COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2023 | May 10, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 6561 Irvine Center Drive, | |
Entity Address, City or Town | Irvine, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92618 | |
City Area Code | (888) | |
Local Phone Number | 337-6888 | |
Title of 12(b) Security | Class A Common Stock, $0.001 per value per share | |
Trading Symbol | LDI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001831631 | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 76,789,232 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 | |
Class C | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 144,080,314 | |
Class D | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 97,026,671 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 798,119 | $ 863,956 |
Restricted cash | 90,084 | 116,545 |
Accounts receivable, net | 99,381 | 145,279 |
Loans held for sale, at fair value (includes $506,808 and $497,574 pledged to creditors in securitization trusts at March 31, 2023 and December 31, 2022, respectively) | 2,039,367 | 2,373,427 |
Derivative assets, at fair value | 84,624 | 39,411 |
Servicing rights, at fair value (includes $553,236 and $544,729 pledged to creditors in securitization trusts at March 31, 2023 and December 31, 2022, respectively) | 2,028,788 | 2,037,447 |
Trading securities, at fair value | 95,561 | 94,243 |
Property and equipment, net | 88,877 | 92,889 |
Operating lease right-of-use assets | 35,362 | 35,668 |
Prepaid expenses and other assets | 139,904 | 155,982 |
Loans eligible for repurchase | 672,458 | 634,677 |
Investments in joint ventures | 18,266 | 20,410 |
Total assets | 6,190,791 | 6,609,934 |
Liabilities: | ||
Warehouse and other lines of credit | 1,830,319 | 2,146,602 |
Accounts payable, accrued expenses and other liabilities | 449,641 | 488,696 |
Derivative liabilities, at fair value | 35,662 | 67,492 |
Liability for loans eligible for repurchase | 672,458 | 634,677 |
Operating lease liability | 57,837 | 61,675 |
Debt obligations, net | 2,303,712 | 2,289,319 |
Total liabilities | 5,349,629 | 5,688,461 |
Commitments and contingencies (Note 14) | ||
Equity: | ||
Preferred stock, $0.001 par value, 50,000,000 authorized, none issued at March 31, 2023 and December 31, 2022, respectively | 0 | 0 |
Treasury stock at cost, 2,068,924 and 1,780,141 shares at March 31, 2023 and December 31, 2022, respectively | (13,853) | (13,282) |
Additional paid-in capital | 802,251 | 788,601 |
Retained deficit | (384,843) | (342,137) |
Noncontrolling interest | 437,288 | 487,974 |
Total equity | 841,162 | 921,473 |
Total liabilities and equity | 6,190,791 | 6,609,934 |
Class A | ||
Equity: | ||
Common stock, $0.001 par value | 77 | 74 |
Class B | ||
Equity: | ||
Common stock, $0.001 par value | 0 | 0 |
Class C | ||
Equity: | ||
Common stock, $0.001 par value | 145 | 146 |
Class D | ||
Equity: | ||
Common stock, $0.001 par value | $ 97 | $ 97 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Loans held for sale, at fair value | $ 2,039,367 | $ 2,373,427 |
Servicing rights, at fair value | $ 2,028,788 | $ 2,037,447 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Treasury stock, common, shares (in shares) | (2,068,924) | (1,780,141) |
Class A | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock issued (in shares) | 77,170,094 | 74,277,152 |
Class B | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock issued (in shares) | 0 | 0 |
Class C | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock issued (in shares) | 144,983,025 | 145,693,119 |
Class D | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock issued (in shares) | 97,026,671 | 97,026,671 |
Pledged as Collateral | ||
Loans held for sale, at fair value | $ 506,808 | $ 497,574 |
Servicing rights, at fair value | $ 553,236 | $ 544,729 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
REVENUES: | ||
Interest income | $ 27,958 | $ 52,965 |
Interest expense | (26,760) | (39,889) |
Net interest income | 1,198 | 13,076 |
Gain on origination and sale of loans, net | 108,152 | 363,131 |
Origination income, net | 12,016 | 59,073 |
Servicing fee income | 118,961 | 111,059 |
Change in fair value of servicing rights, net | (52,806) | (68,383) |
Other income | 20,380 | 25,355 |
Total net revenues | 207,901 | 503,311 |
EXPENSES: | ||
Personnel expense | 141,027 | 345,993 |
Marketing and advertising expense | 35,914 | 101,513 |
Direct origination expense | 17,378 | 53,157 |
General and administrative expense | 56,134 | 49,748 |
Occupancy expense | 6,081 | 9,396 |
Depreciation and amortization | 10,026 | 10,545 |
Servicing expense | 4,834 | 21,511 |
Other interest expense | 43,090 | 14,393 |
Total expenses | 314,484 | 606,256 |
Loss before income taxes | (106,583) | (102,945) |
Income tax benefit | (14,862) | (11,627) |
Net loss | (91,721) | (91,318) |
Net loss attributable to noncontrolling interests | (48,814) | (56,577) |
Net loss attributable to loanDepot, Inc. | $ (42,907) | $ (34,741) |
Loss per share: | ||
Basic (in usd per share) | $ (0.25) | $ (0.25) |
Diluted (in usd per share) | $ (0.25) | $ (0.25) |
Weighted average shares outstanding: | ||
Basic (in shares) | 170,809,818 | 139,007,890 |
Diluted (in shares) | 170,809,818 | 139,007,890 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Class C | Class A and D | Common stock Class A | Common stock Class C | Common stock Class D | Treasury Shares | Additional paid-in capital | Retained Deficit | Retained Deficit Class C | Retained Deficit Class A and D | Non-controlling Interests | Non-controlling Interests Class C | Non-controlling Interests Class A and D |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 36,466,936 | 172,729,168 | 100,822,084 | |||||||||||
Balance at beginning of period at Dec. 31, 2021 | $ 1,629,360 | $ 38 | $ 173 | $ 101 | $ (12,852) | $ 565,073 | $ (28,976) | $ 1,105,803 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Deferred taxes and other tax adjustments related to conversions and exchanges | 681 | 681 | ||||||||||||
Net issuance of common stock under stock-based compensation plans (in shares) | 7,133,482 | (2,038,280) | (3,795,413) | |||||||||||
Net issuance of common shares under stock based compensation plans | (162) | $ 7 | $ (2) | $ (4) | (163) | 89,479 | (89,479) | |||||||
Dividends | $ (14,003) | $ (11,752) | $ (6,338) | $ (5,310) | $ (7,665) | $ (6,442) | ||||||||
Stock-based compensation | 2,309 | 1,034 | 1,275 | |||||||||||
Distributions for taxes on behalf of shareholders, net | (3,946) | (1,786) | (2,160) | |||||||||||
Net loss | (91,318) | (34,741) | (56,577) | |||||||||||
Balance at end of period (in shares) at Mar. 31, 2022 | 43,600,418 | 170,690,888 | 97,026,671 | |||||||||||
Balance at end of period at Mar. 31, 2022 | 1,511,169 | $ 45 | $ 171 | $ 97 | (13,015) | 656,267 | (77,151) | 944,755 | ||||||
Balance at beginning of period (in shares) at Dec. 31, 2022 | 72,497,011 | 145,693,119 | 97,026,671 | |||||||||||
Balance at beginning of period at Dec. 31, 2022 | 921,473 | $ 74 | $ 146 | $ 97 | (13,282) | 788,601 | (342,137) | 487,974 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Deferred taxes and other tax adjustments related to conversions and exchanges | 5,181 | 5,181 | ||||||||||||
Net issuance of common stock under stock-based compensation plans (in shares) | 2,604,159 | (710,094) | 0 | |||||||||||
Net issuance of common shares under stock based compensation plans | (71) | $ 3 | $ (1) | $ 0 | (571) | 5,265 | (4,767) | |||||||
Forfeiture of accrued dividend equivalents on unvested Class A RSUs | $ 21 | $ 9 | $ 12 | |||||||||||
Stock-based compensation | 5,926 | 3,204 | 2,722 | |||||||||||
Refund of tax distributions, net | (353) | (192) | (161) | |||||||||||
Net loss | (91,721) | (42,907) | (48,814) | |||||||||||
Balance at end of period (in shares) at Mar. 31, 2023 | 75,101,170 | 144,983,025 | 97,026,671 | |||||||||||
Balance at end of period at Mar. 31, 2023 | $ 841,162 | $ 77 | $ 145 | $ 97 | $ (13,853) | $ 802,251 | $ (384,843) | $ 437,288 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) | 3 Months Ended |
Mar. 31, 2022 $ / shares | |
Class A and D | |
Dividends declared (in usd per share) | $ 0.08 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (91,721) | $ (91,318) |
Adjustments to reconcile net loss to net | ||
Depreciation and amortization expense | 10,026 | 10,545 |
Amortization of operating lease right-of-use asset | 3,386 | 5,597 |
Amortization of debt issuance costs | 1,855 | 4,195 |
Gain on origination and sale of loans | (43,016) | (442,771) |
Gain on sale of servicing rights | (191) | (20,134) |
Fair value change in trading securities | (2,486) | 7,592 |
Provision for loss obligation on sold loans and servicing rights | 9,725 | 23,347 |
Decrease in provision for deferred income taxes | (14,874) | (14,269) |
Fair value change in derivative assets | (25,763) | (63,176) |
Fair value change in derivative liabilities | (31,830) | 75,569 |
Premium paid on derivatives | (19,450) | (93,256) |
Fair value change in loans held for sale | (38,751) | 225,137 |
Fair value change in servicing rights | 56,025 | (121,874) |
Stock-based compensation expense | 5,926 | 2,309 |
Originations of loans | (4,891,247) | (21,373,625) |
Proceeds from sales of loans | 5,366,139 | 22,948,300 |
Proceeds from principal payments | 15,097 | 60,287 |
Payments to investors for loan repurchases | (148,589) | (141,146) |
Gain on extinguishment of debt | 0 | (10,528) |
Disbursements from joint ventures | 3,919 | 922 |
Other changes in operating assets and liabilities | 41,172 | 156,736 |
Net cash provided by operating activities | 205,352 | 1,148,439 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (6,275) | (14,295) |
Proceeds from sale of servicing rights | 12,029 | 303,777 |
Cash flows received on trading securities | 1,168 | 1,894 |
Investments in joint ventures | 0 | (350) |
Net cash flows provided by investing activities | 6,922 | 291,026 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from borrowings on warehouse and other lines of credit | 4,566,739 | 24,542,427 |
Repayment of borrowings on warehouse and other lines of credit | (4,883,022) | (26,192,719) |
Proceeds from debt obligations | 19,067 | 1,131,952 |
Payments on debt obligations | (6,108) | (800,092) |
Payments of debt issuance costs | (14) | (3,402) |
Treasury stock purchased to net settle and withhold taxes on vested shares | (570) | (162) |
Dividends and shareholder distributions | (664) | (30,230) |
Net cash used in financing activities | (304,572) | (1,352,226) |
Net change in cash and cash equivalents and restricted cash | (92,298) | 87,239 |
Cash and cash equivalents and restricted cash at beginning of the period | 980,501 | 620,596 |
Cash and cash equivalents and restricted cash at end of the period | 888,203 | 707,835 |
SUPPLEMENTAL DISCLOSURES: | ||
Interest | 57,822 | 51,080 |
Income taxes | (3,474) | 5,858 |
Supplemental disclosure of noncash investing and financing activities | ||
Operating leases right-of-use assets obtained in exchange for lease liabilities | 2,734 | 2,768 |
Trading securities retained in securitizations | $ 0 | $ 30,076 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
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 The accompanying unaudited consolidated financial statements were prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation were included. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report of loanDepot, Inc. on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). Nature of Operations loanDepot, Inc. was incorporated in Delaware on November 6, 2020 to facilitate the initial public offering (“IPO”) of its Class A common stock and related transactions in order to carry on the business of LD Holdings Group LLC (“LD Holdings”) and its consolidated subsidiaries. loanDepot, Inc.’s common stock began trading on the New York Stock Exchange on February 11, 2021 under the ticker symbol “LDI.” loanDepot, Inc. is a holding company and its sole material asset is its equity interest in LD Holdings. As of March 31, 2023 the consolidated subsidiaries of LD Holdings included loanDepot.com, LLC, (“LDLLC”), Artemis Management LLC (“ART”), LD Settlement Services, LLC (“LDSS”), mello Holdings, LLC (“Mello”), and mello Credit Strategies LLC (“MCS”). The Company engages in the originating, financing, selling, and servicing of residential mortgage loans, and engages in title, escrow, and settlement services for mortgage loan transactions. The Company derives income primarily from gains on the origination and sale of loans to investors, income from loan servicing, and fees charged for settlement services related to the origination and sale of loans. Summary of Significant Accounting Policies Our accounting policies are described below and in Note 1- Description of Business and Summary of Significant Accounting Policies, of our audited consolidated financial statements included in our 2022 Form 10-K. 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”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. loanDepot, Inc. is 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. LD Holdings is also 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. The financial results of LD Holdings and its subsidiaries are consolidated with loanDepot, Inc., and the consolidated net earnings or loss are allocated to noncontrolling interest to reflect the entitlement of certain members that still hold Class A holdings units (“Holdco Units”) and Class C common stock, (“Continuing LLC Members”) as of the periods presented. 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. The Company has evaluated subsequent events for recognition or disclosure through the date of this report and has not identified any recordable or disclosable events that were not already reported in these consolidated financial statements or notes thereto. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management has made significant estimates in certain areas, including determining the fair value of loans held for sale, servicing rights, derivative assets and derivative liabilities, trading securities, awards granted under the incentive equity plan, determining the loan loss obligation on sold loans and MSRs. Actual results could differ from those estimates. Concentration of Risk The Company has concentrated its credit risk for cash by maintaining deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash. Due to the nature of the mortgage lending industry, changes in interest rates may significantly impact revenue from originating mortgages and subsequent sales of loans to investors, which are the primary source of income for the Company. The Company originates mortgage loans on property located throughout the United States, with loans originated for property located in California totaling approximately 17% of total loan originations for the three months ended March 31, 2023. The Company sells mortgage loans to various third-party investors. Three investors accounted for 11%, 29%, and 33% of the Company’s loan sales for the three months ended March 31, 2023. No other investors accounted for more than 5% of the loan sales for the three months ended March 31, 2023. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company's consolidated financial statements include assets and liabilities that are measured based on their estimated fair values. Refer to Note 1 - Description of Business, Presentation and Summary of Significant Accounting Policies in the 2022 Form 10-K for information on the fair value hierarchy, valuation methodologies, and key inputs used to measure financial assets and liabilities recorded at fair value, as well as methods and assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. The following tables present the carrying amount and estimated fair value of financial instruments included in the consolidated financial statements. March 31, 2023 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 798,119 $ 798,119 $ — $ — Restricted cash 90,084 90,084 — — Loans held for sale, at fair value 2,039,367 — 2,039,367 — Derivative assets, at fair value 84,624 10,008 13,597 61,019 Servicing rights, at fair value 2,028,788 — — 2,028,788 Trading securities, at fair value 95,561 — 95,561 — Loans eligible for repurchase 672,458 — 672,458 — Liabilities Warehouse and other lines of credit $ 1,830,319 $ — $ 1,830,319 $ — Derivative liabilities, at fair value 35,662 5,166 28,199 2,297 Servicing rights, at fair value 12,220 — — 12,220 Debt obligations: Secured credit facilities 1,111,366 — 1,111,812 — Term Notes 199,791 — 200,000 — Senior Notes 992,555 — 554,723 — Liability for loans eligible for repurchase 672,458 — 672,458 — 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 — 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. March 31, 2023 Level 1 Level 2 Level 3 Total Fair value through net income: Assets: Loans held for sale $ — $ 2,039,367 $ — $ 2,039,367 Trading securities — 95,561 — 95,561 Derivative assets: Interest rate lock commitments — — 61,019 61,019 Forward sale contracts — 10,977 — 10,977 Interest rate swap futures 10,008 — — 10,008 MBS put options — 2,620 — 2,620 Servicing rights — — 2,028,788 2,028,788 Total assets at fair value $ 10,008 $ 2,148,525 $ 2,089,807 $ 4,248,340 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 2,297 $ 2,297 Forward sale contracts — 28,199 — 28,199 Put options on treasuries 5,166 — — 5,166 Servicing rights — — 12,220 12,220 Total liabilities at fair value $ 5,166 $ 28,199 $ 14,517 $ 47,882 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 Forward sale contracts — 43,482 — 43,482 Put options on treasuries 10,831 — — 10,831 Interest rate swap futures 7,395 — — 7,395 Servicing rights — — 12,311 12,311 Total liabilities at fair value $ 18,226 $ 43,482 $ 18,095 $ 79,803 The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended March 31, 2023 IRLCs, net Servicing Balance at beginning of period $ 23,590 $ 2,025,136 Total net gains or losses included in earnings (realized and unrealized) 97,184 3,461 Sales and settlements Sales (12,029) Settlements (1) (43,664) — Transfers of IRLCs to closed loans (18,388) — Balance at end of period $ 58,722 $ 2,016,568 (1) Funded amount for IRLCs. Three Months Ended March 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) 142,958 411,768 Sales and settlements Sales (332,983) Settlements (1) (232,922) — Transfers of IRLCs to closed loans (78,656) — Balance at end of period $ 12,000 $ 2,078,187 (1) Funded amount for IRLCs. The following presents the gains and losses included in earnings relating to the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended March 31, 2023 IRLCs, net Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ 35,132 $ 59,295 Change in fair value of servicing rights, net — (55,834) Total 35,132 3,461 Change in unrealized gains (losses) relating to assets and liabilities still held at period end $ 58,722 $ (37,820) Three Months Ended March 31, 2022 IRLCs, net Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ (168,620) $ 269,760 Change in fair value of servicing rights, net — 142,008 Total (168,620) 411,768 Change in unrealized gains relating to assets and liabilities still held at period end $ 12,000 $ 408,140 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: March 31, 2023 December 31, 2022 Unobservable Input Range of inputs Weighted Average (2) Range of inputs Weighted Average (2) IRLCs: Pull-through rate 7.6% - 99.9% 73.9% 8.4% - 99.9% 75.3% Servicing rights Discount rate (1) 4.9% - 16.1% 6.4% 5.0% - 16.1% 6.5% Prepayment rate (1) 5.7% - 18.8% 7.6% 5.8% - 17.6% 7.2% Cost to service (per loan) $63 - $136 $88 $63 - $138 $87 (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 March 31, 2023 or December 31, 2022. 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 March 31, 2023 and December 31, 2022. Fair value of the Company’s Senior Notes issued in October 2020 and March 2021 were estimated using the quoted market prices at March 31, 2023. The debt obligations are classified as Level 2 in the fair value hierarchy. |
LOANS HELD FOR SALE, AT FAIR VA
LOANS HELD FOR SALE, AT FAIR VALUE | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022: March 31, December 31, Amount % Amount % Conforming - fixed $ 1,202,885 59 % $ 1,441,497 59 % Conforming - ARM 22,479 1 52,513 2 Government - fixed 748,674 37 815,921 34 Government - ARM 6,037 — 17,788 1 Other - residential mortgage loans 69,731 3 101,137 4 Consumer loans 1,748 — 1,774 — Total 2,051,554 100 % 2,430,630 100 % Fair value adjustment (12,187) (57,203) Loans held for sale, at fair value $ 2,039,367 $ 2,373,427 A summary of the changes in the balance of loans held for sale is as follows: Three Months Ended 2023 2022 Balance at beginning of period $ 2,373,427 $ 8,136,817 Origination and purchase of loans 4,891,247 21,373,625 Sales (5,382,419) (22,805,365) Repurchases 133,458 139,015 Principal payments (15,097) (60,287) Fair value gain (loss) 38,751 (225,137) Balance at end of period $ 2,039,367 $ 6,558,668 Gain on origination and sale of loans, net is comprised of the following components: Three Months Ended 2023 2022 Discount on loan sales $ (26,669) $ (236,096) Servicing rights additions 59,295 269,760 Unrealized gains from derivative assets and liabilities 36,060 158,743 Realized (losses) gains from derivative assets and liabilities (47,057) 349,040 Discount points, rebates and lender paid costs 57,446 60,067 Fair value gain (loss) 38,751 (225,137) Provision for loan loss obligation for loans sold (9,674) (13,246) Total gain on origination and sale of loans, net $ 108,152 $ 363,131 |
SERVICING RIGHTS, AT FAIR VALUE
SERVICING RIGHTS, AT FAIR VALUE | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, December 31, Conventional $ 104,029,019 $ 104,074,252 Government 37,644,445 37,096,679 Total servicing portfolio $ 141,673,464 $ 141,170,931 A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows: Three Months Ended 2023 2022 Balance at beginning of period $ 2,025,136 $ 1,999,402 Additions 59,295 269,760 Sales proceeds, net (11,838) (312,849) Changes in fair value: Due to changes in valuation inputs or assumptions (21,368) 198,996 Due to collection/realization of cash flows (34,657) (77,122) Balance at end of period $ 2,016,568 $ 2,078,187 The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations: Three Months Ended 2023 2022 Contractual servicing fees $ 101,132 $ 108,826 Late, ancillary and other fees 17,829 2,233 Servicing fee income $ 118,961 $ 111,059 The following is a summary of the components of change in fair value of servicing rights, net as reported in the Company’s consolidated statements of operations: Three Months Ended 2023 2022 Changes in fair value: Due to changes in valuation inputs or assumptions $ (21,368) $ 198,996 Due to collection/realization of cash flows (34,657) (77,122) Realized gains on sales of servicing rights, net of provision 140 10,034 Net gain (loss) from derivatives hedging servicing rights 3,079 (200,291) Changes in fair value of servicing rights, net $ (52,806) $ (68,383) 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. March 31, December 31, Fair Value of Servicing Rights, net $ 2,016,568 $ 2,025,136 Change in Fair Value from adverse changes: Discount Rate: Increase 1% (80,524) (81,431) Increase 2% (155,548) (157,281) Cost of Servicing: Increase 10% (19,333) (19,017) Increase 20% (38,772) (38,127) Prepayment Speed: Increase 10% (23,181) (18,863) Increase 20% (45,837) (37,546) 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 and Summary of Significant Accounting Policies and Note 2- Fair Value for further details on derivatives in the 2022 Form 10-K. The following summarizes the Company’s outstanding derivative instruments: Fair Value Notional Balance Sheet Location Asset Liability March 31, 2023: Interest rate lock commitments $ 2,840,324 Derivative asset, at fair value $ 61,019 Interest rate lock commitments 318,091 Derivative liabilities, at fair value — 2,297 Forward sale contracts 341,310 Derivative asset, at fair value 10,977 — Forward sale contracts 3,165,075 Derivative liabilities, at fair value — 28,199 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 5,750 Derivative liabilities, at fair value — 5,166 MBS put options 300,000 Derivative asset, at fair value 2,620 — MBS put options — Derivative liabilities, at fair value — — Interest rate swap futures 607 Derivative asset, at fair value 10,008 — Interest rate swap futures — Derivative liabilities, at fair value — — Total derivative financial instruments $ 84,624 $ 35,662 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 Because many of the Company’s current derivative agreements are not exchange-traded, the Company is exposed to credit loss in the event of nonperformance by the counterparty to the agreements. The Company controls this risk through credit monitoring procedures including financial analysis, dollar limits and other monitoring procedures. The notional amount of the contracts does not represent the Company’s exposure to credit loss. The following summarizes the realized and unrealized net gains or losses on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included: Three Months Ended Derivative instrument Statements of Operations Location 2023 2022 Interest rate lock commitments, net Gain on origination and sale of loans, net $ 35,132 $ (168,620) Forward sale contracts Gain on origination and sale of loans, net (43,136) 664,519 Interest rate swap futures Gain on origination and sale of loans, net (60) (33,682) Put options Gain on origination and sale of loans, net (2,933) 45,566 Forward sale contracts Change in fair value of servicing rights, net (2,791) (74,227) Interest rate swap futures Change in fair value of servicing rights, net 1,238 (126,663) Put options Change in fair value of servicing rights, net 4,632 599 Total realized and unrealized (losses) gains on derivative financial instruments $ (7,918) $ 307,492 |
BALANCE SHEET NETTING
BALANCE SHEET NETTING | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022, respectively. Refer to Note 8 – Warehouse and Other Lines of Credit for further details on cash collateral requirements. March 31, 2023 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 $ 26,662 $ (15,685) $ 10,977 $ — $ — $ 10,977 MBS put options 2,620 — 2,620 — — 2,620 Interest rate swap futures 10,008 — 10,008 — — 10,008 Total assets $ 39,290 $ (15,685) $ 23,605 $ — $ — $ 23,605 Liabilities: Forward sale contracts $ 43,884 $ (15,685) $ 28,199 $ — $ (25,904) $ 2,295 Put options on treasuries 5,166 — 5,166 — (5,166) — Warehouse and other lines of credit 1,830,319 — 1,830,319 (1,830,319) — — Secured debt obligations (1) 1,311,812 — 1,311,812 (1,311,812) — — Total liabilities $ 3,191,181 $ (15,685) $ 3,175,496 $ (3,142,131) $ (31,070) $ 2,295 (1) Secured debt obligations as of March 31, 2023 included secured credit facilities and Term Notes. December 31, 2022 Gross amounts recognized Gross amounts offset in consolidated balance sheets Net amounts presented in consolidated balance sheets Gross amounts not offset in consolidated balance sheets Net amount Financial instruments Cash collateral Assets: Forward sale contracts $ 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 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023 and year ended December 31, 2022. 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 may sell 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. March 31, December 31, Assets Loans held for sale, at fair value $ 506,808 $ 497,574 Restricted cash 3,547 6,735 Servicing rights, at fair value 553,236 544,729 Prepaid expenses and other assets 55,819 54,887 Total $ 1,119,410 $ 1,103,925 Liabilities Warehouse and other lines of credit $ 500,000 $ 500,000 Debt obligations, net: MSR Facilities 126,874 116,874 Servicing advance facilities 50,316 48,484 Term notes 199,791 199,666 Total $ 876,981 $ 865,024 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. March 31, 2023 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 95,561 $ — $ 95,561 $ 2,285,471 Investments in joint ventures 18,266 — 18,266 18,622 Total $ 113,827 $ — $ 113,827 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 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 servicer 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 March 31, 2023, the remaining principal balance of loans transferred to these securitization trusts was $2.3 billion of which $10.6 million was 90 days or more past due. Investments in joint ventures |
WAREHOUSE AND OTHER LINES OF CR
WAREHOUSE AND OTHER LINES OF CREDIT | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
WAREHOUSE AND OTHER LINES OF CREDIT | WAREHOUSE AND OTHER LINES OF CREDITAt March 31, 2023, 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 March 31, 2023, 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 March 31, 2023 there was one securitization facility with an original three year term scheduled to expire in 2024. All warehouse lines and other lines of credit are subject to renewal based on an annual credit review conducted by the lender. Certain warehouse line lenders require the Company to maintain cash accounts with minimum required balances at all times. As of March 31, 2023 and December 31, 2022, the Company had posted a total of $7.8 million and $11.0 million, restricted cash as collateral with our warehouse lenders and securitization facilities of which $4.3 million and $4.3 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 March 31, 2023, 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 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-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full, and (iii) the date of the occurrence and continuance of an event of default. The following table presents information on warehouse and securitization facilities and the outstanding balance as of March 31, 2023 and December 31, 2022: Outstanding Balance Committed Uncommitted Total Expiration March 31, December 31, Facility 1 (1) $ 400,000 $ 350,000 $ 750,000 10/26/2023 $ 212,349 $ 382,098 Facility 2 (2) — 300,000 300,000 9/25/2023 182,777 236,144 Facility 3 (3) — 300,000 300,000 4/18/2023 214,915 177,900 Facility 4 — 300,000 300,000 12/28/2023 94,960 202,548 Facility 5 (2) — 200,000 200,000 N/A — — Facility 6 (2) 100,000 500,000 600,000 9/29/2023 93,942 180,273 Facility 7 (4) 400,000 400,000 800,000 5/5/2023 307,683 295,064 Facility 8 — 300,000 300,000 9/21/2023 223,693 172,575 Facility 9 (5) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 1,400,000 $ 2,650,000 $ 4,050,000 $ 1,830,319 $ 2,146,602 (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 May 2023, this facility was extended to April 2024. (4) In addition to the outstanding balance secured by mortgage loans, the Company has $126.9 million outstanding to finance servicing rights included within debt obligations in the consolidated balance sheets. In May 2023, this facility was extended to November 2023 and total facility reduced to $600.0 million of which $250.0 million is committed. (5) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. The following table presents information on borrowings under warehouse and securitization facilities: Three Months Ended 2023 2022 Maximum outstanding balance during the period $ 2,152,855 $ 7,672,559 Average balance outstanding during the period 1,518,210 6,290,744 Collateral pledged (loans held for sale) 1,909,375 6,431,228 Weighted average interest rate during the period 6.62 % 2.01 % The following table presents the outstanding debt as of March 31, 2023 and December 31, 2022: March 31, December 31, Secured debt obligations, net: Secured credit facilities MSR facilities $ 974,410 $ 963,834 Securities financing facilities 86,640 85,513 Servicing advance facilities 50,316 48,484 Total secured credit facilities 1,111,366 1,097,831 Term Notes 199,791 199,666 Total secured debt obligations, net 1,311,157 1,297,497 Unsecured debt obligations, net: Senior Notes 992,555 991,822 Total debt obligations, net $ 2,303,712 $ 2,289,319 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 March 31, 2023. 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 $275.9 million as of March 31, 2023 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 March 31, 2023, there was $200.0 million outstanding on this facility with a maturity of June 2023. At March 31, 2023, 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 April 2023, capacity under this facility was lowered to $185.0 million. 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 $514.4 million as of March 31, 2023. The facility bears interest at SOFR, plus a margin per annum and matures in December 2023. At March 31, 2023, there was $300.0 million outstanding on this facility and $0.4 million in unamortized deferred financing costs. In January 2022, the Company entered into a credit facility agreement which provides $500.0 million in borrowing capacity. The facility is secured by Fannie Mae mortgage servicing rights with a fair value of $627.0 million as of March 31, 2023. The facility bears interest at SOFR, plus a margin per annum and matures in January 2025. At March 31, 2023, there was $348.0 million outstanding on this facility and $0.1 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 March 31, 2023, the Company had pledged participation certificates representing beneficial interests in Ginnie Mae mortgage servicing rights to the GMSR Trust with a fair value of $553.2 million. At March 31, 2023 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 March 31, 2023, there were $126.9 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 March 31, 2023, the trading securities had a fair value of $95.6 million on the consolidated balance sheets and there were $86.6 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 March 31, 2023, there was $20.2 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 March 31, 2023, there was $30.1 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 March 31, 2023, there was $200.0 million in Term Notes outstanding and $0.2 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 March 31, 2023, there was $500.0 million in 2025 Senior Notes outstanding and $4.6 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 March 31, 2023, there was $502.5 million in 2028 Senior Notes outstanding and $5.3 million in unamortized deferred financing costs. Interest Expense |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | WAREHOUSE AND OTHER LINES OF CREDITAt March 31, 2023, 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 March 31, 2023, 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 March 31, 2023 there was one securitization facility with an original three year term scheduled to expire in 2024. All warehouse lines and other lines of credit are subject to renewal based on an annual credit review conducted by the lender. Certain warehouse line lenders require the Company to maintain cash accounts with minimum required balances at all times. As of March 31, 2023 and December 31, 2022, the Company had posted a total of $7.8 million and $11.0 million, restricted cash as collateral with our warehouse lenders and securitization facilities of which $4.3 million and $4.3 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 March 31, 2023, 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 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-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full, and (iii) the date of the occurrence and continuance of an event of default. The following table presents information on warehouse and securitization facilities and the outstanding balance as of March 31, 2023 and December 31, 2022: Outstanding Balance Committed Uncommitted Total Expiration March 31, December 31, Facility 1 (1) $ 400,000 $ 350,000 $ 750,000 10/26/2023 $ 212,349 $ 382,098 Facility 2 (2) — 300,000 300,000 9/25/2023 182,777 236,144 Facility 3 (3) — 300,000 300,000 4/18/2023 214,915 177,900 Facility 4 — 300,000 300,000 12/28/2023 94,960 202,548 Facility 5 (2) — 200,000 200,000 N/A — — Facility 6 (2) 100,000 500,000 600,000 9/29/2023 93,942 180,273 Facility 7 (4) 400,000 400,000 800,000 5/5/2023 307,683 295,064 Facility 8 — 300,000 300,000 9/21/2023 223,693 172,575 Facility 9 (5) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 1,400,000 $ 2,650,000 $ 4,050,000 $ 1,830,319 $ 2,146,602 (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 May 2023, this facility was extended to April 2024. (4) In addition to the outstanding balance secured by mortgage loans, the Company has $126.9 million outstanding to finance servicing rights included within debt obligations in the consolidated balance sheets. In May 2023, this facility was extended to November 2023 and total facility reduced to $600.0 million of which $250.0 million is committed. (5) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. The following table presents information on borrowings under warehouse and securitization facilities: Three Months Ended 2023 2022 Maximum outstanding balance during the period $ 2,152,855 $ 7,672,559 Average balance outstanding during the period 1,518,210 6,290,744 Collateral pledged (loans held for sale) 1,909,375 6,431,228 Weighted average interest rate during the period 6.62 % 2.01 % The following table presents the outstanding debt as of March 31, 2023 and December 31, 2022: March 31, December 31, Secured debt obligations, net: Secured credit facilities MSR facilities $ 974,410 $ 963,834 Securities financing facilities 86,640 85,513 Servicing advance facilities 50,316 48,484 Total secured credit facilities 1,111,366 1,097,831 Term Notes 199,791 199,666 Total secured debt obligations, net 1,311,157 1,297,497 Unsecured debt obligations, net: Senior Notes 992,555 991,822 Total debt obligations, net $ 2,303,712 $ 2,289,319 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 March 31, 2023. 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 $275.9 million as of March 31, 2023 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 March 31, 2023, there was $200.0 million outstanding on this facility with a maturity of June 2023. At March 31, 2023, 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 April 2023, capacity under this facility was lowered to $185.0 million. 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 $514.4 million as of March 31, 2023. The facility bears interest at SOFR, plus a margin per annum and matures in December 2023. At March 31, 2023, there was $300.0 million outstanding on this facility and $0.4 million in unamortized deferred financing costs. In January 2022, the Company entered into a credit facility agreement which provides $500.0 million in borrowing capacity. The facility is secured by Fannie Mae mortgage servicing rights with a fair value of $627.0 million as of March 31, 2023. The facility bears interest at SOFR, plus a margin per annum and matures in January 2025. At March 31, 2023, there was $348.0 million outstanding on this facility and $0.1 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 March 31, 2023, the Company had pledged participation certificates representing beneficial interests in Ginnie Mae mortgage servicing rights to the GMSR Trust with a fair value of $553.2 million. At March 31, 2023 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 March 31, 2023, there were $126.9 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 March 31, 2023, the trading securities had a fair value of $95.6 million on the consolidated balance sheets and there were $86.6 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 March 31, 2023, there was $20.2 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 March 31, 2023, there was $30.1 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 March 31, 2023, there was $200.0 million in Term Notes outstanding and $0.2 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 March 31, 2023, there was $500.0 million in 2025 Senior Notes outstanding and $4.6 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 March 31, 2023, there was $502.5 million in 2028 Senior Notes outstanding and $5.3 million in unamortized deferred financing costs. Interest Expense |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
EQUITY | EQUITY 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 $437.3 million and $488.0 million as of March 31, 2023 and December 31, 2022, respectively, represented the economic interest in LD Holdings held by the Continuing LLC Members. 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. 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 March 31, 2023 and December 31, 2022. March 31, 2023 December 31, 2022 Holding Member Interests: Holdco Units Ownership Percentage Holdco Units Ownership Percentage loanDepot, Inc. 172,127,841 54.28% 169,523,682 53.78% Continuing LLC Members 144,983,025 45.72% 145,693,119 46.22% Total 317,110,866 100.00% 315,216,801 100.00% |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share of Class A common stock and Class D common stock is computed by dividing net income (loss) attributable to loanDepot, Inc. by the weighted-average number of shares of Class A common stock and Class D common stock, respectively, outstanding during the period. Diluted earnings (loss) per share of Class A common stock and Class D common stock is computed by dividing net income (loss) attributable to loanDepot, Inc. by the weighted-average number of shares of Class A common stock and Class D common stock respectively, outstanding adjusted to give effect to potentially dilutive securities. There was no Class B common stock outstanding as of March 31, 2023 or 2022. The following table sets forth the calculation of basic and diluted earnings (loss) per share for Class A common stock and Class D common stock: Three Months Ended March 31, 2023 Class A Class D Total Net loss attributable to loanDepot, Inc. $ (18,534) $ (24,373) $ (42,907) Weighted average shares - basic 73,783,147 97,026,671 170,809,818 Loss per share - basic $ (0.25) $ (0.25) $ (0.25) Diluted loss per share: Net loss allocated to common stockholders - diluted $ (18,534) $ (24,373) $ (42,907) Weighted average shares - diluted 73,783,147 97,026,671 170,809,818 Loss per share - diluted $ (0.25) $ (0.25) $ (0.25) Three Months Ended March 31, 2022 Class A Class D Total Net loss attributable to loanDepot, Inc. $ (10,367) $ (24,374) $ (34,741) Weighted average shares - basic 41,480,725 97,527,165 139,007,890 Loss per share - basic $ (0.25) $ (0.25) $ (0.25) Diluted loss per share: Net loss allocated to common stockholders - diluted $ (10,367) $ (24,374) $ (34,741) Weighted average shares - diluted 41,480,725 97,527,165 139,007,890 Loss per share - diluted $ (0.25) $ (0.25) $ (0.25) For the three months ended March 31, 2023 and March 31, 2022, 149,210,417 and 181,035,804 shares of Class C common stock were evaluated for the assumed exchange of noncontrolling interests and determined to be anti-dilutive, and thus were excluded from the computation of diluted loss per share. For the three months March 31, 2023, 21,470,046 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 three months ended March 31, 2022 and 2,608,518 of Class A RSUs were determined to be anti-dilutive, and thus excluded from the computation of diluted loss per share. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to its organizational structure. As of March 31, 2023 and December 31, 2022, the Company had a deferred tax asset before any valuation allowance of $127.2 million and $70.5 million, respectively, and a deferred tax liability of $230.4 million and $191.6 million, respectively. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. The deferred tax liability as of March 31, 2023 and December 31, 2022 relates to temporary differences in the book basis as compared to the tax basis of loanDepot, Inc.’s investment in LD Holdings, net of tax benefits from future deductions for payments made under a Tax Receivable Agreement (“TRA”) as a result of the IPO. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and the Company’s effective tax rate in the future. Deferred income taxes are measured using the applicable tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on the tax rates that have been enacted at the reporting date. The Company measured its deferred tax assets and liabilities at March 31, 2023 and December 31, 2022 using the combined federal and state rate (less federal benefit) of 27.3%. The Company establishes a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. As of March 31, 2023, the Company had a valuation allowance of deferred tax assets $0.4 million on tax credits that have limited carryforward periods and may expire prior to the Company being able to utilize them. The Company did not establish a valuation allowance for 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. The Company recognized a TRA liability of $52.1 million and $50.7 million as of March 31, 2023 and December 31, 2022, respectively, which represents the Company’s estimate of the aggregate amount that it will pay under the TRA, refer to Note 14- Commitments and Contingencies, for further information on the TRA liability. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
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 amounts payable to joint ventures were as follows: Three Months Ended 2023 2022 Loan processing and administrative services fee income $ 4,177 $ 3,330 Loan origination broker fees expense 26,786 20,129 March 31, December 31, Amounts payable to joint ventures $ (6,549) $ (9,776) The Company has entered into a TRA with Parthenon Stockholders and certain Continuing LLC Members. There were no payments made during the three months ended March 31, 2023 or the three months ended March 31, 2022. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
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 $3.6 million and $5.1 million at March 31, 2023 and December 31, 2022, 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 or a former 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. On September 21, 2021, Plaintiff filed her complaint led with the Superior Court of the State of California, County of Orange and an amended complaint was filed on December 21, 2021. Following some motion practice, on June 30, 2022, the Company filed its answer and affirmative defenses to the amended complaint. The Company deposed the Plaintiff and anticipates filing its Motion for Summary Judgment, or in the Alternative, Summary Adjudication on or before May 17, 2023. The plaintiff seeks damages in excess of $75 million. The Company believes this lawsuit is without merit continues 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 March 31, 2023, 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 March 31, 2023 and December 31, 2022 approximated $3.2 billion and $2.2 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 three months ended March 31, 2023. The activity related to the loan loss obligation for sold loans is as follows: Three Months Ended 2023 2022 Balance at beginning of period $ 70,797 $ 29,877 Provision for loan loss obligations 9,674 13,246 Charge-offs (14,801) (1,964) Balance at end of period $ 65,670 $ 41,159 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 $0.8 million and $1.1 million as of March 31, 2023 and December 31, 2022, respectively. TRA Liability The Company recognized a TRA liability of $52.1 million and $50.7 million as of March 31, 2023 and December 31, 2022, 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 $132.0 million |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. loanDepot, Inc. is 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. LD Holdings is also 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. The financial results of LD Holdings and its subsidiaries are consolidated with loanDepot, Inc., and the consolidated net earnings or loss are allocated to noncontrolling interest to reflect the entitlement of certain members that still hold Class A holdings units (“Holdco Units”) and Class C common stock, (“Continuing LLC Members”) as of the periods presented. 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. The Company has evaluated subsequent events for recognition or disclosure through the date of this report and has not identified any recordable or disclosable events that were not already reported in these consolidated financial statements or notes thereto. |
Basis of Presentation | Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the FASB’s Accounting Standards Codification (“ASC” or the “Codification”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. loanDepot, Inc. is 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. LD Holdings is also 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. The financial results of LD Holdings and its subsidiaries are consolidated with loanDepot, Inc., and the consolidated net earnings or loss are allocated to noncontrolling interest to reflect the entitlement of certain members that still hold Class A holdings units (“Holdco Units”) and Class C common stock, (“Continuing LLC Members”) as of the periods presented. 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. The Company has evaluated subsequent events for recognition or disclosure through the date of this report and has not identified any recordable or disclosable events that were not already reported in these consolidated financial statements or notes thereto. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management has made significant estimates in certain areas, including determining the fair value of loans held for sale, servicing rights, derivative assets and derivative liabilities, trading securities, awards granted under the incentive equity plan, determining the loan loss obligation on sold loans and MSRs. Actual results could differ from those estimates. |
Concentration of Risk | Concentration of Risk The Company has concentrated its credit risk for cash by maintaining deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash. Due to the nature of the mortgage lending industry, changes in interest rates may significantly impact revenue from originating mortgages and subsequent sales of loans to investors, which are the primary source of income for the Company. The Company originates mortgage loans on property located throughout the United States, with loans originated for property located in California totaling approximately 17% of total loan originations for the three months ended March 31, 2023. The Company sells mortgage loans to various third-party investors. Three investors accounted for 11%, 29%, and 33% of the Company’s loan sales for the three months ended March 31, 2023. No other investors accounted for more than 5% of the loan sales for the three months ended March 31, 2023. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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. March 31, 2023 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 798,119 $ 798,119 $ — $ — Restricted cash 90,084 90,084 — — Loans held for sale, at fair value 2,039,367 — 2,039,367 — Derivative assets, at fair value 84,624 10,008 13,597 61,019 Servicing rights, at fair value 2,028,788 — — 2,028,788 Trading securities, at fair value 95,561 — 95,561 — Loans eligible for repurchase 672,458 — 672,458 — Liabilities Warehouse and other lines of credit $ 1,830,319 $ — $ 1,830,319 $ — Derivative liabilities, at fair value 35,662 5,166 28,199 2,297 Servicing rights, at fair value 12,220 — — 12,220 Debt obligations: Secured credit facilities 1,111,366 — 1,111,812 — Term Notes 199,791 — 200,000 — Senior Notes 992,555 — 554,723 — Liability for loans eligible for repurchase 672,458 — 672,458 — 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 — 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. March 31, 2023 Level 1 Level 2 Level 3 Total Fair value through net income: Assets: Loans held for sale $ — $ 2,039,367 $ — $ 2,039,367 Trading securities — 95,561 — 95,561 Derivative assets: Interest rate lock commitments — — 61,019 61,019 Forward sale contracts — 10,977 — 10,977 Interest rate swap futures 10,008 — — 10,008 MBS put options — 2,620 — 2,620 Servicing rights — — 2,028,788 2,028,788 Total assets at fair value $ 10,008 $ 2,148,525 $ 2,089,807 $ 4,248,340 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 2,297 $ 2,297 Forward sale contracts — 28,199 — 28,199 Put options on treasuries 5,166 — — 5,166 Servicing rights — — 12,220 12,220 Total liabilities at fair value $ 5,166 $ 28,199 $ 14,517 $ 47,882 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 Forward sale contracts — 43,482 — 43,482 Put options on treasuries 10,831 — — 10,831 Interest rate swap futures 7,395 — — 7,395 Servicing rights — — 12,311 12,311 Total liabilities at fair value $ 18,226 $ 43,482 $ 18,095 $ 79,803 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended March 31, 2023 IRLCs, net Servicing Balance at beginning of period $ 23,590 $ 2,025,136 Total net gains or losses included in earnings (realized and unrealized) 97,184 3,461 Sales and settlements Sales (12,029) Settlements (1) (43,664) — Transfers of IRLCs to closed loans (18,388) — Balance at end of period $ 58,722 $ 2,016,568 (1) Funded amount for IRLCs. Three Months Ended March 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) 142,958 411,768 Sales and settlements Sales (332,983) Settlements (1) (232,922) — Transfers of IRLCs to closed loans (78,656) — Balance at end of period $ 12,000 $ 2,078,187 (1) Funded amount for IRLCs. The following presents the gains and losses included in earnings relating to the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended March 31, 2023 IRLCs, net Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ 35,132 $ 59,295 Change in fair value of servicing rights, net — (55,834) Total 35,132 3,461 Change in unrealized gains (losses) relating to assets and liabilities still held at period end $ 58,722 $ (37,820) Three Months Ended March 31, 2022 IRLCs, net Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ (168,620) $ 269,760 Change in fair value of servicing rights, net — 142,008 Total (168,620) 411,768 Change in unrealized gains relating to assets and liabilities still held at period end $ 12,000 $ 408,140 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended March 31, 2023 IRLCs, net Servicing Balance at beginning of period $ 23,590 $ 2,025,136 Total net gains or losses included in earnings (realized and unrealized) 97,184 3,461 Sales and settlements Sales (12,029) Settlements (1) (43,664) — Transfers of IRLCs to closed loans (18,388) — Balance at end of period $ 58,722 $ 2,016,568 (1) Funded amount for IRLCs. Three Months Ended March 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) 142,958 411,768 Sales and settlements Sales (332,983) Settlements (1) (232,922) — Transfers of IRLCs to closed loans (78,656) — Balance at end of period $ 12,000 $ 2,078,187 (1) Funded amount for IRLCs. The following presents the gains and losses included in earnings relating to the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended March 31, 2023 IRLCs, net Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ 35,132 $ 59,295 Change in fair value of servicing rights, net — (55,834) Total 35,132 3,461 Change in unrealized gains (losses) relating to assets and liabilities still held at period end $ 58,722 $ (37,820) Three Months Ended March 31, 2022 IRLCs, net Servicing Rights, net Total net gains (losses) included in: Gain on origination and sale of loans, net $ (168,620) $ 269,760 Change in fair value of servicing rights, net — 142,008 Total (168,620) 411,768 Change in unrealized gains relating to assets and liabilities still held at period end $ 12,000 $ 408,140 |
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: March 31, 2023 December 31, 2022 Unobservable Input Range of inputs Weighted Average (2) Range of inputs Weighted Average (2) IRLCs: Pull-through rate 7.6% - 99.9% 73.9% 8.4% - 99.9% 75.3% Servicing rights Discount rate (1) 4.9% - 16.1% 6.4% 5.0% - 16.1% 6.5% Prepayment rate (1) 5.7% - 18.8% 7.6% 5.8% - 17.6% 7.2% Cost to service (per loan) $63 - $136 $88 $63 - $138 $87 (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. |
LOANS HELD FOR SALE, AT FAIR _2
LOANS HELD FOR SALE, AT FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022: March 31, December 31, Amount % Amount % Conforming - fixed $ 1,202,885 59 % $ 1,441,497 59 % Conforming - ARM 22,479 1 52,513 2 Government - fixed 748,674 37 815,921 34 Government - ARM 6,037 — 17,788 1 Other - residential mortgage loans 69,731 3 101,137 4 Consumer loans 1,748 — 1,774 — Total 2,051,554 100 % 2,430,630 100 % Fair value adjustment (12,187) (57,203) Loans held for sale, at fair value $ 2,039,367 $ 2,373,427 |
Summary of Changes in Balance of Loans Held For Sale | A summary of the changes in the balance of loans held for sale is as follows: Three Months Ended 2023 2022 Balance at beginning of period $ 2,373,427 $ 8,136,817 Origination and purchase of loans 4,891,247 21,373,625 Sales (5,382,419) (22,805,365) Repurchases 133,458 139,015 Principal payments (15,097) (60,287) Fair value gain (loss) 38,751 (225,137) Balance at end of period $ 2,039,367 $ 6,558,668 |
Components of Gain on Origination and Sale of Loans, Net | Gain on origination and sale of loans, net is comprised of the following components: Three Months Ended 2023 2022 Discount on loan sales $ (26,669) $ (236,096) Servicing rights additions 59,295 269,760 Unrealized gains from derivative assets and liabilities 36,060 158,743 Realized (losses) gains from derivative assets and liabilities (47,057) 349,040 Discount points, rebates and lender paid costs 57,446 60,067 Fair value gain (loss) 38,751 (225,137) Provision for loan loss obligation for loans sold (9,674) (13,246) Total gain on origination and sale of loans, net $ 108,152 $ 363,131 |
SERVICING RIGHTS, AT FAIR VAL_2
SERVICING RIGHTS, AT FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, December 31, Conventional $ 104,029,019 $ 104,074,252 Government 37,644,445 37,096,679 Total servicing portfolio $ 141,673,464 $ 141,170,931 |
Summary of Changes in Servicing Rights | A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows: Three Months Ended 2023 2022 Balance at beginning of period $ 2,025,136 $ 1,999,402 Additions 59,295 269,760 Sales proceeds, net (11,838) (312,849) Changes in fair value: Due to changes in valuation inputs or assumptions (21,368) 198,996 Due to collection/realization of cash flows (34,657) (77,122) Balance at end of period $ 2,016,568 $ 2,078,187 |
Summary of Components of Loan Servicing Fee Income | The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations: Three Months Ended 2023 2022 Contractual servicing fees $ 101,132 $ 108,826 Late, ancillary and other fees 17,829 2,233 Servicing fee income $ 118,961 $ 111,059 |
Summary of Components of Changes in Fair Value of Servicing Rights | The following is a summary of the components of change in fair value of servicing rights, net as reported in the Company’s consolidated statements of operations: Three Months Ended 2023 2022 Changes in fair value: Due to changes in valuation inputs or assumptions $ (21,368) $ 198,996 Due to collection/realization of cash flows (34,657) (77,122) Realized gains on sales of servicing rights, net of provision 140 10,034 Net gain (loss) from derivatives hedging servicing rights 3,079 (200,291) Changes in fair value of servicing rights, net $ (52,806) $ (68,383) |
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. March 31, December 31, Fair Value of Servicing Rights, net $ 2,016,568 $ 2,025,136 Change in Fair Value from adverse changes: Discount Rate: Increase 1% (80,524) (81,431) Increase 2% (155,548) (157,281) Cost of Servicing: Increase 10% (19,333) (19,017) Increase 20% (38,772) (38,127) Prepayment Speed: Increase 10% (23,181) (18,863) Increase 20% (45,837) (37,546) |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023: Interest rate lock commitments $ 2,840,324 Derivative asset, at fair value $ 61,019 Interest rate lock commitments 318,091 Derivative liabilities, at fair value — 2,297 Forward sale contracts 341,310 Derivative asset, at fair value 10,977 — Forward sale contracts 3,165,075 Derivative liabilities, at fair value — 28,199 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 5,750 Derivative liabilities, at fair value — 5,166 MBS put options 300,000 Derivative asset, at fair value 2,620 — MBS put options — Derivative liabilities, at fair value — — Interest rate swap futures 607 Derivative asset, at fair value 10,008 — Interest rate swap futures — Derivative liabilities, at fair value — — Total derivative financial instruments $ 84,624 $ 35,662 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 |
Net Gains (Losses) on Derivative Financial Instruments | The following summarizes the realized and unrealized net gains or losses on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included: Three Months Ended Derivative instrument Statements of Operations Location 2023 2022 Interest rate lock commitments, net Gain on origination and sale of loans, net $ 35,132 $ (168,620) Forward sale contracts Gain on origination and sale of loans, net (43,136) 664,519 Interest rate swap futures Gain on origination and sale of loans, net (60) (33,682) Put options Gain on origination and sale of loans, net (2,933) 45,566 Forward sale contracts Change in fair value of servicing rights, net (2,791) (74,227) Interest rate swap futures Change in fair value of servicing rights, net 1,238 (126,663) Put options Change in fair value of servicing rights, net 4,632 599 Total realized and unrealized (losses) gains on derivative financial instruments $ (7,918) $ 307,492 |
BALANCE SHEET NETTING (Tables)
BALANCE SHEET NETTING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022, respectively. Refer to Note 8 – Warehouse and Other Lines of Credit for further details on cash collateral requirements. March 31, 2023 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 $ 26,662 $ (15,685) $ 10,977 $ — $ — $ 10,977 MBS put options 2,620 — 2,620 — — 2,620 Interest rate swap futures 10,008 — 10,008 — — 10,008 Total assets $ 39,290 $ (15,685) $ 23,605 $ — $ — $ 23,605 Liabilities: Forward sale contracts $ 43,884 $ (15,685) $ 28,199 $ — $ (25,904) $ 2,295 Put options on treasuries 5,166 — 5,166 — (5,166) — Warehouse and other lines of credit 1,830,319 — 1,830,319 (1,830,319) — — Secured debt obligations (1) 1,311,812 — 1,311,812 (1,311,812) — — Total liabilities $ 3,191,181 $ (15,685) $ 3,175,496 $ (3,142,131) $ (31,070) $ 2,295 (1) Secured debt obligations as of March 31, 2023 included secured credit facilities and Term Notes. December 31, 2022 Gross amounts recognized Gross amounts offset in consolidated balance sheets Net amounts presented in consolidated balance sheets Gross amounts not offset in consolidated balance sheets Net amount Financial instruments Cash collateral Assets: Forward sale contracts $ 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 |
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 March 31, 2023 and December 31, 2022, respectively. Refer to Note 8 – Warehouse and Other Lines of Credit for further details on cash collateral requirements. March 31, 2023 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 $ 26,662 $ (15,685) $ 10,977 $ — $ — $ 10,977 MBS put options 2,620 — 2,620 — — 2,620 Interest rate swap futures 10,008 — 10,008 — — 10,008 Total assets $ 39,290 $ (15,685) $ 23,605 $ — $ — $ 23,605 Liabilities: Forward sale contracts $ 43,884 $ (15,685) $ 28,199 $ — $ (25,904) $ 2,295 Put options on treasuries 5,166 — 5,166 — (5,166) — Warehouse and other lines of credit 1,830,319 — 1,830,319 (1,830,319) — — Secured debt obligations (1) 1,311,812 — 1,311,812 (1,311,812) — — Total liabilities $ 3,191,181 $ (15,685) $ 3,175,496 $ (3,142,131) $ (31,070) $ 2,295 (1) Secured debt obligations as of March 31, 2023 included secured credit facilities and Term Notes. December 31, 2022 Gross amounts recognized Gross amounts offset in consolidated balance sheets Net amounts presented in consolidated balance sheets Gross amounts not offset in consolidated balance sheets Net amount Financial instruments Cash collateral Assets: Forward sale contracts $ 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 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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. March 31, December 31, Assets Loans held for sale, at fair value $ 506,808 $ 497,574 Restricted cash 3,547 6,735 Servicing rights, at fair value 553,236 544,729 Prepaid expenses and other assets 55,819 54,887 Total $ 1,119,410 $ 1,103,925 Liabilities Warehouse and other lines of credit $ 500,000 $ 500,000 Debt obligations, net: MSR Facilities 126,874 116,874 Servicing advance facilities 50,316 48,484 Term notes 199,791 199,666 Total $ 876,981 $ 865,024 March 31, 2023 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 95,561 $ — $ 95,561 $ 2,285,471 Investments in joint ventures 18,266 — 18,266 18,622 Total $ 113,827 $ — $ 113,827 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 |
WAREHOUSE AND OTHER LINES OF _2
WAREHOUSE AND OTHER LINES OF CREDIT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents information on warehouse and securitization facilities and the outstanding balance as of March 31, 2023 and December 31, 2022: Outstanding Balance Committed Uncommitted Total Expiration March 31, December 31, Facility 1 (1) $ 400,000 $ 350,000 $ 750,000 10/26/2023 $ 212,349 $ 382,098 Facility 2 (2) — 300,000 300,000 9/25/2023 182,777 236,144 Facility 3 (3) — 300,000 300,000 4/18/2023 214,915 177,900 Facility 4 — 300,000 300,000 12/28/2023 94,960 202,548 Facility 5 (2) — 200,000 200,000 N/A — — Facility 6 (2) 100,000 500,000 600,000 9/29/2023 93,942 180,273 Facility 7 (4) 400,000 400,000 800,000 5/5/2023 307,683 295,064 Facility 8 — 300,000 300,000 9/21/2023 223,693 172,575 Facility 9 (5) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 1,400,000 $ 2,650,000 $ 4,050,000 $ 1,830,319 $ 2,146,602 (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 May 2023, this facility was extended to April 2024. (4) In addition to the outstanding balance secured by mortgage loans, the Company has $126.9 million outstanding to finance servicing rights included within debt obligations in the consolidated balance sheets. In May 2023, this facility was extended to November 2023 and total facility reduced to $600.0 million of which $250.0 million is committed. (5) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. The following table presents information on borrowings under warehouse and securitization facilities: Three Months Ended 2023 2022 Maximum outstanding balance during the period $ 2,152,855 $ 7,672,559 Average balance outstanding during the period 1,518,210 6,290,744 Collateral pledged (loans held for sale) 1,909,375 6,431,228 Weighted average interest rate during the period 6.62 % 2.01 % |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Information on Outstanding Debt | The following table presents the outstanding debt as of March 31, 2023 and December 31, 2022: March 31, December 31, Secured debt obligations, net: Secured credit facilities MSR facilities $ 974,410 $ 963,834 Securities financing facilities 86,640 85,513 Servicing advance facilities 50,316 48,484 Total secured credit facilities 1,111,366 1,097,831 Term Notes 199,791 199,666 Total secured debt obligations, net 1,311,157 1,297,497 Unsecured debt obligations, net: Senior Notes 992,555 991,822 Total debt obligations, net $ 2,303,712 $ 2,289,319 |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Summary of Ownership of LD Holdings | The following table summarizes the ownership of LD Holdings as of March 31, 2023 and December 31, 2022. March 31, 2023 December 31, 2022 Holding Member Interests: Holdco Units Ownership Percentage Holdco Units Ownership Percentage loanDepot, Inc. 172,127,841 54.28% 169,523,682 53.78% Continuing LLC Members 144,983,025 45.72% 145,693,119 46.22% Total 317,110,866 100.00% 315,216,801 100.00% |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculation of basic and diluted earnings (loss) per share for Class A common stock and Class D common stock: Three Months Ended March 31, 2023 Class A Class D Total Net loss attributable to loanDepot, Inc. $ (18,534) $ (24,373) $ (42,907) Weighted average shares - basic 73,783,147 97,026,671 170,809,818 Loss per share - basic $ (0.25) $ (0.25) $ (0.25) Diluted loss per share: Net loss allocated to common stockholders - diluted $ (18,534) $ (24,373) $ (42,907) Weighted average shares - diluted 73,783,147 97,026,671 170,809,818 Loss per share - diluted $ (0.25) $ (0.25) $ (0.25) Three Months Ended March 31, 2022 Class A Class D Total Net loss attributable to loanDepot, Inc. $ (10,367) $ (24,374) $ (34,741) Weighted average shares - basic 41,480,725 97,527,165 139,007,890 Loss per share - basic $ (0.25) $ (0.25) $ (0.25) Diluted loss per share: Net loss allocated to common stockholders - diluted $ (10,367) $ (24,374) $ (34,741) Weighted average shares - diluted 41,480,725 97,527,165 139,007,890 Loss per share - diluted $ (0.25) $ (0.25) $ (0.25) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Fees earned, costs incurred, and amounts payable to joint ventures were as follows: Three Months Ended 2023 2022 Loan processing and administrative services fee income $ 4,177 $ 3,330 Loan origination broker fees expense 26,786 20,129 March 31, December 31, Amounts payable to joint ventures $ (6,549) $ (9,776) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loan Loss Obligation | The activity related to the loan loss obligation for sold loans is as follows: Three Months Ended 2023 2022 Balance at beginning of period $ 70,797 $ 29,877 Provision for loan loss obligations 9,674 13,246 Charge-offs (14,801) (1,964) Balance at end of period $ 65,670 $ 41,159 |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidation and Basis of Presentation (Details) | Mar. 31, 2023 |
LDLLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 99.99% |
ART, LDSS, Mello, and MCS | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 100% |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-controlling Interests (Details) | Feb. 12, 2021 |
Noncontrolling Interest [Line Items] | |
Stock, exchange ratio | 1 |
DESCRIPTION OF BUSINESS AND S_5
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Loan Originations Benchmark | Geographic Concentration Risk | California | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 17% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 1 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 11% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 2 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 29% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 3 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 33% |
Warehouse Lines of Credit Benchmark | Lender Concentration Risk | Lender 1 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 12% |
Warehouse Lines of Credit Benchmark | Lender Concentration Risk | Lender 2 | |
Concentration of Risk [Line Items] | |
Concentration risk, percentage | 17% |
FAIR VALUE - Financial Statemen
FAIR VALUE - Financial Statement Items on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Loans held for sale, at fair value | $ 2,039,367 | $ 2,373,427 |
Derivative assets, at fair value | 84,624 | 39,411 |
Servicing rights, at fair value | 2,028,788 | 2,037,447 |
Trading securities, at fair value | 95,561 | 94,243 |
Liabilities | ||
Derivative liabilities, at fair value | 35,662 | 67,492 |
Fair Value, Recurring | ||
Assets | ||
Loans held for sale, at fair value | 2,039,367 | 2,373,427 |
Servicing rights, at fair value | 2,028,788 | 2,037,447 |
Trading securities, at fair value | 95,561 | 94,243 |
Liabilities | ||
Servicing rights, at fair value | 12,220 | 12,311 |
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 | 2,039,367 | 2,373,427 |
Servicing rights, at fair value | 0 | 0 |
Trading securities, at fair value | 95,561 | 94,243 |
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 | 2,028,788 | 2,037,447 |
Trading securities, at fair value | 0 | 0 |
Liabilities | ||
Servicing rights, at fair value | 12,220 | 12,311 |
Fair Value, Recurring | Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 798,119 | 863,956 |
Restricted cash | 90,084 | 116,545 |
Loans held for sale, at fair value | 2,039,367 | 2,373,427 |
Derivative assets, at fair value | 84,624 | 39,411 |
Servicing rights, at fair value | 2,028,788 | 2,037,447 |
Trading securities, at fair value | 95,561 | 94,243 |
Loans eligible for repurchase | 672,458 | 634,677 |
Liabilities | ||
Warehouse and other lines of credit | 1,830,319 | 2,146,602 |
Derivative liabilities, at fair value | 35,662 | 67,492 |
Servicing rights, at fair value | 12,220 | 12,311 |
Liability for loans eligible for repurchase | 672,458 | 634,677 |
Fair Value, Recurring | Carrying Amount | Secured credit facilities | ||
Liabilities | ||
Debt obligations: | 1,111,366 | 1,097,831 |
Fair Value, Recurring | Carrying Amount | Term Notes | ||
Liabilities | ||
Debt obligations: | 199,791 | 199,666 |
Fair Value, Recurring | Carrying Amount | Senior Notes | ||
Liabilities | ||
Debt obligations: | 992,555 | 991,822 |
Fair Value, Recurring | Estimated Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 798,119 | 863,956 |
Restricted cash | 90,084 | 116,545 |
Loans held for sale, at fair value | 0 | 0 |
Derivative assets, at fair value | 10,008 | 0 |
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 | 5,166 | 18,226 |
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 | 2,039,367 | 2,373,427 |
Derivative assets, at fair value | 13,597 | 10,037 |
Servicing rights, at fair value | 0 | 0 |
Trading securities, at fair value | 95,561 | 94,243 |
Loans eligible for repurchase | 672,458 | 634,677 |
Liabilities | ||
Warehouse and other lines of credit | 1,830,319 | 2,146,602 |
Derivative liabilities, at fair value | 28,199 | 43,482 |
Servicing rights, at fair value | 0 | 0 |
Liability for loans eligible for repurchase | 672,458 | 634,677 |
Fair Value, Recurring | Estimated Fair Value | Level 2 | Secured credit facilities | ||
Liabilities | ||
Debt obligations: | 1,111,812 | 1,098,853 |
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: | 554,723 | 645,495 |
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 | 61,019 | 29,374 |
Servicing rights, at fair value | 2,028,788 | 2,037,447 |
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 | 2,297 | 5,784 |
Servicing rights, at fair value | 12,220 | 12,311 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Loans held for sale | $ 2,039,367 | $ 2,373,427 |
Trading securities, at fair value | 95,561 | 94,243 |
Derivative assets: | 84,624 | 39,411 |
Servicing rights | 2,028,788 | 2,037,447 |
Liabilities | ||
Derivative liabilities: | 35,662 | 67,492 |
Interest rate lock commitments | ||
Assets | ||
Derivative assets: | 61,019 | 29,374 |
Liabilities | ||
Derivative liabilities: | 2,297 | 5,784 |
Forward sale contracts | ||
Assets | ||
Derivative assets: | 10,977 | 6,676 |
Liabilities | ||
Derivative liabilities: | 28,199 | 43,482 |
Interest rate swap futures | ||
Assets | ||
Derivative assets: | 10,008 | 0 |
Liabilities | ||
Derivative liabilities: | 0 | 7,395 |
MBS put options | ||
Assets | ||
Derivative assets: | 2,620 | 3,361 |
Liabilities | ||
Derivative liabilities: | 0 | 0 |
Put options on treasuries | ||
Assets | ||
Derivative assets: | 0 | 0 |
Liabilities | ||
Derivative liabilities: | 5,166 | 10,831 |
Fair Value, Recurring | ||
Assets | ||
Loans held for sale | 2,039,367 | 2,373,427 |
Trading securities, at fair value | 95,561 | 94,243 |
Servicing rights | 2,028,788 | 2,037,447 |
Total assets at fair value | 4,248,340 | 4,544,528 |
Liabilities | ||
Servicing rights | 12,220 | 12,311 |
Total liabilities at fair value | 47,882 | 79,803 |
Fair Value, Recurring | Interest rate lock commitments | ||
Assets | ||
Derivative assets: | 61,019 | 29,374 |
Liabilities | ||
Derivative liabilities: | 2,297 | 5,784 |
Fair Value, Recurring | Forward sale contracts | ||
Assets | ||
Derivative assets: | 10,977 | 6,676 |
Liabilities | ||
Derivative liabilities: | 28,199 | 43,482 |
Fair Value, Recurring | Interest rate swap futures | ||
Assets | ||
Derivative assets: | 10,008 | |
Fair Value, Recurring | Interest rate swap futures | Estimated Fair Value | ||
Liabilities | ||
Derivative liabilities: | 7,395 | |
Fair Value, Recurring | MBS put options | ||
Assets | ||
Derivative assets: | 2,620 | 3,361 |
Fair Value, Recurring | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities: | 5,166 | 10,831 |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Loans held for sale | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Servicing rights | 0 | 0 |
Total assets at fair value | 10,008 | 0 |
Liabilities | ||
Servicing rights | 0 | 0 |
Total liabilities at fair value | 5,166 | 18,226 |
Fair Value, Recurring | Level 1 | Estimated Fair Value | ||
Assets | ||
Loans held for sale | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Derivative assets: | 10,008 | 0 |
Servicing rights | 0 | 0 |
Liabilities | ||
Derivative liabilities: | 5,166 | 18,226 |
Servicing rights | 0 | 0 |
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: | 10,008 | |
Fair Value, Recurring | Level 1 | Interest rate swap futures | Estimated Fair Value | ||
Liabilities | ||
Derivative liabilities: | 7,395 | |
Fair Value, Recurring | Level 1 | MBS put options | ||
Assets | ||
Derivative assets: | 0 | 0 |
Fair Value, Recurring | Level 1 | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities: | 5,166 | 10,831 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Loans held for sale | 2,039,367 | 2,373,427 |
Trading securities, at fair value | 95,561 | 94,243 |
Servicing rights | 0 | 0 |
Total assets at fair value | 2,148,525 | 2,477,707 |
Liabilities | ||
Servicing rights | 0 | 0 |
Total liabilities at fair value | 28,199 | 43,482 |
Fair Value, Recurring | Level 2 | Estimated Fair Value | ||
Assets | ||
Loans held for sale | 2,039,367 | 2,373,427 |
Trading securities, at fair value | 95,561 | 94,243 |
Derivative assets: | 13,597 | 10,037 |
Servicing rights | 0 | 0 |
Liabilities | ||
Derivative liabilities: | 28,199 | 43,482 |
Servicing rights | 0 | 0 |
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: | 10,977 | 6,676 |
Liabilities | ||
Derivative liabilities: | 28,199 | 43,482 |
Fair Value, Recurring | Level 2 | Interest rate swap futures | ||
Assets | ||
Derivative assets: | 0 | |
Fair Value, Recurring | Level 2 | Interest rate swap futures | Estimated Fair Value | ||
Liabilities | ||
Derivative liabilities: | 0 | |
Fair Value, Recurring | Level 2 | MBS put options | ||
Assets | ||
Derivative assets: | 2,620 | 3,361 |
Fair Value, Recurring | Level 2 | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities: | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Loans held for sale | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Servicing rights | 2,028,788 | 2,037,447 |
Total assets at fair value | 2,089,807 | 2,066,821 |
Liabilities | ||
Servicing rights | 12,220 | 12,311 |
Total liabilities at fair value | 14,517 | 18,095 |
Fair Value, Recurring | Level 3 | Estimated Fair Value | ||
Assets | ||
Loans held for sale | 0 | 0 |
Trading securities, at fair value | 0 | 0 |
Derivative assets: | 61,019 | 29,374 |
Servicing rights | 2,028,788 | 2,037,447 |
Liabilities | ||
Derivative liabilities: | 2,297 | 5,784 |
Servicing rights | 12,220 | 12,311 |
Fair Value, Recurring | Level 3 | Interest rate lock commitments | ||
Assets | ||
Derivative assets: | 61,019 | 29,374 |
Liabilities | ||
Derivative liabilities: | 2,297 | 5,784 |
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 | |
Fair Value, Recurring | Level 3 | Interest rate swap futures | Estimated Fair Value | ||
Liabilities | ||
Derivative liabilities: | 0 | |
Fair Value, Recurring | Level 3 | MBS put options | ||
Assets | ||
Derivative assets: | 0 | 0 |
Fair Value, Recurring | Level 3 | Put options on treasuries | ||
Liabilities | ||
Derivative liabilities: | $ 0 | $ 0 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing Rights, net | ||
Servicing Rights: | ||
Balance at beginning of period | $ 2,025,136 | $ 1,999,402 |
Total net gains (losses) included in earnings (realized and unrealized) | 3,461 | 411,768 |
Sales | (12,029) | (332,983) |
Settlements | 0 | 0 |
Transfers of IRLCs to closed loans | 0 | 0 |
Balance at end of period | 2,016,568 | 2,078,187 |
IRLCs, net | ||
Derivatives: | ||
Balance at beginning of period | 23,590 | 180,620 |
Total net gains or losses included in earnings (realized and unrealized) | 97,184 | 142,958 |
Sales | ||
Settlements | (43,664) | (232,922) |
Transfers of IRLCs to closed loans | (18,388) | (78,656) |
Balance at end of period | $ 58,722 | $ 12,000 |
FAIR VALUE - Gains and Losses i
FAIR VALUE - Gains and Losses in Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Assets: | ||
Gain on origination and sale of loans, net | $ 59,295 | $ 269,760 |
Level 3 | Servicing Rights, net | ||
Assets: | ||
Gain on origination and sale of loans, net | 59,295 | 269,760 |
Change in fair value of servicing rights, net | (55,834) | 142,008 |
Total net gains (losses) included in: | 3,461 | 411,768 |
Change in unrealized gains (losses) relating to assets and liabilities still held at period end | (37,820) | 408,140 |
Level 3 | IRLCs, net | ||
Derivatives: | ||
Gain on origination and sale of loans, net | 35,132 | (168,620) |
Total net gains (losses) included in: | 35,132 | (168,620) |
Change in unrealized gains (losses) relating to assets and liabilities still held at period end | $ 58,722 | $ 12,000 |
FAIR VALUE - Fair Value Inputs
FAIR VALUE - Fair Value Inputs and Valuation Techniques (Details) | Mar. 31, 2023 $ / loan | Dec. 31, 2022 $ / loan |
IRLCs | Minimum | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.076 | 0.084 |
IRLCs | Maximum | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.999 | 0.999 |
IRLCs | Weighted Average | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.739 | 0.753 |
Servicing rights | Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.049 | 0.050 |
Servicing rights | Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.057 | 0.058 |
Servicing rights | Minimum | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 63 | 63 |
Servicing rights | Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.161 | 0.161 |
Servicing rights | Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.188 | 0.176 |
Servicing rights | Maximum | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 136 | 138 |
Servicing rights | Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.064 | 0.065 |
Servicing rights | Weighted Average | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.076 | 0.072 |
Servicing rights | Weighted Average | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 88 | 87 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 2,051,554 | $ 2,430,630 |
Fair value adjustment | (12,187) | (57,203) |
Loans held for sale, at fair value | $ 2,039,367 | $ 2,373,427 |
Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Fixed | Confirming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 1,202,885 | $ 1,441,497 |
Fixed | Confirming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 59% | 59% |
Fixed | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 748,674 | $ 815,921 |
Fixed | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 37% | 34% |
ARM | Confirming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 22,479 | $ 52,513 |
ARM | Confirming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 1% | 2% |
ARM | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 6,037 | $ 17,788 |
ARM | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 0% | 1% |
Other - residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 69,731 | $ 101,137 |
Other - residential mortgage loans | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 3% | 4% |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 1,748 | $ 1,774 |
Consumer loans | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 0% | 0% |
LOANS HELD FOR SALE, AT FAIR _4
LOANS HELD FOR SALE, AT FAIR VALUE - Summary of Changes in Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Balance at beginning of period | $ 2,373,427 | $ 8,136,817 |
Origination and purchase of loans | 4,891,247 | 21,373,625 |
Sales | (5,382,419) | (22,805,365) |
Repurchases | 133,458 | 139,015 |
Principal payments | (15,097) | (60,287) |
Fair value gain (loss) | 38,751 | (225,137) |
Balance at end of period | $ 2,039,367 | $ 6,558,668 |
LOANS HELD FOR SALE, AT FAIR _5
LOANS HELD FOR SALE, AT FAIR VALUE - Components of Gain on Origination and Sale of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Receivables [Abstract] | |||
Discount on loan sales | $ (26,669) | $ (236,096) | |
Servicing rights additions | 59,295 | 269,760 | |
Unrealized gains from derivative assets and liabilities | 36,060 | 158,743 | |
Realized (losses) gains from derivative assets and liabilities | (47,057) | 349,040 | |
Discount points, rebates and lender paid costs | 57,446 | 60,067 | |
Fair value gain (loss) | 38,751 | (225,137) | |
Provision for loan loss obligation for loans sold | (9,674) | (13,246) | |
Total gain on origination and sale of loans, net | 108,152 | $ 363,131 | |
Loans held for sale on non-accrual status | $ 18,300 | $ 24,800 |
SERVICING RIGHTS, AT FAIR VAL_3
SERVICING RIGHTS, AT FAIR VALUE - Components of Service Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 141,673,464 | $ 141,170,931 |
Conventional | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | 104,029,019 | 104,074,252 |
Government | ||
Servicing Assets at Fair Value [Line Items] | ||
Total portfolio | $ 37,644,445 | $ 37,096,679 |
SERVICING RIGHTS, AT FAIR VAL_4
SERVICING RIGHTS, AT FAIR VALUE - Change in Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance at beginning of period | $ 2,025,136 | $ 1,999,402 |
Additions | 59,295 | 269,760 |
Sales proceeds, net | (11,838) | (312,849) |
Due to changes in valuation inputs or assumptions | (21,368) | 198,996 |
Due to collection/realization of cash flows | (34,657) | (77,122) |
Balance at end of period | $ 2,016,568 | $ 2,078,187 |
SERVICING RIGHTS, AT FAIR VAL_5
SERVICING RIGHTS, AT FAIR VALUE - Component of Loan Servicing Fee Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Contractual servicing fees | $ 101,132 | $ 108,826 |
Late, ancillary and other fees | 17,829 | 2,233 |
Total | $ 118,961 | $ 111,059 |
SERVICING RIGHTS, AT FAIR VAL_6
SERVICING RIGHTS, AT FAIR VALUE - Changes in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Due to changes in valuation inputs or assumptions | $ (21,368) | $ 198,996 |
Due to collection/realization of cash flows | (34,657) | (77,122) |
Realized gains on sales of servicing rights, net of provision | 140 | 10,034 |
Net gain (loss) from derivatives hedging servicing rights | 3,079 | (200,291) |
Changes in fair value of servicing rights, net | $ (52,806) | $ (68,383) |
SERVICING RIGHTS, AT FAIR VAL_7
SERVICING RIGHTS, AT FAIR VALUE - Servicing Rights Sensitivity Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Transfers and Servicing [Abstract] | ||
Fair Value of Servicing Rights, net | $ 2,016,568 | $ 2,025,136 |
Discount rate, increase 1% | (80,524) | (81,431) |
Discount rate, increase 2% | (155,548) | (157,281) |
Cost of servicing. increase 10% | (19,333) | (19,017) |
Cost of servicing. increase 20% | (38,772) | (38,127) |
Prepayment speed, increase 10% | (23,181) | (18,863) |
Prepayment speed, increase 20% | $ (45,837) | $ (37,546) |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Fair value, asset | $ 84,624 | $ 39,411 |
Fair value, liability | 35,662 | 67,492 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Notional, assets | 2,840,324 | 1,591,807 |
Notional, liabilities | 318,091 | 622,706 |
Fair value, asset | 61,019 | 29,374 |
Fair value, liability | 2,297 | 5,784 |
Forward sale contracts | ||
Derivative [Line Items] | ||
Notional, assets | 341,310 | 309,809 |
Notional, liabilities | 3,165,075 | 2,963,685 |
Fair value, asset | 10,977 | 6,676 |
Fair value, liability | 28,199 | 43,482 |
Put options on treasuries | ||
Derivative [Line Items] | ||
Notional, assets | 0 | 0 |
Notional, liabilities | 5,750 | 8,050 |
Fair value, asset | 0 | 0 |
Fair value, liability | 5,166 | 10,831 |
MBS put options | ||
Derivative [Line Items] | ||
Notional, assets | 300,000 | 400,000 |
Notional, liabilities | 0 | 0 |
Fair value, asset | 2,620 | 3,361 |
Fair value, liability | 0 | 0 |
Interest rate swap futures | ||
Derivative [Line Items] | ||
Notional, assets | 607 | 0 |
Notional, liabilities | 0 | 211 |
Fair value, asset | 10,008 | 0 |
Fair value, liability | $ 0 | $ 7,395 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Realized and Unrealized Gains on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total realized and unrealized (losses) gains on derivative financial instruments | $ (7,918) | $ 307,492 |
Interest rate lock commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total realized and unrealized (losses) gains on derivative financial instruments | 35,132 | (168,620) |
Gain on origination and sale of loans, net | Forward sale contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total realized and unrealized (losses) gains on derivative financial instruments | (43,136) | 664,519 |
Gain on origination and sale of loans, net | Interest rate swap futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total realized and unrealized (losses) gains on derivative financial instruments | (60) | (33,682) |
Gain on origination and sale of loans, net | Put options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total realized and unrealized (losses) gains on derivative financial instruments | (2,933) | 45,566 |
Change in fair value of servicing rights, net | Forward sale contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total realized and unrealized (losses) gains on derivative financial instruments | (2,791) | (74,227) |
Change in fair value of servicing rights, net | Interest rate swap futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total realized and unrealized (losses) gains on derivative financial instruments | 1,238 | (126,663) |
Change in fair value of servicing rights, net | Put options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total realized and unrealized (losses) gains on derivative financial instruments | $ 4,632 | $ 599 |
BALANCE SHEET NETTING (Details)
BALANCE SHEET NETTING (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Net amounts presented in consolidated balance sheet | $ 84,624 | $ 39,411 |
Liabilities: | ||
Net amounts presented in consolidated balance sheet | 35,662 | 67,492 |
Total liabilities, gross amounts recognized | 3,191,181 | 3,539,873 |
Total liabilities, gross amounts offset in consolidated balance sheet | (15,685) | (32,710) |
Total liabilities, net amounts presented in consolidated balance sheet | 3,175,496 | 3,507,163 |
Total liabilities, gross amounts not offset in consolidated balance sheet, financial instruments | (3,142,131) | (3,445,455) |
Total liabilities, gross amounts not offset in consolidated balance sheet, cash collateral | (31,070) | (54,496) |
Total liabilities, net amount | 2,295 | 7,212 |
Warehouse and other lines of credit | ||
Liabilities: | ||
Gross amounts offset in consolidated balance sheet | 0 | 0 |
Securities loaned, gross/net amounts recognized | 1,830,319 | 2,146,602 |
Securities loaned, gross amounts not offset in consolidated balance sheet, financial instruments | (1,830,319) | (2,146,602) |
Securities loaned, gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Securities loaned, net amount | 0 | 0 |
Secured debt obligations | ||
Liabilities: | ||
Gross amounts offset in consolidated balance sheet | 0 | 0 |
Securities loaned, gross/net amounts recognized | 1,311,812 | 1,298,853 |
Securities loaned, gross amounts not offset in consolidated balance sheet, financial instruments | (1,311,812) | (1,298,853) |
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 | 26,662 | 39,386 |
Gross amounts offset in consolidated balance sheet | (15,685) | (32,710) |
Net amounts presented in consolidated balance sheet | 10,977 | 6,676 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Net amount | 10,977 | 6,676 |
Liabilities: | ||
Gross amounts recognized | 43,884 | 76,192 |
Gross amounts offset in consolidated balance sheet | (15,685) | (32,710) |
Net amounts presented in consolidated balance sheet | 28,199 | 43,482 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | (25,904) | (36,270) |
Net amount | 2,295 | 7,212 |
MBS put options | ||
Assets: | ||
Gross amounts recognized | 2,620 | 3,361 |
Gross amounts offset in consolidated balance sheet | 0 | 0 |
Net amounts presented in consolidated balance sheet | 2,620 | 3,361 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Net amount | 2,620 | 3,361 |
Liabilities: | ||
Net amounts presented in consolidated balance sheet | 0 | 0 |
All except interest rate lock commitments | ||
Assets: | ||
Gross amounts recognized | 39,290 | 42,747 |
Gross amounts offset in consolidated balance sheet | (15,685) | (32,710) |
Net amounts presented in consolidated balance sheet | 23,605 | 10,037 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Net amount | 23,605 | 10,037 |
Put options on treasuries | ||
Assets: | ||
Net amounts presented in consolidated balance sheet | 0 | 0 |
Liabilities: | ||
Gross amounts recognized | 5,166 | 10,831 |
Gross amounts offset in consolidated balance sheet | 0 | 0 |
Net amounts presented in consolidated balance sheet | 5,166 | 10,831 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | (5,166) | (10,831) |
Net amount | 0 | 0 |
Interest rate swap futures | ||
Assets: | ||
Gross amounts recognized | 10,008 | |
Gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | 10,008 | 0 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | |
Net amount | 10,008 | |
Liabilities: | ||
Gross amounts recognized | 7,395 | |
Gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | $ 0 | 7,395 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, cash collateral | (7,395) | |
Net amount | $ 0 |
VARIABLE INTEREST ENTITIES - Co
VARIABLE INTEREST ENTITIES - Consolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||||
Loans held for sale, at fair value | $ 2,039,367 | $ 2,373,427 | $ 6,558,668 | $ 8,136,817 |
Restricted cash | 90,084 | 116,545 | ||
Servicing rights, at fair value | 2,028,788 | 2,037,447 | ||
Prepaid expenses and other assets | 139,904 | 155,982 | ||
Total assets | 6,190,791 | 6,609,934 | ||
Warehouse and other lines of credit | 1,830,319 | 2,146,602 | ||
Debt obligations, net | 2,303,712 | 2,289,319 | ||
Total liabilities | 5,349,629 | 5,688,461 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Loans held for sale, at fair value | 506,808 | 497,574 | ||
Restricted cash | 3,547 | 6,735 | ||
Servicing rights, at fair value | 553,236 | 544,729 | ||
Prepaid expenses and other assets | 55,819 | 54,887 | ||
Total assets | 1,119,410 | 1,103,925 | ||
Warehouse and other lines of credit | 500,000 | 500,000 | ||
Total liabilities | 876,981 | 865,024 | ||
Variable Interest Entity, Primary Beneficiary | MSR Facilities | ||||
Variable Interest Entity [Line Items] | ||||
Debt obligations, net | 126,874 | 116,874 | ||
Variable Interest Entity, Primary Beneficiary | Servicing advance facilities | ||||
Variable Interest Entity [Line Items] | ||||
Debt obligations, net | 50,316 | 48,484 | ||
Variable Interest Entity, Primary Beneficiary | Term Notes | ||||
Variable Interest Entity [Line Items] | ||||
Debt obligations, net | $ 199,791 | $ 199,666 |
VARIABLE INTEREST ENTITIES - No
VARIABLE INTEREST ENTITIES - Nonconsolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Retained interests at carrying value | $ 95,561 | $ 94,243 |
Investments in joint ventures | 18,266 | 20,410 |
Total assets | 6,190,791 | 6,609,934 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 113,827 | 114,653 |
Maximum exposure to loss | 113,827 | 114,653 |
Variable Interest Entity, Not Primary Beneficiary | Joint Venture | ||
Variable Interest Entity [Line Items] | ||
Investments in joint ventures | 18,266 | 20,410 |
Maximum exposure to loss | 18,266 | 20,410 |
Total assets in VIEs | 18,622 | 38,682 |
Variable Interest Entity, Not Primary Beneficiary | Retained Interests | ||
Variable Interest Entity [Line Items] | ||
Retained interests at carrying value | 95,561 | 94,243 |
Maximum exposure to loss | 95,561 | 94,243 |
Total assets in VIEs | $ 2,285,471 | $ 2,309,739 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Total portfolio | $ 141,673,464 | $ 141,170,931 | |
Variable Interest Entity, Not Primary Beneficiary | Joint Venture | |||
Variable Interest Entity [Line Items] | |||
Total assets in VIEs | 18,622 | 38,682 | |
Share in net earnings of joint ventures | 3,800 | $ 2,000 | |
Variable Interest Entity, Not Primary Beneficiary | Financial Asset, Equal to or Greater than 90 Days Past Due | |||
Variable Interest Entity [Line Items] | |||
Total portfolio | 10,600 | ||
Variable Interest Entity, Not Primary Beneficiary | Pledged as Collateral | |||
Variable Interest Entity [Line Items] | |||
Total assets in VIEs | $ 2,285,471 | $ 2,309,739 |
WAREHOUSE AND OTHER LINES OF _3
WAREHOUSE AND OTHER LINES OF CREDIT - Additional Information (Details) $ in Thousands | 3 Months Ended | |||
Oct. 30, 2021 | Mar. 31, 2023 USD ($) lineOfCredit | Dec. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||||
Number of lines of credit held | lineOfCredit | 9 | |||
Restricted cash | $ 90,084 | $ 116,545 | ||
Warehouse Agreement Borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Cash collateral for borrowed securities | 7,800 | 11,000 | ||
Restricted cash | $ 4,300 | $ 4,300 | ||
Warehouse Agreement Borrowings | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (as a percent) | 2.25% | |||
Warehouse Agreement Borrowings | Base Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (as a percent) | 1.37% | |||
Warehouse and Revolving Credit Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 4,050,000 | |||
Securitization Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, term | 3 years | |||
Number of securitization facilities | lineOfCredit | 1 | |||
Securitization Facilities | 2021-3 Securitization Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 500,000 | |||
Debt instrument, term | 3 years |
WAREHOUSE AND OTHER LINES OF _4
WAREHOUSE AND OTHER LINES OF CREDIT - Warehouse Borrowings (Details) - USD ($) $ in Thousands | May 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | |||
Outstanding Balance | $ 1,830,319 | $ 2,146,602 | |
Debt obligations, net | 2,303,712 | 2,289,319 | |
Finance Servicing Rights | |||
Line of Credit Facility [Line Items] | |||
Debt obligations, net | 126,900 | ||
Finance Servicing Rights | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Committed Amount | $ 250,000 | ||
Debt obligations, net | $ 600,000 | ||
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 | ||
Outstanding Balance | 1,830,319 | 2,146,602 | |
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 | ||
Outstanding Balance | 212,349 | 382,098 | |
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 | ||
Outstanding Balance | 182,777 | 236,144 | |
Warehouse and Revolving Credit Facilities | Facility 3(3) | |||
Line of Credit Facility [Line Items] | |||
Committed Amount | 0 | ||
Uncommitted Amount | 300,000 | ||
Total Facility Amount | 300,000 | ||
Outstanding Balance | 214,915 | 177,900 | |
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 | ||
Outstanding Balance | 94,960 | 202,548 | |
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 | ||
Outstanding Balance | 0 | 0 | |
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 | ||
Outstanding Balance | 93,942 | 180,273 | |
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 | ||
Outstanding Balance | 307,683 | 295,064 | |
Warehouse and Revolving Credit Facilities | Facility 8 | |||
Line of Credit Facility [Line Items] | |||
Committed Amount | 0 | ||
Uncommitted Amount | 300,000 | ||
Total Facility Amount | 300,000 | ||
Outstanding Balance | 223,693 | 172,575 | |
Warehouse and Revolving Credit Facilities | Facility 9 | |||
Line of Credit Facility [Line Items] | |||
Committed Amount | 500,000 | ||
Uncommitted Amount | 0 | ||
Total Facility Amount | 500,000 | ||
Outstanding Balance | $ 500,000 | $ 500,000 |
WAREHOUSE AND OTHER LINES OF _5
WAREHOUSE AND OTHER LINES OF CREDIT - Information on Warehouse Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | |||
Loans held for sale, at fair value | $ 2,039,367 | $ 2,373,427 | |
Warehouse and Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Maximum outstanding balance during the period | 2,152,855 | $ 7,672,559 | |
Average balance outstanding during the period | $ 1,518,210 | $ 6,290,744 | |
Weighted average interest rate during the period | 6.62% | 2.01% | |
Warehouse and Revolving Credit Facilities | Pledged as Collateral | |||
Line of Credit Facility [Line Items] | |||
Loans held for sale, at fair value | $ 1,909,375 | $ 6,431,228 |
DEBT OBLIGATIONS - Information
DEBT OBLIGATIONS - Information on Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt obligations, net | $ 2,303,712 | $ 2,289,319 |
Secured debt obligations | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 1,311,157 | 1,297,497 |
Secured debt obligations | Term Notes | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 199,791 | 199,666 |
Secured debt obligations | MSR Facilities | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 974,410 | 963,834 |
Secured debt obligations | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 86,640 | 85,513 |
Secured debt obligations | Servicing advance facilities | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 50,316 | 48,484 |
Secured debt obligations | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 1,111,366 | 1,097,831 |
Unsecured debt obligations | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | $ 992,555 | $ 991,822 |
DEBT OBLIGATIONS - Secured Cred
DEBT OBLIGATIONS - Secured Credit Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||||
Mar. 31, 2023 | May 31, 2023 | Apr. 30, 2023 | Dec. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2020 | Oct. 31, 2014 | |
Debt Instrument [Line Items] | ||||||||
Servicing rights, at fair value | $ 2,028,788 | $ 2,037,447 | ||||||
Debt obligations, net | 2,303,712 | 2,289,319 | ||||||
Trading securities, at fair value | $ 95,561 | 94,243 | ||||||
Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Advance rate | 50% | |||||||
Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Advance rate | 90% | |||||||
Finance Servicing Rights | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt obligations, net | $ 126,900 | |||||||
Finance Servicing Rights | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt obligations, net | $ 600,000 | |||||||
Pledged as Collateral | ||||||||
Debt Instrument [Line Items] | ||||||||
Servicing rights, at fair value | 553,236 | 544,729 | ||||||
Pledged as Collateral | Variable Interest Entity, Not Primary Beneficiary | ||||||||
Debt Instrument [Line Items] | ||||||||
Trading securities, at fair value | 95,561 | 94,243 | ||||||
Secured credit facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt obligations, net | 1,311,157 | 1,297,497 | ||||||
Secured credit facilities | 2020-VF1 Notes | Advance Receivables Trust | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 100,000 | |||||||
Secured credit facilities | 2020-VF1 Notes | Advance Receivables Trust | Reimbursement For Advances Made | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding balance | 20,200 | |||||||
Secured credit facilities | GMSR VFN | Servicing Advance Reimbursement Amounts | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding balance | 30,100 | |||||||
Secured credit facilities | GMSR VFN | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | 200,000 | |||||||
Secured credit facilities | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding balance | 200,000 | |||||||
Available borrowing capacity | 200,000 | |||||||
Debt obligations, net | 1,111,366 | 1,097,831 | ||||||
Secured credit facilities | Revolving credit facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Available borrowing capacity | $ 185,000 | |||||||
Secured credit facilities | Revolving credit facility | Pledged as Collateral | ||||||||
Debt Instrument [Line Items] | ||||||||
Servicing rights, at fair value | 275,900 | |||||||
Secured credit facilities | Third Secured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 300,000 | |||||||
Servicing rights, at fair value | 514,400 | |||||||
Outstanding balance | 300,000 | |||||||
Line of credit facility, option to increase In borrowing capacity | $ 500,000 | |||||||
Deferred financing costs | 400 | |||||||
Secured credit facilities | Fourth Secured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 500,000 | |||||||
Servicing rights, at fair value | 627,000 | |||||||
Outstanding balance | 348,000 | |||||||
Deferred financing costs | 100 | |||||||
Secured credit facilities | Securities financing facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt obligations, net | $ 86,640 | $ 85,513 | ||||||
Debt instrument, term | 90 days | |||||||
Secured credit facilities | Original Secured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 25,000 |
DEBT OBLIGATIONS - Term Notes (
DEBT OBLIGATIONS - Term Notes (Details) - Secured credit facilities - Term Notes $ in Millions | Mar. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
Term notes | $ 200 |
Deferred financing costs | $ 0.2 |
DEBT OBLIGATIONS - Senior Notes
DEBT OBLIGATIONS - Senior Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Oct. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Outstanding balance | $ 2,303,712 | $ 2,289,319 | |||
Gain (loss) on extinguishment of debt | 0 | $ 10,528 | |||
Unsecured term loan | 6.50% Senior Unsecured Notes Due 2025 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 500,000 | ||||
Stated interest rate | 6.50% | ||||
Outstanding balance | 500,000 | ||||
Deferred financing costs | 4,600 | ||||
Unsecured term loan | 6.125% Senior Unsecured Notes Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 600,000 | ||||
Stated interest rate | 6.125% | ||||
Redemption price, percentage | 100% | ||||
Outstanding balance | 502,500 | ||||
Deferred financing costs | $ 5,300 | ||||
Extinguishment of debt, amount | $ 97,500 | ||||
Extinguishment of debt, purchase price, percentage of par | 87.90% | ||||
Gain (loss) 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, percentage | 106.125% | ||||
Percentage of principal amount to be redeemed | 40% |
DEBT OBLIGATIONS - Interest Exp
DEBT OBLIGATIONS - Interest Expense (Details) - Secured Overnight Financing Rate (SOFR) or Base Rate | 3 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 0.80% |
Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 3.50% |
EQUITY - Additional Information
EQUITY - Additional Information (Details) $ in Thousands | Feb. 12, 2021 | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Equity [Abstract] | |||
Stock, exchange ratio | 1 | ||
Noncontrolling interest | $ 437,288 | $ 487,974 |
EQUITY - Summary of Ownership (
EQUITY - Summary of Ownership (Details) - LD Holdings - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Noncontrolling Interest [Line Items] | ||
Holdco units (in shares) | 317,110,866 | 315,216,801 |
Ownership Percentage | 100% | 100% |
loanDepot, Inc. | ||
Noncontrolling Interest [Line Items] | ||
Holdco units (in shares) | 172,127,841 | 169,523,682 |
Ownership Percentage | 54.28% | 53.78% |
Continuing LLC Members | ||
Noncontrolling Interest [Line Items] | ||
Holdco units (in shares) | 144,983,025 | 145,693,119 |
Ownership Percentage | 45.72% | 46.22% |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic earnings per share: | ||
Net loss attributable to loanDepot, Inc. | $ (42,907) | $ (34,741) |
Weighted average shares - basic (in shares) | 170,809,818 | 139,007,890 |
Loss per share - basic (in usd per share) | $ (0.25) | $ (0.25) |
Diluted loss per share: | ||
Net loss allocated to common stockholders - diluted | $ (42,907) | $ (34,741) |
Weighted average shares - diluted (in shares) | 170,809,818 | 139,007,890 |
Loss per share - diluted (in usd per share) | $ (0.25) | $ (0.25) |
Class B | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Common stock, shares, outstanding (in shares) | 0 | 0 |
Class A | ||
Basic earnings per share: | ||
Net loss attributable to loanDepot, Inc. | $ (18,534) | $ (10,367) |
Weighted average shares - basic (in shares) | 73,783,147 | 41,480,725 |
Loss per share - basic (in usd per share) | $ (0.25) | $ (0.25) |
Diluted loss per share: | ||
Net loss allocated to common stockholders - diluted | $ (18,534) | $ (10,367) |
Weighted average shares - diluted (in shares) | 73,783,147 | 41,480,725 |
Loss per share - diluted (in usd per share) | $ (0.25) | $ (0.25) |
Class A | RSUs | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities (in shares) | 21,470,046 | 2,608,518 |
Class D | ||
Basic earnings per share: | ||
Net loss attributable to loanDepot, Inc. | $ (24,373) | $ (24,374) |
Weighted average shares - basic (in shares) | 97,026,671 | 97,527,165 |
Loss per share - basic (in usd per share) | $ (0.25) | $ (0.25) |
Diluted loss per share: | ||
Net loss allocated to common stockholders - diluted | $ (24,373) | $ (24,374) |
Weighted average shares - diluted (in shares) | 97,026,671 | 97,527,165 |
Loss per share - diluted (in usd per share) | $ (0.25) | $ (0.25) |
Class C | Common shares | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities (in shares) | 149,210,417 | 181,035,804 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset before valuation allowance | $ 127.2 | $ 70.5 |
Deferred tax liability | $ 230.4 | 191.6 |
Combined federal and state rate, percent | 27.30% | |
Deferred tax asset, valuation allowance | $ (0.4) | |
TRA liability | $ 52.1 | $ 50.7 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Tax receivable agreement, payment | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - Joint Venture - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Loan processing and administrative services fee income | $ 4,177 | $ 3,330 | |
Loan origination broker fees expense | 26,786 | $ 20,129 | |
Amounts payable to joint ventures | $ (6,549) | $ (9,776) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | ||||
Customer escrow balance | $ 3,600 | $ 5,100 | ||
Financing receivable, allowance for credit loss | 65,670 | 70,797 | $ 41,159 | $ 29,877 |
TRA liability | 52,100 | 50,700 | ||
MSR Facilities | ||||
Other Commitments [Line Items] | ||||
Financing receivable, allowance for credit loss | 800 | 1,100 | ||
Commitments to Extend Credit | ||||
Other Commitments [Line Items] | ||||
Commitments to originate loans | 3,200,000 | $ 2,200,000 | ||
Employment Litigation | ||||
Other Commitments [Line Items] | ||||
Loss contingency, damages sought | $ 75,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Loan Loss Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 70,797 | $ 29,877 |
Provision for loan loss obligations | 9,674 | 13,246 |
Charge-offs | (14,801) | (1,964) |
Balance at end of period | $ 65,670 | $ 41,159 |
REGULATORY CAPITAL AND LIQUID_2
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Mortgage Banking [Abstract] | |
Minimum adjusted net worth balance requirement | $ 132 |