing/Nonperforming HECM securitizations | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 1.6 | 0.8 |
Maximum | Securitized non-agency reverse | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.461 | 0.359 |
Maximum | Securitized non-agency reverse | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 11.7 | 2.3 |
Maximum | Nonrecourse MSR financing liability | Discount rate | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.120 | 0.101 |
Maximum | Nonrecourse MSR financing liability | Weighted average prepayment speed (CPR) | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.092 | 0.110 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Loans held for investment, at fair value | $ 907,998 | $ 1,031,328 |
Total loans held for sale, at fair value | 173,984 | 158,156 |
Derivative assets | 1,678 | 24,453 |
Retained bonds | 46,439 | 55,614 |
Liabilities | ||
TRA obligation | 3,800 | 34,600 |
Fair Value, Recurring | ||
Assets | ||
Investments | 6,000 | |
Retained bonds | 46,439 | 55,614 |
Total assets | 19,803,289 | 18,477,741 |
Liabilities | ||
HMBS related obligations | 10,996,755 | 10,422,358 |
Nonrecourse debt in consolidated VIE trusts | 7,175,857 | 5,857,069 |
Nonrecourse commercial loan financing liability | 106,758 | 111,738 |
Nonrecourse MSR financing liability | 60,562 | 142,435 |
Deferred purchase price liabilities | 137 | 137 |
TRA obligation | 3,781 | 29,380 |
Total liabilities | 18,345,352 | 16,593,663 |
Fair Value, Recurring | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 11,114,100 | 10,556,054 |
Fair Value, Recurring | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 7,065,477 | 5,823,301 |
Fair Value, Recurring | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 389,161 | 394,893 |
Fair Value, Recurring | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 771,724 | 940,604 |
Fair Value, Recurring | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 127,469 | 62,933 |
Fair Value, Recurring | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 8,805 | 27,791 |
Fair Value, Recurring | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 12,123 | 8,730 |
Fair Value, Recurring | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 69,187 | 98,852 |
Fair Value, Recurring | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 43,272 | 50,574 |
Fair Value, Recurring | Fix and flip | ||
Assets | ||
Total loans held for sale, at fair value | 49,402 | |
Fair Value, Recurring | MSR | ||
Assets | ||
MSR | 95,096 | 427,942 |
Fair Value, Recurring | LPCs, forward MBS, and TBAs | ||
Assets | ||
Derivative assets | 907 | 1,619 |
Fair Value, Recurring | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 771 | 22,834 |
Fair Value, Recurring | Forward MBS and TBAs | ||
Liabilities | ||
Derivative liabilities | 56 | |
Fair Value, Recurring | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 385 | 24,993 |
Fair Value, Recurring | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 1,117 | 5,497 |
Fair Value, Recurring | Reverse mortgage loans | ||
Assets | ||
Purchase commitments | 9,356 | |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Investments | 0 | |
Retained bonds | 0 | 0 |
Total assets | 771 | 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 | 1,502 | 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 | Fix and flip | ||
Assets | ||
Total loans held for sale, at fair value | 0 | |
Fair Value, Recurring | Level 1 | MSR | ||
Assets | ||
MSR | 0 | 0 |
Fair Value, Recurring | Level 1 | LPCs, forward MBS, and TBAs | ||
Assets | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 771 | 22,834 |
Fair Value, Recurring | Level 1 | Forward MBS and TBAs | ||
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 1 | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 385 | 24,993 |
Fair Value, Recurring | Level 1 | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 1,117 | 5,497 |
Fair Value, Recurring | Level 1 | Reverse mortgage loans | ||
Assets | ||
Purchase commitments | 0 | |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Investments | 0 | |
Retained bonds | 0 | 0 |
Total assets | 13,030 | 10,349 |
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 | 0 | 56 |
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 | 12,123 | 8,730 |
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 | Fix and flip | ||
Assets | ||
Total loans held for sale, at fair value | 0 | |
Fair Value, Recurring | Level 2 | MSR | ||
Assets | ||
MSR | 0 | 0 |
Fair Value, Recurring | Level 2 | LPCs, forward MBS, and TBAs | ||
Assets | ||
Derivative assets | 907 | 1,619 |
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 | 56 | |
Fair Value, Recurring | Level 2 | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | Reverse mortgage loans | ||
Assets | ||
Purchase commitments | 0 | |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Investments | 6,000 | |
Retained bonds | 46,439 | 55,614 |
Total assets | 19,789,488 | 18,444,558 |
Liabilities | ||
HMBS related obligations | 10,996,755 | 10,422,358 |
Nonrecourse debt in consolidated VIE trusts | 7,175,857 | 5,857,069 |
Nonrecourse commercial loan financing liability | 106,758 | 111,738 |
Nonrecourse MSR financing liability | 60,562 | 142,435 |
Deferred purchase price liabilities | 137 | 137 |
TRA obligation | 3,781 | 29,380 |
Total liabilities | 18,343,850 | 16,563,117 |
Fair Value, Recurring | Level 3 | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 11,114,100 | 10,556,054 |
Fair Value, Recurring | Level 3 | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 7,065,477 | 5,823,301 |
Fair Value, Recurring | Level 3 | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 389,161 | 394,893 |
Fair Value, Recurring | Level 3 | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 771,724 | 940,604 |
Fair Value, Recurring | Level 3 | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 127,469 | 62,933 |
Fair Value, Recurring | Level 3 | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 8,805 | 27,791 |
Fair Value, Recurring | Level 3 | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 3 | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 69,187 | 98,852 |
Fair Value, Recurring | Level 3 | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 43,272 | 50,574 |
Fair Value, Recurring | Level 3 | Fix and flip | ||
Assets | ||
Total loans held for sale, at fair value | 49,402 | |
Fair Value, Recurring | Level 3 | MSR | ||
Assets | ||
MSR | 95,096 | 427,942 |
Fair Value, Recurring | Level 3 | LPCs, 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 | |
Fair Value, Recurring | Level 3 | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 0 | $ 0 |
Fair Value, Recurring | Level 3 | Reverse mortgage loans | ||
Assets | ||
Purchase commitments | $ 9,356 |
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 | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Loans held for investment | ||||
Assets | ||||
Beginning balance | $ 10,659,984 | $ 11,171,736 | $ 11,587,382 | $ 10,894,577 |
Total gain or losses included in earnings | 132,499 | 272,802 | 190,714 | 627,251 |
Purchases and additions, net | 1,143,109 | 4,438,629 | 6,165,003 | 3,616,667 |
Sales and settlements | (534,738) | (2,235,651) | (2,178,245) | (1,536,977) |
Transfers in/(out) between categories | (229,118) | (2,060,134) | (3,742,756) | (2,941,534) |
Ending balance | 11,171,736 | 11,587,382 | 12,022,098 | 10,659,984 |
Loans held for investment, subject to nonrecourse debt | ||||
Assets | ||||
Beginning balance | 5,396,167 | 5,291,444 | 6,218,194 | 3,511,212 |
Total gain or losses included in earnings | (37,757) | 71,126 | (744,123) | 304,663 |
Purchases and additions, net | 21,064 | 80,542 | 117,010 | 136,838 |
Sales and settlements | (360,128) | (1,275,674) | (1,847,648) | (1,285,902) |
Transfers in/(out) between categories | 272,098 | 2,050,756 | 3,711,205 | 2,729,356 |
Ending balance | 5,291,444 | 6,218,194 | 7,454,638 | 5,396,167 |
Loans held for sale | ||||
Assets | ||||
Beginning balance | 142,226 | 118,396 | 149,426 | 164,830 |
Total gain or losses included in earnings | 2,316 | 532 | (15,213) | (992) |
Purchases and additions, net | 164,450 | 879,172 | 1,119,578 | 348,951 |
Sales and settlements | (147,687) | (857,503) | (1,103,492) | (554,141) |
Transfers in/(out) between categories | (42,909) | 8,829 | 11,562 | 183,578 |
Ending balance | 118,396 | 149,426 | 161,861 | 142,226 |
MSR | ||||
Assets | ||||
Beginning balance | 180,684 | 267,364 | 427,942 | 2,600 |
Total gain or losses included in earnings | 20,349 | (15,200) | 22,989 | 4,562 |
Purchases and additions, net | 74,978 | 178,279 | 122,362 | 173,522 |
Sales and settlements | (8,647) | (2,501) | (478,197) | 0 |
Transfers in/(out) between categories | 0 | 0 | 0 | 0 |
Ending balance | 267,364 | 427,942 | 95,096 | 180,684 |
Retained Bonds | ||||
Assets | ||||
Beginning balance | 0 | 55,614 | ||
Total gain or losses included in earnings | 1,344 | (8,668) | ||
Purchases and additions, net | 54,752 | 0 | ||
Sales and settlements | (482) | (507) | ||
Transfers in/(out) between categories | 0 | 0 | ||
Ending balance | 0 | 55,614 | 46,439 | |
Purchase commitments | ||||
Assets | ||||
Beginning balance | 0 | |||
Total gain or losses included in earnings | 9,356 | |||
Purchases and additions, net | 0 | |||
Sales and settlements | 0 | |||
Transfers in/(out) between categories | 0 | |||
Ending balance | 0 | 9,356 | ||
Debt Securities | ||||
Assets | ||||
Beginning balance | 0 | 102,260 | ||
Total gain or losses included in earnings | 2,288 | |||
Purchases and additions, net | 24,489 | |||
Sales and settlements | (129,037) | |||
Transfers in/(out) between categories | 0 | |||
Ending balance | 0 | |||
Investments | ||||
Assets | ||||
Beginning balance | 18,934 | 9,470 | 6,000 | 20,508 |
Total gain or losses included in earnings | (9,464) | (3,470) | (6,000) | (5,512) |
Purchases and additions, net | 0 | 0 | 0 | 3,938 |
Sales and settlements | 0 | 0 | 0 | 0 |
Transfers in/(out) between categories | 0 | 0 | 0 | 0 |
Ending balance | 9,470 | 6,000 | 0 | 18,934 |
HMBS related obligations | ||||
Liabilities | ||||
Beginning balance | (9,788,668) | (9,926,132) | (10,422,358) | (9,320,209) |
Total gain or losses included in earnings | (41,434) | 62,306 | (29,015) | (359,951) |
Purchases and additions, net | (602,172) | (2,491,919) | (2,870,650) | (2,051,953) |
Settlements | 506,142 | 1,933,387 | 2,325,268 | 1,943,445 |
Ending balance | (9,926,132) | (10,422,358) | (10,996,755) | (9,788,668) |
Nonrecourse debt in consolidated VIE trusts | ||||
Liabilities | ||||
Beginning balance | (5,257,754) | (5,205,892) | (5,857,069) | (3,490,196) |
Total gain or losses included in earnings | (30,770) | (74,333) | 316,963 | (294,802) |
Purchases and additions, net | (575,668) | (1,813,458) | (3,202,519) | (3,110,368) |
Settlements | 658,300 | 1,236,614 | 1,566,768 | 1,637,612 |
Ending balance | (5,205,892) | (5,857,069) | (7,175,857) | (5,257,754) |
Nonrecourse commercial loan financing liability | ||||
Liabilities | ||||
Beginning balance | 0 | (111,738) | ||
Total gain or losses included in earnings | 1,019 | 2,527 | ||
Purchases and additions, net | (176,863) | (205,746) | ||
Settlements | 64,106 | 208,199 | ||
Ending balance | 0 | (111,738) | (106,758) | |
Nonrecourse MSR financing liability | ||||
Liabilities | ||||
Beginning balance | (14,088) | (22,051) | (142,435) | 0 |
Total gain or losses included in earnings | 390 | (2,998) | (8,162) | 798 |
Purchases and additions, net | (8,353) | (117,386) | (14,196) | (15,101) |
Settlements | 0 | 0 | 104,231 | 215 |
Ending balance | (22,051) | (142,435) | (60,562) | $ (14,088) |
TRA Liability | ||||
Liabilities | ||||
Beginning balance | 0 | (29,380) | ||
Total gain or losses included in earnings | 2,570 | 25,599 | ||
Purchases and additions, net | (31,950) | 0 | ||
Settlements | 0 | 0 | ||
Ending balance | $ 0 | $ (29,380) | $ (3,781) |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Estimated Fair Value | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | $ 11,114,100 | $ 10,556,054 |
Estimated Fair Value | Loans held for investment | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 771,724 | 940,604 |
Estimated Fair Value | Loans held for investment | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 136,274 | 90,724 |
Estimated Fair Value | Loans held for sale | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 161,861 | 149,426 |
Estimated Fair Value | Loans held for sale | Residential mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 12,123 | 8,730 |
Estimated Fair Value | HMBS related obligations | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 10,996,755 | 10,422,358 |
Estimated Fair Value | Nonrecourse debt in consolidated VIE trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 7,175,857 | 5,857,069 |
Estimated Fair Value | Nonrecourse MSR financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 60,562 | 142,435 |
Estimated Fair Value | Nonrecourse commercial loan financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 106,758 | 111,738 |
Estimated Fair Value | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 9,356 | |
Estimated Fair Value | Reverse mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 7,065,477 | 5,823,301 |
Estimated Fair Value | Commercial mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 389,161 | 394,893 |
Unpaid Principal Balance | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 10,719,000 | 9,849,835 |
Unpaid Principal Balance | Loans held for investment | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 724,800 | 815,426 |
Unpaid Principal Balance | Loans held for investment | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 143,373 | 89,267 |
Unpaid Principal Balance | Loans held for sale | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 173,112 | 145,463 |
Unpaid Principal Balance | Loans held for sale | Residential mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 15,529 | 9,709 |
Unpaid Principal Balance | HMBS related obligations | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 10,719,000 | 9,849,835 |
Unpaid Principal Balance | Nonrecourse debt in consolidated VIE trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 7,819,992 | 5,709,946 |
Unpaid Principal Balance | Nonrecourse MSR financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 60,562 | 142,435 |
Unpaid Principal Balance | Nonrecourse commercial loan financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 105,291 | 107,744 |
Unpaid Principal Balance | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 9,356 | |
Unpaid Principal Balance | Reverse mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 7,240,125 | 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 | $ 405,970 | $ 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 | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||||
Interest income on reverse and commercial loans | $ 160,568 | $ 495,163 | $ 857,271 | $ 709,679 |
Change in fair value of loans | (56,811) | (159,589) | (1,380,503) | 281,105 |
Net fair value gains (losses) on loans | 103,757 | 335,574 | (523,232) | 990,784 |
Interest expense on HMBS and nonrecourse obligations | (119,201) | (329,344) | (560,316) | (526,690) |
Change in fair value of derivatives | 43,972 | (28,233) | 332,630 | (12,482) |
Change in fair value of related obligations | 42,670 | 313,024 | 840,407 | (155,485) |
Net fair value gains (losses) on related obligations | (32,559) | (44,553) | 612,721 | (694,657) |
Net fair value gains on loans and related obligations | $ 71,198 | $ 291,021 | $ 89,489 | $ 296,127 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Unobservable Assumptions | ||
Notes payable, carrying value | $ 399,402,000 | $ 353,383,000 |
Notes payable, fair value | 231,900,000 | 347,000,000 |
Promissory Notes | ||
Unobservable Assumptions | ||
Notes receivable | $ 0 | $ 4,100,000 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ 10,719,000 | $ 9,849,835 |
Reverse mortgage loans held for investment | 724,800 | 815,426 |
Reverse mortgage loans held for investment, subject to nonrecourse debt | 7,240,125 | 5,165,479 |
Serviced reverse mortgage loan portfolio | $ 18,841,394 | 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 | $ 18,683,925 | 15,830,740 |
Loans reclassified as government guaranteed receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serviced reverse mortgage loan portfolio | 76,033 | 48,625 |
Loans serviced for others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serviced reverse mortgage loan portfolio | 81,436 | 17,840 |
Nonperforming HECM buyouts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonperforming HECM buyouts | 541,071 | 590,729 |
Performing HECM buyouts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to nonrecourse debt | 328,845 | 289,089 |
Non-agency reverse mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to nonrecourse debt | 6,370,209 | 4,285,661 |
Non-agency reverse mortgages | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to nonrecourse debt | 4,000 | |
Non-agency reverse mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | 489,038 | 432,144 |
Loans not securitized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | 88,029 | 266,723 |
Unpoolable loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | 136,657 | 104,551 |
Unpoolable tails | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | $ 11,076 | $ 12,008 |
Reverse Mortgage Portfolio Co_3
Reverse Mortgage Portfolio Composition - Summarizes the Owned Reverse Mortgage Portfolio by Product Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Owned reverse mortgage portfolio | $ 18,683,925 | $ 15,830,740 |
Fixed rate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Owned reverse mortgage portfolio | 6,548,902 | 5,384,865 |
Adjustable rate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Owned reverse mortgage portfolio | $ 12,135,023 | $ 10,445,875 |
Reverse Mortgage Portfolio Co_4
Reverse Mortgage Portfolio Composition - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Foreclosure proceedings in process, amount | $ 489.3 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Loans held for investment, subject to HMBS related obligations - UPB | $ 10,719,000 | $ 9,849,835 |
Fair value adjustments | 395,100 | 706,219 |
Total loans held for investment, subject to HMBS related obligations, at fair value | $ 11,114,100 | $ 10,556,054 |
Loans Held for Investment, Su_6
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustments | $ (191,457) | $ 663,927 |
Total loans held for investment, subject to nonrecourse debt, at fair value | 7,454,638 | 6,218,194 |
Reverse mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, subject to nonrecourse debt - UPB | 7,240,125 | 5,165,479 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, subject to nonrecourse debt - UPB | $ 405,970 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Difference | $ (2,698) | $ (391) |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for investment, total fair value | 21,325 | 26,081 |
Mortgage loans held for investment, total aggregate UPB | $ 24,023 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustments | $ 39,825 | $ 126,635 |
Loans held for investment, at fair value | 907,998 | 1,031,328 |
Reverse mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment - UPB | 724,800 | 815,426 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment - UPB | $ 143,373 | $ 89,267 |
Loans Held for Investment, at_4
Loans Held for Investment, at Fair Value - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale, at fair value | $ 173,984 | $ 158,156 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale, at fair value | 745,100 | 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 | $ 2,400 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustments | $ (14,657) | $ 2,984 |
Total loans held for sale, at fair value | 173,984 | 158,156 |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale - UPB | 15,529 | 9,709 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale - UPB | $ 173,112 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, aggregate unpaid principal balance | $ 5,541 | $ 3,877 |
Difference | 12 | (98) |
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 | 5,553 | 3,779 |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, aggregate unpaid principal balance | 2,736 | 616 |
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 | 2,136 | 554 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, aggregate unpaid principal balance | 3,405 | 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 | $ 2,817 | $ 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 | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Loans Held-For-Sale [Roll Forward] | ||||
Beginning balance | $ 142,226 | $ 118,397 | $ 158,156 | $ 98,409 |
Originations/purchases/repurchases | 164,451 | 879,197 | 1,119,578 | 351,521 |
Proceeds from sales | (152,659) | (935,598) | (1,088,472) | (566,909) |
Loans acquired through business combinations | 0 | 8,731 | 0 | 0 |
Net transfers from loans held for investment | 0 | 8,828 | 0 | 249,999 |
Gain on loans held for sale, net | (37,518) | 95,711 | (65) | 10,198 |
Net fair value gain (loss) on loans held for sale | 1,897 | (17,110) | (15,213) | (992) |
Ending balance | $ 118,397 | $ 158,156 | $ 173,984 | $ 142,226 |
Loans Held for Sale, at Fair _6
Loans Held for Sale, at Fair Value - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Loans held for sale, at fair value pledged as collateral for financing lines of credit | $ 186 | $ 144.2 |
Mortgage Servicing Rights, at_3
Mortgage Servicing Rights, at Fair Value - Summary of Servicing Portfolio and its Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | $ 8,602,338 | $ 39,299,416 |
Weighted average interest rate | 3.59% | 3.03% |
Fannie Mae/Freddie Mac | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | $ 7,051,851 | $ 37,079,995 |
Ginnie Mae | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | 532,328 | 1,109,962 |
Private investors | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | $ 1,018,159 | $ 1,109,459 |
Mortgage Servicing Rights, at_4
Mortgage Servicing Rights, at Fair Value - Rollforward Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Capitalized servicing rights | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 22,269,362 | $ 26,675,358 | $ 39,299,416 | $ 288,057 |
Originations | 6,312,227 | 17,491,713 | 10,098,259 | 21,241,997 |
Purchases | 866,806 | 234,007 | 0 | 1,966,657 |
Sales | (1,090,267) | (320,027) | (38,233,148) | (527) |
Payoffs MSR | (1,488,977) | (3,935,261) | (1,671,774) | (991,716) |
Other | (193,793) | (846,374) | (890,415) | (235,106) |
Changes in fair value due to: | ||||
Changes in fair value due to portfolio runoff and other | (193,793) | (846,374) | (890,415) | (235,106) |
Ending UPB | 26,675,358 | 39,299,416 | 8,602,338 | 22,269,362 |
MSR | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 180,684 | 267,364 | 427,942 | 2,600 |
Originations | 65,964 | 161,364 | 122,362 | 159,434 |
Purchases | 9,014 | 16,915 | 0 | 14,088 |
Sales | (8,647) | (2,501) | (478,197) | 0 |
Other | (14,760) | (42,150) | (28,320) | (10,255) |
Changes in fair value due to: | ||||
Changes in market inputs or assumptions used in valuation model | 35,109 | 26,950 | 51,309 | 14,817 |
Changes in fair value due to portfolio runoff and other | (14,760) | (42,150) | (28,320) | (10,255) |
Ending UPB | $ 267,364 | $ 427,942 | $ 95,096 | $ 180,684 |
Mortgage Servicing Rights, at_5
Mortgage Servicing Rights, at Fair Value - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Servicing Assets at Fair Value [Line Items] | ||||
Contractually specified servicing fees, late fees, and other ancillary servicing revenue | $ 13 | $ 43.4 | $ 35 | $ 18.1 |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fee income | |||
Asset Pledged as Collateral with Right | ||||
Servicing Assets at Fair Value [Line Items] | ||||
MSR | $ 142.4 | $ 60.6 |
Mortgage Servicing Rights, at_6
Mortgage Servicing Rights, at Fair Value - Summary of Estimated Change In Fair Value of MSRs from Adverse Changes In The Significant Assumptions (Details) - MSR $ in Thousands | Dec. 31, 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 | $ (2,677) |
Impact on fair value of 10% adverse change, Discount Rate | (4,258) |
Impact on fair value of 20% adverse change, Weighted-Average Prepayment Speed | (5,178) |
Impact on fair value of 20% adverse change, Discount Rate | $ (8,155) |
Mortgage Servicing Rights, at_7
Mortgage Servicing Rights, at Fair Value - Summary of Information Regarding Loan Servicing Portfolio Delinquencies Percentages and Unpaid Balances (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 2.10% | 0.60% |
Unpaid Principal Balance | 1.80% | 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 | 1.20% | 0.40% |
Unpaid Principal Balance | 1.10% | 0.30% |
60 days | ||
Servicing Assets at Fair Value [Line Items] | ||
Number of Loans | 0.30% | 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative assets | ||
Fair value | $ 1,678 | $ 24,453 |
Notional amount | 326,601 | 12,328,600 |
Derivative liabilities | ||
Fair value | 385 | 25,049 |
Notional amount | 244,100 | 12,297,100 |
LPCs | ||
Derivative assets | ||
Fair value | 23 | 1,564 |
Notional amount | 1,701 | 47,300 |
Derivative liabilities | ||
Fair value | 0 | 0 |
Notional amount | 0 | 0 |
Forward MBS and TBAs | ||
Derivative assets | ||
Fair value | 884 | 55 |
Notional amount | 63,600 | 304,000 |
Derivative liabilities | ||
Fair value | 0 | 56 |
Notional amount | 0 | 104,000 |
Interest rate swaps and futures contracts | ||
Derivative assets | ||
Fair value | 771 | 22,834 |
Notional amount | 261,300 | 11,977,300 |
Derivative liabilities | ||
Fair value | 385 | 24,993 |
Notional amount | $ 244,100 | $ 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 | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
LPCs | ||||
Derivative [Line Items] | ||||
Derivative activity | $ 389 | $ 700 | $ (1,541) | $ (364) |
Forward MBS and TBAs | ||||
Derivative [Line Items] | ||||
Derivative activity | 0 | 111 | 62,114 | (1,254) |
Interest rate swaps and futures contracts | ||||
Derivative [Line Items] | ||||
Derivative activity | $ 43,935 | $ (29,483) | $ 282,721 | $ (8,487) |
Derivatives and Risk Manageme_3
Derivatives and Risk Management Activities - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Pledged deposits | $ 4.1 | $ 22.8 |
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, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 15,091 | $ 13,817 |
Less: Accumulated depreciation and amortization | (5,960) | (1,032) |
Fixed assets and leasehold improvements, net | 9,131 | 12,785 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 7,647 | 7,424 |
Computer hardware and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Computer hardware and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 3,574 | 3,097 |
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 | $ 3,870 | $ 3,296 |
Fixed Assets and Leasehold Im_4
Fixed Assets and Leasehold Improvements, Net - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 800,000 | $ 3,300,000 | $ 4,200,000 | $ 3,000,000 |
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | $ 0 | $ 0 | $ 2,200,000 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | $ 8,444,000 | $ 14,071,000 | $ 0 | |
Goodwill, Acquired During Period | 5,627,000 | 413,977,000 | 0 | |
Impairment | 0 | (413,977,000) | 0 | $ 0 |
Goodwill, Ending Balance | $ 14,071,000 | $ 0 | $ 0 | $ 8,444,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment | $ (7,300,000) | $ (11,800,000) | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Accumulated Amortization | (65,081,000) | (27,327,000) | ||
Net | 269,619,000 | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Intangible assets, gross | 369,500,000 | 381,300,000 | ||
Accumulated Amortization | (65,081,000) | (27,327,000) | ||
Impairment | (7,300,000) | (11,800,000) | ||
Intangible assets, net | 297,119,000 | 342,173,000 | ||
Trade name | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Intangible assets | 34,800,000 | 46,600,000 | ||
Impairment | $ 0 | (7,300,000) | (11,800,000) | $ 0 |
Intangible assets, net | 27,500,000 | 34,800,000 | ||
Broker/customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, cost | 334,700,000 | 334,700,000 | ||
Accumulated Amortization | (65,081,000) | (27,327,000) | ||
Impairment | 0 | 0 | ||
Net | $ 269,619,000 | $ 307,373,000 | ||
Amortization Period (Years) | 9 years | 9 years | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Accumulated Amortization | $ (65,081,000) | $ (27,327,000) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 7,300,000 | $ 11,800,000 | ||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment Of Goodwill, Intangible Assets, And Other Assets | |||||
Amortization expense | $ 27,300,000 | 37,800,000 | ||||
Trade name | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | 7,300,000 | $ 11,800,000 | $ 0 | ||
Operating segments | Portfolio Management | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 3,800,000 | |||||
Operating segments | Reverse Originations | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 3,500,000 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Schedule of Estimated Amortization (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 37,189 |
2024 | 37,189 |
2025 | 37,189 |
2026 | 37,189 |
2027 | 37,189 |
Thereafter | 83,674 |
Total future amortization expense | $ 269,619 |
Other Assets, Net - Summary Of
Other Assets, Net - Summary Of Other Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets, Net [Line Items] | ||
Government guaranteed receivables | $ 66,947 | $ 46,958 |
Receivables, net of allowance of $5,173 and $0, respectively | 53,261 | 27,825 |
Retained bonds | 46,439 | 55,614 |
Right-of-use assets (Note 21 - Leases) | 27,933 | 30,684 |
Loans subject to repurchase from Ginnie Mae | 15,631 | 7,956 |
Prepaid expenses | 10,646 | 15,732 |
Servicer advances, net of allowance of $2,416 and $2,115, respectively | 7,107 | 10,552 |
Margin deposits (Note 13 - Derivative and Risk Management Activities) | 4,065 | 22,787 |
Deposits | 1,191 | 1,154 |
Investments | 300 | 6,000 |
Receivable from clearing organization | 0 | 2,038 |
Other | 31,118 | 45,121 |
Total other assets, net | 264,638 | 272,421 |
Accounts receivable, allowance for credit loss | 5,173 | 0 |
Servicer advances, allowance | 2,416 | 2,115 |
American Advisors Group (AAG) | ||
Other Assets, Net [Line Items] | ||
Receivables, net of allowance of $5,173 and $0, respectively | $ 20,000 | $ 0 |
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Home Equity Conversion Mortgage Backed Security Related to Obligations At Fair Value [Line Items] | ||
Ginnie Mae loan pools - UPB | $ 10,719,000 | $ 9,849,835 |
Fair value adjustments | 277,755 | 572,523 |
Total HMBS related obligations, at fair value | $ 10,996,755 | $ 10,422,358 |
Weighted average remaining life (in years) | 4 years | 4 years 7 months 6 days |
Weighted average interest rate | 5% | 2.50% |
HMBS Related Obligations, at _4
HMBS Related Obligations, at Fair Value - Narrative (Details) - LoanPools | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Ginnie Mae loan pools | 1,849,000 | 2,004,000 |
Nonrecourse Debt, at Fair Val_3
Nonrecourse Debt, at Fair Value - Summary of Nonrecourse Debt at Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Nonrecourse MSR financing liability, at fair value | $ 60,562 | $ 142,435 |
Nonrecourse commercial loan financing liability | 105,291 | 107,744 |
Fair value adjustments | (642,668) | 39,379 |
Total nonrecourse debt, at fair value | 7,343,177 | 6,111,242 |
Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 7,819,992 | 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 | $ 953,336 | 922,970 |
Securitization of performing / nonperforming HECM loans | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.88% | |
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 - December 2022 | |
Final Maturity Date | March 2050 - November 2069 | |
Original Issue Amount | $ 8,363,562 | |
Securitization of non-agency reverse loans | Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 6,598,145 | 4,630,203 |
Securitization of non-agency reverse loans | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.75% | |
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) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Nonrecourse MSR financing liability | $ 60,562 | $ 142,435 |
Total payments on nonrecourse debt | 399,402 | $ 353,383 |
Nonrecourse | ||
Debt Instrument [Line Items] | ||
2023 | 1,685,944 | |
2024 | 2,248,967 | |
2025 | 884,036 | |
2026 | 359,841 | |
2027 | 2,746,495 | |
Thereafter | 0 | |
Total payments on nonrecourse debt | $ 7,985,845 |
Other Financing Lines of Cred_3
Other Financing Lines of Credit - Narrative (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Mortgage Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Advances, threshold limit (in percent) | 100% | |
Advance provided under various facilities (in percent) | 70% | |
Mortgage Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Advance provided under various facilities (in percent) | 45% | |
Reverse Mortgage Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Advances, threshold limit (in percent) | 100% | |
Advance provided under various facilities (in percent) | 104% | |
Reverse Mortgage Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Advance provided under various facilities (in percent) | 30% | |
Commercial Loan Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Advances, threshold limit (in percent) | 100% | |
Advance provided under various facilities (in percent) | 90% | |
Commercial Loan Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Advance provided under various facilities (in percent) | 70% | |
Line of credit | ||
Line of Credit Facility [Line Items] | ||
Financing line of credit outstanding, weighted average interest rate | 7.35% | 3.77% |
Other Financing Lines of Cred_4
Other Financing Lines of Credit - Summary Of Components of Other Financing Lines of Credit (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 2,534,132 | |
Outstanding borrowings | 1,327,634 | $ 1,530,637 |
Mortgage Lines | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 414,877 | |
Outstanding borrowings | 139,225 | 179,733 |
Mortgage Lines | October 2023, First Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 311,673 | |
Outstanding borrowings | 83,814 | 0 |
Mortgage Lines | November 2023, Home Improvement Consumer Loans | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 50,000 | |
Outstanding borrowings | 7,495 | 5,107 |
Mortgage Lines | March 2026, MSR | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 15,600 | |
Outstanding borrowings | 10,312 | 138,524 |
Mortgage Lines | No Maturity Date, Mortgage Related Assets | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 37,604 | |
Outstanding borrowings | 37,604 | 36,102 |
Reverse Lines | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 1,815,715 | |
Outstanding borrowings | 983,410 | 1,129,402 |
Reverse Lines | April 2023 - November 2023, First Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 1,375,000 | |
Outstanding borrowings | 584,658 | 714,013 |
Reverse Lines | No Maturity Date, Mortgage Related Assets | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 320,715 | |
Outstanding borrowings | 320,715 | 297,893 |
Reverse Lines | October 2027, MSR | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 70,000 | |
Outstanding borrowings | 33,036 | 78,952 |
Reverse Lines | May 2023, Unsecurized Tails | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 50,000 | |
Outstanding borrowings | $ 45,001 | 38,544 |
Reverse Lines | May 2023, Unsecurized Tails | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Reverse Lines | May 2023, Unsecurized 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 | $ 303,540 | |
Outstanding borrowings | 204,999 | 221,502 |
Commercial Lines | April 2023 - November 2023, First Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 191,040 | |
Outstanding borrowings | 159,938 | 167,159 |
Commercial Lines | August 2023, Encumbered Agricultural Loans | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 75,000 | |
Outstanding borrowings | $ 7,561 | $ 25,127 |
Commercial Lines | August 2023, Encumbered Agricultural Loans | Minimum | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 2.50% | 2.50% |
Commercial Lines | August 2023, Encumbered Agricultural Loans | Maximum | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 3.25% | 3.25% |
Commercial Lines | February 2023, Second Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 25,000 | |
Outstanding borrowings | $ 25,000 | $ 24,175 |
Interest Rate | 15% | 15% |
Commercial Lines | January 2024, Mortgage Related Assets | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 12,500 | |
Outstanding borrowings | $ 12,500 | $ 5,041 |
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 | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
FAM | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted tangible net worth | $ 100,907 | $ 180,032 |
Liquidity | $ 23,368 | $ 43,734 |
Debt instrument, covenant, leverage ratio | 9.30 | 13.9 |
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 | $ 267,067 | $ 527,443 |
Liquidity | $ 28,718 | $ 23,845 |
Debt instrument, covenant, leverage ratio | 5.29 | 2.9 |
FAH | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted tangible net worth | $ 310,850 | |
Liquidity | $ 52,270 | |
Debt instrument, covenant, leverage ratio | 6.55 | |
Requirement | FAM | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted tangible net worth | $ 100,000 | $ 150,000 |
Liquidity | $ 20,000 | $ 40,000 |
Debt instrument, covenant, leverage ratio | 13 | 15 |
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 | $ 24,724 | $ 20,000 |
Debt instrument, covenant, leverage ratio | 6 | 6 |
Requirement | FAH | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted tangible net worth | $ 300,000 | |
Liquidity | 45,000 | |
Debt instrument, covenant, leverage ratio | 10 | |
Maximum Allowable Distribution | FAM | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted tangible net worth | 907 | $ 30,032 |
Liquidity | $ 3,368 | $ 3,734 |
Debt instrument, covenant, leverage ratio | 28,732,000 | 12,154,000 |
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 | $ 17,067 | $ 109,617 |
Liquidity | $ 3,994 | $ 3,845 |
Debt instrument, covenant, leverage ratio | 31,808 | 264,134,000 |
Maximum Allowable Distribution | FAH | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted tangible net worth | $ 10,850 | |
Liquidity | $ 7,270 | |
Debt instrument, covenant, leverage ratio | 107,292 |
Payables and Other Liabilitie_2
Payables and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued liabilities | $ 56,302 | $ 77,307 |
GNMA reverse mortgage buyout payable | 41,768 | 31,274 |
Lease liabilities (Note 21 - Leases) | 34,391 | 31,364 |
Accrued compensation expense | 19,333 | 28,834 |
Liability for loans eligible for repurchase from GNMA | 15,631 | 7,956 |
Deferred purchase price liabilities | 3,918 | 34,764 |
Warrant liability | 1,117 | 5,497 |
Deferred tax liability, net (Note 28 - Income Taxes) | 887 | 18,413 |
Derivative liabilities (Note 13 - Derivative and Risk Management Activities) | 385 | 25,049 |
Total payables and other liabilities | $ 173,732 | $ 260,458 |
Payables and Other Liabilitie_3
Payables and Other Liabilities - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||
Number of trading days for determining the share price | 20 days | |
Number of consecutive trading days for determining the share price | 30 days | |
Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants or rights outstanding (in shares) | 14,375,000 | 14,375,000 |
Maturity date of warrants and rights outstanding | Apr. 01, 2026 | |
Term of warrants and rights outstanding (in years) | 5 years | |
Redemption price (in dollars per share) | $ 0.01 | |
Minimum notice period to be given to warrant holders prior to redemption | 30 days | |
Number of warrants or rights | 1 | |
Exercise price of warrant (in dollars per share) | $ 11.50 | |
Warrants and rights outstanding (in shares) | $ 1.1 | $ 5.5 |
Public Warrants | Class A Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Share price (in dollars per share) | $ 18 | |
Prior To Business Combinations | ||
Class of Warrant or Right [Line Items] | ||
Stock issued during period, new issues (in shares) | 28,750,000 | |
Prior To Business Combinations | Ordinary Share | ||
Class of Warrant or Right [Line Items] | ||
Stock issued during period, new issues (in shares) | 1 | |
Prior To Business Combinations | Redeemable Warrant | ||
Class of Warrant or Right [Line Items] | ||
Stock issued during period, new issues (in shares) | 0.5 |
Leases - Operating Lease inform
Leases - Operating Lease information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease, Right-of-use asset, Statement of Financial Position classification [Extensible List] | Other assets, net | Other assets, net |
Right-of-use assets (Note 21 - Leases) | $ 27,933 | $ 30,684 |
Operating lease liability, Statement of Financial Position classification [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Lease liabilities (Note 21 - Leases) | $ 34,391 | $ 31,364 |
Weighted-average remaining lease term (in years) | 9 years 3 months 14 days | 10 years 2 months 19 days |
Weighted average discount rate | 6.50% | 6.54% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |
Impairment of ROU asset | $ 2.2 |
Leases - Lease Cost and Other i
Leases - Lease Cost and Other information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 850 | $ 4,352 | $ 6,230 | $ 3,651 |
Short-term lease cost | 96 | 218 | 612 | 1,641 |
Total operating and short-term lease cost | 946 | 4,570 | 6,842 | 5,292 |
Variable lease cost | 876 | 1,582 | 991 | 348 |
Sublease income | (23) | (93) | (859) | (425) |
Net lease cost | 1,799 | 6,059 | 6,974 | 5,215 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | 889 | 2,442 | 4,856 | 3,767 |
Leased assets obtained in exchange for new operating lease liabilities | $ 433 | $ 23,723 | $ 7,400 | $ 1,349 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
2023 | $ 5,864 | |
2024 | 5,418 | |
2025 | 4,760 | |
2026 | 4,758 | |
2027 | 4,473 | |
Thereafter | 21,729 | |
Total undiscounted lease payments | 47,002 | |
Less: amounts representing interest | (12,611) | |
Lease liabilities (Note 21 - Leases) | $ 34,391 | $ 31,364 |
Notes Payable, Net - Narrative
Notes Payable, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 20, 2020 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Redemption price, principal amount redeemed (in percent) | 100% | ||||
Interest expense | $ 22,710 | $ 73,232 | $ 118,649 | $ 82,955 | |
Debt Instrument, Redemption, Period One | Senior unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Redemption price, principal amount redeemed (in percent) | 103.938% | ||||
Debt Instrument, Redemption, Period Two | Senior unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Redemption price, principal amount redeemed (in percent) | 101.969% | ||||
Debt Instrument, Redemption, Period Three | Senior unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Redemption price, principal amount redeemed (in percent) | 100% | ||||
Debt Instrument, Redemption, Period Five | Senior unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Redemption price, principal amount redeemed (in percent) | 101% | ||||
Senior unsecured notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 350,000 | 350,000 | 350,000 | ||
Interest expense | $ 7,700 | $ 22,600 | $ 31,000 | $ 4,300 |
Notes Payable, Net - Outstandin
Notes Payable, Net - Outstanding Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 20, 2020 |
Debt Instrument [Line Items] | |||
Fair value adjustment, net of amortization | $ 2,612 | $ 3,383 | |
Total payments on nonrecourse debt | $ 399,402 | 353,383 | |
Senior unsecured notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 7.90% | ||
Long-term debt, gross | $ 350,000 | 350,000 | $ 350,000 |
Related-party notes (Note 33 - Related-Party Transactions) | Notes Payable, Other Payables | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 46,790 | $ 0 |
Litigation (Details)
Litigation (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) lawsuit | Dec. 31, 2020 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of lawsuits | lawsuit | 3 | |||
Legal expenses | $ | $ 4 | $ 7 | $ 4.9 | $ 10.9 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 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% | |
LPCs | ||
Commitments and Contingencies [Line Items] | ||
Long-term purchase commitment | $ 1,700,000 | $ 178,600,000 |
Loan origination commitments | ||
Commitments and Contingencies [Line Items] | ||
Long-term purchase commitment | 133,600,000 | 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 | 128,900,000 | 94,900,000 |
Agricultural loans | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | $ 26,700,000 | $ 78,500,000 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 01, 2022 USD ($) | Oct. 28, 2020 | Mar. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Award $ / shares | Dec. 31, 2020 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of award types | Award | 2 | |||||
Replacement RSUs | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Equity based compensation expense | $ 0 | $ 43,300 | $ 23,200 | $ 0 | ||
Unrecognized equity based compensation expense | $ 23,000 | |||||
Unrecognized equity based compensation expense, period for recognition (in years) | 1 year 2 months 12 days | |||||
Earnout Right RSUs | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Equity based compensation expense | 0 | 4,400 | $ 2,900 | 0 | ||
Unrecognized equity based compensation expense | $ 1,000 | |||||
Unrecognized equity based compensation expense, period for recognition (in years) | 1 year | |||||
Employee Stock | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Fixed contribution rate | 15% | |||||
Maximum contribution amount | $ 50 | |||||
Restricted stock units granted (in percent) | 20% | |||||
Non-LTIP RSUs | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Equity based compensation expense | $ 0 | $ 300 | $ 3,800 | $ 0 | ||
Unrecognized equity based compensation expense | $ 6,200 | |||||
Unrecognized equity based compensation expense, period for recognition (in years) | 2 years 1 month 6 days | |||||
Share-Based Payment Arrangement, Tranche One | Share Price Greater Than Or Equal To $12.50 | Class A Common Stock | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share price (in dollars per share) | $ / shares | $ 12.50 | |||||
Number of trading days determining common stock share price | 20 days | |||||
Number of consecutive trading days for determining common stock share price | 30 days | |||||
Share-Based Payment Arrangement, Tranche Two | Share Price Greater Than Or Equal To $15.00 | Class A Common Stock | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share price (in dollars per share) | $ / shares | $ 15 | |||||
Number of trading days determining common stock share price | 20 days | |||||
Number of consecutive trading days for determining common stock share price | 30 days | |||||
Amended And Restated Long Term Incentive Plan | Earnout Right RSUs | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Expected volatility rate (in percent) | 60% | |||||
Risk free rate (in percent) | 1.14% | |||||
Amended And Restated Long Term Incentive Plan | Maximum | Replacement RSUs | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vested awards under share-based payment arrangement (in percent) | 75% | |||||
Amended And Restated Long Term Incentive Plan | Share-Based Payment Arrangement, Tranche Three | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vested awards under share-based payment arrangement (in percent) | 25% | |||||
Amended And Restated Long Term Incentive Plan | Share-Based Payment Arrangement, Tranche One | Earnout Right RSUs | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Expected term (in years) | 1 year 21 days | |||||
Vesting period (in years) | 6 years | |||||
Amended And Restated Long Term Incentive Plan | Share-Based Payment Arrangement, Tranche Two | Earnout Right RSUs | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Expected term (in years) | 1 year 6 months 7 days | |||||
Vesting period (in years) | 6 years |
Equity-Based Compensation - RSU
Equity-Based Compensation - RSU Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Replacement RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 10,412,866 |
Vested (in shares) | 0 |
Forfeited (in shares) | (557,281) |
Settled (in shares) | (5,122,137) |
Ending balance (in shares) | 4,733,448 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 9.48 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 9.48 |
Settled (in dollars per share) | $ / shares | 9.48 |
Ending balance (in dollars per share) | $ / shares | $ 9.48 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Fair Value [Roll Forward] | |
Beginning Balance | $ | $ 98,714 |
Vested | $ | 0 |
Forfeited | $ | (5,283) |
Settled | $ | (48,558) |
Ending Balance | $ | $ 44,873 |
Earnout Right RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 1,531,440 |
Forfeited (in shares) | (58,320) |
Ending balance (in shares) | 1,473,120 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 8.91 |
Forfeited (in dollars per share) | $ / shares | 8.91 |
Ending balance (in dollars per share) | $ / shares | $ 8.91 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Fair Value [Roll Forward] | |
Beginning Balance | $ | $ 13,638 |
Forfeited | $ | (519) |
Ending Balance | $ | $ 13,119 |
Non-LTIP RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 168,221 |
Granted (in shares) | 4,403,158 |
Vested (in shares) | 0 |
Forfeited (in shares) | (699,937) |
Settled (in shares) | (473,783) |
Ending balance (in shares) | 3,397,659 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 5.35 |
Granted (in dollars per share) | $ / shares | 2.94 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 3 |
Settled (in dollars per share) | $ / shares | 3.56 |
Ending balance (in dollars per share) | $ / shares | $ 2.96 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Fair Value [Roll Forward] | |
Beginning Balance | $ | $ 900 |
Granted | $ | 12,938 |
Vested | $ | 0 |
Forfeited | $ | (2,102) |
Settled | $ | (1,686) |
Ending Balance | $ | $ 10,050 |
Unvested Awards | Replacement RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 10,392,226 |
Vested (in shares) | 5,713,819 |
Forfeited (in shares) | (557,281) |
Settled (in shares) | 0 |
Ending balance (in shares) | 4,121,126 |
Unvested Awards | Earnout Right RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 1,531,440 |
Forfeited (in shares) | (58,320) |
Ending balance (in shares) | 1,473,120 |
Unvested Awards | Non-LTIP RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 168,221 |
Granted (in shares) | 4,403,158 |
Vested (in shares) | 499,338 |
Forfeited (in shares) | (699,937) |
Settled (in shares) | 0 |
Ending balance (in shares) | 3,372,104 |
Vested Awards | Replacement RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 20,640 |
Vested (in shares) | 5,713,819 |
Forfeited (in shares) | 0 |
Settled (in shares) | (5,122,137) |
Ending balance (in shares) | 612,322 |
Vested Awards | Earnout Right RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 0 |
Forfeited (in shares) | 0 |
Ending balance (in shares) | 0 |
Vested Awards | Non-LTIP RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 0 |
Granted (in shares) | 0 |
Vested (in shares) | 499,338 |
Forfeited (in shares) | 0 |
Settled (in shares) | (473,783) |
Ending balance (in shares) | 25,555 |
Fee Income (Details)
Fee Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | ||||
Loan servicing fees, net | $ 13,494 | $ 43,639 | $ 45,965 | $ 20,063 |
Loan origination fees | 1,206 | 14,100 | 18,476 | 7,848 |
Change in fair value of MSR | 20,739 | (18,400) | 14,348 | 4,562 |
Other fee income | 1,108 | 2,347 | 3,026 | 57 |
Total fee income | $ 36,547 | $ 41,686 | $ 81,815 | $ 32,530 |
General and Administrative Ex_3
General and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | ||||
Depreciation and amortization | $ 771 | $ 30,576 | $ 42,028 | $ 3,012 |
Loan portfolio expenses | 9,157 | 27,557 | 37,712 | 27,465 |
Securitization expenses | 4,966 | 13,040 | 32,152 | 13,893 |
Communications and data processing | 4,240 | 18,869 | 27,733 | 12,761 |
Loan origination expenses | 5,370 | 10,883 | 19,927 | 12,931 |
Business development | 2,684 | 9,329 | 13,031 | 12,468 |
Other expenses | 8,850 | 21,703 | 31,585 | 33,605 |
Total general and administrative expenses | $ 36,038 | $ 131,957 | $ 204,168 | $ 116,135 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) For Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Deferred benefit | ||||
Provision (benefit) for income taxes from continuing operations | $ 18 | $ (7,182) | $ (17,132) | $ 150 |
Continuing Operations | ||||
Current expense | ||||
Federal | 18 | 67 | 384 | 150 |
State | 0 | 0 | 8 | 0 |
Subtotal | 18 | 67 | 392 | 150 |
Deferred benefit | ||||
Federal | 0 | (6,085) | (13,953) | 0 |
State | 0 | (1,164) | (3,571) | 0 |
Subtotal | 0 | (7,249) | (17,524) | 0 |
Provision (benefit) for income taxes from continuing operations | $ 18 | $ (7,182) | $ (17,132) | $ 150 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | ||
Valuation allowance, net change, increase (decrease), including offset to additional-paid-in capital | $ 3,800 | |
Operating loss carryforwards, net | $ 32,800 | 80,300 |
Valuation allowance, net change, increase (decrease) | $ 600 | 23,900 |
Valuation allowance, net change, increase (decrease), offset to additional-paid-in capital | (11,800) | |
State and Local Jurisdiction | ||
Income Tax Contingency [Line Items] | ||
Valuation allowance, net change, increase (decrease), including offset to additional-paid-in capital | 700 | |
Domestic Tax Authority | ||
Income Tax Contingency [Line Items] | ||
Valuation allowance, net change, increase (decrease), including offset to additional-paid-in capital | $ 3,100 |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Effective Incomes Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Provision (benefit) for income taxes from continuing operations | $ 18 | $ (7,182) | $ (17,132) | $ 150 |
Continuing Operations | ||||
Income Tax Contingency [Line Items] | ||||
Tax expense (benefit) at federal statutory rate | 2,935 | (88,623) | (72,030) | 3,181 |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Noncontrolling interest | (3,060) | 64,236 | 54,414 | (3,480) |
Permanent differences | 0 | (1,872) | (17) | 0 |
Goodwill impairment | 0 | 21,719 | 0 | 0 |
State taxes | 0 | (1,236) | (3,531) | 0 |
Valuation allowance | 0 | 0 | 3,073 | 0 |
Other tax adjustments | 143 | (1,406) | 959 | 449 |
Provision (benefit) for income taxes from continuing operations | $ 18 | $ (7,182) | $ (17,132) | $ 150 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Effective Tax Rate | 0.13% | 1.70% | 4.99% | 0.99% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Loss carryforwards | $ 20,845 | $ 8,582 |
Research and development tax credits | 1,092 | 172 |
Earnout awards | 5,183 | 0 |
TRA | 983 | 9,107 |
Other | 234 | 0 |
Gross deferred tax assets | 28,337 | 17,861 |
Valuation allowance | (24,710) | (777) |
Deferred tax assets, net of valuation allowance | 3,627 | 17,084 |
Deferred tax liabilities | ||
Investment in FoA Equity | 4,428 | 35,345 |
Other | 86 | 152 |
Gross deferred tax liabilities | 4,514 | 35,497 |
Net deferred tax liability | $ (887) | $ (18,413) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Excluding Related Interest And Penalties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits—beginning of period | $ 0 | $ 0 | $ 74 | $ 0 |
Increases on tax positions related to the current period | 0 | 74 | 233 | 0 |
Unrecognized tax benefits—end of period | $ 0 | $ 74 | $ 307 | $ 0 |
Compensation Related Costs, Ret
Compensation Related Costs, Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||||
Employer contributions | $ 0.8 | $ 1.9 | $ 3.6 | $ 1.7 |
Business Segment Reporting (Det
Business Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) segment | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | $ 5,065 | $ 35,800 | $ (5,931) | $ 10,192 | |
Net fair value gains (losses) on loans and related obligations | 71,198 | 296,127 | |||
Fee income | 36,547 | 41,686 | 81,815 | 32,530 | |
Interest income | 150 | 2,334 | 6,038 | 729 | |
Interest expense | (22,710) | (73,232) | (118,649) | (82,955) | |
Net interest expense | (22,560) | (82,226) | |||
TOTAL REVENUES | 90,250 | 297,609 | 52,762 | 256,623 | |
TOTAL EXPENSES | 67,232 | 304,531 | 418,226 | 235,344 | |
IMPAIRMENT OF GOODWILL, INTANGIBLES, AND OTHER ASSETS | 0 | (425,777) | (9,528) | 0 | |
Other, net | (9,043) | 10,684 | 31,992 | (6,131) | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 13,975 | (422,015) | (343,000) | 15,148 | |
Depreciation and amortization | 771 | 3,012 | |||
TOTAL ASSETS | 17,473,006 | 21,788,946 | $ 21,788,946 | $ 20,872,655 | 17,010,299 |
Number of reportable segments | segment | 3 | ||||
Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 35,800 | $ (5,931) | |||
Net fair value gains (losses) on loans and related obligations | 291,021 | 89,489 | |||
Fee income | 41,686 | 81,815 | |||
Interest income | 2,334 | 6,038 | |||
Interest expense | (73,232) | (118,649) | |||
Net interest expense | (70,898) | (112,611) | |||
TOTAL REVENUES | 297,609 | 52,762 | |||
TOTAL EXPENSES | 304,531 | 418,226 | |||
IMPAIRMENT OF GOODWILL, INTANGIBLES, AND OTHER ASSETS | (425,777) | (9,528) | |||
Other, net | 10,684 | 31,992 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (422,015) | (343,000) | |||
Depreciation and amortization | 30,576 | 42,028 | |||
TOTAL ASSETS | 19,469,375 | 19,469,375 | 20,559,295 | ||
Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 5,065 | 10,192 | |||
Net fair value gains (losses) on loans and related obligations | 71,199 | 296,129 | |||
Fee income | 36,715 | 29,839 | |||
Interest income | 138 | 714 | |||
Interest expense | (14,954) | (73,877) | |||
Net interest expense | (14,816) | (73,163) | |||
TOTAL REVENUES | 98,163 | 262,997 | |||
TOTAL EXPENSES | 48,099 | 178,073 | |||
Other, net | 929 | 0 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 50,993 | 84,924 | |||
Depreciation and amortization | 297 | 1,027 | |||
TOTAL ASSETS | 17,413,949 | 16,921,661 | |||
Operating segments | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 35,800 | (5,931) | |||
Net fair value gains (losses) on loans and related obligations | 286,400 | 88,577 | |||
Fee income | 41,675 | 82,287 | |||
Interest income | 2,058 | 5,362 | |||
Interest expense | (52,989) | (90,980) | |||
Net interest expense | (50,931) | (85,618) | |||
TOTAL REVENUES | 312,944 | 79,315 | |||
TOTAL EXPENSES | 230,069 | 306,347 | |||
IMPAIRMENT OF GOODWILL, INTANGIBLES, AND OTHER ASSETS | (425,777) | (7,300) | |||
Other, net | 1,418 | 4,150 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (341,484) | (230,182) | |||
Depreciation and amortization | 29,151 | 38,973 | |||
TOTAL ASSETS | 19,343,316 | 19,343,316 | 20,483,340 | ||
Operating segments | Retirement Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 0 | 0 | |||
Net fair value gains (losses) on loans and related obligations | 68,449 | 192,257 | |||
Fee income | 524 | 1,837 | |||
Interest income | 0 | 0 | |||
Interest expense | 0 | 0 | |||
Net interest expense | 0 | 0 | |||
TOTAL REVENUES | 68,973 | 194,094 | |||
TOTAL EXPENSES | 23,693 | 87,219 | |||
Other, net | 34 | 0 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 45,314 | 106,875 | |||
Depreciation and amortization | 151 | 897 | |||
TOTAL ASSETS | 35,861 | 25,841 | |||
Operating segments | Retirement Solutions | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | (4,150) | 367 | |||
Net fair value gains (losses) on loans and related obligations | 317,138 | 283,808 | |||
Fee income | 11,220 | 15,526 | |||
Interest income | 1,031 | 43 | |||
Interest expense | (364) | (54) | |||
Net interest expense | 667 | (11) | |||
TOTAL REVENUES | 324,875 | 299,690 | |||
TOTAL EXPENSES | 137,872 | 182,287 | |||
IMPAIRMENT OF GOODWILL, INTANGIBLES, AND OTHER ASSETS | (413,868) | (3,500) | |||
Other, net | 248 | 3,290 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (226,617) | 117,193 | |||
Depreciation and amortization | 29,019 | 38,654 | |||
TOTAL ASSETS | 368,927 | 368,927 | 297,361 | ||
Operating segments | Portfolio Management | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 5,065 | 10,192 | |||
Net fair value gains (losses) on loans and related obligations | 2,750 | 103,872 | |||
Fee income | 36,191 | 28,002 | |||
Interest income | 138 | 714 | |||
Interest expense | (14,954) | (73,877) | |||
Net interest expense | (14,816) | (73,163) | |||
TOTAL REVENUES | 29,190 | 68,903 | |||
TOTAL EXPENSES | 24,406 | 90,854 | |||
Other, net | 895 | 0 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 5,679 | (21,951) | |||
Depreciation and amortization | 146 | 130 | |||
TOTAL ASSETS | 17,378,088 | 16,895,820 | |||
Operating segments | Portfolio Management | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 39,950 | (6,298) | |||
Net fair value gains (losses) on loans and related obligations | (30,738) | (195,231) | |||
Fee income | 30,455 | 66,761 | |||
Interest income | 1,027 | 5,319 | |||
Interest expense | (52,625) | (90,926) | |||
Net interest expense | (51,598) | (85,607) | |||
TOTAL REVENUES | (11,931) | (220,375) | |||
TOTAL EXPENSES | 92,197 | 124,060 | |||
IMPAIRMENT OF GOODWILL, INTANGIBLES, AND OTHER ASSETS | (11,909) | (3,800) | |||
Other, net | 1,170 | 860 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (114,867) | (347,375) | |||
Depreciation and amortization | 132 | 319 | |||
TOTAL ASSETS | 18,974,389 | 18,974,389 | 20,185,979 | ||
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 0 | 0 | |||
Net fair value gains (losses) on loans and related obligations | 0 | 0 | |||
Fee income | 7,936 | 25,392 | |||
Interest income | 12 | 15 | |||
Interest expense | (7,756) | (8,946) | |||
Net interest expense | (7,744) | (8,931) | |||
TOTAL REVENUES | 192 | 16,461 | |||
TOTAL EXPENSES | 27,746 | 80,106 | |||
Other, net | (9,464) | (6,131) | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (37,018) | (69,776) | |||
Depreciation and amortization | 474 | 1,985 | |||
TOTAL ASSETS | 385,370 | 88,638 | |||
Corporate and Other | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 0 | 0 | |||
Net fair value gains (losses) on loans and related obligations | 0 | 0 | |||
Fee income | 25,243 | 27,578 | |||
Interest income | 276 | 676 | |||
Interest expense | (20,243) | (27,669) | |||
Net interest expense | (19,967) | (26,993) | |||
TOTAL REVENUES | 5,276 | 585 | |||
TOTAL EXPENSES | 101,005 | 139,014 | |||
IMPAIRMENT OF GOODWILL, INTANGIBLES, AND OTHER ASSETS | 0 | (2,228) | |||
Other, net | 15,198 | 27,839 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (80,531) | (112,818) | |||
Depreciation and amortization | 1,425 | 3,055 | |||
TOTAL ASSETS | 1,083,412 | 1,083,412 | 1,610,355 | ||
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 0 | 0 | |||
Net fair value gains (losses) on loans and related obligations | (1) | (2) | |||
Fee income | (8,104) | (22,701) | |||
Interest income | 0 | 0 | |||
Interest expense | 0 | (132) | |||
Net interest expense | 0 | (132) | |||
TOTAL REVENUES | (8,105) | (22,835) | |||
TOTAL EXPENSES | (8,613) | (22,835) | |||
Other, net | (508) | 0 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | |||
TOTAL ASSETS | $ (326,313) | $ 0 | |||
Eliminations | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale and other income from loans held for sale, net | 0 | 0 | |||
Net fair value gains (losses) on loans and related obligations | 4,621 | 912 | |||
Fee income | (25,232) | (28,050) | |||
Interest income | 0 | 0 | |||
Interest expense | 0 | 0 | |||
Net interest expense | 0 | 0 | |||
TOTAL REVENUES | (20,611) | (27,138) | |||
TOTAL EXPENSES | (26,543) | (27,135) | |||
IMPAIRMENT OF GOODWILL, INTANGIBLES, AND OTHER ASSETS | |||||
Other, net | (5,932) | 3 | |||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | |||
TOTAL ASSETS | $ (957,353) | $ (957,353) | $ (1,534,400) |
Liquidity and Capital Require_2
Liquidity and Capital Requirements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Liquidity And Capital Requirements [Line Items] | ||
Cash and cash equivalents | $ 61,149 | $ 103,778 |
Minimum net capital requirement | 250 | |
FAM | ||
Liquidity And Capital Requirements [Line Items] | ||
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 | $ 112,400 | |
Tangible capital, actual | 254,700 | |
Cash | 22,500 | |
Cash and cash equivalents | 28,700 | |
Minimum adjusted net worth balance of capital requirements | 139,800 | |
Adjusted tangible net worth | 100,907 | $ 180,032 |
FAM | MISSOURI | ||
Liquidity And Capital Requirements [Line Items] | ||
Adjusted tangible net worth | $ 102,900 |
Concentrations of Risk - Narrat
Concentrations of Risk - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | May 31, 2021 | Jul. 31, 2017 | |
Concentration Risk [Line Items] | ||||||
Total payments on nonrecourse debt | $ 353,383 | $ 399,402 | ||||
Mezzanine Financing Agreement | Non-Affiliated Blackstone Portfolio Companies | ||||||
Concentration Risk [Line Items] | ||||||
Total payments on nonrecourse debt | 21,500 | 25,000 | ||||
Original Issue Amount | $ 25,000 | $ 45,000 | ||||
Private investors | ||||||
Concentration Risk [Line Items] | ||||||
Transfer of loans held-for-sale to portfolio loans | $ 854,100 | $ 3,491,700 | $ 3,373,100 | $ 3,613,400 | ||
Private investors | Non-agency reverse mortgage loans | Credit Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 39.70% | 84.50% | 55.20% | |||
Private investors | Commercial Loans | Credit Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 33.10% | 12.90% | 7.50% | 12.30% | ||
Private investors | Residential mortgage loans | Credit Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 66.90% | 47.40% | 8% | 26% | ||
Private investors | Agency Reverse Mortgage Loan | Credit Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 6.50% | |||||
FNMA, FHLMC, and Ginnie Mae | ||||||
Concentration Risk [Line Items] | ||||||
Transfer of loans held-for-sale to portfolio loans | $ 450,100 | $ 1,965,400 | $ 2,255,500 | $ 1,479,900 |
Concentrations of Risk - Geogra
Concentrations of Risk - Geographic Risk (Details) - Mortgage Loans Customer - Mortgage Loans Benchmark - Credit Concentration Risk | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reverse Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 100% | 100% |
Reverse Mortgage | Agency [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 64% | 70% |
Reverse Mortgage | Non-agency | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 36% | 30% |
Reverse Mortgage | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 5% | |
Non-Agency Reverse Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 100% | 100% |
Non-Agency Reverse Mortgage | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 5% | |
Nonperforming HECM buyouts | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 100% | 100% |
Nonperforming HECM buyouts | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 5% | |
Commercial Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 100% | 100% |
Commercial Mortgage | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 5% | |
California | Reverse Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 47% | 45% |
California | Non-Agency Reverse Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 77% | 81% |
California | Nonperforming HECM buyouts | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 9% | 10% |
California | Commercial Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 4% | 5% |
New York | Reverse Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 7% | 8% |
New York | Nonperforming HECM buyouts | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 20% | 17% |
Florida | Reverse Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 5% | 5% |
Florida | Nonperforming HECM buyouts | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 5% | 6% |
Florida | Commercial Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 7% | 6% |
Texas | Reverse Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 4% | 5% |
Texas | Nonperforming HECM buyouts | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10% | 10% |
Texas | Commercial Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 4% | 5% |
Other | Reverse Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 37% | 37% |
Other | Non-Agency Reverse Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 23% | 19% |
Other | Nonperforming HECM buyouts | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 42% | 42% |
Other | Commercial Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 64% | 66% |
Puerto Rico | Nonperforming HECM buyouts | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 14% | 15% |
Illinois | Commercial Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 13% | 11% |
New Jersey | Commercial Mortgage | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 8% | 7% |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 segment | Mar. 31, 2023 USD ($) shares | Mar. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | Nov. 30, 2020 USD ($) | |
Related Party Transaction [Line Items] | |||||||
Mortgage servicing rights, at fair value | $ 142,435,000 | $ 60,562,000 | |||||
Working Capital Promissory Notes | |||||||
Related Party Transaction [Line Items] | |||||||
Outstanding advance | 0 | $ 46,790,000 | |||||
Interest expense, related party | $ 3,100,000 | ||||||
Working Capital Promissory Notes | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Number of promissory notes | segment | 2 | ||||||
Working Capital Promissory Notes | BTO Urban Holdings And Libman Family Holdings, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Interest rate (in percent) | 6.50% | ||||||
Outstanding advance | $ 50,000,000 | ||||||
Originated Agricultural Loans | FarmOp Capital Holdings, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, purchases from related party | $ 83,000,000 | 155,800,000 | 142,300,000 | 146,200,000 | |||
Originated Agricultural Loans Funded Draw Amounts | FarmOp Capital Holdings, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, amounts of transaction | $ 82,100,000 | 182,400,000 | $ 211,400,000 | $ 126,400,000 | |||
Promissory Notes | FarmOp Capital Holdings, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Interest rate (in percent) | 10% | ||||||
Outstanding promissory notes | 4,100,000 | $ 4,700,000 | |||||
Allowance for loan losses | $ 0 | $ 4,700,000 | |||||
Promissory Notes | Related Parties Of FOA | |||||||
Related Party Transaction [Line Items] | |||||||
Original issue amount | $ 135,000,000 | ||||||
Stock Purchase Agreement | Blackstone Investor | Forecast | Class A Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Numbers of shares purchased by investors | shares | 10,869,566 | ||||||
Aggregate purchase price of shares purchased by investors | $ 15,000,000 | ||||||
Stock Purchase Agreement | BL Investor | Forecast | Class A Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Numbers of shares purchased by investors | shares | 10,869,566 | ||||||
Aggregate purchase price of shares purchased by investors | $ 15,000,000 |
Condensed Financial Informati_3
Condensed Financial Information of Registrant - Condensed Statements of Financial Condition (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
TOTAL ASSETS | $ 20,872,655 | $ 21,788,946 | $ 17,473,006 | $ 17,010,299 |
LIABILITIES AND EQUITY | ||||
Payables and other liabilities | 173,732 | 260,458 | ||
TOTAL LIABILITIES | 20,467,814 | 20,705,936 | ||
EQUITY | ||||
Additional paid-in capital | 888,488 | 831,620 | ||
Accumulated deficit | (634,295) | (443,613) | ||
Accumulated other comprehensive loss | (273) | (110) | ||
TOTAL LIABILITIES AND EQUITY | 20,872,655 | 21,788,946 | ||
Class A Common Stock | ||||
EQUITY | ||||
Common stock, value | $ 6 | $ 6 | ||
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) | 67,681,856 | 65,013,569 | ||
Common stock, shares outstanding (in shares) | 63,423,356 | 60,755,069 | ||
Parent Company | ||||
ASSETS | ||||
Investment in subsidiaries | $ 259,895 | $ 446,517 | ||
TOTAL ASSETS | 259,895 | 446,517 | ||
LIABILITIES AND EQUITY | ||||
Payables and other liabilities | 5,784 | 58,538 | ||
TOTAL LIABILITIES | 5,784 | 58,538 | ||
EQUITY | ||||
Additional paid-in capital | 888,488 | 831,620 | ||
Accumulated deficit | (634,295) | (443,613) | ||
Accumulated other comprehensive loss | (88) | (34) | ||
TOTAL EQUITY | 254,111 | 387,979 | ||
TOTAL LIABILITIES AND EQUITY | 259,895 | 446,517 | ||
Parent Company | Class A Common Stock | ||||
EQUITY | ||||
Common stock, value | $ 6 | $ 6 | ||
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) | 67,681,856 | 65,013,569 | ||
Common stock, shares outstanding (in shares) | 63,423,356 | 60,755,069 |
Condensed Financial Informati_4
Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Net interest expense: | ||||
Interest income | $ 150 | $ 2,334 | $ 6,038 | $ 729 |
Interest expense | (22,710) | (73,232) | (118,649) | (82,955) |
Net interest expense | (22,560) | (70,898) | (112,611) | (82,226) |
TOTAL REVENUES | 90,250 | 297,609 | 52,762 | 256,623 |
EXPENSES | ||||
Salaries, benefits, and related expenses | 30,274 | 166,805 | 206,943 | 115,029 |
Occupancy, equipment rentals, and other office related expenses | 920 | 5,769 | 7,115 | 4,180 |
General and administrative expenses | 36,038 | 131,957 | 204,168 | 116,135 |
TOTAL EXPENSES | 67,232 | 304,531 | 418,226 | 235,344 |
OTHER, NET | (9,043) | 10,684 | 31,992 | (6,131) |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 13,975 | (422,015) | (343,000) | 15,148 |
Benefit for income taxes applicable to parent | 18 | (7,182) | (17,132) | 150 |
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | 119,859 | (371,800) | (190,682) | 518,388 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | 119,848 | (371,834) | (190,736) | 518,448 |
Parent Company | ||||
Net interest expense: | ||||
Interest income | 0 | 0 | 0 | 164 |
Interest expense | (46) | 0 | 0 | (3,669) |
Net interest expense | (46) | 0 | 0 | (3,505) |
TOTAL REVENUES | (46) | 0 | 0 | (3,505) |
EXPENSES | ||||
Salaries, benefits, and related expenses | 4,041 | 0 | 0 | 7,710 |
Occupancy, equipment rentals, and other office related expenses | 161 | 0 | 0 | 632 |
General and administrative expenses | 357 | 0 | 0 | 1,292 |
TOTAL EXPENSES | 4,559 | 0 | 0 | 9,634 |
OTHER, NET | 0 | 15,042 | 40,163 | 0 |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (4,605) | 15,042 | 40,163 | (13,139) |
Benefit for income taxes applicable to parent | 0 | (23,748) | (17,524) | 0 |
NET INCOME (LOSS) | (4,605) | 38,790 | 57,687 | (13,139) |
Equity (deficit) in undistributed income from subsidiaries | 124,464 | (410,590) | (248,369) | 531,527 |
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | 119,859 | (371,800) | (190,682) | 518,388 |
Other comprehensive income (loss) | (11) | (34) | (54) | 60 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ 119,848 | $ (371,834) | $ (190,736) | $ 518,448 |
Condensed Financial Informati_5
Condensed Financial Information of Registrant - Narrative (Details) - Parent Company - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Dividends | $ 75,000,000 | $ 0 | $ 0 | $ 380,400,000 |
FoA | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Percentage of restricted net assets to consolidated net assets | 25% |
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 | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Numerator | ||||
Net loss from continuing operations | $ 13,957 | $ (414,833) | $ (325,868) | $ 14,998 |
Net loss attributable to noncontrolling interest from continuing operations | 0 | (307,212) | (261,450) | 0 |
Net loss from continuing operations attributable to holders of Class A Common Stock - basic | (107,621) | (64,418) | ||
Net loss from discontinued operations | 110,363 | (886,169) | (389,660) | 482,915 |
Net income (loss) attributable to noncontrolling interest from discontinued operations | $ 201 | (621,990) | (263,396) | $ 1,274 |
Net loss from discontinued operations attributable to holders of Class A Common Stock - basic | $ (264,179) | $ (126,264) | ||
Denominator | ||||
Basic weighted average shares outstanding (in shares) | 59,849,638 | 62,298,532 | ||
Basic net loss per share from continuing operations (in USD per share) | $ (1.80) | $ (1.03) | ||
Basic net loss per share from discontinued operations (in USD per share) | (4.41) | (2.03) | ||
Basic, net loss per share (in USD per share) | $ (6.21) | $ (3.06) |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Diluted Earnings Per Share by Common Class (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Numerator | ||
Net loss from continuing operations attributable to holders of Class A Common Stock - basic | $ (107,621) | $ (64,418) |
Net loss from discontinued operations attributable to holders of Class A Common Stock - basic | $ (264,179) | $ (126,264) |
Denominator | ||
Basic weighted average shares outstanding (in shares) | shares | 59,849,638 | 62,298,532 |
Diluted weighted average shares outstanding (in shares) | shares | 190,597,249 | 188,236,513 |
Earnings Per Share, Diluted EPS [Abstract] | ||
Diluted net loss per share from continuing operations (in USD per share) | $ / shares | $ (2.08) | $ (1.58) |
Diluted net loss per share (in USD per share) | $ / shares | $ (6.52) | $ (3.12) |
Exchange ratio | 1 | |
Class A Common Stock | ||
Numerator | ||
Net loss from continuing operations attributable to holders of Class A Common Stock - basic | $ (107,621) | $ (64,418) |
Reallocation of net loss from continuing operations assuming exchange of Class A LLC Units | (289,568) | (233,420) |
Net loss from continuing operations attributable to holders of Class A Common Stock - diluted | (397,189) | (297,838) |
Net loss from discontinued operations attributable to holders of Class A Common Stock - basic | (264,179) | (126,264) |
Reallocation of net loss from discontinued operations assuming exchange of Class A LLC Units | (582,253) | (162,486) |
Net loss from discontinued operations attributable to holders of Class A Common Stock - diluted | $ (846,432) | $ (288,750) |
Denominator | ||
Basic weighted average shares outstanding (in shares) | shares | 59,849,638 | 62,298,532 |
Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (in shares) | shares | 130,747,611 | 125,937,981 |
Diluted weighted average shares outstanding (in shares) | shares | 190,597,249 | 188,236,513 |
Earnings Per Share, Diluted EPS [Abstract] | ||
Diluted net loss per share from continuing operations (in USD per share) | $ / shares | $ (2.08) | $ (1.58) |
Diluted net loss per share from discontinued operations (in USD per share) | $ / shares | (4.44) | (1.54) |
Diluted net loss per share (in USD per share) | $ / shares | $ (6.52) | $ (3.12) |
Award vesting cost responsibility (in percent) | 85% |
Sponsor Earnout (Details)
Sponsor Earnout (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Apr. 08, 2019 | Dec. 31, 2022 | |
Sponsor Agreement | ||
Sponsor Earnout [Line Items] | ||
Sponsor shares vested prior to business combination (in percent) | 40% | |
Sponsor shares subject to vesting and forfeiture after business combination (in percent) | 60% | |
Independent Directors | Founder Shares | ||
Sponsor Earnout [Line Items] | ||
Shares issued for services (in shares) | 90,000 | |
Class A Common Stock | Sponsor Agreement | ||
Sponsor Earnout [Line Items] | ||
Threshold period from business combination in which sponsor shares subject to vesting and forfeiture (in years) | 6 years | |
Class A Common Stock | Sponsor Agreement | First Sponsor Earnout Achievement Date | ||
Sponsor Earnout [Line Items] | ||
Threshold period from business combination in which sponsor shares subject to vesting and forfeiture (in years) | 6 years | |
Volume weighted average price (in dollars per share) | $ 12.50 | |
Threshold trading days | 20 days | |
Threshold consecutive trading days | 30 days | |
Founder shares vested (in percent) | 35% | |
Class A Common Stock | Sponsor Agreement | Second Sponsor Earnout Achievement Date | ||
Sponsor Earnout [Line Items] | ||
Threshold period from business combination in which sponsor shares subject to vesting and forfeiture (in years) | 6 years | |
Volume weighted average price (in dollars per share) | $ 15 | |
Threshold trading days | 20 days | |
Threshold consecutive trading days | 30 days | |
Founder shares vested (in percent) | 25% | |
Sponsor | ||
Sponsor Earnout [Line Items] | ||
Shares issued during the period, value | $ 38.1 | |
Sponsor | Class A Common Stock | Founder Shares | ||
Sponsor Earnout [Line Items] | ||
Vested (in shares) | 2,839,000 | |
Forfeited (in shares) | 4,258,500 | |
Private Placement Warrant | Replay Sponsor LLC The Sponsor | Class A Common Stock | ||
Sponsor Earnout [Line Items] | ||
Number of securities called by warrants or rights (in shares) | 775,000 | |
Private Placement Warrant | Replay Sponsor LLC The Sponsor | IPO | ||
Sponsor Earnout [Line Items] | ||
Class of warrants or rights, issued during period (in shares) | 7,750,000 |
Equity (Detail)
Equity (Detail) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 $ / shares shares | Mar. 31, 2021 shares | Sep. 30, 2021 shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Class of Stock [Line Items] | |||||||
Exchange ratio | 1 | ||||||
Common units outstanding (in shares) | 124,453,301 | 124,453,301 | |||||
Class A Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares issued (in shares) | 67,681,856 | 65,013,569 | 65,013,569 | 67,681,856 | 65,013,569 | ||
Common stock, shares outstanding (in shares) | 63,423,356 | 60,755,069 | 60,755,069 | 63,423,356 | 60,755,069 | ||
Common stock shares outstanding unvested portion (in shares) | 4,258,500 | 4,258,500 | |||||
Stocks delivered | 3,749,057 | 1,373,080 | 3,391,635 | ||||
Stock repurchased and retired during period, shares (in shares) | 0 | 1,788,447 | 2,046,062 | ||||
Common stock, par value (in USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Class B Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares issued (in shares) | 14 | 15 | 15 | 14 | 15 | ||
Common stock, shares outstanding (in shares) | 14 | 15 | 15 | 14 | 15 | ||
Stock issued during period, new issues (in shares) | 14 | ||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Class B Common Stock | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchased and retired during period, shares (in shares) | 1 | ||||||
Capital Unit, Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares issued (in shares) | 67,681,856 | 67,681,856 | |||||
Conversion of stock, shares converted (in shares) | 1,795,197 | 491,509 | |||||
Common units outstanding (in shares) | 187,876,657 | 187,876,657 | |||||
Capital Unit, Class A | Noncontrolling Interest | |||||||
Class of Stock [Line Items] | |||||||
Common units outstanding (in shares) | 63,423,356 | 63,423,356 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) | 12 Months Ended | ||||||||
May 15, 2024 | Aug. 08, 2023 | Jun. 30, 2023 USD ($) transaction | Mar. 31, 2023 USD ($) shares | Mar. 13, 2023 | Feb. 01, 2023 | Dec. 31, 2022 USD ($) | Jan. 31, 2023 USD ($) | Dec. 31, 2021 USD ($) | |
Working Capital Promissory Notes | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Outstanding advance | $ 46,790,000 | $ 0 | |||||||
Working Capital Promissory Notes | BTO Urban Holdings And Libman Family Holdings, LLC | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Outstanding advance | $ 50,000,000 | ||||||||
Interest rate (in percent) | 6.50% | ||||||||
Subsequent Event | Incenter Investments LLC | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Number of transactions | transaction | 2 | ||||||||
Consideration received on transaction | $ 17,500,000 | ||||||||
Cash proceeds received from transaction | 4,800,000 | ||||||||
Notes receivable from sale | $ 12,700,000 | ||||||||
Subsequent Event | American Advisors Group (AAG) | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total consideration transferred | $ 215,400,000 | ||||||||
Subsequent Event | Working Capital Promissory Notes | BTO Urban Holdings And Libman Family Holdings, LLC | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Outstanding advance | $ 60,000,000 | ||||||||
Interest rate (in percent) | 10% | 6.50% | |||||||
Subsequent Event | Working Capital Promissory Notes | BTO Urban Holdings And Libman Family Holdings, LLC | Forecast | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest rate (in percent) | 15% | ||||||||
Subsequent Event | Stock Purchase Agreement | Blackstone Investor and BL Investor | Class A Common Stock | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Numbers of shares purchased by investors | shares | 21,739,132 | ||||||||
Aggregate purchase price of shares purchased by investors | $ 30,000,000 | ||||||||
ANTIC Capital Stock | Subsequent Event | Incenter | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sale of stock, percentage of ownership before transaction | 100% |
Uncategorized Items - _IXDS
Label | Element | Value | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations | $ 626,827,000 | [1],[2] |
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 3 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. (2) Difference between beginning cash for the Successor period and ending cash balance for the Predecessor period resulted from cash expense that were considered to have been incurred "on the line." |