Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 04, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39645 | |
Entity Registrant Name | GUILD HOLDINGS COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-2453154 | |
Entity Address, Address Line One | 5887 Copley Drive | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92111 | |
City Area Code | 858 | |
Local Phone Number | 560-6330 | |
Title of 12(b) Security | Class A common stock, $0.01 par value per share | |
Trading Symbol | GHLD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001821160 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 19,666,981 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 40,333,019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 315,450 | $ 334,623 |
Restricted cash | 4,511 | 5,010 |
Mortgage loans held for sale | 2,345,927 | 2,368,777 |
Ginnie Mae loans subject to repurchase right | 1,240,882 | 1,275,842 |
Accounts and interest receivable | 38,227 | 43,390 |
Derivative asset | 135,069 | 130,338 |
Mortgage servicing rights, net | 586,717 | 446,998 |
Goodwill | 62,834 | 62,834 |
Other assets | 148,300 | 150,275 |
Total assets | 4,877,917 | 4,818,087 |
Liabilities and stockholders’ equity | ||
Warehouse lines of credit | 2,071,333 | 2,143,443 |
Notes payable | 165,000 | 145,750 |
Ginnie Mae loans subject to repurchase right | 1,241,726 | 1,277,026 |
Accounts payable and accrued expenses | 43,733 | 41,074 |
Accrued compensation and benefits | 75,793 | 106,313 |
Investor reserves | 14,877 | 14,535 |
Income taxes payable | 29,320 | 19,454 |
Contingent liabilities due to acquisitions | 16,568 | 18,094 |
Derivative liability | 0 | 38,270 |
Operating lease liabilities | 90,530 | 94,891 |
Note due to related party | 4,138 | 4,639 |
Deferred compensation plan | 94,039 | 89,236 |
Deferred tax liability | 132,632 | 89,370 |
Total liabilities | 3,979,689 | 4,082,095 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 19,667 | 18,035 |
Retained earnings | 877,961 | 717,357 |
Total stockholders’ equity | 898,228 | 735,992 |
Total liabilities and stockholders’ equity | 4,877,917 | 4,818,087 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock | 197 | 197 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock | $ 403 | $ 403 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares, issued (in shares) | 0 | 0 |
Preferred stock, shares, outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares, issued (in shares) | 19,666,981 | 19,666,981 |
Common stock, shares, outstanding (in shares) | 19,666,981 | 19,666,981 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares, issued (in shares) | 40,333,019 | 40,333,019 |
Common stock, shares, outstanding (in shares) | 40,333,019 | 40,333,019 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | ||
Loan origination fees and gain on sale of loans, net | $ 446,589 | $ 239,861 |
Loan servicing and other fees | 45,199 | 38,532 |
Valuation adjustment of mortgage servicing rights | 35,743 | (108,649) |
Interest income | 15,098 | 13,001 |
Interest expense | (16,511) | (12,934) |
Other income, net | 69 | 389 |
Net revenue | 526,187 | 170,200 |
Expenses | ||
Salaries, incentive compensation and benefits | 266,724 | 148,013 |
General and administrative | 26,906 | 22,225 |
Occupancy, equipment and communication | 14,832 | 13,318 |
Depreciation and amortization | 1,654 | 1,887 |
Provision for foreclosure losses | 2,462 | 1,924 |
Total expenses | 312,578 | 187,367 |
Income (loss) before income tax expense (benefit) | 213,609 | (17,167) |
Income tax expense (benefit) | 53,005 | (4,181) |
Net income (loss) | $ 160,604 | $ (12,986) |
Net income per share attributable to Class A and Class B Common Stock: | ||
Basic (in dollars per share) | $ 2.68 | |
Diluted (in dollars per share) | $ 2.67 | |
Weighted average shares outstanding of Class A and Class B Common Stock: | ||
Basic (in shares) | 60,000 | |
Diluted (in shares) | 60,211 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-In Capital | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2019 | 928 | |||||||
Beginning balance at Dec. 31, 2019 | $ 406,031 | $ 93 | $ 21,992 | $ 383,946 | ||||
Common stock dividends ($10,772 per share) | (10,000) | (10,000) | ||||||
Net income (loss) | (12,986) | (12,986) | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 928 | |||||||
Ending balance at Mar. 31, 2020 | 383,045 | $ 93 | 21,992 | 360,960 | ||||
Beginning balance (in shares) at Dec. 31, 2020 | 19,666,981 | 40,333,019 | 19,666,981 | 40,333,019 | ||||
Beginning balance at Dec. 31, 2020 | 735,992 | $ 197 | $ 403 | 18,035 | 717,357 | |||
Stock-based compensation | 1,632 | 1,632 | ||||||
Net income (loss) | 160,604 | 160,604 | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 19,666,981 | 40,333,019 | 19,666,981 | 40,333,019 | ||||
Ending balance at Mar. 31, 2021 | $ 898,228 | $ 197 | $ 403 | $ 19,667 | $ 877,961 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock dividends (in dollars per share) | $ 10,772 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 160,604 | $ (12,986) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of fixed assets | 1,654 | 1,887 |
Valuation adjustment of mortgage servicing rights | (35,743) | 108,649 |
Valuation adjustment of mortgage loans held for sale | 61,634 | (31,025) |
Unrealized gain on derivatives | (43,001) | (30,290) |
Amortization of right-of-use assets | 3,779 | 5,321 |
Provision for investor reserves | 2,348 | 2,151 |
Provision for foreclosure losses | 2,462 | 1,924 |
Valuation adjustment of contingent liabilities due to acquisitions | 6,620 | 9,007 |
Gain on sale of mortgage loans excluding fair value of other financial instruments, net | (355,157) | (170,948) |
Deferred income taxes | 43,262 | (26,187) |
Other | 519 | (105) |
Benefit from investor reserves | (2,006) | (768) |
Foreclosure loss reserve | (1,514) | (800) |
Stock-based compensation | 1,632 | 0 |
Changes in operating assets and liabilities: | ||
Origination of mortgage loans held for sale | (9,815,270) | (5,620,167) |
Proceeds on sale of and payments from mortgage loans held for sale | 10,131,643 | 5,561,492 |
Accounts and interest receivable | 4,216 | 7,884 |
Other assets | (2,936) | (5,324) |
Mortgage servicing rights | (103,976) | (42,461) |
Accounts payable and accrued expenses | 2,659 | (4,129) |
Accrued compensation and benefits | (30,520) | (86) |
Income taxes | 9,866 | 22,006 |
Contingent liability payments | (8,146) | (788) |
Operating lease liabilities | (3,854) | (5,250) |
Deferred compensation plan liability | 3,756 | (799) |
Proceeds from real estate owned conveyed to HUD | 55 | 994 |
Purchase and advances of real estate owned | (237) | (408) |
Net cash provided by (used in) operating activities | 34,349 | (231,206) |
Cash flows from investing activities | ||
Proceeds from the sale of property and equipment | 0 | 16 |
Purchase of property and equipment | (667) | (2,398) |
Payment made on behalf of affiliate | 0 | (12,011) |
Net cash used in investing activities | (667) | (14,393) |
Cash flows from financing activities | ||
Borrowings on warehouse lines of credit | 9,558,537 | 5,644,903 |
Repayments on warehouse lines of credit | (9,630,640) | (5,340,088) |
Borrowings on MSR notes payable | 23,500 | 45,000 |
Repayments on MSR notes payable | (4,250) | (75,000) |
Contingent liability payments | 0 | (1,617) |
Net change in notes payable | (501) | (486) |
Dividends paid | 0 | (10,000) |
Net cash (used in) provided by financing activities | (53,354) | 262,712 |
(Decrease) increase in cash, cash equivalents and restricted cash | (19,672) | 17,113 |
Cash, cash equivalents and restricted cash, beginning of period | 339,633 | 106,735 |
Cash, cash equivalents and restricted cash, end of period | 319,961 | 123,848 |
Cash, cash equivalents and restricted cash at end of period are comprised of the following: | ||
Total cash, cash equivalents and restricted cash | 319,961 | 123,848 |
Supplemental information | ||
Cash paid for interest, net | 12,349 | 8,599 |
Cash paid for taxes, net of refunds | $ (124) | $ 0 |
Business, Basis of Presentation
Business, Basis of Presentation, and Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation, and Accounting Policies | BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES Guild Holdings Company, including our consolidated subsidiaries (collectively, “Guild”, the “Company”, “we”, “us” or “our”) originates, sells, and services residential mortgage loans within the United States. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with U.S. generally accepted accounting principles (“GAAP”) applicable to interim financial statements. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results of the interim period. The condensed consolidated balance sheet data as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020. The Company follows the same accounting policies for preparing quarterly and annual reports. Principles of Consolidation The Company has one wholly owned subsidiary, Guild Mortgage Company LLC ("GMC"), which through its direct subsidiaries, conducts the Company’s mortgage banking operations. GMC wholly owns Guild Administration Corp., Mission Village Insurance Agency, Guild Insurance, LLC and Guild Financial Express, Inc. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results could materially differ from those estimates. In March 2020, the World Health Organization (“WHO”) declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic, which continues to spread throughout the United States. The Company remains fully functional in both its origination and servicing operations. The Company continues to monitor guidance published by the WHO, Centers for Disease Control and Prevention, local and federal government agencies and the Mortgage Bankers Association and is in continual communication with its investors regarding the developments in the mortgage industry. Earnings Per Share The Company determines earnings per share in accordance with the authoritative guidance in ASC Topic 260, Earnings Per Share . Basic earnings per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period using the two-class method. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to assume the issuance of potentially dilutive shares using the treasury stock method, unless the effect of such increase would be anti-dilutive. Under the treasury stock method, the average amount of compensation cost for future service that the Company has not yet recognized is assumed to be used to repurchase shares. Stock-Based Compensation Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair value of restricted stock units (“RSUs”) is based on the value of the Company’s common stock on the date of grant. Stock-based compensation is included in salaries, incentive compensation and benefits. See Note 12 for additional information. Escrow and Fiduciary Funds As a loan servicer, the Company maintains segregated bank accounts in trust for investors and escrow balances for mortgagors, which are excluded from the Company’s Condensed Consolidated Balance Sheets. These accounts totaled $1.7 billion at March 31, 2021 and December 31, 2020. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15 , Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 35-40) . This update provides guidance on accounting for a cloud computing arrangement that includes a license to internal-use software. This generally means that an intangible asset is recognized for the software license and, to the extent that the payments attributable to the software license are made over time, a liability also is recognized. If a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract which would generally mean to expense the service as incurred. We adopted ASU 2018-15 on January 1, 2021 on a prospective basis and the adoption did not have a material impact on our financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The categorization of assets and liabilities measured at fair value within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to measure fair value are as follows: • Level One - Level One inputs are unadjusted, quoted prices in active markets for identical assets or liabilities which the Company has the ability to access at the measurement date. • Level Two - Level Two inputs are observable for that asset or liability, either directly or indirectly, and include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, observable inputs for the asset or liability other than quoted prices and inputs derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified contractual term, the inputs must be observable for substantially the full term of the asset or liability. • Level Three - Level Three inputs are unobservable inputs for the asset or liability that reflect the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and are developed based on the best information available. The Company updates the valuation of each instrument recorded at fair value on a monthly or quarterly basis, evaluating all available observable information which may include current market prices or bids, recent trade activity, changes in the levels of market activity and benchmarking of industry data. The assessment also includes consideration of identifying the valuation approach that would be used currently by market participants. If it is determined that a change in valuation technique or its application is appropriate, or if there are other changes in availability of observable data or market activity, the current methodology will be analyzed to determine if a transfer between levels of the valuation hierarchy is appropriate. Such reclassifications are reported as transfers into or out of a level as of the beginning of the quarter that the change occurs. Fair value is based on quoted market prices, when available. If quoted prices are not available, fair value is estimated based upon other observable inputs. Unobservable inputs are used when observable inputs are not available and are based upon judgments and assumptions, which are the Company’s assessment of the assumptions market participants would use in pricing the asset or liability. These inputs may include assumptions about risk, counterparty credit quality, the Company’s creditworthiness and liquidity and are developed based on the best information available. When a determination is made to classify an asset or liability within Level Three of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement of the asset or liability. The fair value of assets and liabilities classified within Level Three of the valuation hierarchy also typically includes observable factors and the realized or unrealized gain or loss recorded from the valuation of these instruments would also include amounts determined by observable factors. Recurring Fair Value Measurements The Company’s fair value measurements are evaluated within the fair value hierarchy, based on the nature of the inputs used to determine the fair value at the measurement date. At March 31, 2021 and December 31, 2020, the Company had the following assets and liabilities that are measured at fair value on a recurring basis: Trading Securities — Trading securities are classified within Level One of the valuation hierarchy. Valuation is based upon quoted prices for identical instruments traded in active markets. Level One trading securities include securities traded on active exchange markets, such as the New York Stock Exchange. Trading securities are included within prepaid expenses and other assets in the Condensed Consolidated Balance Sheets. Derivative Instruments — Derivative instruments are classified within Level Two and Level Three of the valuation hierarchy, and include the following: Interest Rate Lock Commitments — IRLCs are classified within Level Three of the valuation hierarchy. IRLCs represent an agreement to extend credit to a mortgage loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to funding. The fair value of IRLCs is based upon the estimated fair value of the underlying mortgage loan, including the expected net future cash flows related to servicing the mortgage loan, net of estimated incentive compensation expenses, and adjusted for: (i) estimated costs to complete and originate the loan and (ii) an adjustment to reflect the estimated percentage of IRLCs that will result in a closed mortgage loan under the original terms of the agreement (pull-through rate). The pull-through rate is considered a significant unobservable input and is estimated based on changes in pricing and actual borrower behavior using a historical analysis of loan closing and fallout data. The average pull-through rate used to calculate the fair value of IRLCs as of March 31, 2021 and December 31, 2020, was 92.2% and 87.8%, respectively. On a quarterly basis, actual loan pull-through rates are compared to the modeled estimates to confirm the assumptions are reflective of current trends. Generally, a change in interest rates is accompanied by a directionally opposite change in the assumption used for the pull-through percentage, and the impact to fair value of a change in pull-through would be partially offset by the related change in price. Forward Delivery Commitments — Forward delivery commitments are classified within Level Two of the valuation hierarchy. Forward delivery commitments fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. The fair value of forward delivery commitments is primarily based upon the current agency mortgage-backed security market to-be-announced pricing specific to the loan program, delivery coupon and delivery date of the trade. Best efforts sales commitments are also entered into for certain loans at the time the borrower commitment is made. These best-efforts sales commitments are valued using the committed price to the counterparty against the current market price of the IRLC or mortgage loan held for sale. Option contracts are a type of forward commitment that represents the rights to buy or sell mortgage-backed securities at specified prices in the future. Their value is based upon the underlying current to-be-announced pricing of the agency mortgage-backed security market, and market-based volatility. See Note 5 for additional information on the derivative instruments. Mortgage Loans Held for Sale — MLHS are carried at fair value. The fair value of MLHS is based on secondary market pricing for loans with similar characteristics, and as such, is classified as a Level Two measurement. For Level Two MLHS, fair value is estimated through a market approach by using either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to servicing rights and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. The agency mortgage-backed security market is a highly liquid and active secondary market for conforming conventional loans whereby quoted prices exist for securities at the pass-through level and are published on a regular basis. The Company has the ability to access this market and it is the market into which conforming mortgage loans are typically sold. Mortgage Servicing Rights — MSRs are classified within Level Three of the valuation hierarchy due to the use of significant unobservable inputs and the lack of an active market for such assets. The fair value of MSRs is estimated based upon projections of expected future cash flows considering prepayment estimates, the Company’s historical prepayment rates, portfolio characteristics, interest rates based on interest rate yield curves, implied volatility, costs to service and other economic factors. The Company obtains valuations from an independent third party on a monthly basis, and records an adjustment based on this third-party valuation. Contingent Liabilities due to acquisitions — Contingent liabilities represent future obligations of the Company to make payments to the former owners of its acquired companies. The Company determines the fair value of its contingent liabilities using a discounted cash flow approach whereby the Company forecasts the cash outflows related to the future payments, which are based on a percentage of net income specified in the purchase agreements. The Company then discounts these expected payment amounts to calculate the present value, or fair value, as of the valuation date. The Company’s management evaluates the underlying projections used in determining fair value each period and makes updates to these underlying projections. The Company uses a risk-adjusted discount rate to value the contingent liabilities which is considered a significant unobservable input, and as such, the liabilities are classified as a Level Three measurement. Management’s underlying projections adjust for market penetration and other economic expectations, and the discount rate is risk-adjusted for key factors such as uncertainty in the mortgage banking industry due to its reliance on external influences (interest rates, regulatory changes, etc.), upfront payments, and credit risk. An increase in the discount rate will result in a decrease in the fair value of the contingent liabilities. Conversely, a decrease in the discount rate will result in an increase in the fair value of the contingent liabilities. For the three months ended March 31, 2021 and 2020, the range of the risk adjusted discount rate was 8.0% - 20.0%, with a median of 15.0%. Adjustments to the fair value of the contingent liabilities (other than payments) are recorded as a gain or loss and are included within general and administrative expenses in the Condensed Consolidated Statements of Income (Loss). The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2021: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 91 $ — $ — $ 91 Derivative Forward delivery commitments — 97,060 — 97,060 Interest rate lock commitments — — 38,009 38,009 Mortgage loans held for sale — 2,345,927 — 2,345,927 Mortgage servicing rights — — 586,717 586,717 Total assets at fair value $ 91 $ 2,442,987 $ 624,726 $ 3,067,804 Liabilities: Contingent liabilities due to acquisitions — — 16,568 16,568 Total liabilities at fair value $ — $ — $ 16,568 $ 16,568 The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2020: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 78 $ — $ — $ 78 Derivative Interest rate lock commitments — — 130,338 130,338 Mortgage loans held for sale — 2,368,777 — 2,368,777 Mortgage servicing rights — — 446,998 446,998 Total assets at fair value $ 78 $ 2,368,777 $ 577,336 $ 2,946,191 Liabilities: Derivative Forward delivery commitments $ — $ 38,270 $ — $ 38,270 Contingent liabilities due to acquisitions — — 18,094 18,094 Total liabilities at fair value $ — $ 38,270 $ 18,094 $ 56,364 The table below presents a reconciliation of Level Three assets and liabilities measured at fair value on a recurring basis for the periods ended: IRLCs Contingent Balance at December 31, 2019 $ 19,922 $ 8,073 Net transfers and revaluation gains 81,333 — Payments — (2,405) Valuation adjustments — 9,007 Balance at March 31, 2020 $ 101,255 $ 14,675 Balance at December 31, 2020 $ 130,338 $ 18,094 Net transfers and revaluation gains (92,329) — Payments — (8,146) Valuation adjustments — 6,620 Balance at March 31, 2021 $ 38,009 $ 16,568 Changes in the availability of observable inputs may result in reclassifications of certain assets or liabilities. Such reclassifications are reported as transfers in or out of Level Three as of the beginning of the period that the change occurs. There were no transfers between fair value levels during the three months ended March 31, 2021 and 2020. Non-Recurring Fair Value Measurements Certain assets and liabilities that are not typically measured at fair value on a recurring basis may be subject to fair value measurement requirements under certain circumstances. These adjustments to fair value usually result from write-downs of individual assets. At March 31, 2021 and December 31, 2020, the Company had the following financial asset measured at fair value on a non-recurring basis: Ginnie Mae Loans subject to Repurchase Right — Government National Mortgage Association ("GNMA" or "Ginnie Mae") securitization programs allow servicers to buy back individual delinquent mortgage loans from the securitized loan pool once certain conditions are met. If a borrower makes no payment for three consecutive months, the servicer has the option to repurchase the delinquent loan for an amount equal to 100% of the loan’s remaining principal balance. Under ASC 860, this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. The Company records these assets and liabilities at their fair value, which is determined to be the remaining unpaid principal balance. The Company’s future expected realizable cash flows are the cash payments of the remaining unpaid principal balance whether paid by the borrower or reimbursed through a claim filed with the United States Department of Housing and Urban Development ("HUD"). The Company considers the fair value of these assets and liabilities to fall into the Level Two bucket in the valuation hierarchy due to the assets and liabilities having specified contractual terms and the inputs are observable for substantially the full term of the assets and liabilities life. The following table summarizes the Company’s financial assets measured at fair value on a non-recurring basis at March 31, 2021: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 1,240,882 $ — $ 1,240,882 Total assets at fair value $ — $ 1,240,882 $ — $ 1,240,882 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 1,241,726 $ — $ 1,241,726 Total liabilities at fair value $ — $ 1,241,726 $ — $ 1,241,726 The following table summarizes the Company’s financial assets measured at fair value on a non-recurring basis at December 31, 2020: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 1,275,842 $ — $ 1,275,842 Total assets at fair value $ — $ 1,275,842 $ — $ 1,275,842 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 1,277,026 $ — $ 1,277,026 Total liabilities at fair value $ — $ 1,277,026 $ — $ 1,277,026 Fair Value Option The following is the estimated fair value and unpaid principal balance of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects their expected future economic performance: Fair Value Principal Difference (1) Balance at March 31, 2021 $ 2,345,927 $ 2,332,662 $ 13,265 Balance at December 31, 2020 $ 2,368,777 $ 2,293,895 $ 74,882 _______________________________ (1) Represents the amount of gains included in loan origination fees and gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option. |
Accounts and Interest Receivabl
Accounts and Interest Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Accounts and Interest Receivable | ACCOUNTS AND INTEREST RECEIVABLE Accounts and interest receivable consisted of the following: March 31, 2021 December 31, 2020 Trust advances $ 34,268 $ 36,241 Foreclosure advances, net 3,379 2,894 Receivables related to loan sales 1,620 2,707 Other (1,040) 1,548 Total accounts and interest receivable $ 38,227 $ 43,390 Management has established a foreclosure reserve for estimated uncollectable balances of the foreclosure and trust advances. Management believes that substantially all other accounts and interest receivable amounts are collectible and, accordingly, no allowance for doubtful accounts is necessary. The activity of the foreclosure loss reserve was as follows: Three Months Ended March 31, 2021 2020 Balance — beginning of period $ 12,402 $ 7,869 Utilization of foreclosure reserve (1,514) (800) Provision charged to operations 2,462 1,924 Balance — end of period $ 13,350 $ 8,993 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | OTHER ASSETS Other assets consisted of the following: March 31, 2021 December 31, 2020 Prepaid expenses $ 15,831 $ 16,652 Company owned life insurance 34,174 29,910 Property and equipment, net 13,786 14,773 Right-of-use assets 83,222 87,508 Real estate owned 1,196 1,354 Trading securities 91 78 Total other assets $ 148,300 $ 150,275 Property and equipment consisted of the following: March 31, 2021 December 31, 2020 Computer equipment $ 22,980 $ 22,946 Furniture and equipment 18,344 18,301 Leasehold improvements 12,153 12,307 Internal-use software in production 1,656 1,716 Internal-use software 6,258 5,639 Property and equipment, gross 61,391 60,909 Accumulated depreciation (47,605) (46,136) Property and equipment, net $ 13,786 $ 14,773 Depreciation and amortization expense for property and equipment was $1.7 million and $1.9 million for the three months ended March 31, 2021 and 2020, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses forward commitments in hedging the interest rate risk exposure on its fixed and adjustable rate commitments. The Company’s derivative instruments are not designated as hedging instruments; therefore, changes in fair value are recorded in current period earnings. Hedging gains and losses are included in loan origination fees and gain on sale of loans, net in the Condensed Consolidated Statements of Income (Loss). Net unrealized hedging gains were as follows: Three Months Ended March 31, 2021 2020 Unrealized hedging gains $ 43,001 $ 30,290 Notional and Fair Value The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows at March 31, 2021 and December 31, 2020: Fair Value Notional Derivative Derivative Balance at March 31, 2021 IRLCs $ 4,021,335 $ 38,009 $ — Forward commitments $ 4,396,480 $ 97,060 $ — Balance at December 31, 2020 IRLCs $ 5,151,179 $ 130,338 $ — Forward commitments $ 5,480,491 $ — $ 38,270 The Company had an additional $1.1 billion and $895.2 million of outstanding forward contracts and mandatory sell commitments, comprised of closed loans with equal and offsetting UPB amounts allocated to them, at March 31, 2021 and December 31, 2020, respectively. The Company also had $1.4 billion and $908.0 million in closed hedge instruments not yet settled at March 31, 2021 and December 31, 2020, respectively. See Note 2 for fair value disclosure of the derivative instruments. The following table presents the quantitative information about IRLCs and the fair value measurements: March 31, 2021 December 31, 2020 Unobservable Input Range (Weighted Average) Loan funding probability (“pull-through”) 0% -100% (92.2%) 0% - 100% (87.8%) Counterparty agreements for forward commitments contain master netting agreements. The master netting agreements contain a legal right to offset amounts due to and from the same counterparty. The Company incurred no credit losses due to nonperformance of any of its counterparties during the periods ended March 31, 2021 and 2020. The table below represents financial liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged. Gross Gross Net March 31, 2021 Forward delivery commitments $ 100,931 $ (1,256) $ 99,675 Best efforts sales commitments (2,615) — (2,615) Total assets $ 98,316 $ (1,256) $ 97,060 December 31, 2020 Forward delivery commitments $ (54,419) $ 4,825 $ (49,594) Best efforts sales commitments (3,656) — (3,656) Margin calls 14,980 — 14,980 Total liabilities $ (43,095) $ 4,825 $ (38,270) |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | MORTGAGE SERVICING RIGHTS The activity of mortgage servicing rights was as follows: Three Months Ended March 31, 2021 2020 Balance — beginning of period $ 446,998 $ 418,402 MSRs originated 103,976 42,461 Changes in fair value: Due to collection/realization of cash flows (44,862) (22,510) Due to changes in valuation model inputs or assumptions 80,605 (86,139) Balance — end of period $ 586,717 $ 352,214 The following table presents the weighted average discount rate, prepayment speed and cost to service assumptions used to determine the fair value of MSRs: March 31, 2021 December 31, 2020 Unobservable Input Range (Weighted Average) Discount rate 9.2% - 15.5% (10.0%) 9.2% - 15.5% (10.0%) Prepayment rate 9.0% - 28.1% (13.1%) 10.0% - 38.8% (18.2%) Cost to service (per loan) $71.8 - $261.3 ($91.6) $71.0 - $409.4 ($92.5) At March 31, 2021 and December 31, 2020, the MSRs had a weighted average life of approximately 6.1 years and 5.1 years, respectively. See Note 2 for additional information regarding the valuation of MSRs. Actual revenue generated from servicing activities included contractually specified servicing fees, as well as late fees and other ancillary servicing revenue, which were recorded within loan servicing and other fees as follows for the periods ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Servicing fees from servicing portfolio $ 43,856 $ 37,076 Late fees 1,069 1,701 Other ancillary servicing revenue (expense) 274 (245) Total loan servicing and other fees $ 45,199 $ 38,532 At March 31, 2021 and December 31, 2020, the unpaid principal balance of mortgage loans serviced totaled $63.6 billion and $60.8 billion, respectively. Conforming conventional loans serviced by the Company are sold to the Federal National Mortgage Association ("FNMA" or "Fannie Mae") or the Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac") programs on a nonrecourse basis, whereby foreclosure losses are generally the responsibility of FNMA and FHLMC and not the Company. Similarly, certain loans serviced by the Company are secured through GNMA programs, whereby the Company is insured against loss by the Federal Housing Association ("FHA") or partially guaranteed against loss by the Department of Veterans Affairs ("VA"). The key assumptions used to estimate the fair value of MSRs are prepayment speeds, the discount rate and costs to service. Increases in prepayment speeds generally have an adverse effect on the value of MSRs as the underlying loans prepay faster. In a declining interest rate environment, the fair value of MSRs generally decreases as prepayments increase and therefore, the estimated life of the MSRs and related cash flows decrease. Decreases in prepayment speeds generally have a positive effect on the value of MSRs as the underlying loans prepay less frequently. In a rising interest rate environment, the fair value of MSRs generally increases as prepayments decrease and therefore, the estimated life of the MSRs and related cash flows increase. Increases in the discount rate generally have an adverse effect on the value of the MSRs. The discount rate is risk adjusted for key factors such as uncertainty in the mortgage banking industry due to its reliance on external influences (interest rates, regulatory changes, etc.), premium for market liquidity, and credit risk. A higher discount rate would indicate higher uncertainty of the future cash flows. Conversely decreases in the discount rate generally have a positive effect on the value of the MSRs. Increases in the costs to service generally have an adverse effect on the value of the MSRs as an increase in costs to service would reduce the Company’s future net cash inflows from servicing a loan. Conversely deceases in the costs to service generally have a positive effect on the value of the MSRs. MSR uncertainties are hypothetical and do not always have a direct correlation with each assumption. Changes in one assumption may result in changes to another assumption, which might magnify or counteract the uncertainties. The following table illustrates the impact of adverse changes on the prepayment speeds, discount rate and cost to service at two different data points at March 31, 2021 and December 31, 2020, respectively: Prepayment Speeds Discount Rate Cost to Service (per loan) 10% Adverse 20% Adverse 10% Adverse 20% Adverse 10% Adverse 20% Adverse March 31, 2021 Mortgage servicing rights $ (38,692) $ (71,688) $ (25,906) $ (45,594) $ (12,565) $ (20,447) December 31, 2020 Mortgage servicing rights $ (36,117) $ (66,419) $ (18,638) $ (32,312) $ (10,334) $ (16,700) |
Mortgage Loans Held for Sale
Mortgage Loans Held for Sale | 3 Months Ended |
Mar. 31, 2021 | |
Mortgage Loans Held For Sale [Abstract] | |
Mortgage Loans Held for Sale | MORTGAGE LOANS HELD FOR SALE The Company sells substantially all of its originated mortgage loans into the secondary market. The Company may retain the right to service some of these loans upon sale through ownership of servicing rights. A reconciliation of the changes in mortgage loans held for sale to the amounts presented in the Condensed Consolidated Statements of Cash Flows is set forth below: Three Months Ended March 31, 2021 2020 Balance at the beginning of period $ 2,368,777 $ 1,504,842 Origination of mortgage loans held for sale 9,815,270 5,620,167 Proceeds on sale of payments from mortgage loans held for sale (10,131,643) (5,561,492) Gain on sale of mortgage loans excluding fair value of other financial instruments, net 355,157 170,948 Valuation adjustment of mortgage loans held for sale (61,634) 31,025 Balance at the end of period $ 2,345,927 $ 1,765,490 At March 31, 2021, mortgage loans held for sale included unpaid principal balances of the underlying loans of $2.3 billion and had a fair value of $2.3 billion. At December 31, 2020, mortgage loans held for sale included unpaid principal balances of the underlying loans of $2.3 billion and had a fair value of $2.4 billion. |
Investor Reserves
Investor Reserves | 3 Months Ended |
Mar. 31, 2021 | |
Investor Reserves [Abstract] | |
Investor Reserves | INVESTOR RESERVES The Company’s estimate of the investor reserves consider the current macro-economic environment and recent repurchase trends; however, if the Company experiences a prolonged period of higher repurchase and indemnification activity, then the realized losses from loan repurchases and indemnifications may ultimately be in excess of the liability. The maximum exposure under the Company’s representations and warranties would be the outstanding principal balance and any premium received on all loans ever sold by the Company, less any loans that have already been paid in full by the mortgagee, that have defaulted without a breach of representations and warranties, that have been indemnified via settlement or make-whole, or that have been repurchased. Additionally, the Company may receive relief of certain representations and warranty obligations on loans sold to FNMA or FHLMC on or after January 1, 2013 if FNMA or FHLMC satisfactorily concludes a quality control loan file review or if the borrower meets certain acceptable payment history requirements within 12 or 36 months after the loan is sold to FNMA or FHLMC. The activity of the investor reserves was as follows: Three Months Ended March 31, 2021 2020 Balance — beginning of period $ 14,535 $ 16,521 Benefit from investor reserves (2,006) (768) Provision for investor reserves charged to operations 2,348 2,151 Balance — end of period $ 14,877 $ 17,904 |
Warehouse Lines of Credit
Warehouse Lines of Credit | 3 Months Ended |
Mar. 31, 2021 | |
Line of Credit Facility [Abstract] | |
Warehouse Lines of Credit | WAREHOUSE LINES OF CREDIT Warehouse lines of credit consisted of the following at March 31, 2021 and December 31, 2020. Changes subsequent to March 31, 2021 have been described in the notes referenced with the below table. Maturity as of March 31, March 31, 2021 December 31, 2020 $800 million master repurchase facility agreement (1) January 2022 $ 353,809 $ 442,593 $250 million master repurchase facility agreement (2) September 2021 169,473 148,011 $500 million master repurchase facility agreement (3) February 2022 424,687 541,074 $200 million master repurchase facility agreement (4) May 2021 171,491 187,214 $300 million master repurchase facility agreement (5) September 2021 223,600 232,272 $500 million master repurchase facility agreement (6) July 2021 417,250 464,355 $200 million master repurchase facility agreement (7) April 2021 136,116 104,880 $250 million master repurchase facility agreement (8) N/A 154,616 — $75 million master repurchase facility agreement (9) March 2024 22,439 25,185 2,073,481 2,145,584 Prepaid commitment fees (2,148) (2,141) Net warehouse lines of credit $ 2,071,333 $ 2,143,443 ______________________________ (1) The variable interest rate is calculated using a base rate tied to LIBOR, the Eurodollar, or an alternative base rate with a floor of 0.75%, plus the applicable interest rate margin. (2) The variable interest rate is calculated using a base rate tied to LIBOR, plus the applicable interest rate margin. This line of credit requires a minimum deposit of $1.25 million. (3) The variable interest rate is calculated using a base rate tied to LIBOR, plus the applicable interest rate margin. In February 2021 this facility was reduced to $500.0 million and requires a minimum deposit to $2.5 million. (4) The variable interest rate is calculated using a base rate plus LIBOR, with a floor of 1.525% plus the applicable interest rate margin. This line of credit requires a minimum deposit of $750,000. Subsequent to March 31, 2021, this facility was amended with a maturity date of June 2021. (5) The variable interest rate is calculated using a base rate tied to LIBOR with a floor of 0.40%, plus the applicable interest rate margin. (6) The variable interest rate is calculated using a base rate tied to LIBOR with a floor of 0.75%, plus the applicable interest rate margin. (7) The variable interest rate is calculated using a base rate tied to LIBOR with a floor of 1.75%, plus the applicable interest rate margin. Subsequent to March 31, 2021, this facility was amended with a maturity date of June 2021. (8) This facility agreement was effective January 2021. The variable interest rate is calculated using a base rate tied to LIBOR, plus the applicable interest rate margin. This facility’s maturity date is 30 days from written notice by either the financial institution or the Company. (9) The interest rate on this facility is 3.375%. This facility was opened in 2020 and is used for GNMA delinquent buyouts. Each buyout represents a separate transaction that can remain on the facility for up to 4 years. Subsequent to March 31, 2021, the Company completed a buyout extending the maturity to March 2025. The weighted average interest rate for warehouse lines of credit was 2.44% and 2.52% at March 31, 2021 and December 31, 2020, respectively. All warehouse lines of credit are collateralized by underlying mortgages and related documents. Existing balances on warehouse lines are repaid through the sale proceeds from the collateralized loans held for sale. The Company intends to renew existing warehouse lines prior to expiration. If those lines are not renewed or replaced, that could have a negative impact on the Company’s ability to continue funding new loans. The Company had cash balances of $131.1 million and $15.6 million in its warehouse buy down accounts as offsets to certain lines of credit at March 31, 2021 and December 31, 2020, respectively. The agreements governing the Company’s warehouse lines of credit contain covenants that include certain financial requirements, including maintenance of maximum adjusted leverage ratio, minimum net worth, minimum tangible net worth, minimum current ratio, minimum liquidity, positive quarterly income and limitations on additional indebtedness, dividends, sale of assets, and decline in the mortgage loan servicing portfolio’s fair value. At March 31, 2021 and December 31, 2020, management believes the Company was in compliance with all debt covenants. The Company has an optional short-term financing agreement between FNMA and the lender described as “As Soon As Pooled” (ASAP). The Company can elect to assign FNMA MBS trades to FNMA in advance of settlement and enter into a financing transaction and revenue related to the assignment is deferred until the final pool settlement date. The Company determines utilization based on warehouse availability and cash needs. There was no outstanding balance as of March 31, 2021 and December 31, 2020. Revolving Notes: In January 2014, the Company entered into an agreement for a revolving note from one of its warehouse banks, which it can draw upon as needed and has renewed on an annual basis. Borrowings on the revolving note are collateralized by the Company’s GNMA MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the LIBOR rate plus the applicable margin, with a floor of 4.50%. The revolving note also has an unused facility fee on the average unused balance, which is also paid quarterly. The unused facility fee is waived if the average outstanding balance exceeds 70% of the available facility. In June 2020, the Company amended and restated the agreement and the revolving note was increased to a maximum committed amount of $135.0 million. The agreement also allows for the Company to increase the committed amount up to $200.0 million. The revolving note is currently scheduled to expire in June 2022. The Company has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At March 31, 2021 and December 31, 2020, the Company had $45.0 million in outstanding borrowings on this credit facility. In July 2017, the Company entered into an agreement for a revolving note of up to $25.0 million from one of its warehouse banks, which it can draw upon as needed and has renewed on an annual basis. In July 2018, the Company amended the agreement to increase the revolving note up to $50.0 million. In July 2020, the Company amended the agreement by extending the expiration date to July 2021 and increasing the revolving note up to $65.0 million. Borrowings on the revolving note are collateralized by the Company’s FHLMC MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the LIBOR rate with a floor of 0.75% plus the applicable margin. The revolving note also has an unused facility fee on the average unused balance, which is also paid quarterly. The unused facility fee is waived if the average outstanding balance exceeds 50% of the available combined warehouse and MSR facility. The lender has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At March 31, 2021 and December 31, 2020, the Company had $20.0 million in outstanding borrowings on this credit facility. Term Note: In January 2014, the Company entered into a term note agreement with one of its warehouse banks collateralized by the Company’s FNMA MSRs. In March 2021, the term note was amended and restated, at which time there was an outstanding amount of $76.5 million. The outstanding amount of $76.5 million was rolled into a new term note with a commitment of $125.0 million. The note allows for the committed amount to be increased to a maximum of $175.0 million. The Company could draw on the committed amount through March 2022 and the note matures on March 25, 2024. Interest on the principal is paid monthly and is based upon a margin plus the highest of the (i) Prime Rate, (ii) Federal Funds Rate plus 0.5%, or (iii) the Eurodollar Base Rate plus 1.0%. Principal payments of 5% of the outstanding balance as of March 31, 2022 are due quarterly beginning April 15, 2022, with the remaining principal balance due upon maturity. The term note also has an unused facility fee equal to 0.375% of the average daily unadvanced amount, which is the difference between the committed amount and the amount outstanding. This fee is paid quarterly. At March 31, 2021 and December 31, 2020, the Company had an outstanding balance of $100.0 million and $80.8 million, respectively, on this facility. The minimum calendar year payments of the Company’s term note as of March 31, 2021 are as follows: 2022 $ 15,000 2023 20,000 2024 65,000 Total $ 100,000 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Warehouse Lines of Credit | WAREHOUSE LINES OF CREDIT Warehouse lines of credit consisted of the following at March 31, 2021 and December 31, 2020. Changes subsequent to March 31, 2021 have been described in the notes referenced with the below table. Maturity as of March 31, March 31, 2021 December 31, 2020 $800 million master repurchase facility agreement (1) January 2022 $ 353,809 $ 442,593 $250 million master repurchase facility agreement (2) September 2021 169,473 148,011 $500 million master repurchase facility agreement (3) February 2022 424,687 541,074 $200 million master repurchase facility agreement (4) May 2021 171,491 187,214 $300 million master repurchase facility agreement (5) September 2021 223,600 232,272 $500 million master repurchase facility agreement (6) July 2021 417,250 464,355 $200 million master repurchase facility agreement (7) April 2021 136,116 104,880 $250 million master repurchase facility agreement (8) N/A 154,616 — $75 million master repurchase facility agreement (9) March 2024 22,439 25,185 2,073,481 2,145,584 Prepaid commitment fees (2,148) (2,141) Net warehouse lines of credit $ 2,071,333 $ 2,143,443 ______________________________ (1) The variable interest rate is calculated using a base rate tied to LIBOR, the Eurodollar, or an alternative base rate with a floor of 0.75%, plus the applicable interest rate margin. (2) The variable interest rate is calculated using a base rate tied to LIBOR, plus the applicable interest rate margin. This line of credit requires a minimum deposit of $1.25 million. (3) The variable interest rate is calculated using a base rate tied to LIBOR, plus the applicable interest rate margin. In February 2021 this facility was reduced to $500.0 million and requires a minimum deposit to $2.5 million. (4) The variable interest rate is calculated using a base rate plus LIBOR, with a floor of 1.525% plus the applicable interest rate margin. This line of credit requires a minimum deposit of $750,000. Subsequent to March 31, 2021, this facility was amended with a maturity date of June 2021. (5) The variable interest rate is calculated using a base rate tied to LIBOR with a floor of 0.40%, plus the applicable interest rate margin. (6) The variable interest rate is calculated using a base rate tied to LIBOR with a floor of 0.75%, plus the applicable interest rate margin. (7) The variable interest rate is calculated using a base rate tied to LIBOR with a floor of 1.75%, plus the applicable interest rate margin. Subsequent to March 31, 2021, this facility was amended with a maturity date of June 2021. (8) This facility agreement was effective January 2021. The variable interest rate is calculated using a base rate tied to LIBOR, plus the applicable interest rate margin. This facility’s maturity date is 30 days from written notice by either the financial institution or the Company. (9) The interest rate on this facility is 3.375%. This facility was opened in 2020 and is used for GNMA delinquent buyouts. Each buyout represents a separate transaction that can remain on the facility for up to 4 years. Subsequent to March 31, 2021, the Company completed a buyout extending the maturity to March 2025. The weighted average interest rate for warehouse lines of credit was 2.44% and 2.52% at March 31, 2021 and December 31, 2020, respectively. All warehouse lines of credit are collateralized by underlying mortgages and related documents. Existing balances on warehouse lines are repaid through the sale proceeds from the collateralized loans held for sale. The Company intends to renew existing warehouse lines prior to expiration. If those lines are not renewed or replaced, that could have a negative impact on the Company’s ability to continue funding new loans. The Company had cash balances of $131.1 million and $15.6 million in its warehouse buy down accounts as offsets to certain lines of credit at March 31, 2021 and December 31, 2020, respectively. The agreements governing the Company’s warehouse lines of credit contain covenants that include certain financial requirements, including maintenance of maximum adjusted leverage ratio, minimum net worth, minimum tangible net worth, minimum current ratio, minimum liquidity, positive quarterly income and limitations on additional indebtedness, dividends, sale of assets, and decline in the mortgage loan servicing portfolio’s fair value. At March 31, 2021 and December 31, 2020, management believes the Company was in compliance with all debt covenants. The Company has an optional short-term financing agreement between FNMA and the lender described as “As Soon As Pooled” (ASAP). The Company can elect to assign FNMA MBS trades to FNMA in advance of settlement and enter into a financing transaction and revenue related to the assignment is deferred until the final pool settlement date. The Company determines utilization based on warehouse availability and cash needs. There was no outstanding balance as of March 31, 2021 and December 31, 2020. Revolving Notes: In January 2014, the Company entered into an agreement for a revolving note from one of its warehouse banks, which it can draw upon as needed and has renewed on an annual basis. Borrowings on the revolving note are collateralized by the Company’s GNMA MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the LIBOR rate plus the applicable margin, with a floor of 4.50%. The revolving note also has an unused facility fee on the average unused balance, which is also paid quarterly. The unused facility fee is waived if the average outstanding balance exceeds 70% of the available facility. In June 2020, the Company amended and restated the agreement and the revolving note was increased to a maximum committed amount of $135.0 million. The agreement also allows for the Company to increase the committed amount up to $200.0 million. The revolving note is currently scheduled to expire in June 2022. The Company has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At March 31, 2021 and December 31, 2020, the Company had $45.0 million in outstanding borrowings on this credit facility. In July 2017, the Company entered into an agreement for a revolving note of up to $25.0 million from one of its warehouse banks, which it can draw upon as needed and has renewed on an annual basis. In July 2018, the Company amended the agreement to increase the revolving note up to $50.0 million. In July 2020, the Company amended the agreement by extending the expiration date to July 2021 and increasing the revolving note up to $65.0 million. Borrowings on the revolving note are collateralized by the Company’s FHLMC MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the LIBOR rate with a floor of 0.75% plus the applicable margin. The revolving note also has an unused facility fee on the average unused balance, which is also paid quarterly. The unused facility fee is waived if the average outstanding balance exceeds 50% of the available combined warehouse and MSR facility. The lender has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At March 31, 2021 and December 31, 2020, the Company had $20.0 million in outstanding borrowings on this credit facility. Term Note: In January 2014, the Company entered into a term note agreement with one of its warehouse banks collateralized by the Company’s FNMA MSRs. In March 2021, the term note was amended and restated, at which time there was an outstanding amount of $76.5 million. The outstanding amount of $76.5 million was rolled into a new term note with a commitment of $125.0 million. The note allows for the committed amount to be increased to a maximum of $175.0 million. The Company could draw on the committed amount through March 2022 and the note matures on March 25, 2024. Interest on the principal is paid monthly and is based upon a margin plus the highest of the (i) Prime Rate, (ii) Federal Funds Rate plus 0.5%, or (iii) the Eurodollar Base Rate plus 1.0%. Principal payments of 5% of the outstanding balance as of March 31, 2022 are due quarterly beginning April 15, 2022, with the remaining principal balance due upon maturity. The term note also has an unused facility fee equal to 0.375% of the average daily unadvanced amount, which is the difference between the committed amount and the amount outstanding. This fee is paid quarterly. At March 31, 2021 and December 31, 2020, the Company had an outstanding balance of $100.0 million and $80.8 million, respectively, on this facility. The minimum calendar year payments of the Company’s term note as of March 31, 2021 are as follows: 2022 $ 15,000 2023 20,000 2024 65,000 Total $ 100,000 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHAREPrior to our initial public offering ("IPO") in October 2020, the Guild Mortgage Company LLC membership structure included several different types of LLC interests including ownership interests and profits interests. The Company analyzed the calculation of earnings per unit for periods prior to the IPO using the two-class method and determined that it resulted in values that would not be meaningful to the user of these condensed consolidated financial statements. Therefore, earnings per share information has not been presented for periods prior to October 22, 2020. Basic earnings per share is computed based on the weighted average number of shares of Class A and Class B shares outstanding during the period using the two-class method. Diluted earnings per share is computed based on the weighted average number of shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include restricted stock units for Class A common stock. The following table sets forth the components of basic and diluted earnings per share: Three Months Ended March 31, 2021 Net income available for Class A and Class B Common Stock $ 160,604 Weighted-average shares outstanding, Class A Common Stock 19,667 Weighted-average shares outstanding, Class B Common Stock 40,333 Weighted-average shares outstanding - basic 60,000 Add dilutive effects of non-vested shares of restricted stock - Class A 211 Weighted-average shares outstanding - diluted 60,211 Basic earnings per share: Class A and Class B Common Stock $ 2.68 Diluted earnings per share: Class A and Class B Common Stock $ 2.67 No shares were excluded from the calculation of earnings per share as a result of being anti-dilutive. Capital Stock The Company has two classes of common stock: Class A and Class B. Class A common stock is traded on the New York Stock Exchange under the symbol “GHLD.” There is no public market for the Company’s Class B common stock. However, under the terms of the Company’s Certificate of Incorporation, the holder of Class B common stock may convert any portion or all of the holder’s shares of Class B common stock into an equal number of shares of Class A common stock at any time. The holders of the Class A common stock and Class B common stock are entitled to dividends when and if declared by the Company’s Board of Directors out of legally available funds. Any stock dividend must be paid in shares of Class A common stock with respect to Class A common stock and in shares of Class B common stock with respect to Class B common stock. The voting powers, preferences and relative rights of Class A common stock and Class B common stock are identical in all respects, except that the holders of Class A common stock have one vote per share and the holders of Class B common stock have ten votes per share. Restricted Stock Units The Company issues RSUs, which represent the right to receive, upon vesting, one share of the Company’s common stock. The number of potentially dilutive shares related to RSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the vesting period. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Stock-Based Compensation The Company’s stock-based compensation arrangements include grants of restricted stock units under the 2020 Omnibus Incentive Plan. The stock-based compensation costs recognized during the three months ended March 31, 2021 was $1.6 million and is included in salaries, incentive compensation and benefits. As of March 31, 2021, there was approximately |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments to Extend Credit The Company enters into IRLCs with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. These commitments expose the Company to market risk if interest rates change and the loan is not economically hedged or committed to an investor. The Company is also exposed to credit loss if the loan is originated and not sold to an investor and the customer does not perform. The collateral upon extension of credit typically consists of a first deed of trust in the mortgagor’s residential property. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. Total commitments to originate loans at March 31, 2021 and December 31, 2020 were approximately $4.0 billion and $5.2 billion, respectively. The Company manages the interest rate price risk associated with its outstanding IRLCs and loans held for sale by entering into derivative loan instruments such as forward loan sales commitments, mandatory delivery commitments, options and futures contracts. Total commitments related to these derivatives at March 31, 2021 and December 31, 2020 were approximately $4.4 billion and $5.5 billion, respectively. Legal The Company is involved in various lawsuits arising in the ordinary course of business. While the ultimate results of these lawsuits cannot be predicted with certainty, management does not expect that these matters will have a material adverse effect on the consolidated financial position or results of operations of the Company. |
Minimum Net Worth Requirements
Minimum Net Worth Requirements | 3 Months Ended |
Mar. 31, 2021 | |
Mortgage Banking [Abstract] | |
Minimum Net Worth Requirements | MINIMUM NET WORTH REQUIREMENTS Certain secondary market investors and state regulators require the Company to maintain minimum net worth and capital requirements. To the extent that these requirements are not met, secondary market investors and/or the state regulators may utilize a range of remedies including sanctions, and/or suspension or termination of selling and servicing agreements, which may prohibit the Company from originating, securitizing or servicing these specific types of mortgage loans. The Company is subject to the following minimum net worth, minimum capital ratio and minimum liquidity requirements established by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac Seller/Servicers, and Ginnie Mae for single family issuers. Minimum Net Worth The minimum net worth requirement for Fannie Mae and Freddie Mac is defined as follows: • Base of $2,500 plus 25 basis points of outstanding UPB for total loans serviced. • Adjusted/Tangible Net Worth comprises of total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. The minimum net worth requirement for Ginnie Mae is defined as follows: • Base of $2,500 plus 35 basis points of the issuer’s total single-family effective outstanding obligations. • Adjusted/Tangible Net Worth comprises of total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. Minimum Capital Ratio • For Fannie Mae, Freddie Mac and Ginnie Mae the Company is also required to hold a ratio of Adjusted/Tangible Net Worth to Total Assets greater than 6%. Minimum Liquidity The minimum liquidity requirement for Fannie Mae and Freddie Mac is defined as follows: • 3.5 basis points of total Agency servicing. • Incremental 200 basis points of total nonperforming Agency, measured as 90 plus day delinquencies, servicing in excess of 6% of the total Agency servicing UPB. • Allowable assets for liquidity may include: cash and cash equivalents (unrestricted); available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations); and unused/available portion of committed servicing advance lines. The minimum liquidity requirement for Ginnie Mae is defined as follows: • Maintain liquid assets equal to the greater of $1,000 or 10 basis points of our outstanding single-family MBS. The most restrictive of the minimum net worth and capital requirements require the Company to maintain a minimum adjusted net worth balance of $78,064 as of December 31, 2020. As of December 31, 2020, the Company was in compliance with this requirement. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS ASC 280, Segment Reporting , establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in that guidance, the Company has determined that it has two reportable segments — Origination and Servicing. Origination — The Company operates its loan origination business throughout the United States. Its licensed sales professionals and support staff cultivate deep relationships with referral partners and clients and provide a customized approach to the loan transaction whether it is a purchase or refinance. The origination segment is primarily responsible for loan origination, acquisition and sale activities. Servicing — The Company services loans out of its corporate office in San Diego, California. Properties of the loans serviced by the Company are disbursed throughout the United States and as of March 31, 2021 the Company serviced at least one loan in forty-seven different states. The servicing segment provides a steady stream of cash flow to support the origination segment and more importantly it allows for the Company to build long standing client relationships that drive repeat and referral business back to the origination segment to recapture the client’s next mortgage transaction. The servicing segment is primarily responsible for the servicing activities of all loans in the Company’s servicing portfolio which includes, but is not limited to, collection and remittance of loan payments, managing borrower’s impound accounts for taxes and insurance, loan payoffs, loss mitigation and foreclosure activities. The Company does not allocate assets to its reportable segments as they are not included in the review performed by the Chief Operating Decision Maker for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting. The Company also does not allocate certain corporate expenses, which are represented by All Other in the tables below. The following table presents the financial performance and results by segment for the three months ended March 31, 2021: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 444,797 $ 1,792 $ 446,589 $ — $ 446,589 Loan servicing and other fees — 45,199 45,199 — 45,199 Valuation adjustment of mortgage servicing rights — 35,743 35,743 — 35,743 Interest income (expense) 2,846 (2,861) (15) (1,398) (1,413) Other income, net — 22 22 47 69 Net revenue 447,643 79,895 527,538 (1,351) 526,187 Expenses Salaries, incentive compensation and benefits 250,815 7,213 258,028 8,696 266,724 General and administrative 22,638 1,856 24,494 2,412 26,906 Occupancy, equipment and communication 13,173 1,108 14,281 551 14,832 Depreciation and amortization 893 190 1,083 571 1,654 Provision for foreclosure losses — 2,462 2,462 — 2,462 Income tax expense — — — 53,005 53,005 Net income (loss) $ 160,124 $ 67,066 $ 227,190 $ (66,586) $ 160,604 The following table presents the financial performance and results by segment for the three months ended March 31, 2020: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 238,802 $ 1,059 $ 239,861 $ — $ 239,861 Loan servicing and other fees — 38,532 38,532 — 38,532 Valuation adjustment of mortgage servicing rights — (108,649) (108,649) — (108,649) Interest income (expense) 2,220 37 2,257 (2,190) 67 Other income, net 5 1 6 383 389 Net revenue 241,027 (69,020) 172,007 (1,807) 170,200 Expenses Salaries, incentive compensation and benefits 140,006 5,686 145,692 2,321 148,013 General and administrative 19,524 1,756 21,280 945 22,225 Occupancy, equipment and communication 11,379 803 12,182 1,136 13,318 Depreciation and amortization 1,285 156 1,441 446 1,887 Provision for foreclosure losses — 1,924 1,924 — 1,924 Income tax benefit — — — (4,181) (4,181) Net income (loss) $ 68,833 $ (79,345) $ (10,512) $ (2,474) $ (12,986) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Acquisition On May 10, 2021, the Company entered into a definitive agreement to acquire Residential Mortgage Services, Inc. ("RMS") for a purchase price of approximately $196.7 million, subject to customary purchase price adjustments and closing conditions. The purchase price will be financed with a combination of existing cash resources and the issuance of the Company’s Class A common shares. The acquisition is expected to close in the third quarter of 2021, although there can be no assurance that the closing of the acquisition will occur by such time. Either party may terminate the acquisition agreement. Common Stock Cash Dividends Declared On May 6, 2021, the Company's Board of Directors declared a special cash dividend of $1.00 per share on its Class A and Class B common stock, payable on May 28, 2021, to stockholders of record on May 21, 2021. |
Business, Basis of Presentati_2
Business, Basis of Presentation, and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with U.S. generally accepted accounting principles (“GAAP”) applicable to interim financial statements. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results of the interim period. The condensed consolidated balance sheet data as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020. The Company follows the same accounting policies for preparing quarterly and annual reports. |
Principles of Consolidation | Principles of Consolidation The Company has one wholly owned subsidiary, Guild Mortgage Company LLC ("GMC"), which through its direct subsidiaries, conducts the Company’s mortgage banking operations. GMC wholly owns Guild Administration Corp., Mission Village Insurance Agency, Guild Insurance, LLC and Guild Financial Express, Inc. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results could materially differ from those estimates. In March 2020, the World Health Organization (“WHO”) declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic, which continues to spread throughout the United States. The Company remains fully functional in both its origination and servicing operations. The Company continues to monitor guidance published by the WHO, Centers for Disease Control and Prevention, local and federal government agencies and the Mortgage Bankers Association and is in continual communication with its investors regarding the developments in the mortgage industry. |
Earnings Per Share | Earnings Per Share The Company determines earnings per share in accordance with the authoritative guidance in ASC Topic 260, Earnings Per Share |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair value of restricted stock units (“RSUs”) is based on the value of the Company’s common stock on the date of grant. Stock-based compensation is included in salaries, incentive compensation and benefits. See Note 12 for additional information. |
Escrow and Fiduciary Funds | Escrow and Fiduciary FundsAs a loan servicer, the Company maintains segregated bank accounts in trust for investors and escrow balances for mortgagors, which are excluded from the Company’s Condensed Consolidated Balance Sheets. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15 , Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 35-40) . This update provides guidance on accounting for a cloud computing arrangement that includes a license to internal-use software. This generally means that an intangible asset is recognized for the software license and, to the extent that the payments attributable to the software license are made over time, a liability also is recognized. If a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract which would generally mean to expense the service as incurred. We adopted ASU 2018-15 on January 1, 2021 on a prospective basis and the adoption did not have a material impact on our financial statements. |
Fair Value Measurements | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The categorization of assets and liabilities measured at fair value within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to measure fair value are as follows: • Level One - Level One inputs are unadjusted, quoted prices in active markets for identical assets or liabilities which the Company has the ability to access at the measurement date. • Level Two - Level Two inputs are observable for that asset or liability, either directly or indirectly, and include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, observable inputs for the asset or liability other than quoted prices and inputs derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified contractual term, the inputs must be observable for substantially the full term of the asset or liability. • Level Three - Level Three inputs are unobservable inputs for the asset or liability that reflect the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and are developed based on the best information available. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2021: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 91 $ — $ — $ 91 Derivative Forward delivery commitments — 97,060 — 97,060 Interest rate lock commitments — — 38,009 38,009 Mortgage loans held for sale — 2,345,927 — 2,345,927 Mortgage servicing rights — — 586,717 586,717 Total assets at fair value $ 91 $ 2,442,987 $ 624,726 $ 3,067,804 Liabilities: Contingent liabilities due to acquisitions — — 16,568 16,568 Total liabilities at fair value $ — $ — $ 16,568 $ 16,568 The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2020: Description Level 1 Level 2 Level 3 Total Assets: Trading securities $ 78 $ — $ — $ 78 Derivative Interest rate lock commitments — — 130,338 130,338 Mortgage loans held for sale — 2,368,777 — 2,368,777 Mortgage servicing rights — — 446,998 446,998 Total assets at fair value $ 78 $ 2,368,777 $ 577,336 $ 2,946,191 Liabilities: Derivative Forward delivery commitments $ — $ 38,270 $ — $ 38,270 Contingent liabilities due to acquisitions — — 18,094 18,094 Total liabilities at fair value $ — $ 38,270 $ 18,094 $ 56,364 |
Summary of Reconciliation of Level Three Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents a reconciliation of Level Three assets and liabilities measured at fair value on a recurring basis for the periods ended: IRLCs Contingent Balance at December 31, 2019 $ 19,922 $ 8,073 Net transfers and revaluation gains 81,333 — Payments — (2,405) Valuation adjustments — 9,007 Balance at March 31, 2020 $ 101,255 $ 14,675 Balance at December 31, 2020 $ 130,338 $ 18,094 Net transfers and revaluation gains (92,329) — Payments — (8,146) Valuation adjustments — 6,620 Balance at March 31, 2021 $ 38,009 $ 16,568 |
Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the Company’s financial assets measured at fair value on a non-recurring basis at March 31, 2021: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 1,240,882 $ — $ 1,240,882 Total assets at fair value $ — $ 1,240,882 $ — $ 1,240,882 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 1,241,726 $ — $ 1,241,726 Total liabilities at fair value $ — $ 1,241,726 $ — $ 1,241,726 The following table summarizes the Company’s financial assets measured at fair value on a non-recurring basis at December 31, 2020: Description Level 1 Level 2 Level 3 Total Assets: Ginnie Mae loans subject to repurchase right $ — $ 1,275,842 $ — $ 1,275,842 Total assets at fair value $ — $ 1,275,842 $ — $ 1,275,842 Liabilities: Ginnie Mae loans subject to repurchase right $ — $ 1,277,026 $ — $ 1,277,026 Total liabilities at fair value $ — $ 1,277,026 $ — $ 1,277,026 |
Summary of Fair Value Option for Mortgage Loans Held For Sale | The following is the estimated fair value and unpaid principal balance of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects their expected future economic performance: Fair Value Principal Difference (1) Balance at March 31, 2021 $ 2,345,927 $ 2,332,662 $ 13,265 Balance at December 31, 2020 $ 2,368,777 $ 2,293,895 $ 74,882 _______________________________ (1) Represents the amount of gains included in loan origination fees and gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option. |
Accounts and Interest Receiva_2
Accounts and Interest Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts and Interest Receivable | Accounts and interest receivable consisted of the following: March 31, 2021 December 31, 2020 Trust advances $ 34,268 $ 36,241 Foreclosure advances, net 3,379 2,894 Receivables related to loan sales 1,620 2,707 Other (1,040) 1,548 Total accounts and interest receivable $ 38,227 $ 43,390 |
Schedule of Activity of the Foreclosure Loss Reserve | The activity of the foreclosure loss reserve was as follows: Three Months Ended March 31, 2021 2020 Balance — beginning of period $ 12,402 $ 7,869 Utilization of foreclosure reserve (1,514) (800) Provision charged to operations 2,462 1,924 Balance — end of period $ 13,350 $ 8,993 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Assets [Abstract] | |
Summary of Other Assets | Other assets consisted of the following: March 31, 2021 December 31, 2020 Prepaid expenses $ 15,831 $ 16,652 Company owned life insurance 34,174 29,910 Property and equipment, net 13,786 14,773 Right-of-use assets 83,222 87,508 Real estate owned 1,196 1,354 Trading securities 91 78 Total other assets $ 148,300 $ 150,275 |
Summary of Property and Equipment | Property and equipment consisted of the following: March 31, 2021 December 31, 2020 Computer equipment $ 22,980 $ 22,946 Furniture and equipment 18,344 18,301 Leasehold improvements 12,153 12,307 Internal-use software in production 1,656 1,716 Internal-use software 6,258 5,639 Property and equipment, gross 61,391 60,909 Accumulated depreciation (47,605) (46,136) Property and equipment, net $ 13,786 $ 14,773 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Unrealized Hedging Gains | Net unrealized hedging gains were as follows: Three Months Ended March 31, 2021 2020 Unrealized hedging gains $ 43,001 $ 30,290 |
Schedule of Notional and Fair Value of Derivative Financial Instruments Not Designated as Hedging Instruments | The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows at March 31, 2021 and December 31, 2020: Fair Value Notional Derivative Derivative Balance at March 31, 2021 IRLCs $ 4,021,335 $ 38,009 $ — Forward commitments $ 4,396,480 $ 97,060 $ — Balance at December 31, 2020 IRLCs $ 5,151,179 $ 130,338 $ — Forward commitments $ 5,480,491 $ — $ 38,270 |
Schedule of Quantitative Information About IRLCs and Fair Value Measurements | The following table presents the quantitative information about IRLCs and the fair value measurements: March 31, 2021 December 31, 2020 Unobservable Input Range (Weighted Average) Loan funding probability (“pull-through”) 0% -100% (92.2%) 0% - 100% (87.8%) |
Schedule of Financial Liabilities that are Subject to Master Netting Arrangements or Similar Agreements Categorized by Financial Instrument | The table below represents financial liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged. Gross Gross Net March 31, 2021 Forward delivery commitments $ 100,931 $ (1,256) $ 99,675 Best efforts sales commitments (2,615) — (2,615) Total assets $ 98,316 $ (1,256) $ 97,060 December 31, 2020 Forward delivery commitments $ (54,419) $ 4,825 $ (49,594) Best efforts sales commitments (3,656) — (3,656) Margin calls 14,980 — 14,980 Total liabilities $ (43,095) $ 4,825 $ (38,270) |
Schedule of Financial Assets that are Subject to Master Netting Arrangements or Similar Agreements Categorized by Financial Instrument | The table below represents financial liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged. Gross Gross Net March 31, 2021 Forward delivery commitments $ 100,931 $ (1,256) $ 99,675 Best efforts sales commitments (2,615) — (2,615) Total assets $ 98,316 $ (1,256) $ 97,060 December 31, 2020 Forward delivery commitments $ (54,419) $ 4,825 $ (49,594) Best efforts sales commitments (3,656) — (3,656) Margin calls 14,980 — 14,980 Total liabilities $ (43,095) $ 4,825 $ (38,270) |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Summary of Activity of Mortgage Servicing Rights | The activity of mortgage servicing rights was as follows: Three Months Ended March 31, 2021 2020 Balance — beginning of period $ 446,998 $ 418,402 MSRs originated 103,976 42,461 Changes in fair value: Due to collection/realization of cash flows (44,862) (22,510) Due to changes in valuation model inputs or assumptions 80,605 (86,139) Balance — end of period $ 586,717 $ 352,214 |
Summary of Weighted Average Discount Rate, Prepayment Speed and Cost to Service Assumptions Used to Determine Fair Value of MSRs | The following table presents the weighted average discount rate, prepayment speed and cost to service assumptions used to determine the fair value of MSRs: March 31, 2021 December 31, 2020 Unobservable Input Range (Weighted Average) Discount rate 9.2% - 15.5% (10.0%) 9.2% - 15.5% (10.0%) Prepayment rate 9.0% - 28.1% (13.1%) 10.0% - 38.8% (18.2%) Cost to service (per loan) $71.8 - $261.3 ($91.6) $71.0 - $409.4 ($92.5) |
Summary of Actual Revenue Generated from Servicing Activities | Actual revenue generated from servicing activities included contractually specified servicing fees, as well as late fees and other ancillary servicing revenue, which were recorded within loan servicing and other fees as follows for the periods ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Servicing fees from servicing portfolio $ 43,856 $ 37,076 Late fees 1,069 1,701 Other ancillary servicing revenue (expense) 274 (245) Total loan servicing and other fees $ 45,199 $ 38,532 |
Summary of Impact of Adverse Changes on Prepayment Speeds, Discount Rate and Cost to Service at Two Different Data Points | The following table illustrates the impact of adverse changes on the prepayment speeds, discount rate and cost to service at two different data points at March 31, 2021 and December 31, 2020, respectively: Prepayment Speeds Discount Rate Cost to Service (per loan) 10% Adverse 20% Adverse 10% Adverse 20% Adverse 10% Adverse 20% Adverse March 31, 2021 Mortgage servicing rights $ (38,692) $ (71,688) $ (25,906) $ (45,594) $ (12,565) $ (20,447) December 31, 2020 Mortgage servicing rights $ (36,117) $ (66,419) $ (18,638) $ (32,312) $ (10,334) $ (16,700) |
Mortgage Loans Held for Sale (T
Mortgage Loans Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Mortgage Loans Held For Sale [Abstract] | |
Summary of Reconciliation of Changes in Mortgage Loans Held for Sale to Amounts Presented in Condensed Consolidated Statements of Cash Flows | A reconciliation of the changes in mortgage loans held for sale to the amounts presented in the Condensed Consolidated Statements of Cash Flows is set forth below: Three Months Ended March 31, 2021 2020 Balance at the beginning of period $ 2,368,777 $ 1,504,842 Origination of mortgage loans held for sale 9,815,270 5,620,167 Proceeds on sale of payments from mortgage loans held for sale (10,131,643) (5,561,492) Gain on sale of mortgage loans excluding fair value of other financial instruments, net 355,157 170,948 Valuation adjustment of mortgage loans held for sale (61,634) 31,025 Balance at the end of period $ 2,345,927 $ 1,765,490 |
Investor Reserves (Tables)
Investor Reserves (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investor Reserves [Abstract] | |
Schedule of Activity of Investor Reserves | The activity of the investor reserves was as follows: Three Months Ended March 31, 2021 2020 Balance — beginning of period $ 14,535 $ 16,521 Benefit from investor reserves (2,006) (768) Provision for investor reserves charged to operations 2,348 2,151 Balance — end of period $ 14,877 $ 17,904 |
Warehouse Lines of Credit (Tabl
Warehouse Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Line of Credit Facility [Abstract] | |
Summary of Warehouse Lines of Credit | Warehouse lines of credit consisted of the following at March 31, 2021 and December 31, 2020. Changes subsequent to March 31, 2021 have been described in the notes referenced with the below table. Maturity as of March 31, March 31, 2021 December 31, 2020 $800 million master repurchase facility agreement (1) January 2022 $ 353,809 $ 442,593 $250 million master repurchase facility agreement (2) September 2021 169,473 148,011 $500 million master repurchase facility agreement (3) February 2022 424,687 541,074 $200 million master repurchase facility agreement (4) May 2021 171,491 187,214 $300 million master repurchase facility agreement (5) September 2021 223,600 232,272 $500 million master repurchase facility agreement (6) July 2021 417,250 464,355 $200 million master repurchase facility agreement (7) April 2021 136,116 104,880 $250 million master repurchase facility agreement (8) N/A 154,616 — $75 million master repurchase facility agreement (9) March 2024 22,439 25,185 2,073,481 2,145,584 Prepaid commitment fees (2,148) (2,141) Net warehouse lines of credit $ 2,071,333 $ 2,143,443 ______________________________ (1) The variable interest rate is calculated using a base rate tied to LIBOR, the Eurodollar, or an alternative base rate with a floor of 0.75%, plus the applicable interest rate margin. (2) The variable interest rate is calculated using a base rate tied to LIBOR, plus the applicable interest rate margin. This line of credit requires a minimum deposit of $1.25 million. (3) The variable interest rate is calculated using a base rate tied to LIBOR, plus the applicable interest rate margin. In February 2021 this facility was reduced to $500.0 million and requires a minimum deposit to $2.5 million. (4) The variable interest rate is calculated using a base rate plus LIBOR, with a floor of 1.525% plus the applicable interest rate margin. This line of credit requires a minimum deposit of $750,000. Subsequent to March 31, 2021, this facility was amended with a maturity date of June 2021. (5) The variable interest rate is calculated using a base rate tied to LIBOR with a floor of 0.40%, plus the applicable interest rate margin. (6) The variable interest rate is calculated using a base rate tied to LIBOR with a floor of 0.75%, plus the applicable interest rate margin. (7) The variable interest rate is calculated using a base rate tied to LIBOR with a floor of 1.75%, plus the applicable interest rate margin. Subsequent to March 31, 2021, this facility was amended with a maturity date of June 2021. (8) This facility agreement was effective January 2021. The variable interest rate is calculated using a base rate tied to LIBOR, plus the applicable interest rate margin. This facility’s maturity date is 30 days from written notice by either the financial institution or the Company. (9) The interest rate on this facility is 3.375%. This facility was opened in 2020 and is used for GNMA delinquent buyouts. Each buyout represents a separate transaction that can remain on the facility for up to 4 years. Subsequent to March 31, 2021, the Company completed a buyout extending the maturity to March 2025. |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Minimum Calendar Year Payments of Term Note | The minimum calendar year payments of the Company’s term note as of March 31, 2021 are as follows: 2022 $ 15,000 2023 20,000 2024 65,000 Total $ 100,000 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings Per Share | The following table sets forth the components of basic and diluted earnings per share: Three Months Ended March 31, 2021 Net income available for Class A and Class B Common Stock $ 160,604 Weighted-average shares outstanding, Class A Common Stock 19,667 Weighted-average shares outstanding, Class B Common Stock 40,333 Weighted-average shares outstanding - basic 60,000 Add dilutive effects of non-vested shares of restricted stock - Class A 211 Weighted-average shares outstanding - diluted 60,211 Basic earnings per share: Class A and Class B Common Stock $ 2.68 Diluted earnings per share: Class A and Class B Common Stock $ 2.67 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Performance and Results by Segment | The following table presents the financial performance and results by segment for the three months ended March 31, 2021: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 444,797 $ 1,792 $ 446,589 $ — $ 446,589 Loan servicing and other fees — 45,199 45,199 — 45,199 Valuation adjustment of mortgage servicing rights — 35,743 35,743 — 35,743 Interest income (expense) 2,846 (2,861) (15) (1,398) (1,413) Other income, net — 22 22 47 69 Net revenue 447,643 79,895 527,538 (1,351) 526,187 Expenses Salaries, incentive compensation and benefits 250,815 7,213 258,028 8,696 266,724 General and administrative 22,638 1,856 24,494 2,412 26,906 Occupancy, equipment and communication 13,173 1,108 14,281 551 14,832 Depreciation and amortization 893 190 1,083 571 1,654 Provision for foreclosure losses — 2,462 2,462 — 2,462 Income tax expense — — — 53,005 53,005 Net income (loss) $ 160,124 $ 67,066 $ 227,190 $ (66,586) $ 160,604 The following table presents the financial performance and results by segment for the three months ended March 31, 2020: Origination Servicing Total All Other Total Revenue Loan origination fees and gain on sale of loans, net $ 238,802 $ 1,059 $ 239,861 $ — $ 239,861 Loan servicing and other fees — 38,532 38,532 — 38,532 Valuation adjustment of mortgage servicing rights — (108,649) (108,649) — (108,649) Interest income (expense) 2,220 37 2,257 (2,190) 67 Other income, net 5 1 6 383 389 Net revenue 241,027 (69,020) 172,007 (1,807) 170,200 Expenses Salaries, incentive compensation and benefits 140,006 5,686 145,692 2,321 148,013 General and administrative 19,524 1,756 21,280 945 22,225 Occupancy, equipment and communication 11,379 803 12,182 1,136 13,318 Depreciation and amortization 1,285 156 1,441 446 1,887 Provision for foreclosure losses — 1,924 1,924 — 1,924 Income tax benefit — — — (4,181) (4,181) Net income (loss) $ 68,833 $ (79,345) $ (10,512) $ (2,474) $ (12,986) |
Business, Basis of Presentati_3
Business, Basis of Presentation, and Accounting Policies - Additional Information (Details) $ in Billions | 3 Months Ended | |
Mar. 31, 2021USD ($)subsidiary | Dec. 31, 2020USD ($) | |
Accounting Policies [Abstract] | ||
Number of wholly owned subsidiaries | subsidiary | 1 | |
Account balance in trust for investors and escrow balances for mortgagors | $ | $ 1.7 | $ 1.7 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Level 3 | Mar. 31, 2021 | Dec. 31, 2020 |
Recurring Fair Value Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan funding probability (“pull-through”) | 92.20% | 87.80% |
Minimum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.080 | 0.080 |
Maximum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.200 | 0.200 |
Median | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of risk adjusted discount rate | 0.150 | 0.150 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||||
Trading securities | $ 91 | $ 78 | ||
Derivative | ||||
Derivative asset | 135,069 | 130,338 | ||
Mortgage loans held for sale | 2,345,927 | 2,368,777 | $ 1,765,490 | $ 1,504,842 |
Mortgage servicing rights | 586,717 | 446,998 | ||
Derivative | ||||
Derivative liability | 0 | 38,270 | ||
Contingent liabilities due to acquisitions | 16,568 | 18,094 | ||
Forward delivery commitments | ||||
Derivative | ||||
Derivative asset | 99,675 | |||
Derivative | ||||
Derivative liability | 49,594 | |||
Recurring Fair Value Measurements | ||||
Assets: | ||||
Trading securities | 91 | 78 | ||
Derivative | ||||
Mortgage loans held for sale | 2,345,927 | 2,368,777 | ||
Mortgage servicing rights | 586,717 | 446,998 | ||
Total assets at fair value | 3,067,804 | 2,946,191 | ||
Derivative | ||||
Contingent liabilities due to acquisitions | 16,568 | 18,094 | ||
Total liabilities at fair value | 16,568 | 56,364 | ||
Recurring Fair Value Measurements | Forward delivery commitments | ||||
Derivative | ||||
Derivative asset | 97,060 | |||
Derivative | ||||
Derivative liability | 38,270 | |||
Recurring Fair Value Measurements | Interest rate lock commitments | ||||
Derivative | ||||
Derivative asset | 38,009 | 130,338 | ||
Recurring Fair Value Measurements | Level 1 | ||||
Assets: | ||||
Trading securities | 91 | 78 | ||
Derivative | ||||
Mortgage loans held for sale | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Total assets at fair value | 91 | 78 | ||
Derivative | ||||
Contingent liabilities due to acquisitions | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Recurring Fair Value Measurements | Level 1 | Forward delivery commitments | ||||
Derivative | ||||
Derivative asset | 0 | |||
Derivative | ||||
Derivative liability | 0 | |||
Recurring Fair Value Measurements | Level 1 | Interest rate lock commitments | ||||
Derivative | ||||
Derivative asset | 0 | 0 | ||
Recurring Fair Value Measurements | Level 2 | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Derivative | ||||
Mortgage loans held for sale | 2,345,927 | 2,368,777 | ||
Mortgage servicing rights | 0 | 0 | ||
Total assets at fair value | 2,442,987 | 2,368,777 | ||
Derivative | ||||
Contingent liabilities due to acquisitions | 0 | 0 | ||
Total liabilities at fair value | 0 | 38,270 | ||
Recurring Fair Value Measurements | Level 2 | Forward delivery commitments | ||||
Derivative | ||||
Derivative asset | 97,060 | |||
Derivative | ||||
Derivative liability | 38,270 | |||
Recurring Fair Value Measurements | Level 2 | Interest rate lock commitments | ||||
Derivative | ||||
Derivative asset | 0 | 0 | ||
Recurring Fair Value Measurements | Level 3 | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Derivative | ||||
Mortgage loans held for sale | 0 | 0 | ||
Mortgage servicing rights | 586,717 | 446,998 | ||
Total assets at fair value | 624,726 | 577,336 | ||
Derivative | ||||
Contingent liabilities due to acquisitions | 16,568 | 18,094 | ||
Total liabilities at fair value | 16,568 | 18,094 | ||
Recurring Fair Value Measurements | Level 3 | Forward delivery commitments | ||||
Derivative | ||||
Derivative asset | 0 | |||
Derivative | ||||
Derivative liability | 0 | |||
Recurring Fair Value Measurements | Level 3 | Interest rate lock commitments | ||||
Derivative | ||||
Derivative asset | $ 38,009 | $ 130,338 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Reconciliation of Level Three Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
IRLCs | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 130,338 | $ 19,922 |
Net transfers and revaluation gains | (92,329) | 81,333 |
Ending balance | 38,009 | 101,255 |
Contingent Liabilities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 18,094 | 8,073 |
Payments | (8,146) | (2,405) |
Valuation adjustments | 6,620 | 9,007 |
Ending balance | $ 16,568 | $ 14,675 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-Recurring Fair Value Measurements - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Ginnie Mae loans subject to repurchase right | $ 1,240,882 | $ 1,275,842 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 1,241,726 | 1,277,026 |
Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 1,240,882 | 1,275,842 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 1,241,726 | 1,277,026 |
Level 1 | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Level 1 | Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Level 2 | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 1,240,882 | 1,275,842 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 1,241,726 | 1,277,026 |
Level 2 | Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 1,240,882 | 1,275,842 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 1,241,726 | 1,277,026 |
Level 3 | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Level 3 | Ginnie Mae | ||
Assets: | ||
Ginnie Mae loans subject to repurchase right | 0 | 0 |
Liabilities: | ||
Ginnie Mae loans subject to repurchase right | $ 0 | $ 0 |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Fair Value Option for Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||||
Fair Value | $ 2,345,927 | $ 2,368,777 | $ 1,765,490 | $ 1,504,842 |
Principal Amount Due Upon Maturity | 2,332,662 | 2,293,895 | ||
Difference | $ 13,265 | $ 74,882 |
Accounts and Interest Receiva_3
Accounts and Interest Receivable - Schedule of Accounts and Interest Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Trust advances | $ 34,268 | $ 36,241 |
Foreclosure advances, net | 3,379 | 2,894 |
Receivables related to loan sales | 1,620 | 2,707 |
Other | (1,040) | 1,548 |
Total accounts and interest receivable | $ 38,227 | $ 43,390 |
Accounts and Interest Receiva_4
Accounts and Interest Receivable - Schedule of Activity of the Foreclosure Loss Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Foreclosure Loss Reserve [Abstract] | ||
Balance — beginning of year | $ 12,402 | $ 7,869 |
Foreclosure loss reserve | (1,514) | (800) |
Provision charged to operations | 2,462 | 1,924 |
Balance — end of year | $ 13,350 | $ 8,993 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other Assets [Abstract] | ||
Prepaid expenses | $ 15,831 | $ 16,652 |
Company owned life insurance | 34,174 | 29,910 |
Property and equipment, net | 13,786 | 14,773 |
Right-of-use assets | 83,222 | 87,508 |
Real estate owned | 1,196 | 1,354 |
Trading securities | 91 | 78 |
Total other assets | $ 148,300 | $ 150,275 |
Other Assets - Summary of Prope
Other Assets - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 61,391 | $ 60,909 |
Accumulated depreciation | (47,605) | (46,136) |
Property and equipment, net | 13,786 | 14,773 |
Computer equipment | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,980 | 22,946 |
Furniture and equipment | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,344 | 18,301 |
Leasehold improvements | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,153 | 12,307 |
Internal-use software in production | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,656 | 1,716 |
Internal-use software | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,258 | $ 5,639 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 1,654 | $ 1,887 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Net Unrealized Hedging Gains (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized hedging gains | $ 43,001 | $ 30,290 |
Not Designated as Hedging Instruments | Loan Origination Fees and Gain on Sale of Loans, Net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized hedging gains | $ 43,001 | $ 30,290 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Notional and Fair Value of Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instruments - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
IRLCs | ||
Derivative [Line Items] | ||
Notional Value | $ 4,021,335 | $ 5,151,179 |
Derivative Asset | 38,009 | 130,338 |
Derivative Liability | 0 | 0 |
Forward Commitments | ||
Derivative [Line Items] | ||
Notional Value | 4,396,480 | 5,480,491 |
Derivative Asset | 97,060 | 0 |
Derivative Liability | $ 0 | $ 38,270 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Outstanding forward contracts and mandatory sell commitments | $ 1,100,000,000 | $ 895,200,000 | |
Closed hedge instruments not yet settled | 1,400,000,000 | $ 908,000,000 | |
Credit losses due to nonperformance of counterparties | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Quantitative Information About IRLCs and Fair Value Measurements (Details) - IRLCs | Mar. 31, 2021 | Dec. 31, 2020 |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 0.00% | 0.00% |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 100.00% | 100.00% |
Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan funding probability (“pull-through”) | 92.20% | 87.80% |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Financial Liabilities are Subject to Master Netting Arrangements or Similar Agreements Categorized by Financial Instrument (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Gross Amounts of Recognized Assets (Liabilities) | ||
Total assets (liabilities) | $ 98,316 | $ (43,095) |
Gross Amounts Offset in the Balance Sheet | ||
Total assets (liabilities) | (1,256) | 4,825 |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative asset | 135,069 | 130,338 |
Derivative liability | 0 | (38,270) |
Total assets (liabilities) | 97,060 | (38,270) |
Forward delivery commitments | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative asset | 100,931 | |
Derivative liability | (54,419) | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative asset | (1,256) | |
Derivative liability | 4,825 | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative asset | 99,675 | |
Derivative liability | (49,594) | |
Best efforts sales commitments | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative liability | (2,615) | (3,656) |
Gross Amounts Offset in the Balance Sheet | ||
Derivative liability | 0 | 0 |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative liability | $ (2,615) | (3,656) |
Margin calls | ||
Gross Amounts of Recognized Assets (Liabilities) | ||
Derivative asset | 14,980 | |
Gross Amounts Offset in the Balance Sheet | ||
Derivative asset | 0 | |
Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet | ||
Derivative asset | $ 14,980 |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Activity of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance — beginning of period | $ 446,998 | $ 418,402 |
MSRs originated | 103,976 | 42,461 |
Changes in fair value: | ||
Due to collection/realization of cash flows | (44,862) | (22,510) |
Due to changes in valuation model inputs or assumptions | 80,605 | (86,139) |
Balance — end of period | $ 586,717 | $ 352,214 |
Mortgage Servicing Rights - S_2
Mortgage Servicing Rights - Summary of the Weighted Average Discount Rate, Prepayment Speed and Cost to Service Assumptions Used to Determine the Fair Value of MSRs (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Minimum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Discount rate | 9.20% | 9.20% |
Prepayment rate | 9.00% | 10.00% |
Cost to service (per loan) | $ 71.8 | $ 71 |
Maximum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Discount rate | 15.50% | 15.50% |
Prepayment rate | 28.10% | 38.80% |
Cost to service (per loan) | $ 261.3 | $ 409.4 |
Weighted Average | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Discount rate | 10.00% | 10.00% |
Prepayment rate | 13.10% | 18.20% |
Cost to service (per loan) | $ 91.6 | $ 92.5 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Billions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | ||
Mortgage servicing right weighted average life | 6 years 1 month 6 days | 5 years 1 month 6 days |
Unpaid principal balance of mortgage loans serviced | $ 63.6 | $ 60.8 |
Mortgage Servicing Rights - S_3
Mortgage Servicing Rights - Summary of Actual Revenue Generated from Servicing Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | ||
Loan servicing and other fees | $ 43,856 | $ 37,076 |
Late fees | 1,069 | 1,701 |
Other ancillary servicing revenue (expense) | 274 | |
Other ancillary servicing revenue (expense) | (245) | |
Total loan servicing and other fees | $ 45,199 | $ 38,532 |
Mortgage Servicing Rights - S_4
Mortgage Servicing Rights - Summary of Impact of Adverse Changes on Prepayment Speeds, Discount Rate and Cost to Service at Two Different Data Points (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Transfers and Servicing [Abstract] | ||
Mortgage servicing rights, Prepayment Speeds, 10% Adverse Change | $ (38,692) | $ (36,117) |
Mortgage servicing rights, Prepayment Speeds, 20% Adverse Change | (71,688) | (66,419) |
Mortgage servicing rights, Discount Rates 10%, Adverse Change | (25,906) | (18,638) |
Mortgage servicing rights, Discount Rates 20%, Adverse Change | (45,594) | (32,312) |
Mortgage servicing rights, Cost to Service (per loan) 10%, Adverse Change | (12,565) | (10,334) |
Mortgage servicing rights, Cost to Service (per loan) 20%, Adverse Change | $ (20,447) | $ (16,700) |
Mortgage Loans Held for Sale -
Mortgage Loans Held for Sale - Summary of Reconciliation of Changes in Mortgage Loans Held for Sale to Amounts Presented in Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Mortgages Held For Sale [Roll Forward] | ||
Balance at the beginning of period | $ 2,368,777 | $ 1,504,842 |
Origination of mortgage loans held for sale | 9,815,270 | 5,620,167 |
Proceeds on sale of payments from mortgage loans held for sale | (10,131,643) | (5,561,492) |
Gain on sale of mortgage loans excluding fair value of other financial instruments, net | 355,157 | 170,948 |
Valuation adjustment of mortgage loans held for sale | (61,634) | 31,025 |
Balance at the end of period | $ 2,345,927 | $ 1,765,490 |
Mortgage Loans Held for Sale _2
Mortgage Loans Held for Sale - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Mortgage Loans Held For Sale [Abstract] | ||||
Mortgage loans held for sale including unpaid principal balances of underlying loans | $ 2,300,000 | $ 2,300,000 | ||
Mortgage loans held for sale | $ 2,345,927 | $ 2,368,777 | $ 1,765,490 | $ 1,504,842 |
Investor Reserves (Details)
Investor Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investor Reserves [Roll Forward] | ||
Balance — beginning of year | $ 14,535 | $ 16,521 |
Benefit from investor reserves | (2,006) | (768) |
Provision for investor reserves charged to operations | 2,348 | 2,151 |
Balance — end of year | $ 14,877 | $ 17,904 |
Warehouse Lines of Credit - Sum
Warehouse Lines of Credit - Summary of Warehouse Lines of Credit (Details) - Warehouse Agreement Borrowings - Line of Credit - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Warehouse Lines of Credit [Line Items] | |||
Warehouse lines of credit | $ 2,073,481,000 | $ 2,145,584,000 | |
Prepaid commitment fees | (2,148,000) | (2,141,000) | |
Total | 2,071,333,000 | 2,143,443,000 | |
$800 Million Master Repurchase Facility Agreement Due January 2022 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | 800,000,000 | ||
Warehouse lines of credit | $ 353,809,000 | 442,593,000 | |
Line of credit, floor interest rate | 0.75% | ||
$250 Million Master Repurchase Facility Agreement Due September 2021 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 250,000,000 | ||
Warehouse lines of credit | 169,473,000 | 148,011,000 | |
Minimum deposit required for line of credit | 1,250,000 | ||
$500 Million Master Repurchase Facility Agreement Due February 2022 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 500,000,000 | 500,000,000 | |
Warehouse lines of credit | 424,687,000 | 541,074,000 | |
Minimum deposit required for line of credit | $ 2,500,000 | ||
$200 Million Master Repurchase Facility Agreement Due May 2021 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | 200,000,000 | ||
Warehouse lines of credit | 171,491,000 | 187,214,000 | |
Minimum deposit required for line of credit | $ 750,000 | ||
$200 Million Master Repurchase Facility Agreement Due May 2021 | LIBOR | |||
Warehouse Lines of Credit [Line Items] | |||
Line of credit, floor interest rate | 1.525% | ||
$300 Million Master Repurchase Facility Agreement Due September 2021 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 300,000,000 | ||
Warehouse lines of credit | $ 223,600,000 | 232,272,000 | |
$300 Million Master Repurchase Facility Agreement Due September 2021 | LIBOR | |||
Warehouse Lines of Credit [Line Items] | |||
Line of credit, floor interest rate | 0.40% | ||
$500 Million Master Repurchase Facility Agreement Due July 2021 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 500,000,000 | ||
Warehouse lines of credit | $ 417,250,000 | 464,355,000 | |
$500 Million Master Repurchase Facility Agreement Due July 2021 | LIBOR | |||
Warehouse Lines of Credit [Line Items] | |||
Line of credit, floor interest rate | 0.75% | ||
$200 Million Master Repurchase Facility Agreement Due April 2021 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 200,000,000 | ||
Warehouse lines of credit | $ 136,116,000 | 104,880,000 | |
Line of credit, floor interest rate | 1.75% | ||
$250 Million Master Repurchase Facility Agreement Due 30 Days From Written Notice | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 250,000,000 | ||
Warehouse lines of credit | $ 154,616,000 | 0 | |
Maturity, period from written notice | 30 days | ||
$75 Million Master Repurchase Facility Agreement Due March 2024 | |||
Warehouse Lines of Credit [Line Items] | |||
Borrowing capacity | $ 75,000,000 | ||
Warehouse lines of credit | $ 22,439,000 | $ 25,185,000 | |
Stated interest rate | 3.375% | ||
Maximum term of buyout transactions on facility | 4 years |
Warehouse Lines of Credit - Add
Warehouse Lines of Credit - Additional Information (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Warehouse Lines of Credit [Line Items] | ||
Warehouse lines of credit | $ 2,071,333,000 | $ 2,143,443,000 |
Line of Credit | ||
Warehouse Lines of Credit [Line Items] | ||
Warehouse lines of credit | $ 0 | $ 0 |
Warehouse Agreement Borrowings | Line of Credit | ||
Warehouse Lines of Credit [Line Items] | ||
Weighted average interest rate | 2.44% | 2.52% |
Cash balances | $ 131,100,000 | $ 15,600,000 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Details) - USD ($) | 1 Months Ended | ||||||||
Mar. 31, 2021 | Jul. 31, 2020 | Jan. 31, 2014 | Mar. 01, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jul. 31, 2018 | Jul. 31, 2017 | |
Term Note | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused facility fee percentage | 0.375% | ||||||||
Line of credit facility, maximum borrowing capacity | $ 175,000,000 | ||||||||
Maximum amount of committed to increase | $ 76,500,000 | ||||||||
Outstanding borrowings | $ 100,000,000 | $ 76,500,000 | $ 80,800,000 | ||||||
Periodic payment, principal, percentage of outstanding balance | 5.00% | ||||||||
New Term Note | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount of committed to increase | $ 125,000,000 | ||||||||
Federal Funds Rate | Term Note | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument variable rate | 0.50% | ||||||||
Eurodollar Base Rate | Term Note | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument variable rate | 1.00% | ||||||||
Government National Mortgage Association | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused facility fee percentage | 70.00% | ||||||||
Line of credit facility, maximum borrowing capacity | $ 135,000,000 | ||||||||
Maximum amount of committed to increase | $ 200,000,000 | ||||||||
Outstanding borrowings | $ 45,000,000 | 45,000,000 | |||||||
Government National Mortgage Association | LIBOR | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, floor interest rate | 4.50% | ||||||||
Federal Home Loan Mortgage Corporation | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused facility fee percentage | 50.00% | ||||||||
Line of credit facility, maximum borrowing capacity | $ 65,000,000 | $ 50,000,000 | $ 25,000,000 | ||||||
Outstanding borrowings | $ 20,000,000 | $ 20,000,000 | |||||||
Federal Home Loan Mortgage Corporation | LIBOR | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, floor interest rate | 0.75% |
Notes Payable - Summary of Mini
Notes Payable - Summary of Minimum Calendar Year Payments of Term Note (Details) - Term Note $ in Thousands | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 15,000 |
2023 | 20,000 |
2024 | 65,000 |
Total | $ 100,000 |
Earnings Per Share - Components
Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income available for Class A and Class B Common Stock | $ 160,604 | $ (12,986) |
Weighted-average shares outstanding - basic (in shares) | 60,000 | |
Weighted-average shares outstanding - diluted (in shares) | 60,211 | |
Basic earnings per share: | ||
Class A and Class B Common Stock (in dollars per share) | $ 2.68 | |
Diluted earnings per share: | ||
Class A and Class B Common Stock (in dollars per share) | $ 2.67 | |
Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average shares outstanding - basic (in shares) | 19,667 | |
Add dilutive effects of non-vested shares of restricted stock - Class A (in shares) | 211 | |
Class B Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average shares outstanding - basic (in shares) | 40,333 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021voteclassshares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Number of shares excluded from calculation of earnings per share | shares | 0 |
Number of classes of stock | class | 2 |
Restricted Stock Units | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Right to receive common stock, upon vesting | 1 |
Class A Common Stock | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Common stock, voting rights, votes per share | 1 |
Class B Common Stock | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Common stock, voting rights, votes per share | 10 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - Restricted Stock Units $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Stock Based Compensation And Employee Benefit Plans [Line Items] | |
Compensation costs recognized | $ 1.6 |
Unrecognized compensation costs | $ 18.9 |
Restricted stock grants expected to recognition period | 3 years 4 months 24 days |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Billions | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Total commitments to originate loans | $ 4 | $ 5.2 |
Total commitments related to derivatives | $ 4.4 | $ 5.5 |
Minimum Net Worth Requirements
Minimum Net Worth Requirements - Additional Information (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Mortgage Banking [Abstract] | |
Minimum adjusted net worth balance required | $ 78,064 |
Segments - Additional Informati
Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021statesegmentloan | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 2 |
Servicing | |
Segment Reporting Information [Line Items] | |
Number of states in which entity operates | state | 47 |
Minimum | Servicing | |
Segment Reporting Information [Line Items] | |
Number of loans serviced | loan | 1 |
Segments - Summary of Financial
Segments - Summary of Financial Performance and Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | ||
Loan origination fees and gain on sale of loans, net | $ 446,589 | $ 239,861 |
Loan servicing and other fees | 45,199 | 38,532 |
Valuation adjustment of mortgage servicing rights | 35,743 | (108,649) |
Interest income (expense) | (1,413) | 67 |
Other income, net | 69 | 389 |
Net revenue | 526,187 | 170,200 |
Expenses | ||
Salaries, incentive compensation and benefits | 266,724 | 148,013 |
General and administrative | 26,906 | 22,225 |
Occupancy, equipment and communication | 14,832 | 13,318 |
Depreciation and amortization | 1,654 | 1,887 |
Provision for foreclosure losses | 2,462 | 1,924 |
Income tax expense (benefit) | 53,005 | (4,181) |
Net income (loss) | 160,604 | (12,986) |
Operating Segments | ||
Revenue | ||
Loan origination fees and gain on sale of loans, net | 446,589 | 239,861 |
Loan servicing and other fees | 45,199 | 38,532 |
Valuation adjustment of mortgage servicing rights | 35,743 | (108,649) |
Interest income (expense) | (15) | 2,257 |
Other income, net | 22 | 6 |
Net revenue | 527,538 | 172,007 |
Expenses | ||
Salaries, incentive compensation and benefits | 258,028 | 145,692 |
General and administrative | 24,494 | 21,280 |
Occupancy, equipment and communication | 14,281 | 12,182 |
Depreciation and amortization | 1,083 | 1,441 |
Provision for foreclosure losses | 2,462 | 1,924 |
Income tax expense (benefit) | 0 | 0 |
Net income (loss) | 227,190 | (10,512) |
Corporate, Non-Segment | ||
Revenue | ||
Loan origination fees and gain on sale of loans, net | 0 | 0 |
Loan servicing and other fees | 0 | 0 |
Valuation adjustment of mortgage servicing rights | 0 | 0 |
Interest income (expense) | (1,398) | (2,190) |
Other income, net | 47 | 383 |
Net revenue | (1,351) | (1,807) |
Expenses | ||
Salaries, incentive compensation and benefits | 8,696 | 2,321 |
General and administrative | 2,412 | 945 |
Occupancy, equipment and communication | 551 | 1,136 |
Depreciation and amortization | 571 | 446 |
Provision for foreclosure losses | 0 | 0 |
Income tax expense (benefit) | 53,005 | (4,181) |
Net income (loss) | (66,586) | (2,474) |
Origination | Operating Segments | ||
Revenue | ||
Loan origination fees and gain on sale of loans, net | 444,797 | 238,802 |
Loan servicing and other fees | 0 | 0 |
Valuation adjustment of mortgage servicing rights | 0 | 0 |
Interest income (expense) | 2,846 | 2,220 |
Other income, net | 0 | 5 |
Net revenue | 447,643 | 241,027 |
Expenses | ||
Salaries, incentive compensation and benefits | 250,815 | 140,006 |
General and administrative | 22,638 | 19,524 |
Occupancy, equipment and communication | 13,173 | 11,379 |
Depreciation and amortization | 893 | 1,285 |
Provision for foreclosure losses | 0 | 0 |
Income tax expense (benefit) | 0 | 0 |
Net income (loss) | 160,124 | 68,833 |
Servicing | Operating Segments | ||
Revenue | ||
Loan origination fees and gain on sale of loans, net | 1,792 | 1,059 |
Loan servicing and other fees | 45,199 | 38,532 |
Valuation adjustment of mortgage servicing rights | 35,743 | (108,649) |
Interest income (expense) | (2,861) | 37 |
Other income, net | 22 | 1 |
Net revenue | 79,895 | (69,020) |
Expenses | ||
Salaries, incentive compensation and benefits | 7,213 | 5,686 |
General and administrative | 1,856 | 1,756 |
Occupancy, equipment and communication | 1,108 | 803 |
Depreciation and amortization | 190 | 156 |
Provision for foreclosure losses | 2,462 | 1,924 |
Income tax expense (benefit) | 0 | 0 |
Net income (loss) | $ 67,066 | $ (79,345) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | May 10, 2021 | May 06, 2021 | Mar. 31, 2020 |
Subsequent Event [Line Items] | |||
Common stock dividends declared (in dollars per share) | $ 10,772 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock dividends declared (in dollars per share) | $ 1 | ||
Subsequent Event | RMS | |||
Subsequent Event [Line Items] | |||
Purchase price | $ 196.7 |
Uncategorized Items - ghld-2021
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 4,511,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 7,198,000 |