Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 14, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40003 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 63,374,027 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement for use in connection with its 2023 Annual Meeting of Stockholders, which is to be filed no later than 120 days after December 31, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001831631 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 74,728,419 | ||
Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 | ||
Class C | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 144,702,512 | ||
Class D | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 97,026,671 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Los Angeles, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 863,956 | $ 419,571 |
Restricted cash | 116,545 | 201,025 |
Accounts receivable, net | 145,279 | 56,183 |
Loans held for sale, at fair value (includes $497,574 and $2,557,490 pledged to creditors in securitization trusts at December 31, 2022 and 2021, respectively) | 2,373,427 | 8,136,817 |
Derivative assets, at fair value | 39,411 | 194,665 |
Servicing rights, at fair value (includes $544,729 and $400,678 pledged to creditors in securitization trusts at December 31, 2022 and 2021, respectively) | 2,037,447 | 2,006,712 |
Trading securities, at fair value | 94,243 | 72,874 |
Property and equipment, net | 92,889 | 104,262 |
Operating lease right-of-use assets | 35,668 | 55,646 |
Prepaid expenses and other assets | 155,982 | 140,315 |
Loans eligible for repurchase | 634,677 | 363,373 |
Investments in joint ventures | 20,410 | 18,553 |
Goodwill and intangible assets, net | 0 | 42,317 |
Total assets | 6,609,934 | 11,812,313 |
Liabilities: | ||
Warehouse and other lines of credit | 2,146,602 | 7,457,199 |
Accounts payable, accrued expenses and other liabilities | 488,696 | 624,444 |
Derivative liabilities, at fair value | 67,492 | 37,797 |
Liability for loans eligible for repurchase | 634,677 | 363,373 |
Operating lease liability | 61,675 | 71,932 |
Long-term debt | 2,289,319 | 1,628,208 |
Total liabilities | 5,688,461 | 10,182,953 |
Commitments and contingencies (Note 20) | ||
Equity: | ||
Preferred stock, $0.001 par value, 50,000,000 authorized, none issued at December 31, 2022 and 2021, respectively | 0 | 0 |
Treasury stock at cost, 1,780,141 and 1,593,366 shares at December 31, 2022 and 2021, respectively | (13,282) | (12,852) |
Additional paid-in capital | 788,601 | 565,073 |
Retained deficit | (342,137) | (28,976) |
Noncontrolling interest | 487,974 | 1,105,803 |
Total equity | 921,473 | 1,629,360 |
Total liabilities and equity | 6,609,934 | 11,812,313 |
Pledged as Collateral | ||
ASSETS | ||
Loans held for sale, at fair value (includes $497,574 and $2,557,490 pledged to creditors in securitization trusts at December 31, 2022 and 2021, respectively) | 497,574 | 2,557,490 |
Servicing rights, at fair value (includes $544,729 and $400,678 pledged to creditors in securitization trusts at December 31, 2022 and 2021, respectively) | 544,729 | 400,678 |
Class A | ||
Equity: | ||
Common stock, $0.001 par value | 74 | 38 |
Class B | ||
Equity: | ||
Common stock, $0.001 par value | 0 | 0 |
Class C | ||
Equity: | ||
Common stock, $0.001 par value | 146 | 173 |
Class D | ||
Equity: | ||
Common stock, $0.001 par value | $ 97 | $ 101 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans held for sale, at fair value | $ 2,373,427 | $ 8,136,817 |
Servicing rights, at fair value | $ 2,037,447 | $ 2,006,712 |
Preferred stock, par value (in usd per share) | $ 0.001 | |
Preferred stock, shares authorized | 50,000,000 | |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 1,780,141 | 1,593,366 |
Class A | ||
Common stock, par value (in usd per share) | $ 0.001 | |
Common stock, shares authorized | 2,500,000,000 | |
Common stock, shares, issued | 74,277,152 | 38,060,302 |
Class B | ||
Common stock, par value (in usd per share) | $ 0.001 | |
Common stock, shares authorized | 2,500,000,000 | |
Common stock, shares, issued | 0 | 0 |
Class C | ||
Common stock, par value (in usd per share) | $ 0.001 | |
Common stock, shares authorized | 2,500,000,000 | |
Common stock, shares, issued | 145,693,119 | 172,729,168 |
Class D | ||
Common stock, par value (in usd per share) | $ 0.001 | |
Common stock, shares authorized | 2,500,000,000 | |
Common stock, shares, issued | 97,026,671 | 100,822,084 |
Pledged as Collateral | ||
Loans held for sale, at fair value | $ 497,574 | $ 2,557,490 |
Servicing rights, at fair value | $ 544,729 | $ 400,678 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES: | |||
Interest income | $ 200,204 | $ 262,478 | $ 142,879 |
Interest expense | (150,897) | (218,457) | (131,443) |
Net interest income | 49,307 | 44,021 | 11,436 |
Gain on origination and sale of loans, net | 748,540 | 3,213,351 | 3,905,986 |
Origination income, net | 129,736 | 362,257 | 258,807 |
Servicing fee income | 449,150 | 393,680 | 185,895 |
Changes in fair value of servicing rights, net | (194,357) | (445,862) | (144,348) |
Other income | 73,420 | 157,257 | 94,398 |
Total net revenues | 1,255,796 | 3,724,704 | 4,312,174 |
EXPENSES: | |||
Personnel expense | 1,027,008 | 1,929,752 | 1,531,371 |
Marketing and advertising expense | 236,828 | 467,590 | 264,337 |
Direct origination expense | 120,854 | 193,264 | 124,754 |
General and administrative expense | 265,680 | 214,965 | 171,712 |
Occupancy expense | 35,306 | 38,443 | 39,262 |
Depreciation and amortization | 42,195 | 35,541 | 35,669 |
Servicing expense | 53,106 | 99,068 | 81,710 |
Other interest expense | 124,060 | 79,564 | 48,001 |
Goodwill impairment | 40,736 | 0 | 0 |
Total expenses | 1,945,773 | 3,058,187 | 2,296,816 |
(Loss) income before income taxes | (689,977) | 666,517 | 2,015,358 |
Income tax (benefit) expense | (79,592) | 43,371 | 2,248 |
Net (loss) income | (610,385) | 623,146 | 2,013,110 |
Net (loss) income attributable to noncontrolling interest | (337,365) | 509,622 | 2,013,110 |
Net (loss) income attributable to loanDepot, Inc. | $ (273,020) | $ 113,524 | $ 0 |
(Loss) earnings per share: | |||
Basic (in usd per share) | $ (1.75) | $ 0.87 | |
Diluted (in usd per share) | $ (1.75) | $ 0.87 | |
Weighted average shares outstanding: | |||
Basic (in shares) | 156,030,350 | 129,998,894 | |
Diluted (in shares) | 156,030,350 | 129,998,894 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Class X Common Unit | Class A | Class C | Class D | Class A and D | Redeemable I Units | Common stock Class A | Common stock Class C | Common stock Class D | Treasury Stock | Additional paid-in capital | Retained Deficit | Retained Deficit Class C | Retained Deficit Class A and D | Non-controlling Interests | Non-controlling Interests Class X Common Unit | Non-controlling Interests Class C | Non-controlling Interests Class A and D | Non-controlling Interests Redeemable I Units |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 0 | 0 | 0 | |||||||||||||||||
Balance at beginning of period at Dec. 31, 2019 | $ 375,885 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 375,885 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Redemptions/Repurchase | $ (220) | $ (97,608) | $ (220) | $ (97,608) | ||||||||||||||||
Stock-based compensation | 8,501 | 8,501 | ||||||||||||||||||
Noncontrolling interest, dividends | (643,055) | (643,055) | ||||||||||||||||||
Net income | 2,013,110 | 2,013,110 | ||||||||||||||||||
Net (loss) income | 2,013,110 | |||||||||||||||||||
Balance at end of period (in shares) at Dec. 31, 2020 | 0 | 0 | 0 | |||||||||||||||||
Balance at end 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 income | 509,622 | |||||||||||||||||||
Net (loss) income | 623,146 | |||||||||||||||||||
Balance at end of period (in shares) at Dec. 31, 2021 | 38,060,302 | 172,729,168 | 100,822,084 | 36,466,936 | 172,729,168 | 100,822,084 | ||||||||||||||
Balance at end 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] | ||||||||||||||||||||
Noncontrolling interest, dividends | $ (7,008) | $ (6,461) | ||||||||||||||||||
Net income | (337,365) | |||||||||||||||||||
Distributions for taxes on behalf of shareholders, net | (63,676) | (28,948) | (34,728) | |||||||||||||||||
Net (loss) income | (610,385) | (273,020) | (337,365) | |||||||||||||||||
Deferred taxes and other tax adjustments related to conversions and exchanges | (29,317) | (29,317) | ||||||||||||||||||
Net issuance of common stock under stock-based compensation plans (in shares) | 36,030,075 | (27,036,049) | (3,795,413) | |||||||||||||||||
Net issuance of common stock under stock-based compensation plans | (430) | $ 36 | $ (27) | $ (4) | (430) | 242,280 | $ (242,285) | |||||||||||||
Dividends | $ (12,874) | $ (11,788) | $ (5,866) | $ (5,327) | ||||||||||||||||
Stock-based compensation | 20,583 | 10,565 | 10,018 | |||||||||||||||||
Balance at end of period (in shares) at Dec. 31, 2022 | 74,277,152 | 145,693,119 | 97,026,671 | 72,497,011 | 145,693,119 | 97,026,671 | ||||||||||||||
Balance at end of period at Dec. 31, 2022 | $ 921,473 | $ 74 | $ 146 | $ 97 | $ (13,282) | $ 788,601 | $ (342,137) | $ 487,974 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Class A and D | ||
Dividends declared (in usd per share) | $ 0.08 | $ 0.85 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (610,385) | $ 623,146 | $ 2,013,110 |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Depreciation and amortization expense | 42,195 | 35,541 | 35,669 |
Amortization of debt issuance costs | 15,160 | 12,633 | 7,068 |
Amortization of operating lease right-of-use asset | 20,776 | 22,613 | 25,028 |
Gain on origination and sale of loans | (1,203,521) | (3,633,452) | (3,565,492) |
(Gain) loss on sale of servicing rights | (10,554) | (1,458) | 3,108 |
Fair value change in trading securities | 21,573 | 836 | 0 |
Provision for loss obligation on sold loans and servicing rights | 151,211 | 18,403 | 25,565 |
(Decrease) increase in provision for deferred income taxes | (80,276) | 31,315 | 0 |
Fair value change in derivative assets | 333,786 | 460,264 | (493,436) |
Fair value change in derivative liabilities | 29,695 | (130,372) | 158,191 |
Premium (paid) received on derivatives | (178,532) | 3,393 | (23,275) |
Purchase of options contracts | 0 | (10,383) | 0 |
Fair value change in loans held for sale | 185,111 | 104,715 | (185,885) |
Fair value change in servicing rights | (132,614) | 353,225 | 296,310 |
Stock-based compensation expense | 20,583 | 67,063 | 8,501 |
Change in fair value of contingent consideration | 0 | 0 | 32,650 |
Originations of loans | (53,094,767) | (136,606,028) | (100,535,715) |
Proceeds from sales of loans | 59,681,043 | 138,027,936 | 100,163,631 |
Proceeds from principal payments | 132,322 | 182,883 | 57,120 |
Payments to investors for loan repurchases | (742,911) | (965,933) | (203,931) |
Gain on extinguishment of debt | (10,528) | 0 | 0 |
Goodwill impairment | 40,736 | 0 | 0 |
Disbursements from joint ventures | 12,128 | 11,749 | 10,450 |
Changes in operating assets and liabilities: | |||
Other changes in operating assets and liabilities | (161,485) | (73,774) | 140,620 |
Net cash provided by (used in) operating activities | 4,460,746 | (1,465,685) | (2,030,713) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property and equipment | (43,211) | (54,124) | (33,905) |
Proceeds from sale of servicing rights | 703,812 | 349,528 | 6,773 |
Cash flows received on trading securities | 7,484 | 2,268 | 0 |
Investment in joint ventures | (325) | (1,115) | (750) |
Return of capital from joint ventures | 0 | 221 | 213 |
Net cash flows provided by (used in) investing activities | 667,760 | 296,778 | (27,669) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from borrowings on warehouse and other lines of credit | 58,014,318 | 154,391,100 | 103,367,680 |
Repayment of borrowings on warehouse and other lines of credit | (63,324,914) | (153,511,330) | (100,256,817) |
Proceeds from debt obligations | 2,124,401 | 1,401,782 | 927,693 |
Payments on debt obligations | (1,456,888) | (479,778) | (800,000) |
Payments of debt issuance costs | (5,824) | (21,185) | (17,675) |
Payments for contingent consideration | 0 | 0 | (14,692) |
Payments on financing lease obligation | 0 | (3,610) | (35,731) |
Treasury stock purchased to net settle and withhold taxes on vested shares | (430) | (12,852) | 0 |
Dividends and shareholder distributions | (119,264) | (463,313) | (643,055) |
Net cash (used in) provided by financing activities | (4,768,601) | 1,300,814 | 2,429,575 |
Net change in cash and cash equivalents and restricted cash | 359,905 | 131,907 | 371,193 |
Cash and cash equivalents and restricted cash at beginning of the period | 620,596 | 488,689 | 117,496 |
Cash and cash equivalents and restricted cash at end of the period | 980,501 | 620,596 | 488,689 |
SUPPLEMENTAL DISCLOSURES: | |||
Cash paid during the period for interest | 253,728 | 270,471 | 159,994 |
Cash paid during the period for income taxes | 26,730 | 3,329 | 447 |
Supplemental disclosure of noncash investing and financing activities | |||
Trading securities retained in securitizations | 50,426 | 75,979 | 0 |
Purchase of equipment under financing leases | 0 | 168 | 5,357 |
Class I | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Payments on repurchase of units | 0 | 0 | (97,608) |
Units | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Payments on repurchase of units | $ 0 | $ 0 | $ (220) |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 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 December 31, 2022 the consolidated subsidiaries of LD Holdings included LDLLC, ART, LDSS, Mello, and 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 The following is a summary of the significant accounting policies used in preparation of the Company’s consolidated financial statements. Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the FASB’s 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 VIE’s 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. 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. Reportable Segments The Company’s organizational structure is currently comprised of one operating segment. This determination is based on the organizational structure, which reflects how the chief operating decision maker evaluates the performance of the business. The Company’s chief operating decision maker evaluates the performance of our business that comprise our one segment based on the measurement of income before income taxes. Fair Value Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (not in a forced transaction) between willing market participants at the measurement date. Financial instruments recorded at fair value on a recurring basis include the Company’s loans held for sale, derivative assets and derivative liabilities, servicing rights, and trading securities.. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of assets and liabilities measured at fair value within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2 - Prices determined or determinable using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company. These may include quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk and other inputs. • Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity), unobservable inputs may be used. Unobservable inputs reflect the Company's own assumptions about the factors that market participants would use in pricing the asset or liability, and are based on the best information available in the circumstances. The fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments not previously carried at fair value. The Company has elected the fair value option on loans held for sale (“LHFS”). Elections were made to mitigate income statement volatility caused by differences in the measurement basis of elected instruments with derivative financial instruments that are carried at fair value. The following are methods and assumptions used to measure the Company’s financial instruments recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. Loans held for sale, at fair value- Management has elected to account for loans held for sale at fair value, with changes in fair value recognized in current period income, to more timely reflect the Company's performance. LHFS are valued at the best execution value based on the underlying characteristics of the loan, which is either based off of the to be announced mortgage-backed securities (“TBA MBS”) prices market, or investor pricing, based on product, note rate and term, therefore LHFS are classified as Level 2. The most significant data inputs used in this valuation include, but are not limited to, loan type, underlying loan amount, note rate, loan program, and expected sale date of the loan. The valuations for LHFS are adjusted at the loan level to consider the servicing release premium and loan level pricing adjustments specific to each loan. Changes in the fair value of the LHFS are recorded in current earnings as a component of gain on origination and sale of loans, net. Loans eligible for repurchase - Loans eligible for repurchase represents certain mortgage loans sold pursuant to Government National Mortgage Association (“Ginnie Mae”) programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans as an asset with a corresponding repurchase liability in its consolidated balance sheets. These loans are government guaranteed. The carrying value of loans eligible for repurchase approximates the fair value. Servicing rights, at fair value - The Company uses a discounted cash flow approach to estimate the fair value of servicing rights. This approach consists of projecting servicing cash flows. The inputs used in the Company's discounted cash flow model are based on market factors, which management believes are consistent with assumptions and data used by market participants valuing similar servicing rights. The key inputs used in the valuation of servicing rights include mortgage prepayment speeds, discount rates, costs to service the loan, and other inputs such as projected and actual rates of delinquencies, recapture rate, defaults and liquidations, ancillary fee income, and amounts of future servicing advances. These inputs can, and generally do, change from period to period as market conditions change. Servicing rights are classified as Level 3 as considerable judgment is required to estimate the fair values and the exercise of such judgment can significantly affect the Company's income. Derivative assets and liabilities, at fair value - Derivative assets and liabilities at fair value include interest rate lock commitments (“IRLCs”), forward sales contracts, interest rate swap futures, and put options on treasuries. Changes in fair value of derivatives hedging IRLCs and loans held for sale at fair value are included in gain on origination and sale of loans, net on the consolidated statements of operations. Changes in fair value of derivatives hedging mortgage servicing rights (“MSRs”) are included in change in fair value of servicing rights, net on the consolidated statements of operations. Interest rate lock commitments- The Company enters into IRLCs with prospective borrowers, which are commitments to originate loans at a specified interest rate. The IRLCs are recorded as a component of derivative assets and liabilities on the consolidated balance sheets with changes in fair value being recorded in current earnings as a component of gain on origination and sale of loans, net. The Company estimates the fair value of the IRLCs based on quoted agency TBA MBS prices, its estimate of the fair value of the servicing rights it expects to receive in the sale of the loans, the probability that the mortgage loan will fund or be purchased (the “pull-through rate”), and estimated transformative costs. The pull-through rate is based on the Company’s own experience and is a significant unobservable input used in the fair value measurement of these instruments and results in the classification of these instruments as Level 3. Significant changes in the pull-through rate of the IRLCs, in isolation, could result in significant changes in fair value measurement. Forward sale contracts - Mandatory trades are valued using available market pricing sources that reflect the commitments particular product, coupon, and settlement. These derivatives are classified as Level 2. Best efforts forward delivery commitments are valued using investor pricing considering the current base loan price. An anticipated loan funding probability is applied to value best efforts commitments hedging IRLCs, which results in the classification of these contracts as Level 3. The current base loan price and the anticipated loan funding probability are the most significant assumptions affecting the value of the best efforts commitments. The best efforts forward delivery commitments hedging LHFS are classified as Level 2; such contracts are transferred from Level 3 to Level 2 at the time the underlying loan is originated. Put options on treasuries and interest rate swap futures - The Company also utilizes put options and treasury futures to hedge interest rate risk. These instruments are actively traded in a liquid market and classified as Level 1 inputs. Trading securities, at fair value - Trading securities, at fair value represent retained interest in the credit risk of the assets collateralizing certain securitization transactions. The fair value is based on observable market data for similar securities obtained from sources independent of the Company and therefore classified as Level 2. Warehouse lines - The Company’s warehouse lines of credit bear interest at a rate that is periodically adjusted based on a market index. The carrying value of warehouse lines of credit approximates fair value. The warehouse lines are classified as Level 2 in the fair value hierarchy. Debt obligations, net - Debt consists of secured debt facilities and unsecured Senior Notes. The Company’s secured credit facilities are highly liquid and short-term in nature and as a result, their carrying value approximated fair value. The secured credit facilities bear interest at a rate that is periodically adjusted based on a market index and are classified as Level 2 in the fair value hierarchy. Fair value of the Company’s Senior Notes are estimated using quoted market prices. The Senior Notes are classified as Level 2 in the fair value hierarchy. The unsecured term loan was classified as Level 3 in the fair value hierarchy. Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. As of December 31, 2022 and 2021, all amounts recorded in cash and cash equivalents represent cash held in banks, with the exception of insignificant amounts of petty cash held on hand. Restricted Cash Cash balances that have restrictions as to the Company's ability to withdraw funds are considered restricted cash. Restricted cash is the result of the terms of the Company's warehouse lines of credit, debt obligations, and cash collateral associated with the Company’s derivative activities. In accordance with the terms of the warehouse lines of credit and debt obligations, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings. Loans Held for Sale, at Fair Value Loans held for sale are accounted for at fair value, with changes in fair value recognized in current period income. All changes in fair value, including changes arising from the passage of time, are recognized as a component of gain on origination and sale of loans, net. Sale Recognition - The Company recognizes transfers of loans held for sale as sales when it surrenders control over the loans. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. If the sale criteria are not met, the transfer is recorded as a secured borrowing in which the assets remain on the balance sheet and the proceeds from the transaction are recognized as a liability. Net interest income - Interest income on loans held for sale is recognized using their contractual interest rates. Interest income recognition is suspended for loans when they become 90 days delinquent, or when, in management's opinion, a full recovery of interest and principal becomes doubtful. Interest income recognition is resumed when the loan becomes contractually current. When loans are placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income on non-accrual loans is subsequently recognized only to the extent cash is received. Interest expense on warehouse and other lines of credit, debt obligations, and other types of borrowings is recognized using their contractual rates. Interest expense includes the amortization of expenses incurred in connection with financing activities over the term of the related borrowings. Origination Income, net - Origination income, net, reflects the fees earned, net of lender credits paid from originating loans. Origination income includes loan origination fees, processing fees, underwriting fees and other fees collected from the borrower at the time of funding. Lender credits typically include rebates or concessions to borrowers for certain loan origination costs. Loan Loss Obligations on Loans Sold When the Company sells loans to investors, the risk of loss or default by the borrower is generally transferred to the investor. However, the Company is required by these investors to make certain representations relating to credit information, loan documentation and collateral. These representations and warranties may extend through the contractual life of the mortgage loan. Subsequent to the sale, if underwriting deficiencies, borrower fraud or documentation defects are discovered in individual mortgage loans, the Company may be obligated to repurchase the respective mortgage loan or indemnify the investors for any losses from borrower defaults if such deficiency or defect cannot be cured within the specified period following discovery. In the case of early loan payoffs and early defaults on certain loans, the Company may be required to repay all or a portion of the premium initially paid by the investor on loans. The estimated obligation associated with early loan payoffs and early defaults is calculated based on historical loss experience. The obligation for losses related to the representations and warranties and other provisions discussed above is recorded based upon an estimate of losses. The liability for repurchase losses is assessed quarterly. Because the Company does not service all of the loans it sells, it does not maintain nor have access to the current balances and loan performance data with respect to all of the individual loans previously sold to investors. However, the Company uses industry-available prepayment data, historical and projected loss frequency and loss severity ratios, default expectations, and expected investor repurchase demands, to estimate its exposure to losses on loans previously sold. Given current general industry trends in mortgage loans as well as housing prices, market expectations around losses related to the Company's obligations could vary significantly from the obligation recorded as of the balance sheet dates. The Company records a provision for loan losses, included in gain on origination and sale of loans, net in the consolidated statements of operations, to establish the loan repurchase reserve for sold loans which is reflected in accounts payable and accrued expenses on the consolidated balance sheets. Securitizations The Company is involved in several types of securitization and financing transactions that utilize special-purpose entities (SPEs). A SPE is an entity that is designed to fulfill a specified limited need of the sponsor. 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. Securitization transactions 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 subordinated interests, residual interests, and/or servicing rights. Derivative Financial Instruments 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. 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 subject to master netting arrangements in a net position on the consolidated balance sheets. Interest rate lock commitments - The Company enters into IRLCs to originate loans held for sale, at specified interest rates, with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. The Company is exposed to price risk related to its loans held for sale, IRLCs and servicing rights. The Company bears price risk from the time a commitment to originate a loan is made to a borrower or to purchase a loan from a third-party, to the time the loan is sold. During this period, the Company is exposed to losses if mortgage interest rates rise because the value of the IRLC or the loan held for sale decreases. Forward sale contracts - The Company manages the price risk created by IRLCs and LHFS by entering into forward sale agreements to sell, buy, or originate specified residential mortgage loans at prices which are fixed as of the forward commitment date. Forward sale contracts also include pair offs hedging MSRs, IRLCs, and LHFS. Put options on treasuries, MBS put options, and interest rate swap futures - The Company is exposed to fair value losses on servicing rights, LHFS, and IRLCs from changes in mortgage interest rates. The Company manages the risk by hedging the fair value with put options on treasuries, MBS put options, and interest rate swap futures. Servicing Rights The value of the servicing rights is derived from the net positive cash flows associated with the servicing contracts. Servicing rights arise from contractual agreements between the Company and investors (or their agents) in mortgage securities and mortgage loans. Under these contracts, the Company performs loan servicing functions in exchange for fees and other remuneration. Servicing functions typically include, among other responsibilities, collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest; holding custodial (impound) funds for payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising the acquisition of real estate in settlement of loans and property disposition. The Company is required to make servicing advances on behalf of borrowers and investors to cover delinquent balances for property taxes, insurance premiums and other costs. Advances are made in accordance with servicing agreements and are recoverable upon collection from the borrower or foreclosure of the underlying loans. The Company periodically reviews the receivable for collectability and amounts are written-off when deemed uncollectible. As of December 31, 2022 and 2021, the Company had $98.7 million and $81.1 million, respectively, in outstanding servicing advances included in prepaid expenses and other assets. When the Company sells a loan on a servicing-retained basis, it recognizes a servicing asset at fair value based on the present value of future cash flows generated by the servicing asset retained in the sale. The Company has made the election to carry its servicing rights at fair value. The Company recognizes sales of servicing rights to a purchaser as sales when (i) the Company has received approval from the investor, if required, (ii) the purchaser is currently approved as a servicer and is not at risk of losing approval status, (iii) if the portion of the sales price has been financed, an adequate nonrefundable down payment has been received and the note receivable from the purchaser provides full recourse to the purchaser, and (iv) any temporary servicing performed by the Company for a short period of time is compensated in accordance with a subservicing contract that provides adequate compensation. Additionally, the Company recognizes sales of 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 is accrued for the estimated obligation associated with those provisions. The liability for servicing rights is included in accounts payable and accrued expenses on the consolidated balance sheets. Servicing Fee Income - The Company receives a servicing fee monthly on the remaining outstanding principal balances of the loans subject to the servicing contracts. Servicing fee income is recognized on an accrual basis and is recorded to servicing fee income. The servicing fees are collected from the monthly payments made by the mortgagors. The Company is contractually entitled to receive other remuneration including rights to various mortgagor-contracted fees such as late charges, collateral reconveyance charges and loan prepayment penalties, and the Company is generally entitled to retain the interest earned on funds held pending remittance related to its collection of mortgagor payments. Servicing Expense - The Company utilizes a sub-servicer to service a portion of its loan servicing portfolio and records the costs to servicing expense. Change in Fair Value of Servicing Rights, net - The Company is exposed to fair value risk related to its servicing rights. Servicing rights generally decline in fair value when market mortgage interest rates decrease. Decreasing market mortgage interest rates normally encourage increased mortgage refinancing activity. Increased refinancing activity reduces the life of the loans underlying the servicing rights, thereby reducing their value. Reductions in the value of these assets affect income primarily through change in fair value. Unrealized gains or losses resulting from changes in the fair value of servicing rights are recorded to change in fair value of servicing rights, net. Realized and unrealized hedging gains or losses used to hedge interest rate risk on servicing rights are recorded to change in fair value of servicing rights, net. Realized gains or losses from the sale of servicing rights are also included in change in fair value of servicing rights, net. Accounts Receivable, net Accounts receivable are assessed for collectibility and a reserve is established when amounts are outstanding longer than the contractual payment terms. The Company writes off accounts receivable when management deems them uncollectible. Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Costs associated with internally developed software during the development stage, both internal expenses and those paid to third parties, are capitalized and amortized over three years. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Useful lives for purposes of computing depreciation are as follows: Years Leasehold improvements 2 - 15 Furniture and equipment 5 - 7 Computer software 3 - 5 Expenditures that materially increase the asset life are capitalized, while ordinary maintenance and repairs are charged to operations as incurred. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in earnings. Leases The Company determines if an arrangement contains a lease at contract inception and recognizes an operating lease right-of-use (“ROU”) asset and corresponding operating lease liability based on the present value of lease payments over the lease term, except leases with initial terms less than or equal to 12 months. While the operating leases may include options to extend the term, these options are not included when calculating the operating lease right-of-use asset and lease liability unless the Company is reasonably certain it will exercise such options. Most of the leases do not provide an implicit rate and, therefore, the Company determines the present value of lease payments by using the Company’s incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets. The Company’s lease agreements include both lease and non-lease components (such as common area maintenance), which are generally included in the lease and are accounted for together with the lease as a single lease component. Certain of the Company’s lease agreements permit it to sublease leased assets. Sublease income is included as a component of lease expense. Operating lease ROU assets are regularly reviewed for impairment under the long-lived asset impairment guidance in ASC Subtopic 360-10, Property, Plant and Equipment - Overall . Loans Eligible for Repurchase Loans eligible for repurchase represents certain mortgage loans sold pursuant to Government National Mortgage Association (“Ginnie Mae”) programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans and a corresponding repurchase liability in its consolidated balance sheets. The terms of the Ginnie Mae MBS program allow, but do not require, the Company to repurchase mortgage loans when the borrower has made no payments for three consecutive months. As a result of this right, the Company records the loans in loans eligible for repurchase and records a corresponding liability in liability for loans eligible for repurchase on its consolidated balance sheets. Goodwill and Other Intangible Assets Business combinations are accounted for using the acquisition met |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 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 and Summary of Significant Accounting Policies 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. December 31, 2022 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 863,956 $ 863,956 $ — $ — Restricted cash 116,545 116,545 — — Loans held for sale, at fair value 2,373,427 — 2,373,427 — Derivative assets, at fair value 39,411 — 10,037 29,374 Servicing rights, at fair value 2,037,447 — — 2,037,447 Trading securities, at fair value 94,243 — 94,243 — Loans eligible for repurchase 634,677 — 634,677 — Liabilities Warehouse and other lines of credit $ 2,146,602 $ — $ 2,146,602 $ — Derivative liabilities, at fair value 67,492 18,226 43,482 5,784 Servicing rights, at fair value 12,311 — — 12,311 Debt obligations: Secured credit facilities 1,097,831 — 1,098,853 — Term Notes 199,666 — 200,000 — Senior Notes 991,822 — 645,495 — Liability for loans eligible for repurchase 634,677 — 634,677 — 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. December 31, 2022 Level 1 Level 2 Level 3 Total Fair value through net income: Assets: Loans held for sale $ — $ 2,373,427 $ — $ 2,373,427 Trading securities — 94,243 — 94,243 Derivative assets: Interest rate lock commitments — — 29,374 29,374 Forward sale contracts — 6,676 — 6,676 MBS put options — 3,361 — 3,361 Servicing rights — — 2,037,447 2,037,447 Total assets at fair value $ — $ 2,477,707 $ 2,066,821 $ 4,544,528 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 5,784 $ 5,784 Interest rate swap futures 7,395 — — 7,395 Forward sale contracts — 43,482 — 43,482 Put options on treasuries 10,831 — — 10,831 Servicing rights — — 12,311 12,311 Total liabilities at fair value $ 18,226 $ 43,482 $ 18,095 $ 79,803 December 31, 2021 Level 1 Level 2 Level 3 Total 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): Year Ended December 31, 2022 IRLCs, net Servicing Balance at beginning of period $ 180,620 $ 1,999,402 Total net gains or losses included in earnings (realized and unrealized) 380,443 790,885 Sales and settlements Sales — (765,151) Settlements (1) (377,071) — Transfers of IRLCs to closed loans (160,402) — Balance at end of period $ 23,590 $ 2,025,136 (1) Funded amount for IRLCs. Year Ended December 31, 2021 IRLCs, net Servicing Balance at beginning of period $ 647,045 $ 1,124,302 Total net gains or losses included in earnings (realized and unrealized) 2,169,847 1,258,829 Sales and settlements Sales — (383,729) Settlements (1) (1,969,541) — Transfers of IRLCs to closed loans (666,731) — Balance at end of period $ 180,620 $ 1,999,402 (1) Funded amount for IRLCs. Year Ended December 31, 2020 IRLCs, net Servicing Contingent Consideration Balance at beginning of period $ 128,208 $ 444,443 $ (2,374) Total net gains or losses included in earnings (realized and unrealized) 3,628,891 686,632 (32,650) Sales and settlements Sales — (6,773) — Settlements (1)(2) (2,460,225) — 34,835 Transfers of IRLCs to closed loans (649,829) — — Transfers from Level 3 (3) — — 189 Balance at end of period $ 647,045 $ 1,124,302 $ — (1) Funded amount for IRLCs. (2) The $34.8 million settlement of contingent consideration included $14.7 million to satisfy the initial contingent consideration liability, the remaining $20.1 million was paid in accordance with an annual earnout computation. (3) The $189,000 as of December 31, 2020 represents a fixed amount recorded in accounts payable and accrued liabilities on the Company’s consolidated balance sheet. 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): Year Ended December 31, 2022 IRLCs, net Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ (157,030) $ 647,716 Change in fair value of servicing rights, net — 143,169 Total $ (157,030) $ 790,885 Change in unrealized gains relating to assets and liabilities still held at period end $ 23,590 $ 710,254 Year Ended December 31, 2021 IRLCs Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ (466,425) $ 1,610,596 Change in fair value of servicing rights, net — (351,767) Total $ (466,425) $ 1,258,829 Change in unrealized gains relating to assets and liabilities still held at period end $ 180,620 $ 1,341,289 Year Ended December 31, 2020 IRLCs Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ 518,837 $ 986,050 Change in fair value of servicing rights, net — (299,418) Total $ 518,837 $ 686,632 Change in unrealized gains relating to assets and liabilities still held at period end $ 647,045 $ 860,212 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: December 31, 2022 December 31, 2021 Unobservable Input Range of inputs Weighted Average (2) Range of inputs Weighted Average (2) IRLCs: Pull-through rate 8.4% - 99.9% 75.3% 0.3% - 99.3% 74.2% Servicing rights Discount rate (1) 5.0% - 16.1% 6.5% 4.5% - 9.0% 5.8% Prepayment rate (1) 5.8% - 17.6% 7.2% 8.4% - 18.7% 10.2% Cost to service (per loan) $63 - $138 $87 $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 December 31, 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 base rate, plus a margin, they are highly liquid and short-term in nature and as a result, their carrying value approximated fair value as of December 31, 2022 and 2021. Fair value of the Company’s Senior Notes issued in October 2020 and March 2021 were estimated using the quoted market prices at December 31, 2022. The debt obligations are classified as Level 2 in the fair value hierarchy. |
BALANCE SHEET NETTING
BALANCE SHEET NETTING | 12 Months Ended |
Dec. 31, 2022 | |
Offsetting [Abstract] | |
BALANCE SHEET NETTING | BALANCE SHEET NETTING 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 certain counterparties financial instruments and cash collateral against derivative financial instruments, warehouse and other lines of credit, or debt obligations. Cash collateral is held in margin accounts and included in restricted cash on the Company's 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. In circumstances where right of set off criteria is met, the related asset and liability are presented in a net position on the consolidated balance sheets. Warehouse and other lines of credit and secured debt obligations were secured by financial instruments and cash collateral with fair values that exceeded the liability amount recorded on the consolidated balance sheets as of December 31, 2022 and 2021, respectively. Refer to Note 12 – Warehouse and Other Lines of Credit for further details on cash collateral requirements. December 31, 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 $ 39,386 $ 32,710 $ 6,676 $ — $ — $ 6,676 MBS put options 3,361 — 3,361 — — 3,361 Total assets $ 42,747 $ 32,710 $ 10,037 $ — $ — $ 10,037 Liabilities: Forward sale contracts $ 76,192 $ 32,710 $ 43,482 $ — $ (36,270) $ 7,212 Put options on treasuries 10,831 — 10,831 — (10,831) — Interest rate swap futures 7,395 — 7,395 — (7,395) — Warehouse and other lines of credit 2,146,602 — 2,146,602 (2,146,602) — — Secured debt obligations (1) 1,298,853 — 1,298,853 (1,298,853) — — Total liabilities $ 3,539,873 $ 32,710 $ 3,507,163 $ (3,445,455) $ (54,496) $ 7,212 (1) Secured debt obligations as of December 31, 2022 included secured credit facilities and Term Notes. December 31, 2021 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 $ 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 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 VA
LOANS HELD FOR SALE, AT FAIR VALUE | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021: December 31, 2022 2021 Amount % Amount % Conforming - fixed $ 1,441,497 59 % $ 4,881,222 61 % Conforming - ARM 52,513 2 351,408 4 Government - fixed 815,921 34 1,156,890 15 Government - ARM 17,788 1 10,906 — Other - residential mortgage loans 101,137 4 1,576,858 20 Consumer loans 1,774 — 1,942 — Total 2,430,630 100 % 7,979,226 100 % Fair value adjustment (57,203) 157,591 Loans held for sale, at fair value $ 2,373,427 $ 8,136,817 A summary of the changes in the balance of loans held for sale is as follows: Year Ended December 31, 2022 2021 Balance at beginning of period $ 8,136,817 $ 6,955,424 Origination and purchase of loans 53,094,767 136,606,028 Sales (59,174,022) (136,081,060) Repurchases 633,298 944,023 Principal payments (132,322) (182,883) Fair value loss (185,111) (104,715) Balance at end of period $ 2,373,427 $ 8,136,817 Gain on origination and sale of loans, net is comprised of the following components: Year Ended December 31, 2022 2021 2020 (Discount) premium from loan sales $ (933,547) $ 1,882,557 $ 3,178,213 Servicing rights additions 647,716 1,610,596 986,050 Unrealized (losses) gains from derivative assets and liabilities (134,519) (308,200) 288,325 Realized gains (losses) from derivative assets and liabilities 1,215,013 347,014 (557,996) Discount points, rebates and lender paid costs 275,981 (206,716) (148,518) Fair value (loss) gain on loans held for sale (185,111) (104,715) 185,885 Provision for loan loss obligation for loans sold (136,993) (7,185) (25,973) Total gain on origination and sale of loans, net $ 748,540 $ 3,213,351 $ 3,905,986 The Company had $24.8 million and $28.8 million of loans held for sale on non-accrual status as of December 31, 2022 and 2021, respectively. |
SERVICING RIGHTS, AT FAIR VALUE
SERVICING RIGHTS, AT FAIR VALUE | 12 Months Ended |
Dec. 31, 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: December 31, 2022 2021 Conventional $ 104,074,252 $ 127,270,097 Government 37,096,679 34,842,868 Total servicing portfolio $ 141,170,931 $ 162,112,965 A summary of the unpaid principal balance underlying servicing rights is as follows: December 31, 2022 2021 Current loans $ 139,295,226 $ 160,302,966 Loans 30 - 89 days delinquent 703,285 504,467 Loans 90 or more days delinquent or in foreclosure 1,172,420 1,305,532 Total servicing portfolio (1) $ 141,170,931 $ 162,112,965 (1) At December 31, 2022 and 2021, 0.2% 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: Year Ended December 31, 2022 2021 2020 Balance at beginning of period $ 1,999,402 $ 1,124,302 $ 444,443 Servicing rights additions 647,716 1,610,596 986,050 Sales proceeds, net (754,597) (382,271) (9,881) Changes in fair value: Due to changes in valuation inputs or assumptions 363,064 68,399 (95,764) Due to collection/realization of cash flows (230,449) (421,624) (200,546) Balance at end of period $ 2,025,136 $ 1,999,402 $ 1,124,302 The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations: Year Ended December 31, 2022 2021 2020 Contractual servicing fees $ 423,528 $ 382,501 $ 174,532 Late, ancillary and other fees 25,622 11,179 11,363 Servicing fee income $ 449,150 $ 393,680 $ 185,895 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: Year Ended December 31, 2022 2021 2020 Changes in fair value: Due to changes in valuation inputs or assumptions $ 363,064 $ 68,399 $ (95,764) Due to collection/realization of cash flows (230,449) (421,624) (200,546) Realized losses on sales of servicing rights (3,663) (9,759) (2,701) Net (loss) gain from derivatives hedging servicing rights (323,309) (82,878) 154,663 Changes in fair value of servicing rights, net $ (194,357) $ (445,862) $ (144,348) 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. December 31, 2022 2021 Fair Value of Servicing Rights, net $ 2,025,136 $ 1,999,402 Change in Fair Value from adverse changes: Discount Rate: Increase 1% (81,431) (85,066) Increase 2% (157,281) (163,255) Cost of Servicing: Increase 10% (19,017) (20,843) Increase 20% (38,127) (41,727) Prepayment Speed: Increase 10% (18,863) (76,532) Increase 20% (37,546) (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 | 12 Months Ended |
Dec. 31, 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. The following summarizes the Company’s outstanding derivative instruments: Fair Value Notional Balance Sheet Location Asset Liability December 31, 2022: Interest rate lock commitments $ 1,591,807 Derivative asset, at fair value $ 29,374 Interest rate lock commitments 622,706 Derivative liabilities, at fair value — 5,784 Forward sale contracts 309,809 Derivative asset, at fair value 6,676 — Forward sale contracts 2,963,685 Derivative liabilities, at fair value — 43,482 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 8,050 Derivative liabilities, at fair value — 10,831 MBS put options 400,000 Derivative asset, at fair value 3,361 — MBS put options — Derivative liabilities, at fair value — — Interest rate swap futures — Derivative asset, at fair value — — Interest rate swap futures 211 Derivative liabilities, at fair value — 7,395 Total derivative financial instruments $ 39,411 $ 67,492 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 were included: Year Ended December 31, Derivative instrument Statements of Operations Location 2022 2021 2020 Interest rate lock commitments, net Gain on origination and sale of loans, net $ (157,030) $ (466,425) $ 518,837 Forward sale contracts Gain on origination and sale of loans, net 1,195,708 540,811 (748,245) Interest rate swap futures Gain on origination and sale of loans, net (81,259) (111,300) (13,151) Put options Gain on origination and sale of loans, net 123,075 75,728 (27,112) Forward sale contracts Change in fair value of servicing rights, net (114,244) (89,127) 140,173 Interest rate swap futures Change in fair value of servicing rights, net (201,259) 9,071 16,708 Put options Change in fair value of servicing rights, net (7,806) (2,822) (2,218) Total realized and unrealized losses on derivative financial instruments $ 757,185 $ (44,064) $ (115,008) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 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, 2020 $ 40,736 $ 2,090 $ 42,826 Amortization — (509) (509) Balance December 31, 2021 $ 40,736 $ 1,581 $ 42,317 Amortization — (205) (205) Impairment loss (40,736) (1,376) (42,112) Balance, December 31, 2022 $ — $ — $ — 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 second quarter of 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. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2022, 2021 and 2020. 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 issue beneficial interests that 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 also holds certain conditional repurchase options specific to these securitizations that allow it to repurchase assets from the securitization entity. 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 redeem outstanding classes of issued notes after a set time period has elapsed. 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, preparing and furnishing statements, and loss mitigation efforts including repossession and sale of collateral. 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 consolidated securitization and SPE VIEs. December 31, December 31, Assets Loans held for sale, at fair value $ 497,574 $ 2,557,490 Restricted cash 6,735 100,494 Servicing rights, at fair value 544,729 400,678 Prepaid expenses and other assets 54,887 17,756 Total $ 1,103,925 $ 3,076,418 Liabilities Warehouse and other lines of credit $ 500,000 $ 2,600,000 Debt obligations, net: MSR Facilities 116,874 15,000 Servicing advance facilities 48,484 15,070 Term notes 199,666 199,133 Total $ 865,024 $ 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. December 31, 2022 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 94,243 $ — $ 94,243 $ 2,309,739 Investments in joint ventures 20,410 — 20,410 38,682 Total $ 114,653 $ — $ 114,653 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 Total $ 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 statements of operations. As of December 31, 2022, the remaining principal balance of loans transferred to these securitization trusts was $2.3 billion of which $4.9 million was 90 days or more past due. Investments in joint ventures |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | ACCOUNTS RECEIVABLE, NET Accounts receivable, net consists of the following: December 31, 2022 2021 Margin call receivable $ 36,270 $ 1,740 Servicing sales, net 27,021 19,134 Servicing 24,917 6,527 Joint ventures 15,843 2,160 Loan sales 10,733 7,551 Servicing advance facilities 9,278 — Loan principal and interest 4,502 5,835 Loan origination 3,623 6,131 Settlement services 1,374 6,293 Other 11,718 812 Total accounts receivable, net $ 145,279 $ 56,183 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: December 31, 2022 2021 Furniture and equipment $ 93,818 $ 146,456 Computer software 6,837 20,254 Software development 147,424 88,822 Leasehold improvements 29,150 44,706 Work in progress 12,929 40,565 Property and equipment 290,158 340,803 Accumulated depreciation and amortization (197,269) (236,541) Property and equipment, net $ 92,889 $ 104,262 The Company recorded $42.0 million, $35.0 million and $35.2 million of depreciation and amortization expense related to property and equipment for the years ended December 31, 2022, 2021 and 2020, respectively. During the year ended December 31, 2022, impairment charges of $12.6 million were recorded for losses on fixed assets related to leases that were exited during the year. The impairment charges are included in general and administrative expense on the consolidated statements of operations. Capitalized computer software development costs consist of the following: December 31, 2022 2021 Cost $ 147,424 $ 88,822 Accumulated amortization (95,777) (76,495) Software development, net $ 51,647 $ 12,327 The Company recorded $20.4 million, $11.5 million and $11.5 million of amortization expense related to software development for the years ended December 31, 2022, 2021 and 2020, respectively. Future computer software development amortization for the remaining years: Year ending December 31, 2023 $ 24,061 2024 19,411 2025 8,175 Total $ 51,647 |
WAREHOUSE AND OTHER LINES OF CR
WAREHOUSE AND OTHER LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
WAREHOUSE AND OTHER LINES OF CREDIT | WAREHOUSE AND OTHER LINES OF CREDIT At December 31, 2022, the Company was a party to 9 revolving lines of credit with lenders providing $4.1 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 SOFR, or other alternative base rate, 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 December 31, 2022, the interest rate was comprised of the applicable base rate plus a spread ranging from 1.37% 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. As of December 31, 2022 there was one securitization facility with an original three Certain lenders require the Company to maintain cash accounts with minimum required balances. As of December 31, 2022 and 2021, the Company had posted a total of $11.0 million and $122.5 million restricted cash as collateral with our warehouse lenders and securitization facilities of which $4.3 million and $8.0 million were the minimum required balances. Under the terms of these warehouse lines, the Company is required to maintain various financial and other covenants. As of December 31, 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 and a class of owner trust certificates through a securitization facility (“2020-1 Securitization Facility”) backed by a revolving warehouse line of credit. The 2020-1 Securitization Facility was 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 accrued interest at 30-day LIBOR plus a margin. 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 and a class of owner trust certificates through an additional securitization facility (“2020-2 Securitization Facility”) backed by a revolving warehouse line of credit. The 2020-2 Securitization Facility was 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 accrued interest at 30-day LIBOR plus a margin. In August 2022, the Company exercised its right to optional prepayment in full and terminated 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 was secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans 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 accrued interest at 30-day LIBOR plus a margin. In September 2022, the Company exercised its right to optional prepayment in full and terminated the 2021-1 Securitization Facility. 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 was secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans 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 accrued interest at 30-day LIBOR, plus a margin. In September 2022, the Company exercised its right to optional prepayment in full and terminated the 2021-2 Securitization Facility. 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 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 The following table presents information on warehouse and other lines of credit and the outstanding balance as of December 31, 2022 and 2021: Outstanding Balance Committed Uncommitted Total Expiration December 31, December 31, Facility 1 (1) $ 400,000 $ 350,000 $ 750,000 10/26/2023 $ 382,098 $ 851,088 Facility 2 (2) — 300,000 300,000 9/25/2023 236,144 295,743 Facility 3 — 300,000 300,000 4/18/2023 177,900 459,018 Facility 4 — 300,000 300,000 12/28/2023 202,548 266,230 Facility 5 (2) — 200,000 200,000 N/A — 391 Facility 6 (2) 100,000 500,000 600,000 9/29/2023 180,273 583,449 Facility 7 (3) 400,000 400,000 800,000 5/5/2023 295,064 1,410,367 Facility 8 (9) — — — N/A — 361,783 Facility 9 (4)(5) — — — 10/25/2022 — 600,000 Facility 10 (4)(7) — — — 12/17/2023 — 500,000 Facility 11 (2)(6) — — — 9/23/2022 — 263,516 Facility 12 (4)(8) — — — 2/2/2024 — 500,000 Facility 13 (4)(8) — — — 4/23/2024 — 500,000 Facility 14 — 300,000 300,000 9/21/2023 172,575 365,614 Facility 15 (4) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 1,400,000 $ 2,650,000 $ 4,050,000 $ 2,146,602 $ 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 $116.9 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. (7) This facility was prepaid and terminated in August 2022. (8) This facility was prepaid and terminated in September 2022. (9) This facility was prepaid and terminated in November 2022. The following table presents certain information on warehouse and other lines of credit: Year Ended December 31, 2022 2021 2020 Maximum outstanding balance during the period $ 7,672,559 $ 9,180,276 $ 7,037,828 Average balance outstanding during the period 4,127,822 8,149,855 3,974,625 Collateral pledged (loans held for sale) 2,214,656 7,815,347 6,752,909 Weighted average interest rate during the period 2.97 % 2.21 % 2.54 % The following table presents the outstanding debt as of December 31, 2022 and 2021: December 31, 2022 2021 Secured debt obligations, net: Secured credit facilities: MSR facilities $ 963,834 $ 262,250 Securities financing facilities 85,513 66,439 Servicing advance facilities 48,484 15,070 Total secured credit facilities 1,097,831 343,759 Term Notes 199,666 199,133 Total secured debt obligations, net 1,297,497 542,892 Unsecured debt obligations, net: Senior Notes 991,822 1,085,316 Total debt obligations, net $ 2,289,319 $ 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 relating to certain profitability covenants. As a result, the Company was in compliance with all such financial covenants as of December 31, 2022. Secured Credit Facilities Secured credit facilities are 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 $283.2 million as of December 31, 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 December 31, 2022, there was $200.0 million outstanding on this facility with a maturity of June 2023. At December 31, 2022, capacity under the facility was $200.0 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 $522.8 million as of December 31, 2022. The facility bears interest at SOFR, plus a margin per annum and matures in December 2023. At December 31, 2022, there was $300.0 million outstanding on this facility and $0.5 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 $626.8 million as of December 31, 2022. The facility bears interest at SOFR, plus a margin per annum and matures in January 2025. At December 31, 2022, there was $348.0 million outstanding on this facility and $0.5 million in unamortized deferred financing costs. In August 2017, the Company established the GMSR Trust to finance Ginnie Mae mortgage servicing rights owned by the Company through issuance of either variable funding notes or term notes, in each case secured by participation certificates held by the GMSR Trust. As of December 31, 2022, the Company had pledged participation certificates representing beneficial interests in Ginnie Mae mortgage servicing rights to the GMSR Trust with a fair value of $544.7 million. At December 31, 2022 the maximum borrowing capacity of the variable funding notes was $200.0 million. The variable funding notes bear interest at SOFR plus a margin per annum and mature in May 2023. As of December 31, 2022, there were $116.9 million in variable funding notes outstanding to finance Ginnie Mae mortgage servicing rights owned by the Company. Securities Financing Facilities The Company has entered into master repurchase agreements to finance retained interest securities related to its securitizations. Each of the securities financing facilities has a 90 day term and accrues interest at a rate of 90-day SOFR, plus a margin. The securities financing facilities have an advance rate between 50% and 90% based on classes of the securities and are secured by trading securities which represent our retained interests in the credit risk of the assets collateralizing certain securitization transactions. As of December 31, 2022, the trading securities had a fair value of $94.2 million on the consolidated balance sheets and there were $85.5 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 $100.0 million in variable funding notes (the “2020-VF1 Notes”). The 2020-VF1 Notes accrue interest at SOFR, plus a margin per annum and mature in September 2023 (unless earlier redeemed in accordance with their terms). At December 31, 2022, there was $22.7 million in 2020-VF1 Notes outstanding. In November 2021, the Company, through the GMSR Trust issued variable funding notes secured by principal and interest advance receivables and servicing advance receivables with respect to residential mortgage loans serviced on behalf of Ginnie Mae. The variable funding notes bear interest at SOFR plus a margin per annum and mature in May 2023. As of December 31, 2022, there was $25.8 million outstanding on the variable funding notes. Term Notes In October 2018, the Company, through the GMSR Trust issued the Series 2018-GT1 Term Notes (“Term Notes”). The Term Notes accrue interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum and mature in October 2023 or, if extended pursuant to the terms of the related indenture supplement, October 2025 (unless earlier redeemed in accordance with their terms). At December 31, 2022, there was $200.0 million in Term Notes outstanding and $0.3 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. The Company may redeem the 2025 Senior Notes, in whole or in part, at various redemption prices. At December 31, 2022, there was $500.0 million in 2025 Senior Notes outstanding and $5.1 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. 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. 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. At December 31, 2022, there was $502.5 million in 2028 Senior Notes outstanding and $5.6 million in unamortized deferred financing costs. Interest Expense |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | WAREHOUSE AND OTHER LINES OF CREDIT At December 31, 2022, the Company was a party to 9 revolving lines of credit with lenders providing $4.1 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 SOFR, or other alternative base rate, 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 December 31, 2022, the interest rate was comprised of the applicable base rate plus a spread ranging from 1.37% 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. As of December 31, 2022 there was one securitization facility with an original three Certain lenders require the Company to maintain cash accounts with minimum required balances. As of December 31, 2022 and 2021, the Company had posted a total of $11.0 million and $122.5 million restricted cash as collateral with our warehouse lenders and securitization facilities of which $4.3 million and $8.0 million were the minimum required balances. Under the terms of these warehouse lines, the Company is required to maintain various financial and other covenants. As of December 31, 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 and a class of owner trust certificates through a securitization facility (“2020-1 Securitization Facility”) backed by a revolving warehouse line of credit. The 2020-1 Securitization Facility was 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 accrued interest at 30-day LIBOR plus a margin. 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 and a class of owner trust certificates through an additional securitization facility (“2020-2 Securitization Facility”) backed by a revolving warehouse line of credit. The 2020-2 Securitization Facility was 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 accrued interest at 30-day LIBOR plus a margin. In August 2022, the Company exercised its right to optional prepayment in full and terminated 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 was secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans 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 accrued interest at 30-day LIBOR plus a margin. In September 2022, the Company exercised its right to optional prepayment in full and terminated the 2021-1 Securitization Facility. 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 was secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans 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 accrued interest at 30-day LIBOR, plus a margin. In September 2022, the Company exercised its right to optional prepayment in full and terminated the 2021-2 Securitization Facility. 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 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 The following table presents information on warehouse and other lines of credit and the outstanding balance as of December 31, 2022 and 2021: Outstanding Balance Committed Uncommitted Total Expiration December 31, December 31, Facility 1 (1) $ 400,000 $ 350,000 $ 750,000 10/26/2023 $ 382,098 $ 851,088 Facility 2 (2) — 300,000 300,000 9/25/2023 236,144 295,743 Facility 3 — 300,000 300,000 4/18/2023 177,900 459,018 Facility 4 — 300,000 300,000 12/28/2023 202,548 266,230 Facility 5 (2) — 200,000 200,000 N/A — 391 Facility 6 (2) 100,000 500,000 600,000 9/29/2023 180,273 583,449 Facility 7 (3) 400,000 400,000 800,000 5/5/2023 295,064 1,410,367 Facility 8 (9) — — — N/A — 361,783 Facility 9 (4)(5) — — — 10/25/2022 — 600,000 Facility 10 (4)(7) — — — 12/17/2023 — 500,000 Facility 11 (2)(6) — — — 9/23/2022 — 263,516 Facility 12 (4)(8) — — — 2/2/2024 — 500,000 Facility 13 (4)(8) — — — 4/23/2024 — 500,000 Facility 14 — 300,000 300,000 9/21/2023 172,575 365,614 Facility 15 (4) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 1,400,000 $ 2,650,000 $ 4,050,000 $ 2,146,602 $ 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 $116.9 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. (7) This facility was prepaid and terminated in August 2022. (8) This facility was prepaid and terminated in September 2022. (9) This facility was prepaid and terminated in November 2022. The following table presents certain information on warehouse and other lines of credit: Year Ended December 31, 2022 2021 2020 Maximum outstanding balance during the period $ 7,672,559 $ 9,180,276 $ 7,037,828 Average balance outstanding during the period 4,127,822 8,149,855 3,974,625 Collateral pledged (loans held for sale) 2,214,656 7,815,347 6,752,909 Weighted average interest rate during the period 2.97 % 2.21 % 2.54 % The following table presents the outstanding debt as of December 31, 2022 and 2021: December 31, 2022 2021 Secured debt obligations, net: Secured credit facilities: MSR facilities $ 963,834 $ 262,250 Securities financing facilities 85,513 66,439 Servicing advance facilities 48,484 15,070 Total secured credit facilities 1,097,831 343,759 Term Notes 199,666 199,133 Total secured debt obligations, net 1,297,497 542,892 Unsecured debt obligations, net: Senior Notes 991,822 1,085,316 Total debt obligations, net $ 2,289,319 $ 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 relating to certain profitability covenants. As a result, the Company was in compliance with all such financial covenants as of December 31, 2022. Secured Credit Facilities Secured credit facilities are 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 $283.2 million as of December 31, 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 December 31, 2022, there was $200.0 million outstanding on this facility with a maturity of June 2023. At December 31, 2022, capacity under the facility was $200.0 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 $522.8 million as of December 31, 2022. The facility bears interest at SOFR, plus a margin per annum and matures in December 2023. At December 31, 2022, there was $300.0 million outstanding on this facility and $0.5 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 $626.8 million as of December 31, 2022. The facility bears interest at SOFR, plus a margin per annum and matures in January 2025. At December 31, 2022, there was $348.0 million outstanding on this facility and $0.5 million in unamortized deferred financing costs. In August 2017, the Company established the GMSR Trust to finance Ginnie Mae mortgage servicing rights owned by the Company through issuance of either variable funding notes or term notes, in each case secured by participation certificates held by the GMSR Trust. As of December 31, 2022, the Company had pledged participation certificates representing beneficial interests in Ginnie Mae mortgage servicing rights to the GMSR Trust with a fair value of $544.7 million. At December 31, 2022 the maximum borrowing capacity of the variable funding notes was $200.0 million. The variable funding notes bear interest at SOFR plus a margin per annum and mature in May 2023. As of December 31, 2022, there were $116.9 million in variable funding notes outstanding to finance Ginnie Mae mortgage servicing rights owned by the Company. Securities Financing Facilities The Company has entered into master repurchase agreements to finance retained interest securities related to its securitizations. Each of the securities financing facilities has a 90 day term and accrues interest at a rate of 90-day SOFR, plus a margin. The securities financing facilities have an advance rate between 50% and 90% based on classes of the securities and are secured by trading securities which represent our retained interests in the credit risk of the assets collateralizing certain securitization transactions. As of December 31, 2022, the trading securities had a fair value of $94.2 million on the consolidated balance sheets and there were $85.5 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 $100.0 million in variable funding notes (the “2020-VF1 Notes”). The 2020-VF1 Notes accrue interest at SOFR, plus a margin per annum and mature in September 2023 (unless earlier redeemed in accordance with their terms). At December 31, 2022, there was $22.7 million in 2020-VF1 Notes outstanding. In November 2021, the Company, through the GMSR Trust issued variable funding notes secured by principal and interest advance receivables and servicing advance receivables with respect to residential mortgage loans serviced on behalf of Ginnie Mae. The variable funding notes bear interest at SOFR plus a margin per annum and mature in May 2023. As of December 31, 2022, there was $25.8 million outstanding on the variable funding notes. Term Notes In October 2018, the Company, through the GMSR Trust issued the Series 2018-GT1 Term Notes (“Term Notes”). The Term Notes accrue interest at 30-day LIBOR, or other alternative base rate such as SOFR, plus a margin per annum and mature in October 2023 or, if extended pursuant to the terms of the related indenture supplement, October 2025 (unless earlier redeemed in accordance with their terms). At December 31, 2022, there was $200.0 million in Term Notes outstanding and $0.3 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. The Company may redeem the 2025 Senior Notes, in whole or in part, at various redemption prices. At December 31, 2022, there was $500.0 million in 2025 Senior Notes outstanding and $5.1 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. 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. 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. At December 31, 2022, there was $502.5 million in 2028 Senior Notes outstanding and $5.6 million in unamortized deferred financing costs. Interest Expense |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following: December 31, 2022 2021 Accounts payable $ 139,714 $ 136,619 Deferred tax liability 122,404 193,020 Loan loss obligation for sold loans 70,797 29,877 Accrued compensation and benefits 52,759 154,154 TRA liability 50,730 32,865 Joint ventures 25,619 — Servicing rights, at fair value 12,311 7,310 Dividends and dividend equivalents payable 7,130 38,057 Accrued pricing adjustments on sold loans 3,167 12,336 Income tax payable — 12,821 Other 4,065 7,385 Total accounts payable, accrued expenses and other liabilities $ 488,696 $ 624,444 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table details the Company’s provision for income taxes: Year Ended December 31, 2022 2021 2020 Current Federal $ (162) $ 8,936 $ 1,745 State 846 3,120 581 Total current 684 12,056 2,326 Deferred Federal (66,624) 26,623 (82) State (13,652) 4,692 4 Total deferred (80,276) 31,315 (78) Total (benefit) provision for income taxes $ (79,592) $ 43,371 $ 2,248 The following table is a reconciliation of the estimated provision for income taxes at statutory rates to the provision for income taxes at the Company’s effective tax rate: Year Ended December 31, 2022 2021 2020 Federal income tax at statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes (net of federal benefit) 3.0 0.9 — Non-controlling interests (10.3) (16.2) (20.9) Goodwill impairment (0.6) — — State rate change (1.5) — — Change in valuation allowance (0.1) — — Other, net — 0.8 — Effective income tax rate 11.5 % 6.5 % 0.1 % The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to income passed through to noncontrolling interests. Prior to the IPO, income taxes for LD Holdings at the consolidated level were primarily federal, state, and local taxes for ACT, a C Corporation. Subsequent to 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. Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: December 31, 2022 2021 Deferred tax assets: Accrued compensation $ 41 $ — Net operating loss 70,010 — Tax credits 447 — Depreciation 7 — State taxes — 437 Gross deferred tax assets before valuation allowance 70,505 437 Valuation allowance (386) — Net deferred tax assets 70,119 437 Deferred tax liabilities: Outside basis difference 191,437 193,353 Acquired intangible assets 145 — Total deferred tax liabilities 191,582 193,353 Net deferred tax liabilities $ (121,463) $ (192,916) 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 December 31, 2022 relates to temporary outside basis 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 the TRA as a result of the offering transaction. 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 December 31, 2022 and 2021 using the combined federal and state rate (less federal benefit) of 27.4% and 26.0%, respectively. 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. In determining the need for a valuation allowance, the Company considered all negative and positive evidence. As of December 31, 2022, the Company established a valuation allowance on tax credits that have a limited carryforward period and may expire prior to the Company being able to utilize them. The Company did not establish a valuation allowance for the remaining 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. Uncertain tax positions relate to various federal and state income tax matters. The income tax returns for 2018-2022 are subject to examination by the relevant taxing authorities. There was no interest or penalties related to uncertain tax positions for the years ended December 31, 2022, 2021, and 2020, respectively. A reconciliation of the beginning and ending amount of uncertain tax positions is as follows: Year Ended December 31, 2022 2021 2020 Beginning balance $ 654 $ — $ 282 Increases related to positions taken during prior years 540 — Increases related to positions taken during the current year 114 — Decreases due to a lapse of applicable statute of limitations (157) — (282) Ending balance $ 497 $ 654 $ — TRA Liability |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company entered into operating leases related to its corporate headquarters and support, sales, and processing offices which expire at various dates through 2028. The Company’s operating lease agreements have remaining terms ranging from less than one year to six years. Certain of these operating lease agreements include options to extend the original term. The Company’s operating lease agreements do not require the Company to make variable lease payments. Year Ended December 31, 2022 2021 2020 Lease expense: Operating leases $ 24,961 $ 28,322 $ 30,350 Short-term leases 2,373 747 688 Sublease income (187) (1,049) (1,518) Lease expense, net included in occupancy expense $ 27,147 $ 28,020 $ 29,520 Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 31,350 $ 31,377 Right-of-use assets obtained in exchange for lease obligations: New leases entered into during the year 16,922 11,826 December 31, December 31, 2021 Period-end: Operating leases: Weighted average remaining lease term (years) 3.6 3.8 Weighted average discount rate 5.7 % 7.0 % The following is a schedule of future minimum lease payments for operating leases with initial terms in excess of one year as of December 31, 2022: Year ending December 31, 2023 $ 23,576 2024 18,313 2025 11,582 2026 7,146 2027 6,287 Thereafter 2,242 Total operating lease payments 69,146 Less: Imputed interest (7,471) Operating lease liability $ 61,675 During the year ended December 31, 2022, impairment charges of $16.1 million were recorded for leases exited during the year. The impairment charges are included in general and administrative expense on the consolidated statements of operations. As of December 31, 2022, the Company had four operating leases that had not yet commenced with aggregate undiscounted required payments of $6.1 million. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSIn 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 of loan processing and administrative services (legal, accounting, human resources, data processing and management information, assignment processing, post-closing, underwriting, facilities management, quality control, management consulting, risk management, promotions, public relations, advertising and compliance with credit agreements). The Company also originates eligible mortgage loans referred by its joint ventures for which the Company pays the joint ventures a broker fee. Fees earned, costs incurred, and receivables from joint ventures were as follows: Year Ended December 31, 2022 2021 2020 Loan processing and administrative services fee income $ 18,534 $ 15,023 $ 14,483 Loan origination broker fees expense 120,392 90,266 80,636 December 31, 2022 2021 Amounts (payable to) receivable from joint ventures $ (9,776) $ 1,855 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
EQUITY | EQUITY 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 $488.0 million and $1.1 billion as of December 31, 2022 and 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 December 31, 2022. Holding Member Interests: Holdco Units Ownership Percentage loanDepot, Inc. 169,523,682 53.78% Continuing LLC Members 145,693,119 46.22% Total 315,216,801 100.00% |
COMPENSATION PLANS
COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
COMPENSATION PLANS | COMPENSATION PLANS Stock -Based Compensation The Company’s 2021 Plan and 2022 Plan provide for the grant of incentive and non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights of the Company’s Class A common stock. Options to purchase shares of the Company’s Class A common stock generally vest over predetermined periods and expire ten years after the date of grant. Service-based restricted stock units of the Company’s Class A common stock generally vest over predetermined periods, typically four two five The Company also has an ESPP Plan which allows eligible employees to purchase shares of the Company's Class A common stock at 85% of the lower of the fair market value on the effective date of the subscription or the date of purchase. Under the ESPP, employees can authorize the Company to withhold up to 10% of their compensation for common stock purchases, subject to certain limitations. The ESPP is available to all active employees of the Company. The ESPP for employees is qualified under Section 423 of the Internal Revenue Code. As of December 31, 2022, the number of shares of Class A common stock authorized for issuance under the ESPP was two million shares. Prior to the IPO, the Company’s 2009 Incentive Equity Plan, 2012 Incentive Equity Plan, and 2015 Incentive Equity Plan (collectively, the “Plans”) provided for the granting of Class Z, Class Y, Class X, and Class W Common Units of LD Holdings to employees, managers, consultants, and advisors of the Company and its subsidiaries. Participants that received grants or purchased Class Z, Class Y, Class X, or Class W Common Units of LD Holdings pursuant to the Plans were required to become a party to the Limited Liability Company Agreement. As part of the IPO and reorganization any outstanding units were equitably adjusted and replaced with a single new class of LLC Units that were exchanged on a one-for-one basis for Holdco Units. No further awards will be granted under the Plans as both the Plans and LLC Agreement were terminated. The stock-based compensation expense recognized on all share-based awards was $20.6 million, $67.1 million, and $8.5 million, for the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, there was $68.1 million of unrecognized compensation related to all unvested stock options, restricted stock units, and employee stock purchase subscriptions which will be amortized over the weighted-average remaining requisite service period of 2.37 years. The fair value of each option and ESPP subscription is estimated on the date of grant using the Black-Scholes option valuation model. The risk-free interest rate is estimated using term commensurate United States Treasury yields. The expected life of option awards is estimated from the vesting period. Since the Company does not have an extended history of actual exercises, the Company has estimated the expected life using a simplified method which calculates the expected term as the average of the time-to-vesting and the contractual life of the awards. The expected volatility was based on the historical and implied volatility of a public peer group of Companies’ stock price and options in the most recent period that was equal to, as available, the expected term of the unit grants that were being valued. The Black-Scholes option pricing model was used with the following weighted-average assumptions for options granted in 2022. There were no options granted prior to 2022. For the year ended December 31, 2022 Average risk-free interest rate 3.69% Expected dividend yield N/A Expected volatility 70% Expected life 5.61 years Fair value per share $1.10 The Black-Scholes option pricing model was used with the following weighted-average assumptions for ESPP subscriptions in 2022. For the year ended December 31, 2022 Average risk-free interest rate 3.77% Expected dividend yield N/A Expected volatility 70% Expected life 0.50 years Fair value per share $1.60 The fair value of market-based restricted stock units was determined using a Monte Carlo simulation model, which uses multiple input variables to determine the probability of satisfying the market condition requirements. The following weighted-average assumptions were used to determine the fair value of market-based restricted stock units in 2022. There were no market-based restricted stock units granted prior to 2022. For the year ended December 31, 2022 Average risk-free interest rate 3.2% Expected volatility 70% Stock option activity during the year ended December 31, 2022 under the 2022 Plan and 2021 Plan was as follows: Shares Weighted Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 31, 2021 — $ — — $ — Granted 7,000,000 $ 1.73 Outstanding as of December 31, 2022 7,000,000 $ 1.73 5.6 years $ 480 Exercisable as of December 31, 2022 — — — — Vested and Expected to Vest as of December 31, 2022 7,000,000 $ 1.73 5.6 years $ 480 The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. Restricted stock unit activity during the year ended December 31, 2022 under the 2022 Plan and 2021 Plan was as follows: Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2021 1,765,763 $ 16.60 Granted 24,841,607 2.78 Vested (1,126,808) 7.36 Forfeited/Cancelled (376,962) 10.85 Unvested as of December 31, 2022 25,103,600 3.43 Restricted stock unit activity during the year ended December 31, 2022 for Holdco Units was as follows: Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2021 11,610,142 $ 0.50 Vested (4,258,580) 0.49 Forfeited/Cancelled (1,607,362) 0.50 Unvested as of December 31, 2022 5,744,200 0.50 401(k) Plan The Company’s employees are eligible to participate in a defined contribution plan (“401(k) Plan”). Effective October 2022, the Company temporarily suspended the 401(k) match. Prior to October 2022, the Company matched 50% of participant contributions up to 6% of each participant’s total eligible gross compensation. Matching contributions totaled approximately $12.9 million, $25.4 million and $18.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS 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 year ended December 31, 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 December 31, 2022 and 2021. The following table sets forth the calculation of basic and diluted earnings per share for the period following the reorganization and IPO for Class A common stock and Class D common stock: Year Ended December 31, 2022 December 31, 2021 Class A Class D Total Class A Class D Total Net (loss) earnings attributable to loanDepot, Inc. $ (103,026) $ (169,994) $ (273,020) $ 13,998 $ 99,526 $ 113,524 Weighted average shares - basic 58,879,239 97,151,111 156,030,350 16,029,314 113,969,580 129,998,894 (Loss) earnings per share - basic $ (1.75) $ (1.75) $ (1.75) $ 0.87 $ 0.87 $ 0.87 Diluted earnings per share: Net (loss) income allocated to common stockholders - diluted (103,026) (169,994) (273,020) 13,998 99,526 113,524 Weighted average shares - diluted 58,879,239 97,151,111 156,030,350 16,029,314 113,969,580 129,998,894 (Loss) earnings per share - diluted $ (1.75) $ (1.75) $ (1.75) $ 0.87 $ 0.87 $ 0.87 For the year ended December 31, 2022, 163,541,101 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 year ended December 31, 2022, 14,278,795 of Class A RSUs, nonqualified stock options, and ESPP shares were determined to be anti-dilutive, and thus excluded from the computation of diluted loss per share. For the period from February 11, 2021 to December 31, 2021, 192,465,222 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 December 31, 2021, 1,192,211 of Class A RSUs were determined to be anti-dilutive, and thus excluded from the computation of diluted earnings per share. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 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 $5.1 million and $21.1 million at December 31, 2022 and 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 may be 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. Discovery in this matter is still ongoing. While the Company’s management does not believe these allegations have merit, defending such allegations has resulted in and will likely continue to 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 December 31, 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 December 31, 2022 and 2021 approximated $2.2 billion and $12.7 billion, respectively. These loan commitments are treated as derivatives and are carried at fair value, refer to Note 5- 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 years ended December 31, 2022, 2021 and 2020. The activity related to the loan loss obligation for sold loans is as follows: Year Ended December 31, 2022 2021 2020 Balance at beginning of period $ 29,877 $ 33,591 $ 17,677 Provision for loan loss obligations 136,993 7,185 25,973 Charge-offs (96,073) (10,899) (10,059) Balance at end of period $ 70,797 $ 29,877 $ 33,591 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 $1.1 million and $0.4 million as of December 31, 2022 and 2021, respectively TRA Liability The Company recognized a TRA liability of $50.7 million and $32.9 million as of December 31, 2022 and 2021, respectively, which represents the Company’s estimate of the aggregate amount that it will pay under the TRA as a result of the offering transaction. |
REGULATORY CAPITAL AND LIQUIDIT
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS | 12 Months Ended |
Dec. 31, 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 0.035% 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 $129.8 million as of December 31, 2022. The Company was in compliance with the net worth, liquidity and other financial requirements of its selling and servicing requirements as of December 31, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In relation to the recent closures of certain regional banks, LDLLC, an indirect subsidiary of the Company, transferred $225 million of corporate cash balances held at Signature Bridge Bank, N.A., operated by the FDIC (“Signature”), to a large money center bank on March 13, 2023. All of the Company’s cash and cash equivalents are now distributed across large money center banks. The Company still maintains fully insured custodial deposit accounts at Signature. The Company is also a party to a $300 million warehouse facility, in which Signature is a 50% participant, and has a $300 million mortgage servicing rights facility with Signature. Both of the facilities expire in December 2023. There are no acceleration rights under these facilities for a defaulting lender; therefore, the Company continues to have full access to these facilities under the terms and conditions set forth in the respective credit agreements. The Company does not expect any material adverse effect on its financial condition or operations, as a result of these events. The Company evaluated subsequent events through the date of issuance of the financial data included herein. Other than the event discussed above, there have been no subsequent events occurred during such period that would require disclosure in this report or would be required to be recognized in the consolidated financial statements as of December 31, 2022 . |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the FASB’s 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 VIE’s 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 |
Basis of Presentation | Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the FASB’s 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 VIE’s 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 |
Reclassification | 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. |
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. |
Reportable Segments | Reportable SegmentsThe Company’s organizational structure is currently comprised of one operating segment. This determination is based on the organizational structure, which reflects how the chief operating decision maker evaluates the performance of the business. The Company’s chief operating decision maker evaluates the performance of our business that comprise our one segment based on the measurement of income before income taxes. |
Fair Value | Fair Value Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (not in a forced transaction) between willing market participants at the measurement date. Financial instruments recorded at fair value on a recurring basis include the Company’s loans held for sale, derivative assets and derivative liabilities, servicing rights, and trading securities.. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of assets and liabilities measured at fair value within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2 - Prices determined or determinable using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company. These may include quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk and other inputs. • Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity), unobservable inputs may be used. Unobservable inputs reflect the Company's own assumptions about the factors that market participants would use in pricing the asset or liability, and are based on the best information available in the circumstances. The fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments not previously carried at fair value. The Company has elected the fair value option on loans held for sale (“LHFS”). Elections were made to mitigate income statement volatility caused by differences in the measurement basis of elected instruments with derivative financial instruments that are carried at fair value. The following are methods and assumptions used to measure the Company’s financial instruments recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. Loans held for sale, at fair value- Management has elected to account for loans held for sale at fair value, with changes in fair value recognized in current period income, to more timely reflect the Company's performance. LHFS are valued at the best execution value based on the underlying characteristics of the loan, which is either based off of the to be announced mortgage-backed securities (“TBA MBS”) prices market, or investor pricing, based on product, note rate and term, therefore LHFS are classified as Level 2. The most significant data inputs used in this valuation include, but are not limited to, loan type, underlying loan amount, note rate, loan program, and expected sale date of the loan. The valuations for LHFS are adjusted at the loan level to consider the servicing release premium and loan level pricing adjustments specific to each loan. Changes in the fair value of the LHFS are recorded in current earnings as a component of gain on origination and sale of loans, net. Loans eligible for repurchase - Loans eligible for repurchase represents certain mortgage loans sold pursuant to Government National Mortgage Association (“Ginnie Mae”) programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans as an asset with a corresponding repurchase liability in its consolidated balance sheets. These loans are government guaranteed. The carrying value of loans eligible for repurchase approximates the fair value. Servicing rights, at fair value - The Company uses a discounted cash flow approach to estimate the fair value of servicing rights. This approach consists of projecting servicing cash flows. The inputs used in the Company's discounted cash flow model are based on market factors, which management believes are consistent with assumptions and data used by market participants valuing similar servicing rights. The key inputs used in the valuation of servicing rights include mortgage prepayment speeds, discount rates, costs to service the loan, and other inputs such as projected and actual rates of delinquencies, recapture rate, defaults and liquidations, ancillary fee income, and amounts of future servicing advances. These inputs can, and generally do, change from period to period as market conditions change. Servicing rights are classified as Level 3 as considerable judgment is required to estimate the fair values and the exercise of such judgment can significantly affect the Company's income. Derivative assets and liabilities, at fair value - Derivative assets and liabilities at fair value include interest rate lock commitments (“IRLCs”), forward sales contracts, interest rate swap futures, and put options on treasuries. Changes in fair value of derivatives hedging IRLCs and loans held for sale at fair value are included in gain on origination and sale of loans, net on the consolidated statements of operations. Changes in fair value of derivatives hedging mortgage servicing rights (“MSRs”) are included in change in fair value of servicing rights, net on the consolidated statements of operations. Interest rate lock commitments- The Company enters into IRLCs with prospective borrowers, which are commitments to originate loans at a specified interest rate. The IRLCs are recorded as a component of derivative assets and liabilities on the consolidated balance sheets with changes in fair value being recorded in current earnings as a component of gain on origination and sale of loans, net. The Company estimates the fair value of the IRLCs based on quoted agency TBA MBS prices, its estimate of the fair value of the servicing rights it expects to receive in the sale of the loans, the probability that the mortgage loan will fund or be purchased (the “pull-through rate”), and estimated transformative costs. The pull-through rate is based on the Company’s own experience and is a significant unobservable input used in the fair value measurement of these instruments and results in the classification of these instruments as Level 3. Significant changes in the pull-through rate of the IRLCs, in isolation, could result in significant changes in fair value measurement. Forward sale contracts - Mandatory trades are valued using available market pricing sources that reflect the commitments particular product, coupon, and settlement. These derivatives are classified as Level 2. Best efforts forward delivery commitments are valued using investor pricing considering the current base loan price. An anticipated loan funding probability is applied to value best efforts commitments hedging IRLCs, which results in the classification of these contracts as Level 3. The current base loan price and the anticipated loan funding probability are the most significant assumptions affecting the value of the best efforts commitments. The best efforts forward delivery commitments hedging LHFS are classified as Level 2; such contracts are transferred from Level 3 to Level 2 at the time the underlying loan is originated. Put options on treasuries and interest rate swap futures - The Company also utilizes put options and treasury futures to hedge interest rate risk. These instruments are actively traded in a liquid market and classified as Level 1 inputs. Trading securities, at fair value - Trading securities, at fair value represent retained interest in the credit risk of the assets collateralizing certain securitization transactions. The fair value is based on observable market data for similar securities obtained from sources independent of the Company and therefore classified as Level 2. Warehouse lines - The Company’s warehouse lines of credit bear interest at a rate that is periodically adjusted based on a market index. The carrying value of warehouse lines of credit approximates fair value. The warehouse lines are classified as Level 2 in the fair value hierarchy. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. As of December 31, 2022 and 2021, all amounts recorded in cash and cash equivalents represent cash held in banks, with the exception of insignificant amounts of petty cash held on hand. Restricted Cash Cash balances that have restrictions as to the Company's ability to withdraw funds are considered restricted cash. Restricted cash is the result of the terms of the Company's warehouse lines of credit, debt obligations, and cash collateral associated with the Company’s derivative activities. In accordance with the terms of the warehouse lines of credit and debt obligations, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings. |
Loans Held for Sale, at Fair Value | Loans Held for Sale, at Fair Value Loans held for sale are accounted for at fair value, with changes in fair value recognized in current period income. All changes in fair value, including changes arising from the passage of time, are recognized as a component of gain on origination and sale of loans, net. Sale Recognition - The Company recognizes transfers of loans held for sale as sales when it surrenders control over the loans. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. If the sale criteria are not met, the transfer is recorded as a secured borrowing in which the assets remain on the balance sheet and the proceeds from the transaction are recognized as a liability. Net interest income - Interest income on loans held for sale is recognized using their contractual interest rates. Interest income recognition is suspended for loans when they become 90 days delinquent, or when, in management's opinion, a full recovery of interest and principal becomes doubtful. Interest income recognition is resumed when the loan becomes contractually current. When loans are placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income on non-accrual loans is subsequently recognized only to the extent cash is received. Interest expense on warehouse and other lines of credit, debt obligations, and other types of borrowings is recognized using their contractual rates. Interest expense includes the amortization of expenses incurred in connection with financing activities over the term of the related borrowings. Origination Income, net - Origination income, net, reflects the fees earned, net of lender credits paid from originating loans. Origination income includes loan origination fees, processing fees, underwriting fees and other fees collected from the borrower at the time of funding. Lender credits typically include rebates or concessions to borrowers for certain loan origination costs. |
Loan Loss Obligations on Loans Sold | Loan Loss Obligations on Loans Sold When the Company sells loans to investors, the risk of loss or default by the borrower is generally transferred to the investor. However, the Company is required by these investors to make certain representations relating to credit information, loan documentation and collateral. These representations and warranties may extend through the contractual life of the mortgage loan. Subsequent to the sale, if underwriting deficiencies, borrower fraud or documentation defects are discovered in individual mortgage loans, the Company may be obligated to repurchase the respective mortgage loan or indemnify the investors for any losses from borrower defaults if such deficiency or defect cannot be cured within the specified period following discovery. In the case of early loan payoffs and early defaults on certain loans, the Company may be required to repay all or a portion of the premium initially paid by the investor on loans. The estimated obligation associated with early loan payoffs and early defaults is calculated based on historical loss experience. The obligation for losses related to the representations and warranties and other provisions discussed above is recorded based upon an estimate of losses. The liability for repurchase losses is assessed quarterly. Because the Company does not service all of the loans it sells, it does not maintain nor have access to the current balances and loan performance data with respect to all of the individual loans previously sold to investors. However, the Company uses industry-available prepayment data, historical and projected loss frequency and loss severity ratios, default expectations, and expected investor repurchase demands, to estimate its exposure to losses on loans previously sold. Given current general industry trends in mortgage loans as well as housing prices, market expectations around losses related to the Company's obligations could vary significantly from the obligation recorded as of the balance sheet dates. The Company records a provision for loan losses, included in gain on origination and sale of loans, net in the consolidated statements of operations, to establish the loan repurchase reserve for sold loans which is reflected in accounts payable and accrued expenses on the consolidated balance sheets. |
Securitizations | Securitizations The Company is involved in several types of securitization and financing transactions that utilize special-purpose entities (SPEs). A SPE is an entity that is designed to fulfill a specified limited need of the sponsor. 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. Securitization transactions 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 subordinated interests, residual interests, and/or servicing rights. |
Derivative Financial Instruments | Derivative Financial Instruments 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. 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 subject to master netting arrangements in a net position on the consolidated balance sheets. Interest rate lock commitments - The Company enters into IRLCs to originate loans held for sale, at specified interest rates, with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. The Company is exposed to price risk related to its loans held for sale, IRLCs and servicing rights. The Company bears price risk from the time a commitment to originate a loan is made to a borrower or to purchase a loan from a third-party, to the time the loan is sold. During this period, the Company is exposed to losses if mortgage interest rates rise because the value of the IRLC or the loan held for sale decreases. Forward sale contracts - The Company manages the price risk created by IRLCs and LHFS by entering into forward sale agreements to sell, buy, or originate specified residential mortgage loans at prices which are fixed as of the forward commitment date. Forward sale contracts also include pair offs hedging MSRs, IRLCs, and LHFS. |
Servicing Rights | Servicing Rights The value of the servicing rights is derived from the net positive cash flows associated with the servicing contracts. Servicing rights arise from contractual agreements between the Company and investors (or their agents) in mortgage securities and mortgage loans. Under these contracts, the Company performs loan servicing functions in exchange for fees and other remuneration. Servicing functions typically include, among other responsibilities, collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest; holding custodial (impound) funds for payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising the acquisition of real estate in settlement of loans and property disposition. The Company is required to make servicing advances on behalf of borrowers and investors to cover delinquent balances for property taxes, insurance premiums and other costs. Advances are made in accordance with servicing agreements and are recoverable upon collection from the borrower or foreclosure of the underlying loans. The Company periodically reviews the receivable for collectability and amounts are written-off when deemed uncollectible. As of December 31, 2022 and 2021, the Company had $98.7 million and $81.1 million, respectively, in outstanding servicing advances included in prepaid expenses and other assets. When the Company sells a loan on a servicing-retained basis, it recognizes a servicing asset at fair value based on the present value of future cash flows generated by the servicing asset retained in the sale. The Company has made the election to carry its servicing rights at fair value. The Company recognizes sales of servicing rights to a purchaser as sales when (i) the Company has received approval from the investor, if required, (ii) the purchaser is currently approved as a servicer and is not at risk of losing approval status, (iii) if the portion of the sales price has been financed, an adequate nonrefundable down payment has been received and the note receivable from the purchaser provides full recourse to the purchaser, and (iv) any temporary servicing performed by the Company for a short period of time is compensated in accordance with a subservicing contract that provides adequate compensation. Additionally, the Company recognizes sales of 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 is accrued for the estimated obligation associated with those provisions. The liability for servicing rights is included in accounts payable and accrued expenses on the consolidated balance sheets. Servicing Fee Income - The Company receives a servicing fee monthly on the remaining outstanding principal balances of the loans subject to the servicing contracts. Servicing fee income is recognized on an accrual basis and is recorded to servicing fee income. The servicing fees are collected from the monthly payments made by the mortgagors. The Company is contractually entitled to receive other remuneration including rights to various mortgagor-contracted fees such as late charges, collateral reconveyance charges and loan prepayment penalties, and the Company is generally entitled to retain the interest earned on funds held pending remittance related to its collection of mortgagor payments. Servicing Expense - The Company utilizes a sub-servicer to service a portion of its loan servicing portfolio and records the costs to servicing expense. Change in Fair Value of Servicing Rights, net - The Company is exposed to fair value risk related to its servicing rights. Servicing rights generally decline in fair value when market mortgage interest rates decrease. Decreasing market mortgage interest rates normally encourage increased mortgage refinancing activity. Increased refinancing activity reduces the life of the loans underlying the servicing rights, thereby reducing their value. Reductions in the value of these assets affect income primarily through change in fair value. Unrealized gains or losses resulting from changes in the fair value of servicing rights are recorded to change in fair value of servicing rights, net. Realized and unrealized hedging gains or losses used to hedge interest rate risk on servicing rights are recorded to change in fair value of servicing rights, net. Realized gains or losses from the sale of servicing rights are also included in change in fair value of servicing rights, net. |
Accounts Receivable, net | Accounts Receivable, netAccounts receivable are assessed for collectibility and a reserve is established when amounts are outstanding longer than the contractual payment terms. The Company writes off accounts receivable when management deems them uncollectible. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Costs associated with internally developed software during the development stage, both internal expenses and those paid to third parties, are capitalized and amortized over three years. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Useful lives for purposes of computing depreciation are as follows: Years Leasehold improvements 2 - 15 Furniture and equipment 5 - 7 Computer software 3 - 5 Expenditures that materially increase the asset life are capitalized, while ordinary maintenance and repairs are charged to operations as incurred. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in earnings. |
Leases | Leases The Company determines if an arrangement contains a lease at contract inception and recognizes an operating lease right-of-use (“ROU”) asset and corresponding operating lease liability based on the present value of lease payments over the lease term, except leases with initial terms less than or equal to 12 months. While the operating leases may include options to extend the term, these options are not included when calculating the operating lease right-of-use asset and lease liability unless the Company is reasonably certain it will exercise such options. Most of the leases do not provide an implicit rate and, therefore, the Company determines the present value of lease payments by using the Company’s incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets. The Company’s lease agreements include both lease and non-lease components (such as common area maintenance), which are generally included in the lease and are accounted for together with the lease as a single lease component. Certain of the Company’s lease agreements permit it to sublease leased assets. Sublease income is included as a component of lease expense. Operating lease ROU assets are regularly reviewed for impairment under the long-lived asset impairment guidance in ASC Subtopic 360-10, Property, Plant and Equipment - Overall . |
Loans Eligible for Repurchase | Loans Eligible for RepurchaseLoans eligible for repurchase represents certain mortgage loans sold pursuant to Government National Mortgage Association (“Ginnie Mae”) programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans and a corresponding repurchase liability in its consolidated balance sheets. The terms of the Ginnie Mae MBS program allow, but do not require, the Company to repurchase mortgage loans when the borrower has made no payments for three consecutive months. As a result of this right, the Company records the loans in loans eligible for repurchase and records a corresponding liability in liability for loans eligible for repurchase on its consolidated balance sheets. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Business combinations are accounted for using the acquisition method of accounting. Acquired intangible assets are recognized and reported separately from goodwill. Goodwill represents the excess cost of acquisition over the fair value of net assets acquired. Intangible assets with finite lives are amortized over their estimated lives using the straight-line method. On an annual basis, during the fourth quarter, the Company evaluates whether there has been a change in the estimated useful life or if certain impairment indicators exist. |
Long-Lived Assets | Long-Lived AssetsThe Company periodically assesses long-lived assets, including property and equipment, for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. If management identifies an indicator of impairment, it assesses recoverability by comparing the carrying amount of the asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and is measured as the excess of carrying value over fair value. |
Income Taxes | Income Taxes The Company’s provision for income taxes is made for current and deferred income tax on pretax net income adjusted for permanent and temporary differences based on enacted tax laws and applicable statutory tax rates. The Company accounts for interest and penalties associated with income tax obligations as a component of income tax expense. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates for the periods in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the change. Deferred tax assets are recorded in prepaid expenses and other assets on the consolidated balance sheets. Deferred tax liabilities are recorded in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Following the IPO and reorganization, the Company’s purchase of Holdco Units and any future exchanges of Holdco Units for cash or Class A Common Stock are expected to result in increases to the Company’s allocable tax basis in its assets. These increases in tax basis are expected to increase (for tax purposes) depreciation and amortization deductions allocable to the Company, and therefore reduce the amount of tax that the Company would otherwise be required to pay in the future. As a result, the Company has entered into a Tax Receivable Agreement, (“TRA”) with Parthenon stockholders and certain Continuing LLC Members, whereby loanDepot, Inc. will be obligated to pay such parties or their permitted assignees, 85% of the amount of cash tax savings, if any, in U.S. federal, state, and local taxes that loanDepot, Inc. realizes, or is deemed to realize as a result of future tax benefits from increases in tax basis. The TRA liability is accounted for as a contingent liability within accounts payable, accrued expenses and other liabilities on the consolidated balance sheets with amounts accrued when deemed probable and estimable. |
Stock-Based Compensation | Stock-Based Compensation The Company’s 2021 Omnibus Incentive Plan (“2021 Plan”) and 2022 Inducement Plan (“2022 Plan”) provide for the grant of incentive and non-qualified stock options, restricted stock, restricted stock units (“RSUs”), and stock appreciation rights of the Company’s Class A common stock. During 2022, the Company’s shareholders approved the 2022 Employee Stock Purchase Plan (“ESPP”). The Company measures and recognizes compensation expense for all stock-based awards based on estimated fair values. Stock-based awards currently consist of non-qualified stock options, RSUs, and ESPP subscriptions. The Company’s RSUs vest on service-based or market-based conditions. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period (vesting period) so that compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. Expense is reduced for actual forfeitures as they occur. The cost of stock-based compensation is recorded to personnel expense on the consolidated statements of operations. |
Earnings per share | Earnings per share Basic net income per common share is calculated using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating security according to dividends declared (distributed earnings) and participation rights in undistributed earnings. Distributed and undistributed earnings are allocated between common and participating security shareholders based on their respective rights to receive dividends. According to the Company’s certificate of incorporation, the holders of Class A common stock and Class D common stock are entitled to share equally, on a per share basis, in dividends and other distributions of cash, property or shares of stock of the Company as may be declared by the board of directors. |
Revenue Recognition | Revenue RecognitionDirect title insurance premiums, escrow and sub escrow fees, and default and foreclosure service revenues are reported within other income in the consolidated statements of operations and are within the scope of ASC Topic 606. Direct title insurance premiums are based on a percentage of the gross title premiums charged by the title insurance provider and are recognized net as revenue when the Company is legally or contractually entitled to collect the premium. Revenue is recognized at the point-in-time upon the closing of the underlying real estate transaction as the earnings process is considered complete. Cash is typically collected at the closing of the underlying real estate transaction. Escrow and sub escrow fees are primarily associated with managing the closing of real estate transactions including the processing of funds on behalf of the transaction participants, gathering and recording the required closing documents, and providing other related activities. Escrow and sub escrow fees are recognized as revenue when the closing process is complete or when the Company is legally or contractually entitled to collect the fee. Revenue is primarily recognized at a point-in-time upon closing of the underlying real estate transaction or completion and billing of services. Cash is typically collected at the closing of the underlying real estate transaction. Default and foreclosure service revenues are associated with foreclosure title searches, tax searches, title updates, deed recordings and other related services. Fees vary by service and are recognized as revenue when the service is complete and billed or when the Company is entitled to collect the fee. |
Marketing and Advertising | Marketing and Advertising Advertising costs are expensed in the period incurred and principally represent online advertising costs, including fees paid to search engines, distribution partners, master service agreements with brokers, and desk rental agreements with realtors. Prepaid advertising expenses are capitalized and recognized during the period the expenses are incurred. |
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 22% and 31% of total loan originations for the years ended December 31, 2022 and 2021, respectively. The Company sells mortgage loans to various third-party investors. Three investors accounted for 28%, 27%, and 22% of the Company’s loan sales for the year ended December 31, 2022 and 41%, 32%, and 14% for the year ended December 31, 2021. No other investors accounted for more than 5% of the loan sales for the years ended December 31, 2022 and 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provided optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the benefits of) reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective and apply to all entities, subject to meeting certain criteria, that have contract, hedging |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Useful Life of Property, Plant and Equipment | Useful lives for purposes of computing depreciation are as follows: Years Leasehold improvements 2 - 15 Furniture and equipment 5 - 7 Computer software 3 - 5 Property and equipment, net consists of the following: December 31, 2022 2021 Furniture and equipment $ 93,818 $ 146,456 Computer software 6,837 20,254 Software development 147,424 88,822 Leasehold improvements 29,150 44,706 Work in progress 12,929 40,565 Property and equipment 290,158 340,803 Accumulated depreciation and amortization (197,269) (236,541) Property and equipment, net $ 92,889 $ 104,262 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 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. December 31, 2022 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 863,956 $ 863,956 $ — $ — Restricted cash 116,545 116,545 — — Loans held for sale, at fair value 2,373,427 — 2,373,427 — Derivative assets, at fair value 39,411 — 10,037 29,374 Servicing rights, at fair value 2,037,447 — — 2,037,447 Trading securities, at fair value 94,243 — 94,243 — Loans eligible for repurchase 634,677 — 634,677 — Liabilities Warehouse and other lines of credit $ 2,146,602 $ — $ 2,146,602 $ — Derivative liabilities, at fair value 67,492 18,226 43,482 5,784 Servicing rights, at fair value 12,311 — — 12,311 Debt obligations: Secured credit facilities 1,097,831 — 1,098,853 — Term Notes 199,666 — 200,000 — Senior Notes 991,822 — 645,495 — Liability for loans eligible for repurchase 634,677 — 634,677 — 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. December 31, 2022 Level 1 Level 2 Level 3 Total Fair value through net income: Assets: Loans held for sale $ — $ 2,373,427 $ — $ 2,373,427 Trading securities — 94,243 — 94,243 Derivative assets: Interest rate lock commitments — — 29,374 29,374 Forward sale contracts — 6,676 — 6,676 MBS put options — 3,361 — 3,361 Servicing rights — — 2,037,447 2,037,447 Total assets at fair value $ — $ 2,477,707 $ 2,066,821 $ 4,544,528 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 5,784 $ 5,784 Interest rate swap futures 7,395 — — 7,395 Forward sale contracts — 43,482 — 43,482 Put options on treasuries 10,831 — — 10,831 Servicing rights — — 12,311 12,311 Total liabilities at fair value $ 18,226 $ 43,482 $ 18,095 $ 79,803 December 31, 2021 Level 1 Level 2 Level 3 Total 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): Year Ended December 31, 2022 IRLCs, net Servicing Balance at beginning of period $ 180,620 $ 1,999,402 Total net gains or losses included in earnings (realized and unrealized) 380,443 790,885 Sales and settlements Sales — (765,151) Settlements (1) (377,071) — Transfers of IRLCs to closed loans (160,402) — Balance at end of period $ 23,590 $ 2,025,136 (1) Funded amount for IRLCs. Year Ended December 31, 2021 IRLCs, net Servicing Balance at beginning of period $ 647,045 $ 1,124,302 Total net gains or losses included in earnings (realized and unrealized) 2,169,847 1,258,829 Sales and settlements Sales — (383,729) Settlements (1) (1,969,541) — Transfers of IRLCs to closed loans (666,731) — Balance at end of period $ 180,620 $ 1,999,402 (1) Funded amount for IRLCs. Year Ended December 31, 2020 IRLCs, net Servicing Contingent Consideration Balance at beginning of period $ 128,208 $ 444,443 $ (2,374) Total net gains or losses included in earnings (realized and unrealized) 3,628,891 686,632 (32,650) Sales and settlements Sales — (6,773) — Settlements (1)(2) (2,460,225) — 34,835 Transfers of IRLCs to closed loans (649,829) — — Transfers from Level 3 (3) — — 189 Balance at end of period $ 647,045 $ 1,124,302 $ — (1) Funded amount for IRLCs. (2) The $34.8 million settlement of contingent consideration included $14.7 million to satisfy the initial contingent consideration liability, the remaining $20.1 million was paid in accordance with an annual earnout computation. (3) The $189,000 as of December 31, 2020 represents a fixed amount recorded in accounts payable and accrued liabilities on the Company’s consolidated balance sheet. 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): Year Ended December 31, 2022 IRLCs, net Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ (157,030) $ 647,716 Change in fair value of servicing rights, net — 143,169 Total $ (157,030) $ 790,885 Change in unrealized gains relating to assets and liabilities still held at period end $ 23,590 $ 710,254 Year Ended December 31, 2021 IRLCs Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ (466,425) $ 1,610,596 Change in fair value of servicing rights, net — (351,767) Total $ (466,425) $ 1,258,829 Change in unrealized gains relating to assets and liabilities still held at period end $ 180,620 $ 1,341,289 Year Ended December 31, 2020 IRLCs Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ 518,837 $ 986,050 Change in fair value of servicing rights, net — (299,418) Total $ 518,837 $ 686,632 Change in unrealized gains relating to assets and liabilities still held at period end $ 647,045 $ 860,212 |
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): Year Ended December 31, 2022 IRLCs, net Servicing Balance at beginning of period $ 180,620 $ 1,999,402 Total net gains or losses included in earnings (realized and unrealized) 380,443 790,885 Sales and settlements Sales — (765,151) Settlements (1) (377,071) — Transfers of IRLCs to closed loans (160,402) — Balance at end of period $ 23,590 $ 2,025,136 (1) Funded amount for IRLCs. Year Ended December 31, 2021 IRLCs, net Servicing Balance at beginning of period $ 647,045 $ 1,124,302 Total net gains or losses included in earnings (realized and unrealized) 2,169,847 1,258,829 Sales and settlements Sales — (383,729) Settlements (1) (1,969,541) — Transfers of IRLCs to closed loans (666,731) — Balance at end of period $ 180,620 $ 1,999,402 (1) Funded amount for IRLCs. Year Ended December 31, 2020 IRLCs, net Servicing Contingent Consideration Balance at beginning of period $ 128,208 $ 444,443 $ (2,374) Total net gains or losses included in earnings (realized and unrealized) 3,628,891 686,632 (32,650) Sales and settlements Sales — (6,773) — Settlements (1)(2) (2,460,225) — 34,835 Transfers of IRLCs to closed loans (649,829) — — Transfers from Level 3 (3) — — 189 Balance at end of period $ 647,045 $ 1,124,302 $ — (1) Funded amount for IRLCs. (2) The $34.8 million settlement of contingent consideration included $14.7 million to satisfy the initial contingent consideration liability, the remaining $20.1 million was paid in accordance with an annual earnout computation. (3) The $189,000 as of December 31, 2020 represents a fixed amount recorded in accounts payable and accrued liabilities on the Company’s consolidated balance sheet. 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): Year Ended December 31, 2022 IRLCs, net Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ (157,030) $ 647,716 Change in fair value of servicing rights, net — 143,169 Total $ (157,030) $ 790,885 Change in unrealized gains relating to assets and liabilities still held at period end $ 23,590 $ 710,254 Year Ended December 31, 2021 IRLCs Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ (466,425) $ 1,610,596 Change in fair value of servicing rights, net — (351,767) Total $ (466,425) $ 1,258,829 Change in unrealized gains relating to assets and liabilities still held at period end $ 180,620 $ 1,341,289 Year Ended December 31, 2020 IRLCs Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ 518,837 $ 986,050 Change in fair value of servicing rights, net — (299,418) Total $ 518,837 $ 686,632 Change in unrealized gains relating to assets and liabilities still held at period end $ 647,045 $ 860,212 |
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: December 31, 2022 December 31, 2021 Unobservable Input Range of inputs Weighted Average (2) Range of inputs Weighted Average (2) IRLCs: Pull-through rate 8.4% - 99.9% 75.3% 0.3% - 99.3% 74.2% Servicing rights Discount rate (1) 5.0% - 16.1% 6.5% 4.5% - 9.0% 5.8% Prepayment rate (1) 5.8% - 17.6% 7.2% 8.4% - 18.7% 10.2% Cost to service (per loan) $63 - $138 $87 $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) | 12 Months Ended |
Dec. 31, 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. In circumstances where right of set off criteria is met, the related asset and liability are presented in a net position on the consolidated balance sheets. Warehouse and other lines of credit and secured debt obligations were secured by financial instruments and cash collateral with fair values that exceeded the liability amount recorded on the consolidated balance sheets as of December 31, 2022 and 2021, respectively. Refer to Note 12 – Warehouse and Other Lines of Credit for further details on cash collateral requirements. December 31, 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 $ 39,386 $ 32,710 $ 6,676 $ — $ — $ 6,676 MBS put options 3,361 — 3,361 — — 3,361 Total assets $ 42,747 $ 32,710 $ 10,037 $ — $ — $ 10,037 Liabilities: Forward sale contracts $ 76,192 $ 32,710 $ 43,482 $ — $ (36,270) $ 7,212 Put options on treasuries 10,831 — 10,831 — (10,831) — Interest rate swap futures 7,395 — 7,395 — (7,395) — Warehouse and other lines of credit 2,146,602 — 2,146,602 (2,146,602) — — Secured debt obligations (1) 1,298,853 — 1,298,853 (1,298,853) — — Total liabilities $ 3,539,873 $ 32,710 $ 3,507,163 $ (3,445,455) $ (54,496) $ 7,212 (1) Secured debt obligations as of December 31, 2022 included secured credit facilities and Term Notes. December 31, 2021 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 $ 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 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. In circumstances where right of set off criteria is met, the related asset and liability are presented in a net position on the consolidated balance sheets. Warehouse and other lines of credit and secured debt obligations were secured by financial instruments and cash collateral with fair values that exceeded the liability amount recorded on the consolidated balance sheets as of December 31, 2022 and 2021, respectively. Refer to Note 12 – Warehouse and Other Lines of Credit for further details on cash collateral requirements. December 31, 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 $ 39,386 $ 32,710 $ 6,676 $ — $ — $ 6,676 MBS put options 3,361 — 3,361 — — 3,361 Total assets $ 42,747 $ 32,710 $ 10,037 $ — $ — $ 10,037 Liabilities: Forward sale contracts $ 76,192 $ 32,710 $ 43,482 $ — $ (36,270) $ 7,212 Put options on treasuries 10,831 — 10,831 — (10,831) — Interest rate swap futures 7,395 — 7,395 — (7,395) — Warehouse and other lines of credit 2,146,602 — 2,146,602 (2,146,602) — — Secured debt obligations (1) 1,298,853 — 1,298,853 (1,298,853) — — Total liabilities $ 3,539,873 $ 32,710 $ 3,507,163 $ (3,445,455) $ (54,496) $ 7,212 (1) Secured debt obligations as of December 31, 2022 included secured credit facilities and Term Notes. December 31, 2021 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 $ 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 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) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021: December 31, 2022 2021 Amount % Amount % Conforming - fixed $ 1,441,497 59 % $ 4,881,222 61 % Conforming - ARM 52,513 2 351,408 4 Government - fixed 815,921 34 1,156,890 15 Government - ARM 17,788 1 10,906 — Other - residential mortgage loans 101,137 4 1,576,858 20 Consumer loans 1,774 — 1,942 — Total 2,430,630 100 % 7,979,226 100 % Fair value adjustment (57,203) 157,591 Loans held for sale, at fair value $ 2,373,427 $ 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: Year Ended December 31, 2022 2021 Balance at beginning of period $ 8,136,817 $ 6,955,424 Origination and purchase of loans 53,094,767 136,606,028 Sales (59,174,022) (136,081,060) Repurchases 633,298 944,023 Principal payments (132,322) (182,883) Fair value loss (185,111) (104,715) Balance at end of period $ 2,373,427 $ 8,136,817 Accounts receivable, net consists of the following: December 31, 2022 2021 Margin call receivable $ 36,270 $ 1,740 Servicing sales, net 27,021 19,134 Servicing 24,917 6,527 Joint ventures 15,843 2,160 Loan sales 10,733 7,551 Servicing advance facilities 9,278 — Loan principal and interest 4,502 5,835 Loan origination 3,623 6,131 Settlement services 1,374 6,293 Other 11,718 812 Total accounts receivable, net $ 145,279 $ 56,183 |
Components of Gain on Origination and Sale of Loans, Net | Gain on origination and sale of loans, net is comprised of the following components: Year Ended December 31, 2022 2021 2020 (Discount) premium from loan sales $ (933,547) $ 1,882,557 $ 3,178,213 Servicing rights additions 647,716 1,610,596 986,050 Unrealized (losses) gains from derivative assets and liabilities (134,519) (308,200) 288,325 Realized gains (losses) from derivative assets and liabilities 1,215,013 347,014 (557,996) Discount points, rebates and lender paid costs 275,981 (206,716) (148,518) Fair value (loss) gain on loans held for sale (185,111) (104,715) 185,885 Provision for loan loss obligation for loans sold (136,993) (7,185) (25,973) Total gain on origination and sale of loans, net $ 748,540 $ 3,213,351 $ 3,905,986 |
SERVICING RIGHTS, AT FAIR VAL_2
SERVICING RIGHTS, AT FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2022 2021 Conventional $ 104,074,252 $ 127,270,097 Government 37,096,679 34,842,868 Total servicing portfolio $ 141,170,931 $ 162,112,965 |
Summary of Unpaid Principal Balance Underlying Servicing Rights | A summary of the unpaid principal balance underlying servicing rights is as follows: December 31, 2022 2021 Current loans $ 139,295,226 $ 160,302,966 Loans 30 - 89 days delinquent 703,285 504,467 Loans 90 or more days delinquent or in foreclosure 1,172,420 1,305,532 Total servicing portfolio (1) $ 141,170,931 $ 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: Year Ended December 31, 2022 2021 2020 Balance at beginning of period $ 1,999,402 $ 1,124,302 $ 444,443 Servicing rights additions 647,716 1,610,596 986,050 Sales proceeds, net (754,597) (382,271) (9,881) Changes in fair value: Due to changes in valuation inputs or assumptions 363,064 68,399 (95,764) Due to collection/realization of cash flows (230,449) (421,624) (200,546) Balance at end of period $ 2,025,136 $ 1,999,402 $ 1,124,302 |
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: Year Ended December 31, 2022 2021 2020 Contractual servicing fees $ 423,528 $ 382,501 $ 174,532 Late, ancillary and other fees 25,622 11,179 11,363 Servicing fee income $ 449,150 $ 393,680 $ 185,895 |
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: Year Ended December 31, 2022 2021 2020 Changes in fair value: Due to changes in valuation inputs or assumptions $ 363,064 $ 68,399 $ (95,764) Due to collection/realization of cash flows (230,449) (421,624) (200,546) Realized losses on sales of servicing rights (3,663) (9,759) (2,701) Net (loss) gain from derivatives hedging servicing rights (323,309) (82,878) 154,663 Changes in fair value of servicing rights, net $ (194,357) $ (445,862) $ (144,348) |
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. December 31, 2022 2021 Fair Value of Servicing Rights, net $ 2,025,136 $ 1,999,402 Change in Fair Value from adverse changes: Discount Rate: Increase 1% (81,431) (85,066) Increase 2% (157,281) (163,255) Cost of Servicing: Increase 10% (19,017) (20,843) Increase 20% (38,127) (41,727) Prepayment Speed: Increase 10% (18,863) (76,532) Increase 20% (37,546) (148,556) |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022: Interest rate lock commitments $ 1,591,807 Derivative asset, at fair value $ 29,374 Interest rate lock commitments 622,706 Derivative liabilities, at fair value — 5,784 Forward sale contracts 309,809 Derivative asset, at fair value 6,676 — Forward sale contracts 2,963,685 Derivative liabilities, at fair value — 43,482 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 8,050 Derivative liabilities, at fair value — 10,831 MBS put options 400,000 Derivative asset, at fair value 3,361 — MBS put options — Derivative liabilities, at fair value — — Interest rate swap futures — Derivative asset, at fair value — — Interest rate swap futures 211 Derivative liabilities, at fair value — 7,395 Total derivative financial instruments $ 39,411 $ 67,492 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 were included: Year Ended December 31, Derivative instrument Statements of Operations Location 2022 2021 2020 Interest rate lock commitments, net Gain on origination and sale of loans, net $ (157,030) $ (466,425) $ 518,837 Forward sale contracts Gain on origination and sale of loans, net 1,195,708 540,811 (748,245) Interest rate swap futures Gain on origination and sale of loans, net (81,259) (111,300) (13,151) Put options Gain on origination and sale of loans, net 123,075 75,728 (27,112) Forward sale contracts Change in fair value of servicing rights, net (114,244) (89,127) 140,173 Interest rate swap futures Change in fair value of servicing rights, net (201,259) 9,071 16,708 Put options Change in fair value of servicing rights, net (7,806) (2,822) (2,218) Total realized and unrealized losses on derivative financial instruments $ 757,185 $ (44,064) $ (115,008) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 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, 2020 $ 40,736 $ 2,090 $ 42,826 Amortization — (509) (509) Balance December 31, 2021 $ 40,736 $ 1,581 $ 42,317 Amortization — (205) (205) Impairment loss (40,736) (1,376) (42,112) Balance, December 31, 2022 $ — $ — $ — |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 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 consolidated securitization and SPE VIEs. December 31, December 31, Assets Loans held for sale, at fair value $ 497,574 $ 2,557,490 Restricted cash 6,735 100,494 Servicing rights, at fair value 544,729 400,678 Prepaid expenses and other assets 54,887 17,756 Total $ 1,103,925 $ 3,076,418 Liabilities Warehouse and other lines of credit $ 500,000 $ 2,600,000 Debt obligations, net: MSR Facilities 116,874 15,000 Servicing advance facilities 48,484 15,070 Term notes 199,666 199,133 Total $ 865,024 $ 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. December 31, 2022 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 94,243 $ — $ 94,243 $ 2,309,739 Investments in joint ventures 20,410 — 20,410 38,682 Total $ 114,653 $ — $ 114,653 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 Total $ 91,427 $ — $ 91,427 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | A summary of the changes in the balance of loans held for sale is as follows: Year Ended December 31, 2022 2021 Balance at beginning of period $ 8,136,817 $ 6,955,424 Origination and purchase of loans 53,094,767 136,606,028 Sales (59,174,022) (136,081,060) Repurchases 633,298 944,023 Principal payments (132,322) (182,883) Fair value loss (185,111) (104,715) Balance at end of period $ 2,373,427 $ 8,136,817 Accounts receivable, net consists of the following: December 31, 2022 2021 Margin call receivable $ 36,270 $ 1,740 Servicing sales, net 27,021 19,134 Servicing 24,917 6,527 Joint ventures 15,843 2,160 Loan sales 10,733 7,551 Servicing advance facilities 9,278 — Loan principal and interest 4,502 5,835 Loan origination 3,623 6,131 Settlement services 1,374 6,293 Other 11,718 812 Total accounts receivable, net $ 145,279 $ 56,183 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Useful lives for purposes of computing depreciation are as follows: Years Leasehold improvements 2 - 15 Furniture and equipment 5 - 7 Computer software 3 - 5 Property and equipment, net consists of the following: December 31, 2022 2021 Furniture and equipment $ 93,818 $ 146,456 Computer software 6,837 20,254 Software development 147,424 88,822 Leasehold improvements 29,150 44,706 Work in progress 12,929 40,565 Property and equipment 290,158 340,803 Accumulated depreciation and amortization (197,269) (236,541) Property and equipment, net $ 92,889 $ 104,262 |
Schedule of Capitalized Computer Software Development Costs | Capitalized computer software development costs consist of the following: December 31, 2022 2021 Cost $ 147,424 $ 88,822 Accumulated amortization (95,777) (76,495) Software development, net $ 51,647 $ 12,327 |
Schedule of Future Computer Software Development Depreciation | Future computer software development amortization for the remaining years: Year ending December 31, 2023 $ 24,061 2024 19,411 2025 8,175 Total $ 51,647 |
WAREHOUSE AND OTHER LINES OF _2
WAREHOUSE AND OTHER LINES OF CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents information on warehouse and other lines of credit and the outstanding balance as of December 31, 2022 and 2021: Outstanding Balance Committed Uncommitted Total Expiration December 31, December 31, Facility 1 (1) $ 400,000 $ 350,000 $ 750,000 10/26/2023 $ 382,098 $ 851,088 Facility 2 (2) — 300,000 300,000 9/25/2023 236,144 295,743 Facility 3 — 300,000 300,000 4/18/2023 177,900 459,018 Facility 4 — 300,000 300,000 12/28/2023 202,548 266,230 Facility 5 (2) — 200,000 200,000 N/A — 391 Facility 6 (2) 100,000 500,000 600,000 9/29/2023 180,273 583,449 Facility 7 (3) 400,000 400,000 800,000 5/5/2023 295,064 1,410,367 Facility 8 (9) — — — N/A — 361,783 Facility 9 (4)(5) — — — 10/25/2022 — 600,000 Facility 10 (4)(7) — — — 12/17/2023 — 500,000 Facility 11 (2)(6) — — — 9/23/2022 — 263,516 Facility 12 (4)(8) — — — 2/2/2024 — 500,000 Facility 13 (4)(8) — — — 4/23/2024 — 500,000 Facility 14 — 300,000 300,000 9/21/2023 172,575 365,614 Facility 15 (4) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 1,400,000 $ 2,650,000 $ 4,050,000 $ 2,146,602 $ 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 $116.9 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. (7) This facility was prepaid and terminated in August 2022. (8) This facility was prepaid and terminated in September 2022. (9) This facility was prepaid and terminated in November 2022. The following table presents certain information on warehouse and other lines of credit: Year Ended December 31, 2022 2021 2020 Maximum outstanding balance during the period $ 7,672,559 $ 9,180,276 $ 7,037,828 Average balance outstanding during the period 4,127,822 8,149,855 3,974,625 Collateral pledged (loans held for sale) 2,214,656 7,815,347 6,752,909 Weighted average interest rate during the period 2.97 % 2.21 % 2.54 % |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Information on Outstanding Debt | The following table presents the outstanding debt as of December 31, 2022 and 2021: December 31, 2022 2021 Secured debt obligations, net: Secured credit facilities: MSR facilities $ 963,834 $ 262,250 Securities financing facilities 85,513 66,439 Servicing advance facilities 48,484 15,070 Total secured credit facilities 1,097,831 343,759 Term Notes 199,666 199,133 Total secured debt obligations, net 1,297,497 542,892 Unsecured debt obligations, net: Senior Notes 991,822 1,085,316 Total debt obligations, net $ 2,289,319 $ 1,628,208 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: December 31, 2022 2021 Accounts payable $ 139,714 $ 136,619 Deferred tax liability 122,404 193,020 Loan loss obligation for sold loans 70,797 29,877 Accrued compensation and benefits 52,759 154,154 TRA liability 50,730 32,865 Joint ventures 25,619 — Servicing rights, at fair value 12,311 7,310 Dividends and dividend equivalents payable 7,130 38,057 Accrued pricing adjustments on sold loans 3,167 12,336 Income tax payable — 12,821 Other 4,065 7,385 Total accounts payable, accrued expenses and other liabilities $ 488,696 $ 624,444 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The following table details the Company’s provision for income taxes: Year Ended December 31, 2022 2021 2020 Current Federal $ (162) $ 8,936 $ 1,745 State 846 3,120 581 Total current 684 12,056 2,326 Deferred Federal (66,624) 26,623 (82) State (13,652) 4,692 4 Total deferred (80,276) 31,315 (78) Total (benefit) provision for income taxes $ (79,592) $ 43,371 $ 2,248 |
Schedule of Reconciliation of Estimated Provision for Income Taxes | The following table is a reconciliation of the estimated provision for income taxes at statutory rates to the provision for income taxes at the Company’s effective tax rate: Year Ended December 31, 2022 2021 2020 Federal income tax at statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes (net of federal benefit) 3.0 0.9 — Non-controlling interests (10.3) (16.2) (20.9) Goodwill impairment (0.6) — — State rate change (1.5) — — Change in valuation allowance (0.1) — — Other, net — 0.8 — Effective income tax rate 11.5 % 6.5 % 0.1 % |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: December 31, 2022 2021 Deferred tax assets: Accrued compensation $ 41 $ — Net operating loss 70,010 — Tax credits 447 — Depreciation 7 — State taxes — 437 Gross deferred tax assets before valuation allowance 70,505 437 Valuation allowance (386) — Net deferred tax assets 70,119 437 Deferred tax liabilities: Outside basis difference 191,437 193,353 Acquired intangible assets 145 — Total deferred tax liabilities 191,582 193,353 Net deferred tax liabilities $ (121,463) $ (192,916) |
Reconciliation of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of uncertain tax positions is as follows: Year Ended December 31, 2022 2021 2020 Beginning balance $ 654 $ — $ 282 Increases related to positions taken during prior years 540 — Increases related to positions taken during the current year 114 — Decreases due to a lapse of applicable statute of limitations (157) — (282) Ending balance $ 497 $ 654 $ — |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense and Other Information | Year Ended December 31, 2022 2021 2020 Lease expense: Operating leases $ 24,961 $ 28,322 $ 30,350 Short-term leases 2,373 747 688 Sublease income (187) (1,049) (1,518) Lease expense, net included in occupancy expense $ 27,147 $ 28,020 $ 29,520 Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 31,350 $ 31,377 Right-of-use assets obtained in exchange for lease obligations: New leases entered into during the year 16,922 11,826 December 31, December 31, 2021 Period-end: Operating leases: Weighted average remaining lease term (years) 3.6 3.8 Weighted average discount rate 5.7 % 7.0 % |
Schedule of Future Minimum Lease Payments for Operating Lease | The following is a schedule of future minimum lease payments for operating leases with initial terms in excess of one year as of December 31, 2022: Year ending December 31, 2023 $ 23,576 2024 18,313 2025 11,582 2026 7,146 2027 6,287 Thereafter 2,242 Total operating lease payments 69,146 Less: Imputed interest (7,471) Operating lease liability $ 61,675 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Fees earned, costs incurred, and receivables from joint ventures were as follows: Year Ended December 31, 2022 2021 2020 Loan processing and administrative services fee income $ 18,534 $ 15,023 $ 14,483 Loan origination broker fees expense 120,392 90,266 80,636 December 31, 2022 2021 Amounts (payable to) receivable from joint ventures $ (9,776) $ 1,855 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Ownership of LD Holdings | The following table summarizes the ownership of LD Holdings as of December 31, 2022. Holding Member Interests: Holdco Units Ownership Percentage loanDepot, Inc. 169,523,682 53.78% Continuing LLC Members 145,693,119 46.22% Total 315,216,801 100.00% |
COMPENSATION PLANS (Tables)
COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Options, Valuation Assumptions | The Black-Scholes option pricing model was used with the following weighted-average assumptions for options granted in 2022. There were no options granted prior to 2022. For the year ended December 31, 2022 Average risk-free interest rate 3.69% Expected dividend yield N/A Expected volatility 70% Expected life 5.61 years Fair value per share $1.10 |
Employee Stock Purchase Plan, Valuation Assumptions | The Black-Scholes option pricing model was used with the following weighted-average assumptions for ESPP subscriptions in 2022. For the year ended December 31, 2022 Average risk-free interest rate 3.77% Expected dividend yield N/A Expected volatility 70% Expected life 0.50 years Fair value per share $1.60 |
Summary of RSU Activity | The fair value of market-based restricted stock units was determined using a Monte Carlo simulation model, which uses multiple input variables to determine the probability of satisfying the market condition requirements. The following weighted-average assumptions were used to determine the fair value of market-based restricted stock units in 2022. There were no market-based restricted stock units granted prior to 2022. For the year ended December 31, 2022 Average risk-free interest rate 3.2% Expected volatility 70% Restricted stock unit activity during the year ended December 31, 2022 under the 2022 Plan and 2021 Plan was as follows: Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2021 1,765,763 $ 16.60 Granted 24,841,607 2.78 Vested (1,126,808) 7.36 Forfeited/Cancelled (376,962) 10.85 Unvested as of December 31, 2022 25,103,600 3.43 Restricted stock unit activity during the year ended December 31, 2022 for Holdco Units was as follows: Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2021 11,610,142 $ 0.50 Vested (4,258,580) 0.49 Forfeited/Cancelled (1,607,362) 0.50 Unvested as of December 31, 2022 5,744,200 0.50 |
Schedule of Stock Option Activity | Stock option activity during the year ended December 31, 2022 under the 2022 Plan and 2021 Plan was as follows: Shares Weighted Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 31, 2021 — $ — — $ — Granted 7,000,000 $ 1.73 Outstanding as of December 31, 2022 7,000,000 $ 1.73 5.6 years $ 480 Exercisable as of December 31, 2022 — — — — Vested and Expected to Vest as of December 31, 2022 7,000,000 $ 1.73 5.6 years $ 480 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 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 per share for the period following the reorganization and IPO for Class A common stock and Class D common stock: Year Ended December 31, 2022 December 31, 2021 Class A Class D Total Class A Class D Total Net (loss) earnings attributable to loanDepot, Inc. $ (103,026) $ (169,994) $ (273,020) $ 13,998 $ 99,526 $ 113,524 Weighted average shares - basic 58,879,239 97,151,111 156,030,350 16,029,314 113,969,580 129,998,894 (Loss) earnings per share - basic $ (1.75) $ (1.75) $ (1.75) $ 0.87 $ 0.87 $ 0.87 Diluted earnings per share: Net (loss) income allocated to common stockholders - diluted (103,026) (169,994) (273,020) 13,998 99,526 113,524 Weighted average shares - diluted 58,879,239 97,151,111 156,030,350 16,029,314 113,969,580 129,998,894 (Loss) earnings per share - diluted $ (1.75) $ (1.75) $ (1.75) $ 0.87 $ 0.87 $ 0.87 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 2022 2021 2020 Balance at beginning of period $ 29,877 $ 33,591 $ 17,677 Provision for loan loss obligations 136,993 7,185 25,973 Charge-offs (96,073) (10,899) (10,059) Balance at end of period $ 70,797 $ 29,877 $ 33,591 |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Segments (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
DESCRIPTION OF BUSINESS AND S_5
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Servicing Rights (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Servicing advances | $ 98.7 | $ 81.1 |
DESCRIPTION OF BUSINESS AND S_6
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Software development | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 3 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 2 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 15 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 5 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 7 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 3 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 5 years |
DESCRIPTION OF BUSINESS AND S_7
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loan Originations Benchmark | Geographic Concentration Risk | California | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 22% | 31% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 1 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 28% | 41% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 2 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 27% | 32% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 3 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 22% | 14% |
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 | 18% |
FAIR VALUE - Financial Statemen
FAIR VALUE - Financial Statement Items on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Loans held for sale, at fair value | $ 2,373,427 | $ 8,136,817 |
Derivative assets, at fair value | 39,411 | 194,665 |
Servicing rights, at fair value | 2,037,447 | 2,006,712 |
Trading securities, at fair value | 94,243 | 72,874 |
Liabilities | ||
Derivative liabilities, at fair value | 67,492 | 37,797 |
Servicing rights, at fair value | 12,311 | 7,310 |
Fair Value, Recurring | ||
Assets | ||
Loans held for sale, at fair value | 2,373,427 | 8,136,817 |
Servicing rights, at fair value | 2,037,447 | 2,006,712 |
Trading securities, at fair value | 94,243 | 72,874 |
Liabilities | ||
Servicing rights, at fair value | 12,311 | 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 | 2,373,427 | 8,136,817 |
Servicing rights, at fair value | 0 | 0 |
Trading securities, at fair value | 94,243 | 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 | 2,037,447 | 2,006,712 |
Trading securities, at fair value | 0 | 0 |
Liabilities | ||
Servicing rights, at fair value | 12,311 | 7,310 |
Fair Value, Recurring | Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 863,956 | 419,571 |
Restricted cash | 116,545 | 201,025 |
Loans held for sale, at fair value | 2,373,427 | 8,136,817 |
Derivative assets, at fair value | 39,411 | 194,665 |
Servicing rights, at fair value | 2,037,447 | 2,006,712 |
Trading securities, at fair value | 94,243 | 72,874 |
Loans eligible for repurchase | 634,677 | 363,373 |
Liabilities | ||
Warehouse and other lines of credit | 2,146,602 | 7,457,199 |
Derivative liabilities, at fair value | 67,492 | 37,797 |
Servicing rights, at fair value | 12,311 | 7,310 |
Liability for loans eligible for repurchase | 634,677 | 363,373 |
Fair Value, Recurring | Carrying Amount | Secured credit facilities | ||
Liabilities | ||
Debt obligations: | 1,097,831 | 343,759 |
Fair Value, Recurring | Carrying Amount | Term Notes | ||
Liabilities | ||
Debt obligations: | 199,666 | 199,133 |
Fair Value, Recurring | Carrying Amount | Senior Notes | ||
Liabilities | ||
Debt obligations: | 991,822 | 1,085,316 |
Fair Value, Recurring | Estimated Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 863,956 | 419,571 |
Restricted cash | 116,545 | 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 | 18,226 | 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 | 2,373,427 | 8,136,817 |
Derivative assets, at fair value | 10,037 | 5,358 |
Servicing rights, at fair value | 0 | 0 |
Trading securities, at fair value | 94,243 | 72,874 |
Loans eligible for repurchase | 634,677 | 363,373 |
Liabilities | ||
Warehouse and other lines of credit | 2,146,602 | 7,457,199 |
Derivative liabilities, at fair value | 43,482 | 2,964 |
Servicing rights, at fair value | 0 | 0 |
Liability for loans eligible for repurchase | 634,677 | 363,373 |
Fair Value, Recurring | Estimated Fair Value | Level 2 | Secured credit facilities | ||
Liabilities | ||
Debt obligations: | 1,098,853 | 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: | 645,495 | 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 | 29,374 | 184,383 |
Servicing rights, at fair value | 2,037,447 | 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 | 5,784 | 3,763 |
Servicing rights, at fair value | 12,311 | 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Loans held for sale | $ 2,373,427 | $ 8,136,817 |
Trading securities | 94,243 | 72,874 |
Derivative assets | 39,411 | 194,665 |
Servicing rights | 2,037,447 | 2,006,712 |
Liabilities | ||
Derivative liabilities | 67,492 | 37,797 |
Servicing rights | 12,311 | 7,310 |
Interest rate lock commitments | ||
Assets | ||
Derivative assets | 29,374 | 184,383 |
Liabilities | ||
Derivative liabilities | 5,784 | 3,763 |
Forward sale contracts | ||
Assets | ||
Derivative assets | 6,676 | 5,358 |
Liabilities | ||
Derivative liabilities | 43,482 | 2,964 |
Interest rate swap futures | ||
Assets | ||
Derivative assets | 0 | 4,924 |
Liabilities | ||
Derivative liabilities | 7,395 | 0 |
Put options on treasuries | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 10,831 | 31,070 |
MBS put options | ||
Assets | ||
Derivative assets | 3,361 | |
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | ||
Assets | ||
Loans held for sale | 2,373,427 | 8,136,817 |
Trading securities | 94,243 | 72,874 |
Servicing rights | 2,037,447 | 2,006,712 |
Total assets at fair value | 4,544,528 | 10,411,068 |
Liabilities | ||
Servicing rights | 12,311 | 7,310 |
Total liabilities at fair value | 79,803 | 45,107 |
Fair Value, Recurring | Interest rate lock commitments | ||
Assets | ||
Derivative assets | 29,374 | 184,383 |
Liabilities | ||
Derivative liabilities | 5,784 | 3,763 |
Fair Value, Recurring | Forward sale contracts | ||
Assets | ||
Derivative assets | 6,676 | 5,358 |
Liabilities | ||
Derivative liabilities | 43,482 | 2,964 |
Fair Value, Recurring | Interest rate swap futures | ||
Assets | ||
Derivative assets | 4,924 | |
Liabilities | ||
Derivative liabilities | 7,395 | |
Fair Value, Recurring | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities | 10,831 | 31,070 |
Fair Value, Recurring | MBS put options | ||
Assets | ||
Derivative assets | 3,361 | |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Loans held for sale | 0 | 0 |
Trading securities | 0 | 0 |
Servicing rights | 0 | 0 |
Total assets at fair value | 0 | 4,924 |
Liabilities | ||
Servicing rights | 0 | 0 |
Total liabilities at fair value | 18,226 | 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 | Forward sale contracts | ||
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 | 7,395 | |
Fair Value, Recurring | Level 1 | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities | 10,831 | 31,070 |
Fair Value, Recurring | Level 1 | MBS put options | ||
Assets | ||
Derivative assets | 0 | |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Loans held for sale | 2,373,427 | 8,136,817 |
Trading securities | 94,243 | 72,874 |
Servicing rights | 0 | 0 |
Total assets at fair value | 2,477,707 | 8,215,049 |
Liabilities | ||
Servicing rights | 0 | 0 |
Total liabilities at fair value | 43,482 | 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 | Forward sale contracts | ||
Assets | ||
Derivative assets | 6,676 | 5,358 |
Liabilities | ||
Derivative liabilities | 43,482 | 2,964 |
Fair Value, Recurring | Level 2 | Interest rate swap futures | ||
Assets | ||
Derivative assets | 0 | |
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 2 | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | MBS put options | ||
Assets | ||
Derivative assets | 3,361 | |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Loans held for sale | 0 | 0 |
Trading securities | 0 | 0 |
Servicing rights | 2,037,447 | 2,006,712 |
Total assets at fair value | 2,066,821 | 2,191,095 |
Liabilities | ||
Servicing rights | 12,311 | 7,310 |
Total liabilities at fair value | 18,095 | 11,073 |
Fair Value, Recurring | Level 3 | Interest rate lock commitments | ||
Assets | ||
Derivative assets | 29,374 | 184,383 |
Liabilities | ||
Derivative liabilities | 5,784 | 3,763 |
Fair Value, Recurring | Level 3 | Forward sale contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Interest rate swap futures | ||
Assets | ||
Derivative assets | 0 | |
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 3 | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities | 0 | $ 0 |
Fair Value, Recurring | Level 3 | MBS put options | ||
Assets | ||
Derivative assets | $ 0 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contingent Consideration: | |||
Contingent consideration paid | $ 0 | $ 0 | $ 14,692 |
Contingent consideration paid from annual earnout computation | 20,100 | ||
Interest rate lock commitments | |||
Derivatives: | |||
Balance at beginning of period | 180,620 | 647,045 | 128,208 |
Total net gains or losses included in earnings (realized and unrealized) | 380,443 | 3,628,891 | |
Sales | 0 | 0 | |
Settlements | (377,071) | (2,460,225) | |
Transfers of IRLCs to closed loans | (160,402) | (649,829) | |
Balance at end of period | 23,590 | 180,620 | 647,045 |
Contingent Consideration: | |||
Transfers from Level 3 | 0 | ||
Servicing Rights, net | |||
Derivatives: | |||
Transfers of IRLCs to closed loans | 0 | ||
Servicing Rights: | |||
Balance at beginning of period | 1,124,302 | 444,443 | |
Total net gains or losses included in earnings (realized and unrealized) | 686,632 | ||
Sales | (6,773) | ||
Settlements | 0 | ||
Balance at end of period | 1,124,302 | ||
Contingent Consideration: | |||
Transfers from Level 3 | 0 | ||
Contingent Consideration | |||
Derivatives: | |||
Transfers of IRLCs to closed loans | 0 | ||
Contingent Consideration: | |||
Balance at beginning of period | 0 | (2,374) | |
Total net gains or losses included in earnings (realized and unrealized) | (32,650) | ||
Sales | 0 | ||
Settlements | 34,835 | ||
Transfers from Level 3 | 189 | ||
Balance at end of period | 0 | ||
Interest rate lock commitments | |||
Derivatives: | |||
Balance at beginning of period | 180,620 | 647,045 | |
Total net gains or losses included in earnings (realized and unrealized) | 2,169,847 | ||
Sales | 0 | ||
Settlements | (1,969,541) | ||
Transfers of IRLCs to closed loans | (666,731) | ||
Balance at end of period | 180,620 | 647,045 | |
Servicing Rights, net | |||
Derivatives: | |||
Transfers of IRLCs to closed loans | 0 | ||
Servicing Rights: | |||
Balance at beginning of period | 1,999,402 | 1,124,302 | |
Total net gains or losses included in earnings (realized and unrealized) | 790,885 | 1,258,829 | |
Sales | (765,151) | (383,729) | |
Settlements | 0 | 0 | |
Transfers of IRLCs to closed loans | 0 | ||
Balance at end of period | $ 2,025,136 | $ 1,999,402 | $ 1,124,302 |
FAIR VALUE - Gains and Losses i
FAIR VALUE - Gains and Losses in Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives: | |||
Gain on origination and sale of loans, net | $ 748,540 | $ 3,213,351 | $ 3,905,986 |
Assets: | |||
Gain on origination and sale of loans, net | 647,716 | 1,610,596 | 986,050 |
Level 3 | Servicing Rights, net | |||
Assets: | |||
Gain on origination and sale of loans, net | 647,716 | 1,610,596 | 986,050 |
Change in fair value of servicing rights, net | 143,169 | (351,767) | (299,418) |
Total | 790,885 | 1,258,829 | 686,632 |
Change in unrealized gains relating to assets and liabilities still held at period end | 710,254 | 1,341,289 | 860,212 |
Level 3 | IRLCs | |||
Derivatives: | |||
Gain on origination and sale of loans, net | (157,030) | (466,425) | 518,837 |
Total | (157,030) | (466,425) | 518,837 |
Change in unrealized gains relating to assets and liabilities still held at period end | $ 23,590 | $ 180,620 | $ 647,045 |
FAIR VALUE - Fair Value Inputs
FAIR VALUE - Fair Value Inputs and Valuation Techniques (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Derivative | IRLCs | Minimum | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.084 | 0.003 |
Derivative | IRLCs | Maximum | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.999 | 0.993 |
Derivative | IRLCs | Weighted Average | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.753 | 0.742 |
Servicing rights | Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.050 | 0.045 |
Servicing rights | Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.058 | 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 | 0.161 | 0.090 |
Servicing rights | Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.176 | 0.187 |
Servicing rights | Maximum | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 138 | 114 |
Servicing rights | Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.065 | 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 | 87 | 82 |
BALANCE SHEET NETTING (Details)
BALANCE SHEET NETTING (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Net amounts presented in consolidated balance sheet | $ 39,411 | $ 194,665 |
Liabilities: | ||
Net amounts presented in consolidated balance sheet | 67,492 | 37,797 |
Total liabilities, gross amounts recognized | 3,539,873 | 8,060,968 |
Total liabilities, gross amounts offset in consolidated balance sheet | 32,710 | 24,139 |
Total liabilities, net amounts presented in consolidated balance sheet | 3,507,163 | 8,036,829 |
Total liabilities, gross amounts not offset in consolidated balance sheet, financial instruments | (3,445,455) | (8,002,795) |
Total liabilities, gross amounts not offset in consolidated balance sheet, cash collateral | (54,496) | (1,736) |
Total liabilities, net amount | 7,212 | 32,298 |
Warehouse and other lines of credit | ||
Liabilities: | ||
Derivative liability, gross amounts offset in consolidated balance sheet | 0 | |
Securities loaned, gross/net amounts recognized | 2,146,602 | 7,457,199 |
Securities loaned, gross amounts offset in consolidated balance sheet | 0 | |
Securities loaned, gross amounts not offset in consolidated balance sheet, financial instruments | (2,146,602) | (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, net | ||
Liabilities: | ||
Derivative liability, gross amounts offset in consolidated balance sheet | 0 | |
Securities loaned, gross/net amounts recognized | 1,298,853 | 545,596 |
Securities loaned, gross amounts offset in consolidated balance sheet | 0 | |
Securities loaned, gross amounts not offset in consolidated balance sheet, financial instruments | (1,298,853) | (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 | 39,386 | 29,497 |
Gross amounts offset in consolidated balance sheet | 32,710 | 24,139 |
Net amounts presented in consolidated balance sheet | 6,676 | 5,358 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | (1,447) |
Derivative asset, net amount | 6,676 | 3,911 |
Liabilities: | ||
Derivative liability, gross amounts recognized | 76,192 | 27,103 |
Derivative liability, gross amounts offset in consolidated balance sheet | 32,710 | 24,139 |
Net amounts presented in consolidated balance sheet | 43,482 | 2,964 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | (36,270) | (1,736) |
Derivative liability, net amount | 7,212 | 1,228 |
MBS put options | ||
Assets: | ||
Gross amounts recognized | 3,361 | |
Gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | 3,361 | |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | |
Derivative asset, net amount | 3,361 | |
Liabilities: | ||
Net amounts presented in consolidated balance sheet | 0 | |
Total assets | ||
Assets: | ||
Gross amounts recognized | 42,747 | 34,421 |
Gross amounts offset in consolidated balance sheet | 32,710 | 24,139 |
Net amounts presented in consolidated balance sheet | 10,037 | 10,282 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | (1,447) |
Derivative asset, net amount | 10,037 | 8,835 |
Put options on treasuries | ||
Assets: | ||
Net amounts presented in consolidated balance sheet | 0 | 0 |
Liabilities: | ||
Derivative liability, gross amounts recognized | 10,831 | 31,070 |
Derivative liability, gross amounts offset in consolidated balance sheet | 0 | 0 |
Net amounts presented in consolidated balance sheet | 10,831 | 31,070 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | (10,831) | 0 |
Derivative liability, net amount | 0 | 31,070 |
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 | |
Derivative asset, net amount | 4,924 | |
Liabilities: | ||
Derivative liability, gross amounts recognized | 7,395 | |
Derivative liability, gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | 7,395 | $ 0 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, cash collateral | (7,395) | |
Derivative liability, net amount | $ 0 |
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 2,430,630 | $ 7,979,226 |
Fair value adjustment | (57,203) | 157,591 |
Loans held for sale, at fair value | $ 2,373,427 | $ 8,136,817 |
Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Fixed | Conforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 1,441,497 | $ 4,881,222 |
Fixed | Conforming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 59% | 61% |
Fixed | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 815,921 | $ 1,156,890 |
Fixed | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 34% | 15% |
ARM | Conforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 52,513 | $ 351,408 |
ARM | Conforming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 2% | 4% |
ARM | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 17,788 | $ 10,906 |
ARM | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 1% | 0% |
Other - residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 101,137 | $ 1,576,858 |
Other - residential mortgage loans | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 4% | 20% |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 1,774 | $ 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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |||
Balance at beginning of period | $ 8,136,817 | $ 6,955,424 | |
Origination and purchase of loans | 53,094,767 | 136,606,028 | |
Sales | (59,174,022) | (136,081,060) | |
Repurchases | 633,298 | 944,023 | |
Principal payments | (132,322) | (182,883) | |
Fair value loss | (185,111) | (104,715) | $ 185,885 |
Balance at end of period | $ 2,373,427 | $ 8,136,817 | $ 6,955,424 |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
(Discount) premium from loan sales | $ (933,547) | $ 1,882,557 | $ 3,178,213 |
Servicing rights additions | 647,716 | 1,610,596 | 986,050 |
Unrealized (losses) gains from derivative assets and liabilities | (134,519) | (308,200) | 288,325 |
Realized gains (losses) from derivative assets and liabilities | 1,215,013 | 347,014 | (557,996) |
Discount points, rebates and lender paid costs | 275,981 | (206,716) | (148,518) |
Fair value (loss) gain on loans held for sale | (185,111) | (104,715) | 185,885 |
Provision for loan loss obligation for loans sold | (136,993) | (7,185) | (25,973) |
Total gain on origination and sale of loans, net | 748,540 | 3,213,351 | $ 3,905,986 |
Loans held for sale on non-accrual status | $ 24,800 | $ 28,800 |
SERVICING RIGHTS, AT FAIR VAL_3
SERVICING RIGHTS, AT FAIR VALUE - Components of Service Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | $ 141,170,931 | $ 162,112,965 |
Conventional | ||
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | 104,074,252 | 127,270,097 |
Government | ||
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | $ 37,096,679 | $ 34,842,868 |
SERVICING RIGHTS, AT FAIR VAL_4
SERVICING RIGHTS, AT FAIR VALUE - Unpaid Principal of Servicing Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | $ 141,170,931 | $ 162,112,965 |
Percentage of servicing portfolio in forbearance resulting from COVID-19 | 0.20% | 0.60% |
Current loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | $ 139,295,226 | $ 160,302,966 |
Loans 30 - 89 days delinquent | ||
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | 703,285 | 504,467 |
Loans 90 or more days delinquent or in foreclosure | ||
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | $ 1,172,420 | $ 1,305,532 |
SERVICING RIGHTS, AT FAIR VAL_5
SERVICING RIGHTS, AT FAIR VALUE - Change in Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance at beginning of period | $ 1,999,402 | $ 1,124,302 | $ 444,443 |
Servicing rights additions | 647,716 | 1,610,596 | 986,050 |
Sales proceeds, net | (754,597) | (382,271) | (9,881) |
Due to changes in valuation inputs or assumptions | 363,064 | 68,399 | (95,764) |
Due to collection/realization of cash flows | (230,449) | (421,624) | (200,546) |
Balance at end of period | $ 2,025,136 | $ 1,999,402 | $ 1,124,302 |
SERVICING RIGHTS, AT FAIR VAL_6
SERVICING RIGHTS, AT FAIR VALUE - Component of Loan Servicing Fee Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |||
Contractual servicing fees | $ 423,528 | $ 382,501 | $ 174,532 |
Late, ancillary and other fees | 25,622 | 11,179 | 11,363 |
Servicing fee income | $ 449,150 | $ 393,680 | $ 185,895 |
SERVICING RIGHTS, AT FAIR VAL_7
SERVICING RIGHTS, AT FAIR VALUE - Changes in Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |||
Due to changes in valuation inputs or assumptions | $ 363,064 | $ 68,399 | $ (95,764) |
Due to collection/realization of cash flows | (230,449) | (421,624) | (200,546) |
Realized losses on sales of servicing rights | (3,663) | (9,759) | (2,701) |
Net (loss) gain from derivatives hedging servicing rights | (323,309) | (82,878) | 154,663 |
Changes in fair value of servicing rights, net | $ (194,357) | $ (445,862) | $ (144,348) |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Changes in fair value of servicing rights, net | Changes in fair value of servicing rights, net | Changes in fair value of servicing rights, net |
SERVICING RIGHTS, AT FAIR VAL_8
SERVICING RIGHTS, AT FAIR VALUE - Servicing Rights Sensitivity Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Transfers and Servicing [Abstract] | ||
Fair Value of Servicing Rights, net | $ 2,025,136 | $ 1,999,402 |
Discount Rate, Increase 1% | (81,431) | (85,066) |
Discount Rate, Increase 2% | (157,281) | (163,255) |
Cost of Servicing. Increase 10% | (19,017) | (20,843) |
Cost of Servicing. Increase 20% | (38,127) | (41,727) |
Prepayment Speed, Increase 10% | (18,863) | (76,532) |
Prepayment Speed, Increase 20% | $ (37,546) | $ (148,556) |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Realized and Unrealized Gains on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | $ 757,185 | $ (44,064) | $ (115,008) |
Derivative assets, at fair value | 39,411 | 194,665 | |
Derivative liabilities, at fair value | $ 67,492 | $ 37,797 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues, Net of Interest Expense | Revenues, Net of Interest Expense | Revenues, Net of Interest Expense |
Interest rate lock commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | $ (157,030) | $ (466,425) | $ 518,837 |
Notional, assets | 1,591,807 | 11,530,721 | |
Derivative assets, at fair value | 29,374 | 184,383 | |
Notional, liabilities | 622,706 | 1,125,911 | |
Derivative liabilities, at fair value | 5,784 | 3,763 | |
Forward sale contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional, assets | 309,809 | 19,482,705 | |
Derivative assets, at fair value | 6,676 | 5,358 | |
Notional, liabilities | 2,963,685 | 13,171,462 | |
Derivative liabilities, at fair value | 43,482 | 2,964 | |
Forward sale contracts | Gain on origination and sale of loans, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | 1,195,708 | 540,811 | (748,245) |
Forward sale contracts | Change in fair value of servicing rights, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | (114,244) | (89,127) | 140,173 |
Put options on treasuries | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional, assets | 0 | 0 | |
Derivative assets, at fair value | 0 | 0 | |
Notional, liabilities | 8,050 | 16,980 | |
Derivative liabilities, at fair value | 10,831 | 31,070 | |
Interest rate swap futures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional, assets | 0 | 2,640 | |
Derivative assets, at fair value | 0 | 4,924 | |
Notional, liabilities | 211 | 0 | |
Derivative liabilities, at fair value | 7,395 | 0 | |
Interest rate swap futures | Gain on origination and sale of loans, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | (81,259) | (111,300) | (13,151) |
Interest rate swap futures | Change in fair value of servicing rights, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | (201,259) | 9,071 | 16,708 |
MBS put options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional, assets | 400,000 | ||
Derivative assets, at fair value | 3,361 | ||
Notional, liabilities | 0 | ||
Derivative liabilities, at fair value | 0 | ||
Put options | Gain on origination and sale of loans, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | 123,075 | 75,728 | (27,112) |
Put options | Change in fair value of servicing rights, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | $ (7,806) | $ (2,822) | $ (2,218) |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | ||||
Goodwill, beginning balance | $ 40,736 | $ 40,736 | ||
Goodwill, impairment loss | $ (40,700) | (40,736) | 0 | $ 0 |
Goodwill, ending balance | 0 | 40,736 | 40,736 | |
Other intangible assets | ||||
Other intangible assets, beginning balance | 1,581 | 2,090 | ||
Amortization | (205) | (509) | ||
Impairment loss | $ (1,400) | (1,376) | ||
Other intangible assets, ending balance | 0 | 1,581 | 2,090 | |
Total | ||||
Goodwill and intangible assets, beginning balance | 42,317 | 42,826 | ||
Amortization | (205) | (509) | ||
Goodwill and intangible asset impairment | (42,112) | |||
Goodwill and intangible assets, ending balance | $ 0 | $ 42,317 | $ 42,826 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 40,700 | $ 40,736 | $ 0 | $ 0 |
Impairment charge | $ 1,400 | $ 1,376 |
VARIABLE INTEREST ENTITIES - Co
VARIABLE INTEREST ENTITIES - Consolidated VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Loans held for sale, at fair value | $ 2,373,427 | $ 8,136,817 |
Servicing rights, at fair value | 2,037,447 | 2,006,712 |
Prepaid expenses and other assets | 155,982 | 140,315 |
Total assets | 6,609,934 | 11,812,313 |
Warehouse and other lines of credit | 2,146,602 | 7,457,199 |
Long-term debt | 2,289,319 | 1,628,208 |
Total liabilities | 5,688,461 | 10,182,953 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Loans held for sale, at fair value | 497,574 | 2,557,490 |
Restricted cash | 6,735 | 100,494 |
Servicing rights, at fair value | 544,729 | 400,678 |
Prepaid expenses and other assets | 54,887 | 17,756 |
Total assets | 1,103,925 | 3,076,418 |
Warehouse and other lines of credit | 500,000 | 2,600,000 |
Total liabilities | 865,024 | 2,829,203 |
Variable Interest Entity, Primary Beneficiary | MSR facilities | ||
Variable Interest Entity [Line Items] | ||
Long-term debt | 116,874 | 15,000 |
Variable Interest Entity, Primary Beneficiary | Servicing advance facilities | ||
Variable Interest Entity [Line Items] | ||
Long-term debt | 48,484 | 15,070 |
Variable Interest Entity, Primary Beneficiary | Term notes | ||
Variable Interest Entity [Line Items] | ||
Long-term debt | $ 199,666 | $ 199,133 |
VARIABLE INTEREST ENTITIES - No
VARIABLE INTEREST ENTITIES - Nonconsolidated VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Retained interests | $ 94,243 | $ 72,874 |
Total assets | 6,609,934 | 11,812,313 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 114,653 | 91,427 |
Maximum exposure to loss | 114,653 | 91,427 |
Variable Interest Entity, Not Primary Beneficiary | Corporate Joint Venture | ||
Variable Interest Entity [Line Items] | ||
Investments in joint ventures | 20,410 | 18,553 |
Maximum exposure to loss | 20,410 | 18,553 |
Total assets in VIEs | 38,682 | 20,783 |
Variable Interest Entity, Not Primary Beneficiary | Retained Interests | ||
Variable Interest Entity [Line Items] | ||
Retained interests | 94,243 | 72,874 |
Maximum exposure to loss | 94,243 | 72,874 |
Total assets in VIEs | $ 2,309,739 | $ 1,424,857 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Corporate Joint Venture | |||
Variable Interest Entity [Line Items] | |||
Remaining principal balance of loans | $ 38,682 | $ 20,783 | |
Pro rata share of net earnings in joint ventures | $ 10,400 | 17,200 | 11,900 |
Pledged as Collateral | |||
Variable Interest Entity [Line Items] | |||
Remaining principal balance of loans | 2,309,739 | $ 1,424,857 | |
Pledged as Collateral | Loans 90 days or more past due | |||
Variable Interest Entity [Line Items] | |||
Remaining principal balance of loans | $ 4,900 |
ACCOUNTS RECEIVABLE, NET - Sche
ACCOUNTS RECEIVABLE, NET - Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Margin call receivable | $ 36,270 | $ 1,740 |
Servicing sales, net | 27,021 | 19,134 |
Servicing | 24,917 | 6,527 |
Joint ventures | 15,843 | 2,160 |
Loan sales | 10,733 | 7,551 |
Servicing advance facilities | 9,278 | 0 |
Loan principal and interest | 4,502 | 5,835 |
Loan origination | 3,623 | 6,131 |
Settlement services | 1,374 | 6,293 |
Other | 11,718 | 812 |
Total accounts receivable, net | $ 145,279 | $ 56,183 |
ACCOUNTS RECEIVABLE, NET - Addi
ACCOUNTS RECEIVABLE, NET - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Allowance for credit losses | $ 2.8 | $ 0.9 | |
Accounts receivable write-offs | $ 0.4 | $ 1.5 | $ 0.5 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 290,158 | $ 340,803 |
Accumulated depreciation and amortization | (197,269) | (236,541) |
Property and equipment, net | 92,889 | 104,262 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 93,818 | 146,456 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 6,837 | 20,254 |
Software development | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 147,424 | 88,822 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 29,150 | 44,706 |
Work in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 12,929 | $ 40,565 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 42 | $ 35 | $ 35.2 |
Depreciation expense of software development | 20.4 | $ 11.5 | $ 11.5 |
Impairment charges | $ 12.6 |
PROPERTY AND EQUIPMENT, NET - C
PROPERTY AND EQUIPMENT, NET - Capitalized Computer Software Development Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Cost | $ 147,424 | $ 88,822 |
Accumulated amortization | (95,777) | (76,495) |
Software development, net | $ 51,647 | $ 12,327 |
PROPERTY AND EQUIPMENT, NET - F
PROPERTY AND EQUIPMENT, NET - Future Depreciation Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
2023 | $ 24,061 | |
2024 | 19,411 | |
2025 | 8,175 | |
Software development, net | $ 51,647 | $ 12,327 |
WAREHOUSE AND OTHER LINES OF _3
WAREHOUSE AND OTHER LINES OF CREDIT - Additional Information (Details) | 12 Months Ended | |||||||
Oct. 30, 2021 | Dec. 31, 2022 USD ($) lineOfCredit | Dec. 31, 2021 USD ($) | Oct. 31, 2021 USD ($) | Apr. 30, 2021 USD ($) | Feb. 28, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2020 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Number of lines of credit held | lineOfCredit | 9 | |||||||
Restricted cash | $ 116,545,000 | $ 201,025,000 | ||||||
Warehouse Agreement Borrowings | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Cash Collateral for Borrowed Securities | 11,000,000 | 122,500,000 | ||||||
Restricted cash | $ 4,300,000 | $ 8,000,000 | ||||||
Warehouse Agreement Borrowings | Minimum | Base Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 1.37% | |||||||
Warehouse Agreement Borrowings | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 2.25% | |||||||
Warehouse and Revolving Credit Facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 4,050,000,000 | |||||||
Securitization Facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, term | 3 years | |||||||
Number of securitization facilities | lineOfCredit | 1 | |||||||
Securitization Facilities | 2020-1 Securitization Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 600,000,000 | |||||||
Securitization Facilities | 2020-2 Securitization Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Securitization Facilities | 2021-1 Securitization Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Securitization Facilities | 2021-2 Securitization Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Securitization Facilities | 2021-3 Securitization Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Debt instrument, term | 3 years |
WAREHOUSE AND OTHER LINES OF _4
WAREHOUSE AND OTHER LINES OF CREDIT - Warehouse Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Warehouse agreement borrowings | $ 2,146,602 | $ 7,457,199 |
GMSR VFN | Secured credit facilities | GNMA MSRs | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | 116,900 | |
Warehouse and Revolving Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 1,400,000 | |
Uncommitted Amount | 2,650,000 | |
Total Facility Amount | 4,050,000 | |
Warehouse agreement borrowings | 2,146,602 | 7,457,199 |
Warehouse and Revolving Credit Facilities | Facility 1 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 400,000 | |
Uncommitted Amount | 350,000 | |
Total Facility Amount | 750,000 | |
Warehouse agreement borrowings | 382,098 | 851,088 |
Warehouse and Revolving Credit Facilities | Facility 2 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 300,000 | |
Total Facility Amount | 300,000 | |
Warehouse agreement borrowings | 236,144 | 295,743 |
Warehouse and Revolving Credit Facilities | Facility 3 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 300,000 | |
Total Facility Amount | 300,000 | |
Warehouse agreement borrowings | 177,900 | 459,018 |
Warehouse and Revolving Credit Facilities | Facility 4 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 300,000 | |
Total Facility Amount | 300,000 | |
Warehouse agreement borrowings | 202,548 | 266,230 |
Warehouse and Revolving Credit Facilities | Facility 5 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 200,000 | |
Total Facility Amount | 200,000 | |
Warehouse agreement borrowings | 0 | 391 |
Warehouse and Revolving Credit Facilities | Facility 6 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 100,000 | |
Uncommitted Amount | 500,000 | |
Total Facility Amount | 600,000 | |
Warehouse agreement borrowings | 180,273 | 583,449 |
Warehouse and Revolving Credit Facilities | Facility 7 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 400,000 | |
Uncommitted Amount | 400,000 | |
Total Facility Amount | 800,000 | |
Warehouse agreement borrowings | 295,064 | 1,410,367 |
Warehouse and Revolving Credit Facilities | Facility 8 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Warehouse agreement borrowings | 0 | 361,783 |
Warehouse and Revolving Credit Facilities | Facility 9 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Warehouse agreement borrowings | 0 | 600,000 |
Warehouse and Revolving Credit Facilities | Facility 10 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Warehouse agreement borrowings | 0 | 500,000 |
Warehouse and Revolving Credit Facilities | Facility 11 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Warehouse agreement borrowings | 0 | 263,516 |
Warehouse and Revolving Credit Facilities | Facility 12 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Warehouse agreement borrowings | 0 | 500,000 |
Warehouse and Revolving Credit Facilities | Facility 13 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Warehouse agreement borrowings | 0 | 500,000 |
Warehouse and Revolving Credit Facilities | Facility 14 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 300,000 | |
Total Facility Amount | 300,000 | |
Warehouse agreement borrowings | 172,575 | 365,614 |
Warehouse and Revolving Credit Facilities | Facility 15 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 500,000 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 500,000 | |
Warehouse agreement borrowings | $ 500,000 | $ 500,000 |
WAREHOUSE AND OTHER LINES OF _5
WAREHOUSE AND OTHER LINES OF CREDIT - Information on Warehouse Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | |||
Loans held for sale, at fair value | $ 2,373,427 | $ 8,136,817 | |
Warehouse Agreement Borrowings | |||
Line of Credit Facility [Line Items] | |||
Maximum outstanding balance during the period | 7,672,559 | 9,180,276 | $ 7,037,828 |
Average balance outstanding during the period | 4,127,822 | 8,149,855 | 3,974,625 |
Loans held for sale, at fair value | $ 2,214,656 | $ 7,815,347 | $ 6,752,909 |
Weighted average interest rate during the period | 2.97% | 2.21% | 2.54% |
DEBT OBLIGATIONS - Information
DEBT OBLIGATIONS - Information on Outstanding Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,289,319 | $ 1,628,208 |
Secured debt obligations, net | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,297,497 | 542,892 |
Secured debt obligations, net | Term Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 199,666 | 199,133 |
Secured debt obligations, net | Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,097,831 | 343,759 |
Secured debt obligations, net | MSR facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt | 963,834 | 262,250 |
Secured debt obligations, net | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt | 85,513 | 66,439 |
Secured debt obligations, net | Servicing advance facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt | 48,484 | 15,070 |
Unsecured debt obligations, net: | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 991,822 | $ 1,085,316 |
DEBT OBLIGATIONS - MSR Faciliti
DEBT OBLIGATIONS - MSR Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2014 |
Debt Instrument [Line Items] | ||||
Servicing rights, at fair value | $ 2,037,447 | $ 2,006,712 | ||
Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Servicing rights, at fair value | 544,729 | 400,678 | ||
Secured credit facilities | GMSR VFN | GNMA MSRs | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | 116,900 | |||
Secured credit facilities | GMSR VFN | Maximum | GNMA MSRs | ||||
Debt Instrument [Line Items] | ||||
Face amount | 200,000 | |||
Secured credit facilities | Original Secured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 25,000 | |||
Outstanding balance | 200,000 | |||
Available borrowing capacity | 200,000 | |||
Secured credit facilities | Original Secured Credit Facility | Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Servicing rights, at fair value | 283,200 | |||
Secured credit facilities | Third Secured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | 300,000 | |||
Option to increase borrowing capacity | $ 500,000 | |||
Deferred financing costs | 500 | |||
Secured credit facilities | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | 300,000 | |||
Secured credit facilities | Revolving credit facility | Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Servicing rights, at fair value | 522,800 | |||
Secured credit facilities | Fourth Secured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 500,000 | |||
Servicing rights, at fair value | 626,800 | |||
Outstanding balance | 348,000 | |||
Deferred financing costs | $ 500 |
DEBT OBLIGATIONS - Securities F
DEBT OBLIGATIONS - Securities Financing Facilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Retained interests | $ 94,243 | $ 72,874 |
Variable Interest Entity, Not Primary Beneficiary | Pledged as Collateral | ||
Debt Instrument [Line Items] | ||
Retained interests | $ 94,243 | $ 72,874 |
Secured credit facilities | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Debt instrument, term (in days) | 90 days | |
Outstanding balance | $ 85,500 | |
Secured credit facilities | Minimum | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Advance rate | 50% | |
Secured credit facilities | Maximum | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Advance rate | 90% |
DEBT OBLIGATIONS - Servicing Ad
DEBT OBLIGATIONS - Servicing Advance Facilities (Details) - Secured credit facilities - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2020 |
2020-VF1 Notes | LDLLC's Right to Reimbursement for Advances Made | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 22.7 | |
GMSR VFN | Servicing Advance Reimbursement Amounts | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 25.8 | |
Advance Receivables Trust | 2020-VF1 Notes | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 100 |
DEBT OBLIGATIONS - Term Notes (
DEBT OBLIGATIONS - Term Notes (Details) - Secured credit facilities - Term Notes $ in Millions | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Outstanding balance, gross | $ 200 |
Deferred financing costs | $ 0.3 |
DEBT OBLIGATIONS - Senior Notes
DEBT OBLIGATIONS - Senior Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Outstanding balance | $ 2,289,319 | $ 1,628,208 | ||||
Gain on extinguishment of debt | 10,528 | $ 0 | $ 0 | |||
Unsecured term loan | 6.50% Senior Unsecured Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 500,000 | |||||
Stated interest rate (as a percent) | 6.50% | |||||
Outstanding balance | 500,000 | |||||
Deferred financing costs | 5,100 | |||||
Unsecured term loan | 6.125% Senior Unsecured Notes Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 600,000 | |||||
Stated interest rate (as a percent) | 6.125% | |||||
Outstanding balance | 502,500 | |||||
Deferred financing costs | $ 5,600 | |||||
Redemption price (as a percent) | 100% | |||||
Extinguishment of debt, amount | $ 97,500 | |||||
Extinguishment of debt, purchase price, percentage of par | 87.90% | |||||
Gain on extinguishment of debt | $ 10,500 | |||||
Unsecured term loan | 6.125% Senior Unsecured Notes Due 2028 | Any time prior to April 1, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price (as a percent) | 106.125% | |||||
Percentage of principal amount to be redeemed | 40% |
DEBT OBLIGATIONS - Interest Exp
DEBT OBLIGATIONS - Interest Expense (Details) - Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 0.75% |
Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 3.50% |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 139,714 | $ 136,619 |
Deferred tax liability | 122,404 | 193,020 |
Loan loss obligation for sold loans | 70,797 | 29,877 |
Accrued compensation and benefits | 52,759 | 154,154 |
TRA liability | 50,730 | 32,865 |
Joint ventures | 25,619 | 0 |
Servicing rights, at fair value | 12,311 | 7,310 |
Dividends and dividend equivalents payable | 7,130 | 38,057 |
Accrued pricing adjustments on sold loans | 3,167 | 12,336 |
Income tax payable | 0 | 12,821 |
Other | 4,065 | 7,385 |
Total accounts payable, accrued expenses and other liabilities | $ 488,696 | $ 624,444 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total accounts payable, accrued expenses and other liabilities | Total accounts payable, accrued expenses and other liabilities |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ (162) | $ 8,936 | $ 1,745 |
State | 846 | 3,120 | 581 |
Total current | 684 | 12,056 | 2,326 |
Deferred | |||
Federal | (66,624) | 26,623 | (82) |
State | (13,652) | 4,692 | 4 |
Total deferred | (80,276) | 31,315 | (78) |
Total (benefit) provision for income taxes | $ (79,592) | $ 43,371 | $ 2,248 |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the statutory federal income tax rate to effective income tax rate | ||||
Federal income tax at statutory rate | 21% | 21% | 21% | |
State and local income taxes (net of federal benefit) | 3% | 0.90% | 0% | |
Non-controlling interests | (10.30%) | (16.20%) | (20.90%) | |
Goodwill impairment | (0.60%) | 0% | 0% | |
State rate change | (1.50%) | 0% | 0% | |
Change in valuation allowance | (0.10%) | 0% | 0% | |
Other, net | 0% | 0.80% | 0% | |
Effective income tax rate | 11.50% | 6.50% | 0.10% |
INCOME TAXES - Components of Ne
INCOME TAXES - Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Accrued compensation | $ 41 | $ 0 |
Net operating loss | 70,010 | 0 |
Tax credits | 447 | 0 |
Depreciation | 7 | 0 |
State taxes | 0 | 437 |
Gross deferred tax assets before valuation allowance | 70,505 | 437 |
Valuation allowance | (386) | 0 |
Net deferred tax assets | 70,119 | 437 |
Deferred tax liabilities: | ||
Outside basis difference | 191,437 | 193,353 |
Acquired intangible assets | 145 | 0 |
Total deferred tax liabilities | 191,582 | 193,353 |
Net deferred tax liabilities | $ (121,463) | $ (192,916) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Combined federal and state rate, percent | 27.40% | 26% | |
Interest or penalties related to uncertain tax positions | $ 0 | $ 0 | $ 0 |
TRA liability | $ 50,730 | $ 32,865 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 654 | $ 0 | $ 282 |
Increases related to positions taken during prior years | 540 | 0 | |
Increases related to positions taken during the current year | 114 | 0 | |
Decreases due to a lapse of applicable statute of limitations | (157) | 0 | (282) |
Ending balance | $ 497 | $ 654 | $ 0 |
LEASES - Additional Information
LEASES - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) lease | |
Lessee, Lease, Description [Line Items] | |
Operating lease, impairment loss | $ 16.1 |
Number of operating leases that have not yet commenced | lease | 4 |
Aggregate undiscounted required payment for operating leases that have not yet commenced | $ 6.1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 6 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease expense: | |||
Operating leases | $ 24,961 | $ 28,322 | $ 30,350 |
Short-term leases | 2,373 | 747 | 688 |
Sublease income | (187) | (1,049) | (1,518) |
Lease expense, net included in occupancy expense | 27,147 | 28,020 | $ 29,520 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Cash paid for operating leases | 31,350 | 31,377 | |
New leases entered into during the year | $ 16,922 | $ 11,826 | |
Weighted average remaining lease term (years) | 3 years 7 months 6 days | 3 years 9 months 18 days | |
Weighted average discount rate | 5.70% | 7% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 23,576 | |
2024 | 18,313 | |
2025 | 11,582 | |
2026 | 7,146 | |
2027 | 6,287 | |
Thereafter | 2,242 | |
Total operating lease payments | 69,146 | |
Less: Imputed interest | (7,471) | |
Operating lease liability | $ 61,675 | $ 71,932 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - Corporate Joint Venture - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Loan processing and administrative services fee income | $ 18,534 | $ 15,023 | $ 14,483 |
Loan origination broker fees expense | 120,392 | 90,266 | $ 80,636 |
Amounts (payable to) receivable from joint ventures | $ (9,776) | $ 1,855 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Tax receivable agreement, payment | $ 2,600,000 | $ 0 |
EQUITY - Additional Information
EQUITY - Additional Information (Details) $ in Thousands | Feb. 11, 2021 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Equity [Abstract] | |||
Stock, exchange ratio | 1 | ||
Noncontrolling interest | $ 487,974 | $ 1,105,803 |
EQUITY - Summary of Ownership (
EQUITY - Summary of Ownership (Details) - LD Holdings | Dec. 31, 2022 shares |
Noncontrolling Interest [Line Items] | |
Holdco Units (in shares) | 315,216,801 |
Ownership percentage | 100% |
loanDepot, Inc. | |
Noncontrolling Interest [Line Items] | |
Holdco Units (in shares) | 169,523,682 |
Ownership percentage by noncontrolling owners | 53.78% |
Continuing LLC Members | |
Noncontrolling Interest [Line Items] | |
Holdco Units (in shares) | 145,693,119 |
Ownership percentage by parent | 46.22% |
COMPENSATION PLANS - Additional
COMPENSATION PLANS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 20.6 | $ 67.1 | $ 8.5 |
Unrecognized compensation | $ 68.1 | ||
Employer matching contribution, percent of match | 50% | ||
Matching contribution, percent of employees' gross pay | 6% | ||
Matching contributions | $ 12.9 | $ 25.4 | $ 18.4 |
Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized | 2,500,000,000 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Holdco Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognition period | 2 years 4 months 13 days | ||
Service-Based Restricted Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Service-Based Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price of common stock, percent | 85% | ||
Authorized compensation withheld, purchase, common stock | 10% | ||
Employee Stock | Maximum | Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 10 years | ||
2021 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized | 16,500,000 | ||
2022 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized | 5,000,000 | ||
2022 Plan | Employee Stock | Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for issuance (in shares) | 2,000,000 |
COMPENSATION PLANS - Valuation
COMPENSATION PLANS - Valuation Assumptions (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average risk-free interest rate | 3.69% |
Expected volatility | 70% |
Expected life | 5 years 7 months 9 days |
Fair value per share (in usd per share) | $ 1.10 |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average risk-free interest rate | 3.77% |
Expected volatility | 70% |
Expected life | 6 months |
Fair value per share (in usd per share) | $ 1.60 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average risk-free interest rate | 3.20% |
Expected volatility | 70% |
COMPENSATION PLANS - Stock Opti
COMPENSATION PLANS - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | ||
Exercisable (in shares) | 0 | |
Weighted-Average Remaining Contractual Term | ||
Weighted-average remaining contractual term, vested and expected to vest | 5 years 7 months 6 days | |
Stock Options | ||
Shares | ||
Outstanding - beginning of period (in shares) | 0 | |
Granted (in shares) | 7,000,000 | |
Outstanding - end of period (in shares) | 7,000,000 | 0 |
Vested and expected to vest (in shares) | 7,000,000 | |
Weighted Average Exercise Price | ||
Granted (in usd per share) | $ 1.73 | |
Granted (in usd per share) | 1.73 | |
Vested (in usd per share) | $ 1.73 | |
Weighted-Average Remaining Contractual Term | ||
Weighted-average remaining contractual term, outstanding | 5 years 7 months 6 days | 0 years |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 480 | |
Aggregate intrinsic value, vested and expected to vest | $ 480 |
COMPENSATION PLANS - Summary of
COMPENSATION PLANS - Summary of RSU Activity (Details) - RSUs | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Shares | |
Unvested - beginning of period (in shares) | shares | 1,765,763 |
Granted (in shares) | shares | 24,841,607 |
Vested (in shares) | shares | (1,126,808) |
Forfeited/Cancelled (in shares) | shares | (376,962) |
Unvested - end of period (in shares) | shares | 25,103,600 |
Weighted Average Exercise Price | |
Unvested - beginning of period (in usd per share) | $ / shares | $ 16.60 |
Granted (in usd per share) | $ / shares | 2.78 |
Vested (in usd per share) | $ / shares | 7.36 |
Forfeited/Cancelled (in usd per share) | $ / shares | 10.85 |
Unvested - end of period (in usd per share) | $ / shares | $ 3.43 |
COMPENSATION PLANS - Holdco Uni
COMPENSATION PLANS - Holdco Unit Activity (Details) - Holdco Units | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Shares | |
Unvested - beginning of period (in shares) | shares | 11,610,142 |
Vested (in shares) | shares | (4,258,580) |
Forfeited/Cancelled (in shares) | shares | (1,607,362) |
Unvested - end of period (in shares) | shares | 5,744,200 |
Weighted Average Exercise Price | |
Unvested - beginning of period (in usd per share) | $ / shares | $ 0.50 |
Vested (in usd per share) | $ / shares | 0.49 |
Forfeited/Cancelled (in usd per share) | $ / shares | 0.50 |
Unvested - end of period (in usd per share) | $ / shares | $ 0.50 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 11 Months Ended | 12 Months Ended | 23 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Basic earnings per share: | |||||
Net (loss) earnings attributable to loanDepot, Inc. | $ (273,020) | $ 113,524 | $ 0 | ||
Weighted average shares - basic (in shares) | 156,030,350 | 129,998,894 | |||
Earnings per share - basic (in usd per share) | $ (1.75) | $ 0.87 | |||
Diluted earnings per share: | |||||
Net (loss) income allocated to common stockholders - diluted | $ (273,020) | $ 113,524 | |||
Weighted average shares - diluted (in shares) | 156,030,350 | 129,998,894 | |||
Earnings per share - diluted (in usd per share) | $ (1.75) | $ 0.87 | |||
RSUs | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities (in shares) | 1,192,211 | 14,278,795 | |||
Class B | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common stock, shares, outstanding | 0 | 0 | 0 | 0 | |
Class A | |||||
Basic earnings per share: | |||||
Net (loss) earnings attributable to loanDepot, Inc. | $ (103,026) | $ 13,998 | |||
Weighted average shares - basic (in shares) | 58,879,239 | 16,029,314 | |||
Earnings per share - basic (in usd per share) | $ (1.75) | $ 0.87 | |||
Diluted earnings per share: | |||||
Net (loss) income allocated to common stockholders - diluted | $ (103,026) | $ 13,998 | |||
Weighted average shares - diluted (in shares) | 58,879,239 | 16,029,314 | |||
Earnings per share - diluted (in usd per share) | $ (1.75) | $ 0.87 | |||
Class D | |||||
Basic earnings per share: | |||||
Net (loss) earnings attributable to loanDepot, Inc. | $ (169,994) | $ 99,526 | |||
Weighted average shares - basic (in shares) | 97,151,111 | 113,969,580 | |||
Earnings per share - basic (in usd per share) | $ (1.75) | $ 0.87 | |||
Diluted earnings per share: | |||||
Net (loss) income allocated to common stockholders - diluted | $ (169,994) | $ 99,526 | |||
Weighted average shares - diluted (in shares) | 97,151,111 | 113,969,580 | |||
Earnings per share - diluted (in usd per share) | $ (1.75) | $ 0.87 | |||
Class C | Common shares | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities (in shares) | 192,465,222 | 163,541,101 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Commitments [Line Items] | ||||
Customer escrow balance | $ 5,100 | $ 21,100 | ||
Financing receivable, allowance for credit loss | $ 70,797 | 29,877 | $ 33,591 | $ 17,677 |
Percent of cash tax savings paid | 85% | |||
TRA liability | $ 50,730 | 32,865 | ||
MSR facilities | ||||
Other Commitments [Line Items] | ||||
Financing receivable, allowance for credit loss | 1,100 | 400 | ||
Employment Litigation | ||||
Other Commitments [Line Items] | ||||
Loss contingency, damages sought, value | 75,000 | |||
Commitments to Extend Credit | ||||
Other Commitments [Line Items] | ||||
Commitments to originate loans | $ 2,200,000 | $ 12,700,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Loan Loss Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 29,877 | $ 33,591 | $ 17,677 |
Provision for loan loss obligations | 136,993 | 7,185 | 25,973 |
Charge-offs | (96,073) | (10,899) | (10,059) |
Balance at end of period | $ 70,797 | $ 29,877 | $ 33,591 |
REGULATORY CAPITAL AND LIQUID_2
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Mortgage Banking [Abstract] | |
Minimum adjusted net worth balance requirement | $ 129.8 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event $ in Thousands | 2 Months Ended | |
Mar. 13, 2023 USD ($) | Mar. 15, 2023 USD ($) | |
Large Money Center Bank | ||
Subsequent Event [Line Items] | ||
Transfer of corporate cash balances | $ 225,000 | |
Warehouse Agreement Borrowings | Signature Bridge Bank, N.A. And Other | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 300,000 | |
Warehouse Agreement Borrowings | Signature Bridge Bank, N.A. | ||
Subsequent Event [Line Items] | ||
Line of credit facility, participant percentage | 0.50 | |
Securitization Facilities | Signature Bridge Bank, N.A. | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 300,000 |
Uncategorized Items - ldi-20221
Label | Element | Value |
Adjustments To Additional Paid In Capital, Tax Adjustments | ldi_AdjustmentsToAdditionalPaidInCapitalTaxAdjustments | $ (203,240,000) |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 0 |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 66,725,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | (12,852,000) |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 63,338,000 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 160,617,000 |
IPO [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 0 |
Over-Allotment Option [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 0 |
Additional Paid-in Capital [Member] | ||
Adjustments To Additional Paid In Capital, Tax Adjustments | ldi_AdjustmentsToAdditionalPaidInCapitalTaxAdjustments | (203,240,000) |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 740,629,000 |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 27,691,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | (7,000) |
Retained Earnings [Member] | ||
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 27,343,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 113,524,000 |
Noncontrolling Interest [Member] | ||
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | (740,934,000) |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 39,034,000 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 160,617,000 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 35,995,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 215,024,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 294,598,000 |
Treasury Stock, Common [Member] | ||
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | (12,852,000) |
Common Class A [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | $ (2,000) |
Stock Issued During Period, Shares, Reorganization | ldi_StockIssuedDuringPeriodSharesReorganization | 2,215,687 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | $ 31,000 |
Stock Vested During Period, Shares | ldi_StockVestedDuringPeriodShares | 29,823,749 |
Common Class A [Member] | Common Stock [Member] | IPO [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ (4,000) |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 3,850,000 |
Common Class A [Member] | Common Stock [Member] | Over-Allotment Option [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 1,000 |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 577,500 |
Common Class C [Member] | ||
Dividends | us-gaap_Dividends | $ 167,452,000 |
Common Class C [Member] | Retained Earnings [Member] | ||
Dividends | us-gaap_Dividends | 69,467,000 |
Common Class C [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | $ (182,000) |
Stock Issued During Period, Shares, Reorganization | ldi_StockIssuedDuringPeriodSharesReorganization | 181,789,329 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | $ (6,000) |
Stock Vested During Period, Shares | ldi_StockVestedDuringPeriodShares | (6,307,061) |
Common Class C [Member] | Common Stock [Member] | IPO [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 2,000 |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (2,394,000) |
Common Class C [Member] | Common Stock [Member] | Over-Allotment Option [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ (1,000) |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (359,100) |
Common Class C [Member] | Noncontrolling Interest [Member] | ||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | $ 97,985,000 |
Common Class D [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | $ (121,000) |
Stock Issued During Period, Shares, Reorganization | ldi_StockIssuedDuringPeriodSharesReorganization | 121,368,600 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | $ (18,000) |
Stock Vested During Period, Shares | ldi_StockVestedDuringPeriodShares | (18,872,116) |
Common Class D [Member] | Common Stock [Member] | IPO [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 2,000 |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (1,456,000) |
Common Class D [Member] | Common Stock [Member] | Over-Allotment Option [Member] | ||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (218,400) |
Class X Common Unit [Member] | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | us-gaap_MinorityInterestDecreaseFromRedemptions | $ (338,000) |
Class X Common Unit [Member] | Noncontrolling Interest [Member] | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | us-gaap_MinorityInterestDecreaseFromRedemptions | (338,000) |
Class A And D Common Stock [Member] | ||
Dividends | us-gaap_Dividends | 109,963,000 |
Class A And D Common Stock [Member] | Retained Earnings [Member] | ||
Dividends | us-gaap_Dividends | 45,690,000 |
Class A And D Common Stock [Member] | Noncontrolling Interest [Member] | ||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | $ 64,273,000 |