Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | VEL | |
Entity Registrant Name | Velocity Financial, Inc. | |
Entity Central Index Key | 0001692376 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 20,594,005 | |
Entity File Number | 001-39183 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-0659719 | |
Entity Address, Address Line One | 30699 Russell Ranch Road | |
Entity Address, Address Line Two | Suite 295 | |
Entity Address, City or Town | Westlake Village | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91362 | |
City Area Code | 818 | |
Local Phone Number | 532-3700 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 27,741 | $ 13,273 |
Restricted cash | 7,921 | 7,020 |
Loans held for sale, net | 7,916 | 13,106 |
Loans held for investment, net | 2,083,753 | 1,948,089 |
Loans held for investment, at fair value | 1,370 | 1,539 |
Total loans, net | 2,093,039 | 1,962,734 |
Accrued interest receivables | 11,094 | 11,373 |
Receivables due from servicers | 73,517 | 71,044 |
Other receivables | 10,169 | 4,085 |
Real estate owned, net | 20,046 | 15,767 |
Property and equipment, net | 3,625 | 4,145 |
Net deferred tax asset | 13,196 | 6,654 |
Other assets | 7,257 | 6,779 |
Total assets | 2,267,605 | 2,102,874 |
LIABILITIES | ||
Accounts payable and accrued expenses | 70,049 | 63,361 |
Secured financing, net | 164,053 | 74,982 |
Securitizations, net | 1,558,163 | 1,579,019 |
Warehouse and repurchase facilities, net | 151,872 | 75,923 |
Total liabilities | 1,944,137 | 1,793,285 |
STOCKHOLDERS' EQUITY | ||
Preferred stock ($0.01 par value, 25,000,000 shares authorized; 45,000 issued and outstanding as reflected in Mezzanine Equity) | ||
Common stock ($0.01 par value, 100,000,000 shares authorized at June 30, 2021 and December 31, 2020; 20,594,005 and 20,087,494 shares issued, respectively) | 206 | 201 |
Additional paid-in capital | 205,215 | 204,190 |
Retained earnings | 28,047 | 15,198 |
Total stockholders' equity | 233,468 | 219,589 |
Total liabilities, mezzanine equity and stockholders' equity | 2,267,605 | 2,102,874 |
Series A Preferred Stock | ||
MEZZANINE EQUITY | ||
Series A Convertible preferred stock (45,000 shares designated, $0.01 par value; 45,000 shares issued and outstanding) | $ 90,000 | $ 90,000 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||
Preferred stock, par or stated value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 45,000 | 45,000 |
Preferred stock, shares outstanding | 45,000 | 45,000 |
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 20,594,005 | 20,087,494 |
Series A Preferred Stock | ||
Class Of Stock [Line Items] | ||
Convertible preferred stock shares designated | 45,000 | 45,000 |
Convertible preferred stock par value per share | $ 0.01 | $ 0.01 |
Convertible preferred shares issued | 45,000 | 45,000 |
Convertible preferred shares outstanding | 45,000 | 45,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Interest income | $ 44,978 | $ 39,755 | $ 85,685 | $ 84,391 |
Interest expense — portfolio related | 20,566 | 21,189 | 41,399 | 44,036 |
Net interest income — portfolio related | 24,412 | 18,566 | 44,286 | 40,355 |
Interest expense — corporate debt | 4,309 | 1,894 | 11,658 | 8,237 |
Net interest income | 20,103 | 16,672 | 32,628 | 32,118 |
(Reversal of) provision for loan losses | (1,000) | 1,800 | (895) | 3,088 |
Net interest income after (reversal of) provision for loan losses | 21,103 | 14,872 | 33,523 | 29,030 |
Other operating income | ||||
Gain on disposition of loans | 2,391 | 155 | 5,230 | 2,772 |
Unrealized gain (loss) on fair value loans | 20 | (13) | 18 | 32 |
Other income (expense) | 21 | (1,481) | (15) | (2,524) |
Total other operating income (loss) | 2,432 | (1,339) | 5,233 | 280 |
Operating expenses | ||||
Compensation and employee benefits | 4,546 | 5,863 | 9,732 | 10,904 |
Rent and occupancy | 430 | 448 | 893 | 903 |
Loan servicing | 1,922 | 1,754 | 3,788 | 3,658 |
Professional fees | 795 | 588 | 1,329 | 1,772 |
Real estate owned, net | 1,039 | 408 | 1,548 | 1,542 |
Other operating expenses | 1,918 | 1,847 | 3,977 | 4,180 |
Total operating expenses | 10,650 | 10,908 | 21,267 | 22,959 |
Income before income taxes | 12,885 | 2,625 | 17,489 | 6,351 |
Income tax expense | 3,432 | 484 | 4,640 | 1,631 |
Net income | 9,453 | 2,141 | 12,849 | 4,720 |
Less undistributed earnings attributable to participating securities | 3,571 | 4,854 | ||
Less deemed dividends on preferred stock | 48,955 | 48,955 | ||
Net earnings attributable to common stockholders | $ 5,882 | $ (46,814) | $ 7,995 | $ (44,235) |
Earnings per common share | ||||
Basic | $ 0.29 | $ (2.33) | $ 0.40 | $ (2.20) |
Diluted | $ 0.28 | $ (2.33) | $ 0.38 | $ (2.20) |
Weighted average common shares outstanding | ||||
Basic | 20,087 | 20,087 | 20,087 | 20,087 |
Diluted | 33,960 | 20,087 | 33,684 | 20,087 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' / MEMBERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A equity units | Class D equity units | Members' Equity | Members' EquityClass A equity units | Members' EquityClass D equity units | Common Stock | Common Stock, Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | |
Beginning balance at Dec. 31, 2019 | $ 152,844 | $ 152,844 | ||||||||||
Cumulative effect of change in accounting principle at Dec. 31, 2019 | [1] | $ (96) | $ (96) | |||||||||
Beginning balance at Dec. 31, 2019 | 152,748 | 152,844 | $ (96) | |||||||||
Conversion | $ (92,650) | $ (60,194) | $ (92,650) | $ (60,194) | ||||||||
Issuance of common stock | 247,740 | $ 201 | $ 247,539 | |||||||||
Issuance of common stock, shares | 20,087,494 | |||||||||||
Stock-based compensation | 207 | 207 | ||||||||||
Net income | 2,579 | 2,579 | ||||||||||
Ending balance at Mar. 31, 2020 | 250,430 | $ 201 | 247,746 | 2,483 | ||||||||
Ending balance, shares at Mar. 31, 2020 | 20,087,494 | |||||||||||
Beginning balance at Dec. 31, 2019 | 152,844 | 152,844 | ||||||||||
Cumulative effect of change in accounting principle at Dec. 31, 2019 | [1] | $ (96) | $ (96) | |||||||||
Beginning balance at Dec. 31, 2019 | 152,748 | $ 152,844 | (96) | |||||||||
Net income | 4,720 | |||||||||||
Ending balance at Jun. 30, 2020 | 206,027 | $ 201 | 203,685 | 2,141 | ||||||||
Ending balance, shares at Jun. 30, 2020 | 20,087,494 | |||||||||||
Beginning balance at Mar. 31, 2020 | 250,430 | $ 201 | 247,746 | 2,483 | ||||||||
Beginning balance, shares at Mar. 31, 2020 | 20,087,494 | |||||||||||
Deemed dividends-convertible preferred stock | (48,955) | (46,472) | (2,483) | |||||||||
Issuance of warrants | 2,158 | 2,158 | ||||||||||
Stock-based compensation | 253 | 253 | ||||||||||
Net income | 2,141 | 2,141 | ||||||||||
Ending balance at Jun. 30, 2020 | 206,027 | $ 201 | 203,685 | 2,141 | ||||||||
Ending balance, shares at Jun. 30, 2020 | 20,087,494 | |||||||||||
Beginning balance at Dec. 31, 2020 | 219,589 | $ 201 | 204,190 | 15,198 | ||||||||
Beginning balance, shares at Dec. 31, 2020 | 20,087,494 | |||||||||||
Restricted stock awarded and earned stock compensation | 231 | $ 5 | 226 | |||||||||
Restricted stock awarded and earned stock compensation, shares | 480,000 | |||||||||||
Stock-based compensation | 254 | 254 | ||||||||||
Net income | 3,396 | 3,396 | ||||||||||
Ending balance at Mar. 31, 2021 | 223,470 | $ 206 | 204,670 | 18,594 | ||||||||
Ending balance, shares at Mar. 31, 2021 | 20,567,494 | |||||||||||
Beginning balance at Dec. 31, 2020 | 219,589 | $ 201 | 204,190 | 15,198 | ||||||||
Beginning balance, shares at Dec. 31, 2020 | 20,087,494 | |||||||||||
Net income | 12,849 | |||||||||||
Ending balance at Jun. 30, 2021 | 233,468 | $ 206 | 205,215 | 28,047 | ||||||||
Ending balance, shares at Jun. 30, 2021 | 20,594,005 | |||||||||||
Beginning balance at Mar. 31, 2021 | 223,470 | $ 206 | 204,670 | 18,594 | ||||||||
Beginning balance, shares at Mar. 31, 2021 | 20,567,494 | |||||||||||
Restricted stock awarded and earned stock compensation | 291 | 291 | ||||||||||
Restricted stock awarded and earned stock compensation, shares | 26,511 | |||||||||||
Stock-based compensation | 254 | 254 | ||||||||||
Net income | 9,453 | 9,453 | ||||||||||
Ending balance at Jun. 30, 2021 | $ 233,468 | $ 206 | $ 205,215 | $ 28,047 | ||||||||
Ending balance, shares at Jun. 30, 2021 | 20,594,005 | |||||||||||
[1] | Impact due to adoption of ASU 2016-13, "Measurement of Credit Losses on Financial Instruments", and related amendments on January 1, 2020. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 12,849 | $ 4,720 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 603 | 606 |
Amortization of right-of-use assets | 565 | 609 |
(Reversal of) provision for loan losses | (895) | 3,088 |
Origination of loans held for sale | (96,064) | |
Proceeds from sales of loans held for sale | 80,858 | |
Purchase of held for sale loans | (755) | (203) |
Repayments on loans held for sale | 11 | 18,843 |
Net accretion of discount on purchased loans and deferred loan origination costs | 3,092 | 2,265 |
Provision for uncollectible borrower advances | 47 | 174 |
Gain on disposition of loans | (4,598) | (2,272) |
Real estate acquired through foreclosure in excess of recorded investment | (632) | (500) |
Amortization of debt issuance discount and costs | 10,156 | 8,862 |
Loss on disposal of property and equipment | 18 | 38 |
Change in valuation of real estate owned | 1,235 | 1,216 |
Change in valuation of fair value loans | (18) | (32) |
Change in valuation of held for sale loans | (2) | 961 |
Gain on sale of real estate owned | (162) | (395) |
Stock-based compensation | 1,030 | 460 |
Net deferred tax benefit | (6,542) | 2,765 |
(Increase) decrease in operating assets and liabilities: | ||
Accrued interest and other receivables | (476) | (4,440) |
Other assets | (1,081) | (975) |
Accounts payable and accrued expenses | 6,451 | 3,156 |
Net cash provided by operating activities | 20,896 | 23,740 |
Cash flows from investing activities: | ||
Purchase of loans held for investment | (3,490) | (3,571) |
Origination of loans held for investment | (496,497) | (153,600) |
Payoffs of loans held for investment and loans at fair value | 82,856 | 163,998 |
Proceeds from sales of loans originally classified as held for investment | 274,042 | |
Proceeds from sale of real estate owned | 4,076 | 2,827 |
Capitalized real estate owned improvements | (29) | (347) |
Change in advances | (667) | (2,554) |
Change in impounds and deposits | 167 | (3,367) |
Purchase of property and equipment | (102) | (682) |
Net cash (used in) provided by investing activities | (139,644) | 2,704 |
Cash flows from financing activities: | ||
Warehouse repurchase facilities advances | 414,030 | 250,416 |
Warehouse repurchase facilities repayments | (337,332) | (511,664) |
Proceeds from secured financing | 175,000 | |
Repayment of secured financing | (79,969) | (75,000) |
Proceeds of securitizations, net | 251,274 | 341,926 |
Repayment of securitizations | (273,810) | (179,968) |
Debt issuance costs | (15,076) | (5,268) |
Issuance of common stock | 100,800 | |
Preferred stock issuance costs | 41,045 | |
Proceeds from issuance of warrants | 2,158 | |
IPO deal costs | (1,903) | |
Net cash provided by (used in) financing activities | 134,117 | (37,458) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 15,369 | (11,014) |
Cash, cash equivalents, and restricted cash at beginning of period | 20,293 | 27,552 |
Cash, cash equivalents, and restricted cash at end of period | 35,662 | 16,538 |
Supplemental cash flow information: | ||
Cash paid during the period for interest | 42,898 | 42,824 |
Cash paid during the period for income taxes | 4,682 | 38 |
Noncash transactions from investing and financing activities: | ||
Transfer of loans held for investment to held for sale | 80,498 | |
Transfer of loans held for investment to real estate owned | 8,767 | 5,380 |
Transfer of accrued interest to loans held for investment | 618 | |
Discount on issuance of securitizations | 27 | 3,126 |
Transfer of loans held for sale to held for investment | $ 4,615 | |
Deferred IPO costs charged against additional paid-in capital | $ (4,000) |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization And Description of Business | Note 1 — Organization and Description of Business Velocity Financial, LLC (VF or the Company) was a Delaware limited liability company formed on July 9, 2012 for the purpose of acquiring all membership units in Velocity Commercial Capital, LLC (VCC). On January 16, 2020, Upon completion of the conversion, Velocity Financial, LLC’s Class A equity units of 97,513,533 and Class D equity units of 60,193,989 were converted to 11,749,994 shares of Velocity Financial, Inc. common stock. On January 22, 2020, the Company completed its initial public offering of 7,250,000 shares of common stock at a price to the public of $13.00 per share. The Company’s stock trades on The New York Stock Exchange under the symbol “VEL”. VCC, a California LLC formed on June 2, 2004, is a mortgage lender that originates and acquires small balance investor real estate loans, providing capital to the investor real estate loan market. The Company is licensed as a California Finance Lender and, as such, is required to maintain a minimum net worth of $250 thousand. The Company does not believe there is any potential risk of not being able to meet this regulatory requirement. The Company uses its equity capital and borrowed funds to originate and invest in investor real estate loans and seeks to generate income based primarily on the difference between the yield on its investor real estate loan portfolio and the cost of its borrowings. The Company may also sell loans from time to time. The Company does not engage in any other significant line of business or offer any other products or services, nor does it originate or acquire investments outside of the United States of America. The Company, through its wholly owned subsidiaries, is the sole beneficial owner of the Velocity Commercial Capital Loan Trusts, from the 2014-1 Trust through and including the 2021-1 Trust, all of which are New York common law trusts. The Trusts are bankruptcy remote, variable interest entities (VIE) formed for the purpose of providing secured borrowings to the Company and are consolidated with the accounts of the |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2 — Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited Consolidated Financial Statements as of and for the three and six months ended June 30, 2021 and 2020 have been prepared on a basis that is substantially consistent with the accounting principles applied to the Company’s audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The information furnished in these interim statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal, recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter for the full year. The interim financial information should be read in conjunction with the Company’s audited Consolidated Financial Statements. (a) Partnership to Corporation Conversion On January 16, 2020, Velocity Financial, LLC converted from a limited liability company to a corporation and changed its name to Velocity Financial, Inc. The Conversion was accounted for in accordance with ASC 805-50 – Business Combinations , as a transaction between entities under common control. All assets and liabilities of Velocity Financial, LLC were contributed to Velocity Financial, Inc. at their carrying value, and the results of operations are being presented as if the Conversion had occurred on January 1, 2020. Additionally, Class A and Class D’s partnership equity at December 31, 2019 were converted to stockholders’ equity and presented as such on the Consolidated Balance Sheets and the Consolidated Statement of Changes in Stockholders’ Equity effective January 1, 2020. (b) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of consolidated income and expenses during the reporting period. (c) Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 — Basis of Presentation and Summary of Significant Accounting Policies , of its audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the Securities and Exchange Commission ("Form 10-K"). There have been no significant changes to the Company’s significant accounting policies as described in its 2020 Annual Report. (d) Principles of Consolidation The principles of consolidation require management to determine and reassess the requirement to consolidate VIEs each reporting period, and therefore, the determination may change based on new facts and circumstances pertaining to each VIE. This could result in a material impact to the Company’s consolidated financial statements in subsequent reporting periods. The Company consolidates the assets, liabilities, and remainder interests of the Trusts as management determined that VCC is the primary beneficiary of these entities. The Company’s ongoing asset management responsibilities provide the Company with the power to direct the activities that most significantly impact the VIE’s economic performance, and the remainder interests provide the Company with the right to receive benefits and the obligation to absorb losses, limited to its investment in the remainder interest of the Trusts. The following table presents a summary of the assets and liabilities of the Trusts as of June 30, 2021 and December 31, 2020. Intercompany balances have been eliminated for purposes of this presentation (in thousands): June 30, 2021 December 31, 2020 Restricted cash $ 6,143 $ 6,743 Loans held for investment, net 1,858,737 1,874,991 Accrued interest and other receivables 82,829 82,342 Real estate owned, net 14,395 9,698 Other assets 9 12 Total assets $ 1,962,113 $ 1,973,786 Accounts payable and accrued expenses $ 43,844 $ 43,795 Securities issued 1,558,163 1,579,019 Total liabilities $ 1,602,007 $ 1,622,814 The consolidated financial statements as of June 30, 2021 and December 31, 2020 include only those assets, liabilities, and results of operations related to the business of the Company, its subsidiaries, and VIEs. |
Current Accounting Developments
Current Accounting Developments | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
Current Accounting Developments | Note 3 — Current Accounting Developments Accounting Standards Adopted in 2021 Effective January 1, 2021, the Company adopted ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs.” Accounting Standards Issued But Not Yet Adopted ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” through December 31, 2022. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 6 Months Ended |
Jun. 30, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Note 4 — Cash, Cash Equivalents, and Restricted Cash The Company is required to hold cash for potential future advances due to certain borrowers. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 (in thousands): Six Months Ended June 30, 2021 2020 Cash and cash equivalents $ 27,741 $ 9,803 Restricted cash 7,921 6,735 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 35,662 $ 16,538 |
Loans Held for Sale, Net
Loans Held for Sale, Net | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans Held for Sale, Net | Note 5 — Loans Held for Sale, Net The following table summarizes loans held for sale as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Unpaid principal balance $ 7,823 $ 12,929 Valuation adjustments (15 ) (17 ) Deferred loan origination costs 108 194 Ending balance $ 7,916 $ 13,106 |
Loans Held for Investment and L
Loans Held for Investment and Loans Held for Investment at Fair Value | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans Held for Investment and Loans Held for Investment at Fair Value | Note 6 — Loans Held for Investment and Loans Held for Investment at Fair Value The following tables summarize loans held for investment as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 2,061,008 $ 1,354 $ 2,062,362 Valuation adjustments on FVO loans — 16 16 Deferred loan origination costs 26,708 — 26,708 2,087,716 1,370 2,089,086 Allowance for loan losses (3,963 ) — (3,963 ) Total loans held for investment and loans held for investment at fair value, net $ 2,083,753 $ 1,370 $ 2,085,123 December 31, 2020 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 1,930,334 $ 1,541 $ 1,931,875 Valuation adjustments on FVO loans — (2 ) (2 ) Deferred loan origination costs 23,600 — 23,600 1,953,934 1,539 1,955,473 Allowance for loan losses (5,845 ) — (5,845 ) Total loans held for investment and loans held for investment at fair value, net $ 1,948,089 $ 1,539 $ 1,949,628 The following table presents the activity in the Unpaid Principal Balance (“UPB”) and amortized cost basis of loans in the Company's COVID-19 forbearance program for the three and six months ended June 30, 2021 ($ in thousands): Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 UPB % Amortized Cost % UPB % Amortized Cost % Beginning balance $ 363,739 $ 368,230 $ 392,073 $ 396,918 Additions — — 2,616 2,615 Foreclosures — — (253 ) (260 ) Repayments (21,297 ) (21,533 ) (51,994 ) (52,576 ) Ending balance $ 342,442 $ 346,697 $ 342,442 $ 346,697 Performing/Accruing $ 251,929 73.6% $ 255,284 73.6% $ 251,929 73.6% $ 255,284 73.6% Nonperforming/Nonaccrual $ 90,513 26.4% $ 91,413 26.4% $ 90,513 26.4% $ 91,413 26.4% The following table presents the UPB and amortized cost basis of loans in the Company's COVID-19 forbearance program as of December 31, 2020 ($ in thousands): December 31, 2020 UPB % Amortized Cost % Ending balance $ 392,073 $ 396,918 Performing/Accruing $ 327,708 83.6% $ 330,495 83.3% Nonperforming/Nonaccrual $ 64,365 16.4% $ 66,423 16.7% Since the inception of the COVID-19 forbearance program, the Company has modified $404.1 million in UPB of loans, which includes capitalized interest of $8.6 million. As of June 30, 2021, $90.2 million in UPB of modified loans has been paid down, which includes $1.3 million of capitalized interest received. Approximately 73.6% and 83.6% of the COVID forbearance loans in UPB were performing, and 26.4% and 16.4% were on nonaccrual status as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 and December 31, 2020, the gross unpaid principal balance of loans held for investment pledged as collateral for the Company’s warehouse facilities, and securitizations issued were as follows (in thousands): June 30, 2021 December 31, 2020 The 2013 repurchase agreement $ 51,819 $ 91,074 The 2015 repurchase agreement 118,950 — The Bank credit agreement 31,022 — The 2021 term repurchase agreement 2,159 — Total pledged loans $ 203,950 $ 91,074 2014-1 Trust 19,622 22,228 2015-1 Trust 38,829 48,179 2016-1 Trust 61,430 71,271 2016-2 Trust 38,625 47,282 2017-1 Trust 64,463 81,376 2017-2 Trust 112,962 137,970 2018-1 Trust 88,449 112,042 2018-2 Trust 194,078 224,195 2019-1 Trust 175,707 203,144 2019-2 Trust 154,113 175,560 2019-3 Trust 121,069 135,527 2020-1 Trust 216,118 241,664 2020-2 Trust 113,023 123,646 2020-MC1 Trust 174,909 228,470 2021-1 Trust 261,965 — Total $ 1,835,362 $ 1,852,554 (a) Nonaccrual Loans The following tables present the amortized cost basis, or recorded investment, of the Company’s loans held for investment that were nonperforming and on nonaccrual status as of June 30, 2021 and December 31, 2020, and accruing loans that were 90 days or more past due (“DPD”) as of June 30, 2021 and December 31, 2020. These accruing loans that were 90 or more days past due represent loans that were granted a forbearance under the Company’s COVID-19 payment forbearance programs. June 30, 2021 Total Nonaccrual Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans Loans 90+ DPD Still Accruing COVID-19 Program ($ in thousands) Commercial - Purchase $ 19,314 $ 18,768 $ 546 $ 57 0.3 % $ — Commercial - Refinance 92,397 82,097 10,300 1,005 4.6 — Residential 1-4 Unit - Purchase 21,084 20,736 348 120 0.6 — Residential 1-4 Unit - Refinance 112,294 107,468 4,826 342 1.6 156 Quick Fix 1-4 Unit - Purchase 23,883 23,467 416 56 0.3 — Quick Fix 1-4 Unit - Refinance 50,002 44,870 5,132 369 1.7 — Total $ 318,974 $ 297,406 $ 21,568 $ 1,949 9.1 % $ 156 Troubled Debt Restructuring included in nonaccrual loans: $ 169 $ — $ — $ 25 — $ — December 31, 2020 Total Nonaccrual Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans Loans 90+ DPD Still Accruing COVID-19 Program ($ in thousands) Commercial - Purchase $ 22,166 $ 20,955 $ 1,211 $ 153 0.7 % $ — Commercial - Refinance 101,117 96,804 4,313 519 2.3 1,747 Residential 1-4 Unit - Purchase 26,373 25,839 534 128 0.6 — Residential 1-4 Unit - Refinance 120,152 113,206 6,946 465 2.1 109 Quick Fix 1-4 Unit - Purchase 6,585 3,808 2,777 525 2.4 — Quick Fix 1-4 Unit - Refinance 59,843 53,616 6,227 878 4.0 123 Total $ 336,236 $ 314,228 $ 22,008 $ 2,668 12.1 % $ 1,979 Troubled Debt Restructuring included in nonaccrual loans: $ 173 $ — $ — $ 25 — $ — The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables. The Company has also made the accounting policy election to write off accrued interest receivables by reversing interest income when loans are placed on nonaccrual status, or 90 days or more past due, other than the COVID-19 forbearance-granted loans. The Company will continue to evaluate the COVID-19 forbearance-granted loans on an individual basis to determine if a reserve should be established on the collectability of the accrued interest and whether any loans should be placed on nonaccrual status at a future date. The following tables present the amortized cost basis in the loans held for investment, excluding loans held for investment at fair value, as of June 30, 2021 and 2020, and the amount of accrued interest receivables written off by reversing interest income by portfolio segment for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, 2021 2020 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 366,737 $ 53 $ 303,373 $ 303 Commercial - Refinance 690,964 225 711,397 1,961 Residential 1-4 Unit - Purchase 276,896 63 245,579 321 Residential 1-4 Unit - Refinance 608,543 281 606,432 1,643 Quick Fix 1-4 Unit - Purchase 40,205 639 — — Quick Fix 1-4 Unit - Refinance 104,371 117 — — Total $ 2,087,716 $ 1,378 $ 1,866,781 $ 4,228 Six Months Ended June 30, 2021 2020 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 366,737 $ 192 $ 303,373 $ 425 Commercial - Refinance 690,964 693 711,397 2,633 Residential 1-4 Unit - Purchase 276,896 121 245,579 404 Residential 1-4 Unit - Refinance 608,543 801 606,432 2,255 Quick Fix 1-4 Unit - Purchase 40,205 685 — — Quick Fix 1-4 Unit - Refinance 104,371 358 — — Total $ 2,087,716 $ 2,850 $ 1,866,781 $ 5,717 For the six months ended June 30, 2021 and 2020 cash basis interest income recognized on nonaccrual loans was $16.7 million and $6.7 million, respectively, and $9.9 million and $3.4 million for the three months ended June 30, 2021 and 2020, respectively. Other than loans in the Company’s COVID-19 forbearance programs, no accrued interest income was recognized on nonaccrual loans for the three and six months ended June 30, 2021 and 2020. The average recorded investment of individually evaluated loans, computed using month-end balances, was $337.9 million and $217.8 million for the three months ended June 30, 2021 and 2020, respectively, and $337.5 million and $180.2 million for the six months ended June 30, 2021 and 2020, respectively. There were no commitments to lend additional funds to debtors whose loans have been modified as of June 30, 2021 and 2020. (b) Allowance for Credit Losses The allowance for credit losses is maintained at a level deemed adequate by management to provide for expected losses in the portfolio at the balance sheet date. The allowance for credit losses is measured using two components. A component that measures expected credit losses on a collective (pool) basis when similar risk characteristics exist and a component that measures expected credit losses on an individual loan basis. To estimate the allowance for credit losses in the loans held for investment portfolio, management follows a detailed internal process, considering a number of different factors including, but not limited to, the ongoing analyses of loans, historical loss rates, relevant environmental factors, relevant market research, trends in delinquencies, effects and changes in credit concentrations, and ongoing evaluation of fair values. The Company uses an open pool loss rate methodology to model expected credit losses on a collective basis. To determine the loss rates for the open pool method, the Company starts with its historical database of losses, segmenting the loans by loan purpose, product type and repayment period. A third-party model applying the open pool method is used to estimate an annual average loss rates by dividing the respective pool's quarterly historical losses by the pool's respective prior quarter’s ending unamortized loan cost balance and deriving an annual average loss rate from the historical quarterly loss rates. The model then adjusts the annual average loss rates based upon macroeconomic forecasts over a reasonable and supportable period, followed by a straight-line reversion to the historical loss rates. The adjusted annual average loss rates are applied to the forecasted pool balance within each segment. The forecasted balances in the loan pool segments are calculated based on a principal amortization using contractual maturity, factoring in further principal reductions from estimated prepayments. For the June 30, 2021 estimate, the Company considered a COVID-19 adverse stress scenario with a five-quarter reasonable and supportable forecast period followed by a four-quarter straight-line reversion period. Management concluded that applying the adverse stress scenario was appropriate given the status of the pandemic at the end of June 2021. Once a loan becomes nonperforming (90 or more days past due), it no longer shares the same risk characteristics of the other loans within its segment of homogeneous loans (pool). Nonperforming loans are considered collateral dependent by the Company. These loans are evaluated individually using the practical expedient to determine the credit exposure. The following tables present the activity in the allowance for credit losses for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, 2021 Residential Residential Quick Fix Quick Fix Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1,2021 $ 328 $ 1,990 $ 322 $ 1,227 $ 386 $ 1,628 $ 5,881 Provision for loan losses (1) 48 28 (41 ) (229 ) (313 ) (493 ) (1,000 ) Charge-offs (114 ) (95 ) — (151 ) — (558 ) (918 ) Ending balance $ 262 $ 1,923 $ 281 $ 847 $ 73 $ 577 $ 3,963 Allowance related to: Loans individually evaluated $ 57 $ 1,005 $ 120 $ 342 $ 56 $ 369 $ 1,949 Loans collectively evaluated 205 918 161 507 16 207 2,014 Amortized cost related to: Loans individually evaluated $ 19,314 $ 92,397 $ 21,084 $ 112,294 $ 23,883 $ 50,002 $ 318,974 Loans collectively evaluated 347,423 598,567 255,812 496,249 16,322 54,369 1,768,742 Three Months Ended June 30, 2020 Residential Residential Quick Fix Quick Fix Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1,2021 $ 352 $ 1,594 $ 250 $ 1,300 $ — $ — 3,496 Provision for loan losses (1) 172 1,093 211 324 — — 1,800 Charge-offs — — (58 ) (18 ) — — (76 ) Ending balance $ 524 $ 2,687 $ 403 $ 1,606 $ — $ — $ 5,220 Six Months Ended June 30, 2021 Residential Residential Quick Fix Quick Fix Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1,2021 $ 373 $ 2,093 $ 333 $ 1,216 $ 595 $ 1,235 $ 5,845 Provision for loan losses (1) 3 (76 ) (15 ) (218 ) (508 ) (81 ) (895 ) Charge-offs (114 ) (94 ) (37 ) (151 ) (14 ) (577 ) (987 ) Ending balance $ 262 $ 1,923 $ 281 $ 847 $ 73 $ 577 $ 3,963 Allowance related to: Loans individually evaluated $ 57 $ 1,005 $ 120 $ 342 $ 56 $ 369 $ 1,949 Loans collectively evaluated 205 918 161 507 16 207 2,014 Amortized cost related to: Loans individually evaluated $ 19,314 $ 92,397 $ 21,084 $ 112,294 $ 23,883 $ 50,002 $ 318,974 Loans collectively evaluated 347,423 598,567 255,812 496,249 16,322 54,369 1,768,742 Six Months Ended June 30, 2020 Residential Residential Quick Fix Quick Fix Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning balance, prior to adoption of ASC 326 $ 304 $ 1,016 $ 148 $ 772 $ — $ — $ 2,240 Impact of adopting ASC 326 19 62 9 47 — — 137 Balance - January 1, 2020 $ 323 $ 1,078 $ 157 $ 819 $ — $ — $ 2,377 Provision for loan losses (1) 280 1,609 382 817 — — 3,088 Charge-offs (79 ) — (136 ) (30 ) — — (245 ) Ending balance $ 524 $ 2,687 $ 403 $ 1,606 $ — $ — $ 5,220 Allowance related to: Loans individually evaluated $ 181 $ 592 $ 96 $ 404 $ — $ — 1,273 Loans collectively evaluated 342 2,095 307 1,203 — — 3,947 Amortized cost related to: Loans individually evaluated $ 20,615 $ 113,350 $ 22,017 $ 114,790 $ — $ — 270,772 Loans collectively evaluated 282,759 598,046 223,561 491,643 — — 1,596,009 (1) The provision for loan losses decreased from approximately $1.8 million and $3.1 million for the three and six months ended June 30,2020 respectively to reversal of $(1.0) and $(0.9) million for the three and six months ended June 30, 2021 respectively due mainly to an improved economic outlook as the economy recovers from the COVID-19 pandemic. (c) Credit Quality A credit quality indicator is a statistic used by the Company to monitor and assess the credit quality of loans held for investment, excluding loans held for investment at fair value. The Company monitors its charge-off rate in relation to its nonperforming loans as its credit quality indicator. Nonperforming loans are loans that are 90 or more days past due, in bankruptcy, in foreclosure, or not accruing interest. As of June 30, 2021, the annualized charge-off rate was 0.59% of average nonperforming loans. The charged-off rate was 0.65% for the year ended December 31, 2020. Other credit quality indicators include aging status and accrual status. The following table presents the aging status of the amortized cost basis in the loans held for investment portfolio, excluding loans held for investment at fair value, which includes $346.7 million and $396.9 million loans in the Company’s COVID-19 forbearance program as of June 30, 2021 and December 31, 2020, respectively (in thousands): 30–59 days 60–89 days 90+days Total Total June 30, 2021 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 762 $ 1,571 $ 16,981 $ 19,314 $ — $ 19,314 Commercial - Refinance 4,668 7,065 80,664 92,397 — 92,397 Residential 1-4 Unit - Purchase 84 1,099 19,901 21,084 — 21,084 Residential 1-4 Unit - Refinance 1,344 1,566 109,384 112,294 — 112,294 Quick Fix 1-4 Unit - Purchase — — 23,883 23,883 — 23,883 Quick Fix 1-4 Unit - Refinance 1,322 1,682 46,998 50,002 — 50,002 Total loans individually evaluated $ 8,180 $ 12,983 $ 297,811 $ 318,974 $ — $ 318,974 Loans collectively evaluated Commercial - Purchase $ 9,168 $ 4,931 $ — $ 14,099 $ 333,324 $ 347,423 Commercial - Refinance 19,366 12,264 — 31,630 566,937 598,567 Residential 1-4 Unit - Purchase 4,697 1,307 — 6,004 249,808 255,812 Residential 1-4 Unit - Refinance 29,397 8,481 156 38,034 458,215 496,249 Quick Fix 1-4 Unit - Purchase 2,983 1,572 — 4,555 11,767 16,322 Quick Fix 1-4 Unit - Refinance 4,231 4,291 — 8,522 45,847 54,369 Total loans collectively evaluated $ 69,842 $ 32,846 $ 156 $ 102,844 $ 1,665,898 $ 1,768,742 Ending balance $ 78,022 $ 45,829 $ 297,967 $ 421,818 $ 1,665,898 $ 2,087,716 30–59 days 60–89 days 90+days Total Total December 31, 2020 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 961 $ 1,307 $ 19,898 $ 22,166 $ — $ 22,166 Commercial - Refinance 2,118 7,532 91,467 101,117 — 101,117 Residential 1-4 Unit - Purchase 192 2,915 23,266 26,373 — 26,373 Residential 1-4 Unit - Refinance 1,440 3,010 115,702 120,152 — 120,152 Quick Fix 1-4 Unit - Purchase — — 6,585 6,585 — 6,585 Quick Fix 1-4 Unit - Refinance 964 760 58,119 59,843 — 59,843 Total loans individually evaluated $ 5,675 $ 15,524 $ 315,037 $ 336,236 $ — $ 336,236 Loans collectively evaluated Commercial - Purchase $ 8,000 $ 7,081 $ — $ 15,081 $ 263,657 $ 278,738 Commercial - Refinance 33,725 13,224 1,747 48,696 535,285 583,981 Residential 1-4 Unit - Purchase 5,030 1,261 — 6,291 191,928 198,219 Residential 1-4 Unit - Refinance 33,144 14,567 109 47,820 398,953 446,773 Quick Fix 1-4 Unit - Purchase 1,972 21,780 — 23,752 12,987 36,739 Quick Fix 1-4 Unit - Refinance 8,406 5,383 123 13,912 59,336 73,248 Total loans collectively evaluated $ 90,277 $ 63,296 $ 1,979 $ 155,552 $ 1,462,146 $ 1,617,698 Ending balance $ 95,952 $ 78,820 $ 317,016 $ 491,788 $ 1,462,146 $ 1,953,934 (1) Includes loans in bankruptcy and foreclosure less than 90 days past due In addition to the aging status, the Company also evaluates credit quality by accrual status. The following tables present the amortized cost in loans held for investment, excluding loans held for investment at fair value, based on accrual status and by loan origination year as of June 30, 2021 and December 31, 2020 (in thousands). Term Loans Amortized Cost Basis by Origination Year June 30, 2021: 2021 2020 2019 2018 2017 Pre-2017 Total Commercial - Purchase Payment performance Performing $ 95,441 $ 55,726 $ 91,153 $ 59,586 $ 25,578 $ 19,939 $ 347,423 Nonperforming — 402 4,606 6,396 5,625 2,285 19,314 Total Commercial - Purchase $ 95,441 $ 56,128 $ 95,759 $ 65,982 $ 31,203 $ 22,224 $ 366,737 Commercial - Refinance Payment performance Performing $ 87,103 $ 67,946 $ 157,006 $ 137,078 $ 70,672 $ 78,762 $ 598,567 Nonperforming — 4,046 29,316 29,124 18,856 11,055 92,397 Total Commercial - Refinance $ 87,103 $ 71,992 $ 186,322 $ 166,202 $ 89,528 $ 89,817 $ 690,964 Residential 1-4 Unit - Purchase Payment performance Performing $ 101,387 $ 13,212 $ 60,395 $ 34,837 $ 17,858 $ 28,123 $ 255,812 Nonperforming 232 3,668 5,478 3,977 4,398 3,331 21,084 Total Residential 1-4 Unit - Purchase $ 101,619 $ 16,880 $ 65,873 $ 38,814 $ 22,256 $ 31,454 $ 276,896 Residential 1-4 Unit - Refinance Payment performance Performing $ 141,385 $ 35,589 $ 138,095 $ 83,511 $ 46,183 $ 51,486 $ 496,249 Nonperforming 1,143 7,714 40,030 32,693 17,267 13,447 112,294 Total Residential 1-4 Unit - Purchase $ 142,528 $ 43,303 $ 178,125 $ 116,204 $ 63,450 $ 64,933 $ 608,543 Quick Fix 1-4 Unit - Purchase Payment performance Performing $ 5,222 $ 6,578 $ 4,336 $ 186 $ — $ — $ 16,322 Nonperforming — 14,042 9,425 416 — — 23,883 Total Quick Fix 1-4 Unit - Purchase $ 5,222 $ 20,620 $ 13,761 $ 602 $ — $ — $ 40,205 Quick Fix 1-4 Unit - Refinance Payment performance Performing $ 9,512 $ 21,736 $ 23,121 $ — $ — $ — $ 54,369 Nonperforming — 17,655 26,679 5,668 — — 50,002 Total Quick Fix 1-4 Unit - Refinance $ 9,512 $ 39,391 $ 49,800 $ 5,668 $ — $ — $ 104,371 Total Portfolio $ 441,425 $ 248,314 $ 589,640 $ 393,472 $ 206,437 $ 208,428 $ 2,087,716 Term Loans Amortized Cost Basis by Origination Year December 31, 2020 2020 2019 2018 2017 2016 Pre-2016 Total Commercial - Purchase Payment performance Performing $ 56,446 $ 99,534 $ 64,706 $ 34,862 $ 9,500 $ 13,690 $ 278,738 Nonperforming 1,046 4,666 5,799 7,182 1,539 1,934 22,166 Total Commercial - Purchase $ 57,492 $ 104,200 $ 70,505 $ 42,044 $ 11,039 $ 15,624 $ 300,904 Commercial - Refinance Payment performance Performing $ 75,376 $ 176,854 $ 157,499 $ 87,476 $ 34,858 $ 51,918 $ 583,981 Nonperforming 4,929 26,776 32,955 18,980 10,392 7,085 101,117 Total Commercial - Refinance $ 80,305 $ 203,630 $ 190,454 $ 106,456 $ 45,250 $ 59,003 $ 685,098 Residential 1-4 Unit - Purchase Payment performance Performing $ 26,215 $ 69,775 $ 42,537 $ 25,874 $ 7,056 $ 26,762 $ 198,219 Nonperforming 1,611 5,973 8,949 5,059 1,348 3,433 26,373 Total Residential 1-4 Unit - Purchase $ 27,826 $ 75,748 $ 51,486 $ 30,933 $ 8,404 $ 30,195 $ 224,592 Residential 1-4 Unit - Refinance Payment performance Performing $ 57,945 $ 168,912 $ 96,568 $ 61,033 $ 22,949 $ 39,366 $ 446,773 Nonperforming 3,934 42,159 37,451 17,942 7,653 11,013 120,152 Total Residential 1-4 Unit - Purchase $ 61,879 $ 211,071 $ 134,019 $ 78,975 $ 30,602 $ 50,379 $ 566,925 Quick Fix 1-4 Unit - Purchase Payment performance Performing $ 20,563 $ 15,990 $ 186 $ — $ — $ — $ 36,739 Nonperforming 3,764 2,217 604 — — — 6,585 Total Quick Fix 1-4 Unit - Purchase $ 24,327 $ 18,207 $ 790 $ — $ — $ — $ 43,324 Quick Fix 1-4 Unit - Refinance Payment performance Performing $ 35,234 $ 37,818 $ 196 $ — $ — $ — $ 73,248 Nonperforming 17,318 33,711 8,719 95 — — 59,843 Total Quick Fix 1-4 Unit - Refinance $ 52,552 $ 71,529 $ 8,915 $ 95 $ — $ — $ 133,091 Total Portfolio $ 304,381 $ 684,385 $ 456,169 $ 258,503 $ 95,295 $ 155,201 $ 1,953,934 |
Securitizations Net
Securitizations Net | 6 Months Ended |
Jun. 30, 2021 | |
Transfers And Servicing [Abstract] | |
Securitization, Net | Note 7 — Securitizations, Net From May 2011 through June 2021, the Company completed sixteen securitizations of $3.7 billion of loans, issuing $3.3 billion of securities to third parties through sixteen respective Trusts. The Company is the sole beneficial interest holder of the remaining Trusts, which are variable interest entities included in the consolidated financial statements. The transactions are accounted for as secured borrowings under U.S. GAAP. The securities are subject to redemption by the Company when the stated principal balance is less than a certain percentage, ranging from 5%–30% of the original stated principal balance of loans at issuance. As a result, the actual maturity dates of the securities issued could be earlier than their respective stated maturity dates, ranging from September 2044 through May 2051. The following table summarizes the outstanding balance, net of discounts and deal costs, of the securities and the effective interest rate for the six months ended June 30, 2021 and 2020 (dollars in thousands): Six Months Ended June 30, Securitizations: 2021 2020 Securitizations, net $ 1,558,163 $ 1,599,719 Interest expense 37,333 37,104 Average outstanding balance 1,545,969 1,565,754 Effective interest rate (1) 4.83 % 4.74 % (1) Represents annualized interest expense divided by average gross outstanding balance and includes average rate of 4.12% and debt issuance cost amortization of 0.71% and average rate of 4.19% and debt issuance cost amortization of 0.55% for the six months ended June 30, 2021 and 2020, respectively. |
Other Debt
Other Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Other Debt | Note 8 — Other Debt The secured financing and warehouse facilities were utilized to finance the origination and purchase of commercial real estate mortgage loans. Warehouse facilities are designated to fund mortgage loans that are purchased and originated within specified underwriting guidelines. These lines of credit fund less than 100% of the principal balance of the mortgage loans originated and purchased, requiring the use of working capital to fund the remaining portion. (a) Secured Financing, Net (Corporate Debt) On February 5, 2021, the Company entered into a five-year As of June 30, 2021, the balance of the 2021 Term Loan was $173.0 million. The balance of the 2019 Term Loan was $78.0 million as of December 31, 2020. The balances in the consolidated Balance Sheets are net of debt issuance costs and discounts of $9.0 million and $3.0 million as of June 30, 2021 and December 31, 2020, respectively. The 2021 Term Loan is secured by substantially all assets of the Company not otherwise pledged under a securitization or warehouse facility and contains certain reporting and financial covenants. Should the Company fail to adhere to those covenants, the lenders have the right to demand immediate repayment that may require the Company to sell the collateral at less than the carrying amounts. As of June 30, 2021, the Company was in compliance with these covenants. (b) Warehouse Repurchase and Revolving Loan Facilities, Net On May 17, 2013, the Company entered into a Repurchase Agreement (“the 2013 Repurchase Agreement”) with a warehouse lender. The 2013 Repurchase Agreement has a current maturity date of September 29, 2021, and is a short-term borrowing facility, collateralized by a pool of performing loans, with a maximum capacity of $100.0 million, and bears interest at one-month LIBOR plus 3.25%. All borrower payments on loans financed under the warehouse repurchase facility are first used to pay interest on the facility. On September 12, 2018, the Company entered into a three-year On December 26, 2019, the Company entered into a $3.0 million loan agreement (“the 2019 Loan”) with a lender. The 2019 Loan is secured by five real properties acquired by the Company through foreclosure or by deed-in lieu of foreclosure. The 2019 Loan bears a fixed interest rate of 9.5% with an extended maturity date of October 1, 2021 . On January 29, 2021, the Company entered into a non-mark-to-market Repurchase Agreement (“the 2021 Repurchase Agreement”) with a warehouse lender. The 2021 Repurchase Agreement has a maturity date of January 29, 2022, and was a short-term borrowing facility, collateralized by a pool of loans, with a maximum capacity of $200.0 million, and bore interest at one-month LIBOR plus a margin of 3.50% during the availability period and 4.50% during the amortization period. All borrower payments on loans financed under the warehouse repurchase facility are first used to pay interest on the facility. On April 16, 2021, The Company entered into a Term Repurchase Agreement (“the 2021 Term Repurchase Agreement”) with a warehouse lender. The 2021 Term Repurchase Agreement has a maturity date of April 16, 2024, with a borrowing period through April 16, 2023. During the borrowing period, the Company can take loan advances from time to time subject to availability. Each loan advance bears interest at one-month LIBOR plus 3.0% per annum. The maximum capacity under this facility is $100.0 million. Certain of the Company’s loans are pledged as security under the warehouse repurchase facilities and the revolving loan facility, which contain covenants. Should the Company fail to adhere to those covenants or otherwise default under the facilities, the lenders have the right to terminate the facilities and demand immediate repayment that may require the Company to sell the collateral at less than the carrying amounts. As of June 30, 2021 and December 31, 2020, the Company was in compliance with these covenants. The following table summarizes the maximum borrowing capacity and current gross balances outstanding of the Company’s warehouse facilities and loan agreements as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Period end balance (1) Maximum borrowing capacity Period end balance (1) Maximum borrowing capacity The 2021 term repurchase agreement $ 1,435 $ 100,000 — — The 2021 repurchase agreement 84,004 200,000 — — The 2013 repurchase agreement 41,098 100,000 73,502 100,000 The Bank credit agreement 23,663 50,000 — — The 2019 loan agreement 2,700 3,000 2,700 3,000 (1) Warehouse repurchase facilities amounts in the consolidated balance sheets are net of debt issuance costs amounting to $1.0 million and $0.3 million as of June 30, 2021 and December 31, 2020, respectively. The following table provides an overview of the activity and effective interest rate for the three and six months ended June 30, 2021 and 2020 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, Warehouse and repurchase facilities: 2021 2020 2021 2020 Average outstanding balance $ 166,981 $ 242,676 $ 140,254 $ 295,013 Highest outstanding balance at any month-end 250,927 268,149 250,927 439,547 Effective interest rate (1) 5.65 % 4.34 % 5.80 % 4.70 % (1) Represents annualized interest expense divided by average gross outstanding balance and includes average rate of 4.44% and debt issuance cost amortization of 1.21%, and average rate of 3.81% and debt issuance cost amortization of 0.52%, for the three months ended June 30, 2021 and 2020, respectively. The effective interest rate includes average rate of 4.58% and debt issuance cost amortization of 1.22%, and average rate 4.29% and debt issuance cost amortization 0.41% for the six months ended June 30, 2021 and 2020 respectively. The increase in average rate in 2021 was primarily attributable to the higher non-usage fees paid to a lender. The debt issuance cost amortization was higher in 2021 as a result of higher debt issuance costs with a lower average outstanding borrowing balance from a new financing facility. The following table provides a summary of interest expense that includes debt issuance cost amortization, interest, amortization of discount, and deal cost amortization for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Warehouse and repurchase facilities $ 2,361 $ 2,632 $ 4,067 $ 6,932 Securitizations 18,205 18,557 37,332 37,104 Interest expense — portfolio related 20,566 21,189 41,399 44,036 Interest expense — corporate debt 4,309 1,894 11,658 (1) 8,237 (2) Total interest expense $ 24,875 $ 23,083 $ 53,057 $ 52,273 (1) Included in the $11.7 million of interest expense – corporate debt for the six months ended June 30, 2021 was the one-time debt issuance costs write-off of $2.9 million and prepayment fee of $1.6 million associated payoff of $78.0 million in outstanding principal amount in February 2021. (2) Included in the $8.2 million of interest expense – corporate debt for the six months ended June 30, 2020 was the one-time debt issuance costs write-off of $3.5 million and prepayment fee of $0.3 million associated with the repayment of $75.0 million in outstanding principal amount in January 2020. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 — Commitments and Contingencies (a) Repurchase Liability When the Company sells loans, it is required to make normal and customary representations and warranties about the loans to the purchaser. The loan sale agreements generally require the Company to repurchase loans if the Company breaches a representation or warranty given to the loan purchaser. In addition, the Company may be required to repurchase loans as a result of borrower fraud or if a payment default occurs on a loan shortly after its sale. The Company records a repurchase liability relating to representations and warranties and early payment defaults. The method used to estimate the liability for repurchase is a function of the representations and warranties given and considers a combination of factors, including, but not limited to, estimated future defaults and loan repurchase rates and the potential severity of loss in the event of defaults. The Company establishes a liability at the time loans are sold and continually updates the estimated repurchase liability. The level of the repurchase liability for representations and warranties and early payment default requires considerable management judgment. As of June 30, 2021 and December 31, 2020 , the balance of repurchase liability was $ 140 thousand and $ 139 thousand , respectively, and it is included in accounts payable and accrued expenses in the consolidated balance sheets. (b) Legal Proceedings The Company is a party to various legal proceedings in the normal course of business. The Company, after consultation with legal counsel, believes the disposition of all pending litigation will not have a material effect on the Company’s consolidated financial condition or results of operations. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 10 — Stock-Based Compensation The Company’s 2020 Omnibus Incentive Plan, or the 2020 Plan, authorized grants of stock‑based compensation instruments to purchase or issue up to 1,520,000 shares of Company common stock. In connection with its IPO in January 2020, the Company granted stock options to non-employee directors and certain employees, including named executive officers to purchase approximately 782,500 shares of common stock with an exercise price per share equal to the initial public offering price of $13.00. 10,000 shares were forfeited in January 2020. On December 24, 2020, the Company granted stock options to a non-employee director to purchase 12,500 shares of common stock with an exercise price per share equal to the grant date market price of $6.28. In January 2021, the Company issued 480,000 shares of restricted stock awards to certain employees, including named executive officers at no cost to employees. In May 2021, the Company issued 26,511 shares of restricted stock awards to certain non-employee directors. Stock-based awards vest ratably over a service period of three years from the date of the grant. Compensation expense related to stock-based awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight-line method. The Company recognized $0.5 million and $0.2 million compensation expense related to the outstanding stock options and unvested restricted stock awards granted to employees for the three months ended June 30, 2021 and 2020, respectively. Such amount is included in “Compensation and employee benefits” on the Consolidated Statement of Income. The amount of unrecognized compensation expense related to unvested stock options and restricted stock awards totaled $4.7 million and $2.6 million as of June 30, 2021 and 2020, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11 — Earnings Per Share The Series A Convertible The Company’s participating securities also include unvested restricted stock awards that contain non-forfeitable rights to dividends. The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. B The following table presents the basic and diluted earnings per share calculations for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per share data) (In thousands, except per share data) Basic EPS: Net income $ 9,453 $ 2,141 $ 12,849 $ 4,720 Less: deemed dividends on preferred stock — 48,955 — 48,955 Net income attributable to common stockholders $ 9,453 $ (46,814 ) $ 12,849 $ (44,235 ) Less: undistributed earnings attributable to participating securities 3,571 — 4,854 — Net earnings attributable to common stockholders $ 5,882 $ (46,814 ) $ 7,995 $ (44,235 ) Weighted average common shares outstanding 20,087 20,087 20,087 20,087 Basic earnings per common share $ 0.29 $ (2.33 ) $ 0.40 $ (2.20 ) Diluted EPS: Net income attributable to common stockholders $ 9,453 $ (46,814 ) $ 12,849 $ (44,235 ) Weighted average common shares outstanding 20,087 20,087 20,087 20,087 Add dilutive effects for assumed conversion of Series A preferred stock 11,688 — 11,688 — Add dilutive effects for warrants 1,985 — 1,786 — Add dilutive effects for stock options 3 — 2 — Add dilutive effects of unvested restricted stock awards 197 — 121 — Weighted average diluted common shares outstanding 33,960 20,087 33,684 20,087 Diluted income per common share $ 0.28 $ (2.33 ) $ 0.38 $ (2.20 ) The following table sets forth the number of shares excluded from the computation of diluted loss per share, as their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Shares underlying Series A Convertible Preferred Stock — 11,688 — 11,688 Shares underlying warrants — 3,013 — 3,013 Stock options 773 773 773 773 Unvested restricted stock awards — NA — NA Share equivalents excluded from EPS 773 15,474 773 15,474 |
Convertible Preferred Stock
Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2021 | |
Convertible Preferred Stock [Abstract] | |
Convertible Preferred Stock | Note 12 — Convertible Preferred Stock On April 7, 2020, the Company issued and sold in a private placement 45,000 newly issued shares of Series A Convertible Preferred Stock, par value $0.01 per share (the “Preferred”), at a price per share of $1,000, plus warrants (the “Warrants”) to purchase an aggregate of 3,013,125 shares of the Company’s common stock to funds affiliated with Snow Phipps and a fund affiliated with Pacific Investment Management Company LLC (TOBI). Snow Phipps and TOBI are considered affiliates and, therefore, are related parties to the Company. This offering resulted in net proceeds to the Company of $43.2 million. In connection with these transactions, the Company entered into a securities purchase agreement with Snow Phipps and TOBI granting TOBI the right to nominate an additional director to the Company’s board of directors for so long as TOBI and its permitted transferees meet certain ownership thresholds. The Preferred ranks senior to the Company’s common stock with respect to the payment of dividends and distribution of assets upon liquidation, dissolution and winding up. It is entitled to receive any dividends or distributions paid in respect of the common stock on an as-converted basis and has no stated maturity and will remain outstanding indefinitely unless converted into common stock or repurchased by the Company. Holders of the Preferred will be entitled to vote, together with the holders of common stock, on an as-converted basis, subject to limitations of the rules of the New York Stock Exchange, on all matters submitted to a vote of the holders of common stock, and as a separate class as required by law. The holders of the Preferred will also have the right to elect two directors to the board of directors of the Company if the Company defaults under its obligation to repurchase the Preferred. The Preferred has a liquidation preference equal to the greater of (i) $2,000 per share from April 7, 2020 through October 7, 2022, which amount increases ratably to $3,000 per share from October 8, 2022 through November 28, 2024 and to $3,000 per share from and after November 28, 2024 and (ii) the amount such holder would have received if the Preferred had converted into common stock immediately prior to such liquidation. E ach share of the Preferred is convertible at the option of the holder into the number of shares of common stock equal to the applicable conversion rate of $ 1,000 divided by the applicable conversion price plus cash in lieu of fractional shares, if any. The initial conversion price is $ 3.85 and is subject to customary antidilution adjustments. Beginning on October 8, 2021, the Company has the option to force a conversion of the preferred stock to common stock, provided that the daily Volume Weighted Average Price (“VWAP”) for a share of VEL common stock is more than 200% of the $3.85 conversion price for at least 20 trading days, whether consecutive or not, in the period of 30 consecutive trading days, provided that the 20 trading days includes the final 5 trading days of the 30-trading day period. Beginning on October 7, 2022, if not for the repurchase prohibition contained in the Company’s material indebtedness, and in no event later than November 28, 2024, holders of the Preferred have the option to cause the Company to repurchase all or a portion of such holder’s shares of Preferred, for an amount in cash equal to such share’s liquidation preference. If the Company defaults on its repurchase obligation, the holders of the Preferred have the right (until the repurchase price has been paid in full, in cash, or such the Preferred has been converted) to force a sale of the Company and the holders of the Preferred will have the right to elect two directors of the Company’s Board until such default is cured. The Company is also required to redeem the Preferred upon a change of control (as defined in the certificate of designation governing the Preferred). The Warrants are exercisable at the warrantholder’s option at any time and from time to time, in whole or in part, until April 7, 2025 at an exercise price of $2.96 per share of common stock, with respect to 2,008,750 of the Warrants, and at an exercise price of $4.94 per share of common stock, with respect to 1,004,375 of the Warrants. The exercise price and the number of shares of common stock issuable upon exercise of the Warrants are subject to customary antidilution adjustments and certain issuances of common stock (or securities convertible into or exercisable for common stock) at a price (or having a conversion or exercise price) that is less than the then current exercise price. The Company is not required to affect an exercise of Warrants, if after giving effect to the issuance of common stock upon exercise of such Warrants such warrantholder together with its affiliates would beneficially own 49% or more of the Company’s outstanding common stock. The Company determined that none of the features embedded in the Preferred were required to be accounted for separately as a derivative. The Preferred is recorded as mezzanine equity (temporary equity) on the consolidated balance sheets because it is not mandatorily redeemable, but does contain a redemption feature at the option of the Preferred holders that is considered not solely within the Company’s control. At June 30, 2020, the Company recognized the Preferred maximum redemption value of $90.0 million, which is the maximum redemption value on the earliest redemption date based on a redemption value of $2,000 per share and 45,000 shares of Preferred. The recording of the Preferred maximum redemption value was treated as a deemed dividend and resulted in a $49.0 million charge to Shareholders’ Equity. The maximum redemption value of $90.0 million remains the same as of June 30, 2021 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13 — Fair Value Measurements Fair Value ASC Topic 820, “ Fair Value Measurement • Level 1 - Valuation is based on quoted prices for identical instruments traded in active markets. • Level 2 - Valuation is based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data. • Level 3 - Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities. Given the nature of some of the Company’s assets and liabilities, clearly determinable market-based valuation inputs are often not available; therefore, these assets and liabilities are valued using internal estimates. As subjectivity exists with respect to the valuation estimates used, the fair values disclosed may not equal prices that can ultimately be realized if the assets are sold or the liabilities are settled with third parties. Below is a description of the valuation methods for the assets and liabilities recorded at fair value on either a recurring or nonrecurring basis and for estimating fair value of financial instruments not recorded at fair value for disclosure purposes. While management believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the measurement date. Cash and Cash Equivalents and Restricted Cash Cash and restricted cash are recorded at historical cost. The carrying amount is a reasonable estimate of fair value as these instruments have short-term maturities and interest rates that approximate market, a Level 1 measurement. Loans Held for Investment Loans held for investment are recorded at their outstanding principal balance, net of purchase discounts, deferred loan origination fees/costs, and allowance for credit losses. The Company determined the fair value estimate of loans held for investment using a third-party loan valuation model, a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the Company’s mortgage loans held for investment are discount rates, prepayment speeds, loss severity, and default rates. Significant changes in any of those inputs could result in a significant change to the loans’ fair value measurement. Collateral Dependent or Loans Individually Evaluated Nonaccrual loans held for investment are evaluated individually and are recorded at fair value on a nonrecurring basis. To the extent a loan is collateral dependent, the Company determines the allowance for credit losses based on the estimated fair value of the underlying collateral. The fair value of each loan’s collateral is generally based on appraisals or broker price opinions obtained, less estimated costs to sell, a Level 3 measurement. Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value, with fair value adjustments recorded on a nonrecurring basis. The Company uses a discounted cash flow model to estimate the fair value of loans held for sale, a Level 3 measurement. Interest-Only Strips The Company retains an interest-only strip on certain sales of held for sale loans. The interest-only strips are classified as trading securities under FASB ASC Topic 320, Investments-Debt Securities Loans Held for Investment, at Fair Value The Company has elected to account for certain purchased distressed loans held for investment, at fair value (the FVO Loans) using FASB ASC Topic 825, Financial Instruments The Company uses a third-party loan valuation model to estimate the fair value at instrument level, a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the Company’s mortgage loans held for investment, at fair value are discount rate, property values, prepayment speeds, loss severity, and default rates. Significant changes in any of those inputs in isolation could result in a significant change to the loans’ fair value measurement. Real Estate Owned, Net (REO) Real estate owned, net is initially recorded at the property’s estimated fair value, based on appraisals or broker price opinions obtained, less estimated costs to sell, at the acquisition date, a Level 3 measurement. From time to time, nonrecurring fair value adjustments are made to real estate owned, net based on the current updated appraised value of the property, or management’s judgment and estimation of value based on recent market trends or negotiated sales prices with potential buyers. Secured Financing, Net (Corporate Debt) The Company determined the fair values estimate of the secured financing using the estimated cash flows discounted at an appropriate market rate, a Level 3 measurement. Warehouse Repurchase Facilities, Net Warehouse repurchase facilities are recorded at historical cost. The carrying amount is a reasonable estimate of fair value as these instruments have short-term maturities of one-year or less and interest rates that approximate market plus a spread, a Level 2 measurement. Securitizations, Net The fair value estimate of securities issued is determined by using estimated cash flows discounted at an appropriate market rate, a Level 3 measurement. Accrued Interest Receivable and Accrued Interest Payable The carrying amounts of accrued interest receivable and accrued interest payable approximate fair value due to the short-term nature of these instruments, a Level 1 measurement. The Company does not have any off-balance sheet financial instruments. Fair Value Disclosures The following tables present information on assets measured and recorded at fair value as of June 30, 2021 and December 31, 2020, by level, in the fair value hierarchy (in thousands): Fair value measurements using Total at June 30, 2021 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 1,370 $ 1,370 Interest-only strips — — 81 81 Total recurring fair value measurements — — 1,451 1,451 Nonrecurring fair value measurements: Loans held for sale, net — — 1,280 1,280 Real estate owned, net — — 15,743 15,743 Individually evaluated loans requiring specific allowance, net — — 19,619 19,619 Total nonrecurring fair value measurements — — 36,642 36,642 Total assets $ — $ — $ 38,093 $ 38,093 Fair value measurements using Total at December 31, 2020 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 1,539 $ 1,539 Interest-only strips — — 238 238 Total recurring fair value measurements — — 1,777 1,777 Nonrecurring fair value measurements: Loans held for sale, net — — 13,106 13,106 Real estate owned, net — — 15,767 15,767 Impaired loans requiring specific allowance, net — — 19,340 19,340 Total nonrecurring fair value measurements — — 48,213 48,213 Total assets $ — $ — $ 49,990 $ 49,990 The following table presents gains and losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain (loss) on assets measured on a nonrecurring basis 2021 2020 2021 2020 Loans held for sale, net $ (15 ) $ (921 ) $ 2 $ (961 ) Real estate held for sale, net (800 ) (648 ) (1,235 ) (1,216 ) Individually evaluated loans requiring specific allowance, net 1,029 (431 ) 720 (360 ) Total net loss $ 214 $ (2,000 ) $ (513 ) $ (2,537 ) The following tables present the primary valuation techniques and unobservable inputs related to Level 3 assets as of June 30, 2021 and December 31, 2020 (dollars in thousands): June 30, 2021 Asset category Fair value Primary valuation technique Unobservable input Range Weighted average Individually evaluated loans requiring specific allowance, net $ 19,619 Market comparables Selling costs 8.0% 8.0% Real estate owned, net 15,743 Market comparables Selling costs 8.0% 8.0% Loans held for investment, at fair value 1,370 Discounted cash flow Discount rate 6.2% 6.2% Collateral value (% of UPB) 95.0% to 118.0% 106.0% Timing of resolution/payoff (months) 1 to 36 33 Prepayment rate 21.8% to 50.0% 21.8% to 50.0% Default rate 0.3% to 2.6% 1.0% Loss severity rate 0.0% to 8.3% 5.0% Loans held for sale 1,280 Discounted cash flow Discount rate 6.2% 6.2% Timing of resolution/payoff (months) 3 3 Interest-only strips 81 Discounted cash flow Discount rate 15.0% 15.0% Timing of resolution/payoff (months) 0 to 12 7 December 31, 2020 Asset category Fair value Primary valuation technique Unobservable input Range Weighted average Individually evaluated loans requiring specific allowance, net $ 19,340 Market comparables Selling costs 8.0% 8.0% Real estate owned, net 15,767 Market comparables Selling costs 8.0% 8.0% Loans held for investment, at fair value 1,539 Discounted cash flow Discount rate 6.2% 6.2% Collateral value (% of UPB) 94.0% to 104.0% 100.0% Timing of resolution/payoff (months) 14 to 31 25.0 Prepayment rate 17.5% to 30.0% 17.5% to 30.0% Default rate 5.0% to 15.0% 12.0% Loss severity rate 1.0% 1.0% Loans held for sale 13,106 Discounted cash flow Discount rate 6.2% 6.2% Timing of resolution/payoff (months) 31 to 34 32.0 Interest-only strips 238 Discounted cash flow Discount rate 15.0% 15.0% Timing of resolution/payoff (months) 0 to 12 1.5 The following is a rollforward of loans that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning balance $ 1,364 $ 2,987 $ 1,539 $ 2,960 Loans liquidated — — (163 ) — Principal paydowns (14 ) (18 ) (24 ) (36 ) Total unrealized gain (loss) included in net income 20 (13 ) 18 32 Ending balance $ 1,370 $ 2,956 $ 1,370 $ 2,956 The following is a rollforward of interest-only strips that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning balance $ 125 $ 1,534 $ 238 $ 894 Interest-only strip additions — — — 1,820 Interest-only strip write-offs (44 ) (689 ) (157 ) (1,869 ) Total unrealized loss included in net income — — — — Ending balance $ 81 $ 845 $ 81 $ 845 The Company estimates the fair value of certain financial instruments on a quarterly basis. These instruments are recorded at fair value through the use of a valuation allowance only if they are individually evaluated. As described above, these adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. As of June 30, 2021 and December 31, 2020, the only financial assets measured at fair value, or lower of cost or fair value, were certain individually evaluated loans held for investment, loans held for sale, interest-only strips, REO and FVO loans, which were measured using unobservable inputs, including appraisals and broker price opinions on the values of the underlying collateral. Individually evaluated loans requiring an allowance were carried at approximately $19.6 million and $19.3 million as of June 30, 2021 and December 31, 2020, net of specific allowance for credit losses of approximately $1.9 million and $2.7 million, respectively. A financial instrument is cash, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated (in thousands): June 30, 2021 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 27,741 $ 27,741 $ — $ — $ 27,741 Restricted cash 7,921 7,921 — — 7,921 Loans held for sale, net 7,916 — — 7,916 7,916 Loans held for investment, net 2,083,753 — — 2,186,434 2,186,434 Loans held for investment, at fair value 1,370 — — 1,370 1,370 Accrued interest receivables 11,094 11,094 — — 11,094 Interest-only strips 81 — — 81 81 Liabilities: Secured financing, net $ 164,053 $ — $ — $ 173,031 $ 173,031 Warehouse repurchase facilities, net 151,872 — 151,872 — 151,872 Securitizations, net 1,558,163 — — 1,642,834 1,642,834 Accrued interest payable 5,506 5,506 — — 5,506 December 31, 2020 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 13,273 $ 13,273 $ — $ — $ 13,273 Restricted cash 7,020 7,020 — — 7,020 Loans held for sale, net 13,106 — — 13,106 13,106 Loans held for investment, net 1,948,089 — — 2,003,301 2,003,301 Loans held for investment, at fair value 1,539 — — 1,539 1,539 Accrued interest receivable 11,373 11,373 — — 11,373 Interest-only strips 238 — — 238 238 Liabilities: Secured financing, net $ 74,982 $ — $ — $ 78,000 $ 78,000 Warehouse repurchase facilities, net 75,923 — 75,923 — 75,923 Securitizations, net 1,579,019 — — 1,616,222 1,616,222 Accrued interest payable 5,503 5,503 — — 5,503 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 — Subsequent Events On July 29, 2021, the Company entered into a non-mark-to-market Term Repurchase Agreement (“the July 2021 Term Repurchase Agreement”) with a warehouse lender. The July 2021 Term Repurchase Agreement has a maturity date of July 29, 2024, with an option to extend the term to July 29, 2025. During the borrowing period, the Company can take loan advances from time to time subject to availability. Each loan advance bears interest at one-month LIBOR with a 0.5% floor plus 4.5% per annum. The maximum capacity under this facility is $100.0 million. The Company has evaluated events that have occurred subsequent to June 30, 2021 through the issuance of the accompanying consolidated financial statements and has concluded there are no other subsequent events that would require recognition or disclosure in the accompanying consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Partnership to Corporation Conversion | (a) Partnership to Corporation Conversion On January 16, 2020, Velocity Financial, LLC converted from a limited liability company to a corporation and changed its name to Velocity Financial, Inc. The Conversion was accounted for in accordance with ASC 805-50 – Business Combinations , as a transaction between entities under common control. All assets and liabilities of Velocity Financial, LLC were contributed to Velocity Financial, Inc. at their carrying value, and the results of operations are being presented as if the Conversion had occurred on January 1, 2020. Additionally, Class A and Class D’s partnership equity at December 31, 2019 were converted to stockholders’ equity and presented as such on the Consolidated Balance Sheets and the Consolidated Statement of Changes in Stockholders’ Equity effective January 1, 2020. |
Use of Estimates | (b) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of consolidated income and expenses during the reporting period. |
Significant Accounting Policies | (c) Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 — Basis of Presentation and Summary of Significant Accounting Policies , of its audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the Securities and Exchange Commission ("Form 10-K"). There have been no significant changes to the Company’s significant accounting policies as described in its 2020 Annual Report. |
Principles of Consolidation | (d) Principles of Consolidation The principles of consolidation require management to determine and reassess the requirement to consolidate VIEs each reporting period, and therefore, the determination may change based on new facts and circumstances pertaining to each VIE. This could result in a material impact to the Company’s consolidated financial statements in subsequent reporting periods. The Company consolidates the assets, liabilities, and remainder interests of the Trusts as management determined that VCC is the primary beneficiary of these entities. The Company’s ongoing asset management responsibilities provide the Company with the power to direct the activities that most significantly impact the VIE’s economic performance, and the remainder interests provide the Company with the right to receive benefits and the obligation to absorb losses, limited to its investment in the remainder interest of the Trusts. The following table presents a summary of the assets and liabilities of the Trusts as of June 30, 2021 and December 31, 2020. Intercompany balances have been eliminated for purposes of this presentation (in thousands): June 30, 2021 December 31, 2020 Restricted cash $ 6,143 $ 6,743 Loans held for investment, net 1,858,737 1,874,991 Accrued interest and other receivables 82,829 82,342 Real estate owned, net 14,395 9,698 Other assets 9 12 Total assets $ 1,962,113 $ 1,973,786 Accounts payable and accrued expenses $ 43,844 $ 43,795 Securities issued 1,558,163 1,579,019 Total liabilities $ 1,602,007 $ 1,622,814 The consolidated financial statements as of June 30, 2021 and December 31, 2020 include only those assets, liabilities, and results of operations related to the business of the Company, its subsidiaries, and VIEs. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Assets and Liabilities of Trusts | The following table presents a summary of the assets and liabilities of the Trusts as of June 30, 2021 and December 31, 2020. Intercompany balances have been eliminated for purposes of this presentation (in thousands): June 30, 2021 December 31, 2020 Restricted cash $ 6,143 $ 6,743 Loans held for investment, net 1,858,737 1,874,991 Accrued interest and other receivables 82,829 82,342 Real estate owned, net 14,395 9,698 Other assets 9 12 Total assets $ 1,962,113 $ 1,973,786 Accounts payable and accrued expenses $ 43,844 $ 43,795 Securities issued 1,558,163 1,579,019 Total liabilities $ 1,602,007 $ 1,622,814 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 (in thousands): Six Months Ended June 30, 2021 2020 Cash and cash equivalents $ 27,741 $ 9,803 Restricted cash 7,921 6,735 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 35,662 $ 16,538 |
Loans Held for Sale, Net (Table
Loans Held for Sale, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Summary of Loans Held for Sale | The following table summarizes loans held for sale as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Unpaid principal balance $ 7,823 $ 12,929 Valuation adjustments (15 ) (17 ) Deferred loan origination costs 108 194 Ending balance $ 7,916 $ 13,106 |
Loans Held for Investment and_2
Loans Held for Investment and Loans Held for Investment at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Summary of Loans Held for Investment | The following tables summarize loans held for investment as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 2,061,008 $ 1,354 $ 2,062,362 Valuation adjustments on FVO loans — 16 16 Deferred loan origination costs 26,708 — 26,708 2,087,716 1,370 2,089,086 Allowance for loan losses (3,963 ) — (3,963 ) Total loans held for investment and loans held for investment at fair value, net $ 2,083,753 $ 1,370 $ 2,085,123 December 31, 2020 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 1,930,334 $ 1,541 $ 1,931,875 Valuation adjustments on FVO loans — (2 ) (2 ) Deferred loan origination costs 23,600 — 23,600 1,953,934 1,539 1,955,473 Allowance for loan losses (5,845 ) — (5,845 ) Total loans held for investment and loans held for investment at fair value, net $ 1,948,089 $ 1,539 $ 1,949,628 |
Summary of UPB and Amortized Cost Basis of Loans in COVID-19 Forbearance Program | The following table presents the activity in the Unpaid Principal Balance (“UPB”) and amortized cost basis of loans in the Company's COVID-19 forbearance program for the three and six months ended June 30, 2021 ($ in thousands): Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 UPB % Amortized Cost % UPB % Amortized Cost % Beginning balance $ 363,739 $ 368,230 $ 392,073 $ 396,918 Additions — — 2,616 2,615 Foreclosures — — (253 ) (260 ) Repayments (21,297 ) (21,533 ) (51,994 ) (52,576 ) Ending balance $ 342,442 $ 346,697 $ 342,442 $ 346,697 Performing/Accruing $ 251,929 73.6% $ 255,284 73.6% $ 251,929 73.6% $ 255,284 73.6% Nonperforming/Nonaccrual $ 90,513 26.4% $ 91,413 26.4% $ 90,513 26.4% $ 91,413 26.4% The following table presents the UPB and amortized cost basis of loans in the Company's COVID-19 forbearance program as of December 31, 2020 ($ in thousands): December 31, 2020 UPB % Amortized Cost % Ending balance $ 392,073 $ 396,918 Performing/Accruing $ 327,708 83.6% $ 330,495 83.3% Nonperforming/Nonaccrual $ 64,365 16.4% $ 66,423 16.7% |
Schedule of Loans Held for Investment Pledged as Collateral for Warehouse Facilities and Securitizations Issued | As of June 30, 2021 and December 31, 2020, the gross unpaid principal balance of loans held for investment pledged as collateral for the Company’s warehouse facilities, and securitizations issued were as follows (in thousands): June 30, 2021 December 31, 2020 The 2013 repurchase agreement $ 51,819 $ 91,074 The 2015 repurchase agreement 118,950 — The Bank credit agreement 31,022 — The 2021 term repurchase agreement 2,159 — Total pledged loans $ 203,950 $ 91,074 2014-1 Trust 19,622 22,228 2015-1 Trust 38,829 48,179 2016-1 Trust 61,430 71,271 2016-2 Trust 38,625 47,282 2017-1 Trust 64,463 81,376 2017-2 Trust 112,962 137,970 2018-1 Trust 88,449 112,042 2018-2 Trust 194,078 224,195 2019-1 Trust 175,707 203,144 2019-2 Trust 154,113 175,560 2019-3 Trust 121,069 135,527 2020-1 Trust 216,118 241,664 2020-2 Trust 113,023 123,646 2020-MC1 Trust 174,909 228,470 2021-1 Trust 261,965 — Total $ 1,835,362 $ 1,852,554 |
Schedule of Nonaccrual With No Allowance for Loan Loss and Total Nonaccrual of Loans Held for Investment | The following tables present the amortized cost basis, or recorded investment, of the Company’s loans held for investment that were nonperforming and on nonaccrual status as of June 30, 2021 and December 31, 2020, and accruing loans that were 90 days or more past due (“DPD”) as of June 30, 2021 and December 31, 2020. These accruing loans that were 90 or more days past due represent loans that were granted a forbearance under the Company’s COVID-19 payment forbearance programs. June 30, 2021 Total Nonaccrual Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans Loans 90+ DPD Still Accruing COVID-19 Program ($ in thousands) Commercial - Purchase $ 19,314 $ 18,768 $ 546 $ 57 0.3 % $ — Commercial - Refinance 92,397 82,097 10,300 1,005 4.6 — Residential 1-4 Unit - Purchase 21,084 20,736 348 120 0.6 — Residential 1-4 Unit - Refinance 112,294 107,468 4,826 342 1.6 156 Quick Fix 1-4 Unit - Purchase 23,883 23,467 416 56 0.3 — Quick Fix 1-4 Unit - Refinance 50,002 44,870 5,132 369 1.7 — Total $ 318,974 $ 297,406 $ 21,568 $ 1,949 9.1 % $ 156 Troubled Debt Restructuring included in nonaccrual loans: $ 169 $ — $ — $ 25 — $ — December 31, 2020 Total Nonaccrual Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans Loans 90+ DPD Still Accruing COVID-19 Program ($ in thousands) Commercial - Purchase $ 22,166 $ 20,955 $ 1,211 $ 153 0.7 % $ — Commercial - Refinance 101,117 96,804 4,313 519 2.3 1,747 Residential 1-4 Unit - Purchase 26,373 25,839 534 128 0.6 — Residential 1-4 Unit - Refinance 120,152 113,206 6,946 465 2.1 109 Quick Fix 1-4 Unit - Purchase 6,585 3,808 2,777 525 2.4 — Quick Fix 1-4 Unit - Refinance 59,843 53,616 6,227 878 4.0 123 Total $ 336,236 $ 314,228 $ 22,008 $ 2,668 12.1 % $ 1,979 Troubled Debt Restructuring included in nonaccrual loans: $ 173 $ — $ — $ 25 — $ — |
Schedule of Accrued Interest Receivables Written Off by Reversing Interest Income by Portfolio Segment | The following tables present the amortized cost basis in the loans held for investment, excluding loans held for investment at fair value, as of June 30, 2021 and 2020, and the amount of accrued interest receivables written off by reversing interest income by portfolio segment for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, 2021 2020 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 366,737 $ 53 $ 303,373 $ 303 Commercial - Refinance 690,964 225 711,397 1,961 Residential 1-4 Unit - Purchase 276,896 63 245,579 321 Residential 1-4 Unit - Refinance 608,543 281 606,432 1,643 Quick Fix 1-4 Unit - Purchase 40,205 639 — — Quick Fix 1-4 Unit - Refinance 104,371 117 — — Total $ 2,087,716 $ 1,378 $ 1,866,781 $ 4,228 Six Months Ended June 30, 2021 2020 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 366,737 $ 192 $ 303,373 $ 425 Commercial - Refinance 690,964 693 711,397 2,633 Residential 1-4 Unit - Purchase 276,896 121 245,579 404 Residential 1-4 Unit - Refinance 608,543 801 606,432 2,255 Quick Fix 1-4 Unit - Purchase 40,205 685 — — Quick Fix 1-4 Unit - Refinance 104,371 358 — — Total $ 2,087,716 $ 2,850 $ 1,866,781 $ 5,717 |
Schedule of Activity in Allowance for Credit Losses | The following tables present the activity in the allowance for credit losses for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, 2021 Residential Residential Quick Fix Quick Fix Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1,2021 $ 328 $ 1,990 $ 322 $ 1,227 $ 386 $ 1,628 $ 5,881 Provision for loan losses (1) 48 28 (41 ) (229 ) (313 ) (493 ) (1,000 ) Charge-offs (114 ) (95 ) — (151 ) — (558 ) (918 ) Ending balance $ 262 $ 1,923 $ 281 $ 847 $ 73 $ 577 $ 3,963 Allowance related to: Loans individually evaluated $ 57 $ 1,005 $ 120 $ 342 $ 56 $ 369 $ 1,949 Loans collectively evaluated 205 918 161 507 16 207 2,014 Amortized cost related to: Loans individually evaluated $ 19,314 $ 92,397 $ 21,084 $ 112,294 $ 23,883 $ 50,002 $ 318,974 Loans collectively evaluated 347,423 598,567 255,812 496,249 16,322 54,369 1,768,742 Three Months Ended June 30, 2020 Residential Residential Quick Fix Quick Fix Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1,2021 $ 352 $ 1,594 $ 250 $ 1,300 $ — $ — 3,496 Provision for loan losses (1) 172 1,093 211 324 — — 1,800 Charge-offs — — (58 ) (18 ) — — (76 ) Ending balance $ 524 $ 2,687 $ 403 $ 1,606 $ — $ — $ 5,220 Six Months Ended June 30, 2021 Residential Residential Quick Fix Quick Fix Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1,2021 $ 373 $ 2,093 $ 333 $ 1,216 $ 595 $ 1,235 $ 5,845 Provision for loan losses (1) 3 (76 ) (15 ) (218 ) (508 ) (81 ) (895 ) Charge-offs (114 ) (94 ) (37 ) (151 ) (14 ) (577 ) (987 ) Ending balance $ 262 $ 1,923 $ 281 $ 847 $ 73 $ 577 $ 3,963 Allowance related to: Loans individually evaluated $ 57 $ 1,005 $ 120 $ 342 $ 56 $ 369 $ 1,949 Loans collectively evaluated 205 918 161 507 16 207 2,014 Amortized cost related to: Loans individually evaluated $ 19,314 $ 92,397 $ 21,084 $ 112,294 $ 23,883 $ 50,002 $ 318,974 Loans collectively evaluated 347,423 598,567 255,812 496,249 16,322 54,369 1,768,742 Six Months Ended June 30, 2020 Residential Residential Quick Fix Quick Fix Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning balance, prior to adoption of ASC 326 $ 304 $ 1,016 $ 148 $ 772 $ — $ — $ 2,240 Impact of adopting ASC 326 19 62 9 47 — — 137 Balance - January 1, 2020 $ 323 $ 1,078 $ 157 $ 819 $ — $ — $ 2,377 Provision for loan losses (1) 280 1,609 382 817 — — 3,088 Charge-offs (79 ) — (136 ) (30 ) — — (245 ) Ending balance $ 524 $ 2,687 $ 403 $ 1,606 $ — $ — $ 5,220 Allowance related to: Loans individually evaluated $ 181 $ 592 $ 96 $ 404 $ — $ — 1,273 Loans collectively evaluated 342 2,095 307 1,203 — — 3,947 Amortized cost related to: Loans individually evaluated $ 20,615 $ 113,350 $ 22,017 $ 114,790 $ — $ — 270,772 Loans collectively evaluated 282,759 598,046 223,561 491,643 — — 1,596,009 (1) The provision for loan losses decreased from approximately $1.8 million and $3.1 million for the three and six months ended June 30,2020 respectively to reversal of $(1.0) and $(0.9) million for the three and six months ended June 30, 2021 respectively due mainly to an improved economic outlook as the economy recovers from the COVID-19 pandemic. |
Schedule of Aging Status of Amortized Cost Basis in Loans Held for Investment Portfolio | The following table presents the aging status of the amortized cost basis in the loans held for investment portfolio, excluding loans held for investment at fair value, which includes $346.7 million and $396.9 million loans in the Company’s COVID-19 forbearance program as of June 30, 2021 and December 31, 2020, respectively (in thousands): 30–59 days 60–89 days 90+days Total Total June 30, 2021 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 762 $ 1,571 $ 16,981 $ 19,314 $ — $ 19,314 Commercial - Refinance 4,668 7,065 80,664 92,397 — 92,397 Residential 1-4 Unit - Purchase 84 1,099 19,901 21,084 — 21,084 Residential 1-4 Unit - Refinance 1,344 1,566 109,384 112,294 — 112,294 Quick Fix 1-4 Unit - Purchase — — 23,883 23,883 — 23,883 Quick Fix 1-4 Unit - Refinance 1,322 1,682 46,998 50,002 — 50,002 Total loans individually evaluated $ 8,180 $ 12,983 $ 297,811 $ 318,974 $ — $ 318,974 Loans collectively evaluated Commercial - Purchase $ 9,168 $ 4,931 $ — $ 14,099 $ 333,324 $ 347,423 Commercial - Refinance 19,366 12,264 — 31,630 566,937 598,567 Residential 1-4 Unit - Purchase 4,697 1,307 — 6,004 249,808 255,812 Residential 1-4 Unit - Refinance 29,397 8,481 156 38,034 458,215 496,249 Quick Fix 1-4 Unit - Purchase 2,983 1,572 — 4,555 11,767 16,322 Quick Fix 1-4 Unit - Refinance 4,231 4,291 — 8,522 45,847 54,369 Total loans collectively evaluated $ 69,842 $ 32,846 $ 156 $ 102,844 $ 1,665,898 $ 1,768,742 Ending balance $ 78,022 $ 45,829 $ 297,967 $ 421,818 $ 1,665,898 $ 2,087,716 30–59 days 60–89 days 90+days Total Total December 31, 2020 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 961 $ 1,307 $ 19,898 $ 22,166 $ — $ 22,166 Commercial - Refinance 2,118 7,532 91,467 101,117 — 101,117 Residential 1-4 Unit - Purchase 192 2,915 23,266 26,373 — 26,373 Residential 1-4 Unit - Refinance 1,440 3,010 115,702 120,152 — 120,152 Quick Fix 1-4 Unit - Purchase — — 6,585 6,585 — 6,585 Quick Fix 1-4 Unit - Refinance 964 760 58,119 59,843 — 59,843 Total loans individually evaluated $ 5,675 $ 15,524 $ 315,037 $ 336,236 $ — $ 336,236 Loans collectively evaluated Commercial - Purchase $ 8,000 $ 7,081 $ — $ 15,081 $ 263,657 $ 278,738 Commercial - Refinance 33,725 13,224 1,747 48,696 535,285 583,981 Residential 1-4 Unit - Purchase 5,030 1,261 — 6,291 191,928 198,219 Residential 1-4 Unit - Refinance 33,144 14,567 109 47,820 398,953 446,773 Quick Fix 1-4 Unit - Purchase 1,972 21,780 — 23,752 12,987 36,739 Quick Fix 1-4 Unit - Refinance 8,406 5,383 123 13,912 59,336 73,248 Total loans collectively evaluated $ 90,277 $ 63,296 $ 1,979 $ 155,552 $ 1,462,146 $ 1,617,698 Ending balance $ 95,952 $ 78,820 $ 317,016 $ 491,788 $ 1,462,146 $ 1,953,934 |
Schedule of Amortized Cost in Loans Held for Investment based on Accrual Status and by Loan Origination Year | The following tables present the amortized cost in loans held for investment, excluding loans held for investment at fair value, based on accrual status and by loan origination year as of June 30, 2021 and December 31, 2020 (in thousands). Term Loans Amortized Cost Basis by Origination Year June 30, 2021: 2021 2020 2019 2018 2017 Pre-2017 Total Commercial - Purchase Payment performance Performing $ 95,441 $ 55,726 $ 91,153 $ 59,586 $ 25,578 $ 19,939 $ 347,423 Nonperforming — 402 4,606 6,396 5,625 2,285 19,314 Total Commercial - Purchase $ 95,441 $ 56,128 $ 95,759 $ 65,982 $ 31,203 $ 22,224 $ 366,737 Commercial - Refinance Payment performance Performing $ 87,103 $ 67,946 $ 157,006 $ 137,078 $ 70,672 $ 78,762 $ 598,567 Nonperforming — 4,046 29,316 29,124 18,856 11,055 92,397 Total Commercial - Refinance $ 87,103 $ 71,992 $ 186,322 $ 166,202 $ 89,528 $ 89,817 $ 690,964 Residential 1-4 Unit - Purchase Payment performance Performing $ 101,387 $ 13,212 $ 60,395 $ 34,837 $ 17,858 $ 28,123 $ 255,812 Nonperforming 232 3,668 5,478 3,977 4,398 3,331 21,084 Total Residential 1-4 Unit - Purchase $ 101,619 $ 16,880 $ 65,873 $ 38,814 $ 22,256 $ 31,454 $ 276,896 Residential 1-4 Unit - Refinance Payment performance Performing $ 141,385 $ 35,589 $ 138,095 $ 83,511 $ 46,183 $ 51,486 $ 496,249 Nonperforming 1,143 7,714 40,030 32,693 17,267 13,447 112,294 Total Residential 1-4 Unit - Purchase $ 142,528 $ 43,303 $ 178,125 $ 116,204 $ 63,450 $ 64,933 $ 608,543 Quick Fix 1-4 Unit - Purchase Payment performance Performing $ 5,222 $ 6,578 $ 4,336 $ 186 $ — $ — $ 16,322 Nonperforming — 14,042 9,425 416 — — 23,883 Total Quick Fix 1-4 Unit - Purchase $ 5,222 $ 20,620 $ 13,761 $ 602 $ — $ — $ 40,205 Quick Fix 1-4 Unit - Refinance Payment performance Performing $ 9,512 $ 21,736 $ 23,121 $ — $ — $ — $ 54,369 Nonperforming — 17,655 26,679 5,668 — — 50,002 Total Quick Fix 1-4 Unit - Refinance $ 9,512 $ 39,391 $ 49,800 $ 5,668 $ — $ — $ 104,371 Total Portfolio $ 441,425 $ 248,314 $ 589,640 $ 393,472 $ 206,437 $ 208,428 $ 2,087,716 Term Loans Amortized Cost Basis by Origination Year December 31, 2020 2020 2019 2018 2017 2016 Pre-2016 Total Commercial - Purchase Payment performance Performing $ 56,446 $ 99,534 $ 64,706 $ 34,862 $ 9,500 $ 13,690 $ 278,738 Nonperforming 1,046 4,666 5,799 7,182 1,539 1,934 22,166 Total Commercial - Purchase $ 57,492 $ 104,200 $ 70,505 $ 42,044 $ 11,039 $ 15,624 $ 300,904 Commercial - Refinance Payment performance Performing $ 75,376 $ 176,854 $ 157,499 $ 87,476 $ 34,858 $ 51,918 $ 583,981 Nonperforming 4,929 26,776 32,955 18,980 10,392 7,085 101,117 Total Commercial - Refinance $ 80,305 $ 203,630 $ 190,454 $ 106,456 $ 45,250 $ 59,003 $ 685,098 Residential 1-4 Unit - Purchase Payment performance Performing $ 26,215 $ 69,775 $ 42,537 $ 25,874 $ 7,056 $ 26,762 $ 198,219 Nonperforming 1,611 5,973 8,949 5,059 1,348 3,433 26,373 Total Residential 1-4 Unit - Purchase $ 27,826 $ 75,748 $ 51,486 $ 30,933 $ 8,404 $ 30,195 $ 224,592 Residential 1-4 Unit - Refinance Payment performance Performing $ 57,945 $ 168,912 $ 96,568 $ 61,033 $ 22,949 $ 39,366 $ 446,773 Nonperforming 3,934 42,159 37,451 17,942 7,653 11,013 120,152 Total Residential 1-4 Unit - Purchase $ 61,879 $ 211,071 $ 134,019 $ 78,975 $ 30,602 $ 50,379 $ 566,925 Quick Fix 1-4 Unit - Purchase Payment performance Performing $ 20,563 $ 15,990 $ 186 $ — $ — $ — $ 36,739 Nonperforming 3,764 2,217 604 — — — 6,585 Total Quick Fix 1-4 Unit - Purchase $ 24,327 $ 18,207 $ 790 $ — $ — $ — $ 43,324 Quick Fix 1-4 Unit - Refinance Payment performance Performing $ 35,234 $ 37,818 $ 196 $ — $ — $ — $ 73,248 Nonperforming 17,318 33,711 8,719 95 — — 59,843 Total Quick Fix 1-4 Unit - Refinance $ 52,552 $ 71,529 $ 8,915 $ 95 $ — $ — $ 133,091 Total Portfolio $ 304,381 $ 684,385 $ 456,169 $ 258,503 $ 95,295 $ 155,201 $ 1,953,934 |
Securitizations Net (Tables)
Securitizations Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Transfers And Servicing [Abstract] | |
Summary of Outstanding Balance Net of Discounts and Deals Costs of Securities and Effective Interest Rate | The following table summarizes the outstanding balance, net of discounts and deal costs, of the securities and the effective interest rate for the six months ended June 30, 2021 and 2020 (dollars in thousands): Six Months Ended June 30, Securitizations: 2021 2020 Securitizations, net $ 1,558,163 $ 1,599,719 Interest expense 37,333 37,104 Average outstanding balance 1,545,969 1,565,754 Effective interest rate (1) 4.83 % 4.74 % (1) Represents annualized interest expense divided by average gross outstanding balance and includes average rate of 4.12% and debt issuance cost amortization of 0.71% and average rate of 4.19% and debt issuance cost amortization of 0.55% for the six months ended June 30, 2021 and 2020, respectively. |
Other Debt (Tables)
Other Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding | The following table summarizes the maximum borrowing capacity and current gross balances outstanding of the Company’s warehouse facilities and loan agreements as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Period end balance (1) Maximum borrowing capacity Period end balance (1) Maximum borrowing capacity The 2021 term repurchase agreement $ 1,435 $ 100,000 — — The 2021 repurchase agreement 84,004 200,000 — — The 2013 repurchase agreement 41,098 100,000 73,502 100,000 The Bank credit agreement 23,663 50,000 — — The 2019 loan agreement 2,700 3,000 2,700 3,000 (1) Warehouse repurchase facilities amounts in the consolidated balance sheets are net of debt issuance costs amounting to $1.0 million and $0.3 million as of June 30, 2021 and December 31, 2020, respectively. |
Schedule of Activity and Effective Interest Rate | The following table provides an overview of the activity and effective interest rate for the three and six months ended June 30, 2021 and 2020 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, Warehouse and repurchase facilities: 2021 2020 2021 2020 Average outstanding balance $ 166,981 $ 242,676 $ 140,254 $ 295,013 Highest outstanding balance at any month-end 250,927 268,149 250,927 439,547 Effective interest rate (1) 5.65 % 4.34 % 5.80 % 4.70 % (1) Represents annualized interest expense divided by average gross outstanding balance and includes average rate of 4.44% and debt issuance cost amortization of 1.21%, and average rate of 3.81% and debt issuance cost amortization of 0.52%, for the three months ended June 30, 2021 and 2020, respectively. The effective interest rate includes average rate of 4.58% and debt issuance cost amortization of 1.22%, and average rate 4.29% and debt issuance cost amortization 0.41% for the six months ended June 30, 2021 and 2020 respectively. The increase in average rate in 2021 was primarily attributable to the higher non-usage fees paid to a lender. The debt issuance cost amortization was higher in 2021 as a result of higher debt issuance costs with a lower average outstanding borrowing balance from a new financing facility. |
Summary of Interest Expense | The following table provides a summary of interest expense that includes debt issuance cost amortization, interest, amortization of discount, and deal cost amortization for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Warehouse and repurchase facilities $ 2,361 $ 2,632 $ 4,067 $ 6,932 Securitizations 18,205 18,557 37,332 37,104 Interest expense — portfolio related 20,566 21,189 41,399 44,036 Interest expense — corporate debt 4,309 1,894 11,658 (1) 8,237 (2) Total interest expense $ 24,875 $ 23,083 $ 53,057 $ 52,273 (1) Included in the $11.7 million of interest expense – corporate debt for the six months ended June 30, 2021 was the one-time debt issuance costs write-off of $2.9 million and prepayment fee of $1.6 million associated payoff of $78.0 million in outstanding principal amount in February 2021. (2) Included in the $8.2 million of interest expense – corporate debt for the six months ended June 30, 2020 was the one-time debt issuance costs write-off of $3.5 million and prepayment fee of $0.3 million associated with the repayment of $75.0 million in outstanding principal amount in January 2020. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table presents the basic and diluted earnings per share calculations for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per share data) (In thousands, except per share data) Basic EPS: Net income $ 9,453 $ 2,141 $ 12,849 $ 4,720 Less: deemed dividends on preferred stock — 48,955 — 48,955 Net income attributable to common stockholders $ 9,453 $ (46,814 ) $ 12,849 $ (44,235 ) Less: undistributed earnings attributable to participating securities 3,571 — 4,854 — Net earnings attributable to common stockholders $ 5,882 $ (46,814 ) $ 7,995 $ (44,235 ) Weighted average common shares outstanding 20,087 20,087 20,087 20,087 Basic earnings per common share $ 0.29 $ (2.33 ) $ 0.40 $ (2.20 ) Diluted EPS: Net income attributable to common stockholders $ 9,453 $ (46,814 ) $ 12,849 $ (44,235 ) Weighted average common shares outstanding 20,087 20,087 20,087 20,087 Add dilutive effects for assumed conversion of Series A preferred stock 11,688 — 11,688 — Add dilutive effects for warrants 1,985 — 1,786 — Add dilutive effects for stock options 3 — 2 — Add dilutive effects of unvested restricted stock awards 197 — 121 — Weighted average diluted common shares outstanding 33,960 20,087 33,684 20,087 Diluted income per common share $ 0.28 $ (2.33 ) $ 0.38 $ (2.20 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth the number of shares excluded from the computation of diluted loss per share, as their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Shares underlying Series A Convertible Preferred Stock — 11,688 — 11,688 Shares underlying warrants — 3,013 — 3,013 Stock options 773 773 773 773 Unvested restricted stock awards — NA — NA Share equivalents excluded from EPS 773 15,474 773 15,474 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Information on Assets Measured and Recorded at Fair Value | The following tables present information on assets measured and recorded at fair value as of June 30, 2021 and December 31, 2020, by level, in the fair value hierarchy (in thousands): Fair value measurements using Total at June 30, 2021 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 1,370 $ 1,370 Interest-only strips — — 81 81 Total recurring fair value measurements — — 1,451 1,451 Nonrecurring fair value measurements: Loans held for sale, net — — 1,280 1,280 Real estate owned, net — — 15,743 15,743 Individually evaluated loans requiring specific allowance, net — — 19,619 19,619 Total nonrecurring fair value measurements — — 36,642 36,642 Total assets $ — $ — $ 38,093 $ 38,093 Fair value measurements using Total at December 31, 2020 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 1,539 $ 1,539 Interest-only strips — — 238 238 Total recurring fair value measurements — — 1,777 1,777 Nonrecurring fair value measurements: Loans held for sale, net — — 13,106 13,106 Real estate owned, net — — 15,767 15,767 Impaired loans requiring specific allowance, net — — 19,340 19,340 Total nonrecurring fair value measurements — — 48,213 48,213 Total assets $ — $ — $ 49,990 $ 49,990 |
Schedule of Gains and Losses Recognized on Assets Measured on Nonrecurring Basis | The following table presents gains and losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain (loss) on assets measured on a nonrecurring basis 2021 2020 2021 2020 Loans held for sale, net $ (15 ) $ (921 ) $ 2 $ (961 ) Real estate held for sale, net (800 ) (648 ) (1,235 ) (1,216 ) Individually evaluated loans requiring specific allowance, net 1,029 (431 ) 720 (360 ) Total net loss $ 214 $ (2,000 ) $ (513 ) $ (2,537 ) |
Valuation Techniques and Unobservable Inputs Related to Level 3 Assets | The following tables present the primary valuation techniques and unobservable inputs related to Level 3 assets as of June 30, 2021 and December 31, 2020 (dollars in thousands): June 30, 2021 Asset category Fair value Primary valuation technique Unobservable input Range Weighted average Individually evaluated loans requiring specific allowance, net $ 19,619 Market comparables Selling costs 8.0% 8.0% Real estate owned, net 15,743 Market comparables Selling costs 8.0% 8.0% Loans held for investment, at fair value 1,370 Discounted cash flow Discount rate 6.2% 6.2% Collateral value (% of UPB) 95.0% to 118.0% 106.0% Timing of resolution/payoff (months) 1 to 36 33 Prepayment rate 21.8% to 50.0% 21.8% to 50.0% Default rate 0.3% to 2.6% 1.0% Loss severity rate 0.0% to 8.3% 5.0% Loans held for sale 1,280 Discounted cash flow Discount rate 6.2% 6.2% Timing of resolution/payoff (months) 3 3 Interest-only strips 81 Discounted cash flow Discount rate 15.0% 15.0% Timing of resolution/payoff (months) 0 to 12 7 December 31, 2020 Asset category Fair value Primary valuation technique Unobservable input Range Weighted average Individually evaluated loans requiring specific allowance, net $ 19,340 Market comparables Selling costs 8.0% 8.0% Real estate owned, net 15,767 Market comparables Selling costs 8.0% 8.0% Loans held for investment, at fair value 1,539 Discounted cash flow Discount rate 6.2% 6.2% Collateral value (% of UPB) 94.0% to 104.0% 100.0% Timing of resolution/payoff (months) 14 to 31 25.0 Prepayment rate 17.5% to 30.0% 17.5% to 30.0% Default rate 5.0% to 15.0% 12.0% Loss severity rate 1.0% 1.0% Loans held for sale 13,106 Discounted cash flow Discount rate 6.2% 6.2% Timing of resolution/payoff (months) 31 to 34 32.0 Interest-only strips 238 Discounted cash flow Discount rate 15.0% 15.0% Timing of resolution/payoff (months) 0 to 12 1.5 |
Rollforward of Loans and Interest Only Strips Measured at Estimated Fair Value on Recurring Basis | The following is a rollforward of loans that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning balance $ 1,364 $ 2,987 $ 1,539 $ 2,960 Loans liquidated — — (163 ) — Principal paydowns (14 ) (18 ) (24 ) (36 ) Total unrealized gain (loss) included in net income 20 (13 ) 18 32 Ending balance $ 1,370 $ 2,956 $ 1,370 $ 2,956 The following is a rollforward of interest-only strips that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning balance $ 125 $ 1,534 $ 238 $ 894 Interest-only strip additions — — — 1,820 Interest-only strip write-offs (44 ) (689 ) (157 ) (1,869 ) Total unrealized loss included in net income — — — — Ending balance $ 81 $ 845 $ 81 $ 845 |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated (in thousands): June 30, 2021 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 27,741 $ 27,741 $ — $ — $ 27,741 Restricted cash 7,921 7,921 — — 7,921 Loans held for sale, net 7,916 — — 7,916 7,916 Loans held for investment, net 2,083,753 — — 2,186,434 2,186,434 Loans held for investment, at fair value 1,370 — — 1,370 1,370 Accrued interest receivables 11,094 11,094 — — 11,094 Interest-only strips 81 — — 81 81 Liabilities: Secured financing, net $ 164,053 $ — $ — $ 173,031 $ 173,031 Warehouse repurchase facilities, net 151,872 — 151,872 — 151,872 Securitizations, net 1,558,163 — — 1,642,834 1,642,834 Accrued interest payable 5,506 5,506 — — 5,506 December 31, 2020 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 13,273 $ 13,273 $ — $ — $ 13,273 Restricted cash 7,020 7,020 — — 7,020 Loans held for sale, net 13,106 — — 13,106 13,106 Loans held for investment, net 1,948,089 — — 2,003,301 2,003,301 Loans held for investment, at fair value 1,539 — — 1,539 1,539 Accrued interest receivable 11,373 11,373 — — 11,373 Interest-only strips 238 — — 238 238 Liabilities: Secured financing, net $ 74,982 $ — $ — $ 78,000 $ 78,000 Warehouse repurchase facilities, net 75,923 — 75,923 — 75,923 Securitizations, net 1,579,019 — — 1,616,222 1,616,222 Accrued interest payable 5,503 5,503 — — 5,503 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) - USD ($) | Jan. 28, 2020 | Jan. 22, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jan. 16, 2020 |
Class Of Stock [Line Items] | |||||
Date of incorporation | Jul. 9, 2012 | ||||
Minimum net worth required | $ 250,000 | ||||
Class A equity units | |||||
Class Of Stock [Line Items] | |||||
Shares issued upon conversion of equity units | 97,513,533 | ||||
Class D equity units | |||||
Class Of Stock [Line Items] | |||||
Shares issued upon conversion of equity units | 60,193,989 | ||||
Common Stock | |||||
Class Of Stock [Line Items] | |||||
Shares issued upon conversion of equity units | 11,749,994 | ||||
Issuance of common stock, shares | 1,087,500 | 7,250,000 | 20,087,494 | ||
Stock price | $ 13 | $ 13 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Assets and Liabilities of Trusts (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Loans held for investment, net | $ 2,083,753 | $ 1,948,089 |
Accrued interest and other receivables | 11,094 | 11,373 |
Real estate owned, net | 20,046 | 15,767 |
Other assets | 7,257 | 6,779 |
Total assets | 2,267,605 | 2,102,874 |
Accounts payable and accrued expenses | 70,049 | 63,361 |
Total liabilities | 1,944,137 | 1,793,285 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 6,143 | 6,743 |
Loans held for investment, net | 1,858,737 | 1,874,991 |
Accrued interest and other receivables | 82,829 | 82,342 |
Real estate owned, net | 14,395 | 9,698 |
Other assets | 9 | 12 |
Total assets | 1,962,113 | 1,973,786 |
Accounts payable and accrued expenses | 43,844 | 43,795 |
Securities issued | 1,558,163 | 1,579,019 |
Total liabilities | $ 1,602,007 | $ 1,622,814 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 27,741 | $ 13,273 | $ 9,803 | |
Restricted cash | 7,921 | 7,020 | 6,735 | |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 35,662 | $ 20,293 | $ 16,538 | $ 27,552 |
Loans Held for Sale, Net - Summ
Loans Held for Sale, Net - Summary of Loans Held for Sale (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Loans Held For Sale [Abstract] | ||
Unpaid principal balance | $ 7,823 | $ 12,929 |
Valuation adjustments | (15) | (17) |
Deferred loan origination costs | 108 | 194 |
Ending balance | $ 7,916 | $ 13,106 |
Loans Held for Investment and_3
Loans Held for Investment and Loans Held for Investment at Fair Value - Summary of Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | $ 1,931,875 | |||||
Valuation adjustments on FVO loans | (2) | |||||
Deferred loan origination costs | 23,600 | |||||
Total loans held for investment and loans held for investment at fair value, gross | 1,955,473 | |||||
Allowance for loan losses | $ (3,963) | $ (5,881) | (5,845) | $ (5,220) | $ (3,496) | $ (2,377) |
Total loans held for investment and loans held for investment at fair value, net | 1,949,628 | |||||
Net Loans Held For Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | 2,061,008 | 1,930,334 | ||||
Deferred loan origination costs | 26,708 | 23,600 | ||||
Total loans held for investment and loans held for investment at fair value, gross | 2,087,716 | 1,953,934 | ||||
Allowance for loan losses | (3,963) | (5,845) | ||||
Total loans held for investment and loans held for investment at fair value, net | 2,083,753 | 1,948,089 | ||||
Loans At Fair Value Held For Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | 1,354 | 1,541 | ||||
Valuation adjustments on FVO loans | 16 | (2) | ||||
Total loans held for investment and loans held for investment at fair value, gross | 1,370 | 1,539 | ||||
Total loans held for investment and loans held for investment at fair value, net | 1,370 | $ 1,539 | ||||
Total Loans Held For Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | 2,062,362 | |||||
Valuation adjustments on FVO loans | 16 | |||||
Deferred loan origination costs | 26,708 | |||||
Total loans held for investment and loans held for investment at fair value, gross | 2,089,086 | |||||
Allowance for loan losses | (3,963) | |||||
Total loans held for investment and loans held for investment at fair value, net | $ 2,085,123 |
Loans Held for Investment and_4
Loans Held for Investment and Loans Held for Investment at Fair Value - Summary of UPB and Amortized Cost Basis of Loans in COVID-19 Forbearance Program (Details) - COVID 19 Forbearance Program - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | |||
UPB Beginning balance | $ 363,739 | $ 392,073 | |
UPB Additions | 2,616 | ||
UPB Foreclosures | (253) | ||
UPB Repayments | (21,297) | (51,994) | |
UPB Ending balance | 342,442 | 342,442 | |
UPB Performing/Accruing, Amount | 251,929 | 251,929 | $ 327,708 |
UPB Nonperforming/Nonaccrual, Amount | $ 90,513 | $ 90,513 | $ 64,365 |
UPB Performing/Accruing, Percentage | 73.60% | 73.60% | 83.60% |
UPB Nonperforming/Nonaccrual, Percentage | 26.40% | 26.40% | 16.40% |
Amortized Cost Beginning balance | $ 368,230 | $ 396,918 | |
Amortized Cost Additions | 2,615 | ||
Amortized Cost Foreclosures | (260) | ||
Amortized Cost Repayments | (21,533) | (52,576) | |
Amortized Cost Ending balance | 346,697 | 346,697 | |
Amortized Cost Performing/Accruing, Amount | 255,284 | 255,284 | $ 330,495 |
Amortized Cost Nonperforming/Nonaccrual, Amount | $ 91,413 | $ 91,413 | $ 66,423 |
Amortized Cost Performing/Accruing, Percentage | 83.30% | ||
Amortized Cost Nonperforming/Nonaccrual, Percentage | 16.70% |
Loans Held for Investment and_5
Loans Held for Investment and Loans Held for Investment at Fair Value - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Accrued interest income recognized on nonaccrual loans | $ 0 | $ 0 | $ 0 | $ 0 | |
Cash basis interest income recognized on nonaccrual loans | 9,900,000 | 3,400,000 | 16,700,000 | 6,700,000 | |
Average recorded investment of individually evaluated loans, computed using month-end balances | 337,900,000 | 217,800,000 | $ 337,500,000 | 180,200,000 | |
Stress Scenario , Descriptions | For the June 30, 2021 estimate, the Company considered a COVID-19 adverse stress scenario with a five-quarter reasonable and supportable forecast period followed by a four-quarter straight-line reversion period. Management concluded that applying the adverse stress scenario was appropriate given the status of the pandemic at the end of June 2021 | ||||
Provision for loan losses | (1,000,000) | 1,800,000 | $ (895,000) | 3,088,000 | |
COVID-19 | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans | 346,700,000 | $ 346,700,000 | $ 396,900,000 | ||
90+days | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Annualized charge rate of non performing loans | 0.59% | 0.65% | |||
Allowance For Credit Losses | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Provision for loan losses | $ (1,000,000) | 1,800,000 | $ (900,000) | 3,100,000 | |
COVID 19 Forbearance Program | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Percentage of loan granted for unusual risk forbearance | 73.60% | 73.60% | 83.60% | ||
Amount of loan granted for unusual risk forbearance | $ 90,200,000 | $ 404,100,000 | $ 90,200,000 | 404,100,000 | |
Accrued interest income recognized on nonaccrual loans | $ 1,300,000 | $ 8,600,000 | |||
Nonaccrual loans Percentage | 26.40% | 26.40% | 16.40% |
Loans Held for Investment and_6
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Loans Held for Investment Pledged as Collateral for Warehouse Facilities and Securitizations Issued (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | $ 203,950 | $ 91,074 |
Total | 1,835,362 | 1,852,554 |
2013 Repurchase Agreement | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 51,819 | 91,074 |
2015 Repurchase Agreement | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 118,950 | |
Bank Credit Agreement | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 31,022 | |
2021 Repurchase Agreement | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 2,159 | |
2014-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 19,622 | 22,228 |
2015-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 38,829 | 48,179 |
2016-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 61,430 | 71,271 |
2016-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 38,625 | 47,282 |
2017-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 64,463 | 81,376 |
2017-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 112,962 | 137,970 |
2018-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 88,449 | 112,042 |
2018-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 194,078 | 224,195 |
2019-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 175,707 | 203,144 |
2019-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 154,113 | 175,560 |
2019-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 121,069 | 135,527 |
2020-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 216,118 | 241,664 |
2020-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 113,023 | 123,646 |
2020-MC1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 174,909 | $ 228,470 |
2021-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 261,965 |
Loans Held for Investment and_7
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Nonaccrual With No Allowance for Loan Loss and Total Nonaccrual of Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 318,974 | $ 336,236 | |
Nonaccrual with No Allowance for Loan Loss | 297,406 | 314,228 | |
Nonaccrual with Allowance for Loan Loss | 21,568 | 22,008 | |
Allowance for Loans Individually Evaluated | $ 1,949 | $ 2,668 | $ 1,273 |
Percentage of Allowance to Total Nonaccrual Loans | 9.10% | 12.10% | |
Troubled Debt Restructuring included in nonaccrual loans: | $ 169 | $ 173 | |
COVID-19 Program | |||
Financing Receivable Impaired [Line Items] | |||
Financing receivable, 90 days or more past due, still accruing | 156 | 1,979 | |
Commercial Purchase Portfolio Segment | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | 19,314 | 22,166 | |
Nonaccrual with No Allowance for Loan Loss | 18,768 | 20,955 | |
Nonaccrual with Allowance for Loan Loss | 546 | 1,211 | |
Allowance for Loans Individually Evaluated | $ 57 | $ 153 | 181 |
Percentage of Allowance to Total Nonaccrual Loans | 0.30% | 0.70% | |
Commercial Refinance Portfolio Segment | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 92,397 | $ 101,117 | |
Nonaccrual with No Allowance for Loan Loss | 82,097 | 96,804 | |
Nonaccrual with Allowance for Loan Loss | 10,300 | 4,313 | |
Allowance for Loans Individually Evaluated | $ 1,005 | $ 519 | 592 |
Percentage of Allowance to Total Nonaccrual Loans | 4.60% | 2.30% | |
Commercial Refinance Portfolio Segment | COVID-19 Program | |||
Financing Receivable Impaired [Line Items] | |||
Financing receivable, 90 days or more past due, still accruing | $ 1,747 | ||
Residential One To Four Unit Purchase Portfolio Segment | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 21,084 | 26,373 | |
Nonaccrual with No Allowance for Loan Loss | 20,736 | 25,839 | |
Nonaccrual with Allowance for Loan Loss | 348 | 534 | |
Allowance for Loans Individually Evaluated | $ 120 | $ 128 | 96 |
Percentage of Allowance to Total Nonaccrual Loans | 0.60% | 0.60% | |
Residential One To Four Unit Refinance Portfolio Segment | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 112,294 | $ 120,152 | |
Nonaccrual with No Allowance for Loan Loss | 107,468 | 113,206 | |
Nonaccrual with Allowance for Loan Loss | 4,826 | 6,946 | |
Allowance for Loans Individually Evaluated | $ 342 | $ 465 | $ 404 |
Percentage of Allowance to Total Nonaccrual Loans | 1.60% | 2.10% | |
Residential One To Four Unit Refinance Portfolio Segment | COVID-19 Program | |||
Financing Receivable Impaired [Line Items] | |||
Financing receivable, 90 days or more past due, still accruing | $ 156 | $ 109 | |
Quick Fix One To Four Unit Purchase Portfolio Segment | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | 23,883 | 6,585 | |
Nonaccrual with No Allowance for Loan Loss | 23,467 | 3,808 | |
Nonaccrual with Allowance for Loan Loss | 416 | 2,777 | |
Allowance for Loans Individually Evaluated | $ 56 | $ 525 | |
Percentage of Allowance to Total Nonaccrual Loans | 0.30% | 2.40% | |
Quick Fix One To Four Unit Refinance Portfolio Segment | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 50,002 | $ 59,843 | |
Nonaccrual with No Allowance for Loan Loss | 44,870 | 53,616 | |
Nonaccrual with Allowance for Loan Loss | 5,132 | 6,227 | |
Allowance for Loans Individually Evaluated | $ 369 | $ 878 | |
Percentage of Allowance to Total Nonaccrual Loans | 1.70% | 4.00% | |
Quick Fix One To Four Unit Refinance Portfolio Segment | COVID-19 Program | |||
Financing Receivable Impaired [Line Items] | |||
Financing receivable, 90 days or more past due, still accruing | $ 123 | ||
Individual Loan Evaluation | |||
Financing Receivable Impaired [Line Items] | |||
Troubled Debt Restructuring included in nonaccrual loans: | $ 25 | $ 25 |
Loans Held for Investment and_8
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Accrued Interest Receivables Written Off by Reversing Interest Income by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable Impaired [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | $ 2,087,716 | $ 1,866,781 | $ 2,087,716 | $ 1,866,781 |
Financing Receivable, Accrued Interest, Writeoff | 1,378 | 4,228 | 2,850 | 5,717 |
Commercial Purchase Portfolio Segment | ||||
Financing Receivable Impaired [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 366,737 | 303,373 | 366,737 | 303,373 |
Financing Receivable, Accrued Interest, Writeoff | 53 | 303 | 192 | 425 |
Commercial Refinance Portfolio Segment | ||||
Financing Receivable Impaired [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 690,964 | 711,397 | 690,964 | 711,397 |
Financing Receivable, Accrued Interest, Writeoff | 225 | 1,961 | 693 | 2,633 |
Residential One To Four Unit Purchase Portfolio Segment | ||||
Financing Receivable Impaired [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 276,896 | 245,579 | 276,896 | 245,579 |
Financing Receivable, Accrued Interest, Writeoff | 63 | 321 | 121 | 404 |
Residential One To Four Unit Refinance Portfolio Segment | ||||
Financing Receivable Impaired [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 608,543 | 606,432 | 608,543 | 606,432 |
Financing Receivable, Accrued Interest, Writeoff | 281 | $ 1,643 | 801 | $ 2,255 |
Quick Fix One To Four Unit Purchases Portfolio Segment | ||||
Financing Receivable Impaired [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 40,205 | 40,205 | ||
Financing Receivable, Accrued Interest, Writeoff | 639 | 685 | ||
Quick Fix One To Four Unit Refinances Portfolio Segment | ||||
Financing Receivable Impaired [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 104,371 | 104,371 | ||
Financing Receivable, Accrued Interest, Writeoff | $ 117 | $ 358 |
Loans Held for Investment and_9
Loans Held for Investment and Loans Held for Investment at Fair Value - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Allowance for credit losses: | |||||
Beginning balance | $ 5,881 | $ 3,496 | $ 5,845 | $ 2,377 | |
Provision for loan losses | (1,000) | 1,800 | (895) | 3,088 | |
Charge-offs | (918) | (76) | (987) | (245) | |
Ending balance | 3,963 | 5,220 | 3,963 | 5,220 | |
Allowance for Loans Individually Evaluated | 1,949 | 1,273 | 1,949 | 1,273 | $ 2,668 |
Allowance related to Loans collectively evaluated | 2,014 | 3,947 | 2,014 | 3,947 | |
Amortized cost related to Loans individually evaluated | 318,974 | 270,772 | 318,974 | 270,772 | |
Amortized cost related to Loans collectively evaluated | 1,768,742 | 1,596,009 | 1,768,742 | 1,596,009 | |
Beginning balance, prior to adoption of ASC 326 | 2,240 | ||||
Impact of adopting ASC 326 | 137 | ||||
Commercial Purchase Portfolio Segment | |||||
Allowance for credit losses: | |||||
Beginning balance | 328 | 352 | 373 | 323 | |
Provision for loan losses | 48 | 172 | 3 | 280 | |
Charge-offs | (114) | (114) | (79) | ||
Ending balance | 262 | 524 | 262 | 524 | |
Allowance for Loans Individually Evaluated | 57 | 181 | 57 | 181 | 153 |
Allowance related to Loans collectively evaluated | 205 | 342 | 205 | 342 | |
Amortized cost related to Loans individually evaluated | 19,314 | 20,615 | 19,314 | 20,615 | |
Amortized cost related to Loans collectively evaluated | 347,423 | 282,759 | 347,423 | 282,759 | |
Beginning balance, prior to adoption of ASC 326 | 304 | ||||
Impact of adopting ASC 326 | 19 | ||||
Commercial Refinance Portfolio Segment | |||||
Allowance for credit losses: | |||||
Beginning balance | 1,990 | 1,594 | 2,093 | 1,078 | |
Provision for loan losses | 28 | 1,093 | (76) | 1,609 | |
Charge-offs | (95) | (94) | |||
Ending balance | 1,923 | 2,687 | 1,923 | 2,687 | |
Allowance for Loans Individually Evaluated | 1,005 | 592 | 1,005 | 592 | 519 |
Allowance related to Loans collectively evaluated | 918 | 2,095 | 918 | 2,095 | |
Amortized cost related to Loans individually evaluated | 92,397 | 113,350 | 92,397 | 113,350 | |
Amortized cost related to Loans collectively evaluated | 598,567 | 598,046 | 598,567 | 598,046 | |
Beginning balance, prior to adoption of ASC 326 | 1,016 | ||||
Impact of adopting ASC 326 | 62 | ||||
Residential One To Four Unit Purchase Portfolio Segment | |||||
Allowance for credit losses: | |||||
Beginning balance | 322 | 250 | 333 | 157 | |
Provision for loan losses | (41) | 211 | (15) | 382 | |
Charge-offs | (58) | (37) | (136) | ||
Ending balance | 281 | 403 | 281 | 403 | |
Allowance for Loans Individually Evaluated | 120 | 96 | 120 | 96 | 128 |
Allowance related to Loans collectively evaluated | 161 | 307 | 161 | 307 | |
Amortized cost related to Loans individually evaluated | 21,084 | 22,017 | 21,084 | 22,017 | |
Amortized cost related to Loans collectively evaluated | 255,812 | 223,561 | 255,812 | 223,561 | |
Beginning balance, prior to adoption of ASC 326 | 148 | ||||
Impact of adopting ASC 326 | 9 | ||||
Residential One To Four Unit Refinance Portfolio Segment | |||||
Allowance for credit losses: | |||||
Beginning balance | 1,227 | 1,300 | 1,216 | 819 | |
Provision for loan losses | (229) | 324 | (218) | 817 | |
Charge-offs | (151) | (18) | (151) | (30) | |
Ending balance | 847 | 1,606 | 847 | 1,606 | |
Allowance for Loans Individually Evaluated | 342 | 404 | 342 | 404 | 465 |
Allowance related to Loans collectively evaluated | 507 | 1,203 | 507 | 1,203 | |
Amortized cost related to Loans individually evaluated | 112,294 | 114,790 | 112,294 | 114,790 | |
Amortized cost related to Loans collectively evaluated | 496,249 | $ 491,643 | 496,249 | 491,643 | |
Beginning balance, prior to adoption of ASC 326 | 772 | ||||
Impact of adopting ASC 326 | $ 47 | ||||
Quick Fix One To Four Unit Purchase Portfolio Segment | |||||
Allowance for credit losses: | |||||
Beginning balance | 386 | 595 | |||
Provision for loan losses | (313) | (508) | |||
Charge-offs | (14) | ||||
Ending balance | 73 | 73 | |||
Allowance for Loans Individually Evaluated | 56 | 56 | 525 | ||
Allowance related to Loans collectively evaluated | 16 | 16 | |||
Amortized cost related to Loans individually evaluated | 23,883 | 23,883 | |||
Amortized cost related to Loans collectively evaluated | 16,322 | 16,322 | |||
Quick Fix One To Four Unit Refinance Portfolio Segment | |||||
Allowance for credit losses: | |||||
Beginning balance | 1,628 | 1,235 | |||
Provision for loan losses | (493) | (81) | |||
Charge-offs | (558) | (577) | |||
Ending balance | 577 | 577 | |||
Allowance for Loans Individually Evaluated | 369 | 369 | $ 878 | ||
Allowance related to Loans collectively evaluated | 207 | 207 | |||
Amortized cost related to Loans individually evaluated | 50,002 | 50,002 | |||
Amortized cost related to Loans collectively evaluated | $ 54,369 | $ 54,369 |
Loans Held for Investment an_10
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Aging Status of Amortized Cost Basis in Loans Held for Investment Portfolio (Details) - COVID-19 - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | $ 491,788 | ||||
Loans, current | 1,462,146 | ||||
Total loans | 1,953,934 | ||||
Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | $ 421,818 | ||||
Loans, current | 1,665,898 | ||||
Total loans | 2,087,716 | ||||
Quick Fix One To Four Unit Purchases Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 23,752 | $ 6,585 | |||
Loans, current | 12,987 | ||||
Total loans | 36,739 | 6,585 | |||
Quick Fix One To Four Unit Purchases Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | $ 4,555 | 23,883 | |||
Loans, current | 11,767 | ||||
Total loans | 16,322 | 23,883 | |||
Quick Fix One To Four Unit Refinances Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 13,912 | 59,843 | |||
Loans, current | 59,336 | ||||
Total loans | 73,248 | 59,843 | |||
Quick Fix One To Four Unit Refinances Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 8,522 | 50,002 | |||
Loans, current | 45,847 | ||||
Total loans | 54,369 | 50,002 | |||
Financial Asset, 30 to 59 Days Past Due | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 95,952 | ||||
Financial Asset, 30 to 59 Days Past Due | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 78,022 | ||||
Financial Asset, 30 to 59 Days Past Due | Quick Fix One To Four Unit Purchases Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,972 | ||||
Financial Asset, 30 to 59 Days Past Due | Quick Fix One To Four Unit Purchases Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 2,983 | ||||
Financial Asset, 30 to 59 Days Past Due | Quick Fix One To Four Unit Refinances Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 8,406 | 964 | |||
Financial Asset, 30 to 59 Days Past Due | Quick Fix One To Four Unit Refinances Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 4,231 | 1,322 | |||
60-89 days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 78,820 | ||||
60-89 days | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 45,829 | ||||
60-89 days | Quick Fix One To Four Unit Purchases Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 21,780 | ||||
60-89 days | Quick Fix One To Four Unit Purchases Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,572 | ||||
60-89 days | Quick Fix One To Four Unit Refinances Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 5,383 | 760 | |||
60-89 days | Quick Fix One To Four Unit Refinances Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | $ 4,291 | 1,682 | |||
90+days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 317,016 | |||
90+days | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 297,967 | |||
90+days | Quick Fix One To Four Unit Purchases Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 6,585 | |||
90+days | Quick Fix One To Four Unit Purchases Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 23,883 | |||
90+days | Quick Fix One To Four Unit Refinances Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 123 | 58,119 | ||
90+days | Quick Fix One To Four Unit Refinances Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 46,998 | |||
Loans Individually Evaluated | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 336,236 | ||||
Total loans | 336,236 | ||||
Loans Individually Evaluated | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 318,974 | ||||
Total loans | 318,974 | ||||
Loans Individually Evaluated | Commercial Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 22,166 | ||||
Total loans | 22,166 | ||||
Loans Individually Evaluated | Commercial Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 19,314 | ||||
Total loans | 19,314 | ||||
Loans Individually Evaluated | Commercial Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 101,117 | ||||
Total loans | 101,117 | ||||
Loans Individually Evaluated | Commercial Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 92,397 | ||||
Total loans | 92,397 | ||||
Loans Individually Evaluated | Residential One To Four Unit Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 26,373 | ||||
Total loans | 26,373 | ||||
Loans Individually Evaluated | Residential One To Four Unit Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 21,084 | ||||
Total loans | 21,084 | ||||
Loans Individually Evaluated | Residential One To Four Unit Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 120,152 | ||||
Total loans | 120,152 | ||||
Loans Individually Evaluated | Residential One To Four Unit Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 112,294 | ||||
Total loans | 112,294 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 5,675 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 8,180 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | Commercial Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 961 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | Commercial Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 762 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | Commercial Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 2,118 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | Commercial Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 4,668 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | Residential One To Four Unit Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 192 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | Residential One To Four Unit Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 84 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | Residential One To Four Unit Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,440 | ||||
Loans Individually Evaluated | Financial Asset, 30 to 59 Days Past Due | Residential One To Four Unit Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,344 | ||||
Loans Individually Evaluated | 60-89 days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 15,524 | ||||
Loans Individually Evaluated | 60-89 days | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 12,983 | ||||
Loans Individually Evaluated | 60-89 days | Commercial Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,307 | ||||
Loans Individually Evaluated | 60-89 days | Commercial Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,571 | ||||
Loans Individually Evaluated | 60-89 days | Commercial Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 7,532 | ||||
Loans Individually Evaluated | 60-89 days | Commercial Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 7,065 | ||||
Loans Individually Evaluated | 60-89 days | Residential One To Four Unit Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 2,915 | ||||
Loans Individually Evaluated | 60-89 days | Residential One To Four Unit Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,099 | ||||
Loans Individually Evaluated | 60-89 days | Residential One To Four Unit Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 3,010 | ||||
Loans Individually Evaluated | 60-89 days | Residential One To Four Unit Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,566 | ||||
Loans Individually Evaluated | 90+days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | $ 315,037 | |||
Loans Individually Evaluated | 90+days | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 297,811 | |||
Loans Individually Evaluated | 90+days | Commercial Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 19,898 | |||
Loans Individually Evaluated | 90+days | Commercial Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 16,981 | |||
Loans Individually Evaluated | 90+days | Commercial Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 91,467 | |||
Loans Individually Evaluated | 90+days | Commercial Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 80,664 | |||
Loans Individually Evaluated | 90+days | Residential One To Four Unit Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 23,266 | |||
Loans Individually Evaluated | 90+days | Residential One To Four Unit Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 19,901 | |||
Loans Individually Evaluated | 90+days | Residential One To Four Unit Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 115,702 | |||
Loans Individually Evaluated | 90+days | Residential One To Four Unit Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 109,384 | |||
Loans Collectively Evaluated | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 155,552 | ||||
Loans, current | 1,462,146 | ||||
Total loans | 1,617,698 | ||||
Loans Collectively Evaluated | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 102,844 | ||||
Loans, current | 1,665,898 | ||||
Total loans | 1,768,742 | ||||
Loans Collectively Evaluated | Commercial Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 15,081 | ||||
Loans, current | 263,657 | ||||
Total loans | 278,738 | ||||
Loans Collectively Evaluated | Commercial Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 14,099 | ||||
Loans, current | 333,324 | ||||
Total loans | 347,423 | ||||
Loans Collectively Evaluated | Commercial Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 48,696 | ||||
Loans, current | 535,285 | ||||
Total loans | 583,981 | ||||
Loans Collectively Evaluated | Commercial Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 31,630 | ||||
Loans, current | 566,937 | ||||
Total loans | 598,567 | ||||
Loans Collectively Evaluated | Residential One To Four Unit Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 6,291 | ||||
Loans, current | 191,928 | ||||
Total loans | 198,219 | ||||
Loans Collectively Evaluated | Residential One To Four Unit Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 6,004 | ||||
Loans, current | 249,808 | ||||
Total loans | 255,812 | ||||
Loans Collectively Evaluated | Residential One To Four Unit Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 47,820 | ||||
Loans, current | 398,953 | ||||
Total loans | 446,773 | ||||
Loans Collectively Evaluated | Residential One To Four Unit Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 38,034 | ||||
Loans, current | 458,215 | ||||
Total loans | 496,249 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 90,277 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 69,842 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | Commercial Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 8,000 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | Commercial Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 9,168 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | Commercial Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 33,725 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | Commercial Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 19,366 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | Residential One To Four Unit Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 5,030 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | Residential One To Four Unit Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 4,697 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | Residential One To Four Unit Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 33,144 | ||||
Loans Collectively Evaluated | Financial Asset, 30 to 59 Days Past Due | Residential One To Four Unit Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 29,397 | ||||
Loans Collectively Evaluated | 60-89 days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 63,296 | ||||
Loans Collectively Evaluated | 60-89 days | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 32,846 | ||||
Loans Collectively Evaluated | 60-89 days | Commercial Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 7,081 | ||||
Loans Collectively Evaluated | 60-89 days | Commercial Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 4,931 | ||||
Loans Collectively Evaluated | 60-89 days | Commercial Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 13,224 | ||||
Loans Collectively Evaluated | 60-89 days | Commercial Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 12,264 | ||||
Loans Collectively Evaluated | 60-89 days | Residential One To Four Unit Purchase Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,261 | ||||
Loans Collectively Evaluated | 60-89 days | Residential One To Four Unit Purchase Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 1,307 | ||||
Loans Collectively Evaluated | 60-89 days | Residential One To Four Unit Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 14,567 | ||||
Loans Collectively Evaluated | 60-89 days | Residential One To Four Unit Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | 8,481 | ||||
Loans Collectively Evaluated | 90+days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 1,979 | |||
Loans Collectively Evaluated | 90+days | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 156 | |||
Loans Collectively Evaluated | 90+days | Commercial Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | 1,747 | |||
Loans Collectively Evaluated | 90+days | Residential One To Four Unit Refinance Portfolio Segment | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | $ 109 | |||
Loans Collectively Evaluated | 90+days | Residential One To Four Unit Refinance Portfolio Segment | Aging Status And Accrual Status12 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loans, past due | [1] | $ 156 | |||
[1] | Includes loans in bankruptcy and foreclosure less than 90 days past due |
Loans Held for Investment an_11
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Amortized Cost in Loans Held for Investment based on Accrual Status and by Loan Origination Year (Details) - Accrual Status - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | $ 441,425 | $ 304,381 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 248,314 | 684,385 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 589,640 | 456,169 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 393,472 | 258,503 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 206,437 | 95,295 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 208,428 | 155,201 |
Total loans | 2,087,716 | 1,953,934 |
Commercial Purchase Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 95,441 | 57,492 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 56,128 | 104,200 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 95,759 | 70,505 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 65,982 | 42,044 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 31,203 | 11,039 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 22,224 | 15,624 |
Total loans | 366,737 | 300,904 |
Commercial Purchase Portfolio Segment | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 95,441 | 56,446 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 55,726 | 99,534 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 91,153 | 64,706 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 59,586 | 34,862 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 25,578 | 9,500 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 19,939 | 13,690 |
Total loans | 347,423 | 278,738 |
Commercial Purchase Portfolio Segment | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,046 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 402 | 4,666 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 4,606 | 5,799 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 6,396 | 7,182 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 5,625 | 1,539 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 2,285 | 1,934 |
Total loans | 19,314 | 22,166 |
Commercial Refinance Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 87,103 | 80,305 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 71,992 | 203,630 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 186,322 | 190,454 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 166,202 | 106,456 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 89,528 | 45,250 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 89,817 | 59,003 |
Total loans | 690,964 | 685,098 |
Commercial Refinance Portfolio Segment | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 87,103 | 75,376 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 67,946 | 176,854 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 157,006 | 157,499 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 137,078 | 87,476 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 70,672 | 34,858 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 78,762 | 51,918 |
Total loans | 598,567 | 583,981 |
Commercial Refinance Portfolio Segment | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 4,929 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 4,046 | 26,776 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 29,316 | 32,955 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 29,124 | 18,980 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 18,856 | 10,392 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 11,055 | 7,085 |
Total loans | 92,397 | 101,117 |
Residential One To Four Unit Purchase Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 101,619 | 27,826 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 16,880 | 75,748 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 65,873 | 51,486 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 38,814 | 30,933 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 22,256 | 8,404 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 31,454 | 30,195 |
Total loans | 276,896 | 224,592 |
Residential One To Four Unit Purchase Portfolio Segment | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 101,387 | 26,215 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 13,212 | 69,775 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 60,395 | 42,537 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 34,837 | 25,874 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 17,858 | 7,056 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 28,123 | 26,762 |
Total loans | 255,812 | 198,219 |
Residential One To Four Unit Purchase Portfolio Segment | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 232 | 1,611 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 3,668 | 5,973 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 5,478 | 8,949 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 3,977 | 5,059 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 4,398 | 1,348 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 3,331 | 3,433 |
Total loans | 21,084 | 26,373 |
Residential One To Four Unit Refinance Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 142,528 | 61,879 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 43,303 | 211,071 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 178,125 | 134,019 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 116,204 | 78,975 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 63,450 | 30,602 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 64,933 | 50,379 |
Total loans | 608,543 | 566,925 |
Residential One To Four Unit Refinance Portfolio Segment | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 141,385 | 57,945 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 35,589 | 168,912 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 138,095 | 96,568 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 83,511 | 61,033 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 46,183 | 22,949 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 51,486 | 39,366 |
Total loans | 496,249 | 446,773 |
Residential One To Four Unit Refinance Portfolio Segment | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,143 | 3,934 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 7,714 | 42,159 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 40,030 | 37,451 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 32,693 | 17,942 |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 17,267 | 7,653 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2016 | 13,447 | 11,013 |
Total loans | 112,294 | 120,152 |
Quick Fix One To Four Unit Purchases Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 5,222 | 24,327 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 20,620 | 18,207 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 13,761 | 790 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 602 | |
Total loans | 40,205 | 43,324 |
Quick Fix One To Four Unit Purchases Portfolio Segment | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 5,222 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 6,578 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 4,336 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 186 | |
Total loans | 16,322 | |
Quick Fix One To Four Unit Purchases Portfolio Segment | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 3,764 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 14,042 | 2,217 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 9,425 | 604 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 416 | |
Total loans | 23,883 | 6,585 |
Quick Fix One To Four Unit Purchases Portfolio Segment | Accrual Status | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 20,563 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 15,990 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 186 | |
Total loans | 36,739 | |
Quick Fix One To Four Unit Refinances Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,512 | 52,552 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 39,391 | 71,529 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 49,800 | 8,915 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 5,668 | 95 |
Total loans | 104,371 | 133,091 |
Quick Fix One To Four Unit Refinances Portfolio Segment | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,512 | 35,234 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 21,736 | 37,818 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 23,121 | 196 |
Total loans | 54,369 | 73,248 |
Quick Fix One To Four Unit Refinances Portfolio Segment | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 17,318 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 17,655 | 33,711 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 26,679 | 8,719 |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 5,668 | 95 |
Total loans | $ 50,002 | $ 59,843 |
Securitizations, Net - Addition
Securitizations, Net - Additional Information (Detail) $ in Billions | 6 Months Ended |
Jun. 30, 2021USD ($)Securities | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |
Number of securitizations | Securities | 16 |
Securitization loans | $ 3.7 |
Issuing of securities to third parties | $ 3.3 |
Minimum | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |
Securities redemption when principal balance is less than a certain percentage | 5.00% |
Maturity dates of the securities | 2044-09 |
Maximum | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |
Securities redemption when principal balance is less than a certain percentage | 30.00% |
Maturity dates of the securities | 2051-05 |
Securitizations Net - Summary o
Securitizations Net - Summary of Outstanding Balance Net of Discounts and Deals Costs of Securities and Effective Interest Rate (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Securitizations, net | $ 1,558,163 | $ 1,599,719 | $ 1,579,019 |
Average outstanding balance | $ 1,545,969 | $ 1,565,754 | |
Effective interest rate | 4.83% | 4.74% | |
Securitizations | |||
Debt Instrument [Line Items] | |||
Interest expense - portfolio related | $ 37,333 | $ 37,104 |
Securitizations Net - Summary_2
Securitizations Net - Summary of Outstanding Balance Net of Discounts and Deals Costs of Securities and Effective Interest Rate (Parenthetical) (Details) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Transfers And Servicing [Abstract] | ||
Average interest rate | 4.12% | 4.19% |
Debt issue cost amortization rate | 0.71% | 0.55% |
Other Debt - Additional Informa
Other Debt - Additional Information (Details) - USD ($) | Feb. 05, 2021 | Dec. 26, 2019 | Sep. 12, 2018 | Apr. 16, 2021 | Jan. 29, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||||
Lines of credit fund maximum percentage of principle balance of mortgage loans | 100.00% | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 3 years | ||||||
Debt instrument, description | one-month LIBOR | ||||||
Agreement entered date | Sep. 12, 2018 | ||||||
Debt instrument, maturity date | Nov. 10, 2023 | ||||||
Line of credit, maximum capacity | $ 50,000,000 | ||||||
Line of credit, outstanding amount | $ 23,700,000 | $ 0 | |||||
LIBOR | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, floor rate | 0.75% | ||||||
Debt instrument, spread rate | 3.50% | ||||||
Corporate Debt Agreement | 2021 Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Debt instrument, face amount | $ 175,000,000 | ||||||
Debt instrument, description | one-month LIBOR | ||||||
Debt instrument, maturity month year | 2026-02 | ||||||
Term loans, balance | $ 173,000,000 | ||||||
Debt issuance costs, net | $ 9,000,000 | 3,000,000 | |||||
Corporate Debt Agreement | 2021 Term Loan | First year | |||||||
Debt Instrument [Line Items] | |||||||
Term loan amortization, annual rate | 2.50% | ||||||
Corporate Debt Agreement | 2021 Term Loan | Per Year Thereafter | |||||||
Debt Instrument [Line Items] | |||||||
Term loan amortization, annual rate | 5.00% | ||||||
Corporate Debt Agreement | 2021 Term Loan | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, floor rate | 1.00% | ||||||
Debt instrument, spread rate | 8.00% | ||||||
Corporate Debt Agreement | 2019-1 Trust | |||||||
Debt Instrument [Line Items] | |||||||
Term loans, balance | 78,000,000 | ||||||
2013 Repurchase Agreement | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, description | one-month LIBOR | ||||||
Debt instrument, spread rate | 3.25% | ||||||
Agreement entered date | May 17, 2013 | ||||||
Debt instrument, maturity date | Sep. 29, 2021 | ||||||
Line of credit, maximum capacity | $ 100,000,000 | 100,000,000 | |||||
2019-1 Trust | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 3,000,000 | ||||||
Debt instrument, maturity date | Oct. 1, 2021 | ||||||
Line of credit, maximum capacity | 3,000,000 | $ 3,000,000 | |||||
Debt instrument, fixed interest rate | 9.50% | ||||||
2021 Repurchase Agreement | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, description | one-month LIBOR | one-month LIBOR | |||||
Agreement entered date | Apr. 16, 2021 | Jan. 29, 2021 | |||||
Debt instrument, maturity date | Apr. 16, 2024 | Jan. 29, 2022 | |||||
Line of credit, maximum capacity | $ 100,000,000 | $ 200,000,000 | $ 200,000,000 | ||||
2021 Repurchase Agreement | Secured Debt | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, spread rate | 3.00% | 3.50% | |||||
2021 Repurchase Agreement | Secured Debt | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, spread rate | 4.50% |
Other Debt - Summary of Maximum
Other Debt - Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding (Details) - USD ($) | Jun. 30, 2021 | Apr. 16, 2021 | Jan. 29, 2021 | Dec. 31, 2020 | Sep. 12, 2018 |
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 50,000,000 | ||||
2021 Term Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | $ 1,435,000 | ||||
Maximum borrowing capacity | 100,000,000 | ||||
2021 Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 84,004,000 | ||||
Maximum borrowing capacity | 200,000,000 | $ 100,000,000 | $ 200,000,000 | ||
2013 Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 41,098,000 | $ 73,502,000 | |||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | |||
Bank Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 23,663,000 | ||||
Maximum borrowing capacity | 50,000,000 | ||||
2019-1 Trust | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 2,700,000 | 2,700,000 | |||
Maximum borrowing capacity | $ 3,000,000 | $ 3,000,000 |
Other Debt - Summary of Maxim_2
Other Debt - Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Warehouse Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 1 | $ 0.3 |
Other Debt - Schedule of Activi
Other Debt - Schedule of Activity and Effective Interest Rate (Details) - Warehouse and Repurchase Facilities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Average outstanding balance | $ 166,981 | $ 242,676 | $ 140,254 | $ 295,013 |
Highest outstanding balance at any month-end | $ 250,927 | $ 268,149 | $ 250,927 | $ 439,547 |
Effective interest rate | 5.65% | 4.34% | 5.80% | 4.70% |
Other Debt - Schedule of Acti_2
Other Debt - Schedule of Activity and Effective Interest Rate (Parenthetical) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Debt Instrument, average rate | 4.44% | 3.81% | 4.58% | 4.29% |
Debt issue cost amortization percentage | 1.21% | 0.52% | 1.22% | 0.41% |
Other Debt - Summary of Interes
Other Debt - Summary of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Interest expense — portfolio related | $ 20,566 | $ 21,189 | $ 41,399 | $ 44,036 |
Interest expense — corporate debt | 4,309 | 1,894 | 11,658 | 8,237 |
Total interest expense | 24,875 | 23,083 | 53,057 | 52,273 |
Warehouse and Repurchase Facilities | ||||
Debt Instrument [Line Items] | ||||
Interest expense — portfolio related | 2,361 | 2,632 | 4,067 | 6,932 |
Securitizations | ||||
Debt Instrument [Line Items] | ||||
Interest expense — portfolio related | $ 18,205 | $ 18,557 | $ 37,332 | $ 37,104 |
Other Debt - Summary of Inter_2
Other Debt - Summary of Interest Expense (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Jan. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||||||
Interest expense — corporate debt | $ 4,309 | $ 1,894 | $ 11,658 | $ 8,237 | ||
Repayment of outstanding principal amount | 79,969 | 75,000 | ||||
Corporate Debt Agreement | Owl Rock Capital Corporation | 2019 Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense — corporate debt | 11,700 | 8,200 | ||||
Write off of debt issuance cost | 2,900 | 3,500 | ||||
Prepayment penalties | $ 1,600 | $ 300 | ||||
Repayment of outstanding principal amount | $ 78,000 | $ 75,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments And Contingencies Disclosure [Abstract] | ||
Repurchase liability | $ 140 | $ 139 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 31, 2020 | May 01, 2021 | Jan. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares authorized to grant | 1,520,000 | 1,520,000 | ||||
Number of shares of stock options forfeited | 10,000 | |||||
Stock options granted | 782,500 | 12,500 | ||||
Exercise price of unvested stock options | $ 6.28 | $ 6.28 | ||||
Restricted stock awarded and earned stock compensation, shares | 480,000 | |||||
Awards granted requisite service period | 3 years | |||||
Description of compensation expense related to stock options | Compensation expense related to stock-based awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight-line method. | |||||
Compensation expense related to the outstanding stock options granted | $ 0.5 | $ 0.2 | ||||
Amount of unrecognized compensation expense related to unvested stock options | $ 4.7 | $ 2.6 | $ 4.7 | |||
Non-Employee Directors [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock awarded and earned stock compensation, shares | 26,511 | |||||
Initial Public Offering | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise price of unvested stock options | $ 13 | $ 13 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Common Share Calculations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic EPS: | ||||||
Net income | $ 9,453 | $ 3,396 | $ 2,141 | $ 2,579 | $ 12,849 | $ 4,720 |
Less: deemed dividends on preferred stock | 48,955 | 48,955 | ||||
Net income attributable to common stockholders | 9,453 | (46,814) | 12,849 | (44,235) | ||
Less undistributed earnings attributable to participating securities | 3,571 | 4,854 | ||||
Net earnings attributable to common stockholders | $ 5,882 | $ (46,814) | $ 7,995 | $ (44,235) | ||
Weighted average common shares outstanding | 20,087,000 | 20,087,000 | 20,087,000 | 20,087,000 | ||
Basic | $ 0.29 | $ (2.33) | $ 0.40 | $ (2.20) | ||
Diluted EPS: | ||||||
Net income attributable to common stockholders | $ 9,453 | $ (46,814) | $ 12,849 | $ (44,235) | ||
Weighted average common shares outstanding | 20,087,000 | 20,087,000 | 20,087,000 | 20,087,000 | ||
Add dilutive effects for warrants | 1,985,000 | 1,786,000 | ||||
Add dilutive effects for stock options | 3,000 | 2,000 | ||||
Add dilutive effects of unvested restricted stock awards | 197,000 | 121,000 | ||||
Weighted average diluted common shares outstanding | 33,960,000 | 20,087,000 | 33,684,000 | 20,087,000 | ||
Diluted | $ 0.28 | $ (2.33) | $ 0.38 | $ (2.20) | ||
Series A Preferred Stock | ||||||
Diluted EPS: | ||||||
Add dilutive effects for assumed conversion of Series A preferred stock | 11,688,000 | 11,688,000 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 773 | 15,474 | 773 | 15,474 |
Series A Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 11,688 | 11,688 | ||
Warrants | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 3,013 | 3,013 | ||
Stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 773 | 773 | 773 | 773 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) $ / shares in Units, $ in Millions | Oct. 08, 2021$ / shares | Apr. 07, 2020USD ($)$ / sharesshares | Jun. 30, 2021USD ($)Director$ / sharesshares | Nov. 29, 2024$ / shares | Nov. 28, 2024$ / shares | Oct. 07, 2022$ / shares | Jun. 30, 2020USD ($) |
Convertible Redeemable Preferred Stock [Line Items] | |||||||
Proceeds from issuance of preferred stock and warrants | $ | $ 43.2 | ||||||
Number of directors right to elect by preferred stock holders | Director | 2 | ||||||
Initial conversion price per share | $ 3.85 | ||||||
Common stock applicable conversion rate price | $ 1,000 | ||||||
Percentage of common stock held by warrant holder and affiliates | 49.00% | ||||||
Maximum | |||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||
Preferred stock redemption value | $ | $ 90 | $ 90 | |||||
Preferred stock, redemption price per share | $ 2,000 | ||||||
Preferred stock redemption share | shares | 45,000 | ||||||
Deemed dividends- preferred stock redemption value | $ | $ 49 | ||||||
Exercise Price of $2.96 per Share of Common Stock | |||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||
Exercise price per share | $ 2.96 | ||||||
Warrants to purchase an aggregate shares | shares | 2,008,750 | ||||||
Warrants to purchase an aggregate shares | shares | 2,008,750 | ||||||
Exercise Price of $4.94 per Share of Common Stock | |||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||
Exercise price per share | $ 4.94 | ||||||
Warrants to purchase an aggregate shares | shares | 1,004,375 | ||||||
Warrants to purchase an aggregate shares | shares | 1,004,375 | ||||||
Subsequent Event [Member] | |||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||
Initial conversion price per share | $ 3.85 | ||||||
Common stock applicable conversion rate price | 200 | ||||||
Number of trading days description | at least 20 trading days, whether consecutive or not, in the period of 30 consecutive trading days, provided that the 20 trading days includes the final 5 trading days of the 30-trading day period. | ||||||
Scenario, Forecast | |||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||
Preferred stock liquidation preference per share | $ 3,000 | $ 3,000 | $ 2,000 | ||||
Warrants | |||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||
Exercise price per share | $ 1,000 | ||||||
Warrants to purchase an aggregate shares | shares | 3,013,125 | ||||||
Warrants to purchase an aggregate shares | shares | 3,013,125 | ||||||
Private Placement | Series A Convertible Preferred Stock | |||||||
Convertible Redeemable Preferred Stock [Line Items] | |||||||
Issuance of common stock, shares | shares | 45,000 | ||||||
Stock price | $ 0.01 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Information on Assets Measured and Recorded at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | $ 1,370 | $ 1,539 |
Interest-only strips | 81 | 238 |
Total recurring fair value measurements | 38,093 | 49,990 |
Loans held for sale, net | 7,916 | 13,106 |
Real estate owned, net | 20,046 | 15,767 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 38,093 | 49,990 |
Recurring Fair Value Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 1,370 | 1,539 |
Interest-only strips | 81 | 238 |
Total recurring fair value measurements | 1,451 | 1,777 |
Recurring Fair Value Measurements | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 1,370 | 1,539 |
Interest-only strips | 81 | 238 |
Total recurring fair value measurements | 1,451 | 1,777 |
Nonrecurring Fair Value Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 36,642 | 48,213 |
Loans held for sale, net | 1,280 | 13,106 |
Real estate owned, net | 15,743 | 15,767 |
Individually evaluated/Impaired loans requiring specific allowance, net | 19,619 | 19,340 |
Nonrecurring Fair Value Measurements | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 36,642 | 48,213 |
Loans held for sale, net | 1,280 | 13,106 |
Real estate owned, net | 15,743 | 15,767 |
Individually evaluated/Impaired loans requiring specific allowance, net | $ 19,619 | $ 19,340 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Gains and Losses Recognized on Assets Measured on Nonrecurring Basis (Details) - Nonrecurring Fair Value Measurements - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net loss | $ 214 | $ (2,000) | $ (513) | $ (2,537) |
Loans Held for Sale, Net | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net loss | (15) | (921) | 2 | (961) |
Real Estate Held For Sale, Net | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net loss | (800) | (648) | (1,235) | (1,216) |
Individually Evaluated Loans Requiring Specific Allowance, Net | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net loss | $ 1,029 | $ (431) | $ 720 | $ (360) |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques and Unobservable Inputs Related to Level 3 Assets (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 38,093 | $ 49,990 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 38,093 | $ 49,990 |
Level 3 | Valuation, Market Approach | Selling costs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans requiring specific allowance, net | 0.080 | 0.080 |
Real estate owned, net | 0.080 | 0.080 |
Level 3 | Valuation, Market Approach | Weighted Average | Selling costs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans requiring specific allowance, net | 0.080 | 0.080 |
Real estate owned, net | 0.080 | 0.080 |
Level 3 | Discounted Cash Flow | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.062 | 0.062 |
Loans held for sale | 0.062 | 0.062 |
Interest-only strips | 0.150 | 0.150 |
Level 3 | Discounted Cash Flow | Timing of Resolution/Payoff | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans Held For Sale Term | 3 months | |
Level 3 | Discounted Cash Flow | Loss Severity Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.010 | |
Level 3 | Discounted Cash Flow | Minimum | Collateral Value (% of UPB) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.950 | 0.94 |
Level 3 | Discounted Cash Flow | Minimum | Timing of Resolution/Payoff | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment,at fair value | 1 month | 14 months |
Loans Held For Sale Term | 31 months | |
Interest-only strips | 0 months | 0 months |
Level 3 | Discounted Cash Flow | Minimum | Prepayment Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.218 | 0.175 |
Level 3 | Discounted Cash Flow | Minimum | Default Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.003 | 0.050 |
Level 3 | Discounted Cash Flow | Minimum | Loss Severity Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0 | |
Level 3 | Discounted Cash Flow | Maximum | Collateral Value (% of UPB) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 1.180 | 1.04 |
Level 3 | Discounted Cash Flow | Maximum | Timing of Resolution/Payoff | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment,at fair value | 36 months | 31 months |
Loans Held For Sale Term | 34 months | |
Interest-only strips | 12 months | 12 months |
Level 3 | Discounted Cash Flow | Maximum | Prepayment Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.500 | 0.300 |
Level 3 | Discounted Cash Flow | Maximum | Default Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.026 | 0.150 |
Level 3 | Discounted Cash Flow | Maximum | Loss Severity Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.083 | |
Level 3 | Discounted Cash Flow | Weighted Average | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.062 | 0.062 |
Loans held for sale | 0.062 | 0.062 |
Interest-only strips | 0.150 | 0.150 |
Level 3 | Discounted Cash Flow | Weighted Average | Collateral Value (% of UPB) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 1.060 | 1 |
Level 3 | Discounted Cash Flow | Weighted Average | Timing of Resolution/Payoff | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment,at fair value | 33 months | 25 months |
Loans Held For Sale Term | 3 months | 32 months |
Interest-only strips | 7 months | 1 month 15 days |
Level 3 | Discounted Cash Flow | Weighted Average | Default Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.010 | 0.120 |
Level 3 | Discounted Cash Flow | Weighted Average | Loss Severity Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.050 | 0.010 |
Level 3 | Individually Evaluated Loans Requiring Specific Allowance, Net | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 19,619 | $ 19,340 |
Level 3 | Real Estate Owned, Net | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 15,743 | 15,767 |
Level 3 | Loans Held For Investment At Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 1,370 | 1,539 |
Level 3 | Loans Held For Sale | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 1,280 | 13,106 |
Level 3 | Interest-only Strips | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 81 | $ 238 |
Fair Value Measurements - Rollf
Fair Value Measurements - Rollforward of Loans and Interest Only Strips Measured at Estimated Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loans | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Beginning balance | $ 1,364 | $ 2,987 | $ 1,539 | $ 2,960 |
Loans liquidated | (163) | |||
Principal paydowns | (14) | (18) | (24) | (36) |
Total unrealized gain (loss) included in net income | 20 | (13) | 18 | 32 |
Ending balance | 1,370 | 2,956 | 1,370 | 2,956 |
Interest-only Strips | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Beginning balance | 125 | 1,534 | 238 | 894 |
Interest-only strip additions | 1,820 | |||
Interest-only strip write-offs | (44) | (689) | (157) | (1,869) |
Ending balance | $ 81 | $ 845 | $ 81 | $ 845 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value Disclosures [Abstract] | |||
Loans individually evaluated for allowance | $ 19,600 | $ 19,300 | |
Allowance for loan losses | $ 1,949 | $ 2,668 | $ 1,273 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Assets: | |||
Cash | $ 27,741 | $ 13,273 | |
Restricted cash | 7,921 | 7,020 | $ 6,735 |
Loans held for investment, net | 2,083,753 | 1,948,089 | |
Loans held for investment, at fair value | 1,370 | 1,539 | |
Accrued interest receivables | 11,094 | 11,373 | |
Interest-only strips | 81 | 238 | |
Loans held for sale, net | 7,916 | 13,106 | |
Loans held for sale, net | 7,916 | 13,106 | |
Liabilities: | |||
Secured financing, net | 164,053 | 74,982 | |
Warehouse repurchase facilities, net | 151,872 | 75,923 | |
Securitizations, net | 1,558,163 | 1,579,019 | $ 1,599,719 |
Accrued interest payable | 5,506 | 5,503 | |
Estimated Fair Value | |||
Assets: | |||
Cash | 27,741 | 13,273 | |
Restricted cash | 7,921 | 7,020 | |
Loans held for investment, net | 2,186,434 | 2,003,301 | |
Loans held for investment, at fair value | 1,370 | 1,539 | |
Accrued interest receivables | 11,094 | 11,373 | |
Interest-only strips | 81 | 238 | |
Loans held for sale, net | 7,916 | 13,106 | |
Loans held for sale, net | 7,916 | 13,106 | |
Liabilities: | |||
Secured financing, net | 173,031 | 78,000 | |
Warehouse repurchase facilities, net | 151,872 | 75,923 | |
Securitizations, net | 1,642,834 | 1,616,222 | |
Accrued interest payable | 5,506 | 5,503 | |
Level 1 | Estimated Fair Value | |||
Assets: | |||
Cash | 27,741 | 13,273 | |
Restricted cash | 7,921 | 7,020 | |
Accrued interest receivables | 11,094 | 11,373 | |
Liabilities: | |||
Accrued interest payable | 5,506 | 5,503 | |
Level 2 | Estimated Fair Value | |||
Liabilities: | |||
Warehouse repurchase facilities, net | 151,872 | 75,923 | |
Level 3 | Estimated Fair Value | |||
Assets: | |||
Loans held for investment, net | 2,186,434 | 2,003,301 | |
Loans held for investment, at fair value | 1,370 | 1,539 | |
Interest-only strips | 81 | 238 | |
Loans held for sale, net | 7,916 | 13,106 | |
Loans held for sale, net | 7,916 | 13,106 | |
Liabilities: | |||
Secured financing, net | 173,031 | 78,000 | |
Securitizations, net | $ 1,642,834 | $ 1,616,222 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] $ in Millions | Jul. 29, 2021USD ($) |
Subsequent Event [Line Items] | |
Interest rate description | Each loan advance bears interest at one-month LIBOR with a 0.5% floor plus 4.5% per annum. |
Line of credit, maximum capacity | $ 100 |
Line of credit , maturity date | Jul. 29, 2024 |
Line of Credit Facility, Description | The July 2021 Term Repurchase Agreement has a maturity date of July 29, 2024, with an option to extend the term to July 29, 2025 |