COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 09, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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, $0.001 per value per share | |
Trading Symbol | LDI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001831631 | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 64,282,684 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 | |
Class C | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 152,010,113 | |
Class D | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 97,026,671 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 954,930 | $ 419,571 |
Restricted cash | 194,645 | 201,025 |
Accounts receivable, net | 91,766 | 56,183 |
Loans held for sale, at fair value (includes $1,800,968 and $2,557,490 pledged to creditors in securitization trusts at June 30, 2022 and December 31, 2021, respectively) | 4,656,338 | 8,136,817 |
Derivative assets, at fair value | 153,607 | 194,665 |
Servicing rights, at fair value (includes $484,393 and $400,678 pledged to creditors in securitization trusts at June 30, 2022 and December 31, 2021, respectively) | 2,213,700 | 2,006,712 |
Trading securities, at fair value | 105,308 | 72,874 |
Property and equipment, net | 111,443 | 104,262 |
Operating lease right-of-use assets | 48,443 | 55,646 |
Prepaid expenses and other assets | 140,145 | 140,315 |
Loans eligible for repurchase | 506,454 | 363,373 |
Investments in joint ventures | 18,408 | 18,553 |
Goodwill and intangible assets, net | 0 | 42,317 |
Total assets | 9,195,187 | 11,812,313 |
Liabilities: | ||
Warehouse and other lines of credit | 4,265,343 | 7,457,199 |
Accounts payable, accrued expenses and other liabilities | 643,144 | 624,444 |
Derivative liabilities, at fair value | 72,758 | 37,797 |
Liability for loans eligible for repurchase | 506,454 | 363,373 |
Operating lease liability | 66,485 | 71,932 |
Debt obligations, net | 2,427,140 | 1,628,208 |
Total liabilities | 7,981,324 | 10,182,953 |
Commitments and contingencies (Note 15) | ||
Equity: | ||
Preferred stock, $0.001 par value, 50,000,000 authorized, none issued at June 30, 2022 and December 31, 2021, respectively | 0 | 0 |
Treasury stock at cost, 1,664,301 and 1,593,366 shares at June 30, 2022 and December 31, 2021, respectively | (13,087) | (12,852) |
Additional paid-in capital | 762,635 | 565,073 |
Retained deficit | (205,235) | (28,976) |
Noncontrolling interest | 669,236 | 1,105,803 |
Total equity | 1,213,863 | 1,629,360 |
Total liabilities and equity | 9,195,187 | 11,812,313 |
Class A | ||
Equity: | ||
Common stock, $0.001 par value | 65 | 38 |
Class B | ||
Equity: | ||
Common stock, $0.001 par value | 0 | 0 |
Class C | ||
Equity: | ||
Common stock, $0.001 par value | 152 | 173 |
Class D | ||
Equity: | ||
Common stock, $0.001 par value | $ 97 | $ 101 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans held for sale, at fair value | $ 4,656,338 | $ 8,136,817 |
Servicing rights, at fair value | $ 2,213,700 | $ 2,006,712 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Treasury stock (in shares) | 1,664,301 | 1,593,366 |
Class A | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock issued (in shares) | 65,257,349 | 38,060,302 |
Class B | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock issued (in shares) | 0 | 0 |
Class C | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock issued (in shares) | 152,191,394 | |
Class D | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock issued (in shares) | 97,026,671 | |
Pledged as Collateral | ||
Loans held for sale, at fair value | $ 1,800,968 | $ 2,557,490 |
Servicing rights, at fair value | $ 484,393 | $ 400,678 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
REVENUES: | ||||
Interest income | $ 62,722 | $ 61,874 | $ 115,687 | $ 116,605 |
Interest expense | (39,923) | (54,848) | (79,813) | (108,346) |
Net interest income | 22,799 | 7,026 | 35,874 | 8,259 |
Gain on origination and sale of loans, net | 146,562 | 692,479 | 509,692 | 1,826,054 |
Origination income, net | 39,108 | 92,624 | 98,181 | 194,223 |
Servicing fee income | 117,326 | 94,742 | 228,385 | 177,309 |
Change in fair value of servicing rights, net | (33,507) | (145,098) | (101,890) | (188,733) |
Other income | 16,351 | 38,141 | 41,707 | 78,810 |
Total net revenues | 308,639 | 779,914 | 811,949 | 2,095,922 |
EXPENSES: | ||||
Personnel expense | 296,569 | 470,125 | 642,563 | 1,073,861 |
Marketing and advertising expense | 60,837 | 114,133 | 162,350 | 223,759 |
Direct origination expense | 33,996 | 50,017 | 87,153 | 96,993 |
General and administrative expense | 63,927 | 48,654 | 113,675 | 99,972 |
Occupancy expense | 9,388 | 9,283 | 18,784 | 19,270 |
Depreciation and amortization | 11,323 | 8,686 | 21,867 | 17,139 |
Servicing expense | 10,741 | 27,241 | 32,252 | 53,851 |
Other interest expense | 33,140 | 21,266 | 47,533 | 34,438 |
Goodwill impairment | 40,736 | 0 | 40,736 | 0 |
Total expenses | 560,657 | 749,405 | 1,166,913 | 1,619,283 |
(Loss) income before income taxes | (252,018) | 30,509 | (354,964) | 476,639 |
Income tax (benefit) expense | (28,196) | 4,225 | (39,823) | 22,502 |
Net (loss) income | (223,822) | 26,284 | (315,141) | 454,137 |
Net (loss) income attributable to noncontrolling interests | (122,894) | 17,723 | (179,472) | 400,701 |
Net (loss) income attributable to loanDepot, Inc. | $ (100,928) | $ 8,561 | $ (135,669) | $ 53,436 |
(Loss) earnings per share: | ||||
Basic (in usd per share) | $ (0.66) | $ 0.07 | $ (0.93) | $ 0.42 |
Diluted (in usd per share) | $ (0.66) | $ 0.07 | $ (0.93) | $ 0.42 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 153,822,380 | 126,726,876 | 146,415,135 | 126,392,949 |
Diluted (in shares) | 153,822,380 | 126,726,876 | 146,415,135 | 126,392,949 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | IPO | Greenshoe | Class A | Class C | Class D | Class A and D | Class X Common Unit | Common stock Class A | Common stock Class A IPO | Common stock Class A Greenshoe | Common stock Class C | Common stock Class C IPO | Common stock Class C Greenshoe | Common stock Class D | Common stock Class D IPO | Common stock Class D Greenshoe | 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 Interests Class C | Non-controlling Interests Class A and D | Non-controlling Interests Class X Common Unit |
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 | $ 1,656,613 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Deferred taxes and other tax adjustments associated with the Reorganization and IPO | (203,370) | (203,370) | ||||||||||||||||||||||||
Distributions for taxes on behalf of shareholders, net | (160,617) | (160,617) | ||||||||||||||||||||||||
Net (loss) income | 294,598 | $ 338 | 294,598 | $ 338 | ||||||||||||||||||||||
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 | 1,656,613 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Net (loss) income | 454,137 | |||||||||||||||||||||||||
Balance at end of period (in shares) at Jun. 30, 2021 | 12,541,086 | 181,268,155 | 114,978,644 | |||||||||||||||||||||||
Balance at end of period at Jun. 30, 2021 | 1,568,834 | $ 13 | $ 181 | $ 115 | 0 | 562,658 | (44,821) | 1,050,688 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Effect of the reorganization (in shares) | 2,215,687 | 181,789,329 | 121,368,600 | |||||||||||||||||||||||
Effect of the Reorganization | 0 | $ 2 | $ 182 | $ 121 | 740,629 | (740,934) | ||||||||||||||||||||
Net issuance of common stock under stock-based compensation plans (in shares) | 5,897,899 | 2,231,926 | (4,715,556) | |||||||||||||||||||||||
Net issuance of common shares under stock based compensation plans | 0 | $ 6 | $ 2 | $ (4) | (4) | |||||||||||||||||||||
Stock-based compensation | 61,414 | 25,403 | 36,011 | |||||||||||||||||||||||
Distributions for taxes on behalf of shareholders, net | (13,816) | (5,698) | (8,118) | |||||||||||||||||||||||
Net (loss) income | 159,539 | 53,436 | 106,103 | |||||||||||||||||||||||
Effect of sale of stocks (in shares) | 3,850,000 | 577,500 | (2,394,000) | (359,100) | (1,456,000) | (218,400) | ||||||||||||||||||||
Effect of sale of stocks | $ 0 | $ 0 | $ 4 | $ 1 | $ (2) | $ (1) | $ (2) | |||||||||||||||||||
Balance at end of period (in shares) at Jun. 30, 2021 | 12,541,086 | 181,268,155 | 114,978,644 | |||||||||||||||||||||||
Balance at end of period at Jun. 30, 2021 | 1,568,834 | $ 13 | $ 181 | $ 115 | 0 | 562,658 | (44,821) | 1,050,688 | ||||||||||||||||||
Balance at beginning of period (in shares) at Mar. 31, 2021 | 6,643,187 | 179,746,190 | 119,694,200 | |||||||||||||||||||||||
Balance at beginning of period at Mar. 31, 2021 | 1,773,958 | $ 7 | $ 180 | $ 119 | 0 | 561,494 | 42,412 | 1,169,746 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Deferred taxes and other tax adjustments associated with the Reorganization and IPO | 370 | 370 | ||||||||||||||||||||||||
Net issuance of common stock under stock-based compensation plans (in shares) | 5,897,899 | 1,521,965 | (4,715,556) | |||||||||||||||||||||||
Net issuance of common shares under stock based compensation plans | 0 | $ 6 | $ 1 | $ (4) | (3) | |||||||||||||||||||||
Dividends | $ 137,865 | $ 88,000 | $ 56,497 | $ 36,062 | ||||||||||||||||||||||
Dividends | $ (81,368) | $ (51,938) | ||||||||||||||||||||||||
Stock-based compensation | 1,935 | 797 | 1,138 | |||||||||||||||||||||||
Distributions for taxes on behalf of shareholders, net | (7,848) | (3,235) | (4,613) | |||||||||||||||||||||||
Net (loss) income | 26,284 | 8,561 | 17,723 | |||||||||||||||||||||||
Balance at end of period (in shares) at Jun. 30, 2021 | 12,541,086 | 181,268,155 | 114,978,644 | |||||||||||||||||||||||
Balance at end of period at Jun. 30, 2021 | 1,568,834 | $ 13 | $ 181 | $ 115 | 0 | 562,658 | (44,821) | 1,050,688 | ||||||||||||||||||
Balance at beginning of period (in shares) at Dec. 31, 2021 | 38,060,302 | 36,466,936 | 172,729,168 | 100,822,084 | ||||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2021 | 1,629,360 | $ 38 | $ 173 | $ 101 | (12,852) | 565,073 | (28,976) | 1,105,803 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Deferred taxes and other tax adjustments associated with the Reorganization and IPO | (17,744) | (17,744) | ||||||||||||||||||||||||
Net issuance of common stock under stock-based compensation plans (in shares) | 27,126,112 | (20,537,774) | (3,795,413) | |||||||||||||||||||||||
Net issuance of common shares under stock based compensation plans | (235) | $ 27 | $ (21) | $ (4) | (235) | 211,930 | (211,932) | |||||||||||||||||||
Dividends | $ 14,003 | 11,670 | $ 6,338 | 5,273 | ||||||||||||||||||||||
Dividends | $ (7,665) | (6,397) | ||||||||||||||||||||||||
Stock-based compensation | 7,021 | 3,376 | 3,645 | |||||||||||||||||||||||
Distributions for taxes on behalf of shareholders, net | (63,725) | (28,979) | (34,746) | |||||||||||||||||||||||
Net (loss) income | (315,141) | (135,669) | (179,472) | |||||||||||||||||||||||
Balance at end of period (in shares) at Jun. 30, 2022 | 65,257,349 | 152,191,394 | 97,026,671 | 63,593,048 | 152,191,394 | 97,026,671 | ||||||||||||||||||||
Balance at end of period at Jun. 30, 2022 | 1,213,863 | $ 65 | $ 152 | $ 97 | (13,087) | 762,635 | (205,235) | 669,236 | ||||||||||||||||||
Balance at beginning of period (in shares) at Mar. 31, 2022 | 43,600,418 | 170,690,888 | 97,026,671 | |||||||||||||||||||||||
Balance at beginning of period at Mar. 31, 2022 | 1,511,169 | $ 45 | $ 171 | $ 97 | (13,015) | 656,267 | (77,151) | 944,755 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Deferred taxes and other tax adjustments associated with the Reorganization and IPO | (18,426) | (18,426) | ||||||||||||||||||||||||
Net issuance of common stock under stock-based compensation plans (in shares) | 19,992,630 | (18,499,494) | 0 | |||||||||||||||||||||||
Net issuance of common shares under stock based compensation plans | (72) | $ 20 | $ (19) | $ 0 | (72) | 122,452 | (122,453) | |||||||||||||||||||
Forfeiture of dividends on unvested Class A RSUs | $ 82 | $ 37 | $ 45 | |||||||||||||||||||||||
Stock-based compensation | 4,711 | 2,342 | 2,369 | |||||||||||||||||||||||
Distributions for taxes on behalf of shareholders, net | (59,779) | (27,193) | (32,586) | |||||||||||||||||||||||
Net (loss) income | (223,822) | (100,928) | (122,894) | |||||||||||||||||||||||
Balance at end of period (in shares) at Jun. 30, 2022 | 65,257,349 | 152,191,394 | 97,026,671 | 63,593,048 | 152,191,394 | 97,026,671 | ||||||||||||||||||||
Balance at end of period at Jun. 30, 2022 | $ 1,213,863 | $ 65 | $ 152 | $ 97 | $ (13,087) | $ 762,635 | $ (205,235) | $ 669,236 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class A and D | |||
Dividends declared (in usd per share) | $ 0.69 | $ 0.08 | $ 0.69 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (315,141) | $ 454,137 |
Adjustments to reconcile net (loss) income to net | ||
Depreciation and amortization expense | 21,867 | 17,139 |
Amortization of operating lease right-of-use asset | 11,272 | 11,594 |
Amortization of debt issuance costs | 8,067 | 6,744 |
Gain on origination and sale of loans | (809,990) | (2,041,979) |
Gain on sale of servicing rights | (20,041) | (11,478) |
Fair value change in trading securities | 13,883 | 0 |
Provision for loss obligation on sold loans and servicing rights | 108,120 | 5,752 |
(Decrease) increase in provision for deferred income taxes | (39,643) | 202,871 |
Fair value change in derivative assets | 191,682 | 303,639 |
Fair value change in derivative liabilities | 34,961 | (109,364) |
Premium (paid) received on derivatives | (150,624) | 5,061 |
Purchase of options contracts | 0 | (10,383) |
Fair value change in loans held for sale | 174,519 | 33,191 |
Fair value change in servicing rights | (154,290) | 122,120 |
Stock-based compensation expense | 7,021 | 61,752 |
Originations of loans | (37,142,855) | (75,814,894) |
Proceeds from sales of loans | 40,992,588 | 75,281,888 |
Proceeds from principal payments | 100,885 | 66,506 |
Payments to investors for loan repurchases | (376,387) | (671,166) |
Gain on extinguishment of debt | (10,528) | 0 |
Goodwill impairment | 40,736 | 0 |
Disbursements from joint ventures | 4,565 | 5,790 |
Other changes in operating assets and liabilities | (19,739) | (189,193) |
Net cash provided by (used in) operating activities | 2,670,928 | (2,270,273) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (28,844) | (30,400) |
Proceeds from sale of servicing rights | 387,968 | 176,995 |
Cash flows received on trading securities | 4,109 | 0 |
Investments in joint ventures | (350) | (1,115) |
Return of capital from joint ventures | 0 | 189 |
Net cash flows provided by investing activities | 362,883 | 145,669 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from borrowings on warehouse and other lines of credit | 42,522,401 | 85,132,551 |
Repayment of borrowings on warehouse and other lines of credit | (45,714,257) | (83,211,614) |
Proceeds from debt obligations | 2,099,247 | 1,044,221 |
Payments on debt obligations | (1,290,746) | (276,947) |
Payments of debt issuance costs | (4,135) | (13,913) |
Payments on financing lease obligation | 0 | (1,367) |
Treasury stock purchased to net settle and withhold taxes on vested shares | (235) | 0 |
Dividends and shareholder distributions | (117,107) | (400,298) |
Net cash (used in) provided by financing activities | (2,504,832) | 2,272,633 |
Net change in cash and cash equivalents and restricted cash | 528,979 | 148,029 |
Cash and cash equivalents and restricted cash at beginning of the period | 620,596 | 488,689 |
Cash and cash equivalents and restricted cash at end of the period | 1,149,575 | 636,718 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid (received) during the period for interest | 120,060 | 126,497 |
Cash paid (received) during the period for income taxes | 24,223 | 7,628 |
Supplemental disclosure of noncash investing and financing activities | ||
Operating leases right-of-use assets obtained in exchange for lease liabilities | 8,656 | 5,285 |
Trading securities retained in securitizations | 50,426 | 16,757 |
Purchase of equipment under financing leases | $ 0 | $ 168 |
DESCRIPTION OF BUSINESS, PRESEN
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
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 six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2021 (“2021 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, Inc.’s common stock began trading on the New York Stock Exchange on February 11, 2021 under the ticker symbol “LDI.” loanDepot, Inc. is a holding company and its sole material asset is its equity interest in LD Holdings. As of June 30, 2022 the consolidated subsidiaries of LD Holdings included 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 to LD Holdings and its consolidated subsidiaries, and (2) after the IPO to loanDepot, Inc. and its consolidated subsidiaries, including LD Holdings. The Company engages in the originating, financing, selling, 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. 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 2021 Form 10-K. Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with U.S. 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. Prior to the IPO, the Company completed a reorganization where LLC units in LD Holdings held by certain members (“Continuing LLC Members) were exchanged on a one-for-one basis for Class A holding units (“Holdco Units”) and Class C common stock. 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. As a result of the IPO and reorganization, loanDepot, Inc. became a holding company, its sole material asset is its equity interest in LD Holdings and as the sole managing member of LD Holdings, loanDepot, Inc. indirectly operates and controls all of LD Holdings’ business and affairs. The IPO and reorganization were considered transactions between entities under common control. 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 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. To conform to the current period presentation, servicing expense on the consolidated statements of operations includes subservicing expense and in-house servicing expense. 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, trading securities, awards granted under the incentive equity plan, determining the loan loss obligation on sold loans and MSRs, and goodwill impairment. Actual results could differ from those estimates. 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 23% of total loan originations for the six months ended June 30, 2022. The Company sells mortgage loans to various third-party investors. Three investors accounted for 32%, 27%, and 19% of the Company’s loan sales for the six months ended June 30, 2022. No other investors accounted for more than 5% of the loan sales for the six months ended June 30, 2022. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2022 | |
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 2021 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. June 30, 2022 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 954,930 $ 954,930 $ — $ — Restricted cash 194,645 194,645 — — Loans held for sale, at fair value 4,656,338 — 4,656,338 — Derivative assets, at fair value 153,607 — 61,721 91,886 Servicing rights, at fair value 2,213,700 — — 2,213,700 Trading securities, at fair value 105,308 — 105,308 — Loans eligible for repurchase 506,454 — 506,454 — Liabilities Warehouse and other lines of credit $ 4,265,343 $ — $ 4,265,343 $ — Derivative liabilities, at fair value 72,758 14,859 23,618 34,281 Servicing rights, at fair value 9,107 — — 9,107 Debt obligations: Secured credit facilities 1,237,269 — 1,239,841 — Term Notes 199,415 — 200,000 — Senior Notes 990,456 — 657,453 — Liability for loans eligible for repurchase 506,454 — 506,454 — December 31, 2021 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 419,571 $ 419,571 $ — $ — Restricted cash 201,025 201,025 — — Loans held for sale, at fair value 8,136,817 — 8,136,817 — Derivative assets, at fair value 194,665 4,924 5,358 184,383 Servicing rights, at fair value 2,006,712 — — 2,006,712 Trading securities, at fair value 72,874 — 72,874 — Loans eligible for repurchase 363,373 — 363,373 — Liabilities Warehouse and other lines of credit $ 7,457,199 $ — $ 7,457,199 $ — Derivative liabilities, at fair value 37,797 31,070 2,964 3,763 Servicing rights, at fair value 7,310 — — 7,310 Debt obligations: Secured credit facilities 343,759 — 345,596 — Term Notes 199,133 — 200,000 — Senior Notes 1,085,316 — 1,057,977 — Liability for loans eligible for repurchase 363,373 — 363,373 — 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. June 30, 2022 Recurring Fair Value Measurements of Assets and 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 $ — $ 4,656,338 $ — $ 4,656,338 Trading securities — 105,308 — 105,308 Derivative assets: Interest rate lock commitments — — 91,886 91,886 Forward sale contracts — 43,926 — 43,926 MBS put options — 17,795 — 17,795 Servicing rights — — 2,213,700 2,213,700 Total assets at fair value $ — $ 4,823,367 $ 2,305,586 $ 7,128,953 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 34,281 $ 34,281 Interest rate swap futures 5,746 — — 5,746 Forward sale contracts — 10,694 — 10,694 Put options on treasuries 9,113 — — 9,113 MBS put options — 12,924 — 12,924 Servicing rights — — 9,107 9,107 Total liabilities at fair value $ 14,859 $ 23,618 $ 43,388 $ 81,865 December 31, 2021 Recurring Fair Value Measurements of Assets and 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 $ — $ 8,136,817 $ — $ 8,136,817 Trading securities — 72,874 — 72,874 Derivative assets: Interest rate lock commitments — — 184,383 184,383 Forward sale contracts — 5,358 — 5,358 Interest rate swap futures 4,924 — — 4,924 Servicing rights — — 2,006,712 2,006,712 Total assets at fair value $ 4,924 $ 8,215,049 $ 2,191,095 $ 10,411,068 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 3,763 $ 3,763 Forward sale contracts — 2,964 — 2,964 Put options on treasuries 31,070 — — 31,070 Servicing rights — — 7,310 7,310 Total liabilities at fair value $ 31,070 $ 2,964 $ 11,073 $ 45,107 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 June 30, 2022 Six Months Ended June 30, 2022 IRLCs, net Servicing IRLCs, net Servicing Balance at beginning of period $ 12,000 $ 2,078,187 $ 180,620 $ 1,999,402 Total net gains or losses included in earnings (realized and unrealized) 114,197 212,777 257,154 624,546 Sales and settlements Sales — (86,371) — (419,355) Settlements (1) (38,536) — (271,458) — Transfers of IRLCs to closed loans (30,056) — (108,711) — Balance at end of period $ 57,605 $ 2,204,593 $ 57,605 $ 2,204,593 (1) Funded amount for IRLCs. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 IRLCs, net Servicing IRLCs, net Servicing Balance at beginning of period $ 246,778 $ 1,766,088 $ 647,045 $ 1,124,302 Total net gains or losses included in earnings (realized and unrealized) 720,422 203,937 1,108,970 846,359 Sales and settlements Sales — (193,630) — (194,266) Settlements (1) (432,748) — (1,026,450) — Transfers of IRLCs to closed loans (201,371) — (396,484) — Balance at end of period $ 333,081 $ 1,776,395 $ 333,081 $ 1,776,395 (1) Funded amount for IRLCs. The following presents the gains and losses included in earnings 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 June 30, 2022 Six Months Ended June 30, 2022 IRLCs, net (1) Servicing Rights, net (2) IRLCs, net (1) Servicing Rights, net (3) Total net gains (losses) included in earnings $ 45,605 $ 212,777 $ (123,015) $ 624,546 Change in unrealized gains relating to assets and liabilities still held at period end $ 57,605 $ 215,835 $ 57,605 $ 615,444 (1) Gains (losses) included in gain on origination and sale of loans, net. (2) Includes $180.5 million in gains included in gain on origination and sale of loans, net and $32.3 million of gains included in change in fair value of servicing rights, net, for the three months ended June 30, 2022. (3) Includes $450.2 million in gains included in gain on origination and sale of loans, net and $174.3 million of gains included in change in fair value of servicing rights, net, for the six months ended June 30, 2022. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 IRLCs, net (1) Servicing Rights, net (2) Interest Rate Lock Commitments (1) Servicing Rights, net (3) Total net gains (losses) included in earnings $ 86,303 $ 203,937 $ (313,964) $ 846,359 Change in unrealized gains relating to assets and liabilities still held at period end $ 333,081 $ 296,555 $ 333,081 $ 1,038,347 (1) Gains (losses) included in gain on origination and sale of loans, net. (2) Includes $427.5 million in gains included in gain on origination and sale of loans, net and $223.5 million in losses included in change in fair value of servicing rights, net, for the three months ended June 30, 2021. (3) Includes $957.0 million in gains included in gain on origination and sale of loans, net and $110.6 million of losses included in change in fair value of servicing rights, net, for the six months ended June 30, 2021. 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: June 30, 2022 December 31, 2021 Unobservable Input Range of inputs Weighted Average (2) Range of inputs Weighted Average (2) IRLCs: Pull-through rate 1.0% - 99.9% 80.2% 0.3% - 99.3% 74.2% Servicing rights Discount rate (1) 4.6% - 10.5% 6.2% 4.5% - 9.0% 5.8% Prepayment rate (1) 5.4% - 14.9% 7.2% 8.4% - 18.7% 10.2% Cost to service (per loan) $63 - $136 $85 $70 - $114 $82 (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. (2) Weighted average inputs are based on the committed amounts for IRLCs and the UPB of the underlying loans for servicing rights. 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 June 30, 2022 or December 31, 2021. Financial Statement Items Measured at Amortized Cost Warehouse and other lines of credit - The Company’s warehouse and other lines of credit bear interest at a rate that is periodically adjusted based on a market index. The carrying value of warehouse and other 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 June 30, 2022 and December 31, 2021. Fair value of the Company’s Senior Notes issued in October 2020 and March 2021 were estimated using the quoted market prices at June 30, 2022. The debt obligations are classified as Level 2 in the fair value hierarchy. |
BALANCE SHEET NETTING
BALANCE SHEET NETTING | 6 Months Ended |
Jun. 30, 2022 | |
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 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 and other lines of credit and secured debt obligations were secured by financial instruments with fair value that exceeded the liability amount recorded on the consolidated balance sheets as of June 30, 2022 and December 31, 2021, respectively. June 30, 2022 Gross amounts recognized Gross amounts offset in consolidated balance sheet Net amounts presented in consolidated balance sheet Gross amounts not offset in consolidated balance sheet Net amount Financial instruments Cash collateral Assets: Forward sale contracts $ 100,202 $ (56,276) $ 43,926 $ — $ (40,606) $ 3,320 MBS put options 17,795 — 17,795 — — 17,795 Total Assets $ 117,997 $ (56,276) $ 61,721 $ — $ (40,606) $ 21,115 Liabilities: Forward sale contracts $ 66,970 $ (56,276) $ 10,694 $ — $ (1,947) $ 8,747 Put options on treasuries 9,113 — 9,113 — — 9,113 MBS put options 12,924 — 12,924 — — 12,924 Interest rate swap futures 5,746 — 5,746 — — 5,746 Warehouse and other lines of credit 4,265,343 — 4,265,343 (4,265,343) — — Secured debt obligations (1) 1,439,841 — 1,439,841 (1,439,841) — — Total Liabilities $ 5,799,937 $ (56,276) $ 5,743,661 $ (5,705,184) $ (1,947) $ 36,530 (1) Secured debt obligations as of June 30, 2022 included secured credit facilities and Term Notes. December 31, 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 sale contracts $ 29,497 $ (24,139) $ 5,358 $ — $ (1,447) $ 3,911 Interest rate swap futures 4,924 — 4,924 — — 4,924 Total Assets $ 34,421 $ (24,139) $ 10,282 $ — $ (1,447) $ 8,835 Liabilities: Forward sale contracts $ 27,103 $ (24,139) $ 2,964 $ — $ (1,736) $ 1,228 Put options on treasuries 31,070 — 31,070 — — 31,070 Warehouse and other lines of credit 7,457,199 — 7,457,199 (7,457,199) — — Secured debt obligations (1) 545,596 — 545,596 (545,596) — — Total Liabilities $ 8,060,968 $ (24,139) $ 8,036,829 $ (8,002,795) $ (1,736) $ 32,298 (1) Secured debt obligations as of December 31, 2021 included secured credit facilities and Term 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 required to provide |
LOANS HELD FOR SALE, AT FAIR VA
LOANS HELD FOR SALE, AT FAIR VALUE | 6 Months Ended |
Jun. 30, 2022 | |
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 of loan as of June 30, 2022 and December 31, 2021: June 30, December 31, Amount % Amount % Conforming - fixed $ 3,018,321 64% $ 4,881,222 61% Conforming - ARM 26,694 1 351,408 4 Government - fixed 1,003,598 21 1,156,890 15 Government - ARM 6,951 — 10,906 — Other - residential mortgage loans 648,560 14 1,576,858 20 Consumer loans 1,819 — 1,942 — 4,705,943 100% 7,979,226 100% Fair value adjustment (49,605) 157,591 Total $ 4,656,338 $ 8,136,817 A summary of the changes in the balance of loans held for sale is as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Balance at beginning of period $ 6,558,668 $ 8,787,756 $ 8,136,817 $ 6,955,424 Origination and purchase of loans 15,769,229 34,413,319 37,142,855 75,814,894 Sales (17,876,229) (34,294,254) (40,681,596) (74,213,668) Repurchases 194,650 111,385 333,666 663,700 Principal payments (40,598) (43,206) (100,885) (66,506) Fair value gain (loss) 50,618 145,653 (174,519) (33,191) Balance at end of period $ 4,656,338 $ 9,120,653 $ 4,656,338 $ 9,120,653 Gain on origination and sale of loans, net is comprised of the following components: Three Months Ended Six Months Ended 2022 2021 2022 2021 (Discount) premium from loan sales $ (437,194) $ 407,314 $ (673,291) $ 877,887 Servicing rights 180,455 427,458 450,215 957,002 Unrealized losses from derivative assets and liabilities (190,545) (510,788) (31,803) (182,467) Realized gains from derivative assets and liabilities 553,834 250,912 902,875 350,548 Discount points, rebates and lender paid costs 71,767 (28,603) 131,834 (143,458) Fair value gain (loss) 50,618 145,653 (174,519) (33,191) Provision for loan loss obligation for loans sold (82,373) 533 (95,619) (267) Total gain on origination and sale of loans, net $ 146,562 $ 692,479 $ 509,692 $ 1,826,054 The Company had $23.7 million and $28.8 million of loans held for sale on non-accrual status as of June 30, 2022 and December 31, 2021, respectively. |
SERVICING RIGHTS, AT FAIR VALUE
SERVICING RIGHTS, AT FAIR VALUE | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, December 31, Conventional $ 120,545,854 $ 127,270,097 Government 34,671,158 34,842,868 Total servicing portfolio $ 155,217,012 $ 162,112,965 A summary of the unpaid principal balance underlying servicing rights is as follows: June 30, December 31, Current loans $ 153,367,435 $ 160,302,966 Loans 30 - 89 days delinquent 520,963 504,467 Loans 90 or more days delinquent or in foreclosure 1,328,614 1,305,532 Total servicing portfolio (1) $ 155,217,012 $ 162,112,965 (1) At June 30, 2022 and December 31, 2021 0.4% and 0.6%, respectively, of the servicing portfolio was in forbearance as a result of payment relief efforts afforded to borrowers as a result of the Coronavirus Aid, Relief, and Economic Security Act and other regulatory guidance. A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Balance at beginning of period $ 2,078,187 $ 1,766,088 $ 1,999,402 $ 1,124,302 Additions 180,455 427,458 450,215 957,001 Sales proceeds, net (86,464) (182,113) (399,314) (182,788) Changes in fair value: Due to changes in valuation inputs or assumptions 98,795 (129,267) 297,792 101,757 Due to collection/realization of cash flows (66,380) (105,771) (143,502) (223,877) Balance at end of period $ 2,204,593 $ 1,776,395 $ 2,204,593 $ 1,776,395 The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations: Three Months Ended Six Months Ended 2022 2021 2022 2021 Contractual servicing fees $ 113,824 $ 92,164 $ 222,650 $ 171,734 Late, ancillary and other fees 3,502 2,578 5,735 5,575 Servicing fee income $ 117,326 $ 94,742 $ 228,385 $ 177,309 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 Six Months Ended 2022 2021 2022 2021 Changes in fair value: Due to changes in valuation inputs or assumptions $ 98,795 $ (129,267) $ 297,792 $ 101,757 Due to collection/realization of cash flows (66,380) (105,771) (143,502) (223,877) Realized (losses) gains on sales of servicing rights (2,493) 6,089 7,540 5,992 Net (loss) gain from derivatives hedging servicing rights (63,429) 83,851 (263,720) (72,605) Changes in fair value of servicing rights, net $ (33,507) $ (145,098) $ (101,890) $ (188,733) 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. June 30, December 31, Fair Value of Servicing Rights, net $ 2,204,593 $ 1,999,402 Change in Fair Value from adverse changes: Discount Rate: Increase 1% (79,165) (85,066) Increase 2% (152,847) (163,255) Cost of Servicing: Increase 10% (19,008) (20,843) Increase 20% (38,045) (41,727) Prepayment Speed: Increase 10% (29,614) (76,532) Increase 20% (58,466) (148,556) 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 | 6 Months Ended |
Jun. 30, 2022 | |
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 sale 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 2- Fair Value for further details on derivatives in the 2021 Form 10-K. The following summarizes the Company’s outstanding derivative instruments: Fair Value Notional Balance Sheet Location Asset Liability June 30, 2022: Interest rate lock commitments $ 5,120,259 Derivative asset, at fair value $ 91,886 $ — Interest rate lock commitments 2,569,129 Derivative liabilities, at fair value — 34,281 Forward sale contracts 17,168,753 Derivative asset, at fair value 43,926 — Forward sale contracts 2,335,109 Derivative liabilities, at fair value — 10,694 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 3,500 Derivative liabilities, at fair value — 9,113 MBS put options 2,150,000 Derivative asset, at fair value 17,795 — MBS put options 1,300,000 Derivative liabilities, at fair value — 12,924 Interest rate swap futures — Derivative asset, at fair value — — Interest rate swap futures 3,339 Derivative liabilities, at fair value — 5,746 Total derivative financial instruments $ 153,607 $ 72,758 Fair Value Notional Balance Sheet Location Asset Liability December 31, 2021: Interest rate lock commitments $ 11,530,721 Derivative asset, at fair value $ 184,383 $ — Interest rate lock commitments 1,125,911 Derivative liabilities, at fair value — 3,763 Forward sale contracts 19,482,705 Derivative asset, at fair value 5,358 — Forward sale contracts 13,171,462 Derivative liabilities, at fair value — 2,964 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 16,980 Derivative liabilities, at fair value — 31,070 Interest rate swap futures 2,640 Derivative asset, at fair value 4,924 — Interest rate swap futures — Derivative liabilities, at fair value — — Total derivative financial instruments $ 194,665 $ 37,797 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 or losses on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included: Three Months Ended Six Months Ended Derivative instrument Statements of Operations Location 2022 2021 2022 2021 Interest rate lock commitments, net Gain on origination and sale of loans, net $ 45,605 $ 86,303 $ (123,015) $ (313,964) Forward sale contracts Gain on origination and sale of loans, net 297,939 (317,263) 962,458 507,082 Interest rate swap futures Gain on origination and sale of loans, net (50,848) (22,217) (84,530) (52,208) Put options Gain on origination and sale of loans, net 70,593 (6,699) 116,159 27,171 Forward sale contracts Change in fair value of servicing rights, net (23,399) 33,925 (97,627) (79,004) Interest rate swap futures Change in fair value of servicing rights, net (38,916) 48,194 (165,579) 7,178 Put options Change in fair value of servicing rights, net (1,114) 1,732 (514) (779) Total realized and unrealized gains (losses) on derivative financial instruments $ 299,860 $ (176,025) $ 607,352 $ 95,476 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET A summary of the Company’s activity related to goodwill is as follows. Goodwill Other intangible assets Total Balance, December 31, 2021 $ 40,736 $ 1,581 $ 42,317 Amortization — (205) (205) Impairment loss (40,736) (1,376) (42,112) Balance, June 30, 2022 $ — $ — $ — Goodwill Other intangible assets Total Balance, December 31, 2020 $ 40,736 $ 2,090 $ 42,826 Amortization — (255) (255) Balance June 30, 2021 $ 40,736 $ 1,835 $ 42,571 The Company performs its annual assessment of possible impairment of goodwill and intangible assets as of December 31, or more frequently if events and circumstances indicate that impairment may have occurred. The Company compares the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. During the three months ended June 30, 2022, the Company performed an interim impairment test due to the impact of rising interest rates on the mortgage industry and the Company’s recent stock performance. The evaluation of goodwill included a market based and income based approach. Based upon the results of this evaluation, an impairment charge of $40.7 million was recognized, driven predominantly by a significant decline in our market capitalization. In addition to goodwill, the Company had other intangible assets related to trademarks associated with prior acquisitions. The Company reviews intangible assets for possible impairment whenever events or circumstances indicate that |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2022 | |
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 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 the six months ended June 30, 2022 and year ended December 31, 2021. Consolidated VIEs The Company is a holding company, its sole material asset is its equity interest in LD Holdings and as the sole managing member of LD Holdings, the Company indirectly operates and controls all of LD Holdings’ business and affairs. LD Holdings is considered a VIE and the financial results of LD Holdings and its subsidiaries are consolidated. A portion of net earnings or loss is allocated to noncontrolling interest to reflect the entitlement of the Continuing LLC Members. The Company is involved in several types of securitization and financing transactions that utilize special purpose entities (“SPEs”). The Company’s principal use of SPEs is to obtain liquidity by securitizing certain of its financial and non-financial assets. SPEs involved in the Company’s securitization and other financing transactions are often considered VIEs. The Company consolidates securitization facilities that finance mortgage loans held for sale, and SPEs established as trusts to finance mortgage servicing rights and servicing advance receivables. The Company sells assets to a securitization or trust, which issues beneficial interests which are collateralized by the transferred assets and entitle the investors to specified cash flows generated therefrom. The Company may retain beneficial interests in the assets sold. The Company’s economic exposure to loss from outstanding third-party financing is generally limited to the carrying value of the assets financed. The Company has retained risks in the securitizations including customary representations and warranties. For securitization facilities, 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. The Company’s exposure to these entities is primarily through its role as seller, servicer, and administrator. 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. The Company also holds certain conditional repurchase options specific to these securitizations that allow it to repurchase assets from the securitization entity. The Company sells mortgage loans to investors through private label securitizations which are accounted for either as sales or secured borrowings. The Company may retain economic interests in the securitized and sold assets, which are generally retained in the form of senior or subordinated interests, residual interests, and/or servicing rights. The Company evaluates its interests in each private label securitization for classification as a VIE. The Company accounts for a securitization as a sale when it has relinquished control over the transferred financial assets and does not hold other interests in the VIE that individually, or in the aggregate, would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns. The Company has an option to exercise a cleanup call to purchase the remaining mortgage loans and any trust property when the remaining aggregate principal balance is less than 10% of the initial aggregate principal balance. The table below presents a summary of the carrying value and balance sheet classification of assets and liabilities in the Company’s securitization and SPE VIEs June 30, December 31, Assets Loans held for sale, at fair value $ 1,800,968 $ 2,557,490 Restricted cash 67,998 100,494 Servicing rights, at fair value 484,393 400,678 Prepaid expenses and other assets 37,349 17,756 $ 2,390,708 $ 3,076,418 Liabilities Warehouse and other lines of credit $ 1,800,000 $ 2,600,000 Debt obligations, net: MSR Facilities 114,711 15,000 Servicing advance facilities 32,739 15,070 Term notes 199,415 199,133 $ 2,146,865 $ 2,829,203 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. June 30, 2022 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 105,308 $ — $ 105,308 $ 2,376,297 Investments in joint ventures 18,408 — 18,408 15,061 $ 123,716 $ — $ 123,716 December 31, 2021 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 72,874 $ — $ 72,874 $ 1,424,857 Investments in joint ventures 18,553 — 18,553 20,783 $ 91,427 $ — $ 91,427 Retained interests In 2022 and 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 retained interests represent a variable interest in the securitizations. 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 retained interests. The investors and the securitization trusts have no recourse to the Company’s assets; holders of the securities issued by each trust can look only to the loans owned by the trust for payment. The retained interests held by the Company are subject principally to the credit risk stemming from the underlying transferred loans. The securitization trusts used to effect these transactions are variable interest entities that the Company does not consolidate. The Company remeasures the carrying value of its retained interests at each reporting date to reflect their current fair value which is included in trading securities, at fair value on the consolidated balance sheets, with corresponding gains or losses included in other income on the consolidated income statements. As of June 30, 2022, the remaining principal balance of loans transferred to these securitization trusts was $2.4 billion of which $0.5 million was 90 days or more past due. Investments in joint ventures |
WAREHOUSE AND OTHER LINES OF CR
WAREHOUSE AND OTHER LINES OF CREDIT | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
WAREHOUSE AND OTHER LINES OF CREDIT | WAREHOUSE AND OTHER LINES OF CREDIT At June 30, 2022, the Company was a party to 14 revolving lines of credit with lenders providing $9.9 billion of warehouse and securitization facilities. The facilities are used to fund, and are secured by, residential mortgage loans held for sale. The facilities are repaid using proceeds from the sale of loans. Interest is generally payable monthly in arrears or on the repurchase date of a loan, and outstanding principal is payable upon receipt of loan sale proceeds or on the repurchase date of a loan. Outstanding principal related to a particular loan must also be repaid after the expiration of a contractual period of time or, if applicable, upon the occurrence of certain events of default with respect to the underlying loan. Interest expense is recorded to interest expense on the consolidated statements of operations. The base interest rates on the facilities bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. Some of the facilities carry additional 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. As of June 30, 2022, the interest rate was comprised of the applicable base rate plus a spread ranging from 1.02% to 2.25%. The base interest rate for warehouse facilities is 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. The warehouse lines are scheduled to expire through 2023 under one two Certain warehouse line lenders require the Company to maintain cash accounts with minimum required balances at all times. As of June 30, 2022 and December 31, 2021, there was $7.0 million and $8.0 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. As of June 30, 2022, the Company amended certain warehouse lines related to certain profitability covenants, following which the Company was in compliance with those financial covenants. Securitization Facilities In October 2020, the Company issued notes through a 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 March 2022, the Company exercised its right to optional prepayment in full and terminated the 2020-1 Securitization Facility. 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 March 2022, the Company exercised its right to optional prepayment and paid-off $200.0 million in notes and certificates. At June 30, 2022, $300.0 million was outstanding in the 2020-2 Securitization Facility. 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. In October 2021, the Company issued notes and a class of owner trust certificates through an additional securitization facility (“2021-3 Securitization Facility”) backed by a revolving warehouse line of credit. The 2021-3 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 2021-3 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 2021-3 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 information on warehouse borrowings and the outstanding balance as of June 30, 2022 and December 31, 2021: Outstanding Balance Committed Uncommitted Total Expiration June 30, December 31, Facility 1 (1) $ 400,000 $ 1,100,000 $ 1,500,000 10/29/2022 $ 643,618 $ 851,088 Facility 2 (2) — 600,000 600,000 9/26/2022 160,471 295,743 Facility 3 — 500,000 500,000 4/18/2023 146,580 459,018 Facility 4 — 900,000 900,000 11/14/2022 325,842 266,230 Facility 5 (2) — 200,000 200,000 N/A 852 391 Facility 6 (2) 100,000 1,000,000 1,100,000 10/10/2022 149,623 583,449 Facility 7 (3) 750,000 750,000 1,500,000 5/5/2023 609,506 1,410,367 Facility 8 — 750,000 750,000 N/A 148,592 361,783 Facility 9 (4)(5) — — — 10/25/2022 — 600,000 Facility 10 (4) 300,000 — 300,000 12/17/2023 300,000 500,000 Facility 11 (2)(6) — 500,000 500,000 9/23/2022 76,629 263,516 Facility 12 (4) 500,000 — 500,000 2/2/2024 500,000 500,000 Facility 13 (4) 500,000 — 500,000 4/23/2024 500,000 500,000 Facility 14 — 500,000 500,000 9/22/2022 203,630 365,614 Facility 15 (4) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 3,050,000 $ 6,800,000 $ 9,850,000 $ 4,265,343 $ 7,457,199 (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 addition to the warehouse line, the lender provides a separate gestation facility to finance recently sold MBS up to the MBS settlement date. (3) In addition to the outstanding balance secured by mortgage loans, the Company has $114.7 million outstanding to finance servicing rights included within debt obligations in the consolidated balance sheets. (4) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. (5) This facility was prepaid and terminated in March 2022. (6) This facility was prepaid and terminated in July 2022. The following table presents certain information on warehouse borrowings: Three Months Ended Six Months Ended 2022 2021 2022 2021 Maximum outstanding balance during the period $ 6,407,547 $ 9,180,276 $ 7,672,559 $ 9,180,276 Average balance outstanding during the period 4,928,772 8,164,737 5,605,996 7,838,140 Collateral pledged (loans held for sale) 4,408,362 8,919,427 4,408,362 8,919,427 Weighted average interest rate during the period 2.60 % 2.21 % 2.27 % 2.27 % The following table presents the outstanding debt as of June 30, 2022 and December 31, 2021: June 30, December 31, Secured debt obligations, net: Secured credit facilities MSR facilities $ 1,105,630 $ 262,250 Securities financing facilities 98,900 66,439 Servicing advance facilities 32,739 15,070 Total secured credit facilities 1,237,269 343,759 Term Notes 199,415 199,133 Total secured debt obligations, net 1,436,684 542,892 Unsecured debt obligations, net: Senior Notes 990,456 1,085,316 Total debt obligations, net $ 2,427,140 $ 1,628,208 Certain of the Company’s secured debt obligations require us to satisfy financial covenants including minimum levels of profitability, tangible net worth, liquidity, and maximum levels of consolidated leverage. The Company obtained amendments or received waivers relating to certain profitability covenants. As a result, the Company was in compliance with all such financial covenants as of June 30, 2022. Secured Credit Facilities Secured credit facilities include revolving facilities collateralized by MSRs, trading securities, and servicing advances. MSR Facilities In October 2014, the Company entered into a $25.0 million credit facility to finance servicing rights and for other working capital needs and general corporate purposes. The Company has entered into subsequent amendments to increase and decrease the size of the facility and extend the maturity date. The facility is secured by Freddie Mac mortgage servicing rights with a fair value of $365.7 million as of June 30, 2022 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 June 30, 2022, there was $268.0 million outstanding on this facility with a maturity of June 2023. At June 30, 2022, capacity under the facility was $268.0 million. Advances for servicing rights are determined using a borrowing base formula calculated against the fair market value of the pledged servicing rights. In December 2021, the Company entered into a credit facility agreement which provides $300.0 million in borrowing capacity, with an option to increase up to $500.0 million upon mutual consent, available to the Company. The facility is secured by Freddie Mac mortgage servicing rights with a fair value of $600.9 million as of June 30, 2022, and bears interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum. At June 30, 2022, there was $300.0 million outstanding on this facility and $0.4 million in unamortized deferred financing costs. In January 2022, the Company entered into a credit facility agreement which provides $500.0 million in borrowing capacity. The facility is secured by Fannie Mae mortgage servicing rights with a fair value of $711.2 million as of June 30, 2022 and bears interest at SOFR, or other alternative base rate, plus a margin per annum. At June 30, 2022, there was $425.0 million outstanding on this facility and $1.7 million in unamortized deferred financing costs. In August 2017, the Company entered into the GMSR Trust to finance Ginnie Mae mortgage servicing rights owned by the Company pursuant to the terms of a base indenture. The Company pledged participation certificates representing beneficial interests in Ginnie Mae mortgage servicing rights to the GMSR Trust. The Company is party to an acknowledgment agreement with Ginnie Mae whereby it 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. In August 2017, the Company, issued a variable funding note in the initial amount of $65.0 million with a maximum amount of $150.0 million. The variable funding note 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 variable funding note and extend the maturity date. In October 2021, the maturity date was extended to November 2022. As of June 30, 2022, there was $114.7 million in variable funding notes outstanding. Securities Financing Facilities The Company has entered into master repurchase agreements to finance retained interest securities related to its securitizations. The securities financing facilities have an advance rate between 60% and 90% based on classes of the securities and accrue interest at a rate of 90-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The securities financing facilities are secured by the trading securities which represent our retained interests in the credit risk of the assets collateralizing certain securitization transactions. As of June 30, 2022, the trading securities had a fair value of $105.3 million on the consolidated balance sheets and there was $98.9 million in securities financing facilities outstanding. Servicing Advance Facilities 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 can issue 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 servicing advance receivables made pursuant to Fannie Mae and Freddie Mac requirements and mature in September 2022 (unless earlier redeemed in accordance with their terms). At June 30, 2022, there was $18.9 million in 2020-VF1 Notes outstanding. In November 2021, the Company, through the GMSR Trust issued two new series of variable funding notes for the financing of principal and interest advance receivables and servicing advance receivables with respect to residential mortgage loans serviced by it on behalf of Ginnie Mae. Pursuant to an indenture, the Company can issue up to $150.00 million in variable funding notes secured by principal and interest advance reimbursement or servicing advance reimbursement amounts. The variable funding notes bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum. As of June 30, 2022, there was $14.3 million outstanding balance on the variable funding notes and $0.5 million in unamortized deferred financing costs. Term Notes In October 2018, the Company issued the Series 2018-GT1 Term Notes (“Term Notes”) under the GMSR Trust. The Term Notes are secured by certain participation certificates relating to Ginnie Mae mortgage servicing rights that also secure the variable funding notes described above with a fair value of $484.4 million as of June 30, 2022. 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 June 30, 2022, there was $200.0 million in Term Notes outstanding and $0.6 million in unamortized deferred financing costs. 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, the Company 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. The Company may also redeem the 2025 Senior Notes, 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, the Company 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 June 30, 2022, there was $500.0 million in 2025 Senior Notes outstanding and $5.9 million in unamortized 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, the Company 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. The Company may also redeem the 2028 Senior Notes, 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, the Company 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. During the first quarter of 2022, the Company repurchased $97.5 million of 2028 Senior Notes at an average purchase price of 87.9% of par which resulted in a $10.5 million gain on extinguishment of debt recorded in other interest expense on the consolidated statement of operations. At June 30, 2022, there was $502.5 million in 2028 Senior Notes outstanding and $6.1 million in unamortized deferred financing costs. Interest Expense |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | WAREHOUSE AND OTHER LINES OF CREDIT At June 30, 2022, the Company was a party to 14 revolving lines of credit with lenders providing $9.9 billion of warehouse and securitization facilities. The facilities are used to fund, and are secured by, residential mortgage loans held for sale. The facilities are repaid using proceeds from the sale of loans. Interest is generally payable monthly in arrears or on the repurchase date of a loan, and outstanding principal is payable upon receipt of loan sale proceeds or on the repurchase date of a loan. Outstanding principal related to a particular loan must also be repaid after the expiration of a contractual period of time or, if applicable, upon the occurrence of certain events of default with respect to the underlying loan. Interest expense is recorded to interest expense on the consolidated statements of operations. The base interest rates on the facilities bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin. Some of the facilities carry additional 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. As of June 30, 2022, the interest rate was comprised of the applicable base rate plus a spread ranging from 1.02% to 2.25%. The base interest rate for warehouse facilities is 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. The warehouse lines are scheduled to expire through 2023 under one two Certain warehouse line lenders require the Company to maintain cash accounts with minimum required balances at all times. As of June 30, 2022 and December 31, 2021, there was $7.0 million and $8.0 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. As of June 30, 2022, the Company amended certain warehouse lines related to certain profitability covenants, following which the Company was in compliance with those financial covenants. Securitization Facilities In October 2020, the Company issued notes through a 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 March 2022, the Company exercised its right to optional prepayment in full and terminated the 2020-1 Securitization Facility. 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 March 2022, the Company exercised its right to optional prepayment and paid-off $200.0 million in notes and certificates. At June 30, 2022, $300.0 million was outstanding in the 2020-2 Securitization Facility. 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. In October 2021, the Company issued notes and a class of owner trust certificates through an additional securitization facility (“2021-3 Securitization Facility”) backed by a revolving warehouse line of credit. The 2021-3 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 2021-3 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 2021-3 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 information on warehouse borrowings and the outstanding balance as of June 30, 2022 and December 31, 2021: Outstanding Balance Committed Uncommitted Total Expiration June 30, December 31, Facility 1 (1) $ 400,000 $ 1,100,000 $ 1,500,000 10/29/2022 $ 643,618 $ 851,088 Facility 2 (2) — 600,000 600,000 9/26/2022 160,471 295,743 Facility 3 — 500,000 500,000 4/18/2023 146,580 459,018 Facility 4 — 900,000 900,000 11/14/2022 325,842 266,230 Facility 5 (2) — 200,000 200,000 N/A 852 391 Facility 6 (2) 100,000 1,000,000 1,100,000 10/10/2022 149,623 583,449 Facility 7 (3) 750,000 750,000 1,500,000 5/5/2023 609,506 1,410,367 Facility 8 — 750,000 750,000 N/A 148,592 361,783 Facility 9 (4)(5) — — — 10/25/2022 — 600,000 Facility 10 (4) 300,000 — 300,000 12/17/2023 300,000 500,000 Facility 11 (2)(6) — 500,000 500,000 9/23/2022 76,629 263,516 Facility 12 (4) 500,000 — 500,000 2/2/2024 500,000 500,000 Facility 13 (4) 500,000 — 500,000 4/23/2024 500,000 500,000 Facility 14 — 500,000 500,000 9/22/2022 203,630 365,614 Facility 15 (4) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 3,050,000 $ 6,800,000 $ 9,850,000 $ 4,265,343 $ 7,457,199 (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 addition to the warehouse line, the lender provides a separate gestation facility to finance recently sold MBS up to the MBS settlement date. (3) In addition to the outstanding balance secured by mortgage loans, the Company has $114.7 million outstanding to finance servicing rights included within debt obligations in the consolidated balance sheets. (4) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. (5) This facility was prepaid and terminated in March 2022. (6) This facility was prepaid and terminated in July 2022. The following table presents certain information on warehouse borrowings: Three Months Ended Six Months Ended 2022 2021 2022 2021 Maximum outstanding balance during the period $ 6,407,547 $ 9,180,276 $ 7,672,559 $ 9,180,276 Average balance outstanding during the period 4,928,772 8,164,737 5,605,996 7,838,140 Collateral pledged (loans held for sale) 4,408,362 8,919,427 4,408,362 8,919,427 Weighted average interest rate during the period 2.60 % 2.21 % 2.27 % 2.27 % The following table presents the outstanding debt as of June 30, 2022 and December 31, 2021: June 30, December 31, Secured debt obligations, net: Secured credit facilities MSR facilities $ 1,105,630 $ 262,250 Securities financing facilities 98,900 66,439 Servicing advance facilities 32,739 15,070 Total secured credit facilities 1,237,269 343,759 Term Notes 199,415 199,133 Total secured debt obligations, net 1,436,684 542,892 Unsecured debt obligations, net: Senior Notes 990,456 1,085,316 Total debt obligations, net $ 2,427,140 $ 1,628,208 Certain of the Company’s secured debt obligations require us to satisfy financial covenants including minimum levels of profitability, tangible net worth, liquidity, and maximum levels of consolidated leverage. The Company obtained amendments or received waivers relating to certain profitability covenants. As a result, the Company was in compliance with all such financial covenants as of June 30, 2022. Secured Credit Facilities Secured credit facilities include revolving facilities collateralized by MSRs, trading securities, and servicing advances. MSR Facilities In October 2014, the Company entered into a $25.0 million credit facility to finance servicing rights and for other working capital needs and general corporate purposes. The Company has entered into subsequent amendments to increase and decrease the size of the facility and extend the maturity date. The facility is secured by Freddie Mac mortgage servicing rights with a fair value of $365.7 million as of June 30, 2022 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 June 30, 2022, there was $268.0 million outstanding on this facility with a maturity of June 2023. At June 30, 2022, capacity under the facility was $268.0 million. Advances for servicing rights are determined using a borrowing base formula calculated against the fair market value of the pledged servicing rights. In December 2021, the Company entered into a credit facility agreement which provides $300.0 million in borrowing capacity, with an option to increase up to $500.0 million upon mutual consent, available to the Company. The facility is secured by Freddie Mac mortgage servicing rights with a fair value of $600.9 million as of June 30, 2022, and bears interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum. At June 30, 2022, there was $300.0 million outstanding on this facility and $0.4 million in unamortized deferred financing costs. In January 2022, the Company entered into a credit facility agreement which provides $500.0 million in borrowing capacity. The facility is secured by Fannie Mae mortgage servicing rights with a fair value of $711.2 million as of June 30, 2022 and bears interest at SOFR, or other alternative base rate, plus a margin per annum. At June 30, 2022, there was $425.0 million outstanding on this facility and $1.7 million in unamortized deferred financing costs. In August 2017, the Company entered into the GMSR Trust to finance Ginnie Mae mortgage servicing rights owned by the Company pursuant to the terms of a base indenture. The Company pledged participation certificates representing beneficial interests in Ginnie Mae mortgage servicing rights to the GMSR Trust. The Company is party to an acknowledgment agreement with Ginnie Mae whereby it 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. In August 2017, the Company, issued a variable funding note in the initial amount of $65.0 million with a maximum amount of $150.0 million. The variable funding note 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 variable funding note and extend the maturity date. In October 2021, the maturity date was extended to November 2022. As of June 30, 2022, there was $114.7 million in variable funding notes outstanding. Securities Financing Facilities The Company has entered into master repurchase agreements to finance retained interest securities related to its securitizations. The securities financing facilities have an advance rate between 60% and 90% based on classes of the securities and accrue interest at a rate of 90-day LIBOR, or other alternative base rate such as SOFR, plus a margin. The securities financing facilities are secured by the trading securities which represent our retained interests in the credit risk of the assets collateralizing certain securitization transactions. As of June 30, 2022, the trading securities had a fair value of $105.3 million on the consolidated balance sheets and there was $98.9 million in securities financing facilities outstanding. Servicing Advance Facilities 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 can issue 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 servicing advance receivables made pursuant to Fannie Mae and Freddie Mac requirements and mature in September 2022 (unless earlier redeemed in accordance with their terms). At June 30, 2022, there was $18.9 million in 2020-VF1 Notes outstanding. In November 2021, the Company, through the GMSR Trust issued two new series of variable funding notes for the financing of principal and interest advance receivables and servicing advance receivables with respect to residential mortgage loans serviced by it on behalf of Ginnie Mae. Pursuant to an indenture, the Company can issue up to $150.00 million in variable funding notes secured by principal and interest advance reimbursement or servicing advance reimbursement amounts. The variable funding notes bear interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum. As of June 30, 2022, there was $14.3 million outstanding balance on the variable funding notes and $0.5 million in unamortized deferred financing costs. Term Notes In October 2018, the Company issued the Series 2018-GT1 Term Notes (“Term Notes”) under the GMSR Trust. The Term Notes are secured by certain participation certificates relating to Ginnie Mae mortgage servicing rights that also secure the variable funding notes described above with a fair value of $484.4 million as of June 30, 2022. 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 June 30, 2022, there was $200.0 million in Term Notes outstanding and $0.6 million in unamortized deferred financing costs. 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, the Company 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. The Company may also redeem the 2025 Senior Notes, 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, the Company 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 June 30, 2022, there was $500.0 million in 2025 Senior Notes outstanding and $5.9 million in unamortized 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, the Company 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. The Company may also redeem the 2028 Senior Notes, 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, the Company 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. During the first quarter of 2022, the Company repurchased $97.5 million of 2028 Senior Notes at an average purchase price of 87.9% of par which resulted in a $10.5 million gain on extinguishment of debt recorded in other interest expense on the consolidated statement of operations. At June 30, 2022, there was $502.5 million in 2028 Senior Notes outstanding and $6.1 million in unamortized deferred financing costs. Interest Expense |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to its organizational structure. 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 June 30, 2022 and December 31, 2021, the Company had a deferred tax asset before any valuation allowance of $0.1 million and $0.4 million, respectively, and a deferred tax liability of $155.1 million and $193.4 million, respectively. 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 the future. The deferred tax liability as of June 30, 2022 and December 31, 2021 relate to temporary differences in the book basis as compared to the tax basis of loanDepot, Inc.’s investment in LD Holdings, net of tax benefits from future deductions for payments made under a Tax Receivable Agreement (“TRA”) as a result of the IPO. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and the Company’s effective tax rate in the future. Deferred income taxes are measured using the applicable tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on the tax rates that have been enacted at the reporting date. The Company measured its deferred tax assets and liabilities at June 30, 2022 and December 31, 2021 using the combined federal and state rate (less federal benefit) of 26%. The Company establishes a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2022, the Company did not have a valuation allowance on any deferred tax assets as the Company believes it is more-likely-than-not that the Company will realize the benefits of the deferred tax assets. The Company recognized a TRA liability of $48.8 million and $32.9 million as of June 30, 2022 and December 31, 2021, respectively, which represents the Company’s estimate of the aggregate amount that it will pay under the TRA, refer to Note 15- Commitments and Contingencies, for further information on the TRA liability. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
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 has entered into forward commitments with certain joint ventures to fund loans at specified interest rates for certain loan product types over a set period of time. The Company receives the commitment fee at the time of the commitment and earns the fee at the time of loan funding, 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 Six Months Ended 2022 2021 2022 2021 Loan processing and administrative services fee income $ 4,548 $ 3,754 $ 7,878 $ 7,107 Commitment fee income 1,255 — 1,255 — Fee income from joint ventures $ 5,803 $ 3,754 $ 9,133 $ 7,107 Loan origination broker fees expense $ 29,797 $ 22,258 $ 49,926 $ 40,708 June 30, December 31, Amounts (payable) receivable from joint ventures $ (7,922) $ 1,855 The Company paid management fees to a shareholder of the Company of $0.2 million during the six months ended June 30, 2021. The Company employed certain individuals who provided services to a shareholder whose salaries totaled $0.1 million during the three and six months ended June 30, 2022 and $0.1 million and $0.2 million during three and six months ended June 30, 2021, respectively. The Company paid consulting fees to a shareholder of the Company of $41,000 during the three months ended June 30, 2021. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
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 $0.7 billion and $1.1 billion as of June 30, 2022 and December 31, 2021, respectively, represented the economic interest in LD Holdings held by the Continuing LLC Members. As Continuing LLC Members convert shares, noncontrolling interest is adjusted to proportionately reduce the economic interest in LD Holdings with an offset to additional paid-in-capital on the consolidated statements of equity. The following table summarizes the ownership of LD Holdings as of June 30, 2022. Holding Member Interests: Holdco Units Ownership Percentage loanDepot, Inc. 160,619,719 51.35% Continuing LLC Members 152,191,394 48.65% Total 312,811,113 100.00% |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share of Class A common stock and Class D common stock is computed by dividing net income (loss) 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 (loss) per share of Class A common stock and Class D common stock is computed by dividing net income (loss) 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. The basic and diluted earnings per share period for the six months ended June 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 June 30, 2022 and 2021. The following table sets forth the calculation of basic and diluted earnings (loss) per share for Class A common stock and Class D common stock: Three Months Ended Six Months Ended June 30, 2022 June 30, 2022 Class A Class D Total Class A Class D Total Net loss attributable to loanDepot, Inc. $ (37,266) $ (63,662) $ (100,928) $ (45,531) $ (90,137) $ (135,669) Weighted average shares - basic 56,795,709 97,026,671 153,822,380 49,138,217 97,276,918 146,415,135 Loss per share - basic $ (0.66) $ (0.66) $ (0.66) $ (0.93) $ (0.93) $ (0.93) Diluted loss per share: Net loss allocated to common stockholders - diluted $ (37,266) $ (63,662) $ (100,928) $ (45,531) $ (90,137) $ (135,668) Weighted average shares - diluted 56,795,709 97,026,671 153,822,380 49,138,217 97,276,918 146,415,135 Loss per share - diluted $ (0.66) $ (0.66) $ (0.66) $ (0.93) $ (0.93) $ (0.93) Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Class A Class D Total Class A Class D Total Net income attributable to loanDepot, Inc. $ 678 $ 7,883 $ 8,561 $ 3,633 $ 49,803 $ 53,436 Weighted average shares - basic 10,038,195 116,688,681 126,726,876 8,592,536 117,800,413 126,392,949 Earnings per share - basic $ 0.07 $ 0.07 $ 0.07 $ 0.42 $ 0.42 $ 0.42 Diluted income per share: Net income allocated to common stockholders - diluted $ 678 $ 7,883 $ 8,561 $ 3,633 $ 49,803 $ 53,436 Weighted average shares - diluted 10,038,195 116,688,681 126,726,876 8,592,536 117,800,413 126,392,949 Earnings per share - diluted $ 0.07 $ 0.07 $ 0.07 $ 0.42 $ 0.42 $ 0.42 For the three and six months ended June 30, 2022, 165,281,304 and 173,245,208 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 loss per share. For the three and six months ended June 30, 2022, 14,221,221 and 11,914,870 of Class A RSUs and nonqualified stock options were determined to be anti-dilutive, and thus excluded from the computation of diluted loss per share. For the three months ended June 30, 2021, 196,741,703 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 period from February 11, 2021 to June 30, 2021, 197,366,213 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 | 6 Months Ended |
Jun. 30, 2022 | |
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 $14.7 million and $21.1 million at June 30, 2022 and December 31, 2021, 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. Employment Litigation 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 was filed with the Superior Court of the State of California, County of Orange on September 21, 2021 and an amended complaint was filed on December 21, 2021. In response, on February 2, 2022 the Company filed a demurrer to the complaint with the Superior Court of the State of California, County of Orange, for failing to state facts sufficient to constitute a cause of action while still vigorously denying the claims within the complaint. On March 24, 2022, the plaintiff filed her opposition to loanDepot’s demurrer. On March 29, 2022, the Company filed its reply to Plaintiff’s opposition. A hearing was held on the Company’s demurrer on May 12, 2022, at the Superior Court of the State of California, County of Orange. The court sustained the Company’s demurrer in full. On June 30, 2022, the Company filed its answer and affirmative defenses to the amended complaint. The plaintiff seeks damages in excess of $75 million. The Company believes this lawsuit is without merit and intends to vigorously defend against it. 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. 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 June 30, 2022, 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 June 30, 2022 and December 31, 2021 approximated $7.7 billion and $12.7 billion, respectively. These loan commitments are treated as derivatives and are carried at fair value, refer to Note 6- Derivative Financial Instruments and Hedging Activities for further information on derivatives. Loan Loss Obligation for Sold Loans 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 establishes a loan repurchase reserve for losses associated with repurchase loan obligations if the Company breached a representation or warranty given to the loan purchaser. Additionally, the Company’s loan loss obligation for sold loans includes an estimate for losses associated with early payoffs and early payment defaults. 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 six months ended June 30, 2022 and 2021. The activity related to the loan loss obligation for sold loans is as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Balance at beginning of period $ 41,159 $ 30,052 $ 29,877 $ 33,591 Provision for loan loss obligations 82,373 (533) 95,619 267 Charge-offs (37,659) (2,893) (39,623) (7,232) Balance at end of period $ 85,873 $ 26,626 $ 85,873 $ 26,626 Obligation for Sold MSRs The Company recognizes sales of mortgage servicing rights as sales if title passes, if substantially all risks and rewards of ownership have irrevocably passed to the purchaser, and any protection provisions retained by the Company are minor and can be reasonably estimated. If a sale is recognized and only minor protection provisions exist, a liability for the estimated obligation associated with those provisions is recorded in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet. The Company establishes a reserve related to the reimbursement of the purchase price for any loans that are prepaid in full within 90 days of the MSR sale transaction. The obligation for sold MSRs was $9.8 million and $0.4 million as of June 30, 2022 and December 31, 2021, respectively TRA Liability |
REGULATORY CAPITAL AND LIQUIDIT
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
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 $120.4 million as of June 30, 2022. The Company was in compliance with the net worth, liquidity and other financial requirements of its selling and servicing requirements as of June 30, 2022. |
DESCRIPTION OF BUSINESS, PRES_2
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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 U.S. 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. Prior to the IPO, the Company completed a reorganization where LLC units in LD Holdings held by certain members (“Continuing LLC Members) were exchanged on a one-for-one basis for Class A holding units (“Holdco Units”) and Class C common stock. 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. As a result of the IPO and reorganization, loanDepot, Inc. became a holding company, its sole material asset is its equity interest in LD Holdings and as the sole managing member of LD Holdings, loanDepot, Inc. indirectly operates and controls all of LD Holdings’ business and affairs. The IPO and reorganization were considered transactions between entities under common control. 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 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. To conform to the current period presentation, servicing expense on the consolidated statements of operations includes subservicing expense and in-house servicing expense. 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 U.S. 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. Prior to the IPO, the Company completed a reorganization where LLC units in LD Holdings held by certain members (“Continuing LLC Members) were exchanged on a one-for-one basis for Class A holding units (“Holdco Units”) and Class C common stock. 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. As a result of the IPO and reorganization, loanDepot, Inc. became a holding company, its sole material asset is its equity interest in LD Holdings and as the sole managing member of LD Holdings, loanDepot, Inc. indirectly operates and controls all of LD Holdings’ business and affairs. The IPO and reorganization were considered transactions between entities under common control. 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 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. To conform to the current period presentation, servicing expense on the consolidated statements of operations includes subservicing expense and in-house servicing expense. 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, trading securities, awards granted under the incentive equity plan, determining the loan loss obligation on sold loans and MSRs, and goodwill impairment. Actual results could differ from those estimates. |
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 23% of total loan originations for the six months ended June 30, 2022. The Company sells mortgage loans to various third-party investors. Three investors accounted for 32%, 27%, and 19% of the Company’s loan sales for the six months ended June 30, 2022. No other investors accounted for more than 5% of the loan sales for the six months ended June 30, 2022. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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. June 30, 2022 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 954,930 $ 954,930 $ — $ — Restricted cash 194,645 194,645 — — Loans held for sale, at fair value 4,656,338 — 4,656,338 — Derivative assets, at fair value 153,607 — 61,721 91,886 Servicing rights, at fair value 2,213,700 — — 2,213,700 Trading securities, at fair value 105,308 — 105,308 — Loans eligible for repurchase 506,454 — 506,454 — Liabilities Warehouse and other lines of credit $ 4,265,343 $ — $ 4,265,343 $ — Derivative liabilities, at fair value 72,758 14,859 23,618 34,281 Servicing rights, at fair value 9,107 — — 9,107 Debt obligations: Secured credit facilities 1,237,269 — 1,239,841 — Term Notes 199,415 — 200,000 — Senior Notes 990,456 — 657,453 — Liability for loans eligible for repurchase 506,454 — 506,454 — December 31, 2021 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 419,571 $ 419,571 $ — $ — Restricted cash 201,025 201,025 — — Loans held for sale, at fair value 8,136,817 — 8,136,817 — Derivative assets, at fair value 194,665 4,924 5,358 184,383 Servicing rights, at fair value 2,006,712 — — 2,006,712 Trading securities, at fair value 72,874 — 72,874 — Loans eligible for repurchase 363,373 — 363,373 — Liabilities Warehouse and other lines of credit $ 7,457,199 $ — $ 7,457,199 $ — Derivative liabilities, at fair value 37,797 31,070 2,964 3,763 Servicing rights, at fair value 7,310 — — 7,310 Debt obligations: Secured credit facilities 343,759 — 345,596 — Term Notes 199,133 — 200,000 — Senior Notes 1,085,316 — 1,057,977 — Liability for loans eligible for repurchase 363,373 — 363,373 — 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. June 30, 2022 Recurring Fair Value Measurements of Assets and 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 $ — $ 4,656,338 $ — $ 4,656,338 Trading securities — 105,308 — 105,308 Derivative assets: Interest rate lock commitments — — 91,886 91,886 Forward sale contracts — 43,926 — 43,926 MBS put options — 17,795 — 17,795 Servicing rights — — 2,213,700 2,213,700 Total assets at fair value $ — $ 4,823,367 $ 2,305,586 $ 7,128,953 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 34,281 $ 34,281 Interest rate swap futures 5,746 — — 5,746 Forward sale contracts — 10,694 — 10,694 Put options on treasuries 9,113 — — 9,113 MBS put options — 12,924 — 12,924 Servicing rights — — 9,107 9,107 Total liabilities at fair value $ 14,859 $ 23,618 $ 43,388 $ 81,865 December 31, 2021 Recurring Fair Value Measurements of Assets and 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 $ — $ 8,136,817 $ — $ 8,136,817 Trading securities — 72,874 — 72,874 Derivative assets: Interest rate lock commitments — — 184,383 184,383 Forward sale contracts — 5,358 — 5,358 Interest rate swap futures 4,924 — — 4,924 Servicing rights — — 2,006,712 2,006,712 Total assets at fair value $ 4,924 $ 8,215,049 $ 2,191,095 $ 10,411,068 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 3,763 $ 3,763 Forward sale contracts — 2,964 — 2,964 Put options on treasuries 31,070 — — 31,070 Servicing rights — — 7,310 7,310 Total liabilities at fair value $ 31,070 $ 2,964 $ 11,073 $ 45,107 |
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 June 30, 2022 Six Months Ended June 30, 2022 IRLCs, net Servicing IRLCs, net Servicing Balance at beginning of period $ 12,000 $ 2,078,187 $ 180,620 $ 1,999,402 Total net gains or losses included in earnings (realized and unrealized) 114,197 212,777 257,154 624,546 Sales and settlements Sales — (86,371) — (419,355) Settlements (1) (38,536) — (271,458) — Transfers of IRLCs to closed loans (30,056) — (108,711) — Balance at end of period $ 57,605 $ 2,204,593 $ 57,605 $ 2,204,593 (1) Funded amount for IRLCs. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 IRLCs, net Servicing IRLCs, net Servicing Balance at beginning of period $ 246,778 $ 1,766,088 $ 647,045 $ 1,124,302 Total net gains or losses included in earnings (realized and unrealized) 720,422 203,937 1,108,970 846,359 Sales and settlements Sales — (193,630) — (194,266) Settlements (1) (432,748) — (1,026,450) — Transfers of IRLCs to closed loans (201,371) — (396,484) — Balance at end of period $ 333,081 $ 1,776,395 $ 333,081 $ 1,776,395 (1) Funded amount for IRLCs. The following presents the gains and losses included in earnings 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 June 30, 2022 Six Months Ended June 30, 2022 IRLCs, net (1) Servicing Rights, net (2) IRLCs, net (1) Servicing Rights, net (3) Total net gains (losses) included in earnings $ 45,605 $ 212,777 $ (123,015) $ 624,546 Change in unrealized gains relating to assets and liabilities still held at period end $ 57,605 $ 215,835 $ 57,605 $ 615,444 (1) Gains (losses) included in gain on origination and sale of loans, net. (2) Includes $180.5 million in gains included in gain on origination and sale of loans, net and $32.3 million of gains included in change in fair value of servicing rights, net, for the three months ended June 30, 2022. (3) Includes $450.2 million in gains included in gain on origination and sale of loans, net and $174.3 million of gains included in change in fair value of servicing rights, net, for the six months ended June 30, 2022. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 IRLCs, net (1) Servicing Rights, net (2) Interest Rate Lock Commitments (1) Servicing Rights, net (3) Total net gains (losses) included in earnings $ 86,303 $ 203,937 $ (313,964) $ 846,359 Change in unrealized gains relating to assets and liabilities still held at period end $ 333,081 $ 296,555 $ 333,081 $ 1,038,347 (1) Gains (losses) included in gain on origination and sale of loans, net. (2) Includes $427.5 million in gains included in gain on origination and sale of loans, net and $223.5 million in losses included in change in fair value of servicing rights, net, for the three months ended June 30, 2021. (3) Includes $957.0 million in gains included in gain on origination and sale of loans, net and $110.6 million of losses included in change in fair value of servicing rights, net, for the six months ended June 30, 2021. |
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 June 30, 2022 Six Months Ended June 30, 2022 IRLCs, net Servicing IRLCs, net Servicing Balance at beginning of period $ 12,000 $ 2,078,187 $ 180,620 $ 1,999,402 Total net gains or losses included in earnings (realized and unrealized) 114,197 212,777 257,154 624,546 Sales and settlements Sales — (86,371) — (419,355) Settlements (1) (38,536) — (271,458) — Transfers of IRLCs to closed loans (30,056) — (108,711) — Balance at end of period $ 57,605 $ 2,204,593 $ 57,605 $ 2,204,593 (1) Funded amount for IRLCs. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 IRLCs, net Servicing IRLCs, net Servicing Balance at beginning of period $ 246,778 $ 1,766,088 $ 647,045 $ 1,124,302 Total net gains or losses included in earnings (realized and unrealized) 720,422 203,937 1,108,970 846,359 Sales and settlements Sales — (193,630) — (194,266) Settlements (1) (432,748) — (1,026,450) — Transfers of IRLCs to closed loans (201,371) — (396,484) — Balance at end of period $ 333,081 $ 1,776,395 $ 333,081 $ 1,776,395 (1) Funded amount for IRLCs. The following presents the gains and losses included in earnings 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 June 30, 2022 Six Months Ended June 30, 2022 IRLCs, net (1) Servicing Rights, net (2) IRLCs, net (1) Servicing Rights, net (3) Total net gains (losses) included in earnings $ 45,605 $ 212,777 $ (123,015) $ 624,546 Change in unrealized gains relating to assets and liabilities still held at period end $ 57,605 $ 215,835 $ 57,605 $ 615,444 (1) Gains (losses) included in gain on origination and sale of loans, net. (2) Includes $180.5 million in gains included in gain on origination and sale of loans, net and $32.3 million of gains included in change in fair value of servicing rights, net, for the three months ended June 30, 2022. (3) Includes $450.2 million in gains included in gain on origination and sale of loans, net and $174.3 million of gains included in change in fair value of servicing rights, net, for the six months ended June 30, 2022. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 IRLCs, net (1) Servicing Rights, net (2) Interest Rate Lock Commitments (1) Servicing Rights, net (3) Total net gains (losses) included in earnings $ 86,303 $ 203,937 $ (313,964) $ 846,359 Change in unrealized gains relating to assets and liabilities still held at period end $ 333,081 $ 296,555 $ 333,081 $ 1,038,347 (1) Gains (losses) included in gain on origination and sale of loans, net. (2) Includes $427.5 million in gains included in gain on origination and sale of loans, net and $223.5 million in losses included in change in fair value of servicing rights, net, for the three months ended June 30, 2021. (3) Includes $957.0 million in gains included in gain on origination and sale of loans, net and $110.6 million of losses included in change in fair value of servicing rights, net, for the six months ended June 30, 2021. |
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: June 30, 2022 December 31, 2021 Unobservable Input Range of inputs Weighted Average (2) Range of inputs Weighted Average (2) IRLCs: Pull-through rate 1.0% - 99.9% 80.2% 0.3% - 99.3% 74.2% Servicing rights Discount rate (1) 4.6% - 10.5% 6.2% 4.5% - 9.0% 5.8% Prepayment rate (1) 5.4% - 14.9% 7.2% 8.4% - 18.7% 10.2% Cost to service (per loan) $63 - $136 $85 $70 - $114 $82 (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. (2) Weighted average inputs are based on the committed amounts for IRLCs and the UPB of the underlying loans for servicing rights. |
BALANCE SHEET NETTING (Tables)
BALANCE SHEET NETTING (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 and other lines of credit and secured debt obligations were secured by financial instruments with fair value that exceeded the liability amount recorded on the consolidated balance sheets as of June 30, 2022 and December 31, 2021, respectively. June 30, 2022 Gross amounts recognized Gross amounts offset in consolidated balance sheet Net amounts presented in consolidated balance sheet Gross amounts not offset in consolidated balance sheet Net amount Financial instruments Cash collateral Assets: Forward sale contracts $ 100,202 $ (56,276) $ 43,926 $ — $ (40,606) $ 3,320 MBS put options 17,795 — 17,795 — — 17,795 Total Assets $ 117,997 $ (56,276) $ 61,721 $ — $ (40,606) $ 21,115 Liabilities: Forward sale contracts $ 66,970 $ (56,276) $ 10,694 $ — $ (1,947) $ 8,747 Put options on treasuries 9,113 — 9,113 — — 9,113 MBS put options 12,924 — 12,924 — — 12,924 Interest rate swap futures 5,746 — 5,746 — — 5,746 Warehouse and other lines of credit 4,265,343 — 4,265,343 (4,265,343) — — Secured debt obligations (1) 1,439,841 — 1,439,841 (1,439,841) — — Total Liabilities $ 5,799,937 $ (56,276) $ 5,743,661 $ (5,705,184) $ (1,947) $ 36,530 (1) Secured debt obligations as of June 30, 2022 included secured credit facilities and Term Notes. December 31, 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 sale contracts $ 29,497 $ (24,139) $ 5,358 $ — $ (1,447) $ 3,911 Interest rate swap futures 4,924 — 4,924 — — 4,924 Total Assets $ 34,421 $ (24,139) $ 10,282 $ — $ (1,447) $ 8,835 Liabilities: Forward sale contracts $ 27,103 $ (24,139) $ 2,964 $ — $ (1,736) $ 1,228 Put options on treasuries 31,070 — 31,070 — — 31,070 Warehouse and other lines of credit 7,457,199 — 7,457,199 (7,457,199) — — Secured debt obligations (1) 545,596 — 545,596 (545,596) — — Total Liabilities $ 8,060,968 $ (24,139) $ 8,036,829 $ (8,002,795) $ (1,736) $ 32,298 |
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 and other lines of credit and secured debt obligations were secured by financial instruments with fair value that exceeded the liability amount recorded on the consolidated balance sheets as of June 30, 2022 and December 31, 2021, respectively. June 30, 2022 Gross amounts recognized Gross amounts offset in consolidated balance sheet Net amounts presented in consolidated balance sheet Gross amounts not offset in consolidated balance sheet Net amount Financial instruments Cash collateral Assets: Forward sale contracts $ 100,202 $ (56,276) $ 43,926 $ — $ (40,606) $ 3,320 MBS put options 17,795 — 17,795 — — 17,795 Total Assets $ 117,997 $ (56,276) $ 61,721 $ — $ (40,606) $ 21,115 Liabilities: Forward sale contracts $ 66,970 $ (56,276) $ 10,694 $ — $ (1,947) $ 8,747 Put options on treasuries 9,113 — 9,113 — — 9,113 MBS put options 12,924 — 12,924 — — 12,924 Interest rate swap futures 5,746 — 5,746 — — 5,746 Warehouse and other lines of credit 4,265,343 — 4,265,343 (4,265,343) — — Secured debt obligations (1) 1,439,841 — 1,439,841 (1,439,841) — — Total Liabilities $ 5,799,937 $ (56,276) $ 5,743,661 $ (5,705,184) $ (1,947) $ 36,530 (1) Secured debt obligations as of June 30, 2022 included secured credit facilities and Term Notes. December 31, 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 sale contracts $ 29,497 $ (24,139) $ 5,358 $ — $ (1,447) $ 3,911 Interest rate swap futures 4,924 — 4,924 — — 4,924 Total Assets $ 34,421 $ (24,139) $ 10,282 $ — $ (1,447) $ 8,835 Liabilities: Forward sale contracts $ 27,103 $ (24,139) $ 2,964 $ — $ (1,736) $ 1,228 Put options on treasuries 31,070 — 31,070 — — 31,070 Warehouse and other lines of credit 7,457,199 — 7,457,199 (7,457,199) — — Secured debt obligations (1) 545,596 — 545,596 (545,596) — — Total Liabilities $ 8,060,968 $ (24,139) $ 8,036,829 $ (8,002,795) $ (1,736) $ 32,298 |
LOANS HELD FOR SALE, AT FAIR _2
LOANS HELD FOR SALE, AT FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 of loan as of June 30, 2022 and December 31, 2021: June 30, December 31, Amount % Amount % Conforming - fixed $ 3,018,321 64% $ 4,881,222 61% Conforming - ARM 26,694 1 351,408 4 Government - fixed 1,003,598 21 1,156,890 15 Government - ARM 6,951 — 10,906 — Other - residential mortgage loans 648,560 14 1,576,858 20 Consumer loans 1,819 — 1,942 — 4,705,943 100% 7,979,226 100% Fair value adjustment (49,605) 157,591 Total $ 4,656,338 $ 8,136,817 |
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 Six Months Ended 2022 2021 2022 2021 Balance at beginning of period $ 6,558,668 $ 8,787,756 $ 8,136,817 $ 6,955,424 Origination and purchase of loans 15,769,229 34,413,319 37,142,855 75,814,894 Sales (17,876,229) (34,294,254) (40,681,596) (74,213,668) Repurchases 194,650 111,385 333,666 663,700 Principal payments (40,598) (43,206) (100,885) (66,506) Fair value gain (loss) 50,618 145,653 (174,519) (33,191) Balance at end of period $ 4,656,338 $ 9,120,653 $ 4,656,338 $ 9,120,653 |
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 Six Months Ended 2022 2021 2022 2021 (Discount) premium from loan sales $ (437,194) $ 407,314 $ (673,291) $ 877,887 Servicing rights 180,455 427,458 450,215 957,002 Unrealized losses from derivative assets and liabilities (190,545) (510,788) (31,803) (182,467) Realized gains from derivative assets and liabilities 553,834 250,912 902,875 350,548 Discount points, rebates and lender paid costs 71,767 (28,603) 131,834 (143,458) Fair value gain (loss) 50,618 145,653 (174,519) (33,191) Provision for loan loss obligation for loans sold (82,373) 533 (95,619) (267) Total gain on origination and sale of loans, net $ 146,562 $ 692,479 $ 509,692 $ 1,826,054 |
SERVICING RIGHTS, AT FAIR VAL_2
SERVICING RIGHTS, AT FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, December 31, Conventional $ 120,545,854 $ 127,270,097 Government 34,671,158 34,842,868 Total servicing portfolio $ 155,217,012 $ 162,112,965 |
Summary of Unpaid Principal Balance Underlying Servicing Rights | A summary of the unpaid principal balance underlying servicing rights is as follows: June 30, December 31, Current loans $ 153,367,435 $ 160,302,966 Loans 30 - 89 days delinquent 520,963 504,467 Loans 90 or more days delinquent or in foreclosure 1,328,614 1,305,532 Total servicing portfolio (1) $ 155,217,012 $ 162,112,965 |
Summary of Changes in Servicing Rights | A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Balance at beginning of period $ 2,078,187 $ 1,766,088 $ 1,999,402 $ 1,124,302 Additions 180,455 427,458 450,215 957,001 Sales proceeds, net (86,464) (182,113) (399,314) (182,788) Changes in fair value: Due to changes in valuation inputs or assumptions 98,795 (129,267) 297,792 101,757 Due to collection/realization of cash flows (66,380) (105,771) (143,502) (223,877) Balance at end of period $ 2,204,593 $ 1,776,395 $ 2,204,593 $ 1,776,395 |
Summary of Components of Loan Servicing Fee Income | The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations: Three Months Ended Six Months Ended 2022 2021 2022 2021 Contractual servicing fees $ 113,824 $ 92,164 $ 222,650 $ 171,734 Late, ancillary and other fees 3,502 2,578 5,735 5,575 Servicing fee income $ 117,326 $ 94,742 $ 228,385 $ 177,309 |
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 Six Months Ended 2022 2021 2022 2021 Changes in fair value: Due to changes in valuation inputs or assumptions $ 98,795 $ (129,267) $ 297,792 $ 101,757 Due to collection/realization of cash flows (66,380) (105,771) (143,502) (223,877) Realized (losses) gains on sales of servicing rights (2,493) 6,089 7,540 5,992 Net (loss) gain from derivatives hedging servicing rights (63,429) 83,851 (263,720) (72,605) Changes in fair value of servicing rights, net $ (33,507) $ (145,098) $ (101,890) $ (188,733) |
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. June 30, December 31, Fair Value of Servicing Rights, net $ 2,204,593 $ 1,999,402 Change in Fair Value from adverse changes: Discount Rate: Increase 1% (79,165) (85,066) Increase 2% (152,847) (163,255) Cost of Servicing: Increase 10% (19,008) (20,843) Increase 20% (38,045) (41,727) Prepayment Speed: Increase 10% (29,614) (76,532) Increase 20% (58,466) (148,556) |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022: Interest rate lock commitments $ 5,120,259 Derivative asset, at fair value $ 91,886 $ — Interest rate lock commitments 2,569,129 Derivative liabilities, at fair value — 34,281 Forward sale contracts 17,168,753 Derivative asset, at fair value 43,926 — Forward sale contracts 2,335,109 Derivative liabilities, at fair value — 10,694 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 3,500 Derivative liabilities, at fair value — 9,113 MBS put options 2,150,000 Derivative asset, at fair value 17,795 — MBS put options 1,300,000 Derivative liabilities, at fair value — 12,924 Interest rate swap futures — Derivative asset, at fair value — — Interest rate swap futures 3,339 Derivative liabilities, at fair value — 5,746 Total derivative financial instruments $ 153,607 $ 72,758 Fair Value Notional Balance Sheet Location Asset Liability December 31, 2021: Interest rate lock commitments $ 11,530,721 Derivative asset, at fair value $ 184,383 $ — Interest rate lock commitments 1,125,911 Derivative liabilities, at fair value — 3,763 Forward sale contracts 19,482,705 Derivative asset, at fair value 5,358 — Forward sale contracts 13,171,462 Derivative liabilities, at fair value — 2,964 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 16,980 Derivative liabilities, at fair value — 31,070 Interest rate swap futures 2,640 Derivative asset, at fair value 4,924 — Interest rate swap futures — Derivative liabilities, at fair value — — Total derivative financial instruments $ 194,665 $ 37,797 |
Net Gains (Losses) on Derivative Financial Instruments | The following summarizes the realized and unrealized net gains or losses on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included: Three Months Ended Six Months Ended Derivative instrument Statements of Operations Location 2022 2021 2022 2021 Interest rate lock commitments, net Gain on origination and sale of loans, net $ 45,605 $ 86,303 $ (123,015) $ (313,964) Forward sale contracts Gain on origination and sale of loans, net 297,939 (317,263) 962,458 507,082 Interest rate swap futures Gain on origination and sale of loans, net (50,848) (22,217) (84,530) (52,208) Put options Gain on origination and sale of loans, net 70,593 (6,699) 116,159 27,171 Forward sale contracts Change in fair value of servicing rights, net (23,399) 33,925 (97,627) (79,004) Interest rate swap futures Change in fair value of servicing rights, net (38,916) 48,194 (165,579) 7,178 Put options Change in fair value of servicing rights, net (1,114) 1,732 (514) (779) Total realized and unrealized gains (losses) on derivative financial instruments $ 299,860 $ (176,025) $ 607,352 $ 95,476 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A summary of the Company’s activity related to goodwill is as follows. Goodwill Other intangible assets Total Balance, December 31, 2021 $ 40,736 $ 1,581 $ 42,317 Amortization — (205) (205) Impairment loss (40,736) (1,376) (42,112) Balance, June 30, 2022 $ — $ — $ — Goodwill Other intangible assets Total Balance, December 31, 2020 $ 40,736 $ 2,090 $ 42,826 Amortization — (255) (255) Balance June 30, 2021 $ 40,736 $ 1,835 $ 42,571 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 securitization and SPE VIEs June 30, December 31, Assets Loans held for sale, at fair value $ 1,800,968 $ 2,557,490 Restricted cash 67,998 100,494 Servicing rights, at fair value 484,393 400,678 Prepaid expenses and other assets 37,349 17,756 $ 2,390,708 $ 3,076,418 Liabilities Warehouse and other lines of credit $ 1,800,000 $ 2,600,000 Debt obligations, net: MSR Facilities 114,711 15,000 Servicing advance facilities 32,739 15,070 Term notes 199,415 199,133 $ 2,146,865 $ 2,829,203 June 30, 2022 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 105,308 $ — $ 105,308 $ 2,376,297 Investments in joint ventures 18,408 — 18,408 15,061 $ 123,716 $ — $ 123,716 December 31, 2021 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 72,874 $ — $ 72,874 $ 1,424,857 Investments in joint ventures 18,553 — 18,553 20,783 $ 91,427 $ — $ 91,427 |
WAREHOUSE AND OTHER LINES OF _2
WAREHOUSE AND OTHER LINES OF CREDIT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents information on warehouse borrowings and the outstanding balance as of June 30, 2022 and December 31, 2021: Outstanding Balance Committed Uncommitted Total Expiration June 30, December 31, Facility 1 (1) $ 400,000 $ 1,100,000 $ 1,500,000 10/29/2022 $ 643,618 $ 851,088 Facility 2 (2) — 600,000 600,000 9/26/2022 160,471 295,743 Facility 3 — 500,000 500,000 4/18/2023 146,580 459,018 Facility 4 — 900,000 900,000 11/14/2022 325,842 266,230 Facility 5 (2) — 200,000 200,000 N/A 852 391 Facility 6 (2) 100,000 1,000,000 1,100,000 10/10/2022 149,623 583,449 Facility 7 (3) 750,000 750,000 1,500,000 5/5/2023 609,506 1,410,367 Facility 8 — 750,000 750,000 N/A 148,592 361,783 Facility 9 (4)(5) — — — 10/25/2022 — 600,000 Facility 10 (4) 300,000 — 300,000 12/17/2023 300,000 500,000 Facility 11 (2)(6) — 500,000 500,000 9/23/2022 76,629 263,516 Facility 12 (4) 500,000 — 500,000 2/2/2024 500,000 500,000 Facility 13 (4) 500,000 — 500,000 4/23/2024 500,000 500,000 Facility 14 — 500,000 500,000 9/22/2022 203,630 365,614 Facility 15 (4) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 3,050,000 $ 6,800,000 $ 9,850,000 $ 4,265,343 $ 7,457,199 (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 addition to the warehouse line, the lender provides a separate gestation facility to finance recently sold MBS up to the MBS settlement date. (3) In addition to the outstanding balance secured by mortgage loans, the Company has $114.7 million outstanding to finance servicing rights included within debt obligations in the consolidated balance sheets. (4) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. (5) This facility was prepaid and terminated in March 2022. (6) This facility was prepaid and terminated in July 2022. The following table presents certain information on warehouse borrowings: Three Months Ended Six Months Ended 2022 2021 2022 2021 Maximum outstanding balance during the period $ 6,407,547 $ 9,180,276 $ 7,672,559 $ 9,180,276 Average balance outstanding during the period 4,928,772 8,164,737 5,605,996 7,838,140 Collateral pledged (loans held for sale) 4,408,362 8,919,427 4,408,362 8,919,427 Weighted average interest rate during the period 2.60 % 2.21 % 2.27 % 2.27 % |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Information on Outstanding Debt | The following table presents the outstanding debt as of June 30, 2022 and December 31, 2021: June 30, December 31, Secured debt obligations, net: Secured credit facilities MSR facilities $ 1,105,630 $ 262,250 Securities financing facilities 98,900 66,439 Servicing advance facilities 32,739 15,070 Total secured credit facilities 1,237,269 343,759 Term Notes 199,415 199,133 Total secured debt obligations, net 1,436,684 542,892 Unsecured debt obligations, net: Senior Notes 990,456 1,085,316 Total debt obligations, net $ 2,427,140 $ 1,628,208 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 Six Months Ended 2022 2021 2022 2021 Loan processing and administrative services fee income $ 4,548 $ 3,754 $ 7,878 $ 7,107 Commitment fee income 1,255 — 1,255 — Fee income from joint ventures $ 5,803 $ 3,754 $ 9,133 $ 7,107 Loan origination broker fees expense $ 29,797 $ 22,258 $ 49,926 $ 40,708 June 30, December 31, Amounts (payable) receivable from joint ventures $ (7,922) $ 1,855 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Ownership of LD Holdings | The following table summarizes the ownership of LD Holdings as of June 30, 2022. Holding Member Interests: Holdco Units Ownership Percentage loanDepot, Inc. 160,619,719 51.35% Continuing LLC Members 152,191,394 48.65% Total 312,811,113 100.00% |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculation of basic and diluted earnings (loss) per share for Class A common stock and Class D common stock: Three Months Ended Six Months Ended June 30, 2022 June 30, 2022 Class A Class D Total Class A Class D Total Net loss attributable to loanDepot, Inc. $ (37,266) $ (63,662) $ (100,928) $ (45,531) $ (90,137) $ (135,669) Weighted average shares - basic 56,795,709 97,026,671 153,822,380 49,138,217 97,276,918 146,415,135 Loss per share - basic $ (0.66) $ (0.66) $ (0.66) $ (0.93) $ (0.93) $ (0.93) Diluted loss per share: Net loss allocated to common stockholders - diluted $ (37,266) $ (63,662) $ (100,928) $ (45,531) $ (90,137) $ (135,668) Weighted average shares - diluted 56,795,709 97,026,671 153,822,380 49,138,217 97,276,918 146,415,135 Loss per share - diluted $ (0.66) $ (0.66) $ (0.66) $ (0.93) $ (0.93) $ (0.93) Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Class A Class D Total Class A Class D Total Net income attributable to loanDepot, Inc. $ 678 $ 7,883 $ 8,561 $ 3,633 $ 49,803 $ 53,436 Weighted average shares - basic 10,038,195 116,688,681 126,726,876 8,592,536 117,800,413 126,392,949 Earnings per share - basic $ 0.07 $ 0.07 $ 0.07 $ 0.42 $ 0.42 $ 0.42 Diluted income per share: Net income allocated to common stockholders - diluted $ 678 $ 7,883 $ 8,561 $ 3,633 $ 49,803 $ 53,436 Weighted average shares - diluted 10,038,195 116,688,681 126,726,876 8,592,536 117,800,413 126,392,949 Earnings per share - diluted $ 0.07 $ 0.07 $ 0.07 $ 0.42 $ 0.42 $ 0.42 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 Six Months Ended 2022 2021 2022 2021 Balance at beginning of period $ 41,159 $ 30,052 $ 29,877 $ 33,591 Provision for loan loss obligations 82,373 (533) 95,619 267 Charge-offs (37,659) (2,893) (39,623) (7,232) Balance at end of period $ 85,873 $ 26,626 $ 85,873 $ 26,626 |
DESCRIPTION OF BUSINESS, PRES_3
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-controlling Interests (Details) | 6 Months Ended | |
Feb. 12, 2021 | Jun. 30, 2022 | |
Noncontrolling Interest [Line Items] | ||
Stock, exchange ratio | 1 | 1 |
LD Holdings | LDLLC | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 99.99% | |
LD Holdings | ART | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 100% | |
LD Holdings | LDSS | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 100% | |
LD Holdings | Mello | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 100% | |
LD Holdings | MCS | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 100% |
DESCRIPTION OF BUSINESS, PRES_4
DESCRIPTION OF BUSINESS, PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Loan Originations Benchmark | Geographic Concentration Risk | California | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 23% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 1 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 32% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 2 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 27% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 3 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 19% |
Warehouse Lines of Credit Benchmark | Lender Concentration Risk | Lender 1 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 14% |
Warehouse Lines of Credit Benchmark | Lender Concentration Risk | Lender 2 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 15% |
FAIR VALUE - Financial Statemen
FAIR VALUE - Financial Statement Items on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Loans held for sale, at fair value | $ 4,656,338 | $ 8,136,817 |
Derivative assets, at fair value | 153,607 | 194,665 |
Servicing rights, at fair value | 2,213,700 | 2,006,712 |
Trading securities, at fair value | 105,308 | 72,874 |
Liabilities | ||
Derivative liabilities, at fair value | 72,758 | 37,797 |
Fair Value, Recurring | ||
Assets | ||
Loans held for sale, at fair value | 4,656,338 | 8,136,817 |
Servicing rights, at fair value | 2,213,700 | 2,006,712 |
Trading securities, at fair value | 105,308 | 72,874 |
Liabilities | ||
Servicing rights, at fair value | 9,107 | 7,310 |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Loans held for sale, at fair value | 0 | 0 |
Servicing rights, at fair value | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Liabilities | ||
Servicing rights, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Loans held for sale, at fair value | 4,656,338 | 8,136,817 |
Servicing rights, at fair value | 0 | 0 |
Trading securities, at fair value | 105,308 | 72,874 |
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 | 2,213,700 | 2,006,712 |
Trading securities, at fair value | 0 | 0 |
Liabilities | ||
Servicing rights, at fair value | 9,107 | 7,310 |
Fair Value, Recurring | Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 954,930 | 419,571 |
Restricted cash | 194,645 | 201,025 |
Loans held for sale, at fair value | 4,656,338 | 8,136,817 |
Derivative assets, at fair value | 153,607 | 194,665 |
Servicing rights, at fair value | 2,213,700 | 2,006,712 |
Trading securities, at fair value | 105,308 | 72,874 |
Loans eligible for repurchase | 506,454 | 363,373 |
Liabilities | ||
Warehouse and other lines of credit | 4,265,343 | 7,457,199 |
Derivative liabilities, at fair value | 72,758 | 37,797 |
Servicing rights, at fair value | 9,107 | 7,310 |
Liability for loans eligible for repurchase | 506,454 | 363,373 |
Fair Value, Recurring | Carrying Amount | Secured credit facilities | ||
Liabilities | ||
Debt obligations: | 1,237,269 | 343,759 |
Fair Value, Recurring | Carrying Amount | Term Notes | ||
Liabilities | ||
Debt obligations: | 199,415 | 199,133 |
Fair Value, Recurring | Carrying Amount | Senior Notes | ||
Liabilities | ||
Debt obligations: | 990,456 | 1,085,316 |
Fair Value, Recurring | Estimated Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 954,930 | 419,571 |
Restricted cash | 194,645 | 201,025 |
Loans held for sale, at fair value | 0 | 0 |
Derivative assets, at fair value | 0 | 4,924 |
Servicing rights, at fair value | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Loans eligible for repurchase | 0 | 0 |
Liabilities | ||
Warehouse and other lines of credit | 0 | 0 |
Derivative liabilities, at fair value | 14,859 | 31,070 |
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 | 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 | 4,656,338 | 8,136,817 |
Derivative assets, at fair value | 61,721 | 5,358 |
Servicing rights, at fair value | 0 | 0 |
Trading securities, at fair value | 105,308 | 72,874 |
Loans eligible for repurchase | 506,454 | 363,373 |
Liabilities | ||
Warehouse and other lines of credit | 4,265,343 | 7,457,199 |
Derivative liabilities, at fair value | 23,618 | 2,964 |
Servicing rights, at fair value | 0 | 0 |
Liability for loans eligible for repurchase | 506,454 | 363,373 |
Fair Value, Recurring | Estimated Fair Value | Level 2 | Secured credit facilities | ||
Liabilities | ||
Debt obligations: | 1,239,841 | 345,596 |
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: | 657,453 | 1,057,977 |
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 | 91,886 | 184,383 |
Servicing rights, at fair value | 2,213,700 | 2,006,712 |
Trading securities, at fair value | 0 | 0 |
Loans eligible for repurchase | 0 | 0 |
Liabilities | ||
Warehouse and other lines of credit | 0 | 0 |
Derivative liabilities, at fair value | 34,281 | 3,763 |
Servicing rights, at fair value | 9,107 | 7,310 |
Liability for loans eligible for repurchase | 0 | 0 |
Fair Value, Recurring | Estimated Fair Value | Level 3 | Secured credit facilities | ||
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Loans held for sale | $ 4,656,338 | $ 8,136,817 |
Trading securities, at fair value | 105,308 | 72,874 |
Derivative assets | 153,607 | 194,665 |
Servicing rights | 2,213,700 | 2,006,712 |
Liabilities | ||
Derivative liabilities | 72,758 | 37,797 |
Interest rate lock commitments | ||
Assets | ||
Derivative assets | 91,886 | 184,383 |
Liabilities | ||
Derivative liabilities | 34,281 | 3,763 |
Interest rate swap futures | ||
Assets | ||
Derivative assets | 0 | 4,924 |
Liabilities | ||
Derivative liabilities | 5,746 | 0 |
Forward sale contracts | ||
Assets | ||
Derivative assets | 43,926 | 5,358 |
Liabilities | ||
Derivative liabilities | 10,694 | 2,964 |
MBS put options | ||
Assets | ||
Derivative assets | 17,795 | |
Liabilities | ||
Derivative liabilities | 12,924 | |
Put options on treasuries | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 9,113 | 31,070 |
Fair Value, Recurring | ||
Assets | ||
Loans held for sale | 4,656,338 | 8,136,817 |
Trading securities, at fair value | 105,308 | 72,874 |
Servicing rights | 2,213,700 | 2,006,712 |
Total assets at fair value | 7,128,953 | 10,411,068 |
Liabilities | ||
Servicing rights | 9,107 | 7,310 |
Total liabilities at fair value | 81,865 | 45,107 |
Fair Value, Recurring | Interest rate lock commitments | ||
Assets | ||
Derivative assets | 91,886 | 184,383 |
Liabilities | ||
Derivative liabilities | 34,281 | 3,763 |
Fair Value, Recurring | Interest rate swap futures | ||
Assets | ||
Derivative assets | 4,924 | |
Liabilities | ||
Derivative liabilities | 5,746 | |
Fair Value, Recurring | Forward sale contracts | ||
Assets | ||
Derivative assets | 43,926 | 5,358 |
Liabilities | ||
Derivative liabilities | 10,694 | 2,964 |
Fair Value, Recurring | MBS put options | ||
Assets | ||
Derivative assets | 17,795 | |
Liabilities | ||
Derivative liabilities | 12,924 | |
Fair Value, Recurring | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities | 9,113 | 31,070 |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Loans held for sale | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Servicing rights | 0 | 0 |
Total assets at fair value | 0 | 4,924 |
Liabilities | ||
Servicing rights | 0 | 0 |
Total liabilities at fair value | 14,859 | 31,070 |
Fair Value, Recurring | Level 1 | Interest rate lock commitments | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Interest rate swap futures | ||
Assets | ||
Derivative assets | 4,924 | |
Liabilities | ||
Derivative liabilities | 5,746 | |
Fair Value, Recurring | Level 1 | Forward sale contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | MBS put options | ||
Assets | ||
Derivative assets | 0 | |
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 1 | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities | 9,113 | 31,070 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Loans held for sale | 4,656,338 | 8,136,817 |
Trading securities, at fair value | 105,308 | 72,874 |
Servicing rights | 0 | 0 |
Total assets at fair value | 4,823,367 | 8,215,049 |
Liabilities | ||
Servicing rights | 0 | 0 |
Total liabilities at fair value | 23,618 | 2,964 |
Fair Value, Recurring | Level 2 | Interest rate lock commitments | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | Interest rate swap futures | ||
Assets | ||
Derivative assets | 0 | |
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 2 | Forward sale contracts | ||
Assets | ||
Derivative assets | 43,926 | 5,358 |
Liabilities | ||
Derivative liabilities | 10,694 | 2,964 |
Fair Value, Recurring | Level 2 | MBS put options | ||
Assets | ||
Derivative assets | 17,795 | |
Liabilities | ||
Derivative liabilities | 12,924 | |
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, at fair value | 0 | 0 |
Servicing rights | 2,213,700 | 2,006,712 |
Total assets at fair value | 2,305,586 | 2,191,095 |
Liabilities | ||
Servicing rights | 9,107 | 7,310 |
Total liabilities at fair value | 43,388 | 11,073 |
Fair Value, Recurring | Level 3 | Interest rate lock commitments | ||
Assets | ||
Derivative assets | 91,886 | 184,383 |
Liabilities | ||
Derivative liabilities | 34,281 | 3,763 |
Fair Value, Recurring | Level 3 | Interest rate swap futures | ||
Assets | ||
Derivative assets | 0 | |
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 3 | Forward sale contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | MBS put options | ||
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Servicing Rights, net | ||||
Servicing Rights: | ||||
Balance at beginning of period | $ 2,078,187 | $ 1,766,088 | $ 1,999,402 | $ 1,124,302 |
Total net gains (losses) included in earnings (realized and unrealized) | 212,777 | 203,937 | 624,546 | 846,359 |
Sales | (86,371) | (193,630) | (419,355) | (194,266) |
Settlements | 0 | 0 | 0 | 0 |
Transfers of IRLCs to closed loans | 0 | 0 | 0 | 0 |
Balance at end of period | 2,204,593 | 1,776,395 | 2,204,593 | 1,776,395 |
Interest Rate Lock Commitments | ||||
Derivatives: | ||||
Balance at beginning of period | 12,000 | 246,778 | 180,620 | 647,045 |
Total net gains or losses included in earnings (realized and unrealized) | 114,197 | 720,422 | 257,154 | 1,108,970 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (38,536) | (432,748) | (271,458) | (1,026,450) |
Transfers of IRLCs to closed loans | (30,056) | (201,371) | (108,711) | (396,484) |
Balance at end of period | $ 57,605 | $ 333,081 | $ 57,605 | $ 333,081 |
FAIR VALUE - Gains and Losses i
FAIR VALUE - Gains and Losses in Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Assets: | ||||
Gain on origination and sale of loans, net | $ 180,455 | $ 427,458 | $ 450,215 | $ 957,001 |
Gains included in change in fair value of servicing rights | 32,300 | (223,500) | 174,300 | (110,600) |
Level 3 | Servicing Rights, net | ||||
Assets: | ||||
Total net gains (losses) included in earnings | 212,777 | 203,937 | 624,546 | 846,359 |
Change in unrealized gains relating to assets and liabilities still held at period end | 215,835 | 296,555 | 615,444 | 1,038,347 |
Level 3 | Interest Rate Lock Commitments | ||||
Derivatives: | ||||
Total net gains (losses) included in earnings | 45,605 | 86,303 | (123,015) | (313,964) |
Change in unrealized gains relating to assets and liabilities still held at period end | $ 57,605 | $ 333,081 | $ 57,605 | $ 333,081 |
FAIR VALUE - Fair Value Inputs
FAIR VALUE - Fair Value Inputs and Valuation Techniques (Details) | Jun. 30, 2022 $ / loan | Dec. 31, 2021 $ / loan |
IRLCs | Minimum | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.010 | 0.003 |
IRLCs | Maximum | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.999 | 0.993 |
IRLCs | Weighted Average | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.802 | 0.742 |
Servicing rights | Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.046 | 0.045 |
Servicing rights | Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.054 | 0.084 |
Servicing rights | Minimum | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 63 | 70 |
Servicing rights | Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.105 | 0.090 |
Servicing rights | Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.149 | 0.187 |
Servicing rights | Maximum | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 136 | 114 |
Servicing rights | Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.062 | 0.058 |
Servicing rights | Weighted Average | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.072 | 0.102 |
Servicing rights | Weighted Average | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 85 | 82 |
BALANCE SHEET NETTING (Details)
BALANCE SHEET NETTING (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Net amounts presented in consolidated balance sheet | $ 153,607 | $ 194,665 |
Liabilities: | ||
Net amounts presented in consolidated balance sheet | 72,758 | 37,797 |
Total liabilities, gross amounts recognized | 5,799,937 | 8,060,968 |
Total liabilities, gross amounts offset in consolidated balance sheet | (56,276) | (24,139) |
Total liabilities, net amounts presented in consolidated balance sheet | 5,743,661 | 8,036,829 |
Total liabilities, gross amounts not offset in consolidated balance sheet, financial instruments | (5,705,184) | (8,002,795) |
Total liabilities, gross amounts not offset in consolidated balance sheet, cash collateral | (1,947) | (1,736) |
Total liabilities, net amount | 36,530 | 32,298 |
Warehouse and other lines of credit | ||
Liabilities: | ||
Gross amounts offset in consolidated balance sheet | 0 | 0 |
Securities loaned, gross/net amounts recognized | 4,265,343 | 7,457,199 |
Securities loaned, gross amounts not offset in consolidated balance sheet, financial instruments | (4,265,343) | (7,457,199) |
Securities loaned, gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Securities loaned, net amount | 0 | 0 |
Secured debt obligations | ||
Liabilities: | ||
Gross amounts offset in consolidated balance sheet | 0 | 0 |
Securities loaned, gross/net amounts recognized | 1,439,841 | 545,596 |
Securities loaned, gross amounts not offset in consolidated balance sheet, financial instruments | (1,439,841) | (545,596) |
Securities loaned, gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Securities loaned, net amount | 0 | 0 |
Forward sale contracts | ||
Assets: | ||
Gross amounts recognized | 100,202 | 29,497 |
Gross amounts offset in consolidated balance sheet | (56,276) | (24,139) |
Net amounts presented in consolidated balance sheet | 43,926 | 5,358 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | (40,606) | (1,447) |
Net amount | 3,320 | 3,911 |
Liabilities: | ||
Gross amounts recognized | 66,970 | 27,103 |
Gross amounts offset in consolidated balance sheet | (56,276) | (24,139) |
Net amounts presented in consolidated balance sheet | 10,694 | 2,964 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | (1,947) | (1,736) |
Net amount | 8,747 | 1,228 |
Put options on treasuries | ||
Assets: | ||
Net amounts presented in consolidated balance sheet | 0 | 0 |
Liabilities: | ||
Gross amounts recognized | 9,113 | 31,070 |
Gross amounts offset in consolidated balance sheet | 0 | 0 |
Net amounts presented in consolidated balance sheet | 9,113 | 31,070 |
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 | 9,113 | 31,070 |
MBS put options | ||
Assets: | ||
Gross amounts recognized | 17,795 | |
Gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | 17,795 | |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | |
Net amount | 17,795 | |
Liabilities: | ||
Gross amounts recognized | 12,924 | |
Gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | 12,924 | |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | |
Net amount | 12,924 | |
Interest rate swap futures | ||
Assets: | ||
Gross amounts recognized | 4,924 | |
Gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | 0 | 4,924 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | |
Net amount | 4,924 | |
Liabilities: | ||
Gross amounts recognized | 5,746 | |
Gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | 5,746 | 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 | 5,746 | |
All except interest rate lock commitments | ||
Assets: | ||
Gross amounts recognized | 117,997 | 34,421 |
Gross amounts offset in consolidated balance sheet | (56,276) | (24,139) |
Net amounts presented in consolidated balance sheet | 61,721 | 10,282 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | (40,606) | (1,447) |
Net amount | $ 21,115 | $ 8,835 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 4,705,943 | $ 7,979,226 |
Fair value adjustment | (49,605) | 157,591 |
Total | $ 4,656,338 | $ 8,136,817 |
Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Fixed | Confirming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 3,018,321 | $ 4,881,222 |
Fixed | Confirming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 64% | 61% |
Fixed | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 1,003,598 | $ 1,156,890 |
Fixed | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 21% | 15% |
ARM | Confirming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 26,694 | $ 351,408 |
ARM | Confirming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 1% | 4% |
ARM | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 6,951 | $ 10,906 |
ARM | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 0% | 0% |
Other - residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 648,560 | $ 1,576,858 |
Other - residential mortgage loans | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 14% | 20% |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 1,819 | $ 1,942 |
Consumer loans | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 0% | 0% |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||
Balance at beginning of period | $ 6,558,668 | $ 8,787,756 | $ 8,136,817 | $ 6,955,424 |
Origination and purchase of loans | 15,769,229 | 34,413,319 | 37,142,855 | 75,814,894 |
Sales | (17,876,229) | (34,294,254) | (40,681,596) | (74,213,668) |
Repurchases | 194,650 | 111,385 | 333,666 | 663,700 |
Principal payments | (40,598) | (43,206) | (100,885) | (66,506) |
Fair value gain (loss) | 50,618 | 145,653 | (174,519) | (33,191) |
Balance at end of period | $ 4,656,338 | $ 9,120,653 | $ 4,656,338 | $ 9,120,653 |
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 | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Receivables [Abstract] | |||||
(Discount) premium from loan sales | $ (437,194) | $ 407,314 | $ (673,291) | $ 877,887 | |
Servicing rights | 180,455 | 427,458 | 450,215 | 957,002 | |
Unrealized losses from derivative assets and liabilities | (190,545) | (510,788) | (31,803) | (182,467) | |
Realized gains from derivative assets and liabilities | 553,834 | 250,912 | 902,875 | 350,548 | |
Discount points, rebates and lender paid costs | 71,767 | (28,603) | 131,834 | (143,458) | |
Fair value gain (loss) | 50,618 | 145,653 | (174,519) | (33,191) | |
Provision for loan loss obligation for loans sold | (82,373) | 533 | (95,619) | (267) | |
Total gain on origination and sale of loans, net | 146,562 | $ 692,479 | 509,692 | $ 1,826,054 | |
Loans held for sale on non-accrual status | $ 23,700 | $ 23,700 | $ 28,800 |
SERVICING RIGHTS, AT FAIR VAL_3
SERVICING RIGHTS, AT FAIR VALUE - Components of Service Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 155,217,012 | $ 162,112,965 |
Conventional | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | 120,545,854 | 127,270,097 |
Government | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 34,671,158 | $ 34,842,868 |
SERVICING RIGHTS, AT FAIR VAL_4
SERVICING RIGHTS, AT FAIR VALUE - Unpaid Principal of Servicing Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 155,217,012 | $ 162,112,965 |
Percentage of servicing portfolio in forbearance resulting from COVID-19 | 0.40% | 0.60% |
Current loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 153,367,435 | $ 160,302,966 |
Loans 30 - 89 days delinquent | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | 520,963 | 504,467 |
Loans 90 or more days delinquent or in foreclosure | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 1,328,614 | $ 1,305,532 |
SERVICING RIGHTS, AT FAIR VAL_5
SERVICING RIGHTS, AT FAIR VALUE - Change in Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance at beginning of period | $ 2,078,187 | $ 1,766,088 | $ 1,999,402 | $ 1,124,302 |
Additions | 180,455 | 427,458 | 450,215 | 957,001 |
Sales proceeds, net | (86,464) | (182,113) | (399,314) | (182,788) |
Due to changes in valuation inputs or assumptions | 98,795 | (129,267) | 297,792 | 101,757 |
Due to collection/realization of cash flows | (66,380) | (105,771) | (143,502) | (223,877) |
Balance at end of period | $ 2,204,593 | $ 1,776,395 | $ 2,204,593 | $ 1,776,395 |
SERVICING RIGHTS, AT FAIR VAL_6
SERVICING RIGHTS, AT FAIR VALUE - Component of Loan Servicing Fee Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Transfers and Servicing [Abstract] | ||||
Contractual servicing fees | $ 113,824 | $ 92,164 | $ 222,650 | $ 171,734 |
Late, ancillary and other fees | 3,502 | 2,578 | 5,735 | 5,575 |
Total | $ 117,326 | $ 94,742 | $ 228,385 | $ 177,309 |
SERVICING RIGHTS, AT FAIR VAL_7
SERVICING RIGHTS, AT FAIR VALUE - Changes in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Transfers and Servicing [Abstract] | ||||
Due to changes in valuation inputs or assumptions | $ 98,795 | $ (129,267) | $ 297,792 | $ 101,757 |
Due to collection/realization of cash flows | (66,380) | (105,771) | (143,502) | (223,877) |
Realized (losses) gains on sales of servicing rights | (2,493) | 6,089 | 7,540 | 5,992 |
Net (loss) gain from derivatives hedging servicing rights | (63,429) | 83,851 | (263,720) | (72,605) |
Changes in fair value of servicing rights, net | $ (33,507) | $ (145,098) | $ (101,890) | $ (188,733) |
SERVICING RIGHTS, AT FAIR VAL_8
SERVICING RIGHTS, AT FAIR VALUE - Servicing Rights Sensitivity Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Transfers and Servicing [Abstract] | ||
Fair Value of Servicing Rights, net | $ 2,204,593 | $ 1,999,402 |
Discount rate, increase 1% | (79,165) | (85,066) |
Discount rate, increase 2% | (152,847) | (163,255) |
Cost of servicing. increase 10% | (19,008) | (20,843) |
Cost of servicing. increase 20% | (38,045) | (41,727) |
Prepayment speed, increase 10% | (29,614) | (76,532) |
Prepayment speed, increase 20% | $ (58,466) | $ (148,556) |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Fair Value, Asset | $ 153,607 | $ 194,665 |
Fair Value, Liability | 72,758 | 37,797 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Notional, Assets | 5,120,259 | 11,530,721 |
Notional, Liabilities | 2,569,129 | 1,125,911 |
Fair Value, Asset | 91,886 | 184,383 |
Fair Value, Liability | 34,281 | 3,763 |
Forward sale contracts | ||
Derivative [Line Items] | ||
Notional, Assets | 17,168,753 | 19,482,705 |
Notional, Liabilities | 2,335,109 | 13,171,462 |
Fair Value, Asset | 43,926 | 5,358 |
Fair Value, Liability | 10,694 | 2,964 |
Put options on treasuries | ||
Derivative [Line Items] | ||
Notional, Assets | 0 | 0 |
Notional, Liabilities | 3,500 | 16,980 |
Fair Value, Asset | 0 | 0 |
Fair Value, Liability | 9,113 | 31,070 |
MBS put options | ||
Derivative [Line Items] | ||
Notional, Assets | 2,150,000 | |
Notional, Liabilities | 1,300,000 | |
Fair Value, Asset | 17,795 | |
Fair Value, Liability | 12,924 | |
Interest rate swap futures | ||
Derivative [Line Items] | ||
Notional, Assets | 0 | 2,640 |
Notional, Liabilities | 3,339 | 0 |
Fair Value, Asset | 0 | 4,924 |
Fair Value, Liability | $ 5,746 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Realized and Unrealized Gains on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized gains (losses) on derivative financial instruments | $ 299,860 | $ (176,025) | $ 607,352 | $ 95,476 |
Gain on origination and sale of loans, net | Interest rate lock commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized gains (losses) on derivative financial instruments | 45,605 | 86,303 | (123,015) | (313,964) |
Gain on origination and sale of loans, net | Forward sale contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized gains (losses) on derivative financial instruments | 297,939 | (317,263) | 962,458 | 507,082 |
Gain on origination and sale of loans, net | Interest rate swap futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized gains (losses) on derivative financial instruments | (50,848) | (22,217) | (84,530) | (52,208) |
Gain on origination and sale of loans, net | Put options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized gains (losses) on derivative financial instruments | 70,593 | (6,699) | 116,159 | 27,171 |
Change in fair value of servicing rights, net | Forward sale contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized gains (losses) on derivative financial instruments | (23,399) | 33,925 | (97,627) | (79,004) |
Change in fair value of servicing rights, net | Interest rate swap futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized gains (losses) on derivative financial instruments | (38,916) | 48,194 | (165,579) | 7,178 |
Change in fair value of servicing rights, net | Put options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized gains (losses) on derivative financial instruments | $ (1,114) | $ 1,732 | $ (514) | $ (779) |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets [Roll Forward] | ||||
Goodwill | $ 40,736 | $ 40,736 | ||
Other intangible assets | 1,581 | 2,090 | ||
Goodwill and intangible assets | 42,317 | 42,826 | ||
Amortization | (205) | (255) | ||
Impairment loss | $ (1,400) | (1,376) | ||
Impairment loss | (40,736) | $ 0 | (40,736) | 0 |
Goodwill and intangible asset impairment | (42,112) | |||
Goodwill | 0 | 40,736 | 0 | 40,736 |
Other intangible assets | 0 | 1,835 | 0 | 1,835 |
Goodwill and intangible assets | $ 0 | $ 42,571 | $ 0 | $ 42,571 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment loss | $ 40,736 | $ 0 | $ 40,736 | $ 0 |
Amortization | 205 | $ 255 | ||
Impairment of intangible assets | $ 1,400 | $ 1,376 |
VARIABLE INTEREST ENTITIES - Co
VARIABLE INTEREST ENTITIES - Consolidated VIEs (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||||||
Loans held for sale, at fair value | $ 4,656,338 | $ 6,558,668 | $ 8,136,817 | $ 9,120,653 | $ 8,787,756 | $ 6,955,424 |
Restricted cash | 194,645 | 201,025 | ||||
Servicing rights, at fair value | 2,213,700 | 2,006,712 | ||||
Prepaid expenses and other assets | 140,145 | 140,315 | ||||
Total assets | 9,195,187 | 11,812,313 | ||||
Warehouse and other lines of credit | 4,265,343 | 7,457,199 | ||||
Debt obligations, net | 2,427,140 | 1,628,208 | ||||
Total liabilities | 7,981,324 | 10,182,953 | ||||
Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Loans held for sale, at fair value | 1,800,968 | 2,557,490 | ||||
Restricted cash | 67,998 | 100,494 | ||||
Servicing rights, at fair value | 484,393 | 400,678 | ||||
Prepaid expenses and other assets | 37,349 | 17,756 | ||||
Total assets | 2,390,708 | 3,076,418 | ||||
Warehouse and other lines of credit | 1,800,000 | 2,600,000 | ||||
Total liabilities | 2,146,865 | 2,829,203 | ||||
Variable Interest Entity, Primary Beneficiary | MSR Facilities | ||||||
Variable Interest Entity [Line Items] | ||||||
Debt obligations, net | 114,711 | 15,000 | ||||
Variable Interest Entity, Primary Beneficiary | Servicing advance facilities | ||||||
Variable Interest Entity [Line Items] | ||||||
Debt obligations, net | 32,739 | 15,070 | ||||
Variable Interest Entity, Primary Beneficiary | Term Notes | ||||||
Variable Interest Entity [Line Items] | ||||||
Debt obligations, net | $ 199,415 | $ 199,133 |
VARIABLE INTEREST ENTITIES - No
VARIABLE INTEREST ENTITIES - Nonconsolidated VIEs (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Retained interests at carrying value | $ 105,308 | $ 72,874 |
Investments in joint ventures | 18,408 | 18,553 |
Total assets | 9,195,187 | 11,812,313 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 123,716 | 91,427 |
Maximum exposure to loss | 123,716 | 91,427 |
Variable Interest Entity, Not Primary Beneficiary | Joint Venture | ||
Variable Interest Entity [Line Items] | ||
Investments in joint ventures | 18,408 | 18,553 |
Maximum exposure to loss | 18,408 | 18,553 |
Total assets in VIEs | 15,061 | 20,783 |
Variable Interest Entity, Not Primary Beneficiary | Retained Interests | ||
Variable Interest Entity [Line Items] | ||
Retained interests at carrying value | 105,308 | 72,874 |
Maximum exposure to loss | 105,308 | 72,874 |
Total assets in VIEs | $ 2,376,297 | $ 1,424,857 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||||
Total portfolio | $ 155,217,012 | $ 155,217,012 | $ 162,112,965 | ||
Loans 90 or more days delinquent or in foreclosure | |||||
Variable Interest Entity [Line Items] | |||||
Total portfolio | 1,328,614 | 1,328,614 | 1,305,532 | ||
Variable Interest Entity, Not Primary Beneficiary | Pledged as Collateral | |||||
Variable Interest Entity [Line Items] | |||||
Total assets in VIEs | 2,376,297 | 2,376,297 | 1,424,857 | ||
Variable Interest Entity, Not Primary Beneficiary | Joint Venture | |||||
Variable Interest Entity [Line Items] | |||||
Total assets in VIEs | 15,061 | 15,061 | $ 20,783 | ||
Share in net earnings of joint ventures | 4,200 | $ 2,900 | 6,200 | $ 5,100 | |
Variable Interest Entity, Not Primary Beneficiary | Loans 90 or more days delinquent or in foreclosure | |||||
Variable Interest Entity [Line Items] | |||||
Total portfolio | $ 500 | $ 500 |
WAREHOUSE AND OTHER LINES OF _3
WAREHOUSE AND OTHER LINES OF CREDIT - Additional Information (Details) | 1 Months Ended | 6 Months Ended | ||||||||
Oct. 30, 2021 | Mar. 31, 2022 USD ($) | Apr. 30, 2021 USD ($) | Feb. 28, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2020 USD ($) | Jun. 30, 2022 USD ($) lineOfCredit | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Oct. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||||
Number of lines of credit held | lineOfCredit | 14 | |||||||||
Restricted cash | $ 194,645,000 | $ 201,025,000 | ||||||||
Repayments of lines of credit | 45,714,257,000 | $ 83,211,614,000 | ||||||||
Warehouse Agreement Borrowings | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Restricted cash | $ 7,000,000 | $ 8,000,000 | ||||||||
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] | ||||||||||
Basis spread on variable rate (as a percent) | 2.25% | |||||||||
Debt instrument, term | 2 years | |||||||||
Warehouse Agreement Borrowings | Base Rate | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.02% | |||||||||
Warehouse and Revolving Credit Facilities | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | $ 9,850,000,000 | |||||||||
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 | |||||||||
Repayments of lines of credit | $ 200,000,000 | |||||||||
Outstanding balance | $ 300,000,000 | |||||||||
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 | 2021-3 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 ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Outstanding Balance | $ 4,265,343,000 | $ 7,457,199,000 |
Debt obligations, net | 2,427,140,000 | 1,628,208,000 |
Finance Servicing Rights | ||
Line of Credit Facility [Line Items] | ||
Debt obligations, net | 114,700,000 | |
Warehouse and Revolving Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 3,050,000,000 | |
Uncommitted Amount | 6,800,000,000 | |
Total Facility Amount | 9,850,000,000 | |
Outstanding Balance | 4,265,343,000 | 7,457,199,000 |
Warehouse and Revolving Credit Facilities | Facility 1 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 400,000,000 | |
Uncommitted Amount | 1,100,000,000 | |
Total Facility Amount | 1,500,000,000 | |
Outstanding Balance | 643,618,000 | 851,088,000 |
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 | 160,471,000 | 295,743,000 |
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 | 146,580,000 | 459,018,000 |
Warehouse and Revolving Credit Facilities | Facility 4 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 900,000,000 | |
Total Facility Amount | 900,000,000 | |
Outstanding Balance | 325,842,000 | 266,230,000 |
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 | 852,000 | 391,000 |
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 | 149,623,000 | 583,449,000 |
Warehouse and Revolving Credit Facilities | Facility 7 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 750,000,000 | |
Uncommitted Amount | 750,000,000 | |
Total Facility Amount | 1,500,000,000 | |
Outstanding Balance | 609,506,000 | 1,410,367,000 |
Warehouse and Revolving Credit Facilities | Facility 8 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 750,000,000 | |
Total Facility Amount | 750,000,000 | |
Outstanding Balance | 148,592,000 | 361,783,000 |
Warehouse and Revolving Credit Facilities | Facility 9 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Outstanding Balance | 0 | 600,000,000 |
Warehouse and Revolving Credit Facilities | Facility 10 | ||
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 | 500,000,000 |
Warehouse and Revolving Credit Facilities | Facility 11 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 500,000,000 | |
Total Facility Amount | 500,000,000 | |
Outstanding Balance | 76,629,000 | 263,516,000 |
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 | 500,000,000 | 500,000,000 |
Warehouse and Revolving Credit Facilities | Facility 13 | ||
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 | 500,000,000 |
Warehouse and Revolving Credit Facilities | Facility 14 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 500,000,000 | |
Total Facility Amount | 500,000,000 | |
Outstanding Balance | 203,630,000 | 365,614,000 |
Warehouse and Revolving Credit Facilities | Facility 15 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 500,000,000 | |
Uncommitted Amount | 0 | |
Outstanding Balance | 500,000,000 | $ 500,000,000 |
Securitization Facilities | Facility 15 | ||
Line of Credit Facility [Line Items] | ||
Total Facility Amount | $ 500,000,000 |
WAREHOUSE AND OTHER LINES OF _5
WAREHOUSE AND OTHER LINES OF CREDIT - Information on Warehouse Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||
Loans held for sale, at fair value | $ 4,656,338 | $ 4,656,338 | $ 8,136,817 | ||
Warehouse Agreement Borrowings | |||||
Line of Credit Facility [Line Items] | |||||
Maximum outstanding balance during the period | 6,407,547 | $ 9,180,276 | 7,672,559 | $ 9,180,276 | |
Average balance outstanding during the period | $ 4,928,772 | $ 8,164,737 | $ 5,605,996 | $ 7,838,140 | |
Weighted average interest rate during the period | 2.60% | 2.21% | 2.27% | 2.27% | |
Warehouse Agreement Borrowings | Pledged as Collateral | |||||
Line of Credit Facility [Line Items] | |||||
Loans held for sale, at fair value | $ 4,408,362 | $ 8,919,427 | $ 4,408,362 | $ 8,919,427 |
DEBT OBLIGATIONS - Information
DEBT OBLIGATIONS - Information on Outstanding Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt obligations, net | $ 2,427,140 | $ 1,628,208 |
Secured debt obligations | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 1,436,684 | 542,892 |
Secured debt obligations | Term Notes | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 199,415 | 199,133 |
Secured debt obligations | MSR Facilities | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 1,105,630 | 262,250 |
Secured debt obligations | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 98,900 | 66,439 |
Secured debt obligations | Servicing advance facilities | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 32,739 | 15,070 |
Secured debt obligations | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 1,237,269 | 343,759 |
Unsecured debt obligations | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | $ 990,456 | $ 1,085,316 |
DEBT OBLIGATIONS - Secured Cred
DEBT OBLIGATIONS - Secured Credit Facilities (Details) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2021 USD ($) debt_instrument | Sep. 30, 2020 USD ($) | Aug. 31, 2017 USD ($) | Oct. 31, 2014 USD ($) |
Debt Instrument [Line Items] | ||||||
Servicing rights, at fair value | $ 2,213,700,000 | $ 2,006,712,000 | ||||
Debt obligations, net | 2,427,140,000 | 1,628,208,000 | ||||
Trading securities, at fair value | $ 105,308,000 | 72,874,000 | ||||
Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Advance rate | 60% | |||||
Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Advance rate | 90% | |||||
Finance Servicing Rights | ||||||
Debt Instrument [Line Items] | ||||||
Debt obligations, net | $ 114,700,000 | |||||
Pledged as Collateral | ||||||
Debt Instrument [Line Items] | ||||||
Servicing rights, at fair value | 484,393,000 | 400,678,000 | ||||
Pledged as Collateral | Variable Interest Entity, Not Primary Beneficiary | ||||||
Debt Instrument [Line Items] | ||||||
Trading securities, at fair value | 105,308,000 | 72,874,000 | ||||
Secured credit facilities | ||||||
Debt Instrument [Line Items] | ||||||
Debt obligations, net | 1,436,684,000 | 542,892,000 | ||||
Secured credit facilities | 2020-VF1 Notes | Advance Receivables Trust | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 130,000,000 | |||||
Secured credit facilities | 2020-VF1 Notes | Reimbursement For Advances Made | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding balance | 18,900,000 | |||||
Secured credit facilities | GMSR VFN | GNMA Mortgage Servicing Rights | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 65,000,000 | |||||
Secured credit facilities | GMSR VFN | Servicing Advance Reimbursement Amounts | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding balance | 14,300,000 | |||||
Deferred financing costs | 500,000 | |||||
Number of debt instruments | debt_instrument | 2 | |||||
Secured credit facilities | GMSR VFN | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 150,000,000 | |||||
Secured credit facilities | GMSR VFN | Maximum | Servicing Advance Reimbursement Amounts | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 150,000,000 | |||||
Secured credit facilities | Revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity | $ 25,000,000 | |||||
Outstanding balance | 268,000,000 | |||||
Available borrowing capacity | 268,000,000 | |||||
Debt obligations, net | 1,237,269,000 | 343,759,000 | ||||
Secured credit facilities | Revolving credit facility | Pledged as Collateral | ||||||
Debt Instrument [Line Items] | ||||||
Servicing rights, at fair value | 365,700,000 | |||||
Secured credit facilities | Third Secured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity | 300,000,000 | |||||
Servicing rights, at fair value | 600,900,000 | |||||
Outstanding balance | 300,000,000 | |||||
Line of credit facility, option to increase In borrowing capacity | 500,000,000 | |||||
Deferred financing costs | 400,000 | |||||
Secured credit facilities | Fourth Secured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity | 500,000,000 | |||||
Servicing rights, at fair value | 711,200,000 | |||||
Outstanding balance | 425,000,000 | |||||
Deferred financing costs | 1,700,000 | |||||
Secured credit facilities | Securities financing facilities | ||||||
Debt Instrument [Line Items] | ||||||
Debt obligations, net | $ 98,900,000 | $ 66,439,000 |
DEBT OBLIGATIONS - Term Notes (
DEBT OBLIGATIONS - Term Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Outstanding balance | $ 2,427,140 | $ 1,628,208 |
Secured credit facilities | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 1,436,684 | 542,892 |
Secured credit facilities | Term Notes | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 199,415 | $ 199,133 |
Deferred financing costs | 600 | |
Long-term Debt, Gross | $ 200,000 |
DEBT OBLIGATIONS - Senior Notes
DEBT OBLIGATIONS - Senior Notes (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Oct. 31, 2020 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ 10,528,000 | $ 0 | ||||
Outstanding balance | 2,427,140,000 | $ 1,628,208,000 | ||||
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% | |||||
Outstanding balance | 500,000,000 | |||||
Deferred financing costs | 5,900,000 | |||||
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% | |||||
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% | |||||
Extinguishment of debt, amount | $ 97,500,000 | |||||
Extinguishment of debt, purchase price, percentage of par | 87.90% | |||||
Gain (loss) on extinguishment of debt | $ 10,500,000 | |||||
Outstanding balance | 502,500,000 | |||||
Deferred financing costs | $ 6,100,000 | |||||
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% |
DEBT OBLIGATIONS - Interest Exp
DEBT OBLIGATIONS - Interest Expense (Details) - 30-Day or 90-Day LIBOR | 6 Months Ended |
Jun. 30, 2022 | |
Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 0.70% |
Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 3.50% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset before valuation allowance | $ 100,000 | $ 400,000 |
Deferred tax liability | $ 155,100,000 | $ 193,400,000 |
Combined federal and state rate, percent | 26% | 26% |
Deferred tax asset, valuation allowance | $ 0 | |
TRA liability | $ 48,800,000 | $ 32,900,000 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - Joint Venture - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Loan processing and administrative services fee income | $ 4,548 | $ 3,754 | $ 7,878 | $ 7,107 | |
Commitment fee income | 1,255 | 0 | 1,255 | 0 | |
Fee income from joint ventures | 5,803 | 3,754 | 9,133 | 7,107 | |
Loan origination broker fees expense | 29,797 | $ 22,258 | 49,926 | $ 40,708 | |
Amounts (payable) receivable from joint ventures | $ (7,922) | $ (7,922) | $ 1,855 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
Personnel expense | $ 296,569 | $ 470,125 | $ 642,563 | $ 1,073,861 |
Shareholder | ||||
Related Party Transaction [Line Items] | ||||
Personnel expense | $ 100 | 100 | 200 | |
Management fees | $ 41 | $ 200 |
EQUITY - Additional Information
EQUITY - Additional Information (Details) $ in Thousands | 6 Months Ended | ||
Feb. 12, 2021 | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Equity [Abstract] | |||
Stock, exchange ratio | 1 | 1 | |
Noncontrolling interest | $ 669,236 | $ 1,105,803 |
EQUITY - Summary of Ownership (
EQUITY - Summary of Ownership (Details) - LD Holdings | Jun. 30, 2022 shares |
Noncontrolling Interest [Line Items] | |
Holdco Units (in shares) | 312,811,113 |
Ownership Percentage | 100% |
loanDepot, Inc. | |
Noncontrolling Interest [Line Items] | |
Holdco Units (in shares) | 160,619,719 |
Ownership Percentage | 51.35% |
Continuing LLC Members | |
Noncontrolling Interest [Line Items] | |
Holdco Units (in shares) | 152,191,394 |
Ownership Percentage | 48.65% |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic earnings per share: | |||||
Net loss attributable to loanDepot, Inc. | $ (100,928) | $ 8,561 | $ (135,669) | $ 53,436 | |
Weighted average shares - basic (in shares) | 153,822,380 | 126,726,876 | 146,415,135 | 126,392,949 | |
Earnings per share - Basic (in usd per share) | $ (0.66) | $ 0.07 | $ (0.93) | $ 0.42 | |
Diluted income per share: | |||||
Net loss allocated to common stockholders - diluted | $ (100,928) | $ 8,561 | $ (135,668) | $ 53,436 | |
Weighted average shares - diluted (in shares) | 153,822,380 | 126,726,876 | 146,415,135 | 126,392,949 | |
Earnings per share - Diluted (in usd per share) | $ (0.66) | $ 0.07 | $ (0.93) | $ 0.42 | |
Class B | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common stock, shares, outstanding | 0 | 0 | 0 | 0 | 0 |
Class A | |||||
Basic earnings per share: | |||||
Net loss attributable to loanDepot, Inc. | $ (37,266) | $ 678 | $ (45,531) | $ 3,633 | |
Weighted average shares - basic (in shares) | 56,795,709 | 10,038,195 | 49,138,217 | 8,592,536 | |
Earnings per share - Basic (in usd per share) | $ (0.66) | $ 0.07 | $ (0.93) | $ 0.42 | |
Diluted income per share: | |||||
Net loss allocated to common stockholders - diluted | $ (37,266) | $ 678 | $ (45,531) | $ 3,633 | |
Weighted average shares - diluted (in shares) | 56,795,709 | 10,038,195 | 49,138,217 | 8,592,536 | |
Earnings per share - Diluted (in usd per share) | $ (0.66) | $ 0.07 | $ (0.93) | $ 0.42 | |
Class A | RSUs | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities (in shares) | 14,221,221 | 808,090 | 748,185 | 11,914,870 | |
Class D | |||||
Basic earnings per share: | |||||
Net loss attributable to loanDepot, Inc. | $ (63,662) | $ 7,883 | $ (90,137) | $ 49,803 | |
Weighted average shares - basic (in shares) | 97,026,671 | 116,688,681 | 97,276,918 | 117,800,413 | |
Earnings per share - Basic (in usd per share) | $ (0.66) | $ 0.07 | $ (0.93) | $ 0.42 | |
Diluted income per share: | |||||
Net loss allocated to common stockholders - diluted | $ (63,662) | $ 7,883 | $ (90,137) | $ 49,803 | |
Weighted average shares - diluted (in shares) | 97,026,671 | 116,688,681 | 97,276,918 | 117,800,413 | |
Earnings per share - Diluted (in usd per share) | $ (0.66) | $ 0.07 | $ (0.93) | $ 0.42 | |
Class C | Common shares | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities (in shares) | 165,281,304 | 196,741,703 | 197,366,213 | 173,245,208 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Other Commitments [Line Items] | ||||||
Customer escrow balance | $ 14,700 | $ 21,100 | ||||
Financing receivable, allowance for credit loss | $ 85,873 | $ 41,159 | 29,877 | $ 26,626 | $ 30,052 | $ 33,591 |
Percent of cash tax savings paid | 85% | |||||
TRA liability | $ 48,800 | 32,900 | ||||
Employment Litigation | ||||||
Other Commitments [Line Items] | ||||||
Loss contingency, damages sought | 75,000 | |||||
MSR Facilities | ||||||
Other Commitments [Line Items] | ||||||
Financing receivable, allowance for credit loss | 9,800 | 400 | ||||
Commitments to Extend Credit | ||||||
Other Commitments [Line Items] | ||||||
Commitments to originate loans | $ 7,700,000 | $ 12,700,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Loan Loss Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 41,159 | $ 30,052 | $ 29,877 | $ 33,591 |
Provision for loan loss obligations | 82,373 | (533) | 95,619 | 267 |
Charge-offs | (37,659) | (2,893) | (39,623) | (7,232) |
Balance at end of period | $ 85,873 | $ 26,626 | $ 85,873 | $ 26,626 |
REGULATORY CAPITAL AND LIQUID_2
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Mortgage Banking [Abstract] | |
Minimum adjusted net worth balance requirement | $ 120.4 |