Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 03, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39964 | ||
Entity Registrant Name | Home Point Capital Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 90-1116426 | ||
Entity Address, Address Line One | 2211 Old Earhart Road, Suite 250 | ||
Entity Address, City or Town | Ann Arbor | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 48105 | ||
City Area Code | 888 | ||
Local Phone Number | 616-6866 | ||
Title of 12(b) Security | Common Stock, par value$0.0000000072 per share | ||
Trading Symbol | HMPT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 29.4 | ||
Entity Common Stock, Shares Outstanding | 138,401,090 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001830197 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 243 |
Auditor Name | BDO USA, LLP |
Auditor Location | Philadelphia, Pennsylvania |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 97,248 | $ 170,987 |
Restricted cash | 11,344 | 36,803 |
Cash and cash equivalents and Restricted cash | 108,592 | 207,790 |
Mortgage loans held for sale (at fair value) | 642,993 | 5,107,161 |
Mortgage servicing rights (at fair value) | 1,402,542 | 1,525,103 |
Property and equipment, net | 11,660 | 21,892 |
Accounts receivable, net | 124,691 | 129,092 |
Derivative assets | 25,611 | 84,385 |
Goodwill | 0 | 10,789 |
Government National Mortgage Association loans eligible for repurchase | 85,937 | 65,237 |
Assets held for sale | 0 | 63,664 |
Other assets | 36,166 | 43,228 |
Total assets | 2,438,192 | 7,258,341 |
Liabilities: | ||
Warehouse lines of credit | 496,481 | 4,718,658 |
Term debt and other borrowings, net | 942,083 | 1,226,524 |
Accounts payable and accrued expenses | 64,349 | 138,193 |
Government National Mortgage Association loans eligible for repurchase | 85,937 | 65,237 |
Deferred tax liabilities | 183,860 | 229,752 |
Derivative Liability | 4,110 | 26,736 |
Other liabilities | 57,836 | 76,588 |
Total liabilities | 1,834,656 | 6,481,688 |
Note 13 - Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Preferred stock (250,000,000 authorized shares, none issued and outstanding, $0.0000000072 par value per share) | 0 | 0 |
Common stock (1,000,000,000 authorized shares, 138,398,707 and 139,326,953 shares issued and outstanding; par value $0.0000000072 per share) | 0 | 0 |
Additional paid-in capital | 513,710 | 523,811 |
Retained earnings | 89,826 | 252,842 |
Total shareholders' equity | 603,536 | 776,653 |
Total liabilities and shareholders' equity | $ 2,438,192 | $ 7,258,341 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.0000 | $ 0.0000 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 138,398,707 | 139,326,953 |
Common stock, shares outstanding (in shares) | 138,398,707 | 139,326,953 |
Common stock, par value (in dollars per share) | $ 0.0000 | $ 0.0000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | ||
Gain on loans, net | $ 47,105 | $ 585,762 |
Loan fee income | 46,029 | 150,921 |
Interest income | 91,417 | 136,477 |
Interest expense | (112,281) | (169,390) |
Interest expense, net | (20,864) | (32,913) |
Loan servicing fees | 265,275 | 331,382 |
Change in fair value of mortgage servicing rights | (97,689) | (76,831) |
Other income | 15,791 | 3,195 |
Total revenue, net | 255,647 | 961,516 |
Expenses: | ||
Compensation and benefits | 256,856 | 494,227 |
Loan expense | 21,865 | 63,912 |
Loan servicing expense | 35,382 | 27,373 |
Production technology | 16,153 | 31,866 |
General and administrative | 60,317 | 95,476 |
Depreciation | 10,700 | 10,127 |
Impairment of goodwill | 10,789 | 0 |
Other expenses | 22,675 | 29,638 |
Total expenses | 434,737 | 752,619 |
(Loss) income before income tax | (179,090) | 208,897 |
Income tax benefit (expense) | 41,914 | (57,998) |
(Loss) income from equity method investment | (26,278) | 15,373 |
Net (loss) income | $ (163,454) | $ 166,272 |
Earnings Per Share [Abstract] | ||
Basic (in dollars per share) | $ (1.18) | $ 1.19 |
Diluted (in dollars per share) | $ (1.18) | $ 1.19 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Treasury Stock | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2020 | 138,860,103 | ||||
Beginning balance at Dec. 31, 2020 | $ 927,474 | $ 0 | $ 519,510 | $ 407,964 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Contributed capital | 192 | 192 | |||
Distributions to parent | (295,089) | (295,089) | |||
Dividends | (26,497) | (26,497) | |||
Employee stock purchase (option exercise) (in shares) | 466,850 | ||||
Employee stock purchases (option exercise) | (2,636) | (2,636) | |||
Equity-based compensation | 6,937 | 6,937 | |||
Net income | $ 166,272 | 166,272 | |||
Ending balance (in shares) at Dec. 31, 2021 | 139,326,953 | 139,326,953 | |||
Ending balance at Dec. 31, 2021 | $ 776,653 | $ 0 | 523,811 | 252,842 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock repurchase | (3,774) | $ (3,774) | |||
Retirement of treasury stock (in shares) | 1,179,796 | ||||
Retirement of treasury stock | 0 | (15,338) | 3,774 | 11,564 | |
Dividends | (11,126) | (11,126) | |||
Employee stock purchase (option exercise) (in shares) | 126,772 | ||||
Employee stock purchases (option exercise) | 60 | 60 | |||
Equity-based compensation (restricted stock units vesting) (in shares) | 124,778 | ||||
Equity-based compensation | 5,177 | 5,177 | |||
Net income | $ (163,454) | (163,454) | |||
Ending balance (in shares) at Dec. 31, 2022 | 138,398,707 | 138,398,707 | |||
Ending balance at Dec. 31, 2022 | $ 603,536 | $ 0 | $ 513,710 | $ 0 | $ 89,826 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | ||
Net (loss) income | $ (163,454) | $ 166,272 |
Adjustments to reconcile net (loss) income to cash used in operating activities: | ||
Depreciation | 10,700 | 10,127 |
Amortization of debt issuance costs | 4,009 | 3,271 |
Impairment of goodwill | 10,789 | 0 |
Impairment of equity method investment | 8,795 | 0 |
Gain on loans, net | (47,105) | (585,762) |
Provision for representation and warranty reserve, net of charge offs | 2,028 | 6,497 |
Equity-based compensation expense | 5,177 | 6,937 |
Deferred income tax (benefit) expense | (45,165) | 55,751 |
Loss (income) from equity method investment | 17,483 | (15,373) |
Gain from sale of subsidiary | (2,750) | 0 |
Originations and purchases of mortgage loans held for sale | (28,622,069) | (100,217,789) |
Proceeds from sale and payments of mortgage loans held for sale | 32,276,858 | 97,870,548 |
Loss (gain) on sale of mortgage servicing rights | 82,163 | (37,025) |
Decrease in fair value of mortgage servicing rights | 15,526 | 113,856 |
Decrease in fair value of mortgage loans held for sale | 138,530 | 41,824 |
Decrease in fair value of derivative assets, net | 36,148 | 215,550 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable, net | 20,266 | 51,958 |
Decrease (increase) in other assets | 6,824 | (18,259) |
Decrease in accounts payable and accrued expenses | (78,742) | (29,856) |
(Decrease) increase in other liabilities | (21,508) | 5,325 |
Net cash provided by (used for) operating activities | 3,654,503 | (2,356,148) |
Investing activities: | ||
Purchases of property and equipment | (555) | (10,309) |
Purchases of mortgage servicing rights | (24,738) | (43,056) |
Proceeds from sale of mortgage servicing rights | 757,253 | 261,966 |
Equity method investment | (1,500) | 0 |
Proceeds from sale of equity method investments | 38,886 | 0 |
Proceeds from sale of subsidiary | 2,420 | 0 |
Net cash provided by investing activities | 771,766 | 208,601 |
Financing activities: | ||
Proceeds from warehouse borrowings | 30,503,338 | 104,148,375 |
Payments on warehouse borrowings | (34,725,515) | (102,435,133) |
Proceeds from term debt borrowings | 595,000 | 1,483,400 |
Payments on term debt borrowings | (880,000) | (660,000) |
Proceeds from other borrowings | 70,000 | 111,000 |
Payments on other borrowings | (73,250) | (151,000) |
Payments of debt issuance costs | (200) | (14,168) |
Employee stock purchases (option exercise) | 60 | |
Employee stock purchases (option exercise) | (2,636) | |
Common stock repurchases | (3,774) | 0 |
Contributed capital from parent | 0 | 192 |
Dividends to shareholders | (11,126) | (26,497) |
Distributions to parent | 0 | (295,089) |
Net cash (used for) provided by financing activities | (4,525,467) | 2,158,444 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (99,198) | 10,897 |
Cash, cash equivalents and restricted cash at beginning of period | 207,790 | 196,893 |
Cash, cash equivalents and restricted cash at end of period | 108,592 | 207,790 |
Supplemental disclosure: | ||
Cash paid for interest | 114,211 | 141,819 |
Cash refunded for income taxes | $ (2,774) | $ (41,043) |
Organization and Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | Organization and Operations Nature of Business Home Point Capital Inc., a Delaware corporation (“HPC”, or the “Company”), through its subsidiaries, is a residential mortgage originator and servicer with a business model focused on growing originations by leveraging a network of partner relationships and its servicing operation. The Company’s business operations are organized into the following two segments: (1) Origination and (2) Servicing. Home Point Financial Corporation (“HPF”), a New Jersey corporation and a wholly owned subsidiary of the Company, originates, sells, and services residential real estate mortgage loans throughout the U.S. and owns certain servicing assets. Home Point Corporation Insurance Agency LLC (“HPCIA”), a Michigan limited liability company, is a wholly owned subsidiary of the Company that brokers home owner insurance policies. On December 2, 2022, HPC completed the previously announced sale of its equity interests in Home Point Asset Management LLC (“HPAM”), and its wholly owned subsidiary, Home Point Mortgage Acceptance Corporation (“HPMAC”). Prior to the sale, HPAM was a wholly owned subsidiary of the Company and managed certain servicing assets. HPMAC, an Alabama Corporation, serviced residential real estate mortgage loans. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of HPC and all its wholly owned subsidiaries, including HPF and HPCIA. All intercompany balances and transactions have been eliminated in consolidation. As noted above, in December 2022 HPC completed the sale of HPAM and HPMAC. The results of operations for HPAM and HPMAC through the date of sale are included in the consolidated financial statements. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires HPC to make estimates and assumptions about future events that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable. Examples of reported amounts that rely on significant estimates include mortgage loans held for sale (“MLHS”), mortgage servicing rights (“MSRs”), servicing advances reserve, derivative assets, derivative liabilities, reserves for mortgage repurchases and indemnifications, and deferred tax valuation allowance considerations. Significant estimates are also used in determining the recoverability and fair value of property and equipment and goodwill. Initial Public Offering On February 2, 2021, the Company completed its initial public offering (“IPO”) in which the Company’s stockholders sold 7,250,000 shares of its common stock at a public offering price of $13 per share. In conjunction with the IPO, the Company’s board of directors (the “Board”) also approved a reorganization of the Company through merging Home Point Capital LP (“HPLP”) with and into the Company, with the Company as the surviving entity. Prior to the reorganization in connection with the IPO, HPLP was the direct parent of the Company (the “Parent”). As a secondary offering, there were no proceeds to the Company from the sale of the shares being sold by the selling stockholders and all related expenses for the IPO were recorded in General and administrative expenses. Upon the completion of the IPO, investment entities directly or indirectly managed by Stone Point Capital LLC, which are referred to as the Trident Stockholders, beneficially owned approximately 92% of the voting power of the Company’s common stock. Summary of Significant Accounting Policies Cash and cash equivalents are comprised of cash and other highly liquid investments with a maturity of three months or less. Cash equivalents are stated at cost, which approximates market value. The Company maintains its deposits in financial institutions that are guaranteed by various programs offered by the Federal Deposit Insurance Corporation (“FDIC”). The Company monitors its positions with, and the credit quality of, the financial institutions with which it does business. The Company has not experienced any losses in such accounts and management believes the Company is not exposed to any significant credit risk. Restricted cash is comprised of borrower escrow funds and cash reserves required by the Company’s warehouse lenders. Mortgage loans held for sale are accounted for using the fair value option. Therefore, mortgage loans originated and intended for sale in the secondary market are reflected at fair value. Changes in the fair value are recognized in current period earnings in Gain on loans, net, within the consolidated statements of operations. Refer to “ Note 3 - Mortgage Loans Held for Sale .” Mortgage servicing rights are recognized when loans are sold and the associated servicing rights are retained. The Company maintains one class of MSR asset and has elected the fair value option. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of MSRs include, but are not limited to, discount rates and prepayment speeds. Other assumptions such as delinquencies, and cost to service are also considered. The assumptions used in the valuation model are validated on a periodic basis. The Company obtains valuations from an independent third party on a quarterly basis and records an adjustment based on this third-party valuation. Changes in the fair value are recognized in Change in fair value of mortgage servicing rights, net on the Company's consolidated statements of operations. Purchased MSRs are recorded at the fair value at the date of purchase. Property and equipment, net include furniture, equipment, leasehold improvements, and work-in-process, which are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets for financial reporting, which range from three Servicing advances represent advances paid by the Company on behalf of customers to fund delinquent balances for principal, interest, property taxes, insurance premiums, and other out-of-pocket costs. Advances are made in accordance with the servicing agreements and are recoverable upon collection of future borrower payments or foreclosure of the underlying loans. The Company is exposed to losses only to the extent that the respective servicing guidelines are not followed or in the event there is a shortfall in liquidation proceeds and records a reserve against the advances when it is probable that the servicing advance will be uncollectible. The adequacy of the reserve is evaluated so that the reserve represents management’s estimate of current expected losses and is maintained at a level that management considers adequate based upon continuing assessments of collectability, current trends, and historical loss experience. The reserve for uncollectible servicing advances is recorded in Accounts receivable, net in the consolidated balance sheets and the change in the reserve is recorded in Loan servicing expense in the consolidated statements of operations. In certain circumstances, the Company may be required to remit funds on a non-recoverable basis, which are expensed as incurred. Refer to “ Note 9 – Accounts Receivable, net .” Derivative financial instruments are recorded at fair value as either Derivative assets or in Derivative liabilities on the consolidated balance sheets on a gross basis. The Company has accounted for its derivative instruments as non-designated hedge instruments and uses the derivative instruments to economically manage risk. The Company’s derivative instruments include, but are not limited to, forward mortgage-backed securities (“MBS”) sales commitments, interest rate lock commitments (“IRLCs”), and other derivative instruments used to economically hedge fluctuations in MSRs’ fair value. The impact of the Company’s Derivative assets and liabilities is reported in Change in fair value of derivative assets, net on the consolidated statements of cash flows. The Company records derivative assets and liabilities and related cash margin on a gross basis, even when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty. Refer to “ Note 5 - Derivative Financial Instruments .” Forward mortgage-backed securities sale commitments that have not settled are considered derivative financial instruments and are recognized at fair value. These forward commitments will be fulfilled with loans not yet sold or securitized, new originations, and purchases. The forward commitments allow the Company to reduce the risk related to market price volatility. These derivatives are not designated as hedging instruments. Gain or loss on derivatives is recorded in Gain on loans, net in the consolidated statements of operations. Interest rate lock commitments represent an agreement to extend credit to a mortgage loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to funding. The loan commitment binds the Company (subject to the loan approval process) to fund the loan 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 the commitment through the loan funding date or expiration date. The 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. Change in fair value of IRLC derivatives is recorded in Gain on loans, net in the consolidated statements of operations. Forward MBS sale commitments or whole loan sale commitments and options on forward contracts are used to manage the interest rate and price risk. These derivatives are not designated as hedging instruments. Mortgage servicing rights hedges are accounted for at fair value. MSRs are subject to substantial interest rate risk as the mortgage notes underlying the servicing rights permit the borrowers to prepay the loans. Therefore, the value of MSRs generally tend to diminish in periods of declining interest rates, as prepayments increase and increase in periods of rising interest rates, as prepayments decrease. Although the level of interest rates is a key driver of prepayment activity, there are other factors that influence prepayments, including home prices, underwriting standards, and product characteristics. The Company manages the impact that the volatility associated with changes in fair value of its MSRs has on its earnings with a variety of derivative instruments. The amount and composition of derivatives used to economically hedge the value of MSRs will depend on the Company's exposure to loss of value on the MSRs, the expected cost of the derivatives, expected liquidity needs, and the expected increase to earnings generated by the origination of new loans resulting from the decline in interest rates. This serves as a business hedge of the MSRs, providing a benefit when increased borrower refinancing activity results in higher production volumes, which would partially offset declines in the value of the MSRs thereby reducing the need to use derivatives. The benefit of this business hedge depends on the decline in interest rates required to create an incentive for borrowers to refinance their mortgage loans and lower their interest rates; however, this benefit may not be realized under certain circumstances regardless of the change in interest rates. The change in fair value of MSR hedges is recorded in Change in fair value of mortgage servicing rights in the consolidated statements of operations. Goodwill represents the excess of the aggregate fair value of the consideration transferred in a business combination over the fair value of the assets acquired net of liabilities assumed. Goodwill is not amortized but rather subject to an annual impairment test at the reporting unit level. Management performs its annual goodwill impairment test on October 1, or more frequently if events or changes in circumstances indicate that the goodwill may be impaired. The Company performed an interim impairment test during the third quarter ended September 30, 2022, which resulted in a write off of the Goodwill balance. For additional information refer to Note 6 - Goodwill . GNMA loans eligible for repurchase are certain loans transferred to GNMA and included in GNMA MBS for which the Company has the right, but not the obligation, to repurchase the loan from the MBS, including loans delinquent more than 90 days. Once the Company has the unilateral right to repurchase the delinquent loan, the Company has effectively regained control over the loan and must re-recognize the loan on the consolidated balance sheets and establish a corresponding finance liability regardless of the Company’s intention to repurchase the loan. GNMA loans eligible for repurchase are presented at their outstanding unpaid principal balance. Equity method investments are business entities, which the Company does not have control of, but has the ability to exercise significant influence over operating and financial policies and are accounted for using the equity method. The Company evaluates its equity method investment for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the carrying value of the investment. If a loss in value has occurred that is deemed to be other-than-temporary, an impairment loss is recorded. The Company recognizes investments in equity method investment initially at cost and are adjusted for the Company’s share of earnings or losses, contributions or distributions. The Company held an equity method investment in Longbridge Financial, LLC (“Longbridge”), which was sold on October 3, 2022. For additional information refer to Note 21 - Shareholders’ Equity and Equity Method Investment . Representation and warranty reserves are maintained to account for expected losses related to loans the Company may be required to repurchase or the indemnity payments the Company may have to make to purchasers . The Company originates and sells residential mortgage loans in the secondary market. When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan, such as the ownership of the loan, the validity of the lien securing the loan, the nature and extent of underwriting standards applied, and the types of documentation being provided. These representations and warranties are generally enforceable over the life of the loan. If a defect in the origination process is identified, the Company may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. If there are no such defects, the Company has no liability to the purchaser for losses it may incur on such loans. The representation and warranty reserve reflects management's best estimate of probable lifetime loss based on borrower performance, repurchase demand behavior, and historical loan defect experience. The reserve considers both the estimate of expected losses on loans sold during the current accounting period as well as adjustments to the Company's previous estimate of expected losses on loans sold. Management monitors the adequacy of the overall reserve and adjusts the level of reserve, as necessary, after consideration of other qualitative factors. At the time a loan is sold, the representation and warranty reserve is recorded as a decrease in Gain on loans, net, on the consolidated statements of operations and recorded in Other liabilities on the Company's consolidated balance sheets. Changes to the reserve are recorded as an increase or decrease to Gain on loans, net, on the consolidated statements of operations. 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 the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Gains and losses stemming from transfers reported as sales, if any, are included in Gain on loans, net within the Company’s consolidated statements of operations. In instances where a transfer of financial assets does not qualify for sale accounting, the assets remain on the Company’s consolidated balance sheets and continue to be reported and accounted for as if the transfer had not occurred. Gain on loans, net includes the realized and unrealized gains and losses on mortgage loans, as well as the changes in fair value of all loan-related derivatives, including but not limited to, forward MBS sales commitments, IRLCs, freestanding loan-related derivative instruments and the representation and warranty reserve. Loan fee income consists of fee income earned on all loan originations, including amounts earned related to application and underwriting fees. Fees associated with the origination and acquisition of mortgage loans are recognized when earned, which is on the date the loan is originated or acquired. Interest income is recognized on loans held for sale for the period from loan funding to sale, which is typically less than 30 days. Loans are placed on non-accrual status and the related accrued interests is reserved when any portion of the principal or interest is 90 days past due or earlier if factors indicate that the ultimate collectability of the principal or interest is not probable. Interest received for 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. Prior to entering into a subservicing agreement with ServiceMac, the Company had a fiduciary responsibility for servicing accounts related to customer escrow funds and custodial funds. The Company receives certain benefits from these deposits, as allowable under federal and state laws and regulations, or as agreed to under certain subservicing agreements. Interest income is recorded as earned and included in the consolidated statements of operations within Interest income. Loan servicing fees involve the servicing of residential mortgage loans on behalf of an investor. Total Loan servicing fees include servicing and other ancillary servicing revenue 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 of 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 (reduction of principal balance). Loan servicing fees are receivable only out of interest collected from mortgagors and are recorded as income when earned, which is generally upon collection. Late charges and other miscellaneous fees collected from mortgagors are also recorded as income when collected. Other income consists of income that is dissimilar in nature to revenues the Company earns from its ongoing central operations. Equity-based compensation consists of stock options, restricted stock units, and performance stock units. Expense is recognized at the fair value of equity awards on the date of grant within Compensation and benefits expense in the Company’s consolidated statements of operations on a straight-line basis over the requisite service period. Estimates of future forfeitures are made at the grant date and revised, if necessary, in later periods if subsequent information indicates actual forfeitures will differ from those estimates. Refer to “ Note 19 - Equity-based Compensation ”. Debt issuance costs are recorded for the Company’s warehouse lines of credit and other debt. Debt issuance costs are amortized on a straight-line basis, which approximates the effective interest method, during the revolving period of the warehouse facilities or during the total term of the term debt agreement. Amortization of debt issuance costs is recorded in the consolidated statements of operations within Interest expense. Income taxes are accounted for under the asset and liability method. Deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences, using the tax rates expected to be in effect when the temporary differences reverse. Temporary differences are the difference between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognized tax benefits from uncertain income tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authority based on the technical merits of the position. An uncertain income tax position that meets the “more likely than not” recognition threshold is then measured to determine the amount of the benefit to recognize. Recently Adopted Accounting Standards ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxe s, eliminates particular exceptions related to the method for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. This amendment is effective for annual periods beginning after December 15, 2021. The Company adopted ASU 2019-12 as of January 1, 2022. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) , Facilitation of the Effects of Reference Rate Reform on Financial Reporting, subject to meeting certain criteria, provides optional expedients and exceptions related to applying U.S. GAAP to certain contract modifications and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another rate that is expected to be discontinued. This guidance was effective upon issuance and allows application to contract changes as early as January 1, 2020. Subsequently, in 2021, the FASB issued ASU 2021-01, Reference Rate Reform , to further clarify and expand certain aspects of Topic 848. The Company adopted ASU 2020-04 and ASU 2021-01 in September 2022. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Issued but Not Yet Adopted |
Mortgage Loans Held for Sale
Mortgage Loans Held for Sale | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale The Company sells its originated mortgage loans into the secondary market. The Company may retain the right to service some of these loans upon sale through ownership of servicing rights. The following presents MLHS at fair value, by type: December 31, 2022 Unpaid Principal Fair Value Adjustment Total Fair Value (dollars in thousands) Conventional (a) $ 425,160 $ (31,639) $ 393,521 Government (b) 254,800 (5,664) 249,136 Reverse (c) 355 (19) 336 Total $ 680,315 $ (37,322) $ 642,993 December 31, 2021 Unpaid Principal Fair Value Adjustment Total Fair Value (dollars in thousands) Conventional (a) $ 4,206,099 $ 79,389 $ 4,285,488 Government (b) 799,579 21,902 821,481 Reverse (c) 275 (83) 192 Total $ 5,005,953 $ 101,208 $ 5,107,161 (a) Conventional includes mortgage loans meeting the eligibility requirements to be sold to FNMA or FHLMC. (b) Government includes mortgage loans meeting the eligibility requirements to be sold to GNMA (including Federal Housing Administration, Department of Veterans Affairs and United States Department of Agricultural mortgage loans). (c) Reverse mortgages presented in MLHS on the consolidated balance sheets as a result of a repurchase MLHS on nonaccrual status had $21.8 million and $26.1 million of unpaid principal balances and $16.7 million and $21.6 million estimated fair value as of December 31, 2022 and 2021, respectively. The Company had $0.6 billion in unpaid principal balance pledged to secure its mortgage warehouse line of credit as of December 31, 2022. The following presents a reconciliation of the changes in MLHS to the amounts presented on the consolidated statements of cash flows: Years Ended December 31, 2022 2021 (dollars in thousands) Fair value at beginning of period $ 5,107,161 $ 3,301,694 Mortgage loans originated and purchased (a) 28,622,069 100,217,789 Proceeds from sales and payments received (a) (32,276,858) (97,870,548) Change in fair value (138,530) (41,824) Loss on sale (a) (670,849) (499,950) Fair value at end of period $ 642,993 $ 5,107,161 (a) This line as presented on the consolidated statements of cash flows excludes originated mortgage servicing rights and MSR hedging. The following presents principal categories of Accounts receivable, net: December 31, 2022 2021 (dollars in thousands) Servicing receivable-general $ 14,943 $ 359 Pair off receivable 619 3,738 Servicing sale receivable 29,503 14,364 Servicing advance receivable 77,257 71,884 Servicing advance reserve (3,355) (4,207) Agency receivable 595 20,184 Income tax receivable 1,902 11,181 Warehouse receivable — 1,934 Interest on servicing deposits 302 464 Other 2,925 9,191 Total $ 124,691 $ 129,092 As part of managing the Company’s servicing advances, servicing advance reserve is recognized with management’s estimate of current expected losses and maintained at a level that management considers adequate based upon continuing assessments of collectability, historical loss experience, current trends, and reasonable and supportable forecasts. The following presents changes to the servicing advance reserve: Years Ended December 31, 2022 2021 (dollars in thousands) Servicing advance reserve at beginning of period $ (4,207) $ (8,380) Additions (2,620) (1,975) Charge-offs 3,472 6,148 Servicing advance reserve at end of period $ (3,355) $ (4,207) |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. MSRs give the Company the contractual right to receive service fees and other remuneration in exchange for performing loan servicing functions on behalf of investors in mortgage loans and securities. Upon sale of a mortgage loan for which the Company retains the underlying servicing, an MSR asset is capitalized, which represents the current fair value of the future net cash flows that are expected to be realized for performing servicing activities. The following presents an analysis of the changes in capitalized MSRs: Years Ended December 31, 2022 2021 (dollars in thousands) Balance at beginning of period $ 1,525,103 $ 748,457 MSRs originated 475,469 1,052,012 MSRs purchased 24,738 43,056 MSRs sold (849,729) (238,265) Changes in valuation model inputs 358,782 227,401 Change due to cash payoffs and principal amortization (131,821) (307,558) Balance at end of period $ 1,402,542 $ 1,525,103 The following presents the Company’s total capitalized mortgage servicing portfolio (based on the unpaid principal balance (“UPB”) of the underlying mortgage loans): December 31, 2022 2021 (dollars in thousands) Ginnie Mae $ 4,357,853 $ 5,602,582 Fannie Mae 47,198,689 70,174,987 Freddie Mac 37,082,471 52,547,588 Other 29,620 34,417 Total $ 88,668,633 $ 128,359,574 The following presents the key weighted average assumptions used in determining the fair value of the Company’s MSRs: December 31, 2022 2021 Discount rate 11.23 % 8.68 % Weighted average prepayment speeds 5.44 % 8.30 % The key assumptions used to estimate the fair value of the MSRs are discount rate and the Conditional Prepayment Rate (“CPR” or “prepayment speeds”). An increase in prepayment speeds generally has an adverse effect on the value of MSRs as the underlying loans prepay faster. In a declining interest rate environment, the fair value of MSRs generally decreases as prepayments increase. A decrease in prepayment speeds generally has a positive effect on the value of the MSRs as the underlying loans prepay less frequently. In a rising interest rate environment, the fair value of MSRs generally increases as prepayments decrease. Increases in the discount rate result in a lower MSR value and decreases in the discount rate result in a higher MSR value. MSR uncertainties are hypothetical and do not always have a direct correlation with each assumption. Changes in one assumption may result in changes to another assumption, which might magnify or counteract the uncertainties. The following presents the impact on the fair value of the Company’s MSR portfolio when applying the following hypothetical data points: Discount Rate Prepayment Speeds 100 BPS 200 BPS 10% Adverse 20% Adverse (dollars in thousands) December 31, 2022 $ (66,658) $ (127,263) $ (36,353) $ (70,814) December 31, 2021 $ (66,885) $ (128,172) $ (56,278) $ (108,621) The following presents information related to loans serviced: Years Ended December 31, 2022 2021 (dollars in thousands) Total unpaid principal balance $ 89,280,085 $ 133,889,085 Loans 30-89 days delinquent 824,348 656,012 Loans delinquent 90 or more days or in foreclosure 555,293 777,650 The following presents components of Loan servicing fees as reported in the Company’s consolidated statements of operations: Years Ended December 31, 2022 2021 (dollars in thousands) Contractual servicing fees $ 266,050 $ 312,181 Late fees 2,394 5,070 Other (3,169) 14,131 Total $ 265,275 $ 331,382 The Company held for its customers $5.1 million and $19.9 million of escrow funds recorded in Other liabilities in the consolidated balance sheets as of December 31, 2022 and 2021, respectively. The Company reported $82.2 million loss and a $37.0 million gain on MSR sales in the Change in fair value of mortgage servicing rights in the consolidated statement of operations for the year ended December 31, 2022 and 2021, respectively. The Company reclassified $37.0 million gain on MSR sales from Other income to the Change in fair value of mortgage servicing rights on the consolidated statement of operations for the year ended December 31, 2021. The following presents the components of Change in fair value of MSRs: Years Ended December 31, 2022 2021 (dollars in thousands) Realization of cash flows $ (131,821) $ (307,558) Valuation inputs and assumptions 358,782 227,401 Economic hedging results (242,487) (33,699) (Loss) gain on MSR sales (82,163) 37,025 Change in fair value of MSRs $ (97,689) $ (76,831) |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The following presents the outstanding notional amounts and fair values of derivative instruments not designated as hedging instruments: December 31, 2022 Notional Derivative Derivative (dollars in thousands) Forward sale contracts $ 819,900 $ 6,107 $ 1,200 Interest rate lock commitments 598,970 2,231 2,504 Forward purchase contracts 61,300 — 400 Treasury futures purchase contracts 897,500 — — Margin 17,273 6 Total $ 25,611 $ 4,110 December 31, 2021 Notional Value Derivative Asset Derivative (dollars in thousands) Forward sale contracts $ 7,819,802 $ 6,969 $ 8,242 Interest rate lock commitments 6,068,763 29,887 2,843 Forward purchase contracts 1,521,000 3,031 281 Interest rate swap futures contracts 1,540,000 111 5,662 Treasury futures purchase contracts 4,720,000 — — Margin 44,387 9,708 Total $ 84,385 $ 26,736 The following presents the recorded gain/(loss) on derivative financial instruments: Years Ended December 31, 2022 2021 (dollars in thousands) Forward sale contracts $ 5,956 $ 58,530 Interest rate lock commitments (26,880) (235,988) Forward purchase contracts (2,926) (1,669) Interest rate swap and Treasury futures purchase contracts (196,453) (20,632) Counterparty agreements for forward commitments contain master netting agreements. The master netting agreements contain a legal right to offset amounts due to and from the same counterparty. The Company incurred no credit losses due to nonperformance of any of its counterparties for the years ended December 31, 2022 and 2021. The following presents a summary of derivative assets and liabilities and related netting amounts: December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position (1) Gross Amount of Assets (Liabilities) Recognized Financial Instruments Cash Collateral Net Amount (dollars in thousands) Derivatives subject to master netting agreements: Assets: Forward sale contracts $ 6,107 $ (1,062) $ (3,790) $ 1,255 Liabilities: Forward sale contracts (1,200) 1,062 138 — Forward purchase contracts (400) — 400 — Derivatives not subject to master netting agreements: Assets: Interest rate lock commitments 2,231 — — 2,231 Liabilities: Interest rate lock commitments (2,504) — — (2,504) Total derivatives Assets $ 8,338 $ (1,062) $ (3,790) $ 3,486 Liabilities $ (4,104) $ 1,062 $ 538 $ (2,504) December 31, 2021 Gross Amounts Not Offset in the Statement of Financial Position (1) Gross Amount of Assets (Liabilities) Recognized Financial Instruments Cash Collateral Net Amount (dollars in thousands) Derivatives subject to master netting agreements: Assets: Forward sales contracts $ 6,969 $ (4,886) $ (1,272) $ 811 Forward purchase contracts 3,031 (258) (2,627) 146 Interest rate swap futures contracts 111 (111) — — Liabilities: Forward sale contracts (8,242) 4,886 1,252 (2,104) Forward purchase contracts (281) 258 — (23) Interest rate swap futures contracts (5,662) 111 5,551 — Derivatives not subject to master netting agreements: Assets: Interest rate lock commitments 29,887 — — 29,887 Liabilities: Interest rate lock commitments (2,843) — — (2,843) Total derivatives Assets $ 39,998 $ (5,255) $ (3,899) $ 30,844 Liabilities $ (17,028) $ 5,255 $ 6,803 $ (4,970) (1) Amounts disclosed for collateral received from or posted to the same counterparty includes cash up to and not exceeding the net amount of the derivative asset or liability presented in the balance sheet. The fair value of the total collateral received from or posted to the same counterparty may exceed the amounts presented. The amounts of collateral received from or posted to counterparty are presented as margin and included as a component of either Derivative assets or Other liabilities in the Balance Sheet. For information on the determination of fair value, refer to Note 16 - Fair Value Measurements . |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company performs its annual goodwill impairment analysis as of October 1 or more frequently if events and circumstances indicate that goodwill may be impaired. The Company compares the fair value of each reporting unit with its carrying amount, including goodwill. If the quantitative assessment indicates that the reporting unit’s carrying amount exceeds its fair value, the Company recognizes an impairment charge up to this amount but not to exceed the total carrying value of the reporting unit’s goodwill. The Company performed an interim impairment test during the third quarter ended September 30, 2022, due to the impact of rising interest rates on the mortgage industry and the Company’s recent stock performance. The Company used the market-based valuation approach to determine fair value of its reporting units and compare against the carrying value of the reporting units, and the fair value was measured using inputs classified as Level 3 in the fair value hierarchy. Based upon the results of this evaluation, the Company recorded $10.8 million goodwill impairment charges in Corporate Impairment of goodwill, driven predominantly by a significant decline in our market capitalization. The Company wrote off the $7.0 million and $3.8 million goodwill asset for the Origination and Servicing segments, respectively, and has no remaining goodwill balance as of December 31, 2022. |
Other Assets And Other Liabilit
Other Assets And Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets And Other Liabilities | Other Assets And Other Liabilities The following presents the principal categories of Other assets: December 31, 2022 2021 (dollars in thousands) Prepaid expenses and other $ 15,215 $ 23,418 Right of use lease asset 8,269 12,039 Foreclosure and real estate owned 12,682 7,771 Total $ 36,166 $ 43,228 The Company reclassified $14.4 million Servicing sale receivable from Other assets to Accounts receivable, net on the consolidated balance sheet as of December 31, 2021, to conform to the current period presentation. The following presents the principal categories of Other liabilities: December 31, 2022 2021 (dollars in thousands) Escrow liability $ 5,088 $ 19,920 Repurchase reserves 26,605 24,577 Right of use lease liabilities, net 10,600 15,562 Unclaimed property 14,811 15,641 Other 732 888 Total $ 57,836 $ 76,588 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The following presents the principal categories of Property and equipment, net: December 31, 2022 2021 (dollars in thousands) Computer and telephone $ 18,569 $ 31,187 Office furniture and equipment 2,281 3,027 Leasehold improvements 5,464 5,537 Work-in-process for internal use software 1,772 421 Gross property and equipment 28,086 40,172 Less accumulated depreciation (16,426) (18,280) Total $ 11,660 $ 21,892 Depreciation expense of $10.7 million and $10.1 million was recognized within Depreciation and amortization expense in the consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Mortgage Loans Held for Sale The Company sells its originated mortgage loans into the secondary market. The Company may retain the right to service some of these loans upon sale through ownership of servicing rights. The following presents MLHS at fair value, by type: December 31, 2022 Unpaid Principal Fair Value Adjustment Total Fair Value (dollars in thousands) Conventional (a) $ 425,160 $ (31,639) $ 393,521 Government (b) 254,800 (5,664) 249,136 Reverse (c) 355 (19) 336 Total $ 680,315 $ (37,322) $ 642,993 December 31, 2021 Unpaid Principal Fair Value Adjustment Total Fair Value (dollars in thousands) Conventional (a) $ 4,206,099 $ 79,389 $ 4,285,488 Government (b) 799,579 21,902 821,481 Reverse (c) 275 (83) 192 Total $ 5,005,953 $ 101,208 $ 5,107,161 (a) Conventional includes mortgage loans meeting the eligibility requirements to be sold to FNMA or FHLMC. (b) Government includes mortgage loans meeting the eligibility requirements to be sold to GNMA (including Federal Housing Administration, Department of Veterans Affairs and United States Department of Agricultural mortgage loans). (c) Reverse mortgages presented in MLHS on the consolidated balance sheets as a result of a repurchase MLHS on nonaccrual status had $21.8 million and $26.1 million of unpaid principal balances and $16.7 million and $21.6 million estimated fair value as of December 31, 2022 and 2021, respectively. The Company had $0.6 billion in unpaid principal balance pledged to secure its mortgage warehouse line of credit as of December 31, 2022. The following presents a reconciliation of the changes in MLHS to the amounts presented on the consolidated statements of cash flows: Years Ended December 31, 2022 2021 (dollars in thousands) Fair value at beginning of period $ 5,107,161 $ 3,301,694 Mortgage loans originated and purchased (a) 28,622,069 100,217,789 Proceeds from sales and payments received (a) (32,276,858) (97,870,548) Change in fair value (138,530) (41,824) Loss on sale (a) (670,849) (499,950) Fair value at end of period $ 642,993 $ 5,107,161 (a) This line as presented on the consolidated statements of cash flows excludes originated mortgage servicing rights and MSR hedging. The following presents principal categories of Accounts receivable, net: December 31, 2022 2021 (dollars in thousands) Servicing receivable-general $ 14,943 $ 359 Pair off receivable 619 3,738 Servicing sale receivable 29,503 14,364 Servicing advance receivable 77,257 71,884 Servicing advance reserve (3,355) (4,207) Agency receivable 595 20,184 Income tax receivable 1,902 11,181 Warehouse receivable — 1,934 Interest on servicing deposits 302 464 Other 2,925 9,191 Total $ 124,691 $ 129,092 As part of managing the Company’s servicing advances, servicing advance reserve is recognized with management’s estimate of current expected losses and maintained at a level that management considers adequate based upon continuing assessments of collectability, historical loss experience, current trends, and reasonable and supportable forecasts. The following presents changes to the servicing advance reserve: Years Ended December 31, 2022 2021 (dollars in thousands) Servicing advance reserve at beginning of period $ (4,207) $ (8,380) Additions (2,620) (1,975) Charge-offs 3,472 6,148 Servicing advance reserve at end of period $ (3,355) $ (4,207) |
Warehouse Lines of Credit
Warehouse Lines of Credit | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Warehouse Lines of Credit | Warehouse Lines of Credit The Company maintains mortgage warehouse lines of credit arrangements with various financial institutions, primarily to fund the origination of mortgage loans. The Company held mortgage funding arrangements with eight and eleven separate financial institutions with a total maximum borrowing capacity of $2.8 billion and $7.5 billion as of December 31, 2022 and 2021, respectively. These funding arrangements are primarily uncommitted. The Company had $2.3 billion and $2.8 billion of unused capacity under its warehouse lines of credit as of December 31, 2022 and 2021, respectively. The following presents the amounts outstanding and maturity dates under the Company’s various mortgage funding arrangements: Maturity Date December 31, 2022 (dollars in thousands) $450 million Warehouse Facility (a) August 2023 $ 149,513 $200 million Warehouse Facility (b) September 2023 41,309 $200 million Warehouse Facility (c) September 2023 32,011 $200 million Warehouse Facility (d) March 2023 45,284 $50 million Warehouse Facility (e) March 2023 41,928 $1,200 million Warehouse Facility (f) May 2024 113,136 $88.5 million Warehouse Facility Evergreen 8,050 $400 million Warehouse Facility (g) Evergreen 65,250 Gestation Warehouse Facility Evergreen — Total $ 496,481 (a) Subsequent to December 31, 2021, the maturity of this Warehouse Facility has been extended from September 2022 to August 2023. (b) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $200 million. The maturity of this Warehouse Facility has been extended from September 2022 to September 2023. (c) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $200 million. The maturity of this Warehouse Facility has been extended from September 2022 to September 2023. (d) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $200 million. The maturity of this Warehouse Facility has been extended from March 2022 to March 2023. In February 2023, the maturity was extended to April 2023. Refer to Note 27 – Subsequent Events (e) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $250 million as of June 30, 2022 and $50 million as of September 30, 2022. (f) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $1,500 million to $1,200 million. The maturity of this Warehouse Facility has been extended from May 2023 to May 2024. (g) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $550 million to $400 million. Maturity Date(h) Balance at December 31, 2021 (dollars in thousands) $1,200 million Warehouse Facility (i) February 2022 $ 604,421 $500 million Warehouse Facility (j) March 2022 335,509 $500 million Warehouse Facility March 2022 381,087 $1,000 million Warehouse Facility (k) August 2022 716,802 $450 million Warehouse Facility September 2022 277,060 $500 million Warehouse Facility September 2022 339,521 $500 million Warehouse Facility September 2022 375,381 $500 million Warehouse Facility March 2023 309,898 $1,500 million Warehouse Facility May 2023 731,132 $88.5 million Warehouse Facility Evergreen 11,409 $550 million Warehouse Facility Evergreen 363,959 Gestation Warehouse Facility Evergreen 179,360 Early Funding (l) 93,119 Total $ 4,718,658 (h) Maturity Dates in this table are as of December 31, 2021. The Maturity Dates as of December 31, 2022 are reflected in the table above. (i) The warehouse facility was terminated on October 7, 2022. (j) The warehouse facility was terminated on September 23, 2022. (k) The warehouse facility expired in August 2022. (l) In addition to warehouse facilities, the Company is an approved lender for early funding facilities with Fannie Mae through its As Soon As Pooled (“ASAP”) program and Freddie Mac through its Early Funding (“EF”) program. From time to time, the Company enters into agreements to deliver certified pools of mortgage loans and receive funding in exchange for such pools. All mortgage loans delivered under these programs must adhere to a set of eligibility criteria. Early funding programs with Fannie Mae and Freddie Mac do not have stated expiration dates or maximum capacities. The Company’s warehouse facilities’ variable interest rates are calculated using an index rate generally tied to a Secured Overnight Financing Rate (“SOFR”); plus applicable interest rate margins, with varying interest rate floors. The weighted average interest rate for the Company’s warehouse facilities was 2.91% and 2.36% for the years ended December 31, 2022 and 2021, respectively. The Company’s borrowings are secured by MLHS at fair value. The Company’s warehouse facilities require the maintenance of certain financial covenants relating to net worth, profitability, liquidity, and ratio of indebtedness to net worth among others. The Company’s warehouse lines that contain profitability covenants were amended to allow for a net loss for the three months ended December 31, 2022. The Company was in compliance with all warehouse facility covenants as of December 31, 2022. The following presents the Company’s term debt and other borrowings, net: December 31, Maturity Date Collateral 2022 2021 (dollars in thousands) $1.0 billion MSR Facility May 2025 MSRs $ 450,000 $ 685,000 $550 million Senior Notes (a) February 2026 Unsecured 500,000 550,000 $85 million Servicing Advance Facility (b), (c) May 2023 Servicing advances — 3,250 $35 million Operating Line of Credit (c) May 2023 Mortgage loans 1,000 1,000 Gross 951,000 1,239,250 Debt issuance costs (8,917) (12,726) Total $ 942,083 $ 1,226,524 (a) The Company repurchased and retired $50 million of outstanding Senior Notes during the year ended December 31, 2022. (b) Effective June 9, 2022, the capacity of the Servicing Advance Facility was reduced from $90 million to $85 million. (c) Subsequent to December 31, 2021, the maturity was extended from May 2022 to May 2023. The Company maintains a $1.0 billion MSR financing facility (the “MSR Facility”). On April 29, 2022, the Company entered into an amendment to the MSR facility that, among other things, reduced the committed capacity from $650.0 million to $500 million. The amendment also replaced the LIBOR based interest rate with SOFR, plus the applicable interest rate margin, with advance rates generally ranging from 62.5% to 72.5% of the fair value of the underlying MSRs. The MSR Facility is collateralized by the Company’s FNMA, FHLMC, and GNMA MSRs. The MSR Facility has a three-year revolving period ending on May 4, 2024 followed by a one-year period during which the balance drawn must be repaid and no further amounts may be drawn down, which ends on May 20, 2025. The MSR Facility requires the maintenance of certain financial covenants relating to net worth, liquidity, and indebtedness of the Company. The Company was in compliance with all covenants under the MSR Facility as of December 31, 2022. In January 2021, the Company issued $550.0 million aggregate principal amount of its 5.0% Senior Notes due 2026 (the “Senior Notes”) in a private placement transaction. The Senior Notes are guaranteed on a senior unsecured basis by each of the Company’s wholly owned subsidiaries existing on the date of issuance, other than HPAM and HPMAC. The Senior Notes bear interest at a rate of 5.0% per annum, payable semi-annually in arrears. The Senior Notes will mature on February 1, 2026. The company repurchased and retired $50.0 million of outstanding Senior Notes during the second quarter of 2022. The Indenture governing the Senior Notes contains covenants and restrictions that, among other things and subject to certain exceptions, limit the ability of the Company and its restricted subsidiaries to (i) incur additional debt or issue certain preferred shares; (ii) incur liens; (iii) make certain distributions, investments, and other restricted payments; (iv) engage in certain transactions with affiliates; and (v) merge or consolidate or sell, transfer, lease or otherwise dispose of all or substantially all of their assets. The Senior Notes had a carrying value of $500 million and $550 million and an estimated fair value of $343 million and $506 million as of December 31, 2022 and 2021, respectively. The valuation of the Senior Notes was determined based on observable trading information considered Level 2 inputs under the fair value hierarchy. For the Company’s other long-term secured borrowings not recorded at fair value, the carrying value approximated fair value due to the variable interest rate on the borrowings and the repricing of collateral. The Company has a $85.0 million servicing advance facility, which is collateralized by all of the Company’s servicing advances. The facility carries an interest rate of Term SOFR plus a margin and an advance rate ranging from 85.0-95.0%. The servicing advance facility requires the maintenance of certain financial covenants relating to net worth, liquidity, and indebtedness of the Company. The Company was in compliance with all covenants under the servicing advance facility as of December 31, 2022. The Company also has a $35.0 million operating line, with an interest rate based on the Prime Rate. The Company had total available capacity of $391.8 million and $67.4 million for its MSR Facility and servicing advance facility, respectively as of December 31, 2022. The Company has no available capacity for its operating line of credit as of December 31, 2022, The following presents the Company’s debt maturity schedule for the operating line of credit, MSR Facility and the Senior Notes: (dollars in thousands) 2023 $ 1,000 2024 300,000 2025 150,000 2026 500,000 2027 and thereafter — Total $ 951,000 |
Term Debt and Other Borrowings,
Term Debt and Other Borrowings, net | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Term Debt and Other Borrowings, net | Warehouse Lines of Credit The Company maintains mortgage warehouse lines of credit arrangements with various financial institutions, primarily to fund the origination of mortgage loans. The Company held mortgage funding arrangements with eight and eleven separate financial institutions with a total maximum borrowing capacity of $2.8 billion and $7.5 billion as of December 31, 2022 and 2021, respectively. These funding arrangements are primarily uncommitted. The Company had $2.3 billion and $2.8 billion of unused capacity under its warehouse lines of credit as of December 31, 2022 and 2021, respectively. The following presents the amounts outstanding and maturity dates under the Company’s various mortgage funding arrangements: Maturity Date December 31, 2022 (dollars in thousands) $450 million Warehouse Facility (a) August 2023 $ 149,513 $200 million Warehouse Facility (b) September 2023 41,309 $200 million Warehouse Facility (c) September 2023 32,011 $200 million Warehouse Facility (d) March 2023 45,284 $50 million Warehouse Facility (e) March 2023 41,928 $1,200 million Warehouse Facility (f) May 2024 113,136 $88.5 million Warehouse Facility Evergreen 8,050 $400 million Warehouse Facility (g) Evergreen 65,250 Gestation Warehouse Facility Evergreen — Total $ 496,481 (a) Subsequent to December 31, 2021, the maturity of this Warehouse Facility has been extended from September 2022 to August 2023. (b) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $200 million. The maturity of this Warehouse Facility has been extended from September 2022 to September 2023. (c) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $200 million. The maturity of this Warehouse Facility has been extended from September 2022 to September 2023. (d) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $200 million. The maturity of this Warehouse Facility has been extended from March 2022 to March 2023. In February 2023, the maturity was extended to April 2023. Refer to Note 27 – Subsequent Events (e) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $250 million as of June 30, 2022 and $50 million as of September 30, 2022. (f) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $1,500 million to $1,200 million. The maturity of this Warehouse Facility has been extended from May 2023 to May 2024. (g) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $550 million to $400 million. Maturity Date(h) Balance at December 31, 2021 (dollars in thousands) $1,200 million Warehouse Facility (i) February 2022 $ 604,421 $500 million Warehouse Facility (j) March 2022 335,509 $500 million Warehouse Facility March 2022 381,087 $1,000 million Warehouse Facility (k) August 2022 716,802 $450 million Warehouse Facility September 2022 277,060 $500 million Warehouse Facility September 2022 339,521 $500 million Warehouse Facility September 2022 375,381 $500 million Warehouse Facility March 2023 309,898 $1,500 million Warehouse Facility May 2023 731,132 $88.5 million Warehouse Facility Evergreen 11,409 $550 million Warehouse Facility Evergreen 363,959 Gestation Warehouse Facility Evergreen 179,360 Early Funding (l) 93,119 Total $ 4,718,658 (h) Maturity Dates in this table are as of December 31, 2021. The Maturity Dates as of December 31, 2022 are reflected in the table above. (i) The warehouse facility was terminated on October 7, 2022. (j) The warehouse facility was terminated on September 23, 2022. (k) The warehouse facility expired in August 2022. (l) In addition to warehouse facilities, the Company is an approved lender for early funding facilities with Fannie Mae through its As Soon As Pooled (“ASAP”) program and Freddie Mac through its Early Funding (“EF”) program. From time to time, the Company enters into agreements to deliver certified pools of mortgage loans and receive funding in exchange for such pools. All mortgage loans delivered under these programs must adhere to a set of eligibility criteria. Early funding programs with Fannie Mae and Freddie Mac do not have stated expiration dates or maximum capacities. The Company’s warehouse facilities’ variable interest rates are calculated using an index rate generally tied to a Secured Overnight Financing Rate (“SOFR”); plus applicable interest rate margins, with varying interest rate floors. The weighted average interest rate for the Company’s warehouse facilities was 2.91% and 2.36% for the years ended December 31, 2022 and 2021, respectively. The Company’s borrowings are secured by MLHS at fair value. The Company’s warehouse facilities require the maintenance of certain financial covenants relating to net worth, profitability, liquidity, and ratio of indebtedness to net worth among others. The Company’s warehouse lines that contain profitability covenants were amended to allow for a net loss for the three months ended December 31, 2022. The Company was in compliance with all warehouse facility covenants as of December 31, 2022. The following presents the Company’s term debt and other borrowings, net: December 31, Maturity Date Collateral 2022 2021 (dollars in thousands) $1.0 billion MSR Facility May 2025 MSRs $ 450,000 $ 685,000 $550 million Senior Notes (a) February 2026 Unsecured 500,000 550,000 $85 million Servicing Advance Facility (b), (c) May 2023 Servicing advances — 3,250 $35 million Operating Line of Credit (c) May 2023 Mortgage loans 1,000 1,000 Gross 951,000 1,239,250 Debt issuance costs (8,917) (12,726) Total $ 942,083 $ 1,226,524 (a) The Company repurchased and retired $50 million of outstanding Senior Notes during the year ended December 31, 2022. (b) Effective June 9, 2022, the capacity of the Servicing Advance Facility was reduced from $90 million to $85 million. (c) Subsequent to December 31, 2021, the maturity was extended from May 2022 to May 2023. The Company maintains a $1.0 billion MSR financing facility (the “MSR Facility”). On April 29, 2022, the Company entered into an amendment to the MSR facility that, among other things, reduced the committed capacity from $650.0 million to $500 million. The amendment also replaced the LIBOR based interest rate with SOFR, plus the applicable interest rate margin, with advance rates generally ranging from 62.5% to 72.5% of the fair value of the underlying MSRs. The MSR Facility is collateralized by the Company’s FNMA, FHLMC, and GNMA MSRs. The MSR Facility has a three-year revolving period ending on May 4, 2024 followed by a one-year period during which the balance drawn must be repaid and no further amounts may be drawn down, which ends on May 20, 2025. The MSR Facility requires the maintenance of certain financial covenants relating to net worth, liquidity, and indebtedness of the Company. The Company was in compliance with all covenants under the MSR Facility as of December 31, 2022. In January 2021, the Company issued $550.0 million aggregate principal amount of its 5.0% Senior Notes due 2026 (the “Senior Notes”) in a private placement transaction. The Senior Notes are guaranteed on a senior unsecured basis by each of the Company’s wholly owned subsidiaries existing on the date of issuance, other than HPAM and HPMAC. The Senior Notes bear interest at a rate of 5.0% per annum, payable semi-annually in arrears. The Senior Notes will mature on February 1, 2026. The company repurchased and retired $50.0 million of outstanding Senior Notes during the second quarter of 2022. The Indenture governing the Senior Notes contains covenants and restrictions that, among other things and subject to certain exceptions, limit the ability of the Company and its restricted subsidiaries to (i) incur additional debt or issue certain preferred shares; (ii) incur liens; (iii) make certain distributions, investments, and other restricted payments; (iv) engage in certain transactions with affiliates; and (v) merge or consolidate or sell, transfer, lease or otherwise dispose of all or substantially all of their assets. The Senior Notes had a carrying value of $500 million and $550 million and an estimated fair value of $343 million and $506 million as of December 31, 2022 and 2021, respectively. The valuation of the Senior Notes was determined based on observable trading information considered Level 2 inputs under the fair value hierarchy. For the Company’s other long-term secured borrowings not recorded at fair value, the carrying value approximated fair value due to the variable interest rate on the borrowings and the repricing of collateral. The Company has a $85.0 million servicing advance facility, which is collateralized by all of the Company’s servicing advances. The facility carries an interest rate of Term SOFR plus a margin and an advance rate ranging from 85.0-95.0%. The servicing advance facility requires the maintenance of certain financial covenants relating to net worth, liquidity, and indebtedness of the Company. The Company was in compliance with all covenants under the servicing advance facility as of December 31, 2022. The Company also has a $35.0 million operating line, with an interest rate based on the Prime Rate. The Company had total available capacity of $391.8 million and $67.4 million for its MSR Facility and servicing advance facility, respectively as of December 31, 2022. The Company has no available capacity for its operating line of credit as of December 31, 2022, The following presents the Company’s debt maturity schedule for the operating line of credit, MSR Facility and the Senior Notes: (dollars in thousands) 2023 $ 1,000 2024 300,000 2025 150,000 2026 500,000 2027 and thereafter — Total $ 951,000 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is or contains a lease at contract inception. The Company also considers whether its service arrangements include the right to control the use of the asset. The initial measurement of the Right-of-use (“ROU”) asset and liability is based on the present value of future lease payments over the lease term at lease commencement date. To determine the present value of lease payments, the Company uses its incremental borrowing rate based on the estimated rate of interest for a fully collateralized fully amortizing borrowing over a similar term of the lease payments at commencement date, since the leases generally do not have a readily determinable implicit discount rates. The Company applies judgement in assessing factors such as Company-specific credit risk, lease term, nature and quality of the underlying collateral, and the economic environment in determining the lease-specific borrowing rate. The Company leases office space and equipment under non-cancelable operating leases expiring through 2029, some of which include options to extend for up to ten The Company has leases with variable payments, most commonly in the form of Common Area Maintenance (“CAM”) and tax charges which are based on actual costs incurred. These variable payments were excluded from the determination of the ROU asset and lease liability balances since they are not fixed or in-substance fixed payments. Variable payments are expensed as incurred. The following presents supplemental cash flow information related to leases: Years Ended December 31, 2022 2021 (dollars in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 5,790 $ 6,521 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 881 The following presents supplemental balance sheet information related to leases: Years Ended December 31, 2022 2021 (dollars in thousands) Operating leases: Right-of-use assets $ 8,269 $ 12,039 Right-of-use liabilities $ 10,600 $ 15,562 Weighted average remaining lease term in years: 3.95 4.21 Weighted average discount rate: 5.22 % 5.08 % Operating lease ROU assets are recorded within Other assets in the consolidated balance sheet. The operating lease ROU liabilities are recorded within Other liabilities in the consolidated balance sheet. The following presents maturities of lease liabilities: (dollars in thousands) 2023 $ 3,515 2024 3,294 2025 2,146 2026 781 2027 804 Thereafter 1,251 Total lease payments 11,791 Less: imputed interest (1,191) Total $ 10,600 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments to Extend Credit The Company’s IRLCs expose the Company to market risk if interest rates change and the loan is not economically hedged or committed to an investor. The Company is also exposed to credit loss if the loan is originated and not sold to an investor and the customer does not perform. The collateral upon extension of credit typically consists of a first deed of trust in the mortgagor’s residential property. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. Total commitments to originate loans were $0.6 billion and $6.1 billion as of December 31, 2022 and 2021, respectively. Litigation The Company is subject to various legal proceedings arising out of the ordinary course of business. There were no current or pending claims against the Company which are expected to have a material impact on the Company's consolidated balance sheets, statements of operations, or cash flows. Regulatory Contingencies |
Regulatory Net Worth Requiremen
Regulatory Net Worth Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Mortgage Banking [Abstract] | |
Regulatory Net Worth Requirements | Regulatory Net Worth Requirements The Company is subject to various regulatory capital requirements administered by the Department of Housing and Urban Development (“HUD”), which govern non-supervised, direct endorsement mortgagees. The Company is also subject to regulatory capital requirements administered by Ginnie Mae, Fannie Mae, and Freddie Mac, which govern issuers of Ginnie Mae, Fannie Mae, and Freddie Mac securities. Additionally, the Company 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; these range from $0 to $1,000, depending on the state. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary remedial actions by regulators that, if undertaken, could (i) remove the Company’s ability to sell and service loans to, or on behalf of, the Agencies and (ii) have a direct material effect on the Company’s consolidated financial statements. In accordance with the regulatory capital guidelines, the Company must meet specific quantitative measures of assets, liabilities, 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 the Company’s results, may significantly affect the Company’s net worth adequacy. The Company is subject to the following minimum net worth, minimum capital ratio, and minimum liquidity requirements established by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac Seller/Servicers, and Ginnie Mae for single family issuers. Minimum Net Worth The minimum net worth requirement for Fannie Mae and Freddie Mac is defined as follows: • Base Adjusted/Tangible Net Worth (as defined by HUD) of $2.5 million plus 25 basis points of outstanding UPB for total loans serviced. • Adjusted/Tangible Net Worth, as defined by HUD, is comprised of total equity less goodwill, intangible assets, affiliate receivables, deferred tax assets, prepaid expenses, and certain pledged assets. The minimum net worth requirement for Ginnie Mae is defined as follows: • Base Adjusted/Tangible Net Worth (as defined by HUD) of $2.5 million plus 35 basis points of the issuer’s total single-family effective outstanding obligations. • Adjusted/Tangible Net Worth, as defined by HUD, is comprised of total equity less goodwill, intangible assets, affiliate receivables, deferred tax assets, prepaid expenses, and certain pledged assets. Minimum Capital Ratio For Fannie Mae, Freddie Mac and Ginnie Mae, the Company is also required to maintain a ratio of Adjusted/Tangible Net Worth to Total Assets greater than 6.0%. Minimum Liquidity The minimum liquidity requirement for Fannie Mae and Freddie Mac is defined as follows: • 3.5 basis points of total Agency servicing. • Incremental 200 basis points of total nonperforming Agency servicing, measured as 90 plus day delinquencies, in excess of 6.0% of the total Agency servicing UPB. • Allowable assets for liquidity may include: cash and cash equivalents (unrestricted); available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of Government-Sponsored Enterprises (“GSEs”), US Treasury Obligations); and unused/available portion of committed servicing advance lines. The minimum liquidity requirement for Ginnie Mae is defined as follows: • Maintain liquid assets equal to the greater of $1.0 million or 10 basis points of the Company’s outstanding single-family MBS. The most restrictive of the requirements require the Company to maintain a minimum adjusted net worth balance of $225.7 million and $326.3 million as of December 31, 2022 and 2021, respectively. The Company is in compliance with all minimum requirements to which it was subject as of December 31, 2022. |
Representation and Warranty Res
Representation and Warranty Reserve | 12 Months Ended |
Dec. 31, 2022 | |
Mortgage Banking [Abstract] | |
Representation and Warranty Reserve | Representation and Warranty Reserve The majority of the Company’s loan sale contracts include provisions requiring the Company to repurchase a loan if a borrower fails to make certain initial loan payments due to the acquirer or if the accompanying mortgage loan fails to meet customary representations and warranties. Historically, the Company received relief of certain repurchase obligations on loans sold to FNMA or FHLMC by taking advantage of their repurchase alternative program. This program provided the Company with the ability, in certain instances, to pay a fee to FNMA or FHLMC, in lieu of being obligated to repurchase the loan. During September and October 2022, FNMA and FHMC notified the Company that they will not provide repurchase obligation relief through the repurchase alternative program beginning in the fourth quarter of 2022 until further notice. The Company has included considerations that it may receive relief of certain representations and warranty obligations on loans sold to FNMA or FHLMC on or after January 1, 2013 if FNMA or FHLMC satisfactorily concludes a quality control loan file review or if the borrower meets certain acceptable payment history requirements within 12 or 36 months after the loan is sold to FNMA or FHLMC, respectively. The current UPB of loans sold by the Company represents the maximum potential exposure to repurchases related to representations and warranties. Reserve levels are a function of expected losses based on historical experience and loan volume. While the amount of repurchases is uncertain, the Company considers the liability to be appropriate. The following presents the activity of the outstanding repurchase reserve: Years Ended December 31, 2022 2021 (dollars in thousands) Repurchase reserve, at beginning of period $ 24,577 $ 18,080 Additions 52,799 12,147 Charge-offs (50,771) (5,650) Repurchase reserves, at end of period $ 26,605 $ 24,577 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsThe Company uses fair value measurements to record certain assets and liabilities at fair value on a recurring basis, such as MSRs, derivatives, MLHS and Early buyout loans (“EBOs”). The Company has elected fair value accounting for MLHS and MSRs to more closely align the Company’s accounting with its interest rate risk strategies without having to apply the operational complexities of hedge accounting. The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level Input: Input Definition: Level 1 Unadjusted, quoted prices in active markets for identical assets or liabilities. Level 2 Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company. These may include quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk and others. Level 3 Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity), unobservable inputs may be used. Unobservable inputs reflect the Company's own assumptions about the factors that market participants would use in pricing the asset or liability and are based on the best information available in the circumstances. An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. While the Company believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methods or assumptions to estimate the fair value of certain financial statement items could result in a different estimate of fair value at the reporting date. Those estimated values may differ significantly from the values that would have been used had a readily available market for such items existed, or had such items been liquidated, and those differences could be material to the financial statements. Fair Value of Certain Assets and Liabilities The following describes the methods used in estimating the fair values of certain assets and liabilities: Mortgage loans held for sale. The majority of the Company's MLHS at fair value are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2. A smaller portion of the Company's MLHS consist of loans repurchased from the GSEs that have subsequently been deemed to be non-saleable to GSEs and Ginnie Mae when certain representations and warranties are breached. These loans, however, are saleable to other entities and are classified on the consolidated balance sheets as Mortgage loans held for sale. These repurchased loans are considered Level 3 and are valued based on recent sales prices of similar loans. Interest rate lock commitments. The Company estimates the fair value of IRLCs based on the value of the underlying mortgage loan, quoted MBS prices and estimates of the fair value of the MSRs and the probability that the mortgage loan will fund within the terms of the IRLC. The average pull-through rate for IRLCs was 77.5% and 86.1% as of December 31, 2022 and 2021, respectively. Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3. Forward sales and purchase commitments. The Company treats forward mortgage-backed securities purchase and sale commitments that have not settled as derivatives and recognizes them at fair value. These forward commitments will be fulfilled with loans not yet sold or securitized and new originations and purchases. The forward commitments allow the Company to reduce the risk related to market price volatility. The Company estimates the fair value of forward commitments based on quoted MBS prices. These derivatives are classified as Level 2. Interest rate swap futures contracts. The Company uses options on swap contracts to offset changes in the fair value of MSRs. The Company estimates the fair value of these MSR-related derivatives using quoted prices for similar instruments. These derivatives are classified as Level 2. Treasury futures purchase contracts. The Company uses Treasury futures contracts to offset changes in the fair value of MSRs. The Company estimates fair value of these MSR-related derivatives using quoted market prices. These derivatives are classified as Level 1. Mortgage servicing rights. The Company uses a discounted cash flow approach to estimate the fair value of MSRs. This approach consists of projecting servicing cash flows discounted at a rate that management believes market participants would use in their determinations of value. The Company obtains valuations from an independent third party on a quarterly basis to support the reasonableness of the fair value estimate. Key assumptions used in measuring the fair value of MSRs include, but are not limited to, discount rates and prepayment speeds. Other assumptions such as delinquencies, and cost to service are also considered resulting in a Level 3 classification. The following presents the major categories of assets and liabilities measured at fair value on a recurring basis: December 31, 2022 Level 1 Level 2 Level 3 Total (dollars in thousands) Assets: Mortgage loans held for sale $ — $ 629,108 $ 13,885 $ 642,993 Interest rate lock commitments — — 2,231 2,231 Forward sale contracts — 6,107 — 6,107 Mortgage servicing rights — — 1,402,542 1,402,542 Total $ — $ 635,215 $ 1,418,658 $ 2,053,873 Liabilities: Interest rate lock commitments $ — $ — $ 2,504 $ 2,504 Forward sale contracts — 1,200 — 1,200 Forward purchase contracts — 400 — 400 Total $ — $ 1,600 $ 2,504 $ 4,104 December 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Assets: Mortgage loans held for sale $ — $ 5,086,943 $ 20,218 $ 5,107,161 Interest rate lock commitments — — 29,887 29,887 Forward sales contracts — 6,969 — 6,969 Forward purchase contracts — 3,031 — 3,031 Interest rate swap futures contracts — 111 — 111 Mortgage servicing rights — — 1,525,103 1,525,103 Total $ — $ 5,097,054 $ 1,575,208 $ 6,672,262 Liabilities: Interest rate lock commitments $ — $ — $ 2,843 $ 2,843 Forward sales contracts — 8,242 — 8,242 Forward purchase contracts — 281 — 281 Interest rate swap futures contracts — 5,662 — 5,662 Total $ — $ 14,185 $ 2,843 $ 17,028 The following presents a reconciliation of Level 3 assets measured at fair value on a recurring basis: Year Ended December 31, 2022 MSRs IRLC-Asset MLHS IRLC-Liability (dollars in thousands) Balance at beginning of period $ 1,525,103 $ 29,887 $ 20,218 $ 2,843 Purchases, sales, issuances, contributions, and settlements (349,522) — (5,621) — Change in fair value 226,961 (27,656) 468 (339) Transfers out (a) — — (1,180) — Balance at end of period $ 1,402,542 $ 2,231 $ 13,885 $ 2,504 Year Ended December 31, 2021 MSRs IRLC-Asset MLHS IRLC-Liability (dollars in thousands) Balance at beginning of period $ 748,457 $ 257,785 $ 44,374 $ — Purchases, sales, issuances, contributions, and settlements 856,802 — (26,353) 2,843 Change in fair value (80,156) (227,898) (633) — Transfers in (a) — — 2,830 — Balance at end of period $ 1,525,103 $ 29,887 $ 20,218 $ 2,843 (a) Transfers in (out) represents transfers between Levels 2 and 3, and reclassifications to Real estate owned (“REO”), foreclosure or claims. The following presents the fair value and UPB of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects its expected future economic performance: Fair Value Principal Amount Due Upon Maturity Difference (a) (dollars in thousands) December 31, 2022 $ 642,993 $ 680,315 $ (37,322) December 31, 2021 $ 5,107,161 $ 5,005,069 $ 102,092 (a) Represents the amount of (losses) gains related to changes in fair value of items accounted for using the fair value option included in Gain on loans, net within the consolidated statements of operations. To evaluate Goodwill, the Company determined fair value of its reporting units using inputs classified as Level 3 in the fair value hierarchy, refer to Note 6 - Goodwill . The Company had no other significant assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2022 and 2021, respectively. The following is a summary of the key unobservable inputs used in the valuation of the Level 3 assets: Year Ended December 31, 2022 Assets: Key Input Range Weighted Average Mortgage servicing rights Discount rate 9.6% - 14.0% 11.2% Prepayment speeds 4.6% - 8.2% 5.4% Interest rate lock commitments Pull-through rate 21.0% - 100% 77.5% Mortgage loans held for sale Investor pricing 65.0% - 103.6% 93.3% Year Ended December 31, 2021 Asset Key Input Range Weighted Average Mortgage servicing rights Discount rate 8.6% - 12.2% 8.7% Prepayment speeds 6.9% - 11.6% 8.3% Interest rate lock commitments Pull-through rate 49.8% - 100.0% 86.1% Mortgage loans held for sale Investor pricing 70.0% - 104.1% 91.3% Fair Value of Other Financial Instruments |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Given the current market factors and industry trends, including the rapidly rising interest rates and increased competition in the industry, the Company took restructuring actions to enhance liquidity and align the Company’s cost structure with the decrease in the Origination volume. In August 2022, the Board approved the restructuring actions, which resulted in $14.2 million expense for cash severance and related benefits, retention, and termination costs in Compensation and benefits in the consolidated statements of operations for the year ended December 31, 2022. The restructuring actions also included charges related to the write-down and write-off of office equipment totaling $2.3 million in Other expenses in the consolidated statement of operations for the year ended December 31, 2022. The activities associated with the current restructuring actions are complete as of December 31, 2022. The following is a summary of the Company’s restructuring reserve: Severance and Employee-Related Costs Office Equipment Total (dollars in thousands) Balance as of January 1, 2022 $ — $ — $ — Restructuring charges 14,182 2,302 16,484 Payments (14,182) — (14,182) Non-cash impairment of office equipment — (2,302) (2,302) Balance as of December 31, 2022 $ — $ — $ — |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans The Company maintains a 401(k) profit sharing plans covering substantially all employees. Employees may contribute amounts subject to certain IRS and plan limitations. The Company may make discretionary matching contributions, subject to certain limitations. Matching contribution made by the Company totaled $2.5 million and $3.7 million for the years ended December 31, 2022 and 2021, respectively. |
Equity-based Compensation
Equity-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-based compensation | Equity-based Compensation In January, 2021, the Company’s Board approved the adoption of the Company’s 2021 Incentive Plan (“2021 Plan”) and designated 6.9 million shares of the Company’s authorized common stock available for equity-based awards thereunder. The 2021 Plan allows for the assumption and substitution of outstanding options to purchase common units of HPLP granted under HPLP 2015 Option Plan (the “2015 Option Plan”), which was in place prior to the Company’s IPO. The expiration date of the 2021 Plan is the tenth (10th) anniversary of the effective date of the 2021 Plan, which is January 21, 2031. The 2021 Plan contains both time-vesting service criteria, and performance based vesting terms, which are based on the achievement of specified performance criteria outlined in the underlying award agreement. Prior to the consummation of the merger in connection with the IPO, the 2015 Option Plan governed awards of stock options to key persons conducting business for HPLP and its direct and indirect subsidiaries, including the Company. The 2015 Option Plan allowed awards in the form of options that are exercisable into common units of HPLP. In connection with the IPO, all outstanding options under the 2015 Option Plan were canceled and “substitute options” were granted under the 2021 Plan. The exercise price and number of shares of common stock of the substitute options result in the same (subject to rounding) intrinsic value as the outstanding options granted under the 2015 Option Plan. Restricted Stock Units Restricted stock units (“RSUs”) are awards that represent the potential to receive shares of the Company’s common stock at the end of the applicable vesting period, subject to the terms and conditions of the 2021 Plan and the applicable award documents. RSUs awarded under the 2021 Plan are fair valued based upon the fair market value of the Company’s common stock on the grant date. Any person who holds RSUs has no ownership interest in the shares of the Company’s common stock to which such RSUs relate until and unless shares of common stock are delivered to the holder. The RSUs will be credited with dividend equivalent payments, as provided in Section 13(c)(iii) of the 2021 Plan. The following presents the summary of the Company’s RSU activity: Year ended December 31, 2022 Units Weighted-Average Grant Date Fair Value Outstanding at beginning of period 367,991 $ 10.18 Granted 233,550 3.85 Vested (209,093) 10.75 Outstanding at end of period 392,448 $ 6.12 The RSUs granted to the Company’s management team will vest in equal annual installments over a three-year period subject to the participants’ continued employment with the Company. The RSUs granted to the non-management members of the Company’s Board who are not affiliated with Stone Point Capital LLC vest at the next annual meeting of stockholders following the grant date. The Company recognized $1.5 million of compensation expense related to RSUs within Compensation and benefits expense on the consolidated statements of operations for both years ended December 31, 2022 and 2021. Performance Stock Units Performance stock units (“PSUs”) are fair valued on the date of grant and expensed over the service period using a straight-line method as the awards cliff vest at the end of a three-year performance period. The Company also estimates the number of shares expected to vest, which is based on management’s determination of the probable outcome of the Performance Condition (as defined below), which requires considerable judgment. The Company records a cumulative adjustment in periods in which the Company’s estimate of the number of shares expected to vest changes. Additionally, the Company ultimately adjusts the expense recognized to reflect the actual vested shares following the resolution of the Performance Condition. The PSUs will become earned based on the level of achievement of the Company’s average return on equity over a three-year performance period (the “Performance Condition”). The number of earned PSUs can range from 0% to 150% of the number of PSUs granted, depending on continued service with the Company and the extent to which the Performance Condition has been achieved at the end of the performance period. The PSUs will be credited with dividend equivalent payments, as provided in Section 13(c)(iii) of the 2021 Plan. The following presents the summary of the Company’s PSU activity: Year ended December 31, 2022 Units Weighted-Average Grant Date Fair Value Outstanding at beginning of period 238,347 $ 9.44 Granted 131,924 3.79 Outstanding at end of period 370,271 $ 7.43 The Company did not recognize any compensation expense related to PSUs for the years ended December 31, 2022 and 2021. Stock Option Awards The Company recognizes compensation expense associated with the stock option grants using the straight-line method over the requisite service period. The Company recognized $3.7 million and $5.4 million of compensation expense related to stock options within Compensation and benefits expense in the consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. The unrecognized compensation expense related to outstanding and unvested stock options was $42.1 million as of December 31, 2022, which is expected to vest and get recognized over a weighted-average period of 5.2 years. The number of options vested and exercisable was 2,367,280 and the weighted-average exercise price of the options exercisable was $3.77 as of December 31, 2022. The following presents the summary of the Company’s stock option activity under the 2021 Plan: Year ended December 31, 2022 Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life (Years) Weighted Average Grant Date Fair Value Outstanding at beginning of period 11,751,031 $ 4.45 6.87 $ 8.38 Granted 337,043 1.81 4.09 9.79 Exercised (294,068) 1.86 1.52 9.77 Forfeited (661,130) 1.85 0.14 9.73 Expired (198,983) 1.79 1.00 9.76 Outstanding at end of period 10,933,893 $ 4.64 4.70 $ 8.27 The following presents the summary of the Company’s non-vested activity under the 2021 Plan : Year ended December 31, 2022 Number of Shares Weighted Average Grant Date Fair Value Non-vested at beginning of period 9,627,033 $ 8.19 Granted 337,043 9.79 Vested (243,282) 9.20 Exercised (294,068) 9.77 Forfeited (661,130) 9.73 Expired (198,983) 9.76 Non-vested at end of period 8,566,613 $ 8.12 The following presents assumptions used in the Black-Scholes option valuation model to determine the weighted-average fair value per stock option granted: Years Ended December 31, 2022 2021 Expected life (in years) 8.3 8.2 Risk-free interest rate 0-3.0% 0.6%-3.0% Expected volatility 24.9% 24.9% Dividend yield — — The expected life of each stock option is estimated based on its vesting and contractual terms. The risk-free interest rate reflected the yield on zero-coupon Treasury securities with a term approximating the expected life of the stock options. The expected volatility was based on an analysis of the historical volatilities of peer companies, adjusted for certain characteristics specific to the Company. The Company applied an estimated forfeiture rate of 0-10.4% both as of December 31, 2022 and 2021. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share (Loss) earnings per share (“EPS”) is calculated and presented in the consolidated financial statements for both basic and diluted earnings per share. Basic EPS excludes all dilutive common stock equivalents and is calculated by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted EPS, as calculated using the treasury stock method, reflects the potential dilution that would occur if the Company’s dilutive outstanding stock options and stock awards were issued and exercised. The following presents the calculation of the basic and diluted (loss) earnings per share: Years Ended December 31, 2022 2021 (dollars in thousands, except per share amounts ) Net (loss) income $ (163,454) $ 166,272 Numerator: Net (loss) income attributable to common shareholders $ (163,454) $ 166,272 Net (loss) income attributable to Home Point - diluted $ (163,454) $ 166,272 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 138,638 139,198 Dilutive effect of common stock equivalents — 798 Weighted average shares of common stock outstanding - diluted 138,638 139,996 (Loss) earnings per share of common stock outstanding - basic $ (1.18) $ 1.19 (Loss) earnings per share of common stock outstanding - diluted $ (1.18) $ 1.19 As a result of the net loss from continuing operations for the year ended December 31, 2022, the effect of certain dilutive securities was excluded from the computation of weighted average diluted shares outstanding, as inclusion would have resulted in antidilution. |
Shareholders' Equity and Equity
Shareholders' Equity and Equity Method Investment | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity and Equity Method Investment | Shareholders’ Equity and Equity Method Investment Common Stock Repurchases On February 24, 2022, the Company’s Board approved the repurchase of shares of the Company’s common stock, par value $0.0000000072 per share (the “Common Stock”), in an aggregate amount not to exceed $8.0 million, from time to time through and including December 31, 2022 pursuant to one or more plans adopted under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Stock Repurchase Program”). The Company repurchased 1,179,796 shares of Common Stock at an aggregate price of $3.8 million, including commissions and fees, through market purchase transactions under the Stock Repurchase Program during the year ended December 31, 2022. Shares repurchased under the program have been subsequently retired. Equity Method Investment The Company held an equity method investment in Longbridge through a 49.6% voting ownership interest, which was the only equity method investment held by the Company. The $63.7 million net investment was classified as held for sale as of December 31, 2021 and was adjusted for HPC’s 2022 share of Longbridge’s earnings or losses, contributions and distributions, and impairment. The Company entered into a definitive agreement in February of 2022 to sell its investment in Longbridge. An impairment charge of $8.8 million was recognized for the held for sale balance of equity method investment in Loss from equity method investment in the consolidated statement of operations for the year ended December 31, 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following presents the components of Income tax benefit (expense): Year Ended December 31, 2022 Federal State Total (dollars in thousands) Current $ (1,551) $ (1,700) $ (3,251) Deferred 39,386 5,779 45,165 Total income tax benefit $ 37,835 $ 4,079 $ 41,914 Year Ended December 31, 2021 Federal State Total (dollars in thousands) Current $ 64 $ (2,311) $ (2,247) Deferred (43,039) (12,712) (55,751) Total income tax expense $ (42,975) $ (15,023) $ (57,998) The following presents a reconciliation of the Income tax benefit (expense) recorded on the Company’s consolidated statements of operations to the expected statutory federal corporate income tax rates: Years Ended December 31, 2022 2021 (dollars in thousands) Loss (income) before income taxes $ (179,090) $ 208,897 Statutory federal income tax (benefit) expense (21%) (37,609) 43,868 State income tax expense, net of federal tax (6,914) 10,116 Impact of equity investments (5,518) 3,679 Impact of tax rate change 3,199 (494) HPMAC investment write Off 2,318 — Impairment of goodwill 1,879 — Change in valuation allowance — 1,812 Other 731 (983) Total income tax (benefit) expense $ (41,914) $ 57,998 Effective tax rate 23.4 % 27.8 % The following presents the components of the Company’s net deferred tax assets (liabilities): December 31, 2022 2021 (dollars in thousands) Deferred tax asset Federal NOL carryforward $ 93,151 $ 101,800 State NOL carryforward 23,603 23,825 Rep. & Warranty 6,715 6,120 ROU lease deferred asset 2,775 4,000 Other 6,249 13,281 Total deferred tax asset $ 132,493 $ 149,026 Deferred tax liability MSR (308,158) (348,417) Derivatives — (6,734) Investment in Longbridge — (11,546) ROU lease deferred liability (2,803) (3,900) Other (3,052) (5,785) Total deferred tax liability $ (314,013) $ (376,382) Valuation Allowance (2,340) (2,396) Net deferred tax liability $ (183,860) $ (229,752) The Company is required to establish a valuation allowance for deferred tax assets and record a charge to income if it is determined, based on all available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s analysis focuses on identifying significant, objective evidence that it will more likely than not be able to realize its deferred tax assets in the future. The Company considers both positive and negative evidence when evaluating the need for a valuation allowance, which is highly judgmental and requires subjective weighting of such evidence on a jurisdiction-by-jurisdiction basis. The Company established a valuation allowance of $2.3 million and $2.4 million related to state net operating losses (“NOLs”) as of December 31, 2022 and 2021, respectively. As of December 31, 2022, the Company’s deferred tax asset includes gross federal and state NOL carryforwards of $443.6 million and $436.6 million, respectively. Certain of these carryforwards expire in 2035 through 2037. The NOLs generated after 2017 carryforward indefinitely and are subject to a limit of 80% of taxable income in taxable years beginning after December 31, 2020. Certain of the Company’s NOLs are subject to limitation under IRC §382, limiting the Company’s ability to utilize the full NOL in any given period. Unrecognized tax benefits are recognized related to tax positions included in (i) previously filed income tax returns and (ii) financial results expected to be included in income tax returns to be filed for periods through the date of the consolidated financial statements. The Company recognizes tax benefits from uncertain income tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authority based on the technical merits of the position. An uncertain income tax position that meets the “more likely than not” recognition threshold is then measured to determine the amount of the benefit to recognize. The Company has $0.8 million and $0.7 million uncertain tax positions as of December 31, 2022 and 2021, respectively. The liability is for unrecognized tax benefits related to state income tax matters excluding interest and penalties. The following presents a reconciliation of the beginning and ending amounts of uncertain tax positions: Years Ended December 31, 2022 2021 (dollars in thousands) Balance at beginning of period $ 743 $ — Increases related to positions taken during prior years — 743 Increases related to positions taken during the current year 92 — Decreases related to positions settled with tax authorities — — Decreases due to a lapse of applicable statute of limitations — — Balance at end of period $ 835 $ 743 Total amount of unrecognized tax benefit that would affect the effective tax rate if recognized was $0.5 million and $0.4 million as of December 31, 2022 and 2021, respectively. Less than $20 thousand for interest and penalties was accrued on the liability for unrecognized tax benefits for the year ended December 31, 2022, which, in accordance with company policy, are a part of interest and penalty expense. The Company's tax years that generally remain subject to examination by the IRS and various state and local jurisdictions are 2019-2021. On August 16, 2022, Inflation Reduction Act (“IRA”) of 2022 was signed into law, which, among other things, imposed a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. The Company is still analyzing the impact of IRA, but do not expect it to be material to the financial statements . |
Segments
Segments | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments | SegmentsManagement has organized the Company into two reportable segments based primarily on its services as follows: (1) Origination and (2) Servicing. Each reportable segment has discrete financial information evaluated regularly by the chief operating decision maker (“CODM”) in monitoring performance, allocating capital, and making strategic and operational decisions that align with the Company and its internal operations. Origination In the Origination segment, the Company originates residential real estate mortgage loans in the U.S. through the consumer direct third party originations, and prior to its sale, which was completed on June 1, 2022, the correspondent channel. The Company’s origination channels offer a variety of loan programs that support the financial needs of the borrowers. In each of the channels, the Company’s primary source of revenue is the difference between the cost of originating or purchasing the loan and the price at which the loan is sold to investors as well as the fair value of originated MSRs and hedging gains and losses. Loan origination fees and interest income earned on loans held for sale or securitization are also included in the revenue for this segment. Servicing In the Servicing segment, the Company generates revenue through contractual fees earned by performing daily administrative and management activities for mortgage loans. These activities include collecting loan payments, remitting payments to investors, sending monthly statements, managing escrow accounts, servicing delinquent loan work-outs, and managing and disposing of foreclosed properties. In February 2022, the Company entered into an agreement with ServiceMac, LLC (“ServiceMac”), a wholly owned subsidiary of First American Financial Corporation, pursuant to which ServiceMac subservices all mortgage loans underlying the Company’s MSRs. 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. ServiceMac began subservicing loans for the Company in the second quarter of 2022. Other Information About the Company’s Segments The Company's CODM evaluates performance, makes operating decisions, and allocates resources based on the Company's contribution margin. Contribution margin is the Company’s measure of profitability for its two reportable segments. Contribution margin is defined as revenue from Gain on loans, net, Loan fee income, Loan servicing fees, Change in fair value of MSRs, Interest income, and Other income (which includes Income from equity method investment) adjusted for the change in fair value attributable to valuation assumptions of MSRs and less directly attributable expenses. Directly attributable expenses include salaries, commissions and associate benefits, general and administrative expenses, and other expenses, such as servicing and origination costs. Direct operating expenses driven by the activities of the segments are included in the respective segments. The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting. Additionally, the Company does not enter into transactions between its reportable segments. The Company also reports an “All Other” category that includes unallocated corporate expenses, such as IT, finance, and human resources. These operations are neither significant individually or in aggregate and therefore do not constitute a reportable segment. The following presents the key operating data for the Company’s business segments: Year Ended December 31, 2022 Origination Servicing Segments Total All Other Total Reconciliation Item (a) Total Consolidated (dollars in thousands) Revenue: Gain on loans, net $ 47,105 $ — $ 47,105 $ — $ 47,105 — $ 47,105 Loan fee income 46,029 — 46,029 — 46,029 — 46,029 Loan servicing fees — 265,275 265,275 — 265,275 — 265,275 Change in fair value of mortgage servicing rights — (97,689) (97,689) — (97,689) — (97,689) Interest income (expense), net 21,375 12,172 33,547 (54,411) (20,864) — (20,864) Other income (expense) 111 — 111 (10,598) (10,487) 26,278 15,791 Total $ 114,620 $ 179,758 $ 294,378 $ (65,009) $ 229,369 $ 26,278 $ 255,647 Contribution (loss) margin $ (106,884) $ 121,765 $ 14,881 $ (220,249) $ (205,368) Year Ended December 31, 2021 Origination Servicing Segments Total All Other Total Reconciliation Item (a) Total Consolidated (dollars in thousands) Revenue: Gain on loans, net $ 585,762 $ — $ 585,762 $ — $ 585,762 $ — $ 585,762 Loan fee income 150,921 — 150,921 — 150,921 — 150,921 Loan servicing fees 8 331,374 331,382 — 331,382 — 331,382 Change in fair value of mortgage servicing rights — (76,831) (76,831) — (76,831) — (76,831) Interest income (expense), net 13,897 1,931 15,828 (48,741) (32,913) — (32,913) Other income — 227 227 18,341 18,568 (15,373) 3,195 Total $ 750,588 $ 256,701 $ 1,007,289 $ (30,400) $ 976,889 $ (15,373) $ 961,516 Contribution margin $ 237,055 $ 185,824 $ 422,879 $ (198,609) $ 224,270 (a) The Company includes the results from its equity method investment in the All Other. Therefore, the loss (income) is removed to reconcile to Total revenue, net on the consolidated statements of operations. The following presents a reconciliation of contribution (loss) margin to consolidated U.S. GAAP (Loss) income before income tax: Years Ended December 31, 2022 2021 (dollars in thousands) (Loss) income before income tax $ (179,090) $ 208,897 (Loss) income from equity method investment (26,278) 15,373 Contribution (loss) margin $ (205,368) $ 224,270 |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Concentration of Credit Risk Financial instruments, which potentially subject the Company to credit risk, consist of cash and cash equivalents, derivatives, and mortgage loans held for sale. 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 is minimized through its policy to sell mortgage loans only to highly reputable and financially sound financial institutions. Concentrations The Company originated or purchased loans in 50 states and the District of Columbia, with significant activity (approximately 5% or greater of total originations) in the following states: Percentage of Origination 2022 State: California 26.5 % Texas 7.5 % Florida 7.1 % 2021 State: California 31.8 % Florida 7.4 % New Jersey 5.4 % The total unpaid principal balance of the servicing portfolio, including MLHS, was approximately $89.3 billion and $133.9 billion as of December 31, 2022 and 2021, respectively. The unpaid principal balance of loans originated by the Company and sold with servicing retained was $26.8 billion and $92.2 billion for the year-end December 31, 2022 and 2021, respectively. ServiceMac subservices all mortgage loans underlying the Company’s MSRs in 50 states and the District of Columbia, with significant activity (approximately 5% or greater of total servicing) in the following states: Percentage of Servicing Unpaid Principal Balance 2022 State: California 20.4 % Texas 8.3 % Florida 6.3 % 2021 State: California 29.1 % Florida 5.6 % Texas 7.4 % Significant Customers Residential mortgage loans are sold through one of the following methods: (i) sales to or pursuant to programs sponsored by Fannie Mae, Freddie Mac and Ginnie Mae, or (ii) sales to private investors. 97.8% and 97.0% of mortgage loans sales were to the Agencies for the years ended December 31, 2022 and 2021, respectively. The following presents newly originated loans that the Company sold to investors or transferred into GNMA securitization pools: Years Ended December 31, 2022 2021 (dollars in thousands) Percentage (dollars in thousands) Percentage GNMA $ 7,095,893 22.3 % $ 13,089,283 13.9 % FNMA 11,632,784 36.5 % 42,721,394 45.3 % FHLMC 11,858,369 37.2 % 35,824,414 38.0 % Other 1,300,224 4.1 % 2,667,113 2.8 % $ 31,887,270 100 % $ 94,302,204 100 % |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties The Company entered into transactions and agreements to purchase various services and products from certain affiliates of our sponsor, Stone Point Capital LLC. The services include valuation of MSRs, insurance brokerage services, loan review, and tax payment services for certain loan originations. The following presents principal categories of the related party transactions recorded in the consolidated statements of operations. Years Ended December 31, 2022 2021 (dollars in thousands) Loan expense $ 9,134 $ 14,590 Loan servicing expense 1,911 1,014 General and administrative 9,450 5,268 Other expenses (a) 5,793 9,630 Other 208 10 Total $ 26,496 $ 30,512 |
Sale of The Correspondent Chann
Sale of The Correspondent Channel and Home Point Asset Management LLC | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of The Correspondent Channel and Home Point Asset Management LLC | Sale of The Correspondent Channel and Home Point Asset Management LLC On June 1, 2022 (the “Closing Date”), HPF completed the previously announced sale of certain assets of HPF’s delegated Correspondent channel to Planet Home Lending, LLC (“Planet”). The sale of the correspondent channel reduces the Company’s expenses and enables reallocation of resources to our Wholesale channel. The purchase price for such assets was $2.5 million in cash, plus an earnout payment based on certain of Planet’s correspondent origination volume during the two-year period commencing on the Closing Date. The Company records the earnout payment when the consideration is determined to be realizable. The sale resulted in a $0.4 million loss in Other expenses in the consolidated statements of operations. The loss was more than offset by earnout income of $0.9 million for the year ended December 31, 2022. On December 2, 2022, HPC completed the previously announced sale of its equity interests in HPAM and its wholly owned subsidiary HPMAC. Prior to the sale, HPAM was a wholly owned subsidiary of the Company and managed certain servicing assets. HPMAC serviced residential real estate mortgage loans. The purchase price for this transaction was $3.2 million in cash. The sale resulted in a $2.8 million gain in Other income |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 31, 2023, HPF terminated the Mortgage Loan Participation Sale Agreement (the “Gestation Agreement”), dated as of November, 2021, between HPF, as seller and JPMorgan Chase Bank, National Association, as purchaser (“Purchaser”). The Gestation Agreement permitted the Purchaser to purchase from HPF from time to time during the term of the Gestation Agreement participation certificates evidencing a 100% undivided beneficial ownership interest in designated pools of fully amortizing first lien residential mortgage loans that were intended to ultimately be included in residential MBS (the “Agency MBS”) issued or guaranteed, as applicable, by Fannie Mae, Freddie Mac, and Ginnie Mae. The aggregate purchase price of participation certificates owned by Purchaser at any given time for which Purchaser had not been paid the purchase price for the related Agency MBS by the applicable takeout investor as specified in the applicable takeout commitment could not exceed $400 million. The parties mutually agreed to terminate the JPM Gestation Agreement prior to its scheduled maturity date of September 29, 2023. HPF did not incur any early termination penalties. On March 3, 2023, The Company extended the maturity date of its $200 million warehouse facility with Bank of Montreal from March 6, 2023 to April 20, 2023. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of HPC and all its wholly owned subsidiaries, including HPF and HPCIA. All intercompany balances and transactions have been eliminated in consolidation. As noted above, in December 2022 HPC completed the sale of HPAM and HPMAC. The results of operations for HPAM and HPMAC through the date of sale are included in the consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires HPC to make estimates and assumptions about future events that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable. Examples of reported amounts that rely on significant estimates include mortgage loans held for sale (“MLHS”), mortgage servicing rights (“MSRs”), servicing advances reserve, derivative assets, derivative liabilities, reserves for mortgage repurchases and indemnifications, and deferred tax valuation allowance considerations. Significant estimates are also used in determining the recoverability and fair value of property and equipment and goodwill. |
Cash and Cash Equivalents | Cash and cash equivalents are comprised of cash and other highly liquid investments with a maturity of three months or less. Cash equivalents are stated at cost, which approximates market value. The Company maintains its deposits in financial |
Restricted Cash | Restricted cash is comprised of borrower escrow funds and cash reserves required by the Company’s warehouse lenders. |
Mortgage Loans Held for Sale and Mortgage Servicing Rights | Mortgage loans held for sale are accounted for using the fair value option. Therefore, mortgage loans originated and intended for sale in the secondary market are reflected at fair value. Changes in the fair value are recognized in current period earnings in Gain on loans, net, within the consolidated statements of operations. Refer to “ Note 3 - Mortgage Loans Held for Sale .” Mortgage servicing rights are recognized when loans are sold and the associated servicing rights are retained. The Company maintains one class of MSR asset and has elected the fair value option. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of MSRs include, but are not limited to, discount rates and prepayment speeds. Other assumptions such as delinquencies, and cost to service are also considered. The assumptions used in the valuation model are validated on a periodic basis. The Company obtains valuations from an independent third party on a quarterly basis and records an adjustment based on this third-party valuation. Changes in the fair value are recognized in Change in fair value of mortgage servicing rights, net on the Company's consolidated statements of operations. Purchased MSRs are recorded at the fair value at the date of purchase. |
Property and Equipment, Net | Property and equipment, net include furniture, equipment, leasehold improvements, and work-in-process, which are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets for financial reporting, which range from three |
Servicing Advances | Servicing advances represent advances paid by the Company on behalf of customers to fund delinquent balances for principal, interest, property taxes, insurance premiums, and other out-of-pocket costs. Advances are made in accordance with the servicing agreements and are recoverable upon collection of future borrower payments or foreclosure of the underlying loans. The Company is exposed to losses only to the extent that the respective servicing guidelines are not followed or in the event there is a shortfall in liquidation proceeds and records a reserve against the advances when it is probable that the servicing advance will be uncollectible. The adequacy of the reserve is evaluated so that the reserve represents management’s estimate of current expected losses and is maintained at a level that management considers adequate based upon continuing assessments of collectability, current trends, and historical loss experience. The reserve for uncollectible servicing advances is recorded in Accounts receivable, net in the consolidated balance sheets and the change in the reserve is recorded in Loan servicing expense in the consolidated statements of operations. In certain circumstances, the Company may be required to remit funds on a non-recoverable basis, which are expensed as incurred. Refer to “ Note 9 – Accounts Receivable, net |
Derivative Financial Instruments | Derivative financial instruments are recorded at fair value as either Derivative assets or in Derivative liabilities on the consolidated balance sheets on a gross basis. The Company has accounted for its derivative instruments as non-designated hedge instruments and uses the derivative instruments to economically manage risk. The Company’s derivative instruments include, but are not limited to, forward mortgage-backed securities (“MBS”) sales commitments, interest rate lock commitments (“IRLCs”), and other derivative instruments used to economically hedge fluctuations in MSRs’ fair value. The impact of the Company’s Derivative assets and liabilities is reported in Change in fair value of derivative assets, net on the consolidated statements of cash flows. The Company records derivative assets and liabilities and related cash margin on a gross basis, even when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty. Refer to “ Note 5 - Derivative Financial Instruments .” Forward mortgage-backed securities sale commitments that have not settled are considered derivative financial instruments and are recognized at fair value. These forward commitments will be fulfilled with loans not yet sold or securitized, new originations, and purchases. The forward commitments allow the Company to reduce the risk related to market price volatility. These derivatives are not designated as hedging instruments. Gain or loss on derivatives is recorded in Gain on loans, net in the consolidated statements of operations. Interest rate lock commitments represent an agreement to extend credit to a mortgage loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to funding. The loan commitment binds the Company (subject to the loan approval process) to fund the loan 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 the commitment through the loan funding date or expiration date. The 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. Change in fair value of IRLC derivatives is recorded in Gain on loans, net in the consolidated statements of operations. Forward MBS sale commitments or whole loan sale commitments and options on forward contracts are used to manage the interest rate and price risk. These derivatives are not designated as hedging instruments. Mortgage servicing rights hedges are accounted for at fair value. MSRs are subject to substantial interest rate risk as the mortgage notes underlying the servicing rights permit the borrowers to prepay the loans. Therefore, the value of MSRs generally tend to diminish in periods of declining interest rates, as prepayments increase and increase in periods of rising interest rates, as prepayments decrease. Although the level of interest rates is a key driver of prepayment activity, there are other factors that influence prepayments, including home prices, underwriting standards, and product characteristics. The Company manages the impact that the volatility associated with changes in fair value of its MSRs has on its earnings with a variety of derivative instruments. The amount and composition of derivatives used to economically hedge the value of MSRs will depend on the Company's exposure to loss of value on the MSRs, the expected cost of the derivatives, expected liquidity needs, and the expected increase to earnings generated by the origination of new loans resulting from the decline in interest rates. This serves as a business hedge of the MSRs, providing a benefit when increased borrower refinancing activity results in higher production volumes, which would partially offset declines in the value of the MSRs thereby reducing the need to use derivatives. The benefit of this business hedge depends on the decline in interest rates required to create an incentive for borrowers to refinance their mortgage loans and lower their interest rates; however, this benefit may not be realized under certain circumstances regardless of the change in interest rates. The change in fair value of MSR hedges is recorded in Change in fair value of mortgage servicing rights in the consolidated statements of operations. |
Goodwill | Goodwill represents the excess of the aggregate fair value of the consideration transferred in a business combination over the fair value of the assets acquired net of liabilities assumed. Goodwill is not amortized but rather subject to an annual impairment test at the reporting unit level. Management performs its annual goodwill impairment test on October 1, or more frequently if events or changes in circumstances indicate that the goodwill may be impaired. The Company performed an interim impairment test during the third quarter ended September 30, 2022, which resulted in a write off of the Goodwill balance. For additional information refer to Note 6 - Goodwill . |
GNMA Loans Eligible for Repurchase | Mortgage loans held for sale are accounted for using the fair value option. Therefore, mortgage loans originated and intended for sale in the secondary market are reflected at fair value. Changes in the fair value are recognized in current period earnings in Gain on loans, net, within the consolidated statements of operations. Refer to “ Note 3 - Mortgage Loans Held for Sale .” Mortgage servicing rights are recognized when loans are sold and the associated servicing rights are retained. The Company maintains one class of MSR asset and has elected the fair value option. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of MSRs include, but are not limited to, discount rates and prepayment speeds. Other assumptions such as delinquencies, and cost to service are also considered. The assumptions used in the valuation model are validated on a periodic basis. The Company obtains valuations from an independent third party on a quarterly basis and records an adjustment based on this third-party valuation. Changes in the fair value are recognized in Change in fair value of mortgage servicing rights, net on the Company's consolidated statements of operations. Purchased MSRs are recorded at the fair value at the date of purchase. |
Equity Method Investment | Equity method investments are business entities, which the Company does not have control of, but has the ability to exercise significant influence over operating and financial policies and are accounted for using the equity method. The Company evaluates its equity method investment for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the carrying value of the investment. If a loss in value has occurred that is deemed to be other-than-temporary, an impairment loss is recorded. The Company recognizes investments in equity method investment initially at cost and are adjusted for the Company’s share of earnings or losses, contributions or distributions. The Company held an equity method investment in Longbridge Financial, LLC (“Longbridge”), which was sold on October 3, 2022. For additional information refer to Note 21 - Shareholders’ Equity and Equity Method Investment |
Representation and Warranty Reserves | Representation and warranty reserves are maintained to account for expected losses related to loans the Company may be required to repurchase or the indemnity payments the Company may have to make to purchasers . The Company originates and sells residential mortgage loans in the secondary market. When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan, such as the ownership of the loan, the validity of the lien securing the loan, the nature and extent of underwriting standards applied, and the types of documentation being provided. These representations and warranties are generally enforceable over the life of the loan. If a defect in the origination process is identified, the Company may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. If there are no such defects, the Company has no liability to the purchaser for losses it may incur on such loans. The representation and warranty reserve reflects management's best estimate of probable lifetime loss based on borrower performance, repurchase demand behavior, and historical loan defect experience. The reserve considers both the estimate of expected losses on loans sold during the current accounting period as well as adjustments to the Company's previous estimate of expected losses on loans sold. Management monitors the adequacy of the overall reserve and adjusts the level of reserve, as necessary, after consideration of other qualitative factors. At the time a loan is sold, the representation and warranty reserve is recorded as a decrease in Gain on loans, net, on the consolidated statements of operations and recorded in Other liabilities on the Company's consolidated balance sheets. Changes to the reserve are recorded as an increase or decrease to Gain on loans, net, on the consolidated statements of operations. |
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 the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Gains and losses stemming from transfers reported as sales, if any, are included in Gain on loans, net within the Company’s consolidated statements of operations. In instances where a transfer of financial assets does not qualify for sale accounting, the assets remain on the Company’s consolidated balance sheets and continue to be reported and accounted for as if the transfer had not occurred. |
Gain on Loans, Net | Gain on loans, net includes the realized and unrealized gains and losses on mortgage loans, as well as the changes in fair value of all loan-related derivatives, including but not limited to, forward MBS sales commitments, IRLCs, freestanding loan-related derivative instruments and the representation and warranty reserve. |
Loan Fee Income, Interest Income, Loan Servicing Fees, and Other Income | Loan fee income consists of fee income earned on all loan originations, including amounts earned related to application and underwriting fees. Fees associated with the origination and acquisition of mortgage loans are recognized when earned, which is on the date the loan is originated or acquired. Interest income is recognized on loans held for sale for the period from loan funding to sale, which is typically less than 30 days. Loans are placed on non-accrual status and the related accrued interests is reserved when any portion of the principal or interest is 90 days past due or earlier if factors indicate that the ultimate collectability of the principal or interest is not probable. Interest received for 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. Prior to entering into a subservicing agreement with ServiceMac, the Company had a fiduciary responsibility for servicing accounts related to customer escrow funds and custodial funds. The Company receives certain benefits from these deposits, as allowable under federal and state laws and regulations, or as agreed to under certain subservicing agreements. Interest income is recorded as earned and included in the consolidated statements of operations within Interest income. Loan servicing fees involve the servicing of residential mortgage loans on behalf of an investor. Total Loan servicing fees include servicing and other ancillary servicing revenue 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 of 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 (reduction of principal balance). Loan servicing fees are receivable only out of interest collected from mortgagors and are recorded as income when earned, which is generally upon collection. Late charges and other miscellaneous fees collected from mortgagors are also recorded as income when collected. Other income consists of income that is dissimilar in nature to revenues the Company earns from its ongoing central operations. |
Equity-Based Compensation | Equity-based compensation consists of stock options, restricted stock units, and performance stock units. Expense is recognized at the fair value of equity awards on the date of grant within Compensation and benefits expense in the Company’s consolidated statements of operations on a straight-line basis over the requisite service period. Estimates of future forfeitures are made at the grant date and revised, if necessary, in later periods if subsequent information indicates actual forfeitures will differ from those estimates. Refer to “ Note 19 - Equity-based Compensation ”. |
Debt Issuance Costs | Debt issuance costs are recorded for the Company’s warehouse lines of credit and other debt. Debt issuance costs are amortized on a straight-line basis, which approximates the effective interest method, during the revolving period of the warehouse facilities or during the total term of the term debt agreement. Amortization of debt issuance costs is recorded in the consolidated statements of operations within Interest expense. |
Income Taxes | Income taxes are accounted for under the asset and liability method. Deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences, using the tax rates expected to be in effect when the temporary differences reverse. Temporary differences are the difference between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognized tax benefits from uncertain income tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authority based on the technical merits of the position. An uncertain income tax position that meets the “more likely than not” recognition threshold is then measured to determine the amount of the benefit to recognize. |
Recently Adopted Accounting Standards and Accounting Standards Issued but Not Yet Adopted | Recently Adopted Accounting Standards ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxe s, eliminates particular exceptions related to the method for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. This amendment is effective for annual periods beginning after December 15, 2021. The Company adopted ASU 2019-12 as of January 1, 2022. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) , Facilitation of the Effects of Reference Rate Reform on Financial Reporting, subject to meeting certain criteria, provides optional expedients and exceptions related to applying U.S. GAAP to certain contract modifications and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another rate that is expected to be discontinued. This guidance was effective upon issuance and allows application to contract changes as early as January 1, 2020. Subsequently, in 2021, the FASB issued ASU 2021-01, Reference Rate Reform , to further clarify and expand certain aspects of Topic 848. The Company adopted ASU 2020-04 and ASU 2021-01 in September 2022. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Issued but Not Yet Adopted |
Fair Value Measurements | The Company uses fair value measurements to record certain assets and liabilities at fair value on a recurring basis, such as MSRs, derivatives, MLHS and Early buyout loans (“EBOs”). The Company has elected fair value accounting for MLHS and MSRs to more closely align the Company’s accounting with its interest rate risk strategies without having to apply the operational complexities of hedge accounting. The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level Input: Input Definition: Level 1 Unadjusted, quoted prices in active markets for identical assets or liabilities. Level 2 Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company. These may include quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk and others. Level 3 Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity), unobservable inputs may be used. Unobservable inputs reflect the Company's own assumptions about the factors that market participants would use in pricing the asset or liability and are based on the best information available in the circumstances. An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. While the Company believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methods or assumptions to estimate the fair value of certain financial statement items could result in a different estimate of fair value at the reporting date. Those estimated values may differ significantly from the values that would have been used had a readily available market for such items existed, or had such items been liquidated, and those differences could be material to the financial statements. Fair Value of Certain Assets and Liabilities The following describes the methods used in estimating the fair values of certain assets and liabilities: Mortgage loans held for sale. The majority of the Company's MLHS at fair value are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2. A smaller portion of the Company's MLHS consist of loans repurchased from the GSEs that have subsequently been deemed to be non-saleable to GSEs and Ginnie Mae when certain representations and warranties are breached. These loans, however, are saleable to other entities and are classified on the consolidated balance sheets as Mortgage loans held for sale. These repurchased loans are considered Level 3 and are valued based on recent sales prices of similar loans. Interest rate lock commitments. The Company estimates the fair value of IRLCs based on the value of the underlying mortgage loan, quoted MBS prices and estimates of the fair value of the MSRs and the probability that the mortgage loan will fund within the terms of the IRLC. The average pull-through rate for IRLCs was 77.5% and 86.1% as of December 31, 2022 and 2021, respectively. Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3. Forward sales and purchase commitments. The Company treats forward mortgage-backed securities purchase and sale commitments that have not settled as derivatives and recognizes them at fair value. These forward commitments will be fulfilled with loans not yet sold or securitized and new originations and purchases. The forward commitments allow the Company to reduce the risk related to market price volatility. The Company estimates the fair value of forward commitments based on quoted MBS prices. These derivatives are classified as Level 2. Interest rate swap futures contracts. The Company uses options on swap contracts to offset changes in the fair value of MSRs. The Company estimates the fair value of these MSR-related derivatives using quoted prices for similar instruments. These derivatives are classified as Level 2. Treasury futures purchase contracts. The Company uses Treasury futures contracts to offset changes in the fair value of MSRs. The Company estimates fair value of these MSR-related derivatives using quoted market prices. These derivatives are classified as Level 1. Fair Value of Other Financial Instruments |
Mortgage Loans Held for Sale (T
Mortgage Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Mortgage Loans Held For Sale at Fair Value, By Type, and the Reconciliation of the Changes in Mortgage Loans Held For Sale to the Amounts Presented On the Condensed Consolidated Statements of Cash Flows | The following presents MLHS at fair value, by type: December 31, 2022 Unpaid Principal Fair Value Adjustment Total Fair Value (dollars in thousands) Conventional (a) $ 425,160 $ (31,639) $ 393,521 Government (b) 254,800 (5,664) 249,136 Reverse (c) 355 (19) 336 Total $ 680,315 $ (37,322) $ 642,993 The following presents a reconciliation of the changes in MLHS to the amounts presented on the consolidated statements of cash flows: Years Ended December 31, 2022 2021 (dollars in thousands) Fair value at beginning of period $ 5,107,161 $ 3,301,694 Mortgage loans originated and purchased (a) 28,622,069 100,217,789 Proceeds from sales and payments received (a) (32,276,858) (97,870,548) Change in fair value (138,530) (41,824) Loss on sale (a) (670,849) (499,950) Fair value at end of period $ 642,993 $ 5,107,161 (a) This line as presented on the consolidated statements of cash flows excludes originated mortgage servicing rights and MSR hedging. The following presents principal categories of Accounts receivable, net: December 31, 2022 2021 (dollars in thousands) Servicing receivable-general $ 14,943 $ 359 Pair off receivable 619 3,738 Servicing sale receivable 29,503 14,364 Servicing advance receivable 77,257 71,884 Servicing advance reserve (3,355) (4,207) Agency receivable 595 20,184 Income tax receivable 1,902 11,181 Warehouse receivable — 1,934 Interest on servicing deposits 302 464 Other 2,925 9,191 Total $ 124,691 $ 129,092 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Analysis of the Changes in Capitalized Mortgage Servicing Rights and the Company's Total Capitalized Mortgage Servicing Portfolio | The following presents an analysis of the changes in capitalized MSRs: Years Ended December 31, 2022 2021 (dollars in thousands) Balance at beginning of period $ 1,525,103 $ 748,457 MSRs originated 475,469 1,052,012 MSRs purchased 24,738 43,056 MSRs sold (849,729) (238,265) Changes in valuation model inputs 358,782 227,401 Change due to cash payoffs and principal amortization (131,821) (307,558) Balance at end of period $ 1,402,542 $ 1,525,103 The following presents the Company’s total capitalized mortgage servicing portfolio (based on the unpaid principal balance (“UPB”) of the underlying mortgage loans): December 31, 2022 2021 (dollars in thousands) Ginnie Mae $ 4,357,853 $ 5,602,582 Fannie Mae 47,198,689 70,174,987 Freddie Mac 37,082,471 52,547,588 Other 29,620 34,417 Total $ 88,668,633 $ 128,359,574 |
Key Weighted Average Assumptions Used in Determining the Fair Value of the Company’s MSRs | The following presents the key weighted average assumptions used in determining the fair value of the Company’s MSRs: December 31, 2022 2021 Discount rate 11.23 % 8.68 % Weighted average prepayment speeds 5.44 % 8.30 % |
Analysis of Change in Discount Rate and Prepayment Speeds on MSRs | The following presents the impact on the fair value of the Company’s MSR portfolio when applying the following hypothetical data points: Discount Rate Prepayment Speeds 100 BPS 200 BPS 10% Adverse 20% Adverse (dollars in thousands) December 31, 2022 $ (66,658) $ (127,263) $ (36,353) $ (70,814) December 31, 2021 $ (66,885) $ (128,172) $ (56,278) $ (108,621) |
Information Related To Loans Serviced For Which the Company Has Continuing Involvement through Servicing Agreements | The following presents information related to loans serviced: Years Ended December 31, 2022 2021 (dollars in thousands) Total unpaid principal balance $ 89,280,085 $ 133,889,085 Loans 30-89 days delinquent 824,348 656,012 Loans delinquent 90 or more days or in foreclosure 555,293 777,650 |
Components of Loan Servicing Fees | The following presents components of Loan servicing fees as reported in the Company’s consolidated statements of operations: Years Ended December 31, 2022 2021 (dollars in thousands) Contractual servicing fees $ 266,050 $ 312,181 Late fees 2,394 5,070 Other (3,169) 14,131 Total $ 265,275 $ 331,382 |
Components of Change in Fair Value of MSRs | The following presents the components of Change in fair value of MSRs: Years Ended December 31, 2022 2021 (dollars in thousands) Realization of cash flows $ (131,821) $ (307,558) Valuation inputs and assumptions 358,782 227,401 Economic hedging results (242,487) (33,699) (Loss) gain on MSR sales (82,163) 37,025 Change in fair value of MSRs $ (97,689) $ (76,831) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Notional Balances and Recorded Gain (Loss) for Derivative Instruments | The following presents the outstanding notional amounts and fair values of derivative instruments not designated as hedging instruments: December 31, 2022 Notional Derivative Derivative (dollars in thousands) Forward sale contracts $ 819,900 $ 6,107 $ 1,200 Interest rate lock commitments 598,970 2,231 2,504 Forward purchase contracts 61,300 — 400 Treasury futures purchase contracts 897,500 — — Margin 17,273 6 Total $ 25,611 $ 4,110 December 31, 2021 Notional Value Derivative Asset Derivative (dollars in thousands) Forward sale contracts $ 7,819,802 $ 6,969 $ 8,242 Interest rate lock commitments 6,068,763 29,887 2,843 Forward purchase contracts 1,521,000 3,031 281 Interest rate swap futures contracts 1,540,000 111 5,662 Treasury futures purchase contracts 4,720,000 — — Margin 44,387 9,708 Total $ 84,385 $ 26,736 The following presents the recorded gain/(loss) on derivative financial instruments: Years Ended December 31, 2022 2021 (dollars in thousands) Forward sale contracts $ 5,956 $ 58,530 Interest rate lock commitments (26,880) (235,988) Forward purchase contracts (2,926) (1,669) Interest rate swap and Treasury futures purchase contracts (196,453) (20,632) |
Summary of Derivative Assets and Liabilities and Related Netting Amounts | The following presents a summary of derivative assets and liabilities and related netting amounts: December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position (1) Gross Amount of Assets (Liabilities) Recognized Financial Instruments Cash Collateral Net Amount (dollars in thousands) Derivatives subject to master netting agreements: Assets: Forward sale contracts $ 6,107 $ (1,062) $ (3,790) $ 1,255 Liabilities: Forward sale contracts (1,200) 1,062 138 — Forward purchase contracts (400) — 400 — Derivatives not subject to master netting agreements: Assets: Interest rate lock commitments 2,231 — — 2,231 Liabilities: Interest rate lock commitments (2,504) — — (2,504) Total derivatives Assets $ 8,338 $ (1,062) $ (3,790) $ 3,486 Liabilities $ (4,104) $ 1,062 $ 538 $ (2,504) December 31, 2021 Gross Amounts Not Offset in the Statement of Financial Position (1) Gross Amount of Assets (Liabilities) Recognized Financial Instruments Cash Collateral Net Amount (dollars in thousands) Derivatives subject to master netting agreements: Assets: Forward sales contracts $ 6,969 $ (4,886) $ (1,272) $ 811 Forward purchase contracts 3,031 (258) (2,627) 146 Interest rate swap futures contracts 111 (111) — — Liabilities: Forward sale contracts (8,242) 4,886 1,252 (2,104) Forward purchase contracts (281) 258 — (23) Interest rate swap futures contracts (5,662) 111 5,551 — Derivatives not subject to master netting agreements: Assets: Interest rate lock commitments 29,887 — — 29,887 Liabilities: Interest rate lock commitments (2,843) — — (2,843) Total derivatives Assets $ 39,998 $ (5,255) $ (3,899) $ 30,844 Liabilities $ (17,028) $ 5,255 $ 6,803 $ (4,970) (1) Amounts disclosed for collateral received from or posted to the same counterparty includes cash up to and not exceeding the net amount of the derivative asset or liability presented in the balance sheet. The fair value of the total collateral received from or posted to the same counterparty may exceed the amounts presented. The amounts of collateral received from or posted to counterparty are presented as margin and included as a component of either Derivative assets or Other liabilities in the Balance Sheet. |
Other Assets And Other Liabil_2
Other Assets And Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following presents the principal categories of Other assets: December 31, 2022 2021 (dollars in thousands) Prepaid expenses and other $ 15,215 $ 23,418 Right of use lease asset 8,269 12,039 Foreclosure and real estate owned 12,682 7,771 Total $ 36,166 $ 43,228 |
Schedule of Other Liabilities | The following presents the principal categories of Other liabilities: December 31, 2022 2021 (dollars in thousands) Escrow liability $ 5,088 $ 19,920 Repurchase reserves 26,605 24,577 Right of use lease liabilities, net 10,600 15,562 Unclaimed property 14,811 15,641 Other 732 888 Total $ 57,836 $ 76,588 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, net | The following presents the principal categories of Property and equipment, net: December 31, 2022 2021 (dollars in thousands) Computer and telephone $ 18,569 $ 31,187 Office furniture and equipment 2,281 3,027 Leasehold improvements 5,464 5,537 Work-in-process for internal use software 1,772 421 Gross property and equipment 28,086 40,172 Less accumulated depreciation (16,426) (18,280) Total $ 11,660 $ 21,892 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Principal Categories of Accounts Receivable, Net | The following presents MLHS at fair value, by type: December 31, 2022 Unpaid Principal Fair Value Adjustment Total Fair Value (dollars in thousands) Conventional (a) $ 425,160 $ (31,639) $ 393,521 Government (b) 254,800 (5,664) 249,136 Reverse (c) 355 (19) 336 Total $ 680,315 $ (37,322) $ 642,993 The following presents a reconciliation of the changes in MLHS to the amounts presented on the consolidated statements of cash flows: Years Ended December 31, 2022 2021 (dollars in thousands) Fair value at beginning of period $ 5,107,161 $ 3,301,694 Mortgage loans originated and purchased (a) 28,622,069 100,217,789 Proceeds from sales and payments received (a) (32,276,858) (97,870,548) Change in fair value (138,530) (41,824) Loss on sale (a) (670,849) (499,950) Fair value at end of period $ 642,993 $ 5,107,161 (a) This line as presented on the consolidated statements of cash flows excludes originated mortgage servicing rights and MSR hedging. The following presents principal categories of Accounts receivable, net: December 31, 2022 2021 (dollars in thousands) Servicing receivable-general $ 14,943 $ 359 Pair off receivable 619 3,738 Servicing sale receivable 29,503 14,364 Servicing advance receivable 77,257 71,884 Servicing advance reserve (3,355) (4,207) Agency receivable 595 20,184 Income tax receivable 1,902 11,181 Warehouse receivable — 1,934 Interest on servicing deposits 302 464 Other 2,925 9,191 Total $ 124,691 $ 129,092 |
Changes to the Servicing Advance Reserve | The following presents changes to the servicing advance reserve: Years Ended December 31, 2022 2021 (dollars in thousands) Servicing advance reserve at beginning of period $ (4,207) $ (8,380) Additions (2,620) (1,975) Charge-offs 3,472 6,148 Servicing advance reserve at end of period $ (3,355) $ (4,207) |
Warehouse Lines of Credit (Tabl
Warehouse Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Amounts Outstanding and Maturity Dates under the Company’s Various Mortgage Funding Arrangements | The following presents the amounts outstanding and maturity dates under the Company’s various mortgage funding arrangements: Maturity Date December 31, 2022 (dollars in thousands) $450 million Warehouse Facility (a) August 2023 $ 149,513 $200 million Warehouse Facility (b) September 2023 41,309 $200 million Warehouse Facility (c) September 2023 32,011 $200 million Warehouse Facility (d) March 2023 45,284 $50 million Warehouse Facility (e) March 2023 41,928 $1,200 million Warehouse Facility (f) May 2024 113,136 $88.5 million Warehouse Facility Evergreen 8,050 $400 million Warehouse Facility (g) Evergreen 65,250 Gestation Warehouse Facility Evergreen — Total $ 496,481 (a) Subsequent to December 31, 2021, the maturity of this Warehouse Facility has been extended from September 2022 to August 2023. (b) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $200 million. The maturity of this Warehouse Facility has been extended from September 2022 to September 2023. (c) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $200 million. The maturity of this Warehouse Facility has been extended from September 2022 to September 2023. (d) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $200 million. The maturity of this Warehouse Facility has been extended from March 2022 to March 2023. In February 2023, the maturity was extended to April 2023. Refer to Note 27 – Subsequent Events (e) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $500 million to $250 million as of June 30, 2022 and $50 million as of September 30, 2022. (f) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $1,500 million to $1,200 million. The maturity of this Warehouse Facility has been extended from May 2023 to May 2024. (g) Subsequent to December 31, 2021, the capacity of this Warehouse Facility has been reduced from $550 million to $400 million. Maturity Date(h) Balance at December 31, 2021 (dollars in thousands) $1,200 million Warehouse Facility (i) February 2022 $ 604,421 $500 million Warehouse Facility (j) March 2022 335,509 $500 million Warehouse Facility March 2022 381,087 $1,000 million Warehouse Facility (k) August 2022 716,802 $450 million Warehouse Facility September 2022 277,060 $500 million Warehouse Facility September 2022 339,521 $500 million Warehouse Facility September 2022 375,381 $500 million Warehouse Facility March 2023 309,898 $1,500 million Warehouse Facility May 2023 731,132 $88.5 million Warehouse Facility Evergreen 11,409 $550 million Warehouse Facility Evergreen 363,959 Gestation Warehouse Facility Evergreen 179,360 Early Funding (l) 93,119 Total $ 4,718,658 (h) Maturity Dates in this table are as of December 31, 2021. The Maturity Dates as of December 31, 2022 are reflected in the table above. (i) The warehouse facility was terminated on October 7, 2022. (j) The warehouse facility was terminated on September 23, 2022. (k) The warehouse facility expired in August 2022. |
Term Debt and Other Borrowing_2
Term Debt and Other Borrowings, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Term Debt and Other Borrowings | The following presents the Company’s term debt and other borrowings, net: December 31, Maturity Date Collateral 2022 2021 (dollars in thousands) $1.0 billion MSR Facility May 2025 MSRs $ 450,000 $ 685,000 $550 million Senior Notes (a) February 2026 Unsecured 500,000 550,000 $85 million Servicing Advance Facility (b), (c) May 2023 Servicing advances — 3,250 $35 million Operating Line of Credit (c) May 2023 Mortgage loans 1,000 1,000 Gross 951,000 1,239,250 Debt issuance costs (8,917) (12,726) Total $ 942,083 $ 1,226,524 (a) The Company repurchased and retired $50 million of outstanding Senior Notes during the year ended December 31, 2022. (b) Effective June 9, 2022, the capacity of the Servicing Advance Facility was reduced from $90 million to $85 million. (c) Subsequent to December 31, 2021, the maturity was extended from May 2022 to May 2023. |
Debt Maturity Schedule | The following presents the Company’s debt maturity schedule for the operating line of credit, MSR Facility and the Senior Notes: (dollars in thousands) 2023 $ 1,000 2024 300,000 2025 150,000 2026 500,000 2027 and thereafter — Total $ 951,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information Related to Leases | upplemental cash flow information related to leases: Years Ended December 31, 2022 2021 (dollars in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 5,790 $ 6,521 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 881 |
Schedule of Supplemental Balance Sheet Information Related to Leases | upplemental balance sheet information related to leases: Years Ended December 31, 2022 2021 (dollars in thousands) Operating leases: Right-of-use assets $ 8,269 $ 12,039 Right-of-use liabilities $ 10,600 $ 15,562 Weighted average remaining lease term in years: 3.95 4.21 Weighted average discount rate: 5.22 % 5.08 % |
Schedule of Maturities of Lease Liabilities | maturities of lease liabilities: (dollars in thousands) 2023 $ 3,515 2024 3,294 2025 2,146 2026 781 2027 804 Thereafter 1,251 Total lease payments 11,791 Less: imputed interest (1,191) Total $ 10,600 |
Representation and Warranty R_2
Representation and Warranty Reserve (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Mortgage Banking [Abstract] | |
Mortgage Loans Repurchase Reserve, Activity | The following presents the activity of the outstanding repurchase reserve: Years Ended December 31, 2022 2021 (dollars in thousands) Repurchase reserve, at beginning of period $ 24,577 $ 18,080 Additions 52,799 12,147 Charge-offs (50,771) (5,650) Repurchase reserves, at end of period $ 26,605 $ 24,577 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Major Categories of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following presents the major categories of assets and liabilities measured at fair value on a recurring basis: December 31, 2022 Level 1 Level 2 Level 3 Total (dollars in thousands) Assets: Mortgage loans held for sale $ — $ 629,108 $ 13,885 $ 642,993 Interest rate lock commitments — — 2,231 2,231 Forward sale contracts — 6,107 — 6,107 Mortgage servicing rights — — 1,402,542 1,402,542 Total $ — $ 635,215 $ 1,418,658 $ 2,053,873 Liabilities: Interest rate lock commitments $ — $ — $ 2,504 $ 2,504 Forward sale contracts — 1,200 — 1,200 Forward purchase contracts — 400 — 400 Total $ — $ 1,600 $ 2,504 $ 4,104 December 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Assets: Mortgage loans held for sale $ — $ 5,086,943 $ 20,218 $ 5,107,161 Interest rate lock commitments — — 29,887 29,887 Forward sales contracts — 6,969 — 6,969 Forward purchase contracts — 3,031 — 3,031 Interest rate swap futures contracts — 111 — 111 Mortgage servicing rights — — 1,525,103 1,525,103 Total $ — $ 5,097,054 $ 1,575,208 $ 6,672,262 Liabilities: Interest rate lock commitments $ — $ — $ 2,843 $ 2,843 Forward sales contracts — 8,242 — 8,242 Forward purchase contracts — 281 — 281 Interest rate swap futures contracts — 5,662 — 5,662 Total $ — $ 14,185 $ 2,843 $ 17,028 |
Reconciliation of Level 3 Assets Measured At Fair Value on a Recurring Basis | The following presents a reconciliation of Level 3 assets measured at fair value on a recurring basis: Year Ended December 31, 2022 MSRs IRLC-Asset MLHS IRLC-Liability (dollars in thousands) Balance at beginning of period $ 1,525,103 $ 29,887 $ 20,218 $ 2,843 Purchases, sales, issuances, contributions, and settlements (349,522) — (5,621) — Change in fair value 226,961 (27,656) 468 (339) Transfers out (a) — — (1,180) — Balance at end of period $ 1,402,542 $ 2,231 $ 13,885 $ 2,504 Year Ended December 31, 2021 MSRs IRLC-Asset MLHS IRLC-Liability (dollars in thousands) Balance at beginning of period $ 748,457 $ 257,785 $ 44,374 $ — Purchases, sales, issuances, contributions, and settlements 856,802 — (26,353) 2,843 Change in fair value (80,156) (227,898) (633) — Transfers in (a) — — 2,830 — Balance at end of period $ 1,525,103 $ 29,887 $ 20,218 $ 2,843 (a) Transfers in (out) represents transfers between Levels 2 and 3, and reclassifications to Real estate owned (“REO”), foreclosure or claims. |
Fair Value and UPB of Mortgage Loans Held for Sale for which the Company has elected the Fair Value Option | The following presents the fair value and UPB of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects its expected future economic performance: Fair Value Principal Amount Due Upon Maturity Difference (a) (dollars in thousands) December 31, 2022 $ 642,993 $ 680,315 $ (37,322) December 31, 2021 $ 5,107,161 $ 5,005,069 $ 102,092 (a) Represents the amount of (losses) gains related to changes in fair value of items accounted for using the fair value option included in Gain on loans, net within the consolidated statements of operations. |
Summary of the Key Unobservable Inputs Used In the Valuation of the Level 3 Assets | The following is a summary of the key unobservable inputs used in the valuation of the Level 3 assets: Year Ended December 31, 2022 Assets: Key Input Range Weighted Average Mortgage servicing rights Discount rate 9.6% - 14.0% 11.2% Prepayment speeds 4.6% - 8.2% 5.4% Interest rate lock commitments Pull-through rate 21.0% - 100% 77.5% Mortgage loans held for sale Investor pricing 65.0% - 103.6% 93.3% Year Ended December 31, 2021 Asset Key Input Range Weighted Average Mortgage servicing rights Discount rate 8.6% - 12.2% 8.7% Prepayment speeds 6.9% - 11.6% 8.3% Interest rate lock commitments Pull-through rate 49.8% - 100.0% 86.1% Mortgage loans held for sale Investor pricing 70.0% - 104.1% 91.3% |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Reserve | The following is a summary of the Company’s restructuring reserve: Severance and Employee-Related Costs Office Equipment Total (dollars in thousands) Balance as of January 1, 2022 $ — $ — $ — Restructuring charges 14,182 2,302 16,484 Payments (14,182) — (14,182) Non-cash impairment of office equipment — (2,302) (2,302) Balance as of December 31, 2022 $ — $ — $ — |
Equity-based Compensation (Tabl
Equity-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of the Company's Restricted Stock Units Activity | The following presents the summary of the Company’s RSU activity: Year ended December 31, 2022 Units Weighted-Average Grant Date Fair Value Outstanding at beginning of period 367,991 $ 10.18 Granted 233,550 3.85 Vested (209,093) 10.75 Outstanding at end of period 392,448 $ 6.12 |
Schedule of the Company's PSU Activity | The following presents the summary of the Company’s PSU activity: Year ended December 31, 2022 Units Weighted-Average Grant Date Fair Value Outstanding at beginning of period 238,347 $ 9.44 Granted 131,924 3.79 Outstanding at end of period 370,271 $ 7.43 |
Activity of the Company’s Stock Options | The following presents the summary of the Company’s stock option activity under the 2021 Plan: Year ended December 31, 2022 Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life (Years) Weighted Average Grant Date Fair Value Outstanding at beginning of period 11,751,031 $ 4.45 6.87 $ 8.38 Granted 337,043 1.81 4.09 9.79 Exercised (294,068) 1.86 1.52 9.77 Forfeited (661,130) 1.85 0.14 9.73 Expired (198,983) 1.79 1.00 9.76 Outstanding at end of period 10,933,893 $ 4.64 4.70 $ 8.27 |
Summary of the Company’s Non-Vested Activity | The following presents the summary of the Company’s non-vested activity under the 2021 Plan : Year ended December 31, 2022 Number of Shares Weighted Average Grant Date Fair Value Non-vested at beginning of period 9,627,033 $ 8.19 Granted 337,043 9.79 Vested (243,282) 9.20 Exercised (294,068) 9.77 Forfeited (661,130) 9.73 Expired (198,983) 9.76 Non-vested at end of period 8,566,613 $ 8.12 |
Summary of Assumptions used in the Black-Scholes Option Valuation Model | The following presents assumptions used in the Black-Scholes option valuation model to determine the weighted-average fair value per stock option granted: Years Ended December 31, 2022 2021 Expected life (in years) 8.3 8.2 Risk-free interest rate 0-3.0% 0.6%-3.0% Expected volatility 24.9% 24.9% Dividend yield — — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following presents the calculation of the basic and diluted (loss) earnings per share: Years Ended December 31, 2022 2021 (dollars in thousands, except per share amounts ) Net (loss) income $ (163,454) $ 166,272 Numerator: Net (loss) income attributable to common shareholders $ (163,454) $ 166,272 Net (loss) income attributable to Home Point - diluted $ (163,454) $ 166,272 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 138,638 139,198 Dilutive effect of common stock equivalents — 798 Weighted average shares of common stock outstanding - diluted 138,638 139,996 (Loss) earnings per share of common stock outstanding - basic $ (1.18) $ 1.19 (Loss) earnings per share of common stock outstanding - diluted $ (1.18) $ 1.19 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The following presents the components of Income tax benefit (expense): Year Ended December 31, 2022 Federal State Total (dollars in thousands) Current $ (1,551) $ (1,700) $ (3,251) Deferred 39,386 5,779 45,165 Total income tax benefit $ 37,835 $ 4,079 $ 41,914 Year Ended December 31, 2021 Federal State Total (dollars in thousands) Current $ 64 $ (2,311) $ (2,247) Deferred (43,039) (12,712) (55,751) Total income tax expense $ (42,975) $ (15,023) $ (57,998) |
Schedule of Effective Income Tax Rate Reconciliation | The following presents a reconciliation of the Income tax benefit (expense) recorded on the Company’s consolidated statements of operations to the expected statutory federal corporate income tax rates: Years Ended December 31, 2022 2021 (dollars in thousands) Loss (income) before income taxes $ (179,090) $ 208,897 Statutory federal income tax (benefit) expense (21%) (37,609) 43,868 State income tax expense, net of federal tax (6,914) 10,116 Impact of equity investments (5,518) 3,679 Impact of tax rate change 3,199 (494) HPMAC investment write Off 2,318 — Impairment of goodwill 1,879 — Change in valuation allowance — 1,812 Other 731 (983) Total income tax (benefit) expense $ (41,914) $ 57,998 Effective tax rate 23.4 % 27.8 % |
Schedule of Net Deferred Tax Assets (Liabilities) | The following presents the components of the Company’s net deferred tax assets (liabilities): December 31, 2022 2021 (dollars in thousands) Deferred tax asset Federal NOL carryforward $ 93,151 $ 101,800 State NOL carryforward 23,603 23,825 Rep. & Warranty 6,715 6,120 ROU lease deferred asset 2,775 4,000 Other 6,249 13,281 Total deferred tax asset $ 132,493 $ 149,026 Deferred tax liability MSR (308,158) (348,417) Derivatives — (6,734) Investment in Longbridge — (11,546) ROU lease deferred liability (2,803) (3,900) Other (3,052) (5,785) Total deferred tax liability $ (314,013) $ (376,382) Valuation Allowance (2,340) (2,396) Net deferred tax liability $ (183,860) $ (229,752) |
Reconciliation of Uncertain Tax Positions | The following presents a reconciliation of the beginning and ending amounts of uncertain tax positions: Years Ended December 31, 2022 2021 (dollars in thousands) Balance at beginning of period $ 743 $ — Increases related to positions taken during prior years — 743 Increases related to positions taken during the current year 92 — Decreases related to positions settled with tax authorities — — Decreases due to a lapse of applicable statute of limitations — — Balance at end of period $ 835 $ 743 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Key Operating Data for Business Segments | The following presents the key operating data for the Company’s business segments: Year Ended December 31, 2022 Origination Servicing Segments Total All Other Total Reconciliation Item (a) Total Consolidated (dollars in thousands) Revenue: Gain on loans, net $ 47,105 $ — $ 47,105 $ — $ 47,105 — $ 47,105 Loan fee income 46,029 — 46,029 — 46,029 — 46,029 Loan servicing fees — 265,275 265,275 — 265,275 — 265,275 Change in fair value of mortgage servicing rights — (97,689) (97,689) — (97,689) — (97,689) Interest income (expense), net 21,375 12,172 33,547 (54,411) (20,864) — (20,864) Other income (expense) 111 — 111 (10,598) (10,487) 26,278 15,791 Total $ 114,620 $ 179,758 $ 294,378 $ (65,009) $ 229,369 $ 26,278 $ 255,647 Contribution (loss) margin $ (106,884) $ 121,765 $ 14,881 $ (220,249) $ (205,368) Year Ended December 31, 2021 Origination Servicing Segments Total All Other Total Reconciliation Item (a) Total Consolidated (dollars in thousands) Revenue: Gain on loans, net $ 585,762 $ — $ 585,762 $ — $ 585,762 $ — $ 585,762 Loan fee income 150,921 — 150,921 — 150,921 — 150,921 Loan servicing fees 8 331,374 331,382 — 331,382 — 331,382 Change in fair value of mortgage servicing rights — (76,831) (76,831) — (76,831) — (76,831) Interest income (expense), net 13,897 1,931 15,828 (48,741) (32,913) — (32,913) Other income — 227 227 18,341 18,568 (15,373) 3,195 Total $ 750,588 $ 256,701 $ 1,007,289 $ (30,400) $ 976,889 $ (15,373) $ 961,516 Contribution margin $ 237,055 $ 185,824 $ 422,879 $ (198,609) $ 224,270 (a) The Company includes the results from its equity method investment in the All Other. Therefore, the loss (income) is removed to reconcile to Total revenue, net on the consolidated statements of operations. |
Reconciliation of Segment Contribution Margin to Consolidated U.S. GAAP Income (Loss) Before Income Tax | The following presents a reconciliation of contribution (loss) margin to consolidated U.S. GAAP (Loss) income before income tax: Years Ended December 31, 2022 2021 (dollars in thousands) (Loss) income before income tax $ (179,090) $ 208,897 (Loss) income from equity method investment (26,278) 15,373 Contribution (loss) margin $ (205,368) $ 224,270 |
Concentrations of Risk (Tables)
Concentrations of Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration of Risk, Credit Risk | The Company originated or purchased loans in 50 states and the District of Columbia, with significant activity (approximately 5% or greater of total originations) in the following states: Percentage of Origination 2022 State: California 26.5 % Texas 7.5 % Florida 7.1 % 2021 State: California 31.8 % Florida 7.4 % New Jersey 5.4 % ServiceMac subservices all mortgage loans underlying the Company’s MSRs in 50 states and the District of Columbia, with significant activity (approximately 5% or greater of total servicing) in the following states: Percentage of Servicing Unpaid Principal Balance 2022 State: California 20.4 % Texas 8.3 % Florida 6.3 % 2021 State: California 29.1 % Florida 5.6 % Texas 7.4 % |
Schedule of Originated Financing Receivables Sold or Transferred | The following presents newly originated loans that the Company sold to investors or transferred into GNMA securitization pools: Years Ended December 31, 2022 2021 (dollars in thousands) Percentage (dollars in thousands) Percentage GNMA $ 7,095,893 22.3 % $ 13,089,283 13.9 % FNMA 11,632,784 36.5 % 42,721,394 45.3 % FHLMC 11,858,369 37.2 % 35,824,414 38.0 % Other 1,300,224 4.1 % 2,667,113 2.8 % $ 31,887,270 100 % $ 94,302,204 100 % |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following presents principal categories of the related party transactions recorded in the consolidated statements of operations. Years Ended December 31, 2022 2021 (dollars in thousands) Loan expense $ 9,134 $ 14,590 Loan servicing expense 1,911 1,014 General and administrative 9,450 5,268 Other expenses (a) 5,793 9,630 Other 208 10 Total $ 26,496 $ 30,512 |
Organization and Operations (De
Organization and Operations (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - $ / shares | 12 Months Ended | |
Feb. 02, 2021 | Dec. 31, 2022 | |
Minimum | ||
Accounting Standards Update and Change in Accounting Principle [Table] | ||
Property and equipment, estimated useful lives | 3 years | |
Maximum | ||
Accounting Standards Update and Change in Accounting Principle [Table] | ||
Property and equipment, estimated useful lives | 7 years | |
Trident Stockholders | ||
Accounting Standards Update and Change in Accounting Principle [Table] | ||
Percentage of voting power owned | 92% | |
Public Stock Offering | ||
Accounting Standards Update and Change in Accounting Principle [Table] | ||
Shares sold (in shares) | 7,250,000 | |
Offering price (in dollars per share) | $ 13 |
Mortgage Loans Held for Sale -
Mortgage Loans Held for Sale - Mortgage Loans Held For Sale at Fair Value, By Type (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid Principal | $ 680,315 | $ 5,005,953 | |
Fair Value Adjustment | (37,322) | 101,208 | |
Total Fair Value | 642,993 | 5,107,161 | $ 3,301,694 |
Conventional | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid Principal | 425,160 | 4,206,099 | |
Fair Value Adjustment | (31,639) | 79,389 | |
Total Fair Value | 393,521 | 4,285,488 | |
Government | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid Principal | 254,800 | 799,579 | |
Fair Value Adjustment | (5,664) | 21,902 | |
Total Fair Value | 249,136 | 821,481 | |
Reverse | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid Principal | 355 | 275 | |
Fair Value Adjustment | (19) | (83) | |
Total Fair Value | $ 336 | $ 192 |
Mortgage Loans Held for Sale _2
Mortgage Loans Held for Sale - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Unpaid principal balances of mortgage loans held for sale on nonaccrual status | $ 21.8 | $ 26.1 |
Fair value of mortgage loans held for sale on nonaccrual status | 16.7 | $ 21.6 |
Unpaid principal balance pledged to secure mortgage warehouse lines of credit | $ 600 |
Mortgage Loans Held for Sale _3
Mortgage Loans Held for Sale - Reconciliation of the Changes in Mortgage Loans Held For Sale to the Amounts Presented On the Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Fair value at beginning of period | $ 5,107,161 | $ 3,301,694 |
Mortgage loans originated and purchased | 28,622,069 | 100,217,789 |
Proceeds on sales and payments received | (32,276,858) | (97,870,548) |
Change in fair value | (138,530) | (41,824) |
(Loss) gain on sale | (670,849) | (499,950) |
Fair value at end of period | $ 642,993 | $ 5,107,161 |
Mortgage Servicing Rights - Ana
Mortgage Servicing Rights - Analysis of the Changes in Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance at beginning of period | $ 1,525,103 | $ 748,457 |
MSRs originated | 475,469 | 1,052,012 |
MSRs purchased | 24,738 | 43,056 |
MSRs sold | (849,729) | (238,265) |
Changes in valuation model inputs | 358,782 | 227,401 |
Change due to cash payoffs and principal amortization | 131,821 | 307,558 |
Balance at end of period | $ 1,402,542 | $ 1,525,103 |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of the Company's Total Capitalized Mortgage Servicing Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Mortgage servicing portfolio | $ 88,668,633 | $ 128,359,574 |
Ginnie Mae | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage servicing portfolio | 4,357,853 | 5,602,582 |
Fannie Mae | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage servicing portfolio | 47,198,689 | 70,174,987 |
Freddie Mac | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage servicing portfolio | 37,082,471 | 52,547,588 |
Other | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage servicing portfolio | $ 29,620 | $ 34,417 |
Mortgage Servicing Rights - Key
Mortgage Servicing Rights - Key Weighted Average Assumptions Used in Determining the Fair Value of the Company’s MSRs (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Discount rate | 11.23% | 8.68% |
Weighted average prepayment speeds | 5.44% | 8.30% |
Mortgage Servicing Rights - A_2
Mortgage Servicing Rights - Analysis of Change in Discount Rate and Prepayment Speeds on MSRs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Transfers and Servicing [Abstract] | ||
100 BPS Adverse Change | $ (66,658) | $ (66,885) |
200 BPS Adverse Change | (127,263) | (128,172) |
10% Adverse Change | (36,353) | (56,278) |
20% Adverse Change | $ (70,814) | $ (108,621) |
Mortgage Servicing Rights - Inf
Mortgage Servicing Rights - Information Related To Loans Serviced For Which the Company Has Continuing Involvement through Servicing Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance | $ 89,280,085 | $ 133,889,085 |
Loans 30-89 days delinquent | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance | 824,348 | 656,012 |
Loans delinquent 90 or more days or in foreclosure | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance | $ 555,293 | $ 777,650 |
Mortgage Servicing Rights - Com
Mortgage Servicing Rights - Components of Loan Servicing Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Contractual servicing fees | $ 266,050 | $ 312,181 |
Late fees | 2,394 | 5,070 |
Other | (3,169) | 14,131 |
Total | $ 265,275 | $ 331,382 |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Escrow funds held for customers | $ 5,100 | $ 19,900 |
Loss (gain) on sale of mortgage servicing rights | $ (82,163) | $ 37,025 |
Mortgage Servicing Rights - C_2
Mortgage Servicing Rights - Components of Change in Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Change due to cash payoffs and principal amortization | $ (131,821) | $ (307,558) |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage Servicing Rights (MSR) Impairment (Recovery) | Mortgage Servicing Rights (MSR) Impairment (Recovery) |
Changes in valuation model inputs | $ 358,782 | $ 227,401 |
Servicing Liability, Fair Value, Change in Fair Value, Valuation Input, Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage Servicing Rights (MSR) Impairment (Recovery) | Mortgage Servicing Rights (MSR) Impairment (Recovery) |
Economic hedging results | $ (242,487) | $ (33,699) |
Loss (gain) on sale of mortgage servicing rights | (82,163) | 37,025 |
Change in fair value of MSRs | $ (97,689) | $ (76,831) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Outstanding Notional Balances for Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative assets | $ 25,611 | $ 84,385 |
Derivative Liability | 4,110 | 26,736 |
Forward sale contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | 819,900 | 7,819,802 |
Derivative assets | 6,107 | 6,969 |
Derivative Liability | 1,200 | 8,242 |
Interest rate lock commitments | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | 598,970 | 6,068,763 |
Derivative assets | 2,231 | 29,887 |
Derivative Liability | 2,504 | 2,843 |
Forward purchase contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | 61,300 | 1,521,000 |
Derivative assets | 0 | 3,031 |
Derivative Liability | 400 | 281 |
Interest rate swap futures contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,540,000 | |
Derivative assets | 111 | |
Derivative Liability | 5,662 | |
Treasury futures purchase contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | 897,500 | 4,720,000 |
Derivative assets | 0 | 0 |
Derivative Liability | 0 | 0 |
Margin | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative assets | 17,273 | 44,387 |
Derivative Liability | $ 6 | $ 9,708 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Forward sale contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative | $ 5,956 | $ 58,530 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Gain (loss) on derivative | (26,880) | (235,988) |
Forward purchase contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative | (2,926) | (1,669) |
Interest rate swap and Treasury futures purchase contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative | $ (196,453) | $ (20,632) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Derivative Assets and Liabilities and Related Netting Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Gross amount of derivative assets recognized | $ 8,338 | $ 39,998 |
Derivative assets, Gross Offset | (1,062) | (5,255) |
Derivative, Collateral, Obligation to Return Cash | (3,790) | (3,899) |
Net assets | 3,486 | 30,844 |
Gross amount of derivative liabilities recognized | (4,104) | (17,028) |
Derivative liabilities, Gross Offset | 1,062 | 5,255 |
Derivative liabilities, Cash Collateral | 538 | 6,803 |
Net liabilities | (2,504) | (4,970) |
Forward sale contracts | ||
Derivative [Line Items] | ||
Gross amount of derivative assets recognized | 6,107 | 6,969 |
Derivative assets, Gross Offset | (1,062) | (4,886) |
Derivative, Collateral, Obligation to Return Cash | (3,790) | (1,272) |
Net assets | 1,255 | 811 |
Gross amount of derivative liabilities recognized | (1,200) | (8,242) |
Derivative liabilities, Gross Offset | 1,062 | 4,886 |
Derivative liabilities, Cash Collateral | 138 | 1,252 |
Net liabilities | 0 | (2,104) |
Forward purchase contracts | ||
Derivative [Line Items] | ||
Gross amount of derivative assets recognized | 3,031 | |
Derivative assets, Gross Offset | (258) | |
Derivative, Collateral, Obligation to Return Cash | (2,627) | |
Net assets | 146 | |
Gross amount of derivative liabilities recognized | (400) | (281) |
Derivative liabilities, Gross Offset | 0 | 258 |
Derivative liabilities, Cash Collateral | 400 | 0 |
Net liabilities | 0 | (23) |
Interest rate swap futures contracts | ||
Derivative [Line Items] | ||
Gross amount of derivative assets recognized | 111 | |
Derivative assets, Gross Offset | (111) | |
Derivative, Collateral, Obligation to Return Cash | 0 | |
Net assets | 0 | |
Gross amount of derivative liabilities recognized | (5,662) | |
Derivative liabilities, Gross Offset | 111 | |
Derivative liabilities, Cash Collateral | 5,551 | |
Net liabilities | 0 | |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Gross amount of derivative assets recognized | 2,231 | 29,887 |
Net assets | 2,231 | 29,887 |
Gross amount of derivative liabilities recognized | (2,504) | (2,843) |
Net liabilities | $ (2,504) | $ (2,843) |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Impairment of goodwill | $ 10,789,000 | $ 0 |
Goodwill | 0 | |
Origination | ||
Goodwill [Line Items] | ||
Impairment of goodwill | 7,000,000 | |
Servicing | ||
Goodwill [Line Items] | ||
Impairment of goodwill | $ 3,800,000 |
Other Assets And Other Liabil_3
Other Assets And Other Liabilities - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses and other | $ 15,215 | $ 23,418 |
Right of use lease asset | 8,269 | 12,039 |
Foreclosure and real estate owned | 12,682 | 7,771 |
Other Assets, Total | 36,166 | 43,228 |
Servicing sale receivable | $ 29,503 | $ 14,364 |
Other Assets And Other Liabil_4
Other Assets And Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Escrow liability | $ 5,088 | $ 19,920 |
Repurchase reserves | 26,605 | 24,577 |
Right-of-use liabilities | 10,600 | 15,562 |
Unclaimed property | 14,811 | 15,641 |
Other | 732 | 888 |
Other liabilities | $ 57,836 | $ 76,588 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 28,086 | $ 40,172 |
Less accumulated depreciation | (16,426) | (18,280) |
Property and equipment, net | 11,660 | 21,892 |
Computer and telephone | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 18,569 | 31,187 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 2,281 | 3,027 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 5,464 | 5,537 |
Work-in-process for internal use software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 1,772 | $ 421 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 10,700 | $ 10,127 |
Accounts Receivable, Net - Prin
Accounts Receivable, Net - Principal Categories of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Servicing receivable-general | $ 14,943 | $ 359 |
Pair off receivable | 619 | 3,738 |
Servicing sale receivable | 29,503 | 14,364 |
Servicing advance receivable | 77,257 | 71,884 |
Servicing advance reserve | (3,355) | (4,207) |
Agency receivable | 595 | 20,184 |
Income tax receivable | 1,902 | 11,181 |
Warehouse receivable | 0 | 1,934 |
Interest on servicing deposits | 302 | 464 |
Other | 2,925 | 9,191 |
Total | $ 124,691 | $ 129,092 |
Accounts Receivable, Net - Chan
Accounts Receivable, Net - Changes to the Servicing Advance Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Advance Receivable, Allowance For Credit Loss [Roll Forward] | ||
Servicing advance reserve at beginning of period | $ (4,207) | $ (8,380) |
Additions | (2,620) | (1,975) |
Charge-offs | 3,472 | 6,148 |
Servicing advance reserve at end of period | $ (3,355) | $ (4,207) |
Warehouse Lines of Credit - Nar
Warehouse Lines of Credit - Narrative (Details) - Warehouse Lines of Credit $ in Billions | Dec. 31, 2022 USD ($) financialInstitution | Dec. 31, 2021 USD ($) financialInstitution |
Line of Credit Facility [Line Items] | ||
Debt instrument, number of financial instruments | financialInstitution | 8 | 11 |
Maximum borrowing capacity | $ 2.8 | $ 7.5 |
Unused borrowing capacity | $ 2.3 | $ 2.8 |
Weighted average interest rate | 2.91% | 2.36% |
Warehouse Lines of Credit - Amo
Warehouse Lines of Credit - Amounts Outstanding and Maturity Dates under the Company’s Various Mortgage Funding Arrangements (Details) - USD ($) | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | |||
Warehouse lines of credit | $ 496,481,000 | $ 4,718,658,000 | |
Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,800,000,000 | 7,500,000,000 | |
Warehouse lines of credit | 496,481,000 | 4,718,658,000 | |
$450M Warehouse Facility, Maturing September 2022 | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 450,000,000 | 450,000,000 | |
Warehouse lines of credit | 149,513,000 | 277,060,000 | |
$500M Warehouse Facility, Maturing September 2022 | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 200,000,000 | 500,000,000 | |
Warehouse lines of credit | 41,309,000 | 339,521,000 | |
$500M Warehouse Facility, Maturing September | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 200,000,000 | 500,000,000 | |
Warehouse lines of credit | 32,011,000 | 375,381,000 | |
$200M Warehouse Facility, Maturing March 2023 | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Warehouse lines of credit | 45,284,000 | ||
$500M Warehouse Facility, Maturing March 2023 | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 50,000,000 | ||
Warehouse lines of credit | 41,928,000 | ||
$1,500M Warehouse Facility, Maturing May 2023 | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,200,000,000 | 1,500,000,000 | |
Warehouse lines of credit | 113,136,000 | 731,132,000 | |
$88.5M Warehouse Facility | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 88,500,000 | ||
Warehouse lines of credit | 8,050,000 | ||
$550M Warehouse Facility | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 400,000,000 | 550,000,000 | |
Warehouse lines of credit | 65,250,000 | 363,959,000 | |
Gestation | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Warehouse lines of credit | $ 0 | 179,360,000 | |
Early Funding | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Warehouse lines of credit | 93,119,000 | ||
$1,200M Warehouse Facility | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,200,000,000 | ||
Warehouse lines of credit | 604,421,000 | ||
$500M Warehouse Facility | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 500,000,000 | ||
Warehouse lines of credit | 335,509,000 | ||
$1,000M Warehouse Facility Maturing August 2022 | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,000,000,000 | ||
Warehouse lines of credit | 716,802,000 | ||
$500M Warehouse Facility | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 500,000,000 | ||
Warehouse lines of credit | 381,087,000 | ||
$325M Warehouse Facility, Maturing March 2023 | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 250,000,000 | 500,000,000 | |
Warehouse lines of credit | 309,898,000 | ||
$89M Warehouse Facility | Warehouse Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 88,500,000 | ||
Warehouse lines of credit | $ 11,409,000 |
Term Debt and Other Borrowing_3
Term Debt and Other Borrowings, net - Summary of Term Debt and Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 08, 2022 | Dec. 31, 2021 | Jan. 31, 2021 |
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 951,000 | $ 1,239,250 | |||
Debt issuance costs | (8,917) | (12,726) | |||
Long-term debt, net | 942,083 | 1,226,524 | |||
$1.0 billion MSR Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 1,000,000 | ||||
Long-term debt, gross | 450,000 | 685,000 | |||
$550 million Senior Notes(a) | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 550,000 | ||||
Long-term debt, gross | 500,000 | 550,000 | |||
Long-term debt, net | 500,000 | 550,000 | |||
$85 million Servicing Advance Facility(b), (c) | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 85,000 | $ 90,000 | |||
Long-term debt, gross | 0 | 3,250 | |||
$35 million Operating Line of Credit(c) | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | 35,000 | ||||
Long-term debt, gross | $ 1,000 | $ 1,000 | |||
$550 Million Senior Note Due February 2026 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 550,000 | ||||
Debt instrument, repurchase amount | $ 50,000 |
Term Debt and Other Borrowing_4
Term Debt and Other Borrowings, net - Narrative (Details) - USD ($) $ in Thousands | Apr. 29, 2022 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 08, 2022 | Dec. 31, 2021 | Jan. 31, 2021 |
Debt Instrument [Line Items] | ||||||
Term debt and other borrowings, net | $ 942,083 | $ 1,226,524 | ||||
$550 million Senior Notes(a) | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 550,000 | |||||
Term debt and other borrowings, net | 500,000 | 550,000 | ||||
Long-term debt, fair value | 343,000 | $ 506,000 | ||||
$550 Million Senior Note Due February 2026 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 550,000 | |||||
Interest rate | 5% | |||||
Debt instrument, repurchase amount | $ 50,000 | |||||
Revolving Credit Facility | $1.0 billion MSR Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 1,000,000 | |||||
Committed capacity | $ 500,000 | 650,000 | ||||
Revolving Credit Facility | $1.0 billion MSR Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Advance rate as a percent of the value of the underlying mortgage servicing rights | 62.50% | |||||
Revolving Credit Facility | $1.0 billion MSR Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Advance rate as a percent of the value of the underlying mortgage servicing rights | 72.50% | |||||
Revolving Credit Facility | $1.0 Billion MSR Facility Due May 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 1,000,000 | |||||
Borrowing term | 3 years | |||||
Period during which the balance drawn must be repaid and no further amounts may be drawn down | 1 year | |||||
Line of Credit | $1.0 billion MSR Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity | 391,800 | |||||
Line of Credit | $85 million Servicing Advance Facility(b), (c) | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 85,000 | $ 90,000 | ||||
Line of Credit | $85 million Servicing Advance Facility(b), (c) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Advance rate as a percent of the value of the underlying mortgage servicing rights | 85% | |||||
Line of Credit | $85 million Servicing Advance Facility(b), (c) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Advance rate as a percent of the value of the underlying mortgage servicing rights | 95% | |||||
Line of Credit | $35 million Operating Line of Credit(c) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 35,000 | |||||
Line of Credit | $85M Servicing Advance Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity | 67,400 | |||||
Line of Credit | $35 Million Operating Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 35,000 |
Term Debt and Other Borrowing_5
Term Debt and Other Borrowings, net - Debt Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Long-term debt, net | $ 951,000 | $ 1,239,250 |
$1.0B MSR Facility and $550M Senior Notes | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
2023 | 1,000 | |
2024 | 300,000 | |
2025 | 150,000 | |
2026 | 500,000 | |
2027 and thereafter | 0 | |
Long-term debt, net | $ 951,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Leases [Abstract] | ||
Maximum lease renewal term | 10 years | |
Number of lease renewal options | loan | 2 | |
Extension term | 5 years | |
Lease termination period | 1 year | |
Rent expense | $ 4.5 | $ 6.8 |
Sublease income | $ 1 | $ 1.5 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 5,790 | $ 6,521 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 0 | $ 881 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Right of use lease asset | $ 8,269 | $ 12,039 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Right-of-use liabilities | $ 10,600 | $ 15,562 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Weighted average remaining lease term in years: | 3 years 11 months 12 days | 4 years 2 months 15 days |
Weighted average discount rate: | 5.22% | 5.08% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 3,515 | |
2024 | 3,294 | |
2025 | 2,146 | |
2026 | 781 | |
2027 | 804 | |
Thereafter | 1,251 | |
Total lease payments | 11,791 | |
Less: imputed interest | (1,191) | |
Right-of-use liabilities | $ 10,600 | $ 15,562 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments to Extend Credit | ||
Other Commitments [Line Items] | ||
Committed amounts | $ 0.6 | $ 6.1 |
Regulatory Net Worth Requirem_2
Regulatory Net Worth Requirements (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Federal Home Loan Mortgage Corporation (FHLMC) | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Minimum net worth requirement | $ 225,700,000 | $ 326,300,000 |
Federal National Mortgage Association (FNMA) | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Minimum net worth requirement | 225,700,000 | $ 326,300,000 |
Minimum | Home Point Financial Corporation (HPF) | Various States | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Minimum net worth requirement | 0 | |
Maximum | Home Point Financial Corporation (HPF) | Various States | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Minimum net worth requirement | $ 1,000,000 |
Representation and Warranty R_3
Representation and Warranty Reserve - Schedule of Mortgage Loans Repurchase Reserve Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage Representation And Warranty Reserve [Roll Forward] | ||
Reserve at beginning of period | $ 24,577 | $ 18,080 |
Additions | 52,799 | 12,147 |
Charge-offs | (50,771) | (5,650) |
Reserve at end of period | $ 26,605 | $ 24,577 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted Average | Interest rate lock commitments | Pull-through rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments | 0.775 | 0.861 |
Fair Value Measurements - Major
Fair Value Measurements - Major Categories of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | |||
Mortgage loans held for sale | $ 642,993 | $ 5,107,161 | |
Derivative assets | 25,611 | 84,385 | |
Mortgage servicing rights | 1,402,542 | 1,525,103 | $ 748,457 |
Liabilities: | |||
Derivative liabilities | 4,110 | 26,736 | |
Measured on a Recurring Basis | |||
Assets: | |||
Mortgage servicing rights | 1,402,542 | 1,525,103 | |
Total assets | 2,053,873 | 6,672,262 | |
Liabilities: | |||
Total | 4,104 | 17,028 | |
Measured on a Recurring Basis | Mortgage loans held for sale | |||
Assets: | |||
Mortgage loans held for sale | 642,993 | 5,107,161 | |
Measured on a Recurring Basis | Interest rate lock commitments | |||
Assets: | |||
Derivative assets | 2,231 | 29,887 | |
Liabilities: | |||
Derivative liabilities | 2,504 | 2,843 | |
Measured on a Recurring Basis | Forward sale contracts | |||
Assets: | |||
Derivative assets | 6,107 | 6,969 | |
Liabilities: | |||
Derivative liabilities | 1,200 | 8,242 | |
Measured on a Recurring Basis | Forward purchase contracts | |||
Assets: | |||
Derivative assets | 3,031 | ||
Liabilities: | |||
Derivative liabilities | 400 | 281 | |
Measured on a Recurring Basis | Interest rate swap futures contracts | |||
Assets: | |||
Derivative assets | 111 | ||
Liabilities: | |||
Derivative liabilities | 5,662 | ||
Level 1 | Measured on a Recurring Basis | |||
Assets: | |||
Mortgage servicing rights | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities: | |||
Total | 0 | 0 | |
Level 1 | Measured on a Recurring Basis | Mortgage loans held for sale | |||
Assets: | |||
Mortgage loans held for sale | 0 | 0 | |
Level 1 | Measured on a Recurring Basis | Interest rate lock commitments | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Level 1 | Measured on a Recurring Basis | Forward sale contracts | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Level 1 | Measured on a Recurring Basis | Forward purchase contracts | |||
Assets: | |||
Derivative assets | 0 | ||
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Level 1 | Measured on a Recurring Basis | Interest rate swap futures contracts | |||
Assets: | |||
Derivative assets | 0 | ||
Liabilities: | |||
Derivative liabilities | 0 | ||
Level 2 | Measured on a Recurring Basis | |||
Assets: | |||
Mortgage servicing rights | 0 | 0 | |
Total assets | 635,215 | 5,097,054 | |
Liabilities: | |||
Total | 1,600 | 14,185 | |
Level 2 | Measured on a Recurring Basis | Mortgage loans held for sale | |||
Assets: | |||
Mortgage loans held for sale | 629,108 | 5,086,943 | |
Level 2 | Measured on a Recurring Basis | Interest rate lock commitments | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Level 2 | Measured on a Recurring Basis | Forward sale contracts | |||
Assets: | |||
Derivative assets | 6,107 | 6,969 | |
Liabilities: | |||
Derivative liabilities | 1,200 | 8,242 | |
Level 2 | Measured on a Recurring Basis | Forward purchase contracts | |||
Assets: | |||
Derivative assets | 3,031 | ||
Liabilities: | |||
Derivative liabilities | 400 | 281 | |
Level 2 | Measured on a Recurring Basis | Interest rate swap futures contracts | |||
Assets: | |||
Derivative assets | 111 | ||
Liabilities: | |||
Derivative liabilities | 5,662 | ||
Level 3 | Measured on a Recurring Basis | |||
Assets: | |||
Mortgage servicing rights | 1,402,542 | 1,525,103 | |
Total assets | 1,418,658 | 1,575,208 | |
Liabilities: | |||
Total | 2,504 | 2,843 | |
Level 3 | Measured on a Recurring Basis | Mortgage loans held for sale | |||
Assets: | |||
Mortgage loans held for sale | 13,885 | 20,218 | |
Level 3 | Measured on a Recurring Basis | Interest rate lock commitments | |||
Assets: | |||
Derivative assets | 2,231 | 29,887 | |
Liabilities: | |||
Derivative liabilities | 2,504 | 2,843 | |
Level 3 | Measured on a Recurring Basis | Forward sale contracts | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Level 3 | Measured on a Recurring Basis | Forward purchase contracts | |||
Assets: | |||
Derivative assets | 0 | ||
Liabilities: | |||
Derivative liabilities | $ 0 | 0 | |
Level 3 | Measured on a Recurring Basis | Interest rate swap futures contracts | |||
Assets: | |||
Derivative assets | 0 | ||
Liabilities: | |||
Derivative liabilities | $ 0 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 Assets Measured At Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Hedging Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 1,525,103 | $ 748,457 |
Purchases, sales, issuances, contributions, and settlements | (349,522) | 856,802 |
Change in fair value | 226,961 | (80,156) |
Transfers In/Out | 0 | 0 |
Balance at end of period | 1,402,542 | 1,525,103 |
Interest Rate Lock Commitments, Asset | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 29,887 | 257,785 |
Purchases, sales, issuances, contributions, and settlements | 0 | 0 |
Change in fair value | (27,656) | (227,898) |
Transfers In/Out | 0 | 0 |
Balance at end of period | 2,231 | 29,887 |
Mortgage loans held for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 20,218 | 44,374 |
Purchases, sales, issuances, contributions, and settlements | (5,621) | (26,353) |
Change in fair value | 468 | (633) |
Transfers In/Out | (1,180) | 2,830 |
Balance at end of period | 13,885 | 20,218 |
Interest Rate Lock Commitments, Liability | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 2,843 | 0 |
Purchases, sales, issuances, contributions, and settlements | 0 | 2,843 |
Change in fair value | (339) | 0 |
Transfers In/Out | 0 | 0 |
Balance at end of period | $ 2,504 | $ 2,843 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value and UPB of Mortgage Loans Held for Sale for which the Company has elected the Fair Value Option (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Fair Value | $ 642,993 | $ 5,107,161 |
Principal Amount Due Upon Maturity | 680,315 | 5,005,069 |
Difference | $ (37,322) | $ 102,092 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of the Key Unobservable Inputs Used In the Valuation of the Level 3 Assets (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Minimum | Mortgage servicing rights | Discount rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.096 | 0.086 |
Minimum | Mortgage servicing rights | Prepayment speeds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.046 | 0.069 |
Minimum | Interest rate lock commitments | Pull-through rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments | 0.210 | 0.498 |
Minimum | Mortgage loans held for sale | Investor pricing | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage loans held for sale | 0.650 | 0.700 |
Maximum | Mortgage servicing rights | Discount rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.140 | 0.122 |
Maximum | Mortgage servicing rights | Prepayment speeds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.082 | 0.116 |
Maximum | Interest rate lock commitments | Pull-through rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments | 1 | 1 |
Maximum | Mortgage loans held for sale | Investor pricing | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage loans held for sale | 1.036 | 1.041 |
Weighted Average | Mortgage servicing rights | Discount rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.112 | 0.087 |
Weighted Average | Mortgage servicing rights | Prepayment speeds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.054 | 0.083 |
Weighted Average | Interest rate lock commitments | Pull-through rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments | 0.775 | 0.861 |
Weighted Average | Mortgage loans held for sale | Investor pricing | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage loans held for sale | 0.933 | 0.913 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 16,484 |
Severance and Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 14,182 |
Office Equipment Write-off | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 2,300 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Reserve (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 0 |
Restructuring charges | 16,484 |
Payments | (14,182) |
Non-cash impairment of office equipment | (2,302) |
Ending balance | 0 |
Severance and Employee-Related Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Restructuring charges | 14,182 |
Payments | (14,182) |
Ending balance | 0 |
Office Equipment | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Restructuring charges | 2,302 |
Payments | 0 |
Non-cash impairment of office equipment | (2,302) |
Ending balance | $ 0 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
401(k) matching contribution made by company | $ 2.5 | $ 3.7 |
Equity-based Compensation - Nar
Equity-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 21, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares that may be granted (in shares) | 6,900,000 | ||
Plan expiration period | 10 years | ||
Unrecognized compensation expense | $ 42.1 | ||
Number of options exercisable (in shares) | 2,367,280 | ||
Weighted-average exercise price of options currently exercisable (in USD per share) | $ 3.77 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated forfeiture rate (percent) | 0% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated forfeiture rate (percent) | 10.40% | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Compensation expense | $ 1.5 | $ 1.5 | |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance period | 3 years | ||
Performance stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 0% | ||
Performance stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 150% | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 3.7 | $ 5.4 | |
Weighted-average recognition period for unrecognized compensation expense | 5 years 2 months 12 days |
Equity-based Compensation - Sch
Equity-based Compensation - Schedule of the Company's RSU and PSU Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Restricted stock units | |
Units | |
Outstanding, beginning of period (in shares) | shares | 367,991 |
Granted (in shares) | shares | 233,550 |
Vested (in shares) | shares | (209,093) |
Outstanding, end of period (in shares) | shares | 392,448 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 10.18 |
Granted (in dollars per share) | $ / shares | 3.85 |
Vested (in dollars per share) | $ / shares | 10.75 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 6.12 |
Performance stock units | |
Units | |
Outstanding, beginning of period (in shares) | shares | 238,347 |
Granted (in shares) | shares | 131,924 |
Outstanding, end of period (in shares) | shares | 370,271 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 9.44 |
Granted (in dollars per share) | $ / shares | 3.79 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 7.43 |
Equity-based Compensation - Act
Equity-based Compensation - Activity of the Company’s Stock Options (Details) - 2021 Incentive Plan - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Outstanding at beginning of period (in shares) | 11,751,031 | |
Granted (in shares) | 337,043 | |
Exercised (in shares) | (294,068) | |
Forfeited (in shares) | (661,130) | |
Expired (in shares) | (198,983) | |
Outstanding at end of period (in shares) | 10,933,893 | 11,751,031 |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 4.45 | |
Granted (in dollars per share) | 1.81 | |
Exercised (in dollars per share) | 1.86 | |
Forfeited (in dollars per share) | 1.85 | |
Expired (in dollars per share) | 1.79 | |
Outstanding at end of period (in dollars per share) | $ 4.64 | $ 4.45 |
Stock Options Additional Disclosures | ||
Weighted average contractual life (in years) | 4 years 8 months 12 days | 6 years 10 months 13 days |
Weighted average contractual life, granted (in years) | 4 years 1 month 2 days | |
Weighted average contractual life, exercised (in years) | 1 year 6 months 7 days | |
Weighted average contractual life, expired (in years) | 1 year | |
Weighted average contractual life, forfeited (in years) | 1 month 20 days | |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 8.38 | |
Granted (in dollars per share) | 9.79 | |
Exercised (in dollars per share) | 9.77 | |
Forfeited (in dollars per share) | 9.73 | |
Expired (in dollars per share) | 9.76 | |
Outstanding at end of period (in dollars per share) | $ 8.27 | $ 8.38 |
Equity-based Compensation - Sum
Equity-based Compensation - Summary of the Company’s Non-Vested Activity (Details) - 2021 Incentive Plan - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Non-vested at beginning of period (in shares) | 9,627,033 | |
Granted (in shares) | 337,043 | |
Vested (in shares) | (243,282) | |
Exercised (in shares) | (294,068) | |
Forfeited (in shares) | (661,130) | |
Expired (in shares) | (198,983) | |
Non-vested at end of period (in shares) | 8,566,613 | |
Weighted Average Grant Date Fair Value | ||
Non-vested at beginning of period (in dollars per share) | $ 8.12 | |
Granted (in dollars per share) | 9.79 | |
Vested (in dollars per share) | 9.20 | |
Exercised (in dollars per share) | 9.77 | |
Forfeited (in dollars per share) | 9.73 | |
Expired (in dollars per share) | 9.76 | |
Non-vested at end of period (in dollars per share) | $ 8.12 | $ 8.19 |
Equity-based Compensation - S_2
Equity-based Compensation - Summary of Assumptions used in the Black-Scholes Option Valuation Model (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate, minimum | 0% | 0.60% |
Risk-free interest rate, maximum | 3% | 3% |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (in years) | 8 years 3 months 18 days | 8 years 2 months 12 days |
Expected volatility | 24.90% | 24.90% |
Dividend yield | 0% | 0% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | ||
Net income | $ (163,454) | $ 166,272 |
Net (loss) income attributable to common shareholders | (163,454) | 166,272 |
Net (loss) income attributable to Home Point - diluted | $ (163,454) | $ 166,272 |
Denominator (in thousands): | ||
Basic weighted average shares outstanding (in shares) | 138,638 | 139,198 |
Diluted weighted average shares outstanding (in shares) | 138,638 | 139,996 |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Basic (in dollars per share) | $ (1.18) | $ 1.19 |
Diluted (in dollars per share) | $ (1.18) | $ 1.19 |
Stock options | ||
Denominator (in thousands): | ||
Dilutive effect of common stock equivalents (in shares) | 0 | 798 |
Shareholders' Equity and Equi_2
Shareholders' Equity and Equity Method Investment - Common Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Oct. 03, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 24, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.0000 | $ 0.0000 | ||
Shares repurchase, approved amount | $ 8,000 | |||
Stock repurchases (shares) | 1,179,796 | |||
Stock repurchase | $ 3,800 | |||
Impairment of equity method investment | 8,795 | $ 0 | ||
Proceeds from sale of equity method investments | 38,886 | $ 0 | ||
Longbridge Financial, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Voting interest percentage | 49.60% | |||
Equity Method Investments | $ 63,700 | |||
Impairment of equity method investment | $ 8,800 | |||
Proceeds from sale of equity method investments | $ 38,900 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current federal income tax expense | $ (1,551) | $ 64 |
Deferred federal income tax expense | 39,386 | (43,039) |
Total federal income tax expense | 37,835 | (42,975) |
Current state income tax expense | (1,700) | (2,311) |
Deferred state income tax expense | 5,779 | (12,712) |
Total state income tax expense | 4,079 | (15,023) |
Current income tax expense | (3,251) | (2,247) |
Deferred income tax expense | 45,165 | (55,751) |
Total income tax (benefit) expense | $ 41,914 | $ (57,998) |
Income Taxes - Schedule Effecti
Income Taxes - Schedule Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Loss (income) before income taxes | $ (179,090) | $ 208,897 |
Statutory federal income tax expense | (37,609) | 43,868 |
State income tax expense, net of federal tax | (6,914) | 10,116 |
Impact of equity investments | (5,518) | 3,679 |
Impact of tax rate change | 3,199 | (494) |
HPMAC investment write Off | 2,318 | 0 |
Impairment of goodwill | 1,879 | 0 |
Change in valuation allowance | 0 | 1,812 |
Other | 731 | (983) |
Total income tax (benefit) expense | $ (41,914) | $ 57,998 |
Effective tax rate | 23.40% | 27.80% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax asset | ||
Federal NOL carryforward | $ 93,151 | $ 101,800 |
State NOL carryforward | 23,603 | 23,825 |
Rep. & Warranty | 6,715 | 6,120 |
ROU lease deferred asset | 2,775 | 4,000 |
Other | 6,249 | 13,281 |
Total deferred tax asset | 132,493 | 149,026 |
Deferred tax liability | ||
MSR | (308,158) | (348,417) |
Derivatives | 0 | (6,734) |
Investment in Longbridge | 0 | (11,546) |
ROU lease deferred liability | (2,803) | (3,900) |
Other | (3,052) | (5,785) |
Total deferred tax liability | (314,013) | (376,382) |
Valuation Allowance | (2,340) | (2,396) |
Net tax asset/liability | $ (183,860) | $ (229,752) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 2,340 | $ 2,396 | |
Uncertain tax positions | 835 | 743 | $ 0 |
Unrecognized tax benefit affecting effective tax rate if recognized | 500 | $ 400 | |
Interest and penalties accrued on liability for unrecognized tax benefits | 20 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Gross federal and state NOLs | 443,600 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Gross federal and state NOLs | $ 436,600 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Uncertain tax positions, beginning balance | $ 743 | $ 0 |
Increases related to positions taken during prior years | 0 | 743 |
Increases related to positions taken during the current year | 92 | 0 |
Decreases related to positions settled with tax authorities | 0 | 0 |
Decreases due to a lapse of applicable statute of limitations | 0 | 0 |
Uncertain tax positions, ending balance | $ 835 | $ 743 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments - Key Operating Data f
Segments - Key Operating Data for Business Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Gain on loans, net | $ 47,105 | $ 585,762 |
Loan fee income | 46,029 | 150,921 |
Loan servicing fees | 265,275 | 331,382 |
Change in fair value of mortgage servicing rights | (97,689) | (76,831) |
Interest income (expense), net | (20,864) | (32,913) |
Other income | 15,791 | 3,195 |
Total | 255,647 | 961,516 |
Contribution (loss) margin | ||
Total | ||
Segment Reporting Information [Line Items] | ||
Gain on loans, net | 47,105 | 585,762 |
Loan fee income | 46,029 | 150,921 |
Loan servicing fees | 265,275 | 331,382 |
Change in fair value of mortgage servicing rights | (97,689) | (76,831) |
Interest income (expense), net | (20,864) | (32,913) |
Other income | (10,487) | 18,568 |
Total | 229,369 | 976,889 |
Contribution (loss) margin | (205,368) | 224,270 |
Segments | ||
Segment Reporting Information [Line Items] | ||
Gain on loans, net | 47,105 | 585,762 |
Loan fee income | 46,029 | 150,921 |
Loan servicing fees | 265,275 | 331,382 |
Change in fair value of mortgage servicing rights | (97,689) | (76,831) |
Interest income (expense), net | 33,547 | 15,828 |
Other income | 111 | 227 |
Total | 294,378 | 1,007,289 |
Contribution (loss) margin | 14,881 | 422,879 |
Segments | Origination | ||
Segment Reporting Information [Line Items] | ||
Gain on loans, net | 47,105 | 585,762 |
Loan fee income | 46,029 | 150,921 |
Loan servicing fees | 0 | 8 |
Change in fair value of mortgage servicing rights | 0 | 0 |
Interest income (expense), net | 21,375 | 13,897 |
Other income | 111 | 0 |
Total | 114,620 | 750,588 |
Contribution (loss) margin | (106,884) | 237,055 |
Segments | Servicing | ||
Segment Reporting Information [Line Items] | ||
Gain on loans, net | 0 | 0 |
Loan fee income | 0 | 0 |
Loan servicing fees | 265,275 | 331,374 |
Change in fair value of mortgage servicing rights | (97,689) | (76,831) |
Interest income (expense), net | 12,172 | 1,931 |
Other income | 0 | 227 |
Total | 179,758 | 256,701 |
Contribution (loss) margin | 121,765 | 185,824 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Gain on loans, net | 0 | 0 |
Loan fee income | 0 | 0 |
Loan servicing fees | 0 | 0 |
Change in fair value of mortgage servicing rights | 0 | 0 |
Interest income (expense), net | (54,411) | (48,741) |
Other income | (10,598) | 18,341 |
Total | (65,009) | (30,400) |
Contribution (loss) margin | (220,249) | (198,609) |
Reconciling Item | ||
Segment Reporting Information [Line Items] | ||
Gain on loans, net | 0 | 0 |
Loan fee income | 0 | 0 |
Loan servicing fees | 0 | 0 |
Change in fair value of mortgage servicing rights | 0 | 0 |
Interest income (expense), net | 0 | 0 |
Other income | 26,278 | (15,373) |
Total | 26,278 | (15,373) |
Contribution (loss) margin |
Segments - Reconciliation of Se
Segments - Reconciliation of Segment Contribution Margin to Consolidated U.S. GAAP Income (Loss) Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting [Abstract] | ||
(Loss) income before income tax | $ (179,090) | $ 208,897 |
(Loss) income from equity method investment | (26,278) | 15,373 |
Contribution (loss) margin | $ (205,368) | $ 224,270 |
Concentrations of Risk - Schedu
Concentrations of Risk - Schedule of Concentration of Risk, Credit Risk (Details) - Geographic Concentration Risk | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Percentage of Origination | CALIFORNIA | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 26.50% | 31.80% |
Percentage of Origination | TEXAS | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 7.50% | |
Percentage of Origination | FLORIDA | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 7.10% | 7.40% |
Percentage of Origination | NEW JERSEY | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 5.40% | |
Percentage of Servicing Unpaid Principal Balance | CALIFORNIA | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 20.40% | 29.10% |
Percentage of Servicing Unpaid Principal Balance | TEXAS | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 8.30% | 7.40% |
Percentage of Servicing Unpaid Principal Balance | FLORIDA | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 6.30% | 5.60% |
Concentrations of Risk - Narrat
Concentrations of Risk - Narrative (Details) $ in Billions | 12 Months Ended | |
Dec. 31, 2022 USD ($) state | Dec. 31, 2021 USD ($) | |
Concentration Risk [Line Items] | ||
Number of states originated or purchased loans in | state | 50 | |
Customer escrow funds and custodial funds due to investors | $ 89.3 | $ 133.9 |
Unpaid principal balance of loans originated by the company and sold with servicing retained | $ 26.8 | $ 92.2 |
Mortgage Loans Sales | Customer Concentration Risk | Agencies | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 97.80% | 97% |
Concentrations of Risk - Sche_2
Concentrations of Risk - Schedule of Originated Financing Receivables Sold or Transferred (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Originated Financing Receivables Sold or Transferred [Line Items] | ||
Newly originated loans sold to investors or transferred into GNMA securitization pools | $ 31,887,270,000 | $ 94,302,204,000 |
Newly originated loans sold to investors or transferred into GNMA securitization pools, percent | 100% | 100% |
Government National Mortgage Association (GNMA) [Member] | ||
Schedule of Originated Financing Receivables Sold or Transferred [Line Items] | ||
Newly originated loans sold to investors or transferred into GNMA securitization pools | $ 7,095,893,000 | $ 13,089,283,000 |
Newly originated loans sold to investors or transferred into GNMA securitization pools, percent | 22.30% | 13.90% |
Federal National Mortgage Association (FNMA) | ||
Schedule of Originated Financing Receivables Sold or Transferred [Line Items] | ||
Newly originated loans sold to investors or transferred into GNMA securitization pools | $ 11,632,784,000 | $ 42,721,394,000 |
Newly originated loans sold to investors or transferred into GNMA securitization pools, percent | 36.50% | 45.30% |
Federal Home Loan Mortgage Corporation (FHLMC) | ||
Schedule of Originated Financing Receivables Sold or Transferred [Line Items] | ||
Newly originated loans sold to investors or transferred into GNMA securitization pools | $ 11,858,369,000 | $ 35,824,414,000 |
Newly originated loans sold to investors or transferred into GNMA securitization pools, percent | 37.20% | 38% |
Other | ||
Schedule of Originated Financing Receivables Sold or Transferred [Line Items] | ||
Newly originated loans sold to investors or transferred into GNMA securitization pools | $ 1,300,224,000 | $ 2,667,113,000 |
Newly originated loans sold to investors or transferred into GNMA securitization pools, percent | 4.10% | 2.80% |
Related Parties - Schedule of R
Related Parties - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Loan expense | $ 9,134 | $ 14,590 |
Loan servicing expense | 1,911 | 1,014 |
General and administrative | 9,450 | 5,268 |
Other expenses | 5,793 | 9,630 |
Other | 208 | 10 |
Related party transactions, total expenses | $ 26,496 | $ 30,512 |
Sale of The Correspondent Cha_2
Sale of The Correspondent Channel and Home Point Asset Management LLC (Details) - USD ($) $ in Millions | Dec. 22, 2022 | Jun. 01, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Correspondent Channel | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from divestiture | $ 2.5 | |
Earnout payment period | 2 years | |
Gain (loss) on sale | $ (0.4) | |
Earnout income | $ 0.9 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | HPAM And Wholly Owned Subsidiary HPMAC | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from divestiture | $ 3.2 | |
Gain (loss) on sale | $ 2.8 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 31, 2023 | Mar. 03, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Warehouse Lines of Credit | ||||
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | $ 2,800,000,000 | $ 7,500,000,000 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Maximum takeout commitment | $ 400,000,000 | |||
Subsequent Event | Agency MBS | ||||
Subsequent Event [Line Items] | ||||
Beneficial ownership interest | 100% | |||
Subsequent Event | $200M Warehouse Facility, Maturing April 2023 | Warehouse Lines of Credit | ||||
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 |