COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-40003 | |
Entity Registrant Name | loanDepot, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-3948939 | |
Entity Address, Address Line One | 26642 Towne Centre Drive, | |
Entity Address, City or Town | Foothill Ranch, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92610 | |
City Area Code | (888) | |
Local Phone Number | 337-6888 | |
Title of 12(b) Security | Class A Common Stock, $0.001 per value per share | |
Trading Symbol | LDI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001831631 | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,019,448 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 | |
Class C | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 174,093,440 | |
Class D | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 114,978,644 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 506,608 | $ 284,224 |
Restricted cash | 97,805 | 204,465 |
Accounts receivable, net | 68,050 | 138,122 |
Loans held for sale, at fair value (includes $2,462,653 and $1,595,442 pledged to creditors in securitization trusts at September 30, 2021 and December 31, 2020, respectively) | 8,873,736 | 6,955,424 |
Derivative assets, at fair value | 341,359 | 647,939 |
Servicing rights, at fair value (includes $379,850 and $300,465 pledged to creditors in securitization trusts at September 30, 2021 and December 31, 2020, respectively) | 1,841,512 | 1,127,866 |
Trading securities, at fair value | 56,412 | 0 |
Property and equipment, net | 103,556 | 85,002 |
Operating lease right-of-use assets | 58,002 | 66,433 |
Prepaid expenses and other assets | 108,720 | 77,241 |
Loans eligible for repurchase | 632,722 | 1,246,158 |
Investments in joint ventures | 18,353 | 17,528 |
Goodwill and intangible assets, net | 42,443 | 42,826 |
Total assets | 12,749,278 | 10,893,228 |
Liabilities: | ||
Warehouse and other lines of credit | 8,212,142 | 6,577,429 |
Accounts payable, accrued expenses and other liabilities | 715,615 | 446,370 |
Derivative liabilities, at fair value | 48,899 | 168,169 |
Liability for loans eligible for repurchase | 632,722 | 1,246,158 |
Operating lease liability | 72,985 | 86,023 |
Debt obligations, net | 1,408,751 | 712,466 |
Total liabilities | 11,091,114 | 9,236,615 |
Commitments and contingencies (Note 16) | ||
Equity: | ||
Preferred stock, $0.001 par value, 50,000,000 authorized, none issued as of September 30, 2021 | 0 | |
Treasury stock at cost, 1,591,549 shares as of September 30, 2021 | (12,844) | |
Additional paid-in capital | 565,475 | 0 |
Retained deficit | (17,819) | 0 |
Noncontrolling interest | 1,123,041 | 1,656,613 |
Total equity | 1,658,164 | 1,656,613 |
Total liabilities and equity | 12,749,278 | $ 10,893,228 |
Class A | ||
Equity: | ||
Common stock, $0.001 par value | 20 | |
Class B | ||
Equity: | ||
Common stock, $0.001 par value | 0 | |
Class C | ||
Equity: | ||
Common stock, $0.001 par value | 176 | |
Class D | ||
Equity: | ||
Common stock, $0.001 par value | $ 115 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loans held for sale, at fair value | $ 8,873,736 | $ 6,955,424 |
Servicing rights, at fair value | $ 1,841,512 | 1,127,866 |
Preferred stock, par value (in usd per share) | $ 0.001 | |
Preferred stock, shares authorized | 50,000,000 | |
Preferred stock, shares issued | 0 | |
Treasury stock, shares | 1,591,549 | |
Class A | ||
Common stock, par value (in usd per share) | $ 0.001 | |
Common stock, shares authorized | 2,500,000,000 | |
Common stock, shares, issued | 19,575,763 | |
Class B | ||
Common stock, par value (in usd per share) | $ 0.001 | |
Common stock, shares authorized | 2,500,000,000 | |
Common stock, shares, issued | 0 | |
Class C | ||
Common stock, par value (in usd per share) | $ 0.001 | |
Common stock, shares authorized | 2,500,000,000 | |
Common stock, shares, issued | 175,668,642 | |
Class D | ||
Common stock, par value (in usd per share) | $ 0.001 | |
Common stock, shares authorized | 2,500,000,000 | |
Common stock, shares, issued | 114,978,644 | |
Pledged as Collateral | ||
Loans held for sale, at fair value | $ 2,462,653 | 1,595,442 |
Servicing rights, at fair value | $ 379,850 | $ 300,465 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
REVENUES: | ||||
Interest income | $ 71,020 | $ 31,453 | $ 187,625 | $ 98,149 |
Interest expense | (56,785) | (29,553) | (165,130) | (88,881) |
Net interest income | 14,235 | 1,900 | 22,495 | 9,268 |
Gain on origination and sale of loans, net | 821,275 | 1,251,141 | 2,647,328 | 2,767,140 |
Origination income, net | 86,601 | 71,740 | 280,824 | 167,554 |
Servicing fee income | 102,429 | 48,406 | 279,738 | 121,520 |
Changes in fair value of servicing rights, net | (138,462) | (29,313) | (327,194) | (109,817) |
Other income | 37,678 | 25,056 | 116,487 | 58,115 |
Total net revenues | 923,756 | 1,368,930 | 3,019,678 | 3,013,780 |
EXPENSES: | ||||
Personnel expense | 449,152 | 441,818 | 1,523,012 | 1,022,734 |
Marketing and advertising expense | 131,971 | 60,435 | 355,730 | 173,628 |
Direct origination expense | 49,559 | 33,465 | 146,553 | 88,627 |
General and administrative expense | 50,013 | 52,372 | 149,984 | 120,565 |
Occupancy expense | 9,686 | 9,997 | 28,956 | 29,437 |
Depreciation and amortization | 8,688 | 8,585 | 25,827 | 27,122 |
Subservicing expense | 22,879 | 22,820 | 76,731 | 52,154 |
Other interest expense | 22,823 | 10,522 | 57,261 | 32,117 |
Total expenses | 744,771 | 640,014 | 2,364,054 | 1,546,384 |
Income before income taxes | 178,985 | 728,916 | 655,624 | 1,467,396 |
Income taxes | 24,708 | 567 | 47,210 | 1,457 |
Net income | 154,277 | 728,349 | 608,414 | 1,465,939 |
Net income attributable to noncontrolling interests | 102,802 | 728,349 | 503,503 | 1,465,939 |
Net income attributable to loanDepot, Inc. | $ 51,475 | $ 0 | $ 104,911 | $ 0 |
Earnings per share: | ||||
Basic (in usd per share) | $ 0.40 | $ 0.82 | ||
Diluted (in usd per share) | $ 0.40 | $ 0.82 | ||
Weighted average shares outstanding: | ||||
Basic (in shares) | 130,297,565 | 127,941,331 | ||
Diluted (in shares) | 130,297,565 | 127,941,331 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Redeemable I Units | Class X Common Unit | Class A | Class C | Class D | Class A and D | Common stockClass A | Common stockClass C | Common stockClass D | Treasury Stock | Additional paid-in capital | Retained Earnings (Deficit) | Retained Earnings (Deficit)Class C | Retained Earnings (Deficit)Class A and D | Non-controlling Interests | Non-controlling InterestsRedeemable I Units | Non-controlling InterestsClass X Common Unit | Non-controlling InterestsClass C | Non-controlling InterestsClass A and D |
Balance at beginning of period at Dec. 31, 2019 | $ 375,885 | $ 375,885 | ||||||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||||||||||||||
Redemptions/Repurchase | $ (65,308) | $ (220) | $ (65,308) | $ (220) | ||||||||||||||||
Stock-based compensation | 7,643 | 7,643 | ||||||||||||||||||
Dividends | (150,418) | (150,418) | ||||||||||||||||||
Net income | 1,465,939 | 1,465,939 | ||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | 1,633,521 | 1,633,521 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Dividends | (150,418) | (150,418) | ||||||||||||||||||
Net income | 1,465,939 | |||||||||||||||||||
Balance at beginning of period at Jun. 30, 2020 | 1,051,224 | 1,051,224 | ||||||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||||||||||||||
Redemptions/Repurchase | 0 | 0 | ||||||||||||||||||
Stock-based compensation | 945 | 945 | ||||||||||||||||||
Dividends | (146,997) | (146,997) | ||||||||||||||||||
Net income | 728,349 | 728,349 | ||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | 1,633,521 | 1,633,521 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Dividends | (146,997) | (146,997) | ||||||||||||||||||
Net income | 728,349 | |||||||||||||||||||
Balance at beginning of period at Dec. 31, 2020 | 1,656,613 | 1,656,613 | ||||||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||||||||||||||
Net income | 503,503 | |||||||||||||||||||
Balance at end of period at Sep. 30, 2021 | 1,123,041 | |||||||||||||||||||
Balance at beginning of period (in shares) at Dec. 31, 2020 | 0 | 0 | 0 | |||||||||||||||||
Balance at beginning of period at Dec. 31, 2020 | 1,656,613 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 608,414 | |||||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 19,575,763 | 175,668,642 | 114,978,644 | 17,984,214 | 175,668,642 | 114,978,644 | ||||||||||||||
Balance at end of period at Sep. 30, 2021 | 1,658,164 | $ 20 | $ 176 | $ 115 | (12,844) | 565,475 | (17,819) | 1,123,041 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||||||||||||||
Dividends | $ (8,517) | $ (6,095) | ||||||||||||||||||
Net income | 102,802 | |||||||||||||||||||
Balance at end of period at Sep. 30, 2021 | 1,123,041 | |||||||||||||||||||
Balance at beginning of period (in shares) at Jun. 30, 2021 | 12,541,086 | 181,268,155 | 114,978,644 | |||||||||||||||||
Balance at beginning of period at Jun. 30, 2021 | 1,568,834 | $ 13 | $ 181 | $ 115 | 562,658 | (44,821) | 1,050,688 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Deferred taxes and other tax adjustments associated with the reorganization and IPO | 1,717 | 1,717 | ||||||||||||||||||
Net issuance of common stock under stock-based compensation plans (in shares) | 5,443,128 | (5,599,513) | ||||||||||||||||||
Net issuance of common stock under stock-based compensation plans | (12,844) | $ 7 | $ (5) | (12,844) | (2) | |||||||||||||||
Dividends | $ (15,043) | $ (10,763) | $ (6,526) | $ (4,668) | ||||||||||||||||
Dividends | $ (8,517) | $ (6,095) | ||||||||||||||||||
Stock-based compensation | 2,597 | 1,102 | 1,495 | |||||||||||||||||
Distributions for taxes on behalf of shareholders, net | (30,611) | (13,279) | (17,332) | |||||||||||||||||
Net income | 154,277 | 51,475 | 102,802 | |||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 19,575,763 | 175,668,642 | 114,978,644 | 17,984,214 | 175,668,642 | 114,978,644 | ||||||||||||||
Balance at end of period at Sep. 30, 2021 | $ 1,658,164 | $ 20 | $ 176 | $ 115 | $ (12,844) | $ 565,475 | $ (17,819) | $ 1,123,041 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Class A and D | ||
Dividends declared (in usd per share) | $ 0.08 | $ 0.77 |
Class C | ||
Dividends declared (in usd per share) | $ 0.08 | $ 0.78 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 608,414 | $ 1,465,939 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization expense | 25,827 | 27,122 |
Amortization of operating lease right-of-use asset | 16,932 | 19,215 |
Amortization of debt issuance costs | 9,382 | 4,765 |
Gain on origination and sale of loans | (2,856,544) | (2,256,438) |
(Gain) loss on sale of servicing rights | (1,453) | 3,074 |
Fair value change in trading securities | 0 | 0 |
Provision for loss obligation on sold loans and servicing rights | 12,400 | 10,446 |
Increase in provision for deferred income taxes | 37,269 | 0 |
Fair value change in derivative assets | 312,586 | (587,935) |
Fair value change in derivative liabilities | (119,270) | 49,455 |
Premium received (paid) on derivatives | 4,376 | (2,986) |
Purchase of options contracts | (10,383) | 0 |
Fair value change in loans held for sale | 67,010 | (114,173) |
Fair value change in servicing rights | 224,812 | 232,598 |
Stock-based compensation expense | 64,349 | 7,643 |
Change in fair value of contingent consideration | (77) | 32,650 |
Originations of loans | (107,717,154) | (63,183,309) |
Proceeds from sales of loans | 107,911,005 | 63,874,371 |
Proceeds from principal payments | 119,822 | 43,307 |
Payments to investors for loan repurchases | (818,011) | (150,274) |
Disbursements from joint ventures | 8,765 | 6,633 |
Changes in operating assets and liabilities: | ||
Other changes in operating assets and liabilities | 41,105 | 99,754 |
Net cash used in operating activities | (2,058,838) | (418,143) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (43,830) | (19,625) |
Proceeds from sale of servicing rights | 332,931 | 6,023 |
Cash flows received on trading securities | 617 | 0 |
Investments in joint ventures | (1,115) | 0 |
Return of capital from joint ventures | 189 | 300 |
Net cash flows provided by (used in) investing activities | 288,792 | (13,302) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from borrowings on warehouse lines of credit | 121,009,551 | 63,014,591 |
Repayment of borrowings on warehouse lines of credit | (119,374,838) | (61,880,096) |
Proceeds from debt obligations | 1,179,037 | 169,100 |
Payments on debt obligations | (477,541) | (55,000) |
Payments of debt issuance costs | (15,839) | (4,503) |
Payments for contingent consideration | (113) | (13,268) |
Payments on financing lease obligation | (1,911) | (18,025) |
Treasury stock purchased to net settle and withhold taxes on vested shares | (12,844) | 0 |
Dividends and shareholder distributions | (419,732) | (152,332) |
Net cash provided by financing activities | 1,885,770 | 1,021,847 |
Net change in cash and cash equivalents and restricted cash | 115,724 | 590,402 |
Cash and cash equivalents and restricted cash at beginning of the period | 488,689 | 117,496 |
Cash and cash equivalents and restricted cash at end of the period | 604,413 | 707,898 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid (received) during the period for interest | 180,143 | 128,091 |
Cash paid (received) during the period for income taxes | 1,923 | 196 |
Supplemental disclosure of noncash investing and financing activities | ||
Operating leases right-of-use assets obtained in exchange for lease liabilities | 8,501 | 13,971 |
Trading securities retained in securitizations | 57,031 | 0 |
Purchase of equipment under financing leases | 168 | 2,468 |
Class I | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on repurchase of units | 0 | (38,400) |
Units | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on repurchase of units | $ 0 | $ (220) |
DESCRIPTION OF BUSINESS, PRESEN
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements were prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation were included. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report of loanDepot, Inc. on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). Nature of Operations loanDepot, Inc. was incorporated in Delaware on November 6, 2020 to facilitate the initial public offering (“IPO”) of its Class A common stock and related transactions in order to carry on the business of LD Holdings Group LLC (“LD Holdings”) and its consolidated subsidiaries loanDepot.com, LLC (“LDLLC”), Artemis Management, LLC (“ART”), LD Settlement Services, LLC (“LDSS”), mello Holdings, LLC (“Mello”), and mello Credit Strategies LLC (“MCS”). Unless otherwise noted or indicated by the context, the term the “Company” refers (1) prior to the consummation of the IPO and Reorganization described below, to LD Holdings and its consolidated subsidiaries, and (2) after the IPO and reorganization described below, to loanDepot, Inc. and its consolidated subsidiaries, including LD Holdings. The Company engages in the originating, financing, selling, securitizing, and servicing of residential mortgage loans, and engages in title, escrow, and settlement services for mortgage loan transactions. The Company derives income primarily from gains on the origination and sale of loans to investors, income from loan servicing, and fees charged for settlement services related to the origination and sale of loans. Initial Public Offering The Company's common stock began trading on The New York Stock Exchange on February 11, 2021 under the ticker symbol “LDI.” The IPO consisted of 3,850,000 shares of Class A common stock, $0.001 par value per share, at an offering price of $14.00 per share, pursuant to a Registration Statement on Form S-1. Prior to the IPO, the Company completed a reorganization by which it changed its equity structure to create a single class of LLC units in LD Holdings. Prior to that transaction, the capital structure consisted of different classes of membership interests held by certain members of LD Holdings (“Continuing LLC Members”). The LLC units were then exchanged on a one-for-one basis for Holdco Units and Class C common stock. The Continuing LLC Members have the right to exchange one Holdco Unit and one share of Class B common stock or Class C common stock, as applicable, together for cash or one share of Class A common stock at the Company’s election, subject to customary conversion rate adjustments for stock splits, stock dividends, and reclassifications. The reorganization is considered a transaction between entities under common control, therefore, the financial statements for the periods prior to the IPO and reorganization have been adjusted to combine the previously separate entities for presentation. Prior to the reorganization and IPO, the Company had not engaged in any business or other activities, except in connection with its formation. As a result of the IPO and reorganization: • loanDepot, Inc. is a holding company and its sole material asset is an equity interest in LD Holdings. LD Holdings continues to be a holding company and has no material assets other than its equity interests in its direct subsidiaries consisting of a 99.99% ownership in LDLLC (the majority asset of the group), and 100% equity ownership in ART, LDSS, Mello, and MCS. loanDepot, Inc. is the sole managing member of LD Holdings, and indirectly operates and controls all of LD Holdings’ business and affairs and consolidates the financial results of LD Holdings and its subsidiaries. The financial results of LD Holdings and its subsidiaries are consolidated with loanDepot, Inc., and the consolidated net earnings or loss are allocated to the noncontrolling interest to reflect the entitlement of the Continuing LLC Members. • The Company has entered into a tax receivable agreement (“TRA”) with certain funds managed by Parthenon Capital Partners, (the “Parthenon Stockholders”), Parthenon affiliates owning Holdco Units, and certain Continuing LLC Members, whereby loanDepot, Inc. will be obligated to pay such parties or their permitted assignees, 85% of the amount of cash tax savings, if any, in U.S. federal, state, and local taxes that loanDepot, Inc. realizes, or is deemed to realize as a result of future tax benefits from increases in tax basis. The TRA liability is accounted for as a contingent liability with amounts accrued when deemed probable and estimable. Summary of Significant Accounting Policies Our accounting policies are described below and in Note 1- Description of Business, Presentation and Summary of Significant Accounting Policies, of our audited consolidated financial statements included in our 2020 Form 10-K. Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the Financial Accounting Standards Board's (“FASB”) Accounting Standards Codification (“ASC” or the “Codification”). ASC 250 requires that a change in the reporting entity or the consummation of a transaction accounted for in a manner similar to a pooling of interests, i.e., a reorganization of entities under common control, be retrospectively applied to the financial statements of all prior periods when the financial statements are issued for a period that includes the date the change in reporting entity or the transaction occurred. The IPO and reorganization were considered transactions between entities under common control, therefore, the financial statements for the periods prior to the IPO and reorganization have been adjusted to combine the previously separate entities for presentation. The financial results of LD Holdings and its subsidiaries were therefore combined with loanDepot, Inc., and the consolidated net earnings or loss has been allocated to the noncontrolling interest to reflect the entitlement of the Continuing LLC Members. The accompanying consolidated financial statements include all of the assets, liabilities, and results of operations of the Company and consolidated variable interest entities (“VIEs”) in which the Company is the primary beneficiary. VIEs are entities that have a total equity investment at risk that is insufficient to permit the entity to finance its activities without additional subordinated financial support, whose equity investors at risk lack the ability to control the entity's activities, or is structured with non-substantive voting rights. The Company evaluates its associations with VIEs, both at inception and when there is a change in circumstance that requires reconsideration, to determine if the Company is the primary beneficiary and consolidation is required. A primary beneficiary is defined as a variable interest holder that has a controlling financial interest. A controlling financial interest requires both: (a) the power to direct the activities that most significantly impact the VIEs’ economic performance, and (b) the obligation to absorb losses or receive benefits of a VIE that could potentially be significant to the VIE. The Company has not provided financial or other support during the periods presented to any VIE that it was not previously contractually required to provide. Other entities that the Company does not consolidate, but for which it has significant influence over operating and financial policies, are accounted for using the equity method. All intercompany accounts and transactions have been eliminated in consolidation. Certain items in prior periods were reclassified to conform to the current presentation. Financing lease obligations are included as part of accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Gain on the origination and sale of loans, net was adjusted to exclude the change in fair value of forward sale contracts, including pair offs hedging MSRs, which are now included in the change in fair value of servicing rights, net on the consolidated statements of operations. The Company determined that this change would more appropriately reflect the hedged item and better align with industry practice. Gain on origination and sale of loans, net and change in fair value of servicing rights, net, in the current and prior periods along with the related financial statement disclosures were adjusted to reflect this reclassification in reports beginning after the first quarter of 2021. The Company has evaluated subsequent events for recognition or disclosure through the date of this report and has not identified any recordable or disclosable events that were not already reported in these consolidated financial statements or notes thereto. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management has made significant estimates in certain areas, including determining the fair value of loans held for sale, servicing rights, derivative assets and derivative liabilities, awards granted under the incentive equity plan, assets acquired and liabilities assumed in business combinations, and determining the loan loss obligation on sold loans. Actual results could differ from those estimates. Non-controlling interests loanDepot, Inc. is a holding company and its sole material asset is an equity interest in LD Holdings. LD Holdings continues to be a holding company and has no material assets other than its equity interests in its direct subsidiaries consisting of a 99.99% ownership in LDLLC (the majority asset of the group), and 100% equity ownership in ART, LDSS, Mello, and MCS. loanDepot, Inc. is the sole managing member of LD Holdings, and indirectly operates and controls all of LD Holdings’ business and affairs and consolidates the financial results of LD Holdings and its subsidiaries. The financial results of LD Holdings and its subsidiaries are consolidated with loanDepot, Inc., and the consolidated net earnings or loss will be allocated to the noncontrolling interest to reflect the entitlement of the Continuing LLC Members. Income Taxes The Company’s provision for income taxes is made for current and deferred income tax on pretax net income adjusted for permanent and temporary differences based on enacted tax laws and applicable statutory tax rates. The Company accounts for interest and penalties associated with income tax obligations as a component of income tax expense. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates for the periods in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the change. Deferred tax assets are recorded in prepaid expenses and other assets on the consolidated balance sheets. Deferred tax liabilities are recorded in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Following the IPO and Reorganization, the Company’s purchase of Holdco Units and any future exchanges of Holdco Units for cash or Class A Common Stock are expected to result in increases to the Company’s allocable tax basis in its assets. These increases in tax basis are expected to increase (for tax purposes) depreciation and amortization deductions allocable to the Company, and therefore reduce the amount of tax that the Company would otherwise be required to pay in the future. As a result, the Company has entered into a TRA with Parthenon Stockholders and certain Continuing LLC Members, whereby loanDepot, Inc. will be obligated to pay such parties or their permitted assignees, 85% of the amount of cash tax savings, if any, in U.S. federal, state, and local taxes that loanDepot, Inc. realizes, or is deemed to realize as a result of future tax benefits from increases in tax basis. The TRA liability is accounted for as a contingent liability within accounts payable, accrued expenses and other liabilities on the consolidated balance sheets with amounts accrued when deemed probable and estimable. The Company evaluates tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely than-not threshold of being sustained would be recorded as a tax benefit in the current period. Stock-Based Compensation Effective upon the completion of the IPO, the Company adopted the loanDepot, Inc. 2021 Omnibus Incentive Plan (the “2021 Plan”). The 2021 Plan allows for the grant of stock options, restricted stock, restricted stock units (“RSUs”), and stock appreciation rights. There are currently only RSUs granted under the 2021 Plan. The Company uses the grant-date fair value of equity awards to determine the compensation cost associated with each award. Compensation cost for service-based equity awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Compensation cost for awards with only service conditions that have graded vesting schedules is recognized on a straight-line basis over the requisite service period for the entire award such that compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. Expense is reduced for actual forfeitures as they occur. The cost of stock-based compensation is recorded to personnel expense. Earnings per share Basic net income per common share is calculated using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating security according to dividends declared (distributed earnings) and participation rights in undistributed earnings. Distributed and undistributed earnings are allocated between common and participating security shareholders based on their respective rights to receive dividends. According to the Company’s certificate of incorporation, the holders of Class A common stock and Class D common stock are entitled to share equally, on a per share basis, in dividends and other distributions of cash, property or shares of stock of the Company as may be declared by the board of directors. Diluted net income per common share is calculated using the more dilutive of either the treasury stock method or the two-class method. The dilutive calculation considers common stock issuable under the assumed conversion of Class C common stock to Class A common stock as well as restricted stock units granted under the Corporation’s stock plans using the treasury stock method, if dilutive. Concentration of Risk The Company has concentrated its credit risk for cash by maintaining deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash. Due to the nature of the mortgage lending industry, changes in interest rates may significantly impact revenue from originating mortgages and subsequent sales of loans to investors, which are the primary source of income for the Company. The Company originates mortgage loans on property located throughout the United States, with loans originated for property located in California totaling approximately 29% and 33% of total loan originations for the three and nine months ended September 30, 2021, respectively. The Company sells mortgage loans to various third-party investors. Three investors accounted for 41%, 33%, and 14% of the Company’s loan sales for the nine months ended September 30, 2021. No other investors accounted for more than 5% of the loan sales for the three and nine months ended September 30, 2021. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, Income Taxes related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. This ASU was effective for public business entities for fiscal years and interim periods beginning after December 15, 2020. The adoption of this guidance on January 1, 2021 did not have a significant effect on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provided optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the benefits of) reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective and apply to all entities, subject to meeting certain criteria, that have contract, hedging relationships, and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01 to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This guidance is effective upon issuance and allows application to contract changes as early as January 1, 2020. The Company has added alternative base rate language, which may include the secured overnight financing rate ("SOFR") to agreements for its warehouse and other lines of credit and debt obligations that use LIBOR. The Company is evaluating the potential impact that the adoption of this ASU will have on the consolidated financial statements at the transition of LIBOR. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company's consolidated financial statements include assets and liabilities that are measured based on their estimated fair values. Refer to Note 1 - Description of Business, Presentation and Summary of Significant Accounting Policies in the 2020 Form 10-K for information on the fair value hierarchy, valuation methodologies, and key inputs used to measure financial assets and liabilities recorded at fair value, as well as methods and assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. The following tables present the carrying amount and estimated fair value of financial instruments included in the consolidated financial statements. September 30, 2021 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 506,608 $ 506,608 $ — $ — Restricted cash 97,805 97,805 — — Loans held for sale, at fair value 8,873,736 — 8,873,736 — Derivative assets, at fair value 341,359 — 75,241 266,118 Servicing rights, at fair value 1,841,512 — — 1,841,512 Trading securities 56,412 — 56,412 — Loans eligible for repurchase 632,722 — 632,722 — Liabilities Warehouse and other lines of credit $ 8,212,142 $ — $ 8,212,142 $ — Derivative liabilities, at fair value 48,899 41,952 39 6,908 Servicing rights, at fair value (1) 4,818 — — 4,818 Debt obligations: Secured credit facilities 99,707 — 99,707 — 2020-VF1 Notes 10,382 — 10,382 — GMSR VFN 15,000 — 15,000 — Term notes 199,008 — 200,000 — Senior notes 1,084,654 — 1,066,278 — Liability for loans eligible for repurchase 632,722 — 632,722 — (1) Included in accounts payable and accrued expenses on the consolidated balance sheets. December 31, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 284,224 $ 284,224 $ — $ — Restricted cash 204,465 204,465 — — Loans held for sale, at fair value 6,955,424 — 6,955,424 — Derivative assets, at fair value 647,939 483 107 647,349 Servicing rights, at fair value 1,127,866 — — 1,127,866 Loans eligible for repurchase 1,246,158 — 1,246,158 — Liabilities Warehouse and other lines of credit $ 6,577,429 $ — $ 6,577,429 $ — Derivative liabilities, at fair value 168,169 4,299 163,566 304 Servicing rights, at fair value (1) 3,564 — — 3,564 Debt obligations: 2020-VF1 Notes 7,571 — 8,593 GMSR VFN 15,000 — 15,000 — Term notes 198,640 — 200,000 — Senior notes 491,255 — 518,245 — Liability for loans eligible for repurchase 1,246,158 — 1,246,158 — (1) Included in accounts payable and accrued expenses on the consolidated balance sheets. Financial Statement Items Measured at Fair Value on a Recurring Basis The following tables presents the Company’s assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy as of the dates indicated. September 30, 2021 Recurring Fair Value Measurements of Assets (Liabilities) Using: Quoted Market Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Measurements Fair value through net income: Assets: Loans held for sale $ — $ 8,873,736 $ — $ 8,873,736 Trading securities — 56,412 — 56,412 Derivative assets: Interest rate lock commitments — — 266,118 266,118 Forward sales contracts — 75,241 — 75,241 Servicing rights — — 1,841,512 1,841,512 Total assets at fair value $ — $ 9,005,389 $ 2,107,630 $ 11,113,019 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 6,908 $ 6,908 Interest rate swap futures 31,063 — — 31,063 Forward sales contracts — 39 — 39 Put options on treasuries 10,889 — — 10,889 Servicing rights (1) — — 4,818 4,818 Total liabilities at fair value $ 41,952 $ 39 $ 11,726 $ 53,717 (1) Included in accounts payable and accrued expenses on the consolidated balance sheets. December 31, 2020 Recurring Fair Value Measurements of Assets (Liabilities) Using: Quoted Market Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Measurements Fair value through net income: Assets: Loans held for sale $ — $ 6,955,424 $ — $ 6,955,424 Derivative assets: Interest rate lock commitments — — 647,349 647,349 Forward sales contracts — 107 — 107 Interest rate swap futures 483 — — 483 Servicing rights — — 1,127,866 1,127,866 Total assets at fair value $ 483 $ 6,955,531 $ 1,775,215 $ 8,731,229 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 304 $ 304 Forward sales contracts — 163,566 — 163,566 Put options on treasuries 4,299 — — 4,299 Servicing rights (1) — — 3,564 3,564 Total liabilities at fair value $ 4,299 $ 163,566 $ 3,868 $ 171,733 (1) Included in accounts payable and accrued expenses on the consolidated balance sheets. The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Interest Rate Lock Commitments (1) Servicing Rights, net (2) Balance at beginning of period $ 333,081 $ 1,776,395 $ 647,045 $ 1,124,302 Total net gains included in earnings (realized and unrealized) 640,372 233,166 1,749,343 1,079,525 Sales and settlements Sales — (172,867) — (367,133) Settlements (3) (558,918) — (1,585,368) — Transfers of IRLCs to closed loans (155,325) — (551,810) — Balance at end of period $ 259,210 $ 1,836,694 $ 259,210 $ 1,836,694 (1) Interest rate lock commitments include both assets and liabilities and are shown net. (2) Balance is net of $4.8 million servicing liability at September 30, 2021. (3) Funded amount for interest rate lock commitments. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Contingent Consideration Interest Rate Lock Commitments (1) Servicing Rights, net (2) Contingent Consideration Balance at beginning of period $ 519,514 $ 569,927 $ (13,169) $ 128,208 $ 444,443 $ (2,374) Total net gains (losses) included in earnings (realized and unrealized) 1,180,734 206,407 (19,670) 2,635,861 339,096 (32,650) Sales and settlements Sales — 659 — — (6,546) — Settlements (3) (767,645) — 11,083 (1,580,842) — 13,268 Transfers of IRLCs to closed loans (210,945) — — (461,569) — — Balance at end of period $ 721,658 $ 776,993 $ (21,756) $ 721,658 $ 776,993 $ (21,756) (1) Interest rate lock commitments include both assets and liabilities and are shown net. (2) Balance is net of $3.5 million servicing rights liability at September 30, 2020. (3) Settlements refer to the funded amount for interest rate lock commitments, and the payment amount for contingent consideration. The following presents the gains and losses included in earnings for the three and nine months ended September 30, 2021 and 2020 relating to the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Interest Rate Lock Commitments (1) Servicing Rights, net (3) Total net (losses) gains included in earnings $ (73,871) $ 233,166 $ (387,835) $ 1,079,525 Change in unrealized gains relating to assets and liabilities still held at period end $ 259,210 $ 326,527 $ 259,210 $ 1,126,433 (1) (Losses) included in gain on origination and sale of loans, net. (2) Includes $345.9 million in gains included in gain on origination and sale of loans, net and $112.7 million of losses included in change in fair value of servicing rights, net, for the three months ended September 30, 2021. (3) Includes $1.3 billion in gains included in gain on origination and sale of loans, net and $223.4 million of losses included in change in fair value of servicing rights, net, for the nine months ended September 30, 2021 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Contingent Consideration (4) Interest Rate Lock Commitments (1) Servicing Rights, net (3) Contingent Consideration (4) Total net gains (losses) included in earnings $ 202,144 $ 206,407 $ (19,670) $ 593,450 $ 339,096 $ (32,650) Change in unrealized gains (losses) relating to assets and liabilities still held at period end $ 721,658 $ 254,130 $ (19,670) $ 721,658 $ 457,478 $ (32,650) (1) Gains included in gain on origination and sale of loans, net. (2) Includes $262.4 million in gains included in gain on origination and sale of loans, net and $56.0 million in losses included in change in fair value of servicing rights, net, for the three months ended September 30, 2020. (3) Includes $574.8 million in gains included in gain on origination and sale of loans, net and $235.7 million in losses included in change in fair value of servicing rights, net, for the nine months ended September 30, 2020 (4) Losses included in general and administrative expense. The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring basis: September 30, 2021 December 31, 2020 Unobservable Input Range of inputs Weighted Average Range of inputs Weighted Average IRLCs: Pull-through rate 3.0% - 99.9% 76.1% 2.8% - 99.9% 70.5% Servicing rights Discount rate (1) 4.7% - 9.1% 6.0% 5.0% - 10.0% 6.2% Prepayment rate (1) 8.6% - 19.0% 10.1% 13.4% - 34.8% 14.0% Cost to service (per loan) $70 - $126 $84 $71 - $139 $89 (1) The Company estimates the fair value of MSRs using an option-adjusted spread (“OAS”) model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Company’s prepayment model, and then discounts these cash flows at risk-adjusted rates. Financial Statement Items Measured at Fair Value on a Nonrecurring Basis The Company did not have any material assets or liabilities that were recorded at fair value on a non-recurring basis as of September 30, 2021 or December 31, 2020. Financial Statement Items Measured at Amortized Cost Warehouse lines - The Company’s warehouse lines of credit bear interest at a rate that is periodically adjusted based on a market index. The carrying value of warehouse lines of credit approximates fair value. Debt obligations, net - Debt consists of secured credit facilities, term notes, and senior notes. The Company’s secured credit facilities and term notes accrue interest at a stated rate of 30-day or 90-day LIBOR, or other alternative base rate such as SOFR, plus a margin, they are highly liquid and short-term in nature and as a result, their carrying value approximated fair value as of September 30, 2021 and December 31, 2020. Fair value of the Company’s Senior Notes issued in October 2020 and March 2021 were estimated using the quoted market prices at September 30, 2021. The Senior Notes are classified as Level 2 in the fair value hierarchy. |
BALANCE SHEET NETTING
BALANCE SHEET NETTING | 9 Months Ended |
Sep. 30, 2021 | |
Offsetting [Abstract] | |
BALANCE SHEET NETTING | BALANCE SHEET NETTING Certain derivatives, loan warehouse and repurchase agreements are subject to master netting arrangements or similar agreements. In certain circumstances the Company may elect to present certain financial assets, liabilities, and related collateral subject to master netting arrangements in a net position on the consolidated balance sheets. The Company has elected to present net derivative assets and liabilities obtained from (or posted to) its counterparties when subject to a master netting arrangement that is legally enforceable on all counterparties in the event of default. The table below represents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged. Warehouse lines and secured debt obligations were secured by sufficient collateral with fair value that exceeded the liability amount recorded on the consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively. September 30, 2021 Gross amounts recognized Gross amounts offset in consolidated balance sheets Net amounts presented in consolidated balance sheets Gross amounts not offset in consolidated balance sheets Net amount Financial instruments Cash collateral Assets: Forward delivery contracts $ 126,084 $ (50,843) $ 75,241 $ — $ (88,040) $ (12,799) Total Assets $ 126,084 $ (50,843) $ 75,241 $ — $ (88,040) $ (12,799) Liabilities: Forward delivery contracts $ 50,882 $ (50,843) $ 39 $ — $ (30) $ 9 Put options on treasuries 10,889 — 10,889 — — 10,889 Interest rate swap futures 31,063 — 31,063 — — 31,063 Warehouse lines of credit 8,212,142 — 8,212,142 (8,212,142) — — Secured debt obligations (1) 325,089 — 325,089 (325,089) — — Total Liabilities $ 8,630,065 $ (50,843) $ 8,579,222 $ (8,537,231) $ (30) $ 41,961 (1) Secured debt obligations as of September 30, 2021 included the Secured Credit Facilities, GMSR VFN, Term Notes, and 2020-VF1 Notes. December 31, 2020 Gross amounts recognized Gross amounts offset in consolidated balance sheets Net amounts presented in consolidated balance sheets Gross amounts not offset in consolidated balance sheets Net amount Financial instruments Cash collateral Assets: Forward delivery contracts $ 71,029 $ (70,922) $ 107 $ — $ — $ 107 Interest rate swap futures 483 — 483 — — 483 Total Assets $ 71,512 $ (70,922) $ 590 $ — $ — $ 590 Liabilities: Forward delivery contracts $ 234,488 $ (70,922) $ 163,566 $ — $ — $ 163,566 Put options on treasuries 4,299 — 4,299 — — 4,299 Warehouse lines of credit 6,577,429 — 6,577,429 (6,577,429) — — Secured debt obligations (1) 223,593 — 223,593 (223,593) — — Total Liabilities $ 7,039,809 $ (70,922) $ 6,968,887 $ (6,801,022) $ — $ 167,865 (1) Secured debt obligations as of December 31, 2020 included the GMSR VFN, Term Notes, and 2020-VF1 Notes. The Company has entered into agreements with counterparties, which include netting arrangements whereby the counterparties are entitled to settle their positions on a net basis. In certain circumstances, the Company is r\equired to provide certain counterparties financial instruments and cash collateral against derivative financial instruments, warehouse lines of |
LOANS HELD FOR SALE, AT FAIR VA
LOANS HELD FOR SALE, AT FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
LOANS HELD FOR SALE, AT FAIR VALUE | LOANS HELD FOR SALE, AT FAIR VALUE The following table represents the unpaid principal balance of LHFS by product type as of September 30, 2021 and December 31, 2020: September 30, December 31, Amount % Amount % Conforming - fixed $ 5,764,345 66% $ 5,223,177 78% Conforming - ARM 192,737 2 260 — Government - fixed 990,566 12 1,108,936 16 Government - ARM 68,973 1 45,243 1 Other - residential mortgage loans 1,659,792 19 312,954 5 Consumer loans 2,020 — 2,541 — 8,678,433 100% 6,693,111 100% Fair value adjustment 195,303 262,313 Total $ 8,873,736 $ 6,955,424 A summary of the changes in the balance of loans held for sale is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Balance at beginning of period $ 9,120,653 $ 3,303,438 $ 6,955,424 $ 3,681,840 Origination and purchase of loans 31,902,260 27,101,570 107,717,154 63,183,309 Sales (32,200,708) (25,598,952) (106,414,376) (62,192,701) Repurchases 138,666 36,767 802,366 145,049 Principal payments (53,316) (6,820) (119,822) (43,306) Fair value (loss) gain (33,819) 52,361 (67,010) 114,173 Balance at end of period $ 8,873,736 $ 4,888,364 $ 8,873,736 $ 4,888,364 Gain on origination and sale of loans, net is comprised of the following components: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Premium from loan sales $ 674,782 $ 968,550 $ 1,552,668 $ 2,125,730 Servicing rights 345,882 262,401 1,302,884 574,768 Unrealized gains (losses) from derivative assets and liabilities 42,984 195,383 (139,483) 498,090 Realized (losses) gains from derivative assets and liabilities (156,514) (184,861) 194,035 (456,969) Discount points, rebates and lender paid costs (49,585) (38,198) (193,043) (72,031) Fair value (loss) gain (33,818) 52,361 (67,010) 114,173 Provision for loan loss obligations for loans sold (2,456) (4,495) (2,723) (16,621) Total gain on origination and sale of loans, net $ 821,275 $ 1,251,141 $ 2,647,328 $ 2,767,140 The Company had $36.9 million and $25.8 million of loans held for sale on non-accrual status as of September 30, 2021 and December 31, 2020, respectively. |
SERVICING RIGHTS, AT FAIR VALUE
SERVICING RIGHTS, AT FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
Transfers and Servicing [Abstract] | |
SERVICING RIGHTS, AT FAIR VALUE | SERVICING RIGHTS, AT FAIR VALUE The outstanding principal balance of the servicing portfolio was comprised of the following: September 30, December 31, Conventional $ 112,166,336 $ 74,459,448 Government 33,138,846 28,471,810 Total servicing portfolio $ 145,305,182 $ 102,931,258 A summary of the unpaid principal balance underlying servicing rights is as follows: September 30, December 31, Current loans $ 143,345,702 $ 100,358,713 Loans 30 - 89 days delinquent 455,284 709,946 Loans 90 or more days delinquent or in foreclosure 1,504,196 1,862,599 Total servicing portfolio (1) $ 145,305,182 $ 102,931,258 (1) At September 30, 2021 and December 31, 2020, 1.1% and 2.4%, respectively, of the servicing portfolio was in forbearance as a result of payment relief efforts afforded to borrowers under the Coronavirus Aid, Relief, and Economic Security Act and other regulatory guidance. A summary of the changes in the balance of servicing rights is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Balance at beginning of period $ 1,776,395 $ 569,927 $ 1,124,302 $ 444,443 Additions 345,882 262,401 1,302,884 574,768 Sales proceeds, net (182,892) (2,319) (365,680) (9,620) Changes in fair value: Due to changes in valuation inputs or assumptions (3,461) (3,009) 98,295 (112,059) Other changes in fair value (1) (99,230) (50,007) (323,107) (120,539) Balance at end of period (2) $ 1,836,694 $ 776,993 $ 1,836,694 $ 776,993 (1) Other changes in fair value include fall out and decay from loan payoffs and principal amortization. (2) Balance is net of $4.8 million and $3.5 million of servicing rights liability at September 30, 2021 and 2020, respectively. The following is a summary of the components of servicing fee income as reported in the Company’s consolidated statements of operations: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Contractual servicing fees $ 99,640 $ 46,234 $ 271,374 $ 112,917 Late, ancillary and other fees 2,789 2,172 8,364 8,603 Total servicing fee income $ 102,429 $ 48,406 $ 279,738 $ 121,520 The following is a summary of the components of changes in fair value of servicing rights, net as reported in the Company’s consolidated statements of operations: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Changes in fair value: Due to changes in valuation inputs or assumptions $ (3,461) $ (3,009) $ 98,295 $ (112,059) Other changes in fair value (1) (99,230) (50,007) (323,107) (120,539) Realized losses on sales of servicing rights (14,218) (2,606) (8,224) (2,549) Net (loss) gain from derivatives hedging servicing rights (21,553) 26,309 (94,158) 125,330 Changes in fair value of servicing rights, net $ (138,462) $ (29,313) $ (327,194) $ (109,817) (1) Other changes in fair value include fall out and decay from loan payoffs and principal amortization. The table below illustrates hypothetical changes in fair values of servicing rights, caused by assumed immediate changes to key assumptions that are used to determine fair value. Servicing Rights Sensitivity Analysis September 30, December 31, Fair Value of Servicing Rights, net $ 1,836,694 $ 1,124,302 Change in Fair Value from adverse changes: Discount Rate: Increase 100 basis points (80,001) (45,745) Increase 200 basis points (153,883) (87,800) Cost of Servicing: Increase 10% (18,600) (11,556) Increase 20% (37,284) (23,112) Prepayment Speed: Increase 10% (66,889) (63,351) Increase 20% (130,552) (122,294) Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in servicing rights values may differ significantly from those displayed above. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIESDerivatives instruments utilized by the Company primarily include interest rate lock commitments, forward sales contracts, MBS put options, put options on treasuries, and interest rate swap futures. Derivative financial instruments are recognized as assets or liabilities and are measured at fair value. The Company accounts for derivatives as free-standing derivatives and does not designate any derivative financial instruments for hedge accounting. All derivative financial instruments are recognized on the consolidated balance sheets at fair value with changes in the fair values being reported in current period earnings. The Company does not use derivative financial instruments for purposes other than in support of its risk management activities. Refer to Note 1- Description of Business, Presentation and Summary of Significant Accounting Policies and Note 3- Fair Value for further details on derivatives in the 2020 Form 10-K. The following summarizes the Company’s outstanding derivative instruments: Fair Value Notional Balance Sheet Location Asset Liability September 30, 2021: Interest rate lock commitments $ 16,362,632 Derivative asset, at fair value $ 266,118 $ — Interest rate lock commitments 2,020,206 Derivative liabilities, at fair value — 6,908 Forward sales contracts 38,373,245 Derivative asset, at fair value 75,241 — Forward sales contracts 203,024 Derivative liabilities, at fair value — 39 Put options on treasuries Derivative asset, at fair value — — Put options on treasuries 36,950 Derivative liabilities, at fair value — 10,889 Interest rate swap futures Derivative asset, at fair value — — Interest rate swap futures 12,235 Derivative liabilities, at fair value — 31,063 Total derivative financial instruments $ 341,359 $ 48,899 Fair Value Notional Balance Sheet Location Asset Liability December 31, 2020: Interest rate lock commitments $ 31,365,494 Derivative asset, at fair value $ 647,349 $ — Interest rate lock commitments 99,635 Derivative liabilities, at fair value — 304 Forward sales contracts 44,694 Derivative asset, at fair value 107 — Forward sales contracts 54,397,834 Derivative liabilities, at fair value — 163,566 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 27,803 Derivative liabilities, at fair value — 4,299 Interest rate swap futures 2,350 Derivative asset, at fair value 483 — Interest rate swap futures — Derivative liabilities, at fair value — — Total derivative financial instruments $ 647,939 $ 168,169 Because many of the Company’s current derivative agreements are not exchange-traded, the Company is exposed to credit loss in the event of nonperformance by the counterparty to the agreements. The Company controls this risk through credit monitoring procedures including financial analysis, dollar limits and other monitoring procedures. The notional amount of the contracts does not represent the Company’s exposure to credit loss. The following summarizes the realized and unrealized net gains and (losses) on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included: Three Months Ended Nine Months Ended Derivative instrument Statements of Operations Location 2021 2020 2021 2020 Interest rate lock commitments, net Gain on origination and sale of loans, net $ (73,871) $ 202,144 $ (387,835) $ 593,450 Forward sales contracts (1) Gain on origination and sale of loans, net (29,867) (181,681) 477,215 (530,186) Interest rate swap futures Gain on origination and sale of loans, net (29,683) 534 (81,891) (5,739) Put options Gain on origination and sale of loans, net 19,891 (10,475) 47,063 (16,404) Forward sales contracts (1) Change in fair value of servicing rights, net (5,838) 28,290 (84,842) 106,315 Interest rate swap futures Change in fair value of servicing rights, net (14,033) (1,350) (6,855) 20,274 Put options Change in fair value of servicing rights, net (1,682) (631) (2,461) (1,259) Total realized and unrealized (losses) gains on derivative financial instruments $ (135,083) $ 36,831 $ (39,606) $ 166,451 (1) Amounts include pair-off settlements. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The determination of whether the assets and liabilities of the VIEs are consolidated in the consolidated balance sheets or not consolidated in the consolidated balance sheets depends on the terms of the related transaction and the Company’s continuing involvement, if any, with the VIE. The Company is deemed the primary beneficiary and therefore consolidates VIEs for which it has both (a) the power, through voting rights or similar rights, to direct the activities that most significantly impact the VIE's economic performance, and (b) benefits, as defined, from the VIE. The Company determines whether it holds a significant variable interest in a VIE based on a consideration of both qualitative and quantitative factors regarding the nature, size, and form of its involvement with the VIE. The Company assesses whether it is the primary beneficiary of a VIE on an ongoing basis. The Company did not provide any non-contractual financial support to VIEs for both the nine months ended September 30, 2021 and year ended December 31, 2020. Consolidated VIEs The Company’s consolidated VIEs currently include VIEs established for its securitization activities. The table below presents a summary of the carrying value and balance sheet classification of assets and liabilities in the Company’s consolidated VIEs. September 30, December 31, Assets Loans held for sale, at fair value $ 2,462,653 $ 1,595,442 Restricted cash — 170,413 Servicing rights, at fair value 379,850 300,465 $ 2,842,503 $ 2,066,320 Liabilities Warehouse and other lines of credit $ 2,399,544 $ 1,699,803 Debt obligations, net 214,008 213,640 $ 2,613,552 $ 1,913,443 The Company’s economic exposure to loss from outstanding third-party financing related to consolidated VIEs is limited to the carrying value of the consolidated VIE assets. The Company executes private-label securitizations to finance mortgage loans and mortgage servicing rights. In executing a securitization transaction, the Company sells assets to the securitization trusts. The securitization facility is funded through the issuance of beneficial interests in the securitized assets. The beneficial interests take the form of either notes and/or trust certificates, which are sold to investors. These beneficial interests are collateralized by the transferred assets and entitle the investors to specified cash flows generated from the underlying assets. The Company’s exposure to these entities is primarily through its role as seller, servicer, and administrator of these entities. The Company has retained risks in the securitizations including customary representations and warranties. Additionally, the Company holds certain conditional repurchase options specific to securitizations that allow it to repurchase assets from the securitization entity. The Company, as seller, has an option to prepay and to redeem outstanding classes of issued notes at the Company’s discretion after a set time period has elapsed. The Company generally has discretion regarding when or if it will exercise these options, but would do so only when it was in the Company’s best interest. Servicing functions include, but are not limited to, general collection activity on current and noncurrent accounts, loss mitigation efforts including repossession and sale of collateral, as well as preparing and furnishing statements summarizing the asset and beneficial interest performance. These servicing responsibilities constitute the Company’s continued involvement in the transferred assets. Non-Consolidated VIEs The nature, purpose, and activities of non-consolidated VIEs currently encompass the Company’s investments in retained interests from securitizations and joint ventures. The table below presents a summary of the nonconsolidated VIEs for which the Company holds variable interests. September 30, 2021 Carrying value of variable interests Maximum Total assets in VIEs Assets Liabilities Retained interests (1) $ 56,412 $ — $ 56,412 $ 1,085,924 Investments in joint ventures 18,353 — 18,353 12,295 $ 74,765 $ — $ 74,765 December 31, 2020 Carrying value of variable interests Maximum Total assets in VIEs Assets Liabilities Investments in joint ventures $ 17,528 $ — $ 17,528 $ 15,342 (1) Carrying value of retained interests is included within trading securities on the consolidated balance sheets. Retained interests During the second and third quarters of 2021, the Company completed the sale and securitization of non-owner occupied residential mortgage loans. Pursuant to the credit risk retention requirements, the Company, as sponsor, is required to retain at least a 5% economic interest in the credit risk of the assets collateralizing the securitization transactions. The trading securities retained represent a variable interest in the securitization. The Company determined it was not the primary beneficiary of the VIE. The Company’s continuing involvement is limited to customary servicing obligations as servicing administrator associated with retained servicing rights and the receipt of principal and interest associated with the trading securities. Investments in joint ventures |
WAREHOUSE AND OTHER LINES OF CR
WAREHOUSE AND OTHER LINES OF CREDIT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
WAREHOUSE AND OTHER LINES OF CREDIT | WAREHOUSE AND OTHER LINES OF CREDIT At September 30, 2021, the Company is a party to 15 lines of credit with lenders providing $11.1 billion of warehouse and revolving credit facilities. The warehouse and revolving credit facilities are used to fund, and are secured by, residential mortgage loans held for sale. Interest expense on warehouse and revolving lines of credit is recorded to interest expense on the consolidated statements of operations. The warehouse and revolving lines of credit are repaid using proceeds from the sale of loans. The base interest rates on the Company’s warehouse lines bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. Some of the lines carry additional fees in the form of annual facility fees charged on the total line amount, commitment fees charged on the committed portion of the line and non-usage fees charged when monthly usage falls below a certain utilization percentage. The weighted average interest rate at September 30, 2021 totaled 2.06%. The Company’s warehouse lines are scheduled to expire through 2023 under one two The base interest rates for all warehouse lines of credit are subject to increase based upon the characteristics of the underlying loans collateralizing the lines of credit, including, but not limited to product type and number of days held for sale. Certain of the warehouse line lenders require the Company to maintain cash accounts with minimum required balances at all times. As of September 30, 2021 and December 31, 2020, there was $7.0 million and $6.7 million, respectively, held in these accounts which are recorded as a component of restricted cash on the consolidated balance sheets. Under the terms of these warehouse lines, the Company is required to maintain various financial and other covenants. These financial covenants include, but are not limited to, maintaining (i) minimum tangible net worth, (ii) minimum liquidity, (iii) a minimum current ratio, (iv) a maximum distribution requirement, (v) a maximum leverage ratio, (vi) pre-tax net income requirements and (vii) a maximum warehouse capacity ratio. As of September 30, 2021, the Company was in compliance with all warehouse lending related covenants. Securitization Facilities In May 2019, the Company issued notes through a securitization facility (“2019-1 Securitization Facility”) backed by a revolving warehouse line of credit. The 2019-1 Securitization Facility is secured by newly originated, first-lien, fixed rate or adjustable rate, residential mortgage loans which are originated in accordance with the criteria of Fannie Mae or Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2019-1 Securitization Facility issued $300.0 million in notes and certificates that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2019-1 Securitization Facility will terminate on the earlier of (i) the two-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In May 2021, the Company fully repaid the notes and certificates of the 2019-1 Securitization Facility. In October 2019, the Company issued notes through an additional securitization facility (“2019-2 Securitization Facility”) backed by a revolving warehouse line of credit. The 2019-2 Securitization Facility is secured by newly originated, first-lien, fixed rate or adjustable rate, residential mortgage loans which are originated in accordance with the criteria of Fannie Mae or Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2019-2 Securitization Facility issued $300.0 million in notes and certificates that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2019-2 Securitization Facility will terminate on the earlier of (i) the two-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In October 2021, the Company fully repaid the notes and certificates of the 2019-2 Securitization Facility. In October 2020, the Company issued notes through an additional securitization facility (“2020-1 Securitization Facility”) backed by a revolving warehouse line of credit. The 2020-1 Securitization Facility is secured by newly originated, first-lien, residential mortgage loans eligible for purchase by Fannie Mae and Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2020-1 Securitization Facility issued $600.0 million in notes and certificates that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2020-1 Securitization Facility will terminate on the earlier of (i) the two-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In December 2020, the Company issued notes through an additional securitization facility (“2020-2 Securitization Facility”) backed by a revolving warehouse line of credit. The 2020-2 Securitization Facility is secured by newly originated, first-lien, fixed rate residential mortgage loans eligible for purchase by the GSEs or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2020-2 Securitization Facility issued $500.0 million in notes and certificates that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2020-2 Securitization Facility will terminate on the earlier of (i) the three year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In February 2021, the Company issued notes and a class of owner trust certificates through an additional securitization facility (“2021-1 Securitization Facility”) backed by a revolving warehouse line of credit. The 2021-1 Securitization Facility is secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans which are originated in accordance with the criteria of Fannie Mae and Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2021-1 Securitization Facility issued $500.0 million in notes that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2021-1 Securitization Facility will terminate on the earlier of (i) the three-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In April 2021, the Company issued notes and a class of owner trust certificates through an additional securitization facility (“2021-2 Securitization Facility”) backed by a revolving warehouse line of credit. The 2021-2 Securitization Facility is secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans which are originated in accordance with the criteria of Fannie Mae and Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2021-2 Securitization Facility issued $500.0 million in notes that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2021-2 Securitization Facility will terminate on the earlier of (i) the three-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. The following table presents certain information on warehouse borrowings: Outstanding Balance Committed Uncommitted Total Expiration September 30, December 31, Facility 1 (1) (2) $ 1,000,000 $ 500,000 $ 1,500,000 10/29/2021 $ 1,327,881 $ 1,665,005 Facility 2 (3) — 600,000 600,000 9/26/2022 378,870 226,891 Facility 3 — 500,000 500,000 4/19/2022 341,899 206,863 Facility 4 (4) 100,000 300,000 400,000 10/6/2021 262,104 335,096 Facility 5 (3) — 200,000 200,000 N/A 244 — Facility 6 (3)(5) 100,000 1,000,000 1,100,000 10/11/2021 989,433 626,741 Facility 7 (6) 750,000 1,250,000 2,000,000 5/5/2023 1,555,688 919,068 Facility 8 (7) — — — 5/14/2021 — 300,000 Facility 9 (7) 300,000 — 300,000 10/23/2021 300,000 299,803 Facility 10 — 850,000 850,000 N/A 365,145 358,761 Facility 11 (8) 600,000 — 600,000 10/25/2022 600,000 600,000 Facility 12 (8) 500,000 — 500,000 12/17/2023 499,544 500,000 Facility 13 — 1,000,000 1,000,000 9/23/2022 386,920 259,247 Facility 14 (7) — — — 2/10/2021 — 279,954 Facility 15 (8) 500,000 — 500,000 2/2/2024 500,000 — Facility 16 (8) 500,000 — 500,000 4/23/2024 500,000 — Facility 17 — 500,000 500,000 9/22/2022 204,414 — Total $ 4,350,000 $ 6,700,000 $ 11,050,000 $ 8,212,142 $ 6,577,429 (1) The total facility is available both to fund loan originations and also provide liquidity under a gestation facility to finance recently sold MBS up to the MBS settlement date. (2) In October 2021, this facility was extended to mature in October 2022. (3) In addition to the warehouse line, the lender provides a separate gestation facility to finance recently sold MBS up to the MBS settlement date. (4) In October 2021, this facility was extended to mature in November 2021. (5) In October 2021, this facility was extended to mature in December 2021. (6) In addition to the outstanding balance secured by mortgage loans, the Company has $15.0 million outstanding to finance servicing rights included within debt obligations in the consolidated balance sheets. (7) This facility expired. (8) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. The following table presents certain information on warehouse borrowings: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Maximum outstanding balance during the period $ 9,078,257 $ 4,622,250 $ 9,180,276 $ 4,622,250 Average balance outstanding during the period 8,515,189 3,633,792 8,066,303 3,433,434 Collateral pledged (loans held for sale) 8,675,750 4,805,413 8,675,750 4,805,413 Weighted average interest rate during the period 2.22 % 2.41 % 2.25 % 2.65 % The following table presents certain information on outstanding debt. Outstanding Balance September 30, December 31, Secured debt obligations, net: Secured credit facilities $ 99,707 $ — 2020-VF1 Notes 10,382 7,571 GMSR VFN 15,000 15,000 Term notes 199,008 198,640 Total secured debt obligations, net 324,097 221,211 Unsecured debt obligations, net: Senior notes 1,084,654 491,255 Total unsecured debt obligations, net 1,084,654 491,255 Total debt obligations, net $ 1,408,751 $ 712,466 Secured Credit Facilities Original Secured Credit Facility. The Company entered into a $25.0 million revolving secured credit facility (the “Original Secured Credit Facility”) in October 2014 to finance servicing rights and for other working capital needs and general corporate purposes. The Company has entered into subsequent amendments with the lender to increase and decrease the size of the facility and extend the maturity date. The Original Secured Credit Facility is secured by servicing rights and accrues interest at a base rate per annum of 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. As of September 30, 2021, there was $48.0 million outstanding on the Original Secured Credit Facility with a maturity of June 2022. At September 30, 2021, capacity under the facility was $268.0 million and the Company had pledged $816.8 million in fair value of servicing rights as collateral to secure the outstanding advances. Advances for servicing rights are determined using a borrowing base formula calculated against the fair market value of the pledged servicing rights. Under the Original Secured Credit Facility, the Company is required to satisfy certain financial covenants, including minimum tangible net worth, minimum liquidity, maximum leverage and debt service coverage. As of September 30, 2021, the Company was in compliance with all such covenants. Second Secured Credit Facility. The Company amended one of its warehouse line facilities to provide a $50.0 million sub-limit to finance servicing rights and for other working capital needs and general corporate purposes (the “Second Secured Credit Facility”) in May 2015. In March 2021, we terminated the sub-limit on this facility. Securities Financing In June 2021, the Company entered into a master repurchase agreement to finance securities retained in a securitization ("Securities Financing"). During the third quarter of 2021, the Company entered into two additional master repurchase agreements for Securities Financing. The Securities Financing has an advance rate between 60% and 92% based on the class of security and accrues interest at a rate of 90-day LIBOR, or other alternative base rate such as SOFR, plus a margin. At September 30, 2021, there was $51.7 million in Securities Financing outstanding. 2020-VF1 Notes In September 2020, the Company, through its indirect-wholly owned subsidiary loanDepot Agency Advance Receivables Trust (the “Advance Receivables Trust”), entered into a variable funding note facility for the financing of servicing advance receivables with respect to residential mortgage loans serviced by it on behalf of Fannie Mae and Freddie Mac. Pursuant to an indenture, the Advance Receivables Trust issued up to $130.0 million in variable funding notes (the “2020-VF1 Notes”). The 2020-VF1 Notes accrue interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum and mature in September 2022 (unless earlier redeemed in accordance with their terms). The 2020-VF1 Notes are secured by LDLLC's rights to reimbursement for advances made pursuant to Fannie Mae and Freddie Mac requirements. At September 30, 2021, there was $10.4 million in the Advance Receivables Trust outstanding. Under this facility, the Company is required to satisfy certain financial covenants including minimum levels of tangible net worth and liquidity and maximum levels of consolidated leverage. As of September 30, 2021, the Company was in compliance with all such covenants. GMSR VFN The Company entered into a master repurchase agreement with one of its wholly-owned subsidiaries, loanDepot GMSR Master Trust (“GMSR Trust”) in August 2017 to finance Ginnie Mae mortgage servicing rights (the “GNMA MSRs”) owned by the Company (the “GNMA MSR Facility”) pursuant to the terms of a base indenture (the “GNMA MSR Indenture”). The Company pledged participation certificates representing beneficial interests in GNMA MSRs to the GMSR Trust. The Company is party to an acknowledgment agreement with Ginnie Mae whereby we may, from time to time pursuant to the terms of any supplemental indenture, issue to institutional investors variable funding notes or one or more series of term notes, in each case secured by the participation certificates relating to the GNMA MSRs held by the GMSR Trust. In August 2017, the Company, through the GMSR Trust, issued a variable funding note (the “GMSR VFN”) in the initial amount of $65.0 million. The maximum amount of the GMSR VFN is $150.0 million. The GMSR VFN is secured by GNMA MSRs and bears interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum. The Company has entered into subsequent agreements to amend certain terms of the GMSR VFN and extend the maturity date. As of September 30, 2021, there was $15.0 million in GMSR VFN outstanding. In October 2021, the maturity date was extended to November 2021. Under this facility, the Company is required to satisfy certain financial covenants. As of September 30, 2021, the Company was in compliance with all such covenants. Term Notes In October 2018, the GMSR Trust was amended and restated for the purpose of issuing the Series 2018-GT1 Term Notes (“Term Notes”). The Term Notes accrue interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum and mature in October 2023 or, if extended pursuant to the terms of the related indenture supplement, October 2025 (unless earlier redeemed in accordance with their terms). At September 30, 2021, there was $199.0 million in Term Notes outstanding, net of $1.0 million in deferred financing costs. Under this facility, the Company is required to satisfy certain financial covenants. As of September 30, 2021, the Company was in compliance with all such covenants. Senior Notes In October 2020, the Company issued $500.0 million in aggregate principal amount of 6.50% senior unsecured notes due 2025, (the “2025 Senior Notes”). The 2025 Senior Notes will mature on November 1, 2025. Interest on the 2025 Senior Notes accrues at a rate of 6.50% per annum, payable semi-annually in arrears on May 1 and November 1 of each year. At any time prior to November 1, 2022, we may redeem some or all of the 2025 Senior Notes at a price equal to 100% of the principal amount of the 2025 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption plus a make-whole premium. We may also redeem the 2025 Senior Notes at our option, in whole or in part, at any time on or after November 1, 2022 at various redemption prices. In addition, subject to certain conditions at any time prior to November 1, 2022, we may redeem up to 40% of the principal amount of the 2025 Senior Notes with the proceeds of certain equity offerings at a redemption price of 106.50% of the principal amount of the 2025 Senior Notes, together with accrued and unpaid interest, if any, to, but not including, the date of redemption. At September 30, 2021, there was $492.8 million in 2025 Senior Notes outstanding, net of $7.2 million in deferred financing costs. In March 2021, the Company issued $600.0 million in aggregate principal amount of 6.125% senior unsecured notes due 2028 (the “2028 Senior Notes” and together with the 2025 Senior Notes, the "Senior Notes"). The 2028 Senior Notes will mature on April 1, 2028. Interest on the 2028 Senior Notes accrues at a rate of 6.125% per annum, payable semi-annually in arrears on April 1 and October 1 of each year. At any time prior to April 1, 2024, we may redeem some or all of the 2028 Senior Notes at a price equal to 100% of the principal amount of the 2028 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption plus a make-whole premium. We may also redeem the 2028 Senior Notes at our option, in whole or in part, at any time on or after April 1, 2024 at various redemption prices. In addition, subject to certain conditions at any time prior to April 1, 2024, we may redeem up to 40% of the principal amount of the 2028 Senior Notes with the proceeds of certain equity offerings at a redemption price of 106.125% of the principal amount of the 2028 Senior Notes, together with accrued and unpaid interest, if any, to, but not including, the date of redemption. At September 30, 2021, there was $591.9 million in 2028 Senior Notes outstanding, net of $8.1 million in deferred financing costs. Interest Expense |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | WAREHOUSE AND OTHER LINES OF CREDIT At September 30, 2021, the Company is a party to 15 lines of credit with lenders providing $11.1 billion of warehouse and revolving credit facilities. The warehouse and revolving credit facilities are used to fund, and are secured by, residential mortgage loans held for sale. Interest expense on warehouse and revolving lines of credit is recorded to interest expense on the consolidated statements of operations. The warehouse and revolving lines of credit are repaid using proceeds from the sale of loans. The base interest rates on the Company’s warehouse lines bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. Some of the lines carry additional fees in the form of annual facility fees charged on the total line amount, commitment fees charged on the committed portion of the line and non-usage fees charged when monthly usage falls below a certain utilization percentage. The weighted average interest rate at September 30, 2021 totaled 2.06%. The Company’s warehouse lines are scheduled to expire through 2023 under one two The base interest rates for all warehouse lines of credit are subject to increase based upon the characteristics of the underlying loans collateralizing the lines of credit, including, but not limited to product type and number of days held for sale. Certain of the warehouse line lenders require the Company to maintain cash accounts with minimum required balances at all times. As of September 30, 2021 and December 31, 2020, there was $7.0 million and $6.7 million, respectively, held in these accounts which are recorded as a component of restricted cash on the consolidated balance sheets. Under the terms of these warehouse lines, the Company is required to maintain various financial and other covenants. These financial covenants include, but are not limited to, maintaining (i) minimum tangible net worth, (ii) minimum liquidity, (iii) a minimum current ratio, (iv) a maximum distribution requirement, (v) a maximum leverage ratio, (vi) pre-tax net income requirements and (vii) a maximum warehouse capacity ratio. As of September 30, 2021, the Company was in compliance with all warehouse lending related covenants. Securitization Facilities In May 2019, the Company issued notes through a securitization facility (“2019-1 Securitization Facility”) backed by a revolving warehouse line of credit. The 2019-1 Securitization Facility is secured by newly originated, first-lien, fixed rate or adjustable rate, residential mortgage loans which are originated in accordance with the criteria of Fannie Mae or Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2019-1 Securitization Facility issued $300.0 million in notes and certificates that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2019-1 Securitization Facility will terminate on the earlier of (i) the two-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In May 2021, the Company fully repaid the notes and certificates of the 2019-1 Securitization Facility. In October 2019, the Company issued notes through an additional securitization facility (“2019-2 Securitization Facility”) backed by a revolving warehouse line of credit. The 2019-2 Securitization Facility is secured by newly originated, first-lien, fixed rate or adjustable rate, residential mortgage loans which are originated in accordance with the criteria of Fannie Mae or Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2019-2 Securitization Facility issued $300.0 million in notes and certificates that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2019-2 Securitization Facility will terminate on the earlier of (i) the two-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In October 2021, the Company fully repaid the notes and certificates of the 2019-2 Securitization Facility. In October 2020, the Company issued notes through an additional securitization facility (“2020-1 Securitization Facility”) backed by a revolving warehouse line of credit. The 2020-1 Securitization Facility is secured by newly originated, first-lien, residential mortgage loans eligible for purchase by Fannie Mae and Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2020-1 Securitization Facility issued $600.0 million in notes and certificates that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2020-1 Securitization Facility will terminate on the earlier of (i) the two-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In December 2020, the Company issued notes through an additional securitization facility (“2020-2 Securitization Facility”) backed by a revolving warehouse line of credit. The 2020-2 Securitization Facility is secured by newly originated, first-lien, fixed rate residential mortgage loans eligible for purchase by the GSEs or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2020-2 Securitization Facility issued $500.0 million in notes and certificates that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2020-2 Securitization Facility will terminate on the earlier of (i) the three year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In February 2021, the Company issued notes and a class of owner trust certificates through an additional securitization facility (“2021-1 Securitization Facility”) backed by a revolving warehouse line of credit. The 2021-1 Securitization Facility is secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans which are originated in accordance with the criteria of Fannie Mae and Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2021-1 Securitization Facility issued $500.0 million in notes that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2021-1 Securitization Facility will terminate on the earlier of (i) the three-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. In April 2021, the Company issued notes and a class of owner trust certificates through an additional securitization facility (“2021-2 Securitization Facility”) backed by a revolving warehouse line of credit. The 2021-2 Securitization Facility is secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans which are originated in accordance with the criteria of Fannie Mae and Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2021-2 Securitization Facility issued $500.0 million in notes that bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The 2021-2 Securitization Facility will terminate on the earlier of (i) the three-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full and (iii) the date of the occurrence and continuance of an event of default. The following table presents certain information on warehouse borrowings: Outstanding Balance Committed Uncommitted Total Expiration September 30, December 31, Facility 1 (1) (2) $ 1,000,000 $ 500,000 $ 1,500,000 10/29/2021 $ 1,327,881 $ 1,665,005 Facility 2 (3) — 600,000 600,000 9/26/2022 378,870 226,891 Facility 3 — 500,000 500,000 4/19/2022 341,899 206,863 Facility 4 (4) 100,000 300,000 400,000 10/6/2021 262,104 335,096 Facility 5 (3) — 200,000 200,000 N/A 244 — Facility 6 (3)(5) 100,000 1,000,000 1,100,000 10/11/2021 989,433 626,741 Facility 7 (6) 750,000 1,250,000 2,000,000 5/5/2023 1,555,688 919,068 Facility 8 (7) — — — 5/14/2021 — 300,000 Facility 9 (7) 300,000 — 300,000 10/23/2021 300,000 299,803 Facility 10 — 850,000 850,000 N/A 365,145 358,761 Facility 11 (8) 600,000 — 600,000 10/25/2022 600,000 600,000 Facility 12 (8) 500,000 — 500,000 12/17/2023 499,544 500,000 Facility 13 — 1,000,000 1,000,000 9/23/2022 386,920 259,247 Facility 14 (7) — — — 2/10/2021 — 279,954 Facility 15 (8) 500,000 — 500,000 2/2/2024 500,000 — Facility 16 (8) 500,000 — 500,000 4/23/2024 500,000 — Facility 17 — 500,000 500,000 9/22/2022 204,414 — Total $ 4,350,000 $ 6,700,000 $ 11,050,000 $ 8,212,142 $ 6,577,429 (1) The total facility is available both to fund loan originations and also provide liquidity under a gestation facility to finance recently sold MBS up to the MBS settlement date. (2) In October 2021, this facility was extended to mature in October 2022. (3) In addition to the warehouse line, the lender provides a separate gestation facility to finance recently sold MBS up to the MBS settlement date. (4) In October 2021, this facility was extended to mature in November 2021. (5) In October 2021, this facility was extended to mature in December 2021. (6) In addition to the outstanding balance secured by mortgage loans, the Company has $15.0 million outstanding to finance servicing rights included within debt obligations in the consolidated balance sheets. (7) This facility expired. (8) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. The following table presents certain information on warehouse borrowings: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Maximum outstanding balance during the period $ 9,078,257 $ 4,622,250 $ 9,180,276 $ 4,622,250 Average balance outstanding during the period 8,515,189 3,633,792 8,066,303 3,433,434 Collateral pledged (loans held for sale) 8,675,750 4,805,413 8,675,750 4,805,413 Weighted average interest rate during the period 2.22 % 2.41 % 2.25 % 2.65 % The following table presents certain information on outstanding debt. Outstanding Balance September 30, December 31, Secured debt obligations, net: Secured credit facilities $ 99,707 $ — 2020-VF1 Notes 10,382 7,571 GMSR VFN 15,000 15,000 Term notes 199,008 198,640 Total secured debt obligations, net 324,097 221,211 Unsecured debt obligations, net: Senior notes 1,084,654 491,255 Total unsecured debt obligations, net 1,084,654 491,255 Total debt obligations, net $ 1,408,751 $ 712,466 Secured Credit Facilities Original Secured Credit Facility. The Company entered into a $25.0 million revolving secured credit facility (the “Original Secured Credit Facility”) in October 2014 to finance servicing rights and for other working capital needs and general corporate purposes. The Company has entered into subsequent amendments with the lender to increase and decrease the size of the facility and extend the maturity date. The Original Secured Credit Facility is secured by servicing rights and accrues interest at a base rate per annum of 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. As of September 30, 2021, there was $48.0 million outstanding on the Original Secured Credit Facility with a maturity of June 2022. At September 30, 2021, capacity under the facility was $268.0 million and the Company had pledged $816.8 million in fair value of servicing rights as collateral to secure the outstanding advances. Advances for servicing rights are determined using a borrowing base formula calculated against the fair market value of the pledged servicing rights. Under the Original Secured Credit Facility, the Company is required to satisfy certain financial covenants, including minimum tangible net worth, minimum liquidity, maximum leverage and debt service coverage. As of September 30, 2021, the Company was in compliance with all such covenants. Second Secured Credit Facility. The Company amended one of its warehouse line facilities to provide a $50.0 million sub-limit to finance servicing rights and for other working capital needs and general corporate purposes (the “Second Secured Credit Facility”) in May 2015. In March 2021, we terminated the sub-limit on this facility. Securities Financing In June 2021, the Company entered into a master repurchase agreement to finance securities retained in a securitization ("Securities Financing"). During the third quarter of 2021, the Company entered into two additional master repurchase agreements for Securities Financing. The Securities Financing has an advance rate between 60% and 92% based on the class of security and accrues interest at a rate of 90-day LIBOR, or other alternative base rate such as SOFR, plus a margin. At September 30, 2021, there was $51.7 million in Securities Financing outstanding. 2020-VF1 Notes In September 2020, the Company, through its indirect-wholly owned subsidiary loanDepot Agency Advance Receivables Trust (the “Advance Receivables Trust”), entered into a variable funding note facility for the financing of servicing advance receivables with respect to residential mortgage loans serviced by it on behalf of Fannie Mae and Freddie Mac. Pursuant to an indenture, the Advance Receivables Trust issued up to $130.0 million in variable funding notes (the “2020-VF1 Notes”). The 2020-VF1 Notes accrue interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum and mature in September 2022 (unless earlier redeemed in accordance with their terms). The 2020-VF1 Notes are secured by LDLLC's rights to reimbursement for advances made pursuant to Fannie Mae and Freddie Mac requirements. At September 30, 2021, there was $10.4 million in the Advance Receivables Trust outstanding. Under this facility, the Company is required to satisfy certain financial covenants including minimum levels of tangible net worth and liquidity and maximum levels of consolidated leverage. As of September 30, 2021, the Company was in compliance with all such covenants. GMSR VFN The Company entered into a master repurchase agreement with one of its wholly-owned subsidiaries, loanDepot GMSR Master Trust (“GMSR Trust”) in August 2017 to finance Ginnie Mae mortgage servicing rights (the “GNMA MSRs”) owned by the Company (the “GNMA MSR Facility”) pursuant to the terms of a base indenture (the “GNMA MSR Indenture”). The Company pledged participation certificates representing beneficial interests in GNMA MSRs to the GMSR Trust. The Company is party to an acknowledgment agreement with Ginnie Mae whereby we may, from time to time pursuant to the terms of any supplemental indenture, issue to institutional investors variable funding notes or one or more series of term notes, in each case secured by the participation certificates relating to the GNMA MSRs held by the GMSR Trust. In August 2017, the Company, through the GMSR Trust, issued a variable funding note (the “GMSR VFN”) in the initial amount of $65.0 million. The maximum amount of the GMSR VFN is $150.0 million. The GMSR VFN is secured by GNMA MSRs and bears interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum. The Company has entered into subsequent agreements to amend certain terms of the GMSR VFN and extend the maturity date. As of September 30, 2021, there was $15.0 million in GMSR VFN outstanding. In October 2021, the maturity date was extended to November 2021. Under this facility, the Company is required to satisfy certain financial covenants. As of September 30, 2021, the Company was in compliance with all such covenants. Term Notes In October 2018, the GMSR Trust was amended and restated for the purpose of issuing the Series 2018-GT1 Term Notes (“Term Notes”). The Term Notes accrue interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum and mature in October 2023 or, if extended pursuant to the terms of the related indenture supplement, October 2025 (unless earlier redeemed in accordance with their terms). At September 30, 2021, there was $199.0 million in Term Notes outstanding, net of $1.0 million in deferred financing costs. Under this facility, the Company is required to satisfy certain financial covenants. As of September 30, 2021, the Company was in compliance with all such covenants. Senior Notes In October 2020, the Company issued $500.0 million in aggregate principal amount of 6.50% senior unsecured notes due 2025, (the “2025 Senior Notes”). The 2025 Senior Notes will mature on November 1, 2025. Interest on the 2025 Senior Notes accrues at a rate of 6.50% per annum, payable semi-annually in arrears on May 1 and November 1 of each year. At any time prior to November 1, 2022, we may redeem some or all of the 2025 Senior Notes at a price equal to 100% of the principal amount of the 2025 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption plus a make-whole premium. We may also redeem the 2025 Senior Notes at our option, in whole or in part, at any time on or after November 1, 2022 at various redemption prices. In addition, subject to certain conditions at any time prior to November 1, 2022, we may redeem up to 40% of the principal amount of the 2025 Senior Notes with the proceeds of certain equity offerings at a redemption price of 106.50% of the principal amount of the 2025 Senior Notes, together with accrued and unpaid interest, if any, to, but not including, the date of redemption. At September 30, 2021, there was $492.8 million in 2025 Senior Notes outstanding, net of $7.2 million in deferred financing costs. In March 2021, the Company issued $600.0 million in aggregate principal amount of 6.125% senior unsecured notes due 2028 (the “2028 Senior Notes” and together with the 2025 Senior Notes, the "Senior Notes"). The 2028 Senior Notes will mature on April 1, 2028. Interest on the 2028 Senior Notes accrues at a rate of 6.125% per annum, payable semi-annually in arrears on April 1 and October 1 of each year. At any time prior to April 1, 2024, we may redeem some or all of the 2028 Senior Notes at a price equal to 100% of the principal amount of the 2028 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption plus a make-whole premium. We may also redeem the 2028 Senior Notes at our option, in whole or in part, at any time on or after April 1, 2024 at various redemption prices. In addition, subject to certain conditions at any time prior to April 1, 2024, we may redeem up to 40% of the principal amount of the 2028 Senior Notes with the proceeds of certain equity offerings at a redemption price of 106.125% of the principal amount of the 2028 Senior Notes, together with accrued and unpaid interest, if any, to, but not including, the date of redemption. At September 30, 2021, there was $591.9 million in 2028 Senior Notes outstanding, net of $8.1 million in deferred financing costs. Interest Expense |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of the provision for income taxes are summarized below. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Total income before income taxes and non-controlling interest $ 178,985 $ 728,916 655,624 1,467,396 Provision for income taxes 24,708 567 47,210 1,457 Effective tax provision rate 13.8 % 0.1 % 7.2 % 0.1 % The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to its organizational structure. Prior to the IPO, income taxes for LD Holdings at the consolidated level were primarily federal, state, and local taxes for ACT, a C Corporation. As part of the completion of the IPO, the Company became a C Corporation subject to federal, state, and local income taxes with respect to its share of net taxable income of LD Holdings. As of September 30, 2021, the Company had a deferred tax asset before any valuation allowance of $56 thousand and a deferred tax liability of $202.3 million. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In conjunction with its joint ventures, the Company entered into agreements to provide services to the joint ventures for which it receives and pays fees. Services for which the Company earns fees comprise loan processing and administrative services (legal, accounting, human resources, data processing and management information, assignment processing, post-closing, underwriting, facilities management, quality control, management consulting, risk management, promotions, public relations, advertising and compliance with credit agreements). The Company also originates eligible mortgage loans referred to it by the joint ventures for which the Company pays the joint ventures a broker fee. Fees earned, costs incurred, and amounts payable to or receivable from joint ventures were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Loan processing and administrative services fee income $ 3,650 $ 3,835 $ 10,757 $ 10,017 Loan origination broker fees expense 22,749 21,456 63,457 55,323 September 30, December 31, Amounts (payable) receivable from joint ventures $ (3,307) $ 2,196 The Company paid management fees to a shareholder of the Company of $0.2 million during the nine months ended September 30, 2021 and $0.2 million and $0.8 million during the three and nine months ended September 30, 2020, respectively. The Company paid consulting fees to a shareholder of the Company of $16 thousand and $57 thousand during the three and nine months ended September 30, 2021. The Company employed certain individuals who provided services to a shareholder whose salaries totaled $78 thousand and $0.3 million during the three and nine months ended September 30, 2021 and $51 thousand and $0.2 million during three and nine months ended September 30, 2020, respectively. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY As a result of the IPO and reorganization discussed in Note 1- Description of Business, Presentation and Summary of Significant Accounting Policies, the financial statements for the periods prior to the IPO were adjusted to combine the previously separate entities for presentation. Prior to the IPO, the Company completed a reorganization by which it changed its equity structure to create a single class of LLC Units in LD Holdings. Prior to that transaction, the capital structure consisted of different classes of membership interests held by Continuing LLC Members. The LLC Units were then exchanged on a one-for-one basis for Holdco Units and Class C common stock. The Continuing LLC Members have the right to exchange one Holdco Unit and one share of Class B common stock or Class C common stock, as applicable, together for cash or one share of Class A common stock at the Company’s election, subject to customary conversion rate adjustments for stock splits, stock dividends, and reclassifications. The Company consolidates the financial results of LD Holdings and reports noncontrolling interest related to the interests held by the Continuing LLC Members. The noncontrolling interest of $1.1 billion and $1.7 billion as of September 30, 2021 and December 31, 2020, respectively, represented the economic interest in LD Holdings held by the Continuing LLC Members. The following table summarizes the ownership of LD Holdings as of September 30, 2021. Holding Member Interests: Holdco Units Ownership Percentage loanDepot, Inc. 132,962,858 43.08% Continuing LLC Members 175,668,642 56.92% Total 308,631,500 100.00% |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The stock-based compensation expense recognized on all share-based awards was $2.6 million and $64.3 million for the three and nine months ended September 30, 2021 and $0.9 million and $7.6 million for the three and nine months ended September 30, 2020. As of September 30, 2021, there was $32.1 million of unrecognized compensation related to all unvested awards. LDI Awards Effective upon the completion of the IPO, the Company adopted the 2021 Plan. The 2021 Plan allows for the grant of stock options, restricted stock, RSUs, and stock appreciation rights. The Company reserved a total of 16,250,000 shares of common stock for issuance pursuant to the 2021 Plan, which amount shall be increased on the first day of each fiscal year during the term of the 2021 Plan commencing with the 2022 fiscal year by (1) 2% of the total number of shares of common stock outstanding on the last day of the immediately preceding fiscal year, or (ii) a lesser amount determined by the Company's board of directors. There are currently only RSUs granted under the 2021 Plan. The following is a summary of RSU activity for the three and nine months ended September 30, 2021. Three Months Ended Nine Months Ended 2021 2021 Weighted Average Weighted Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested - beginning of period 1,069,573 $ 22.02 — $ — Granted 516,234 10.40 3,884,350 23.05 Vested (14,654) 14.06 (2,248,197) 26.29 Forfeited/Cancelled — — (65,000) 26.45 Unvested - end of period 1,571,153 18.27 1,571,153 18.27 Total compensation expense for the LDI awards was $1.9 million and $62.3 million for the three and nine months ended ended September 30, 2021, respectively. Unrecognized compensation expense related to these RSUs was $25.6 million and is expected to be recognized over a weighted average period of 3.64 years. Holdco Units Prior to the IPO, the Company’s 2009 Incentive Equity Plan, 2012 Incentive Equity Plan, and 2015 Incentive Equity Plan (collectively, the “Plans”) provided for the granting of Class Z, Class Y, Class X, and Class W Common Units of LD Holdings to employees, managers, consultants, and advisors of the Company and its subsidiaries. Participants that received grants or purchased Class Z, Class Y, Class X, or Class W Common Units of LD Holdings pursuant to the Plans were required to become a party to the Limited Liability Company Agreement. As part of the IPO and reorganization discussed in Note 1- Description of Business, Presentation, and Summary of Significant Accounting Policies, any outstanding units were equitably adjusted and replaced with a single new class of LLC Units that were exchanged on a one-for-one basis for Class A Holdco Units. No further awards will be granted under the Plans as both the Plans and LLC Agreement were terminated. The following table presents a summary of the changes in awards subsequent to the conversion into Class A Holdco Units for the three and nine months ended ended September 30, 2021: Three Months Ended Nine Months Ended 2021 2021 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Unvested - beginning of period 14,650,795 $ 0.50 19,632,883 $ 0.50 Granted — — — — Vested (1,420,510) 0.49 (4,816,920) 0.51 Forfeited/Cancelled (90,704) 0.50 (1,676,382) 0.52 Unvested - end of period 13,139,581 0.50 13,139,581 0.50 The following table presents a summary of the changes in Class Z, Class Y, Class X, Class W and Class V Common Units for the period January 1, 2021 through February 10, 2021 prior to the conversion to Class A Holdco Units described above and for the three and nine months ended September 30, 2020. January 1, 2021 Shares Weighted Average Grant Date Fair Value Unvested - beginning of period 610,497,758 $ 0.016 Vested (12,656,379) 0.016 Forfeited/Cancelled (3,552,286) 0.016 Unvested - end of period 594,289,093 0.016 Three Months Ended Nine Months Ended 2020 2020 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Unvested - beginning of period 745,740,350 $ 0.016 100,679,480 $ 0.006 Granted — — 1,227,342,174 0.016 Vested (26,693,033) 0.016 (533,303,418) 0.016 Forfeited/Cancelled — — (75,670,919) 0.013 Unvested - end of period 719,047,317 0.016 719,047,317 0.016 The following assumptions were used for the grants during the nine months ended September 30, 2020: Risk-free interest rate 0.30 % Expected life 1.7 years Expected volatility 160.0 - 175.0% Total compensation expense associated with the Holdco Units was $0.7 million and $2.1 million for the three and nine months ended September 30, 2021 and $0.9 million and $7.6 million for the three and nine months ended September 30, 2020, respectively. At September 30, 2021 and December 31, 2020, the total unrecognized compensation cost related to unvested Holdco unit grants was $6.5 million and $9.5 million, respectively. This cost is expected to be recognized over the next 2.99 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share of Class A common stock and Class D common stock is computed by dividing net income attributable to loanDepot, Inc. by the weighted-average number of shares of Class A common stock and Class D common stock, respectively, outstanding during the period. Diluted earnings per share of Class A common stock and Class D common stock is computed by dividing net income attributable to loanDepot, Inc. by the weighted-average number of shares of Class A common stock and Class D common stock respectively, outstanding adjusted to give effect to potentially dilutive securities. Earnings per share information has not been presented for the three and nine months ended September 30, 2020. The basic and diluted earnings per share period for the three and nine months ended September 30, 2021 represents the period after February 11, 2021, wherein the Company had outstanding Class A common stock and Class D common stock. There was no Class B common stock outstanding as of September 30, 2021. The following table sets forth the calculation of basic and diluted earnings per share for the periods following the reorganization and IPO for Class A common stock and Class D common stock: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Class A Class D Total Class A Class D Total Net income attributable to loanDepot, Inc. $ 6,052 $ 45,423 $ 51,475 $ 9,233 $ 95,678 $ 104,911 Weighted average shares - basic 15,318,921 114,978,644 130,297,565 11,259,896 116,681,435 127,941,331 Earnings per share - basic $ 0.40 $ 0.40 $ 0.40 $ 0.82 $ 0.82 $ 0.82 Net income allocated to common stockholders - diluted $ 6,052 $ 45,423 $ 51,475 $ 9,233 $ 95,678 $ 104,911 Weighted average shares - diluted 15,318,921 114,978,644 130,297,565 11,259,896 116,681,435 127,941,331 Earnings per share - diluted $ 0.40 $ 0.40 $ 0.40 $ 0.82 $ 0.82 $ 0.82 For the period from February 11, 2021 to September 30, 2021, 195,111,599 shares of Class C common stock were evaluated for the assumed exchange of noncontrolling interests and determined to be anti-dilutive, and thus were excluded from the computation of diluted earnings per share. For the three months ended September 30, 2021, 191,579,524 shares of Class C common stock were evaluated for the assumed exchange of noncontrolling interests and determined to be anti-dilutive, and thus were excluded from the computation of diluted earnings per share. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Escrow Services In conducting its operations, the Company, through its wholly-owned subsidiaries, LDSS and ACT, routinely hold customers' assets in escrow pending completion of real estate financing transactions. These amounts are maintained in segregated bank accounts and are offset with the related liabilities resulting in no amounts reported in the accompanying consolidated balance sheets. The balances held for the Company’s customers totaled $336.5 million and $377.3 million at September 30, 2021 and December 31, 2020, respectively. Legal Proceedings The Company is a defendant in, or a party to, legal actions and proceedings that arise in the ordinary course of business. In some of these actions and proceedings, claims for monetary damages are asserted against the Company. These matters include actions alleging improper lending practices, improper servicing, quiet title actions, improper foreclosure practices, violations of consumer protection laws, etc. and on account of consumer bankruptcies. In many of these actions, the Company may not be the real party of interest (because the Company is not the servicer of the loan or the holder of the note) but it may appear in the pleadings because it is in the chain of title to property over which there may be a dispute. Such matters may be indemnified and managed by the appropriate party, which is generally the Company’s subservicer. In other cases, such as lien avoidance cases brought in bankruptcy, the Company is insured by title insurance, and the case is turned over to the title insurer who tenders the Company’s defense. In some of these actions and proceedings, claims for monetary damages are asserted against the Company. In view of the inherent difficulty of predicting the outcome of such legal actions and proceedings, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss related to each pending matter may be, if any. The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing, and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory proceedings utilizing the latest information available. Any estimated loss is subject to significant judgment and is based upon currently available information, a variety of assumptions, and known and unknown uncertainties. Where available information indicates that it is probable a liability has been incurred and the Company can reasonably estimate the amount of the loss, an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued. During the second quarter of 2021, the Company settled, on an individual basis, a putative Telephone Consumer Protection Act (“TCPA”) class action for a nominal amount. The Company previously disclosed a second putative TCPA class action where (i) the Company filed dispositive motions to dismiss the claims, (ii) the court granted the Company’s motion to stay the matter pending the outcome of a circuit court’s decision in a TCPA mater in which the Company is not a party, and (iii) the Company has determined that the legal action will not have a material adverse effect on the financial condition of the Company. On December 24, 2020, the Company received a demand letter from one of the senior members of its operations team alleging, among other things, loan origination noncompliance and various employment related claims, including hostile work environment and gender discrimination, with unspecified damages. The executive has since resigned her position with the Company. The parties participated in pre-litigation mediation in May 2021. The parties did not resolve the matter at mediation and a complaint has been filed with the Superior Court of the State of California, County of Orange on September 21, 2021. While the Company’s management does not believe these allegations have merit, defending such allegations could result in substantial costs and a diversion of management’s attention and resources. The ultimate outcome of the other legal proceedings is uncertain, and the amount of any future potential loss is not considered probable or estimable. The Company will incur defense costs and other expenses in connection with these legal proceedings. If the final resolution of any legal proceedings is unfavorable, it could have a material adverse effect on the Company’s business and financial condition. Based on the Company’s current understanding of these pending legal actions and proceedings, management does not believe that judgments or settlements arising from pending or threatened legal matters, individually or in the aggregate, will have a material adverse effect on the consolidated financial position, operating results or cash flows of the Company. However, unfavorable resolutions could affect the consolidated financial position, results of operations or cash flows for the years in which they are resolved. Compliance Matters During the fourth quarter of 2019, an increase in mortgage originations resulted in an increase in title orders and loan settlements, creating personnel and operational pressures within the Company. The Company increased staffing, adjusted schedules, and enhanced processes, but still experienced constraints in order to meet settlement timelines. Specifically, there was an increase in the number of days between receipt of funds from the originating lender and disbursement of those funds to pay off those loan transactions. In 2019, the Company initiated a review to refund consumers for any overage in per diem charges due to delays based on loan program and state property requirements. The Company established an accrual of $4.8 million as of December 31, 2019 for its estimate of the remaining refunds. As of January 2021, the Company had completed its review and processed refunds that totaled $4.2 million of which $3.9 million were completed throughout 2020 and the remaining $0.3 million in January 2021. As a result of this event and in order to prevent recurrence, the Company has decreased the number of states in which they accept orders in order to manage pipelines and routinely review key performance indicators along with pipeline estimates from their customers. Regulatory Requirements The Company is subject to various capital requirements by the U.S. Department of Housing and Urban Development (“HUD”); lenders of the warehouse lines of credit; and secondary markets investors. Failure to maintain minimum capital requirements could result in the inability to participate in HUD-assisted mortgage insurance programs, to borrow funds from warehouse line lenders or to sell or service mortgage loans. As of September 30, 2021, the Company was in compliance with its selling and servicing capital requirements. Commitments to Extend Credit The Company enters into IRLCs with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. These commitments expose the Company to market risk if interest rates change and the loan is not economically hedged or committed to an investor. The Company is also exposed to credit loss if the loan is originated and not sold to an investor and the customer does not perform. The collateral upon extension of credit typically consists of a first deed of trust in the mortgagor’s residential property. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. Total commitments to originate loans as of September 30, 2021 and December 31, 2020 approximated $18.4 billion and $31.5 billion, respectively. These loan commitments are treated as derivatives and are carried at fair value, refer to Note 7 - Derivative Financial Instruments and Hedging Activities for further information on derivatives. Loan Repurchase Reserve When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local law. The Company’s whole loan sale agreements generally require it to repurchase loans if the Company breached a representation or warranty given to the loan purchaser. Additionally, the Company has repurchase obligations for personal loans facilitated through its banking relationship in the case where personal identification fraud is discovered at the inception of the loan. The Company’s loan repurchase reserve for sold loans is reflected in accounts payable and accrued expenses. There have been charge-offs associated with early payoffs, early payment defaults and losses related to representations, warranties and other provisions for the three and nine months ended September 30, 2021 and 2020. The activity related to the loan loss obligation for sold loans is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Balance at beginning of period $ 26,626 $ 25,430 $ 33,591 $ 17,677 Provision for loan losses 2,456 4,495 2,723 16,621 Payments, realized losses and other (2,094) (2,374) (9,326) (6,747) Balance at end of period $ 26,988 $ 27,551 $ 26,988 $ 27,551 TRA Liability |
REGULATORY CAPITAL AND LIQUIDIT
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Mortgage Banking [Abstract] | |
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS | REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS The Company, through certain subsidiaries, is required to maintain minimum net worth, liquidity and other financial requirements specified in certain of its selling and servicing agreements, including: • Ginnie Mae single-family issuers . The eligibility requirements include net worth of $2.5 million plus 0.35% of outstanding Ginnie Mae single-family obligations and a liquidity requirement equal to the greater of $1.0 million or 0.10% of outstanding Ginnie Mae single-family securities. • Fannie Mae and Freddie Mac. The eligibility requirements for seller/servicers include tangible net worth of $2.5 million plus 0.25% of the Company’s total single-family servicing portfolio, excluding loans subserviced for others and a liquidity requirement equal to 0.35% of the aggregate UPB serviced for the agencies plus 2.0% of total nonperforming agency servicing UPB in excess of 6%. • HUD . The eligibility requirements include a minimum adjusted net worth of $1.0 million plus 1% of the total volume in excess of $25.0 million of FHA Single Family Mortgages originated, underwritten, serviced, and/or purchased during the prior fiscal year, up to a maximum required adjusted net worth of $2.5 million. • Fannie Mae, Freddie Mac and Ginnie Mae. The Company is also required to hold a ratio of Adjusted/Tangible Net Worth to Total Assets greater than 6%. To the extent that these requirements are not met, the Company may be subject to a variety of regulatory actions which could have a material adverse impact on our results of operations and financial condition. The most restrictive of the minimum net worth and capital requirements require the Company to maintain a minimum adjusted net worth balance of $112.5 million as of September 30, 2021. As of September 30, 2021, the Company was in compliance with the net worth, liquidity and other financial requirements of its selling and servicing requirements. |
DESCRIPTION OF BUSINESS, PRES_2
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation and Non-controlling interests | Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the Financial Accounting Standards Board's (“FASB”) Accounting Standards Codification (“ASC” or the “Codification”). ASC 250 requires that a change in the reporting entity or the consummation of a transaction accounted for in a manner similar to a pooling of interests, i.e., a reorganization of entities under common control, be retrospectively applied to the financial statements of all prior periods when the financial statements are issued for a period that includes the date the change in reporting entity or the transaction occurred. The IPO and reorganization were considered transactions between entities under common control, therefore, the financial statements for the periods prior to the IPO and reorganization have been adjusted to combine the previously separate entities for presentation. The financial results of LD Holdings and its subsidiaries were therefore combined with loanDepot, Inc., and the consolidated net earnings or loss has been allocated to the noncontrolling interest to reflect the entitlement of the Continuing LLC Members. The accompanying consolidated financial statements include all of the assets, liabilities, and results of operations of the Company and consolidated variable interest entities (“VIEs”) in which the Company is the primary beneficiary. VIEs are entities that have a total equity investment at risk that is insufficient to permit the entity to finance its activities without additional subordinated financial support, whose equity investors at risk lack the ability to control the entity's activities, or is structured with non-substantive voting rights. The Company evaluates its associations with VIEs, both at inception and when there is a change in circumstance that requires reconsideration, to determine if the Company is the primary beneficiary and consolidation is required. A primary beneficiary is defined as a variable interest holder that has a controlling financial interest. A controlling financial interest requires both: (a) the power to direct the activities that most significantly impact the VIEs’ economic performance, and (b) the obligation to absorb losses or receive benefits of a VIE that could potentially be significant to the VIE. The Company has not provided financial or other support during the periods presented to any VIE that it was not previously contractually required to provide. Other entities that the Company does not consolidate, but for which it has significant influence over operating and financial policies, are accounted for using the equity method. All intercompany accounts and transactions have been eliminated in consolidation. Certain items in prior periods were reclassified to conform to the current presentation. Financing lease obligations are included as part of accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Gain on the origination and sale of loans, net was adjusted to exclude the change in fair value of forward sale contracts, including pair offs hedging MSRs, which are now included in the change in fair value of servicing rights, net on the consolidated statements of operations. The Company determined that this change would more appropriately reflect the hedged item and better align with industry practice. Gain on origination and sale of loans, net and change in fair value of servicing rights, net, in the current and prior periods along with the related financial statement disclosures were adjusted to reflect this reclassification in reports beginning after the first quarter of 2021. The Company has evaluated subsequent events for recognition or disclosure through the date of this report and has not identified any recordable or disclosable events that were not already reported in these consolidated financial statements or notes thereto. |
Basis of Presentation | Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the Financial Accounting Standards Board's (“FASB”) Accounting Standards Codification (“ASC” or the “Codification”). ASC 250 requires that a change in the reporting entity or the consummation of a transaction accounted for in a manner similar to a pooling of interests, i.e., a reorganization of entities under common control, be retrospectively applied to the financial statements of all prior periods when the financial statements are issued for a period that includes the date the change in reporting entity or the transaction occurred. The IPO and reorganization were considered transactions between entities under common control, therefore, the financial statements for the periods prior to the IPO and reorganization have been adjusted to combine the previously separate entities for presentation. The financial results of LD Holdings and its subsidiaries were therefore combined with loanDepot, Inc., and the consolidated net earnings or loss has been allocated to the noncontrolling interest to reflect the entitlement of the Continuing LLC Members. The accompanying consolidated financial statements include all of the assets, liabilities, and results of operations of the Company and consolidated variable interest entities (“VIEs”) in which the Company is the primary beneficiary. VIEs are entities that have a total equity investment at risk that is insufficient to permit the entity to finance its activities without additional subordinated financial support, whose equity investors at risk lack the ability to control the entity's activities, or is structured with non-substantive voting rights. The Company evaluates its associations with VIEs, both at inception and when there is a change in circumstance that requires reconsideration, to determine if the Company is the primary beneficiary and consolidation is required. A primary beneficiary is defined as a variable interest holder that has a controlling financial interest. A controlling financial interest requires both: (a) the power to direct the activities that most significantly impact the VIEs’ economic performance, and (b) the obligation to absorb losses or receive benefits of a VIE that could potentially be significant to the VIE. The Company has not provided financial or other support during the periods presented to any VIE that it was not previously contractually required to provide. Other entities that the Company does not consolidate, but for which it has significant influence over operating and financial policies, are accounted for using the equity method. All intercompany accounts and transactions have been eliminated in consolidation. Certain items in prior periods were reclassified to conform to the current presentation. Financing lease obligations are included as part of accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Gain on the origination and sale of loans, net was adjusted to exclude the change in fair value of forward sale contracts, including pair offs hedging MSRs, which are now included in the change in fair value of servicing rights, net on the consolidated statements of operations. The Company determined that this change would more appropriately reflect the hedged item and better align with industry practice. Gain on origination and sale of loans, net and change in fair value of servicing rights, net, in the current and prior periods along with the related financial statement disclosures were adjusted to reflect this reclassification in reports beginning after the first quarter of 2021. The Company has evaluated subsequent events for recognition or disclosure through the date of this report and has not identified any recordable or disclosable events that were not already reported in these consolidated financial statements or notes thereto. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management has made significant estimates in certain areas, including determining the fair value of loans held for sale, servicing rights, derivative assets and derivative liabilities, awards granted under the incentive equity plan, assets acquired and liabilities assumed in business combinations, and determining the loan loss obligation on sold loans. Actual results could differ from those estimates. |
Income Taxes | Income Taxes The Company’s provision for income taxes is made for current and deferred income tax on pretax net income adjusted for permanent and temporary differences based on enacted tax laws and applicable statutory tax rates. The Company accounts for interest and penalties associated with income tax obligations as a component of income tax expense. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates for the periods in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the change. Deferred tax assets are recorded in prepaid expenses and other assets on the consolidated balance sheets. Deferred tax liabilities are recorded in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Following the IPO and Reorganization, the Company’s purchase of Holdco Units and any future exchanges of Holdco Units for cash or Class A Common Stock are expected to result in increases to the Company’s allocable tax basis in its assets. These increases in tax basis are expected to increase (for tax purposes) depreciation and amortization deductions allocable to the Company, and therefore reduce the amount of tax that the Company would otherwise be required to pay in the future. As a result, the Company has entered into a TRA with Parthenon Stockholders and certain Continuing LLC Members, whereby loanDepot, Inc. will be obligated to pay such parties or their permitted assignees, 85% of the amount of cash tax savings, if any, in U.S. federal, state, and local taxes that loanDepot, Inc. realizes, or is deemed to realize as a result of future tax benefits from increases in tax basis. The TRA liability is accounted for as a contingent liability within accounts payable, accrued expenses and other liabilities on the consolidated balance sheets with amounts accrued when deemed probable and estimable. The Company evaluates tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax |
Stock-Based Compensation | Stock-Based Compensation Effective upon the completion of the IPO, the Company adopted the loanDepot, Inc. 2021 Omnibus Incentive Plan (the “2021 Plan”). The 2021 Plan allows for the grant of stock options, restricted stock, restricted stock units (“RSUs”), and stock appreciation rights. There are currently only RSUs granted under the 2021 Plan. The Company uses the grant-date fair value of equity awards to determine the compensation cost associated with each award. Compensation cost for service-based equity awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Compensation cost for awards with only service conditions that have graded vesting schedules is recognized on a straight-line basis over the requisite service period for the entire award such that compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. Expense is reduced for actual forfeitures as they occur. The cost of stock-based compensation is recorded to personnel expense. |
Earnings per share | Earnings per share Basic net income per common share is calculated using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating security according to dividends declared (distributed earnings) and participation rights in undistributed earnings. Distributed and undistributed earnings are allocated between common and participating security shareholders based on their respective rights to receive dividends. According to the Company’s certificate of incorporation, the holders of Class A common stock and Class D common stock are entitled to share equally, on a per share basis, in dividends and other distributions of cash, property or shares of stock of the Company as may be declared by the board of directors. |
Concentration of Risk | Concentration of Risk The Company has concentrated its credit risk for cash by maintaining deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash. Due to the nature of the mortgage lending industry, changes in interest rates may significantly impact revenue from originating mortgages and subsequent sales of loans to investors, which are the primary source of income for the Company. The Company originates mortgage loans on property located throughout the United States, with loans originated for property located in California totaling approximately 29% and 33% of total loan originations for the three and nine months ended September 30, 2021, respectively. The Company sells mortgage loans to various third-party investors. Three investors accounted for 41%, 33%, and 14% of the Company’s loan sales for the nine months ended September 30, 2021. No other investors accounted for more than 5% of the loan sales for the three and nine months ended September 30, 2021. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, Income Taxes related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. This ASU was effective for public business entities for fiscal years and interim periods beginning after December 15, 2020. The adoption of this guidance on January 1, 2021 did not have a significant effect on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provided optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the benefits of) reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective and apply to all entities, subject to meeting certain criteria, that have contract, hedging relationships, and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01 to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This guidance is effective upon issuance and allows application to contract changes as early as January 1, 2020. The Company has added alternative base rate language, which may include the secured overnight financing rate ("SOFR") to agreements for its warehouse and other lines of credit and debt obligations that use LIBOR. The Company is evaluating the potential impact that the adoption of this ASU will have on the consolidated financial statements at the transition of LIBOR. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the carrying amount and estimated fair value of financial instruments included in the consolidated financial statements. September 30, 2021 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 506,608 $ 506,608 $ — $ — Restricted cash 97,805 97,805 — — Loans held for sale, at fair value 8,873,736 — 8,873,736 — Derivative assets, at fair value 341,359 — 75,241 266,118 Servicing rights, at fair value 1,841,512 — — 1,841,512 Trading securities 56,412 — 56,412 — Loans eligible for repurchase 632,722 — 632,722 — Liabilities Warehouse and other lines of credit $ 8,212,142 $ — $ 8,212,142 $ — Derivative liabilities, at fair value 48,899 41,952 39 6,908 Servicing rights, at fair value (1) 4,818 — — 4,818 Debt obligations: Secured credit facilities 99,707 — 99,707 — 2020-VF1 Notes 10,382 — 10,382 — GMSR VFN 15,000 — 15,000 — Term notes 199,008 — 200,000 — Senior notes 1,084,654 — 1,066,278 — Liability for loans eligible for repurchase 632,722 — 632,722 — (1) Included in accounts payable and accrued expenses on the consolidated balance sheets. December 31, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 284,224 $ 284,224 $ — $ — Restricted cash 204,465 204,465 — — Loans held for sale, at fair value 6,955,424 — 6,955,424 — Derivative assets, at fair value 647,939 483 107 647,349 Servicing rights, at fair value 1,127,866 — — 1,127,866 Loans eligible for repurchase 1,246,158 — 1,246,158 — Liabilities Warehouse and other lines of credit $ 6,577,429 $ — $ 6,577,429 $ — Derivative liabilities, at fair value 168,169 4,299 163,566 304 Servicing rights, at fair value (1) 3,564 — — 3,564 Debt obligations: 2020-VF1 Notes 7,571 — 8,593 GMSR VFN 15,000 — 15,000 — Term notes 198,640 — 200,000 — Senior notes 491,255 — 518,245 — Liability for loans eligible for repurchase 1,246,158 — 1,246,158 — (1) Included in accounts payable and accrued expenses on the consolidated balance sheets. Financial Statement Items Measured at Fair Value on a Recurring Basis The following tables presents the Company’s assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy as of the dates indicated. September 30, 2021 Recurring Fair Value Measurements of Assets (Liabilities) Using: Quoted Market Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Measurements Fair value through net income: Assets: Loans held for sale $ — $ 8,873,736 $ — $ 8,873,736 Trading securities — 56,412 — 56,412 Derivative assets: Interest rate lock commitments — — 266,118 266,118 Forward sales contracts — 75,241 — 75,241 Servicing rights — — 1,841,512 1,841,512 Total assets at fair value $ — $ 9,005,389 $ 2,107,630 $ 11,113,019 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 6,908 $ 6,908 Interest rate swap futures 31,063 — — 31,063 Forward sales contracts — 39 — 39 Put options on treasuries 10,889 — — 10,889 Servicing rights (1) — — 4,818 4,818 Total liabilities at fair value $ 41,952 $ 39 $ 11,726 $ 53,717 (1) Included in accounts payable and accrued expenses on the consolidated balance sheets. December 31, 2020 Recurring Fair Value Measurements of Assets (Liabilities) Using: Quoted Market Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Measurements Fair value through net income: Assets: Loans held for sale $ — $ 6,955,424 $ — $ 6,955,424 Derivative assets: Interest rate lock commitments — — 647,349 647,349 Forward sales contracts — 107 — 107 Interest rate swap futures 483 — — 483 Servicing rights — — 1,127,866 1,127,866 Total assets at fair value $ 483 $ 6,955,531 $ 1,775,215 $ 8,731,229 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 304 $ 304 Forward sales contracts — 163,566 — 163,566 Put options on treasuries 4,299 — — 4,299 Servicing rights (1) — — 3,564 3,564 Total liabilities at fair value $ 4,299 $ 163,566 $ 3,868 $ 171,733 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Interest Rate Lock Commitments (1) Servicing Rights, net (2) Balance at beginning of period $ 333,081 $ 1,776,395 $ 647,045 $ 1,124,302 Total net gains included in earnings (realized and unrealized) 640,372 233,166 1,749,343 1,079,525 Sales and settlements Sales — (172,867) — (367,133) Settlements (3) (558,918) — (1,585,368) — Transfers of IRLCs to closed loans (155,325) — (551,810) — Balance at end of period $ 259,210 $ 1,836,694 $ 259,210 $ 1,836,694 (1) Interest rate lock commitments include both assets and liabilities and are shown net. (2) Balance is net of $4.8 million servicing liability at September 30, 2021. (3) Funded amount for interest rate lock commitments. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Contingent Consideration Interest Rate Lock Commitments (1) Servicing Rights, net (2) Contingent Consideration Balance at beginning of period $ 519,514 $ 569,927 $ (13,169) $ 128,208 $ 444,443 $ (2,374) Total net gains (losses) included in earnings (realized and unrealized) 1,180,734 206,407 (19,670) 2,635,861 339,096 (32,650) Sales and settlements Sales — 659 — — (6,546) — Settlements (3) (767,645) — 11,083 (1,580,842) — 13,268 Transfers of IRLCs to closed loans (210,945) — — (461,569) — — Balance at end of period $ 721,658 $ 776,993 $ (21,756) $ 721,658 $ 776,993 $ (21,756) (1) Interest rate lock commitments include both assets and liabilities and are shown net. (2) Balance is net of $3.5 million servicing rights liability at September 30, 2020. (3) Settlements refer to the funded amount for interest rate lock commitments, and the payment amount for contingent consideration. The following presents the gains and losses included in earnings for the three and nine months ended September 30, 2021 and 2020 relating to the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Interest Rate Lock Commitments (1) Servicing Rights, net (3) Total net (losses) gains included in earnings $ (73,871) $ 233,166 $ (387,835) $ 1,079,525 Change in unrealized gains relating to assets and liabilities still held at period end $ 259,210 $ 326,527 $ 259,210 $ 1,126,433 (1) (Losses) included in gain on origination and sale of loans, net. (2) Includes $345.9 million in gains included in gain on origination and sale of loans, net and $112.7 million of losses included in change in fair value of servicing rights, net, for the three months ended September 30, 2021. (3) Includes $1.3 billion in gains included in gain on origination and sale of loans, net and $223.4 million of losses included in change in fair value of servicing rights, net, for the nine months ended September 30, 2021 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Contingent Consideration (4) Interest Rate Lock Commitments (1) Servicing Rights, net (3) Contingent Consideration (4) Total net gains (losses) included in earnings $ 202,144 $ 206,407 $ (19,670) $ 593,450 $ 339,096 $ (32,650) Change in unrealized gains (losses) relating to assets and liabilities still held at period end $ 721,658 $ 254,130 $ (19,670) $ 721,658 $ 457,478 $ (32,650) (1) Gains included in gain on origination and sale of loans, net. (2) Includes $262.4 million in gains included in gain on origination and sale of loans, net and $56.0 million in losses included in change in fair value of servicing rights, net, for the three months ended September 30, 2020. (3) Includes $574.8 million in gains included in gain on origination and sale of loans, net and $235.7 million in losses included in change in fair value of servicing rights, net, for the nine months ended September 30, 2020 (4) Losses included in general and administrative expense. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Interest Rate Lock Commitments (1) Servicing Rights, net (2) Balance at beginning of period $ 333,081 $ 1,776,395 $ 647,045 $ 1,124,302 Total net gains included in earnings (realized and unrealized) 640,372 233,166 1,749,343 1,079,525 Sales and settlements Sales — (172,867) — (367,133) Settlements (3) (558,918) — (1,585,368) — Transfers of IRLCs to closed loans (155,325) — (551,810) — Balance at end of period $ 259,210 $ 1,836,694 $ 259,210 $ 1,836,694 (1) Interest rate lock commitments include both assets and liabilities and are shown net. (2) Balance is net of $4.8 million servicing liability at September 30, 2021. (3) Funded amount for interest rate lock commitments. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Contingent Consideration Interest Rate Lock Commitments (1) Servicing Rights, net (2) Contingent Consideration Balance at beginning of period $ 519,514 $ 569,927 $ (13,169) $ 128,208 $ 444,443 $ (2,374) Total net gains (losses) included in earnings (realized and unrealized) 1,180,734 206,407 (19,670) 2,635,861 339,096 (32,650) Sales and settlements Sales — 659 — — (6,546) — Settlements (3) (767,645) — 11,083 (1,580,842) — 13,268 Transfers of IRLCs to closed loans (210,945) — — (461,569) — — Balance at end of period $ 721,658 $ 776,993 $ (21,756) $ 721,658 $ 776,993 $ (21,756) (1) Interest rate lock commitments include both assets and liabilities and are shown net. (2) Balance is net of $3.5 million servicing rights liability at September 30, 2020. (3) Settlements refer to the funded amount for interest rate lock commitments, and the payment amount for contingent consideration. The following presents the gains and losses included in earnings for the three and nine months ended September 30, 2021 and 2020 relating to the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Interest Rate Lock Commitments (1) Servicing Rights, net (3) Total net (losses) gains included in earnings $ (73,871) $ 233,166 $ (387,835) $ 1,079,525 Change in unrealized gains relating to assets and liabilities still held at period end $ 259,210 $ 326,527 $ 259,210 $ 1,126,433 (1) (Losses) included in gain on origination and sale of loans, net. (2) Includes $345.9 million in gains included in gain on origination and sale of loans, net and $112.7 million of losses included in change in fair value of servicing rights, net, for the three months ended September 30, 2021. (3) Includes $1.3 billion in gains included in gain on origination and sale of loans, net and $223.4 million of losses included in change in fair value of servicing rights, net, for the nine months ended September 30, 2021 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Interest Rate Lock Commitments (1) Servicing Rights, net (2) Contingent Consideration (4) Interest Rate Lock Commitments (1) Servicing Rights, net (3) Contingent Consideration (4) Total net gains (losses) included in earnings $ 202,144 $ 206,407 $ (19,670) $ 593,450 $ 339,096 $ (32,650) Change in unrealized gains (losses) relating to assets and liabilities still held at period end $ 721,658 $ 254,130 $ (19,670) $ 721,658 $ 457,478 $ (32,650) (1) Gains included in gain on origination and sale of loans, net. (2) Includes $262.4 million in gains included in gain on origination and sale of loans, net and $56.0 million in losses included in change in fair value of servicing rights, net, for the three months ended September 30, 2020. (3) Includes $574.8 million in gains included in gain on origination and sale of loans, net and $235.7 million in losses included in change in fair value of servicing rights, net, for the nine months ended September 30, 2020 (4) Losses included in general and administrative expense. |
Fair Value Measurement Inputs and Valuation Techniques | The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring basis: September 30, 2021 December 31, 2020 Unobservable Input Range of inputs Weighted Average Range of inputs Weighted Average IRLCs: Pull-through rate 3.0% - 99.9% 76.1% 2.8% - 99.9% 70.5% Servicing rights Discount rate (1) 4.7% - 9.1% 6.0% 5.0% - 10.0% 6.2% Prepayment rate (1) 8.6% - 19.0% 10.1% 13.4% - 34.8% 14.0% Cost to service (per loan) $70 - $126 $84 $71 - $139 $89 |
BALANCE SHEET NETTING (Tables)
BALANCE SHEET NETTING (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Offsetting [Abstract] | |
Offsetting Assets | The table below represents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged. Warehouse lines and secured debt obligations were secured by sufficient collateral with fair value that exceeded the liability amount recorded on the consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively. September 30, 2021 Gross amounts recognized Gross amounts offset in consolidated balance sheets Net amounts presented in consolidated balance sheets Gross amounts not offset in consolidated balance sheets Net amount Financial instruments Cash collateral Assets: Forward delivery contracts $ 126,084 $ (50,843) $ 75,241 $ — $ (88,040) $ (12,799) Total Assets $ 126,084 $ (50,843) $ 75,241 $ — $ (88,040) $ (12,799) Liabilities: Forward delivery contracts $ 50,882 $ (50,843) $ 39 $ — $ (30) $ 9 Put options on treasuries 10,889 — 10,889 — — 10,889 Interest rate swap futures 31,063 — 31,063 — — 31,063 Warehouse lines of credit 8,212,142 — 8,212,142 (8,212,142) — — Secured debt obligations (1) 325,089 — 325,089 (325,089) — — Total Liabilities $ 8,630,065 $ (50,843) $ 8,579,222 $ (8,537,231) $ (30) $ 41,961 (1) Secured debt obligations as of September 30, 2021 included the Secured Credit Facilities, GMSR VFN, Term Notes, and 2020-VF1 Notes. December 31, 2020 Gross amounts recognized Gross amounts offset in consolidated balance sheets Net amounts presented in consolidated balance sheets Gross amounts not offset in consolidated balance sheets Net amount Financial instruments Cash collateral Assets: Forward delivery contracts $ 71,029 $ (70,922) $ 107 $ — $ — $ 107 Interest rate swap futures 483 — 483 — — 483 Total Assets $ 71,512 $ (70,922) $ 590 $ — $ — $ 590 Liabilities: Forward delivery contracts $ 234,488 $ (70,922) $ 163,566 $ — $ — $ 163,566 Put options on treasuries 4,299 — 4,299 — — 4,299 Warehouse lines of credit 6,577,429 — 6,577,429 (6,577,429) — — Secured debt obligations (1) 223,593 — 223,593 (223,593) — — Total Liabilities $ 7,039,809 $ (70,922) $ 6,968,887 $ (6,801,022) $ — $ 167,865 |
Offsetting Liabilities | The table below represents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged. Warehouse lines and secured debt obligations were secured by sufficient collateral with fair value that exceeded the liability amount recorded on the consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively. September 30, 2021 Gross amounts recognized Gross amounts offset in consolidated balance sheets Net amounts presented in consolidated balance sheets Gross amounts not offset in consolidated balance sheets Net amount Financial instruments Cash collateral Assets: Forward delivery contracts $ 126,084 $ (50,843) $ 75,241 $ — $ (88,040) $ (12,799) Total Assets $ 126,084 $ (50,843) $ 75,241 $ — $ (88,040) $ (12,799) Liabilities: Forward delivery contracts $ 50,882 $ (50,843) $ 39 $ — $ (30) $ 9 Put options on treasuries 10,889 — 10,889 — — 10,889 Interest rate swap futures 31,063 — 31,063 — — 31,063 Warehouse lines of credit 8,212,142 — 8,212,142 (8,212,142) — — Secured debt obligations (1) 325,089 — 325,089 (325,089) — — Total Liabilities $ 8,630,065 $ (50,843) $ 8,579,222 $ (8,537,231) $ (30) $ 41,961 (1) Secured debt obligations as of September 30, 2021 included the Secured Credit Facilities, GMSR VFN, Term Notes, and 2020-VF1 Notes. December 31, 2020 Gross amounts recognized Gross amounts offset in consolidated balance sheets Net amounts presented in consolidated balance sheets Gross amounts not offset in consolidated balance sheets Net amount Financial instruments Cash collateral Assets: Forward delivery contracts $ 71,029 $ (70,922) $ 107 $ — $ — $ 107 Interest rate swap futures 483 — 483 — — 483 Total Assets $ 71,512 $ (70,922) $ 590 $ — $ — $ 590 Liabilities: Forward delivery contracts $ 234,488 $ (70,922) $ 163,566 $ — $ — $ 163,566 Put options on treasuries 4,299 — 4,299 — — 4,299 Warehouse lines of credit 6,577,429 — 6,577,429 (6,577,429) — — Secured debt obligations (1) 223,593 — 223,593 (223,593) — — Total Liabilities $ 7,039,809 $ (70,922) $ 6,968,887 $ (6,801,022) $ — $ 167,865 |
LOANS HELD FOR SALE, AT FAIR _2
LOANS HELD FOR SALE, AT FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Unpaid Principal Balance of LHFS by Type of Loan | The following table represents the unpaid principal balance of LHFS by product type as of September 30, 2021 and December 31, 2020: September 30, December 31, Amount % Amount % Conforming - fixed $ 5,764,345 66% $ 5,223,177 78% Conforming - ARM 192,737 2 260 — Government - fixed 990,566 12 1,108,936 16 Government - ARM 68,973 1 45,243 1 Other - residential mortgage loans 1,659,792 19 312,954 5 Consumer loans 2,020 — 2,541 — 8,678,433 100% 6,693,111 100% Fair value adjustment 195,303 262,313 Total $ 8,873,736 $ 6,955,424 |
Summary of Changes in Balance of Loans Held For Sale | A summary of the changes in the balance of loans held for sale is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Balance at beginning of period $ 9,120,653 $ 3,303,438 $ 6,955,424 $ 3,681,840 Origination and purchase of loans 31,902,260 27,101,570 107,717,154 63,183,309 Sales (32,200,708) (25,598,952) (106,414,376) (62,192,701) Repurchases 138,666 36,767 802,366 145,049 Principal payments (53,316) (6,820) (119,822) (43,306) Fair value (loss) gain (33,819) 52,361 (67,010) 114,173 Balance at end of period $ 8,873,736 $ 4,888,364 $ 8,873,736 $ 4,888,364 |
Components of Gain on Origination and Sale of Loans, Net | Gain on origination and sale of loans, net is comprised of the following components: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Premium from loan sales $ 674,782 $ 968,550 $ 1,552,668 $ 2,125,730 Servicing rights 345,882 262,401 1,302,884 574,768 Unrealized gains (losses) from derivative assets and liabilities 42,984 195,383 (139,483) 498,090 Realized (losses) gains from derivative assets and liabilities (156,514) (184,861) 194,035 (456,969) Discount points, rebates and lender paid costs (49,585) (38,198) (193,043) (72,031) Fair value (loss) gain (33,818) 52,361 (67,010) 114,173 Provision for loan loss obligations for loans sold (2,456) (4,495) (2,723) (16,621) Total gain on origination and sale of loans, net $ 821,275 $ 1,251,141 $ 2,647,328 $ 2,767,140 |
SERVICING RIGHTS, AT FAIR VAL_2
SERVICING RIGHTS, AT FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Summary of Outstanding Principal Balance of Servicing Rights | The outstanding principal balance of the servicing portfolio was comprised of the following: September 30, December 31, Conventional $ 112,166,336 $ 74,459,448 Government 33,138,846 28,471,810 Total servicing portfolio $ 145,305,182 $ 102,931,258 |
Summary of Unpaid Principal Balance Underlying Servicing Rights | A summary of the unpaid principal balance underlying servicing rights is as follows: September 30, December 31, Current loans $ 143,345,702 $ 100,358,713 Loans 30 - 89 days delinquent 455,284 709,946 Loans 90 or more days delinquent or in foreclosure 1,504,196 1,862,599 Total servicing portfolio (1) $ 145,305,182 $ 102,931,258 |
Summary of Changes in Servicing Rights | A summary of the changes in the balance of servicing rights is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Balance at beginning of period $ 1,776,395 $ 569,927 $ 1,124,302 $ 444,443 Additions 345,882 262,401 1,302,884 574,768 Sales proceeds, net (182,892) (2,319) (365,680) (9,620) Changes in fair value: Due to changes in valuation inputs or assumptions (3,461) (3,009) 98,295 (112,059) Other changes in fair value (1) (99,230) (50,007) (323,107) (120,539) Balance at end of period (2) $ 1,836,694 $ 776,993 $ 1,836,694 $ 776,993 (1) Other changes in fair value include fall out and decay from loan payoffs and principal amortization. (2) Balance is net of $4.8 million and $3.5 million of servicing rights liability at September 30, 2021 and 2020, respectively. |
Summary of Components of Loan Servicing Fee Income | The following is a summary of the components of servicing fee income as reported in the Company’s consolidated statements of operations: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Contractual servicing fees $ 99,640 $ 46,234 $ 271,374 $ 112,917 Late, ancillary and other fees 2,789 2,172 8,364 8,603 Total servicing fee income $ 102,429 $ 48,406 $ 279,738 $ 121,520 |
Summary of Components of Changes in Fair Value of Servicing Rights | The following is a summary of the components of changes in fair value of servicing rights, net as reported in the Company’s consolidated statements of operations: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Changes in fair value: Due to changes in valuation inputs or assumptions $ (3,461) $ (3,009) $ 98,295 $ (112,059) Other changes in fair value (1) (99,230) (50,007) (323,107) (120,539) Realized losses on sales of servicing rights (14,218) (2,606) (8,224) (2,549) Net (loss) gain from derivatives hedging servicing rights (21,553) 26,309 (94,158) 125,330 Changes in fair value of servicing rights, net $ (138,462) $ (29,313) $ (327,194) $ (109,817) |
Servicing Rights Sensitivity Analysis | The table below illustrates hypothetical changes in fair values of servicing rights, caused by assumed immediate changes to key assumptions that are used to determine fair value. Servicing Rights Sensitivity Analysis September 30, December 31, Fair Value of Servicing Rights, net $ 1,836,694 $ 1,124,302 Change in Fair Value from adverse changes: Discount Rate: Increase 100 basis points (80,001) (45,745) Increase 200 basis points (153,883) (87,800) Cost of Servicing: Increase 10% (18,600) (11,556) Increase 20% (37,284) (23,112) Prepayment Speed: Increase 10% (66,889) (63,351) Increase 20% (130,552) (122,294) |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following summarizes the Company’s outstanding derivative instruments: Fair Value Notional Balance Sheet Location Asset Liability September 30, 2021: Interest rate lock commitments $ 16,362,632 Derivative asset, at fair value $ 266,118 $ — Interest rate lock commitments 2,020,206 Derivative liabilities, at fair value — 6,908 Forward sales contracts 38,373,245 Derivative asset, at fair value 75,241 — Forward sales contracts 203,024 Derivative liabilities, at fair value — 39 Put options on treasuries Derivative asset, at fair value — — Put options on treasuries 36,950 Derivative liabilities, at fair value — 10,889 Interest rate swap futures Derivative asset, at fair value — — Interest rate swap futures 12,235 Derivative liabilities, at fair value — 31,063 Total derivative financial instruments $ 341,359 $ 48,899 Fair Value Notional Balance Sheet Location Asset Liability December 31, 2020: Interest rate lock commitments $ 31,365,494 Derivative asset, at fair value $ 647,349 $ — Interest rate lock commitments 99,635 Derivative liabilities, at fair value — 304 Forward sales contracts 44,694 Derivative asset, at fair value 107 — Forward sales contracts 54,397,834 Derivative liabilities, at fair value — 163,566 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 27,803 Derivative liabilities, at fair value — 4,299 Interest rate swap futures 2,350 Derivative asset, at fair value 483 — Interest rate swap futures — Derivative liabilities, at fair value — — Total derivative financial instruments $ 647,939 $ 168,169 |
Net Gains (Losses) on Derivative Financial Instruments | The following summarizes the realized and unrealized net gains and (losses) on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included: Three Months Ended Nine Months Ended Derivative instrument Statements of Operations Location 2021 2020 2021 2020 Interest rate lock commitments, net Gain on origination and sale of loans, net $ (73,871) $ 202,144 $ (387,835) $ 593,450 Forward sales contracts (1) Gain on origination and sale of loans, net (29,867) (181,681) 477,215 (530,186) Interest rate swap futures Gain on origination and sale of loans, net (29,683) 534 (81,891) (5,739) Put options Gain on origination and sale of loans, net 19,891 (10,475) 47,063 (16,404) Forward sales contracts (1) Change in fair value of servicing rights, net (5,838) 28,290 (84,842) 106,315 Interest rate swap futures Change in fair value of servicing rights, net (14,033) (1,350) (6,855) 20,274 Put options Change in fair value of servicing rights, net (1,682) (631) (2,461) (1,259) Total realized and unrealized (losses) gains on derivative financial instruments $ (135,083) $ 36,831 $ (39,606) $ 166,451 (1) Amounts include pair-off settlements. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Investment in VIEs | The table below presents a summary of the carrying value and balance sheet classification of assets and liabilities in the Company’s consolidated VIEs. September 30, December 31, Assets Loans held for sale, at fair value $ 2,462,653 $ 1,595,442 Restricted cash — 170,413 Servicing rights, at fair value 379,850 300,465 $ 2,842,503 $ 2,066,320 Liabilities Warehouse and other lines of credit $ 2,399,544 $ 1,699,803 Debt obligations, net 214,008 213,640 $ 2,613,552 $ 1,913,443 September 30, 2021 Carrying value of variable interests Maximum Total assets in VIEs Assets Liabilities Retained interests (1) $ 56,412 $ — $ 56,412 $ 1,085,924 Investments in joint ventures 18,353 — 18,353 12,295 $ 74,765 $ — $ 74,765 December 31, 2020 Carrying value of variable interests Maximum Total assets in VIEs Assets Liabilities Investments in joint ventures $ 17,528 $ — $ 17,528 $ 15,342 |
WAREHOUSE AND OTHER LINES OF _2
WAREHOUSE AND OTHER LINES OF CREDIT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents certain information on warehouse borrowings: Outstanding Balance Committed Uncommitted Total Expiration September 30, December 31, Facility 1 (1) (2) $ 1,000,000 $ 500,000 $ 1,500,000 10/29/2021 $ 1,327,881 $ 1,665,005 Facility 2 (3) — 600,000 600,000 9/26/2022 378,870 226,891 Facility 3 — 500,000 500,000 4/19/2022 341,899 206,863 Facility 4 (4) 100,000 300,000 400,000 10/6/2021 262,104 335,096 Facility 5 (3) — 200,000 200,000 N/A 244 — Facility 6 (3)(5) 100,000 1,000,000 1,100,000 10/11/2021 989,433 626,741 Facility 7 (6) 750,000 1,250,000 2,000,000 5/5/2023 1,555,688 919,068 Facility 8 (7) — — — 5/14/2021 — 300,000 Facility 9 (7) 300,000 — 300,000 10/23/2021 300,000 299,803 Facility 10 — 850,000 850,000 N/A 365,145 358,761 Facility 11 (8) 600,000 — 600,000 10/25/2022 600,000 600,000 Facility 12 (8) 500,000 — 500,000 12/17/2023 499,544 500,000 Facility 13 — 1,000,000 1,000,000 9/23/2022 386,920 259,247 Facility 14 (7) — — — 2/10/2021 — 279,954 Facility 15 (8) 500,000 — 500,000 2/2/2024 500,000 — Facility 16 (8) 500,000 — 500,000 4/23/2024 500,000 — Facility 17 — 500,000 500,000 9/22/2022 204,414 — Total $ 4,350,000 $ 6,700,000 $ 11,050,000 $ 8,212,142 $ 6,577,429 (1) The total facility is available both to fund loan originations and also provide liquidity under a gestation facility to finance recently sold MBS up to the MBS settlement date. (2) In October 2021, this facility was extended to mature in October 2022. (3) In addition to the warehouse line, the lender provides a separate gestation facility to finance recently sold MBS up to the MBS settlement date. (4) In October 2021, this facility was extended to mature in November 2021. (5) In October 2021, this facility was extended to mature in December 2021. (6) In addition to the outstanding balance secured by mortgage loans, the Company has $15.0 million outstanding to finance servicing rights included within debt obligations in the consolidated balance sheets. (7) This facility expired. (8) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. The following table presents certain information on warehouse borrowings: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Maximum outstanding balance during the period $ 9,078,257 $ 4,622,250 $ 9,180,276 $ 4,622,250 Average balance outstanding during the period 8,515,189 3,633,792 8,066,303 3,433,434 Collateral pledged (loans held for sale) 8,675,750 4,805,413 8,675,750 4,805,413 Weighted average interest rate during the period 2.22 % 2.41 % 2.25 % 2.65 % |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Information on Outstanding Debt | The following table presents certain information on outstanding debt. Outstanding Balance September 30, December 31, Secured debt obligations, net: Secured credit facilities $ 99,707 $ — 2020-VF1 Notes 10,382 7,571 GMSR VFN 15,000 15,000 Term notes 199,008 198,640 Total secured debt obligations, net 324,097 221,211 Unsecured debt obligations, net: Senior notes 1,084,654 491,255 Total unsecured debt obligations, net 1,084,654 491,255 Total debt obligations, net $ 1,408,751 $ 712,466 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The components of the provision for income taxes are summarized below. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Total income before income taxes and non-controlling interest $ 178,985 $ 728,916 655,624 1,467,396 Provision for income taxes 24,708 567 47,210 1,457 Effective tax provision rate 13.8 % 0.1 % 7.2 % 0.1 % |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Fees earned, costs incurred, and amounts payable to or receivable from joint ventures were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Loan processing and administrative services fee income $ 3,650 $ 3,835 $ 10,757 $ 10,017 Loan origination broker fees expense 22,749 21,456 63,457 55,323 September 30, December 31, Amounts (payable) receivable from joint ventures $ (3,307) $ 2,196 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Summary of Ownership of LD Holdings | The following table summarizes the ownership of LD Holdings as of September 30, 2021. Holding Member Interests: Holdco Units Ownership Percentage loanDepot, Inc. 132,962,858 43.08% Continuing LLC Members 175,668,642 56.92% Total 308,631,500 100.00% |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSU Activity | The following is a summary of RSU activity for the three and nine months ended September 30, 2021. Three Months Ended Nine Months Ended 2021 2021 Weighted Average Weighted Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested - beginning of period 1,069,573 $ 22.02 — $ — Granted 516,234 10.40 3,884,350 23.05 Vested (14,654) 14.06 (2,248,197) 26.29 Forfeited/Cancelled — — (65,000) 26.45 Unvested - end of period 1,571,153 18.27 1,571,153 18.27 |
Summary of Units Activity | The following table presents a summary of the changes in awards subsequent to the conversion into Class A Holdco Units for the three and nine months ended ended September 30, 2021: Three Months Ended Nine Months Ended 2021 2021 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Unvested - beginning of period 14,650,795 $ 0.50 19,632,883 $ 0.50 Granted — — — — Vested (1,420,510) 0.49 (4,816,920) 0.51 Forfeited/Cancelled (90,704) 0.50 (1,676,382) 0.52 Unvested - end of period 13,139,581 0.50 13,139,581 0.50 The following table presents a summary of the changes in Class Z, Class Y, Class X, Class W and Class V Common Units for the period January 1, 2021 through February 10, 2021 prior to the conversion to Class A Holdco Units described above and for the three and nine months ended September 30, 2020. January 1, 2021 Shares Weighted Average Grant Date Fair Value Unvested - beginning of period 610,497,758 $ 0.016 Vested (12,656,379) 0.016 Forfeited/Cancelled (3,552,286) 0.016 Unvested - end of period 594,289,093 0.016 Three Months Ended Nine Months Ended 2020 2020 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Unvested - beginning of period 745,740,350 $ 0.016 100,679,480 $ 0.006 Granted — — 1,227,342,174 0.016 Vested (26,693,033) 0.016 (533,303,418) 0.016 Forfeited/Cancelled — — (75,670,919) 0.013 Unvested - end of period 719,047,317 0.016 719,047,317 0.016 |
Schedule of Assumptions Used for Grants | The following assumptions were used for the grants during the nine months ended September 30, 2020: Risk-free interest rate 0.30 % Expected life 1.7 years Expected volatility 160.0 - 175.0% |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculation of basic and diluted earnings per share for the periods following the reorganization and IPO for Class A common stock and Class D common stock: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Class A Class D Total Class A Class D Total Net income attributable to loanDepot, Inc. $ 6,052 $ 45,423 $ 51,475 $ 9,233 $ 95,678 $ 104,911 Weighted average shares - basic 15,318,921 114,978,644 130,297,565 11,259,896 116,681,435 127,941,331 Earnings per share - basic $ 0.40 $ 0.40 $ 0.40 $ 0.82 $ 0.82 $ 0.82 Net income allocated to common stockholders - diluted $ 6,052 $ 45,423 $ 51,475 $ 9,233 $ 95,678 $ 104,911 Weighted average shares - diluted 15,318,921 114,978,644 130,297,565 11,259,896 116,681,435 127,941,331 Earnings per share - diluted $ 0.40 $ 0.40 $ 0.40 $ 0.82 $ 0.82 $ 0.82 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loan Loss Obligation | The activity related to the loan loss obligation for sold loans is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Balance at beginning of period $ 26,626 $ 25,430 $ 33,591 $ 17,677 Provision for loan losses 2,456 4,495 2,723 16,621 Payments, realized losses and other (2,094) (2,374) (9,326) (6,747) Balance at end of period $ 26,988 $ 27,551 $ 26,988 $ 27,551 |
DESCRIPTION OF BUSINESS, PRES_3
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Initial Public Offering (Details) | Feb. 11, 2021$ / sharesshares | Sep. 30, 2021$ / shares |
Subsidiary, Sale of Stock [Line Items] | ||
Stock, exchange ratio | 1 | |
LD Holdings | LDLLC | ||
Subsidiary, Sale of Stock [Line Items] | ||
Ownership percentage | 99.99% | |
LD Holdings | ART | ||
Subsidiary, Sale of Stock [Line Items] | ||
Ownership percentage | 100.00% | |
LD Holdings | LDSS | ||
Subsidiary, Sale of Stock [Line Items] | ||
Ownership percentage | 100.00% | |
LD Holdings | Mello | ||
Subsidiary, Sale of Stock [Line Items] | ||
Ownership percentage | 100.00% | |
LD Holdings | MCS | ||
Subsidiary, Sale of Stock [Line Items] | ||
Ownership percentage | 100.00% | |
Class A | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value (in usd per share) | $ 0.001 | |
IPO | Class A | ||
Subsidiary, Sale of Stock [Line Items] | ||
Number of shares sold | shares | 3,850,000 | |
Common stock, par value (in usd per share) | $ 0.001 | |
Offering price (in usd per share) | $ 14 |
DESCRIPTION OF BUSINESS, PRES_4
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-controlling Interests (Details) - LD Holdings | Sep. 30, 2021 |
LDLLC | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 99.99% |
ART | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
LDSS | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
Mello | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
MCS | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
DESCRIPTION OF BUSINESS, PRES_5
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Loan Originations Benchmark | Geographic Concentration Risk | California | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 29.00% | 33.00% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 1 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 41.00% | |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 2 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 33.00% | |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 3 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 14.00% | |
Warehouse Lines of Credit Benchmark | Lender Concentration Risk | Lender 1 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 19.00% | |
Warehouse Lines of Credit Benchmark | Lender Concentration Risk | Lender 2 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 16.00% |
FAIR VALUE - Financial Statemen
FAIR VALUE - Financial Statement Items on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Assets | |||
Loans held for sale, at fair value | $ 8,873,736 | $ 6,955,424 | |
Derivative assets, at fair value | 341,359 | 647,939 | |
Servicing rights, at fair value | 1,841,512 | 1,127,866 | |
Trading securities | 56,412 | 0 | |
Liabilities | |||
Derivative liabilities, at fair value | 48,899 | 168,169 | |
Servicing rights, at fair value | 4,800 | $ 3,500 | |
Fair Value, Recurring | |||
Assets | |||
Loans held for sale, at fair value | 8,873,736 | 6,955,424 | |
Servicing rights, at fair value | 1,841,512 | 1,127,866 | |
Trading securities | 56,412 | ||
Liabilities | |||
Servicing rights, at fair value | 4,818 | 3,564 | |
Fair Value, Recurring | Level 1 | |||
Assets | |||
Loans held for sale, at fair value | 0 | 0 | |
Servicing rights, at fair value | 0 | 0 | |
Trading securities | 0 | ||
Liabilities | |||
Servicing rights, at fair value | 0 | 0 | |
Fair Value, Recurring | Level 2 | |||
Assets | |||
Loans held for sale, at fair value | 8,873,736 | 6,955,424 | |
Servicing rights, at fair value | 0 | 0 | |
Trading securities | 56,412 | ||
Liabilities | |||
Servicing rights, at fair value | 0 | 0 | |
Fair Value, Recurring | Level 3 | |||
Assets | |||
Loans held for sale, at fair value | 0 | 0 | |
Servicing rights, at fair value | 1,841,512 | 1,127,866 | |
Trading securities | 0 | ||
Liabilities | |||
Servicing rights, at fair value | 4,818 | 3,564 | |
Fair Value, Recurring | Carrying Amount | |||
Assets | |||
Cash and cash equivalents | 506,608 | 284,224 | |
Restricted cash | 97,805 | 204,465 | |
Loans held for sale, at fair value | 8,873,736 | 6,955,424 | |
Derivative assets, at fair value | 341,359 | 647,939 | |
Servicing rights, at fair value | 1,841,512 | 1,127,866 | |
Trading securities | 56,412 | ||
Loans eligible for repurchase | 632,722 | 1,246,158 | |
Liabilities | |||
Warehouse and other lines of credit | 8,212,142 | 6,577,429 | |
Derivative liabilities, at fair value | 48,899 | 168,169 | |
Servicing rights, at fair value | 4,818 | 3,564 | |
Liability for loans eligible for repurchase | 632,722 | 1,246,158 | |
Fair Value, Recurring | Carrying Amount | Secured credit facilities | |||
Liabilities | |||
Debt obligations | 99,707 | ||
Fair Value, Recurring | Carrying Amount | 2020-VF1 Notes | |||
Liabilities | |||
Debt obligations | 10,382 | 7,571 | |
Fair Value, Recurring | Carrying Amount | GMSR VFN | |||
Liabilities | |||
Debt obligations | 15,000 | 15,000 | |
Fair Value, Recurring | Carrying Amount | Term notes | |||
Liabilities | |||
Debt obligations | 199,008 | 198,640 | |
Fair Value, Recurring | Carrying Amount | Senior notes | |||
Liabilities | |||
Debt obligations | 1,084,654 | 491,255 | |
Fair Value, Recurring | Estimated Fair Value | Level 1 | |||
Assets | |||
Cash and cash equivalents | 506,608 | 284,224 | |
Restricted cash | 97,805 | 204,465 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets, at fair value | 0 | 483 | |
Servicing rights, at fair value | 0 | 0 | |
Trading securities | 0 | ||
Loans eligible for repurchase | 0 | 0 | |
Liabilities | |||
Warehouse and other lines of credit | 0 | 0 | |
Derivative liabilities, at fair value | 41,952 | 4,299 | |
Servicing rights, at fair value | 0 | 0 | |
Liability for loans eligible for repurchase | 0 | 0 | |
Fair Value, Recurring | Estimated Fair Value | Level 1 | Secured credit facilities | |||
Liabilities | |||
Debt obligations | 0 | ||
Fair Value, Recurring | Estimated Fair Value | Level 1 | 2020-VF1 Notes | |||
Liabilities | |||
Debt obligations | 0 | 0 | |
Fair Value, Recurring | Estimated Fair Value | Level 1 | GMSR VFN | |||
Liabilities | |||
Debt obligations | 0 | 0 | |
Fair Value, Recurring | Estimated Fair Value | Level 1 | Term notes | |||
Liabilities | |||
Debt obligations | 0 | 0 | |
Fair Value, Recurring | Estimated Fair Value | Level 1 | Senior notes | |||
Liabilities | |||
Debt obligations | 0 | 0 | |
Fair Value, Recurring | Estimated Fair Value | Level 2 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Loans held for sale, at fair value | 8,873,736 | 6,955,424 | |
Derivative assets, at fair value | 75,241 | 107 | |
Servicing rights, at fair value | 0 | 0 | |
Trading securities | 56,412 | ||
Loans eligible for repurchase | 632,722 | 1,246,158 | |
Liabilities | |||
Warehouse and other lines of credit | 8,212,142 | 6,577,429 | |
Derivative liabilities, at fair value | 39 | 163,566 | |
Servicing rights, at fair value | 0 | 0 | |
Liability for loans eligible for repurchase | 632,722 | 1,246,158 | |
Fair Value, Recurring | Estimated Fair Value | Level 2 | Secured credit facilities | |||
Liabilities | |||
Debt obligations | 99,707 | ||
Fair Value, Recurring | Estimated Fair Value | Level 2 | 2020-VF1 Notes | |||
Liabilities | |||
Debt obligations | 10,382 | 8,593 | |
Fair Value, Recurring | Estimated Fair Value | Level 2 | GMSR VFN | |||
Liabilities | |||
Debt obligations | 15,000 | 15,000 | |
Fair Value, Recurring | Estimated Fair Value | Level 2 | Term notes | |||
Liabilities | |||
Debt obligations | 200,000 | 200,000 | |
Fair Value, Recurring | Estimated Fair Value | Level 2 | Senior notes | |||
Liabilities | |||
Debt obligations | 1,066,278 | 518,245 | |
Fair Value, Recurring | Estimated Fair Value | Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets, at fair value | 266,118 | 647,349 | |
Servicing rights, at fair value | 1,841,512 | 1,127,866 | |
Trading securities | 0 | ||
Loans eligible for repurchase | 0 | 0 | |
Liabilities | |||
Warehouse and other lines of credit | 0 | 0 | |
Derivative liabilities, at fair value | 6,908 | 304 | |
Servicing rights, at fair value | 4,818 | 3,564 | |
Liability for loans eligible for repurchase | 0 | 0 | |
Fair Value, Recurring | Estimated Fair Value | Level 3 | Secured credit facilities | |||
Liabilities | |||
Debt obligations | 0 | ||
Fair Value, Recurring | Estimated Fair Value | Level 3 | 2020-VF1 Notes | |||
Liabilities | |||
Debt obligations | 0 | ||
Fair Value, Recurring | Estimated Fair Value | Level 3 | GMSR VFN | |||
Liabilities | |||
Debt obligations | 0 | 0 | |
Fair Value, Recurring | Estimated Fair Value | Level 3 | Term notes | |||
Liabilities | |||
Debt obligations | 0 | 0 | |
Fair Value, Recurring | Estimated Fair Value | Level 3 | Senior notes | |||
Liabilities | |||
Debt obligations | $ 0 | $ 0 |
FAIR VALUE - Financial Statem_2
FAIR VALUE - Financial Statement Items on Recurring Basis by Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Assets | |||
Loans held for sale | $ 8,873,736 | $ 6,955,424 | |
Trading securities | 56,412 | 0 | |
Derivative assets | 341,359 | 647,939 | |
Servicing rights | 1,841,512 | 1,127,866 | |
Liabilities | |||
Derivative liabilities | 48,899 | 168,169 | |
Servicing rights | 4,800 | $ 3,500 | |
Interest rate lock commitments | |||
Assets | |||
Derivative assets | 266,118 | 647,349 | |
Liabilities | |||
Derivative liabilities | 6,908 | 304 | |
Forward sales contracts | |||
Assets | |||
Derivative assets | 75,241 | 107 | |
Liabilities | |||
Derivative liabilities | 39 | 163,566 | |
Interest rate swap futures | |||
Assets | |||
Derivative assets | 0 | 483 | |
Liabilities | |||
Derivative liabilities | 31,063 | 0 | |
Put options on treasuries | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Derivative liabilities | 10,889 | 4,299 | |
Fair Value, Recurring | |||
Assets | |||
Loans held for sale | 8,873,736 | 6,955,424 | |
Trading securities | 56,412 | ||
Servicing rights | 1,841,512 | 1,127,866 | |
Total assets at fair value | 11,113,019 | 8,731,229 | |
Liabilities | |||
Servicing rights | 4,818 | 3,564 | |
Total liabilities at fair value | 53,717 | 171,733 | |
Fair Value, Recurring | Interest rate lock commitments | |||
Assets | |||
Derivative assets | 266,118 | 647,349 | |
Liabilities | |||
Derivative liabilities | 6,908 | 304 | |
Fair Value, Recurring | Forward sales contracts | |||
Assets | |||
Derivative assets | 75,241 | 107 | |
Liabilities | |||
Derivative liabilities | 39 | 163,566 | |
Fair Value, Recurring | Interest rate swap futures | |||
Assets | |||
Derivative assets | 483 | ||
Liabilities | |||
Derivative liabilities | 31,063 | ||
Fair Value, Recurring | Put options on treasuries | |||
Liabilities | |||
Derivative liabilities | 10,889 | 4,299 | |
Fair Value, Recurring | Level 1 | |||
Assets | |||
Loans held for sale | 0 | 0 | |
Trading securities | 0 | ||
Servicing rights | 0 | 0 | |
Total assets at fair value | 0 | 483 | |
Liabilities | |||
Servicing rights | 0 | 0 | |
Total liabilities at fair value | 41,952 | 4,299 | |
Fair Value, Recurring | Level 1 | Interest rate lock commitments | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Recurring | Level 1 | Forward sales contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Recurring | Level 1 | Interest rate swap futures | |||
Assets | |||
Derivative assets | 483 | ||
Liabilities | |||
Derivative liabilities | 31,063 | ||
Fair Value, Recurring | Level 1 | Put options on treasuries | |||
Liabilities | |||
Derivative liabilities | 10,889 | 4,299 | |
Fair Value, Recurring | Level 2 | |||
Assets | |||
Loans held for sale | 8,873,736 | 6,955,424 | |
Trading securities | 56,412 | ||
Servicing rights | 0 | 0 | |
Total assets at fair value | 9,005,389 | 6,955,531 | |
Liabilities | |||
Servicing rights | 0 | 0 | |
Total liabilities at fair value | 39 | 163,566 | |
Fair Value, Recurring | Level 2 | Interest rate lock commitments | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Recurring | Level 2 | Forward sales contracts | |||
Assets | |||
Derivative assets | 75,241 | 107 | |
Liabilities | |||
Derivative liabilities | 39 | 163,566 | |
Fair Value, Recurring | Level 2 | Interest rate swap futures | |||
Assets | |||
Derivative assets | 0 | ||
Liabilities | |||
Derivative liabilities | 0 | ||
Fair Value, Recurring | Level 2 | Put options on treasuries | |||
Liabilities | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Recurring | Level 3 | |||
Assets | |||
Loans held for sale | 0 | 0 | |
Trading securities | 0 | ||
Servicing rights | 1,841,512 | 1,127,866 | |
Total assets at fair value | 2,107,630 | 1,775,215 | |
Liabilities | |||
Servicing rights | 4,818 | 3,564 | |
Total liabilities at fair value | 11,726 | 3,868 | |
Fair Value, Recurring | Level 3 | Interest rate lock commitments | |||
Assets | |||
Derivative assets | 266,118 | 647,349 | |
Liabilities | |||
Derivative liabilities | 6,908 | 304 | |
Fair Value, Recurring | Level 3 | Forward sales contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Recurring | Level 3 | Interest rate swap futures | |||
Assets | |||
Derivative assets | 0 | ||
Liabilities | |||
Derivative liabilities | 0 | ||
Fair Value, Recurring | Level 3 | Put options on treasuries | |||
Liabilities | |||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Servicing Rights: | ||||
Servicing liability | $ 4,800 | $ 3,500 | $ 4,800 | $ 3,500 |
Contingent Consideration | ||||
Contingent Consideration: | ||||
Balance at beginning of period | (13,169) | (2,374) | ||
Total net gains or losses included in earnings (realized and unrealized) | (19,670) | (32,650) | ||
Sales | 0 | 0 | ||
Settlements (3) | 11,083 | 13,268 | ||
Transfers of IRLCs to closed loans | 0 | 0 | ||
Balance at end of period | (21,756) | (21,756) | ||
Servicing Rights, net | ||||
Servicing Rights: | ||||
Balance at beginning of period | 1,776,395 | 569,927 | 1,124,302 | 444,443 |
Total net gains (losses) included in earnings (realized and unrealized) | 233,166 | 206,407 | 1,079,525 | 339,096 |
Sales | (172,867) | 659 | (367,133) | (6,546) |
Settlements | 0 | 0 | 0 | 0 |
Transfers of IRLCs to closed loans | 0 | 0 | 0 | 0 |
Balance at end of period | 1,836,694 | 776,993 | 1,836,694 | 776,993 |
Interest Rate Lock Commitments | ||||
Derivatives: | ||||
Balance at beginning of period | 333,081 | 519,514 | 647,045 | 128,208 |
Total net gains (losses) included in earnings (realized and unrealized) | 640,372 | 1,180,734 | 1,749,343 | 2,635,861 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (558,918) | (767,645) | (1,585,368) | (1,580,842) |
Transfers of IRLCs to closed loans | (155,325) | (210,945) | (551,810) | (461,569) |
Balance at end of period | $ 259,210 | $ 721,658 | $ 259,210 | $ 721,658 |
FAIR VALUE - Gains and Losses i
FAIR VALUE - Gains and Losses in Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Assets: | ||||
Gain on origination and sale of loans, net | $ 345,882 | $ 262,401 | $ 1,302,884 | $ 574,768 |
Losses included in change in fair value of servicing rights | (112,700) | (56,000) | (223,400) | (235,700) |
Level 3 | Contingent Consideration | ||||
Liabilities: | ||||
Total net (losses) gains included in earnings | (19,670) | (32,650) | ||
Change in unrealized gains relating to assets and liabilities still held at period end | (19,670) | (32,650) | ||
Level 3 | Servicing Rights, net | ||||
Assets: | ||||
Total net (losses) gains included in earnings | 233,166 | 206,407 | 1,079,525 | 339,096 |
Change in unrealized gains relating to assets and liabilities still held at period end | 326,527 | 254,130 | 1,126,433 | 457,478 |
Level 3 | Interest Rate Lock Commitments | ||||
Derivatives: | ||||
Total net (losses) gains included in earnings | (73,871) | 202,144 | (387,835) | 593,450 |
Change in unrealized gains relating to assets and liabilities still held at period end | $ 259,210 | $ 721,658 | $ 259,210 | $ 721,658 |
FAIR VALUE - Fair Value Inputs
FAIR VALUE - Fair Value Inputs and Valuation Techniques (Details) | Sep. 30, 2021$ / loan | Dec. 31, 2020$ / loan |
Derivative | IRLCs | Minimum | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.030 | 0.028 |
Derivative | IRLCs | Maximum | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.999 | 0.999 |
Derivative | IRLCs | Weighted Average | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.761 | 0.705 |
Servicing rights | Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.047 | 0.050 |
Servicing rights | Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.086 | 0.134 |
Servicing rights | Minimum | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 70 | 71 |
Servicing rights | Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.091 | 0.100 |
Servicing rights | Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.190 | 0.348 |
Servicing rights | Maximum | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 126 | 139 |
Servicing rights | Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.060 | 0.062 |
Servicing rights | Weighted Average | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.101 | 0.140 |
Servicing rights | Weighted Average | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 84 | 89 |
BALANCE SHEET NETTING (Details)
BALANCE SHEET NETTING (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Net amounts presented in consolidated balance sheets | $ 341,359 | $ 647,939 |
Liabilities: | ||
Net amounts presented in consolidated balance sheets | 48,899 | 168,169 |
Total Liabilities, Gross amounts recognized | 8,630,065 | 7,039,809 |
Total Liabilities, Gross amounts offset in consolidated balance sheet | (50,843) | (70,922) |
Total Liabilities, Net amounts presented in consolidated balance sheet | 8,579,222 | 6,968,887 |
Total Liabilities, Gross amounts not offset in consolidated balance sheet, Financial instruments | (8,537,231) | (6,801,022) |
Total Liabilities, Gross amounts not offset in consolidated balance sheet, Cash collateral | (30) | 0 |
Total Liabilities, Net amount | 41,961 | 167,865 |
Warehouse lines of credit | ||
Liabilities: | ||
Securities Loaned, Gross/net amounts recognized | 8,212,142 | 6,577,429 |
Securities Loaned, Gross amounts not offset in consolidated balance sheet, Financial instruments | (8,212,142) | (6,577,429) |
Securities Loaned, Gross amounts not offset in consolidated balance sheet, Cash collateral | 0 | 0 |
Securities Loaned, Net amount | 0 | 0 |
Secured debt obligations | ||
Liabilities: | ||
Securities Loaned, Gross/net amounts recognized | 325,089 | 223,593 |
Securities Loaned, Gross amounts not offset in consolidated balance sheet, Financial instruments | (325,089) | (223,593) |
Securities Loaned, Gross amounts not offset in consolidated balance sheet, Cash collateral | 0 | 0 |
Securities Loaned, Net amount | 0 | 0 |
Forward delivery contracts | ||
Assets: | ||
Gross amounts recognized | 126,084 | 71,029 |
Gross amounts offset in consolidated balance sheets | (50,843) | (70,922) |
Net amounts presented in consolidated balance sheets | 75,241 | 107 |
Gross amounts not offset in consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, Cash collateral | (88,040) | 0 |
Net amount | (12,799) | 107 |
Liabilities: | ||
Gross amounts recognized | 50,882 | 234,488 |
Gross amounts offset in consolidated balance sheets | (50,843) | (70,922) |
Net amounts presented in consolidated balance sheets | 39 | 163,566 |
Gross amounts not offset in consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, Cash collateral | (30) | 0 |
Net amount | 9 | 163,566 |
Put options on treasuries | ||
Assets: | ||
Net amounts presented in consolidated balance sheets | 0 | 0 |
Liabilities: | ||
Gross amounts recognized | 10,889 | 4,299 |
Gross amounts offset in consolidated balance sheets | 0 | 0 |
Net amounts presented in consolidated balance sheets | 10,889 | 4,299 |
Gross amounts not offset in consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, Cash collateral | 0 | 0 |
Net amount | 10,889 | 4,299 |
Interest rate swap futures | ||
Assets: | ||
Gross amounts recognized | 483 | |
Gross amounts offset in consolidated balance sheets | 0 | |
Net amounts presented in consolidated balance sheets | 0 | 483 |
Gross amounts not offset in consolidated balance sheet, Financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, Cash collateral | 0 | |
Net amount | 483 | |
Liabilities: | ||
Gross amounts recognized | 31,063 | |
Gross amounts offset in consolidated balance sheets | 0 | |
Net amounts presented in consolidated balance sheets | 31,063 | 0 |
Gross amounts not offset in consolidated balance sheet, Financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, Cash collateral | 0 | |
Net amount | 31,063 | |
All except interest rate lock commitments | ||
Assets: | ||
Gross amounts recognized | 126,084 | 71,512 |
Gross amounts offset in consolidated balance sheets | (50,843) | (70,922) |
Net amounts presented in consolidated balance sheets | 75,241 | 590 |
Gross amounts not offset in consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, Cash collateral | (88,040) | 0 |
Net amount | $ (12,799) | $ 590 |
LOANS HELD FOR SALE, AT FAIR _3
LOANS HELD FOR SALE, AT FAIR VALUE - Unpaid Principal Balance of LHFS by Loan Type (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 8,678,433 | $ 6,693,111 |
Fair value adjustment | 195,303 | 262,313 |
Total | $ 8,873,736 | $ 6,955,424 |
Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Fixed | Confirming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 5,764,345 | $ 5,223,177 |
Fixed | Confirming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 66.00% | 78.00% |
Fixed | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 990,566 | $ 1,108,936 |
Fixed | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 12.00% | 16.00% |
ARM | Confirming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 192,737 | $ 260 |
ARM | Confirming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 2.00% | 0.00% |
ARM | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 68,973 | $ 45,243 |
ARM | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 1.00% | 1.00% |
Other - residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 1,659,792 | $ 312,954 |
Other - residential mortgage loans | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 19.00% | 5.00% |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 2,020 | $ 2,541 |
Consumer loans | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 0.00% | 0.00% |
LOANS HELD FOR SALE, AT FAIR _4
LOANS HELD FOR SALE, AT FAIR VALUE - Summary of Changes in Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||
Balance at beginning of period | $ 9,120,653 | $ 3,303,438 | $ 6,955,424 | $ 3,681,840 |
Origination and purchase of loans | 31,902,260 | 27,101,570 | 107,717,154 | 63,183,309 |
Sales | (32,200,708) | (25,598,952) | (106,414,376) | (62,192,701) |
Repurchases | 138,666 | 36,767 | 802,366 | 145,049 |
Principal payments | (53,316) | (6,820) | (119,822) | (43,306) |
Fair value (loss) gain | (33,819) | 52,361 | (67,010) | 114,173 |
Balance at end of period | $ 8,873,736 | $ 4,888,364 | $ 8,873,736 | $ 4,888,364 |
LOANS HELD FOR SALE, AT FAIR _5
LOANS HELD FOR SALE, AT FAIR VALUE - Components of Gain on Origination and Sale of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Receivables [Abstract] | |||||
Premium from loan sales | $ 674,782 | $ 968,550 | $ 1,552,668 | $ 2,125,730 | |
Servicing rights | 345,882 | 262,401 | 1,302,884 | 574,768 | |
Unrealized gains (losses) from derivative assets and liabilities | 42,984 | 195,383 | (139,483) | 498,090 | |
Realized (losses) gains from derivative assets and liabilities | (156,514) | (184,861) | 194,035 | (456,969) | |
Discount points, rebates and lender paid costs | (49,585) | (38,198) | (193,043) | (72,031) | |
Fair value (loss) gain | (33,818) | 52,361 | (67,010) | 114,173 | |
Provision for loan loss obligations for loans sold | (2,456) | (4,495) | (2,723) | (16,621) | |
Total gain on origination and sale of loans, net | 821,275 | $ 1,251,141 | 2,647,328 | $ 2,767,140 | |
Loans held for sale on non-accrual status | $ 36,900 | $ 36,900 | $ 25,800 |
SERVICING RIGHTS, AT FAIR VAL_3
SERVICING RIGHTS, AT FAIR VALUE - Components of Service Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 145,305,182 | $ 102,931,258 |
Conventional | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | 112,166,336 | 74,459,448 |
Government | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 33,138,846 | $ 28,471,810 |
SERVICING RIGHTS, AT FAIR VAL_4
SERVICING RIGHTS, AT FAIR VALUE - Unpaid Principal of Servicing Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 145,305,182 | $ 102,931,258 |
Percentage of servicing portfolio in forbearance resulting from COVID-19 | 1.10% | 2.40% |
Current loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 143,345,702 | $ 100,358,713 |
Loans 30 - 89 days delinquent | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | 455,284 | 709,946 |
Loans 90 or more days delinquent or in foreclosure | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 1,504,196 | $ 1,862,599 |
SERVICING RIGHTS, AT FAIR VAL_5
SERVICING RIGHTS, AT FAIR VALUE - Change in Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance at beginning of period | $ 1,776,395 | $ 569,927 | $ 1,124,302 | $ 444,443 |
Additions | 345,882 | 262,401 | 1,302,884 | 574,768 |
Sales proceeds, net | (182,892) | (2,319) | (365,680) | (9,620) |
Due to changes in valuation inputs or assumptions | (3,461) | (3,009) | 98,295 | (112,059) |
Other changes in fair value | (99,230) | (50,007) | (323,107) | (120,539) |
Balance at end of period | 1,836,694 | 776,993 | 1,836,694 | 776,993 |
Servicing liability | $ 4,800 | $ 3,500 | $ 4,800 | $ 3,500 |
SERVICING RIGHTS, AT FAIR VAL_6
SERVICING RIGHTS, AT FAIR VALUE - Component of Loan Servicing Fee Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | ||||
Contractual servicing fees | $ 99,640 | $ 46,234 | $ 271,374 | $ 112,917 |
Late, ancillary and other fees | 2,789 | 2,172 | 8,364 | 8,603 |
Total | $ 102,429 | $ 48,406 | $ 279,738 | $ 121,520 |
SERVICING RIGHTS, AT FAIR VAL_7
SERVICING RIGHTS, AT FAIR VALUE - Changes in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | ||||
Due to changes in valuation inputs or assumptions | $ (3,461) | $ (3,009) | $ 98,295 | $ (112,059) |
Other changes in fair value | (99,230) | (50,007) | (323,107) | (120,539) |
Realized losses on sales of servicing rights | (14,218) | (2,606) | (8,224) | (2,549) |
Net (loss) gain from derivatives hedging servicing rights | (21,553) | 26,309 | (94,158) | 125,330 |
Changes in fair value of servicing rights, net | $ (138,462) | $ (29,313) | $ (327,194) | $ (109,817) |
SERVICING RIGHTS, AT FAIR VAL_8
SERVICING RIGHTS, AT FAIR VALUE - Servicing Rights Sensitivity Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Transfers and Servicing [Abstract] | ||
Fair Value of Servicing Rights, net | $ 1,836,694 | $ 1,124,302 |
Discount Rate, Increase 100 basis points | (80,001) | (45,745) |
Discount Rate, Increase 200 basis points | (153,883) | (87,800) |
Cost of Servicing. Increase 10% | (18,600) | (11,556) |
Cost of Servicing. Increase 20% | (37,284) | (23,112) |
Prepayment Speed, Increase 10% | (66,889) | (63,351) |
Prepayment Speed, Increase 20% | $ (130,552) | $ (122,294) |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Fair Value, Asset | $ 341,359 | $ 647,939 |
Fair Value, Liability | 48,899 | 168,169 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Notional, Assets | 16,362,632 | 31,365,494 |
Notional, Liabilities | 2,020,206 | 99,635 |
Fair Value, Asset | 266,118 | 647,349 |
Fair Value, Liability | 6,908 | 304 |
Forward sales contracts | ||
Derivative [Line Items] | ||
Notional, Assets | 38,373,245 | 44,694 |
Notional, Liabilities | 203,024 | 54,397,834 |
Fair Value, Asset | 75,241 | 107 |
Fair Value, Liability | 39 | 163,566 |
Put options on treasuries | ||
Derivative [Line Items] | ||
Notional, Assets | 0 | |
Notional, Liabilities | 36,950 | 27,803 |
Fair Value, Asset | 0 | 0 |
Fair Value, Liability | 10,889 | 4,299 |
Interest rate swap futures | ||
Derivative [Line Items] | ||
Notional, Assets | 2,350 | |
Notional, Liabilities | 12,235 | 0 |
Fair Value, Asset | 0 | 483 |
Fair Value, Liability | $ 31,063 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Realized and Unrealized Gains on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized (losses) gains on derivative financial instruments | $ (135,083) | $ 36,831 | $ (39,606) | $ 166,451 |
Gain on origination and sale of loans, net | Interest rate lock commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized (losses) gains on derivative financial instruments | (73,871) | 202,144 | (387,835) | 593,450 |
Gain on origination and sale of loans, net | Forward sales contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized (losses) gains on derivative financial instruments | (29,867) | (181,681) | 477,215 | (530,186) |
Gain on origination and sale of loans, net | Interest rate swap futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized (losses) gains on derivative financial instruments | (29,683) | 534 | (81,891) | (5,739) |
Gain on origination and sale of loans, net | Put options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized (losses) gains on derivative financial instruments | 19,891 | (10,475) | 47,063 | (16,404) |
Change in fair value of servicing rights, net | Forward sales contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized (losses) gains on derivative financial instruments | (5,838) | 28,290 | (84,842) | 106,315 |
Change in fair value of servicing rights, net | Interest rate swap futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized (losses) gains on derivative financial instruments | (14,033) | (1,350) | (6,855) | 20,274 |
Change in fair value of servicing rights, net | Put options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized (losses) gains on derivative financial instruments | $ (1,682) | $ (631) | $ (2,461) | $ (1,259) |
VARIABLE INTEREST ENTITIES - Co
VARIABLE INTEREST ENTITIES - Consolidated VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Loans held for sale, at fair value | $ 8,873,736 | $ 6,955,424 |
Servicing rights, at fair value | 1,841,512 | 1,127,866 |
Total assets | 12,749,278 | 10,893,228 |
Warehouse and other lines of credit | 8,212,142 | 6,577,429 |
Debt obligations, net | 1,408,751 | 712,466 |
Total liabilities | 11,091,114 | 9,236,615 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Loans held for sale, at fair value | 2,462,653 | 1,595,442 |
Restricted cash | 0 | 170,413 |
Servicing rights, at fair value | 379,850 | 300,465 |
Total assets | 2,842,503 | 2,066,320 |
Warehouse and other lines of credit | 2,399,544 | 1,699,803 |
Debt obligations, net | 214,008 | 213,640 |
Total liabilities | $ 2,613,552 | $ 1,913,443 |
VARIABLE INTEREST ENTITIES - No
VARIABLE INTEREST ENTITIES - Nonconsolidated VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Trading securities | $ 56,412 | $ 0 |
Total assets | 12,749,278 | 10,893,228 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 74,765 | |
Maximum exposure to loss in non-consolidated VIEs | 74,765 | |
Variable Interest Entity, Not Primary Beneficiary | Joint Venture | ||
Variable Interest Entity [Line Items] | ||
Investments in joint ventures | 18,353 | 17,528 |
Maximum exposure to loss in non-consolidated VIEs | 18,353 | 17,528 |
Total assets in VIEs | 12,295 | $ 15,342 |
Variable Interest Entity, Not Primary Beneficiary | Retained Interests | ||
Variable Interest Entity [Line Items] | ||
Trading securities | 56,412 | |
Maximum exposure to loss in non-consolidated VIEs | 56,412 | |
Total assets in VIEs | $ 1,085,924 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Variable Interest Entity, Not Primary Beneficiary | Joint Venture | ||||
Variable Interest Entity [Line Items] | ||||
Share in net earnings of joint ventures | $ 3 | $ 2.9 | $ 8.1 | $ 6.7 |
WAREHOUSE AND OTHER LINES OF _3
WAREHOUSE AND OTHER LINES OF CREDIT - Additional Information (Details) | 1 Months Ended | 9 Months Ended | |||||
Apr. 30, 2021USD ($) | Feb. 28, 2021USD ($) | Dec. 31, 2020USD ($) | Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | May 31, 2019USD ($) | Sep. 30, 2021USD ($)lineOfCredit | |
Line of Credit Facility [Line Items] | |||||||
Number of lines of credit held | lineOfCredit | 15 | ||||||
Restricted cash | $ 204,465,000 | $ 97,805,000 | |||||
Warehouse Agreement Borrowings | |||||||
Line of Credit Facility [Line Items] | |||||||
Restricted cash | 6,700,000 | $ 7,000,000 | |||||
Warehouse Agreement Borrowings | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, term | 1 year | ||||||
Warehouse Agreement Borrowings | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, term | 2 years | ||||||
Warehouse and Revolving Credit Facilities | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 11,050,000,000 | ||||||
Weighted average interest rate | 2.06% | ||||||
Securitization Facilities | 2019-1 Securitization Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Debt instrument, term | 2 years | ||||||
Securitization Facilities | 2019-2 Securitization Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Debt instrument, term | 2 years | ||||||
Securitization Facilities | 2020-1 Securitization Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 600,000,000 | ||||||
Debt instrument, term | 2 years | ||||||
Securitization Facilities | 2020-2 Securitization Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||
Debt instrument, term | 3 years | ||||||
Securitization Facilities | 2021-1 Securitization Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||
Debt instrument, term | 3 years | ||||||
Securitization Facilities | 2021-2 Securitization Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||
Debt instrument, term | 3 years | ||||||
Securitization Facilities | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, term | 2 years | ||||||
Securitization Facilities | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, term | 3 years |
WAREHOUSE AND OTHER LINES OF _4
WAREHOUSE AND OTHER LINES OF CREDIT - Warehouse Borrowings (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Outstanding Balance | $ 8,212,142,000 | $ 6,577,429,000 |
Debt obligations, net | 1,408,751,000 | 712,466,000 |
Finance Servicing Rights | ||
Line of Credit Facility [Line Items] | ||
Debt obligations, net | 15,000,000 | |
Warehouse and Revolving Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 4,350,000,000 | |
Uncommitted Amount | 6,700,000,000 | |
Total Facility Amount | 11,050,000,000 | |
Outstanding Balance | 8,212,142,000 | 6,577,429,000 |
Warehouse and Revolving Credit Facilities | Facility 1 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 1,000,000,000 | |
Uncommitted Amount | 500,000,000 | |
Total Facility Amount | 1,500,000,000 | |
Outstanding Balance | 1,327,881,000 | 1,665,005,000 |
Warehouse and Revolving Credit Facilities | Facility 2 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 600,000,000 | |
Total Facility Amount | 600,000,000 | |
Outstanding Balance | 378,870,000 | 226,891,000 |
Warehouse and Revolving Credit Facilities | Facility 3 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 500,000,000 | |
Total Facility Amount | 500,000,000 | |
Outstanding Balance | 341,899,000 | 206,863,000 |
Warehouse and Revolving Credit Facilities | Facility 4 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 100,000,000 | |
Uncommitted Amount | 300,000,000 | |
Total Facility Amount | 400,000,000 | |
Outstanding Balance | 262,104,000 | 335,096,000 |
Warehouse and Revolving Credit Facilities | Facility 5 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 200,000,000 | |
Total Facility Amount | 200,000,000 | |
Outstanding Balance | 244,000 | 0 |
Warehouse and Revolving Credit Facilities | Facility 6 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 100,000,000 | |
Uncommitted Amount | 1,000,000,000 | |
Total Facility Amount | 1,100,000,000 | |
Outstanding Balance | 989,433,000 | 626,741,000 |
Warehouse and Revolving Credit Facilities | Facility 7 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 750,000,000 | |
Uncommitted Amount | 1,250,000,000 | |
Total Facility Amount | 2,000,000,000 | |
Outstanding Balance | 1,555,688,000 | 919,068,000 |
Warehouse and Revolving Credit Facilities | Facility 8 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Outstanding Balance | 0 | 300,000,000 |
Warehouse and Revolving Credit Facilities | Facility 9 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 300,000,000 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 300,000,000 | |
Outstanding Balance | 300,000,000 | 299,803,000 |
Warehouse and Revolving Credit Facilities | Facility 10 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 850,000,000 | |
Total Facility Amount | 850,000,000 | |
Outstanding Balance | 365,145,000 | 358,761,000 |
Warehouse and Revolving Credit Facilities | Facility 11 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 600,000,000 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 600,000,000 | |
Outstanding Balance | 600,000,000 | 600,000,000 |
Warehouse and Revolving Credit Facilities | Facility 12 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 500,000,000 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 500,000,000 | |
Outstanding Balance | 499,544,000 | 500,000,000 |
Warehouse and Revolving Credit Facilities | Facility 13 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 1,000,000,000 | |
Total Facility Amount | 1,000,000,000 | |
Outstanding Balance | 386,920,000 | 259,247,000 |
Warehouse and Revolving Credit Facilities | Facility 14 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Outstanding Balance | 0 | 279,954,000 |
Warehouse and Revolving Credit Facilities | Facility 15 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 500,000,000 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 500,000,000 | |
Outstanding Balance | 500,000,000 | 0 |
Warehouse and Revolving Credit Facilities | Facility 16 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 500,000,000 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 500,000,000 | |
Outstanding Balance | 500,000,000 | 0 |
Warehouse and Revolving Credit Facilities | Facility 17 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 500,000,000 | |
Total Facility Amount | 500,000,000 | |
Outstanding Balance | $ 204,414,000 | $ 0 |
WAREHOUSE AND OTHER LINES OF _5
WAREHOUSE AND OTHER LINES OF CREDIT - Information on Warehouse Borrowings (Details) - Warehouse Agreement Borrowings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Line of Credit Facility [Line Items] | ||||
Maximum outstanding balance during the period | $ 9,078,257 | $ 4,622,250 | $ 9,180,276 | $ 4,622,250 |
Average balance outstanding during the period | 8,515,189 | 3,633,792 | 8,066,303 | 3,433,434 |
Collateral pledged (loans held for sale) | $ 8,675,750 | $ 4,805,413 | $ 8,675,750 | $ 4,805,413 |
Weighted average interest rate during the period | 2.22% | 2.41% | 2.25% | 2.65% |
DEBT OBLIGATIONS - Information
DEBT OBLIGATIONS - Information on Outstanding Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Debt obligations, net | $ 1,408,751 | $ 712,466 |
Secured debt obligations | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 324,097 | 221,211 |
Secured debt obligations | 2020-VF1 Notes | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 10,382 | 7,571 |
Secured debt obligations | GMSR VFN | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 15,000 | 15,000 |
Secured debt obligations | Term notes | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 199,008 | 198,640 |
Secured debt obligations | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 99,707 | 0 |
Unsecured debt obligations | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 1,084,654 | 491,255 |
Unsecured debt obligations | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | $ 1,084,654 | $ 491,255 |
DEBT OBLIGATIONS - Secured Cred
DEBT OBLIGATIONS - Secured Credit Facilities (Details) | 3 Months Ended | |||
Sep. 30, 2021USD ($)agreement | Dec. 31, 2020USD ($) | May 31, 2015USD ($) | Oct. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Servicing rights, at fair value | $ 1,841,512,000 | $ 1,127,866,000 | ||
Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Servicing rights, at fair value | 379,850,000 | $ 300,465,000 | ||
Secured credit facilities | Securities Financing | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | $ 51,700,000 | |||
Number of master repurchase agreements entered into | agreement | 2 | |||
Secured credit facilities | Securities Financing | Minimum | ||||
Debt Instrument [Line Items] | ||||
Advance rate | 60.00% | |||
Secured credit facilities | Securities Financing | Maximum | ||||
Debt Instrument [Line Items] | ||||
Advance rate | 92.00% | |||
Secured credit facilities | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 50,000,000 | $ 25,000,000 | ||
Outstanding balance | $ 48,000,000 | |||
Available borrowing capacity | 268,000,000 | |||
Secured credit facilities | Revolving credit facility | Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Servicing rights, at fair value | $ 816,800,000 |
DEBT OBLIGATIONS - 2020-VF1 Not
DEBT OBLIGATIONS - 2020-VF1 Notes (Details) - Secured credit facilities - 2020-VF1 Notes - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Outstanding balance | $ 10,400,000 | |
Advance Receivables Trust | ||
Debt Instrument [Line Items] | ||
Face amount | $ 130,000,000 |
DEBT OBLIGATIONS - GMSR VFN (De
DEBT OBLIGATIONS - GMSR VFN (Details) - Secured credit facilities - GMSR VFN - USD ($) | Sep. 30, 2021 | Aug. 31, 2017 |
Debt Instrument [Line Items] | ||
Face amount | $ 65,000,000 | |
Outstanding balance | $ 15,000,000 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Face amount | $ 150,000,000 |
DEBT OBLIGATIONS - Term Notes (
DEBT OBLIGATIONS - Term Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Outstanding balance | $ 1,408,751 | $ 712,466 |
Secured credit facilities | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 324,097 | 221,211 |
Secured credit facilities | Term notes | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 199,008 | $ 198,640 |
Deferred financing costs | $ 1,000 |
DEBT OBLIGATIONS - Senior Notes
DEBT OBLIGATIONS - Senior Notes (Details) - USD ($) | 1 Months Ended | |||
Mar. 31, 2021 | Oct. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Outstanding balance | $ 1,408,751,000 | $ 712,466,000 | ||
Unsecured term loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | 1,084,654,000 | $ 491,255,000 | ||
Unsecured term loan | 6.50% Senior Unsecured Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 500,000,000 | |||
Stated interest rate | 6.50% | |||
Redemption price, percentage | 100.00% | |||
Outstanding balance | 492,800,000 | |||
Deferred financing costs | 7,200,000 | |||
Unsecured term loan | 6.50% Senior Unsecured Notes Due 2025 | Any time prior to November 1, 2022 | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 106.50% | |||
Percentage of principal amount to be redeemed | 40.00% | |||
Unsecured term loan | 6.125% Senior Unsecured Notes Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 600,000,000 | |||
Stated interest rate | 6.125% | |||
Redemption price, percentage | 100.00% | |||
Outstanding balance | 591,900,000 | |||
Deferred financing costs | $ 8,100,000 | |||
Unsecured term loan | 6.125% Senior Unsecured Notes Due 2028 | Any time prior to April 1, 2024 | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 106.125% | |||
Percentage of principal amount to be redeemed | 40.00% |
DEBT OBLIGATIONS - Interest Exp
DEBT OBLIGATIONS - Interest Expense (Details) - 30-Day or 90-Day LIBOR | 9 Months Ended |
Sep. 30, 2021 | |
Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 0.45% |
Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 4.75% |
INCOME TAXES - Components of Pr
INCOME TAXES - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Total income before income taxes and non-controlling interest | $ 178,985 | $ 728,916 | $ 655,624 | $ 1,467,396 |
Provision for income taxes | $ 24,708 | $ 567 | $ 47,210 | $ 1,457 |
Effective tax provision rate | 13.80% | 0.10% | 7.20% | 0.10% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset before valuation allowance | $ 56,000 | |
Deferred tax liability | $ 202,300,000 | |
Combined federal and state rate, percent | 26.00% | 26.00% |
Deferred tax asset, valuation allowance | $ 0 | |
TRA liability | $ 27,900,000 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - Joint Venture - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Loan processing and administrative services fee income | $ 3,650 | $ 3,835 | $ 10,757 | $ 10,017 | |
Loan origination broker fees expense | 22,749 | $ 21,456 | 63,457 | $ 55,323 | |
Amounts (payable) receivable from joint ventures | $ (3,307) | $ (3,307) | $ 2,196 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Personnel expense | $ 449,152 | $ 441,818 | $ 1,523,012 | $ 1,022,734 |
Shareholder | ||||
Related Party Transaction [Line Items] | ||||
Management fees | 200 | 200 | 800 | |
Consulting Fees | 16 | 57 | ||
Personnel expense | $ 78 | $ 51 | $ 300 | $ 200 |
EQUITY - Additional Information
EQUITY - Additional Information (Details) $ in Thousands | Feb. 11, 2021 | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Equity [Abstract] | ||||||
Stock, exchange ratio | 1 | |||||
Noncontrolling interest | $ 1,123,041 | $ 1,656,613 | $ 1,633,521 | $ 1,051,224 | $ 375,885 |
EQUITY - Summary of Ownership (
EQUITY - Summary of Ownership (Details) - LD Holdings | Sep. 30, 2021shares |
Noncontrolling Interest [Line Items] | |
Holdco Units (in shares) | 308,631,500 |
Ownership Percentage | 100.00% |
loanDepot, Inc. | |
Noncontrolling Interest [Line Items] | |
Holdco Units (in shares) | 132,962,858 |
Ownership Percentage by Noncontrolling Owners | 43.08% |
Continuing LLC Members | |
Noncontrolling Interest [Line Items] | |
Holdco Units (in shares) | 175,668,642 |
Ownership Percentage by Parent | 56.92% |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) $ in Millions | Feb. 11, 2021 | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 2.6 | $ 64.3 | ||||
Reversal of stock compensation | $ 0.9 | $ 7.6 | ||||
Unrecognized compensation | 32.1 | 32.1 | ||||
Stock, exchange ratio | 1 | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation | 25.6 | $ 25.6 | ||||
Recognition period | 3 years 7 months 20 days | |||||
Holding Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | 0.7 | $ 0.9 | $ 2.1 | $ 7.6 | ||
Unrecognized compensation | 6.5 | $ 6.5 | $ 9.5 | |||
Recognition period | 2 years 11 months 26 days | |||||
2021 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 1.9 | $ 62.3 | ||||
Common stock reserved for issuance (in shares) | shares | 16,250,000 | 16,250,000 | ||||
Percentage of shares of common stock outstanding | 2.00% | 2.00% |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of RSU Activity (Details) - RSUs - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Shares | ||
Unvested - beginning of period (in shares) | 1,069,573 | 0 |
Granted (in shares) | 516,234 | 3,884,350 |
Vested (in shares) | (14,654) | (2,248,197) |
Forfeited/Cancelled (in shares) | 0 | (65,000) |
Unvested - end of period (in shares) | 1,571,153 | 1,571,153 |
Weighted Average Grant Date Fair Value | ||
Unvested - beginning of period (in usd per share) | $ 22.02 | $ 0 |
Granted (in usd per share) | 10.40 | 23.05 |
Vested (in usd per share) | 14.06 | 26.29 |
Forfeited/Cancelled (in usd per share) | 0 | 26.45 |
Unvested - end of period (in usd per share) | $ 18.27 | $ 18.27 |
STOCK-BASED COMPENSATION - Hold
STOCK-BASED COMPENSATION - Holdco Unit Activity (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 10, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class A Holdco Units | |||||
Shares | |||||
Unvested - beginning of period (in shares) | 19,632,883 | 14,650,795 | 19,632,883 | ||
Granted (in shares) | 0 | 0 | |||
Vested (in shares) | (1,420,510) | (4,816,920) | |||
Forfeited/Cancelled (in shares) | (90,704) | (1,676,382) | |||
Unvested - end of period (in shares) | 13,139,581 | 13,139,581 | |||
Weighted Average Grant Date Fair Value | |||||
Unvested - beginning of period (in usd per share) | $ 0.50 | $ 0.50 | $ 0.50 | ||
Granted (in usd per share) | 0 | 0 | |||
Vested (in usd per share) | 0.49 | 0.51 | |||
Forfeited/Cancelled (in usd per share) | 0.50 | 0.52 | |||
Unvested - end of period (in usd per share) | $ 0.50 | $ 0.50 | |||
Class Z, Class Y, Class X, Class W and Class V Common Units | |||||
Shares | |||||
Unvested - beginning of period (in shares) | 100,679,480 | 745,740,350 | 100,679,480 | ||
Granted (in shares) | 0 | 1,227,342,174 | |||
Vested (in shares) | (26,693,033) | (533,303,418) | |||
Forfeited/Cancelled (in shares) | 0 | (75,670,919) | |||
Unvested - end of period (in shares) | 719,047,317 | 719,047,317 | |||
Weighted Average Grant Date Fair Value | |||||
Unvested - beginning of period (in usd per share) | $ 0.006 | $ 0.016 | $ 0.006 | ||
Granted (in usd per share) | 0 | $ 0.016 | |||
Vested (in usd per share) | 0.016 | 0.016 | |||
Forfeited/Cancelled (in usd per share) | 0 | 0.013 | |||
Unvested - end of period (in usd per share) | $ 0.016 | $ 0.016 | |||
Class Z, Class Y, Class X, Class W and Class V Common Units | LDI Units | |||||
Shares | |||||
Unvested - beginning of period (in shares) | 610,497,758 | 610,497,758 | |||
Vested (in shares) | (12,656,379) | ||||
Forfeited/Cancelled (in shares) | (3,552,286) | ||||
Unvested - end of period (in shares) | 594,289,093 | ||||
Weighted Average Grant Date Fair Value | |||||
Unvested - beginning of period (in usd per share) | $ 0.016 | $ 0.016 | |||
Vested (in usd per share) | 0.016 | ||||
Forfeited/Cancelled (in usd per share) | 0.016 | ||||
Unvested - end of period (in usd per share) | $ 0.016 |
STOCK-BASED COMPENSATION - Valu
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 0.30% | 0.30% |
Expected life | 1 year 8 months 12 days | 1 year 8 months 12 days |
Minimum expected volatility rate | 160.00% | 160.00% |
Maximum expected volatility rate | 175.00% | 175.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Basic earnings per share: | |||||
Net income attributable to loanDepot, Inc. | $ 51,475 | $ 0 | $ 104,911 | $ 0 | |
Weighted average shares - basic (in shares) | 130,297,565 | 127,941,331 | |||
Earnings per share - Basic (in usd per share) | $ 0.40 | $ 0.82 | |||
Diluted earnings per share: | |||||
Net income allocated to common stockholders - diluted | $ 51,475 | $ 104,911 | |||
Weighted average shares - diluted (in shares) | 130,297,565 | 127,941,331 | |||
Earnings per share - Diluted (in usd per share) | $ 0.40 | $ 0.82 | |||
RSUs | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities (in shares) | 1,405,281 | 1,008,758 | |||
Class B | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common stock, shares, outstanding | 0 | 0 | 0 | ||
Class A | |||||
Basic earnings per share: | |||||
Net income attributable to loanDepot, Inc. | $ 6,052 | $ 9,233 | |||
Weighted average shares - basic (in shares) | 15,318,921 | 11,259,896 | |||
Earnings per share - Basic (in usd per share) | $ 0.40 | $ 0.82 | |||
Diluted earnings per share: | |||||
Net income allocated to common stockholders - diluted | $ 6,052 | $ 9,233 | |||
Weighted average shares - diluted (in shares) | 15,318,921 | 11,259,896 | |||
Earnings per share - Diluted (in usd per share) | $ 0.40 | $ 0.82 | |||
Class D | |||||
Basic earnings per share: | |||||
Net income attributable to loanDepot, Inc. | $ 45,423 | $ 95,678 | |||
Weighted average shares - basic (in shares) | 114,978,644 | 116,681,435 | |||
Earnings per share - Basic (in usd per share) | $ 0.40 | $ 0.82 | |||
Diluted earnings per share: | |||||
Net income allocated to common stockholders - diluted | $ 45,423 | $ 95,678 | |||
Weighted average shares - diluted (in shares) | 114,978,644 | 116,681,435 | |||
Earnings per share - Diluted (in usd per share) | $ 0.40 | $ 0.82 | |||
Class C | Common shares | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities (in shares) | 191,579,524 | 195,111,599 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | 13 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2019 | |
Other Commitments [Line Items] | |||||
Customer escrow balance | $ 377.3 | $ 336.5 | |||
Percent of cash tax savings paid | 85.00% | ||||
TRA liability | $ 27.9 | ||||
Commitments to Extend Credit | |||||
Other Commitments [Line Items] | |||||
Commitments to originate loans | 31,500 | $ 18,400 | |||
Per Diem Charge Overage Refunds | |||||
Other Commitments [Line Items] | |||||
Loss contingency accrual | $ 4.8 | ||||
Processed refunds | $ 0.3 | $ 3.9 | $ 4.2 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Loan Loss Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 26,626 | $ 25,430 | $ 33,591 | $ 17,677 |
Provision for loan losses | 2,456 | 4,495 | 2,723 | 16,621 |
Payments, realized losses and other | (2,094) | (2,374) | (9,326) | (6,747) |
Balance at end of period | $ 26,988 | $ 27,551 | $ 26,988 | $ 27,551 |
REGULATORY CAPITAL AND LIQUID_2
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS (Details) $ in Millions | Sep. 30, 2021USD ($) |
Mortgage Banking [Abstract] | |
Minimum adjusted net worth balance requirement | $ 112.5 |
Uncategorized Items - ldi-20210
Label | Element | Value |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | $ 64,011,000 |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 0 |
Noncontrolling Interest, Increase (Decrease) From Stock-Based Compensation | ldi_NoncontrollingInterestIncreaseDecreaseFromStockBasedCompensation | 338,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | (12,844,000) |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 160,617,000 |
Adjustments To Additional Paid In Capital, Tax Adjustments | ldi_AdjustmentsToAdditionalPaidInCapitalTaxAdjustments | (201,653,000) |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 44,427,000 |
Over-Allotment Option [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 0 |
IPO [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 0 |
Retained Earnings [Member] | ||
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 104,911,000 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 18,977,000 |
Treasury Stock [Member] | ||
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | (12,844,000) |
Noncontrolling Interest [Member] | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 37,506,000 |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | (740,934,000) |
Noncontrolling Interest, Increase (Decrease) From Stock-Based Compensation | ldi_NoncontrollingInterestIncreaseDecreaseFromStockBasedCompensation | 338,000 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 160,617,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 208,905,000 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 25,450,000 |
Net Income (Loss) Attributable to Noncontrolling Interest | us-gaap_NetIncomeLossAttributableToNoncontrollingInterest | 294,598,000 |
Additional Paid-in Capital [Member] | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 26,505,000 |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 740,629,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | (6,000) |
Adjustments To Additional Paid In Capital, Tax Adjustments | ldi_AdjustmentsToAdditionalPaidInCapitalTaxAdjustments | (201,653,000) |
Common Class C [Member] | ||
Dividends | us-gaap_Dividends | 152,908,000 |
Common Class C [Member] | Retained Earnings [Member] | ||
Dividends | us-gaap_Dividends | $ 63,023,000 |
Common Class C [Member] | Common Stock [Member] | ||
Stock Issued During Period, Shares, Reorganization | ldi_StockIssuedDuringPeriodSharesReorganization | 181,789,329 |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | $ 182,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | $ (3,000) |
Stock Vested During Period, Shares | ldi_StockVestedDuringPeriodShares | (3,367,587) |
Common Class C [Member] | Common Stock [Member] | Over-Allotment Option [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ (1,000) |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (359,100) |
Common Class C [Member] | Common Stock [Member] | IPO [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ (2,000) |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (2,394,000) |
Common Class C [Member] | Noncontrolling Interest [Member] | ||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | $ 89,885,000 |
Common Class A [Member] | Common Stock [Member] | ||
Stock Issued During Period, Shares, Reorganization | ldi_StockIssuedDuringPeriodSharesReorganization | 2,215,687 |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | $ 2,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | $ 13,000 |
Stock Vested During Period, Shares | ldi_StockVestedDuringPeriodShares | 11,341,027 |
Common Class A [Member] | Common Stock [Member] | Over-Allotment Option [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 1,000 |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 577,500 |
Common Class A [Member] | Common Stock [Member] | IPO [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 4,000 |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 3,850,000 |
Class A And D Common Stock [Member] | ||
Dividends | us-gaap_Dividends | $ 98,763,000 |
Class A And D Common Stock [Member] | Retained Earnings [Member] | ||
Dividends | us-gaap_Dividends | 40,730,000 |
Class A And D Common Stock [Member] | Noncontrolling Interest [Member] | ||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | $ 58,033,000 |
Common Class D [Member] | Common Stock [Member] | ||
Stock Issued During Period, Shares, Reorganization | ldi_StockIssuedDuringPeriodSharesReorganization | 121,368,600 |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | $ 121,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | $ (4,000) |
Stock Vested During Period, Shares | ldi_StockVestedDuringPeriodShares | (4,715,556) |
Common Class D [Member] | Common Stock [Member] | Over-Allotment Option [Member] | ||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (218,400) |
Common Class D [Member] | Common Stock [Member] | IPO [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ (2,000) |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (1,456,000) |