Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 04, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40308 | |
Entity Registrant Name | FINANCE OF AMERICA COMPANIES INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-3474065 | |
Entity Address, Address Line One | 5830 Granite Parkway | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75024 | |
City Area Code | 877 | |
Local Phone Number | 202-2666 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Central Index Key | 0001828937 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | FOA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 87,389,809 | |
Warrants to Purchase | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase shares of Class A Common Stock | |
Trading Symbol | FOA.WS | |
Security Exchange Name | NYSE | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 69,313 | $ 61,149 |
Restricted cash | 228,302 | 179,764 |
Loans held for investment, subject to Home Equity Conversion Mortgage-Backed Securities ("HMBS") related obligations, at fair value | 16,623,561 | 11,114,100 |
Loans held for investment, subject to nonrecourse debt, at fair value | 8,374,827 | 7,454,638 |
Loans held for investment, at fair value | 736,968 | 907,998 |
Loans held for sale, at fair value | 77,494 | 173,984 |
Mortgage servicing rights ("MSR"), at fair value, $988 and $60,562 subject to nonrecourse MSR financing liability, respectively | 13,713 | 95,096 |
Fixed assets and leasehold improvements, net | 10,610 | 9,131 |
Intangible assets, net | 287,822 | 297,119 |
Other assets, net | 251,929 | 266,316 |
Assets of discontinued operations | 151,450 | 313,360 |
TOTAL ASSETS | 26,825,989 | 20,872,655 |
LIABILITIES AND EQUITY | ||
HMBS related obligations, at fair value | 16,407,629 | 10,996,755 |
Nonrecourse debt, at fair value | 8,032,552 | 7,343,177 |
Other financing lines of credit | 1,113,367 | 1,327,634 |
Payables and other liabilities | 306,717 | 173,732 |
Notes payable, net (includes amounts due to related parties of $56,580 and $46,790, respectively) | 408,990 | 399,402 |
Liabilities of discontinued operations | 66,302 | 227,114 |
TOTAL LIABILITIES | 26,335,557 | 20,467,814 |
Commitments and Contingencies (Note 20) | ||
EQUITY (Note 26) | ||
Additional paid-in capital | 926,910 | 888,488 |
Accumulated deficit | (631,241) | (634,295) |
Accumulated other comprehensive loss | (209) | (273) |
Noncontrolling interest | 194,963 | 150,915 |
TOTAL EQUITY | 490,432 | 404,841 |
TOTAL LIABILITIES AND EQUITY | 26,825,989 | 20,872,655 |
Class A Common Stock | ||
EQUITY (Note 26) | ||
Common stock, value | 9 | 6 |
Class B Common Stock | ||
EQUITY (Note 26) | ||
Common stock, value | $ 0 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition - Parenthetical - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Mortgage servicing rights, at fair value | $ 988 | $ 60,562 |
Working Capital Promissory Notes | ||
Amounts due to related parties | $ 56,580 | $ 46,790 |
Class A Common Stock | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 6,000,000,000 | 6,000,000,000 |
Common stock, shares issued (in shares) | 89,838,531 | 67,681,856 |
Common stock, shares outstanding (in shares) | 85,580,031 | 63,423,356 |
Class B Common Stock | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, shares issued (in shares) | 15 | 14 |
Common stock, shares outstanding (in shares) | 15 | 14 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Condition - Variable Interest Entities - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Restricted cash | $ 228,302 | $ 179,764 |
Loans held for investment, subject to nonrecourse debt, at fair value | 736,968 | 907,998 |
TOTAL ASSETS | 26,825,989 | 20,872,655 |
Nonrecourse debt, at fair value | 8,032,552 | 7,343,177 |
TOTAL LIABILITIES | 26,335,557 | 20,467,814 |
Variable Interest Entity, Primary Beneficiary | ||
Restricted cash | 183,210 | 173,714 |
Loans held for investment, subject to nonrecourse debt, at fair value | 7,953,455 | 7,340,528 |
Other assets, net | 87,369 | 75,977 |
TOTAL ASSETS | 8,224,034 | 7,590,219 |
Nonrecourse debt, at fair value | 7,632,482 | 7,175,857 |
Payables and other liabilities | 742 | 757 |
TOTAL LIABILITIES | 7,633,224 | 7,176,614 |
NET CARRYING VALUE OF ASSETS SUBJECT TO NONRECOURSE DEBT | $ 590,810 | $ 413,605 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
REVENUES | |||
Gain (loss) on sale and other income from loans held for sale, net | $ (12,426) | $ 6,221 | |
Net fair value gains on loans and related obligations | 176,394 | 6,960 | |
Fee income | 6,352 | 55,173 | |
Net interest expense: | |||
Interest income | 2,091 | 1,184 | |
Interest expense | (31,556) | (23,480) | |
Net interest expense | (29,465) | (22,296) | |
TOTAL REVENUES | 140,855 | 46,058 | |
EXPENSES | |||
Salaries, benefits, and related expenses | 40,814 | 59,099 | |
Occupancy, equipment rentals, and other office related expenses | 1,909 | 2,189 | |
General and administrative expenses | 41,054 | 46,115 | |
TOTAL EXPENSES | 83,777 | 107,403 | |
OTHER, NET | 936 | 2,984 | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 58,014 | (58,361) | |
Provision (benefit) for income taxes from continuing operations | 2,532 | (7,722) | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 55,482 | (50,639) | |
Net loss from discontinued operations | (40,890) | (13,356) | |
NET INCOME (LOSS) | [1] | 14,592 | (63,995) |
Net income (loss) attributable to noncontrolling interest from continuing operations | 36,755 | (41,203) | |
Net loss attributable to noncontrolling interest from discontinued operations | (25,217) | (14,299) | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO CONTROLLING INTEREST | 18,727 | (9,436) | |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO CONTROLLING INTEREST | (15,673) | 943 | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO CONTROLLING INTEREST | $ 3,054 | $ (8,493) | |
EARNINGS PER SHARE (Note 25) | |||
Basic weighted average shares outstanding (in shares) | 64,016,845 | 60,773,891 | |
Basic net income (loss) per share from continuing operations (in usd per share) | $ 0.29 | $ (0.16) | |
Basic net income (loss) per share (in usd per share) | $ 0.05 | $ (0.14) | |
Diluted weighted average shares outstanding (in shares) | 190,301,012 | 189,448,936 | |
Diluted net income (loss) per share from continuing operations (in usd per share) | $ 0.22 | $ (0.23) | |
Diluted net loss per share from continuing operations (in USD per share) | $ 0.07 | $ (0.30) | |
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 4 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | [1] | $ 14,592 | $ (63,995) |
COMPREHENSIVE INCOME ITEM: | |||
Impact of foreign currency translation adjustment | 64 | 11 | |
TOTAL COMPREHENSIVE INCOME (LOSS) | 14,656 | (63,984) | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 11,580 | (55,495) | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ 3,076 | $ (8,489) | |
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 4 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Stock Purchase Agreement Blackstone Investor and BL Investor | Common Stock Class A Common Stock | Common Stock Class A Common Stock Stock Purchase Agreement Blackstone Investor and BL Investor | Common Stock Class B Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Stock Purchase Agreement Blackstone Investor and BL Investor | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | |
Beginning balance (in shares) at Dec. 31, 2021 | 60,755,069 | 15 | 128,693,867 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 1,083,010 | $ 6 | $ 0 | $ 831,620 | $ (443,613) | $ (110) | $ 695,107 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (63,995) | [1] | (8,493) | $ (55,502) | |||||||
Equity-based compensation, net | 13,104 | 13,104 | |||||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) (in shares) | 49,696 | (49,696) | |||||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) | (25) | 230 | $ (255) | ||||||||
Settlement of LTIP RSUs, net (Note 26 - Equity) (in shares) | 10,804 | (10,804) | |||||||||
Settlement of long-term incentive plan ("LTIP") restricted stock units ("RSUs"), net (Note 26 - Equity) | (10) | 48 | $ (58) | ||||||||
Foreign currency translation adjustment | 11 | 11 | |||||||||
Ending balance (in shares) at Mar. 31, 2022 | 60,815,569 | 15 | 128,633,367 | ||||||||
Ending balance at Mar. 31, 2022 | 1,032,095 | $ 6 | $ 0 | 845,002 | (452,106) | (99) | $ 639,292 | ||||
Beginning balance (in shares) at Dec. 31, 2021 | 60,755,069 | 15 | 128,693,867 | ||||||||
Beginning balance at Dec. 31, 2021 | 1,083,010 | $ 6 | $ 0 | 831,620 | (443,613) | (110) | $ 695,107 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 715,500 | ||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 63,423,356 | 14 | 124,453,301 | ||||||||
Ending balance at Dec. 31, 2022 | 404,841 | $ 6 | $ 0 | 888,488 | (634,295) | (273) | $ 150,915 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 14,592 | [1] | 3,054 | $ 11,538 | |||||||
Equity-based compensation, net | 8,109 | 8,109 | |||||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) (in shares) | 3,601 | (3,601) | |||||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) | 0 | 4 | $ (4) | ||||||||
Settlement of LTIP RSUs, net (Note 26 - Equity) (in shares) | 582,698 | (582,698) | |||||||||
Settlement of long-term incentive plan ("LTIP") restricted stock units ("RSUs"), net (Note 26 - Equity) | 91 | $ 1 | 748 | $ (658) | |||||||
Foreign currency translation adjustment | 64 | 64 | |||||||||
Settlement of other RSUs (in shares) | 123,604 | ||||||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) (in shares) | (292,360) | ||||||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) | (437) | (437) | |||||||||
Issuance of shares (Note 24 - Related-Party Transactions and Note 26 - Equity) (in shares) | 21,739,132 | ||||||||||
Issuance of shares (Note 24 - Related-Party Transactions and Note 26 - Equity) | $ 30,000 | $ 2 | $ 29,998 | ||||||||
Issuance of units (Note 3 - Acquisitions and Note 26 - Equity) (in shares) | 1 | 19,692,990 | |||||||||
Issuance of units (Note 3 - Acquisitions and Note 26 - Equity) | 33,172 | $ 33,172 | |||||||||
Ending balance (in shares) at Mar. 31, 2023 | 85,580,031 | 15 | 143,559,992 | ||||||||
Ending balance at Mar. 31, 2023 | $ 490,432 | $ 9 | $ 0 | $ 926,910 | $ (631,241) | $ (209) | $ 194,963 | ||||
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 4 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||||
Operating Activities | ||||||
Net income (loss) | $ 14,592 | [1] | $ (63,995) | [1] | $ 715,500 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | [1] | 207,226 | 387,736 | |||
Net cash provided by operating activities | [1] | 221,818 | 323,741 | |||
Investing Activities | ||||||
Purchases and originations of loans held for investment | [1] | (875,292) | (1,848,155) | |||
Proceeds/payments received on loans held for investment | [1] | 407,024 | 614,074 | |||
Purchases and origination of loans held for investment, subject to nonrecourse debt | [1] | (26,981) | (30,342) | |||
Proceeds/payments on loans held for investment, subject to nonrecourse debt | [1] | 332,659 | 585,148 | |||
Proceeds on sale of MSR | [1] | 80,149 | 96,887 | |||
Acquisition of American Advisors Group net assets | [1] | (140,854) | 0 | |||
Acquisition of fixed assets | [1] | (1,923) | (4,176) | |||
Other investing activities, net | [1] | (1,539) | (13,541) | |||
Net cash used in investing activities | [1] | (226,757) | (600,105) | |||
Financing Activities | ||||||
Proceeds from issuance of HMBS related obligations | [1] | 293,669 | 948,682 | |||
Payments on HMBS related obligations | [1] | (384,618) | (737,327) | |||
Proceeds from issuance of nonrecourse debt | [1] | 662,101 | 1,114,665 | |||
Payments on nonrecourse debt | [1] | (208,909) | (812,572) | |||
Proceeds from other financing lines of credit | [1] | 1,335,415 | 7,434,937 | |||
Payments on other financing lines of credit | [1] | (1,677,418) | (7,592,623) | |||
Change in notes payable | [1] | 9,790 | 0 | |||
Other financing activities, net | [1] | (837) | (224) | |||
Net cash provided by financing activities | [1] | 59,193 | 355,538 | |||
Foreign currency translation adjustment | 64 | 11 | ||||
Net increase in cash and restricted cash | 54,318 | 79,185 | ||||
Cash and restricted cash, beginning of period | [1] | 277,436 | 463,641 | 463,641 | ||
Cash and restricted cash, end of period | [1] | 331,754 | 542,826 | $ 277,436 | ||
Supplementary Cash Flows Information | ||||||
Cash paid for interest | 72,110 | 55,142 | ||||
Cash paid for income taxes, net | 0 | 22 | ||||
Loans transferred to loans held for sale, at fair value, from loans held for investment, at fair value | 2,151 | 8,828 | ||||
Class A Common Stock | ||||||
Financing Activities | ||||||
Issuance of equity | [1] | $ 30,000 | $ 0 | |||
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 4 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Finance of America Companies Inc. ("FoA" or "Company") was incorporated in Delaware on October 9, 2020. FoA is a financial services holding company which, through its operating subsidiaries, is a modern retirement solutions platform that provides customers with access to an innovative range of retirement offerings centered on the home, including reverse mortgages and home improvement loans as well as home-sharing services. In addition, FoA offers capital markets and portfolio management capabilities to optimize distribution to investors. FoA has a controlling financial interest in Finance of America Equity Capital LLC ("FoA Equity"). FoA Equity owns all of the outstanding equity interests in Finance of America Funding LLC ("FOAF"). FOAF wholly owns Finance of America Holdings LLC ("FAH") and Incenter LLC ("Incenter" and collectively, with FoA Equity, FOAF, and FAH, known as "holding company subsidiaries"). The Company, through its FAH holding company subsidiary, operates two lending companies, Finance of America Mortgage LLC ("FAM") and Finance of America Reverse LLC ("FAR"). Through FAR, the Company originates, purchases, sells, and securitizes home equity conversion mortgages, which are insured by the Federal Housing Administration ("FHA"), and non-agency reverse mortgages. Through FAM, the Company originates or acquires secured and unsecured home improvement loans or receivables. The Company, through its Incenter holding company subsidiary, has operating service companies (the "operating service subsidiaries" and together with the operating lending subsidiaries, the "operating subsidiaries") which provide capital markets and portfolio management capabilities such as secondary markets advisory services, mortgage trade brokerage, and capital management services. Incenter operates a foreign branch in the Philippines for fulfillment transactional support. Organizational Updates On October 20, 2022, the Board of Directors (the "Board") of the Company authorized a plan to discontinue the operations of the Company’s previously reported Mortgage Originations segment, other than the Home Improvement channel (the “ Dispositio n”). The Disposition commenced in the fourth quarter of 2022 and was completed on February 28, 2023. Refer to Note 4 - Discontinued Operations for additional information. On December 6, 2022, the Company entered into an asset purchase agreement with American Advisors Group, now known as Bloom Retirement Holdings Inc. ("AAG/Bloom"). Also on December 6, 2022, concurrently with the execution of the asset purchase agreement, FAR entered into a Servicing Rights Purchase and Sale Agreement (the "MSR Purchase Agreement") and a Loan Sale Agreement (the "Mortgage Loan Purchase Agreement" and collectively with the asset purchase agreement and MSR Purchase Agreement, the "AAG Transaction") with AAG/Bloom. The AAG Transaction closed on March 31, 2023, and its assets, liabilities, and operations are included in the Company's Retirement Solutions segment reporting. Refer to Note 3 - Acquisitions for additional information. On February 1, 2023, the Company's indirect subsidiary, Incenter, entered into an agreement to sell one hundred percent of (i) the issued and outstanding shares of capital stock of Agents National Title Holding Company ("ANTIC"), a direct subsidiary of Incenter and an indirect subsidiary of the Company, and (ii) the issued and outstanding membership interests of Boston National Holdings LLC ("BNT"), a direct subsidiary of Incenter and an indirect subsidiary of the Company. The closing of the ANTIC and BNT sale is expected to occur in July 2023. The Company has historically included the operations of ANTIC and BNT in its previously reported Lender Services operating segment. On March 30, 2023, the FoA Equity Board authorized a plan to sell assets making up the remainder of the Company's previously reported Lender Services operating segment, with the exception of its Incenter Solutions LLC operating service subsidiary, which continues to provide fulfillment transaction support. The operations of Incenter Solutions LLC are now reported as part of the Company's Corporate and Other segment. Refer to Note 4 - Discontinued Operations and Note 27 - Subsequent Events for additional information. On February 19, 2023, the Company's indirect subsidiary, FAH, entered into an agreement to sell certain operational assets of FAM, operating as Finance of America Commercial LLC ("FACo"). This transaction closed on March 14, 2023. The Company has historically included the operations of FACo in its Commercial Originations operating segment. Refer to Note 4 - Discontinued Operations for additional information. In 2022 and 2023, the Company reevaluated the business strategy and implemented a series of transformational actions to restructure the organization into a modern retirement solutions platform. This plan included the wind-down of the previously reported Mortgage Originations segment and sale of the previously reported Commercial Originations and Lenders Services segments. F |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements comprise the financial statements of FoA and its controlled subsidiaries for the three months ended March 31, 2023 and 2022, respectively. The condensed consolidated financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for interim financial statements and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The accompanying financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of its financial condition as of March 31, 2023 and its results of operations and cash flows for the three months ended March 31, 2023 and 2022 . The Condensed Consolidated Statement of Financial Condition at December 31, 2022 was derived from audited financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the interim periods are not necessarily indicative of the results that may be expected for any future period or for the full year. The condensed consolidated financial statements, including the significant accounting policies, should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2022 within the Company's Annual Report on Form 10-K ("Form 10-K"). There have not been any material changes to our critical accounting policies and estimates as disclosed in the Form 10-K, except for the valuation of the Company's MSR is no longer considered a critical accounting estimate. The significant accounting policies, together with the other notes that follow, are an integral part of the condensed consolidated financial statements. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates and assumptions due to factors such as changes in the economy, interest rates, secondary market pricing, prepayment assumptions, home prices, or discrete events affecting specific borrowers, and such differences could be material. Liquidity and Going Concern For the year ended December 31, 2022 , the Company incurred net losses of approximately $715.5 million , including operational losses in its discontinued Mortgage Originations, Commercial Originations, and Lender Services segments. Revenues generated for 2022 were negatively impacted by macroeconomic factors including persistent high inflation and increased market interest rates. These factors significantly reduced customer demand and compressed margins in our business segments. The Company also observed significantly widened market spreads for assets that we hold for investment at fair value, which combined with higher interest rates, resulted in negative fair value adjustments. These fair value losses recognized in accordance with GAAP resulted in the Company using cash during 2022 to pay down or repay certain credit facilities. During the first quarter of 2023, the Company generated $58.0 million in pre-tax income from its continuing operations, however, macroeconomic factors continued to impact our discontinued operations, resulting in a $37.5 million pre-tax net loss for discontinued operations and overall pre-tax income of $20.5 million for the Company. At March 31, 2023, the Company had total equity of $490.4 million , net of an accumulated deficit of $631.2 million . As of December 31, 2022 and March 31, 2023, the Company was in violation of the profitability and other covenants for certain of its warehouse lending facilities. The Company has subsequently obtained financial covenant waivers, amendments to such financial covenants, or paid off the lines of credit, in order to avoid breaching such financial covenants. When evaluated in the aggregate, and before consideration of management’s plans, these conditions raise questions as to our ability to meet our obligations and covenants for the twelve-month and a day period from the date of the issuance of the condensed consolidated financial statements. To address the conditions noted above, Management has taken certain actions, including the prior extension of its revolving working capital lines of credit which mature on May 15, 2024, and the actions described in Note 3 - Acquisitions and Note 4 - Discontinued Operations, and is implementing the following plans and actions that we believe will address the Company’s liquidity needs over at least the twelve-month period and a day from the date of the issuance of the condensed consolidated financial statements. On February 1, 2023, the Company entered into an agreement to sell BNT and ANTIC for a cash purchase price of $100.0 million , which is expected to close in the third quarter 2023. Additionally, the Company expects to continue to renew its warehouse lines of credit in the normal course of its operations at terms consistent with its operating needs. The Company believes management’s plans, as described above, combined with its normal operating results will provide sufficient liquidity to meet the financial obligations and covenants over at least the twelve-month and a day period from the date the condensed consolidated financial statements are issued and that the execution of these plans is probable. Asset Acquisitions and Business Combinations In accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), as of the acquisition date, the Company evaluates acquisitions to determine whether the Company has acquired a business or a group of assets. The evaluation includes a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The results of this evaluation impacts whether the Company accounts for an acquisition under business combination or asset acquisition guidance. If the screen test is met, the acquisition is not considered to be a business, and is instead accounted for as an asset acquisition. Under ASC 805, asset acquisitions are measured following a cost accumulation and allocation model, whereby the costs to acquire the assets, including transaction costs, are accumulated and then allocated to the individual assets and liabilities acquired based upon their estimated fair values. No goodwill or bargain purchase gain is recognized in an asset acquisition. The Company applies the acquisition method to all transactions and other events in which the entity obtains control over one or more other businesses. Under business combination, assets acquired and liabilities assumed are measured at fair value as of the acquisition date. Liabilities related to contingent consideration are recognized at the acquisition date and re-measured at fair value in each subsequent reporting period. Goodwill is recognized if the consideration transferred exceeds the fair value of the net assets acquired. Under ASC 805, there is an option to apply push-down accounting, which establishes a new basis for the assets and liabilities of the acquired company based on a “push-down” of the acquirer’s stepped-up basis. The push-down accounting election is made in the reporting period in which the change in control event occurs. Refer to Note 3 - Acquisitions for further information about the Company’s acquisition related transactions. Discontinued Operations and Assets Held for Sale The Company classifies assets and liabilities as held for sale when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. We also consider whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate it is unlikely significant changes to the plan will be made or the plan will be withdrawn. In accordance with ASC 205, Presentation of Financial Statements ("ASC 205") , we classify operations as discontinued when they meet all the criteria to be classified as held for sale and when the sale represents a strategic shift that will have a major impact on our financial condition and results of operations. The Company considers a component of the entity that is being exited to be discontinued operations when all operations, including wind-down operations, cease. Recently Issued Accounting Guidance, Not Yet Adopted as of March 31, 2023 Standard Description Date of Planned Adoption Effect on Condensed Consolidated Financial Statements ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2021-01, Reference Rate Reform (Topic 848): Codification Clarification ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 The amendments in this Update provide temporary optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter-Bank Offered Rate ("LIBOR") or other interbank offered rates expected to be discontinued. In January 2021, FASB issued an Update which refines the scope of Topic 848 and clarifies the guidance issued to facilitate the effects of reference rate reform on financial reporting. The amendment permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements and calculating price alignment interest in connection with reference rate reform activities. In December 2022, the FASB issued ASU 2022-06 that defers the sunset date for applying the reference rate reform relief in Topic 848 to December 31, 2024 (originally December 31, 2022), thereby extending the period over which entities can apply the guidance in ASU 2020-04, which provides “optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.” TBD This ASU is effective from March 12, 2020 through December 31, 2024. The Company continues to monitor the impact associated with reference rate reform, and will apply the amendments in these updates to account for contract modifications due to changes in reference rates once those occur. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The amendments in this Update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments in this Update also require the following disclosures for equity securities subject to contractual sale restrictions: 1. The fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet January 1, 2024 This ASU is effective for fiscal years beginning after December 15, 2023. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. |
Business Segment Reporting | 22. Business Segment Reporting The following tables are a presentation of financial information by segment for the periods indicated (in thousands): For the three months ended March 31, 2023 Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain (loss) on sale and other income from loans held for sale, net $ (1,312) $ (11,058) $ (12,370) $ — $ (56) $ (12,426) Net fair value gains on loans and related obligations 24,475 151,919 176,394 — — 176,394 Fee income 3,180 5,463 8,643 2,953 (5,244) 6,352 Net interest expense — Interest income — 1,470 1,470 621 — 2,091 Interest expense — (23,996) (23,996) (7,560) — (31,556) Net interest expense — (22,526) (22,526) (6,939) — (29,465) Total revenues 26,343 123,798 150,141 (3,986) (5,300) 140,855 Total expenses 35,524 24,679 60,203 28,874 (5,300) 83,777 Other, net 31 — 31 905 — 936 Net income (loss) before taxes $ (9,150) $ 99,119 $ 89,969 $ (31,955) $ — $ 58,014 Depreciation and amortization $ 9,643 $ 14 $ 9,657 $ 448 $ — $ 10,105 Total assets $ 296,417 $ 26,327,259 $ 26,623,676 $ 1,912,801 $ (1,861,938) $ 26,674,539 For the three months ended March 31, 2022 Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain on sale and other income from loans held for sale, net $ — $ 10,928 $ 10,928 $ — $ (4,707) $ 6,221 Net fair value gains (losses) on loans and related obligations 105,755 (102,785) 2,970 — 3,990 6,960 Fee income 3,805 54,525 58,330 9,039 (12,196) 55,173 Net interest expense Interest income 43 1,047 1,090 94 — 1,184 Interest expense (54) (16,723) (16,777) (6,703) — (23,480) Net interest expense (11) (15,676) (15,687) (6,609) — (22,296) Total revenues 109,549 (53,008) 56,541 2,430 (12,913) 46,058 Total expenses 47,427 34,711 82,138 38,283 (13,018) 107,403 Other, net 3,214 27 3,241 (152) (105) 2,984 Net income (loss) before taxes $ 65,336 $ (87,692) $ (22,356) $ (36,005) $ — $ (58,361) Depreciation and amortization $ 9,598 $ 91 $ 9,689 $ 509 $ — $ 10,198 Total assets $ 417,791 $ 19,628,648 $ 20,046,439 $ 1,769,059 $ (1,734,835) $ 20,080,663 The Company has identified three reportable segments: Retirement Solutions, Portfolio Management, and Corporate and Other. Retirement Solutions Our Retirement Solutions segment is where we fulfill our goal to help older homeowners achieve their financial goals in retirement. This segment includes all loan origination activity for the Company, including reverse mortgage and home improvement loans. We originate or acquire reverse mortgage loans through our FAR operating subsidiary. This segment originates HECM and non-agency reverse mortgages. We securitize HECM into HMBS, which Ginnie Mae guarantees, and sell them in the secondary market while retaining the rights to service. Non-agency reverse mortgages, which complement the FHA HECM for higher value homes, may be sold as whole loans to investors or held for investment and pledged as collateral to securitized nonrecourse debt obligations. Non-agency reverse mortgage loans are not insured by the FHA. We originate reverse mortgage loans through a retail channel (consisting primarily of field offices and a centralized retail platform) and a third-party originator channel (consisting primarily of a network of mortgage brokers). Additionally, this segment originates home improvement loans through our FAM subsidiary. Through these operations, the Company assists homeowners in the financing of short-term home improvement projects such as windows, HVAC, or remodeling, and relies on a network of partner contractors across the country to acquire, interact with, and serve these customers. These home improvement loans are then sold in the secondary market through our capital markets platform. Portfolio Management Our Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services to the enterprise. As part of the vertical integration of our business, our Portfolio Management team acts as the connector between borrowers and investors. The direct connections to investors, provided by our Financial Industry Regulatory Authority registered broker-dealer, allows us to innovate and manage risk through better price and product discovery. Given our scale, we are able to work directly with investors and where appropriate, retain assets on balance sheet for attractive return opportunities. These retained investments are a source of growing and recurring earnings. The Portfolio Management segment generates revenue and earnings in the form of gains on sale of loans, fair value gains on portfolio assets, interest income, and fee income related to mortgage servicing rights, underwriting, advisory, valuation, and other ancillary services. Corporate and Other Our Corporate and Other segment consists of our corporate services groups. The Company's segments are based upon the Company's organizational structure which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on actual cost of services performed based on a direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Non-allocated corporate expenses include administrative costs of executive management and other corporate functions that are not directly attributable to the Company's operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. To reconcile the Company's consolidated results, certain inter-segment revenues and expenses are eliminated in the "Eliminations" column in the previous tables. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 3. Acquisitions Asset Acquisition On March 31, 2023, the Company completed the acquisition of the assets and liabilities associated with the AAG Transaction for a total purchase consideration of $215.4 million. The Company has determined that the AAG Transaction should be considered an asset acquisition, because substantially all of the fair value of the acquired assets was concentrated in a single group of similar assets. Under the accounting for asset acquisitions, the acquisition is recorded using a cost accumulation and allocation model under which the cost of the acquisition is allocated on a relative fair value basis to the assets acquired and liabilities assumed. Acquisition-related transaction costs are capitalized as a component of the cost of the assets acquired. Consequently, no goodwill was recognized as part of this transaction. The following table summarizes the fair value of the consideration transferred and the major classes of assets acquired and liabilities assumed in relation to the March 31, 2023 acquisition (in thousands): Consideration transferred: FoA Class B Common Stock (1) (Note 26 - Equity) $ — Cash consideration (4) 3,100 Notes payable to Seller 4,500 Pay off indebtedness (4) 136,984 Initial equity consideration – Class A LLC Units (2) (Note 26 - Equity) 24,419 Deferred equity consideration – Class A LLC Units (3) (Note 26 - Equity) 13,137 Other liabilities assumed 8,429 Buyer transaction expenses (4) 770 Forgiveness of bridge working capital notes payable 24,034 Total cost $ 215,373 Assets acquired: Loans held for investment, subject to HMBS related obligations $ 5,448,712 Loans held for investment 138,270 Fixed assets and leasehold improvements 2,400 Lease asset 491 Other assets 6,270 Total assets acquired $ 5,596,143 Liabilities assumed: HMBS related obligations $ 5,354,372 Lease liabilities 492 Payables and other liabilities 25,906 Total liabilities assumed 5,380,770 Net identifiable assets acquired $ 215,373 (1) Bloom Retirement Holdings Inc., formerly known as American Advisors Group ("Seller" or "AAG/Bloom") is entitled to one share of FoA Class B Common Stock. Class B Common Stock has no economic rights but entitles each holder of at least one such share (regardless of the number of shares held) to a number of votes that is equal to the aggregate number of Class A LLC Units held by the holder on all matters on which Class A Common Stockholders are entitled to vote. The fair value of the Class B Common Stock was determined to be negligible as there are no economic rights associated with the Class B Common Stock. (2) At the closing of the AAG Transaction, FoA Equity issued 19,692,990 units of Class A LLC units to the Seller, which hold 1:1 conversion rights for Class A Common Stock of FoA. At the closing date, the fair value of these Class A LLC units were equal to the Class A Common Stock share price of $1.24 per share. (3) The deferred equity consideration is comprised of two forms of issuable Class A LLC Units; 7,058,416 units with a fair value of $8.7 million that are equity classified and indemnity holdback units totaling up to 7,142,260 units with a fair value of $4.4 million that are liability classified. The indemnity holdback units to be issued to the Seller are based on set thresholds and, subject to meeting the control condition, are settled two to are issued three years following the closing date. Management has included the fair value of indemnity holdback units, reduced for estimated litigation liabilities and indemnifiable loan losses, above in the consideration given to the Seller. (4) Amounts represent the cash portion of the consideration paid to acquire the net assets of AAG/Bloom. Total cash consideration was $140.9 million. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 4. Discontinued Operations In 2022 and 2023, the Company reevaluated the business strategy and implemented a series of transformational actions to restructure the organization into a modern retirement solutions platform. This plan included the wind-down of the previously reported Mortgage Originations segment and sale of the previously reported Commercial Originations and Lenders Services segments. This constitutes a strategic shift that has or will have a major effect on our operations and financial results. As such, the results of our previously reported Mortgage Originations, Commercial Originations, and Lenders Services segments are reported as discontinued operations for all periods presented in accordance with ASC 205. Mortgage Originations Segment On October 20, 2022, the Board of the Company authorized a plan to discontinue the operations of the Company’s previously reported Mortgage Originations segment, other than the Home Improvement channel. The Disposition commenced in the fourth quarter of 2022 and was completed on February 28, 2023. Lender Services Segment On February 1, 2023, the Company's indirect subsidiary, Incenter, entered into an agreement to sell one hundred percent of (i) the issued and outstanding shares of capital stock of ANTIC, a direct subsidiary of Incenter and an indirect subsidiary of the Company, and (ii) the issued and outstanding membership interests of BNT, a direct subsidiary of Incenter and an indirect subsidiary of the Company. The closing of the ANTIC and BNT sale is expected to occur in July 2023. The Company has historically included the operations of ANTIC and BNT in its previously reported Lender Services operating segment. On March 30, 2023, the FoA Equity Board authorized a plan to sell assets making up the remainder of the Company's previously reported Lender Services operating segment, with the exception of its Incenter Solutions LLC operating service subsidiary, which continues to provide fulfillment transaction support. The operations of Incenter Solutions LLC are now reported as part of the Company's Corporate and Other segment. Refer to Note 27 - Subsequent Events for additional information. This sale is committed under the same disposal plan with the sale of ANTIC and BNT and meets the held for sale criteria in accordance with ASC 205, as of March 31, 2023. Commercial Originations Segment On February 19, 2023, the Company entered into an agreement to sell certain operational assets of FAM operating as FACo. This transaction closed on March 14, 2023. The Company has historically included the operations of FACo in its previously reported Commercial Originations operating segment. The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Assets Cash and cash equivalents $ 33,828 $ 36,212 Restricted cash 311 311 Loans held for sale, at fair value — 141,994 Derivative assets 11 676 Fixed assets and leasehold improvements, net 9,649 9,884 Intangible assets, net 63,580 77,436 Other assets, net 44,071 46,847 Assets of discontinued operations $ 151,450 $ 313,360 Liabilities Other financing lines of credit $ — $ 127,735 Payables and other liabilities 66,302 99,379 Liabilities of discontinued operations $ 66,302 $ 227,114 The following table summarizes the major components of net loss from discontinued operations for the three months ended March 31, 2023 and 2022 (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Revenues Gain on sale and other income from loans held for sale, net $ 396 $ 112,131 Net fair value gains on loans and related obligations 308 3,475 Fee income 32,628 102,431 Net interest income (expense): Interest income 517 12,689 Interest expense (820) (9,350) Net interest income (expense) (303) 3,339 Total revenues 33,029 221,376 Expenses Salaries, benefits, and related expenses 30,851 149,977 Occupancy, equipment rentals, and other office related expenses 972 5,648 General and administrative expenses 28,533 86,508 Total expenses 60,356 242,133 Impairment of other assets (1) (1,055) — Other, net (2) (9,089) 1,788 Net loss from discontinued operations before income taxes (37,471) (18,969) Provision (benefit) for income taxes from discontinued operations 3,419 (5,613) Net loss from discontinued operations (40,890) (13,356) Net loss attributable to noncontrolling interest from discontinued operations (25,217) (14,299) Net income (loss) from discontinued operations attributable to controlling interest $ (15,673) $ 943 (1) The Company evaluates the carrying value of long-lived assets, including the fixed assets, leasehold improvements as well as right-of-use assets in operating leases when indicators of impairment exist in accordance with ASC 360, Property, Plant, and Equipment. Based on the analysis, the Company recognized an impairment charge following the sale of commercial originations segment. (2) Amount includes a loss on disposal of $10.2 million for the three months ended March 31, 2023. The Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2023 and 2022 included the following material activities related to discontinued operations (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Gain on sale and other income from loans held for sale, net $ 396 $ 112,131 Unrealized fair value changes on loans, related obligations, and derivatives 308 3,475 Impairment of intangibles and other assets 1,055 — Depreciation and amortization 2,778 6,466 Acquisition of fixed assets (1,815) (2,612) |
Variable Interest Entities and
Variable Interest Entities and Securitizations | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities and Securitizations | 5. Variable Interest Entities and Securitizations The Company determined that the special purpose entities created in connection with its securitizations are VIEs. A variable interest entity ("VIE") is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary, which is the entity that, through its variable interests, has both the power to direct the activities that significantly impact the VIE's economic performance and the obligations to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Consolidated VIEs FAR FAR securitizes certain of its interests in nonperforming reverse mortgages and non-agency reverse mortgage loans. The transactions provide investors with the ability to invest in a pool of reverse mortgage loans secured by one-to-four-family residential properties. The transactions provide FAR with access to liquidity for these assets, ongoing servicing fees, and potential residual returns. The principal and interest on the outstanding certificates are paid using the cash flows from the underlying reverse mortgage loans, which serve as collateral for the debt. The securitizations are callable at or following the optional redemption date as defined in the respective indenture agreements. FAM FAM (prior to January 1, 2022, through FACo) securitized certain of its interests in fix & flip mortgages. The transactions provided debt security holders the ability to invest in a pool of loans secured by an investment in real estate. The transactions provided the Company with access to liquidity for the loans and ongoing management fees. The principal and interest on the outstanding debt securities are paid using the cash flows from the underlying loans, which serve as collateral for the debt. Servicing-Securitized Loans In their capacity as servicer of the securitized loans, FAM (prior to January 1, 2022, through FACo) and FAR retain the power to direct the VIE's activities that most significantly impact the VIE's economic performance. FAM (prior to January 1, 2022, through FACo) and FAR also retain certain beneficial interests in these trusts which provide exposure to potential gains and losses based on the performance of the trust. As FAM (prior to January 1, 2022, through FACo) and FAR have both the power to direct the activities that significantly impact the VIE's economic performance and the obligations to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the definition of primary beneficiary is met and the trusts are consolidated by the Company through its FAM (prior to January 1, 2022, through FACo) and FAR subsidiaries. Certain obligations may arise from the agreements associated with transfers of loans. Under these agreements, the Company may be obligated to repurchase the loans or otherwise indemnify or reimburse the investor for losses incurred due to material breach of contractual representations and warranties. There were no charge-offs associated with these transferred mortgage loans related to the standard securitization representations and warranties obligations for the three months ended March 31, 2023 or 2022. The following table presents the assets and liabilities of the Company's consolidated VIEs, which are included in the Condensed Consolidated Statements of Financial Condition, and excludes intercompany balances, except for retained bonds and beneficial interests (in thousands): March 31, 2023 December 31, 2022 ASSETS Restricted cash $ 183,210 $ 173,714 Loans held for investment, subject to nonrecourse debt, at fair value 7,953,455 7,340,528 Other assets, net 87,369 75,977 TOTAL ASSETS $ 8,224,034 $ 7,590,219 LIABILITIES Nonrecourse debt, at fair value $ 8,006,545 $ 7,479,918 Payables and other liabilities 742 757 TOTAL VIE LIABILITIES 8,007,287 7,480,675 Retained bonds and beneficial interests eliminated in consolidation (374,063) (304,061) TOTAL CONSOLIDATED LIABILITIES $ 7,633,224 $ 7,176,614 Unconsolidated VIEs FAM Hundred Acre Wood Trust FAM securitized certain of its interests in agency-eligible residential mortgage loans. The transactions provide investors with the ability to invest in a pool of mortgage loans secured by one-to-four-family residential properties and provide FAM with access to liquidity for these assets and ongoing servicing fees. The principal and interest on the outstanding certificates are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. In 2021, FAM executed certain securitizations where FAM's beneficial interest in the securitization is limited to its U.S. Risk Retention Certificates, a 5% eligible vertical interest in the trust. The Company determined that the securitization structures meet the definition of a VIE and concluded that the Company does not hold a significant variable interest in the securitizations and that the contractual role as servicer is not a variable interest. The transfer of the loans to the VIEs was determined to be a sale. The Company derecognized the mortgage loans and did not consolidate the trusts. FAM’s continuing involvement with and exposure to loss from the VIE includes the carrying value of the retained bond, the servicing asset recognized in the sale of the loans, servicing advances in the role as servicer, and obligations under representations and warranties contained in the loan sale agreements. Creditors of the VIE have no recourse to FAM’s assets or general credit. The underlying performance of the mortgage loans transferred has a direct impact on the fair values and cash flows of the beneficial interests held and the servicing asset recognized. FAR In December 2022, FAR securitized its interest in certain non-agency reverse mortgage loans where its beneficial interest in the securitization is limited to a 5% eligible vertical interest in the trust. The Company determined that the securitization structures meet the definition of a VIE and concluded that the Company does not hold a significant variable interest in the securitization and that the contractual role as servicer is not a variable interest. The transfer of the loans to the VIE was determined to be a sale. The Company derecognized the reverse mortgage loans and did not consolidate the trust. The Company has outstanding collateral and certificate unpaid principal balance ("UPB") for securitization trusts for which it was the transferor and that were not consolidated of $1.1 billion as of March 31, 2023 and December 31, 2022. As of March 31, 2023 and December 31, 2022, there were $0.6 million and $0.7 million, respectively, of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 90 days or more past due. Cavatica Asset Participation Trust ("CAPT") and Other Non-Agency In December 2021, CAPT was established for the purpose of securitizing agricultural loans where its beneficial interest in the securitization is limited to its Issuer Residual Interest Certificates, a 5% eligible vertical interest in the trust. In February 2023, the Company established a trust for the purpose of securitizing certain non-agency reverse mortgage loans where its beneficial interest in the securitization is limited to a 5% eligible vertical interest in the trust. The Company determined that these securitization structures meet the definition of a VIE and concluded that the Company does not hold a significant variable interest in the securitizations and the Company does not have the power to direct the activities that most significantly affect the economic performance of the VIEs. However, the transfer of the loans to the VIEs was determined not to be a sale. As such, the Company continues to recognize and consolidate the loans and the related nonrecourse liability, with the retained bonds being eliminated against the nonrecourse liability in consolidation. The Company’s continuing involvement with and exposure to loss from the VIEs includes the carrying value of the retained bond, the retained loans, debt servicing of the related nonrecourse liability, servicing advances in the role as servicer, and obligations under representations and warranties contained in the loan sale agreements. Creditors of the VIEs have no recourse to the Company’s assets or general credit. The underlying performance of the mortgage loans held has a direct impact on the fair values and cash flows of the beneficial interests held. As of March 31, 2023, the consolidated balance of the agricultural loans and non-agency reverse mortgage loans transferred to the VIEs and the related nonrecourse liabilities had a fair value of $421.4 million and $399.1 million, respectively. As of December 31, 2022, the consolidated balance of the agricultural loans transferred to the VIE and the related nonrecourse liability had a fair value of $114.1 million and $106.8 million, respectively. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based on the assumptions market participants would use when pricing an asset or liability and follows a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices available in active markets (i.e., observable inputs) and the lowest priority to data lacking transparency (i.e., unobservable inputs). In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. All aspects of nonperformance risk, including the Company’s own credit standing, are considered when measuring the fair value of a liability. Following is a description of the three levels of the fair value hierarchy: Level 1 Inputs: Quoted prices for identical instruments in active markets. Level 2 Inputs: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs: Instruments with unobservable inputs that are significant to the fair value measurement. The Company classifies assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There wer e no transfers within the hierarchy for the three months ended March 31, 2023 or 2022 . Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and the details of the valuation models, key inputs to those models and significant assumptions utilized. Within the assumption tables presented, not meaningful ("NM") refers to a range of inputs that is too broad to provide meaningful information to the user or to an input that has no range and consists of a single data point. Instrument Valuation techniques Classification of Fair Value Hierarchy Assets Loans held for investment, subject to HMBS related obligations (1) HECM loans - securitized into Government National Mortgage Association ("Ginnie Mae" or "GNMA") HMBS These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the loan portfolio using conditional prepayment rate ("CPR"), loss frequency and severity, borrower draw, and discount rate assumptions. Level 3 Loans held for investment, subject to nonrecourse debt (1) HECM buyouts - securitized (nonperforming) These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using CPR, loss frequency, loss severity, and discount rate assumptions. Level 3 HECM buyouts - securitized (performing) These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using weighted average remaining life ("WAL"), CPR, loss severity, and discount rate assumptions. Level 3 Non-agency reverse mortgage - securitized These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using WAL, loan to value ("LTV"), CPR, loss severity, home price appreciation ("HPA"), and discount rate assumptions. Level 3 Fix & flip mortgage loans This product is valued using a discounted cash flow model utilizing prepayment rate (single monthly mortality or "SMM"), discount rate, and loss rate assumptions. Level 3 (1) The Company aggregates loan portfolios based upon the underlying securitization trust and values these loans using these aggregated pools. The range of inputs provided are based upon the range of inputs utilized for each securitization trust. Loans held for investment Inventory buy-outs The fair value of repurchased loans is based on expected cash proceeds of the liquidation of the underlying properties and expected claim proceeds from the Department of Housing and Urban Development ("HUD"). The primary assumptions utilized in valuing nonperforming repurchased loans include CPR, loss frequency, loss severity, and discount rate. Termination proceeds are adjusted for expected loss frequencies and severities to arrive at net proceeds that will be provided upon final resolution, including assignments to FHA. Historical experience is utilized to estimate the loss rates resulting from scenarios where FHA insurance proceeds are not expected to cover all principal and interest outstanding and, as servicer, the Company is exposed to losses upon resolution of the loan. Level 3 Non-agency reverse mortgage The fair value of non-agency reverse mortgage loans is based on values for investments with similar investment grade ratings and the value the Company would expect to receive if the whole loans were sold to an investor. The Company values non-agency reverse mortgage loans utilizing a present value methodology that discounts estimated projected cash flows over the life of the loan portfolio. The primary assumptions utilized in valuing the loans include LTV, CPR, loss severity, HPA, and discount rate. Level 3 Fix & flip mortgage loans This product is valued using a discounted cash flow ("DCF") model with SMM, discount rate, and loss rate assumptions. Level 3 Agricultural loans The product is valued using a DCF model with discount rate, prepayment rate, and default rate assumptions. Level 3 Loans held for sale Residential mortgage loans This includes all mortgage loans that can be sold to the agencies, which are valued predominantly by published forward agency prices. This will also include all non-agency loans where recently negotiated market prices for the loan pool exist with a counterparty (which approximates fair value), or quoted market prices for similar loans are available. Level 2 Single Rental Loan ("SRL") This product is valued using a DCF model utilizing CPR, discount rate, and constant default rate ("CDR") assumptions. Level 3 Portfolio loans This product is valued using a DCF model utilizing CPR, discount rate, and CDR assumptions. Level 3 Mortgage Servicing Rights MSR The Company valued MSR internally through a DCF analysis and calculated using a pricing model. This pricing model is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions such as discount rate and weighted average CPR. Level 3 Derivative assets/liabilities Forward mortgage-backed securities ("MBS") and To Be Announced Securities ("TBAs") This product is valued using forward dealer marks from the Company's approved counterparties, forward prices with dealers in such securities, or internally-developed third-party models utilizing observable market inputs. Level 2 Interest rate swaps and futures contracts This product is valued using quoted market prices. Level 1 Other assets Retained bonds Management obtains third-party valuations to assess the reasonableness of the fair value calculations provided by the internal valuation model. The primary assumptions utilized include weighted average life remaining and discount rate. Level 3 Investments To the extent market prices are not observable, the Company engages third-party valuation experts to assist in determining the fair value of these investments. The values are determined utilizing a market approach which estimates fair value based on what other participants in the market have paid for reasonably similar assets that have been sold within a reasonable period from the valuation date. Level 3 Purchase Commitments - reverse mortgage loans Purchase commitments are valued based on the value of the underlying loan. These loans are valued based on an expected margin on sale of 3.00% as of December 31, 2022. There were not any reverse mortgage loan purchase commitments as of March 31, 2023. Level 3 Liabilities HMBS related obligations HMBS related obligations The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The estimated fair value of the HMBS related obligations also includes the consideration required by a market participant to transfer the HECM and HMBS servicing obligations, including exposure resulting from shortfalls in FHA insurance proceeds as well as assumptions that it believes a market participant would consider in valuing the liability, including, but not limited to, assumptions for repayment, costs to transfer servicing obligations, shortfalls in FHA insurance proceeds, and discount rates. The significant unobservable inputs used in the measurement include CPR and discount rates. Level 3 Nonrecourse debt Nonrecourse reverse mortgage loans financing liability The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The significant unobservable inputs used in the measurement include WAL, CPR, and discount rates. Level 3 Nonrecourse commercial loan financing liability The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The primary assumptions utilized include WAL, SMM, and discount rates. The Company estimates prepayment speeds giving consideration that the Company may in the future transfer additional loans to the trust, subject to the availability of funds provided for within the trust. Level 3 Nonrecourse MSR financing liability Consistent with the underlying MSR, fair value is derived through a DCF analysis and calculated using a pricing model. This pricing model is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions including CPR and discount rate. Level 3 Deferred purchase price liabilities Deferred purchase price liabilities These are measured using a present value of future payments utilizing discount rate assumptions. Level 3 Tax Receivable Agreements ("TRA") obligation The fair value is derived through the use of a DCF model. The significant unobservable assumptions used in the DCF include the ability to utilize tax attributes based on current tax forecasts, a constant U.S. federal income tax rate, and a discount rate. Level 3 Warrant liability Warrants The warrants are publicly traded and are valued based on the closing market price of the applicable date of the Condensed Consolidated Statements of Financial Condition. Level 1 March 31, 2023 December 31, 2022 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Assets Loans held for investment, subject to HMBS related obligations Conditional repayment rate NM 19.3 % NM 21.9 % Loss frequency NM 4.0 % NM 4.1 % Loss severity 2.4% - 10.9% 2.5 % 2.4% - 12.1% 2.7 % Discount rate NM 4.7 % NM 5.0 % Average draw rate NM 1.1 % NM 1.1 % Loans held for investment, subject to nonrecourse debt: HECM buyouts - securitized (nonperforming) Conditional repayment rate NM 38.4 % NM 39.2 % Loss frequency 23.1% - 100.0% 51.2 % 23.1% - 100% 51.7 % Loss severity 2.4% - 10.9% 4.9 % 2.4% - 12.1% 5.2 % Discount rate NM 8.5 % NM 8.7 % HECM buyouts - securitized (performing) WAL (in years) NM 7.9 NM 8.0 Conditional repayment rate NM 15.6 % NM 15.2 % Loss severity 2.4% - 10.9% 4.8 % 2.4% - 12.1% 4.8 % Discount rate NM 7.9 % NM 8.2 % March 31, 2023 December 31, 2022 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Non-agency reverse mortgage loans - securitized WAL (in years) NM 9.7 NM 9.7 LTV 0.0% - 77.0% 45.6 % 0.0% - 74.7% 43.1 % Conditional repayment rate NM 14.4 % NM 14.3 % Loss severity NM 10.0 % NM 10.0 % HPA (10.2)% - 7.8% 3.8 % (10.1)% - 7% 3.8 % Discount rate NM 6.6 % NM 7.1 % Fix & flip mortgage loans - securitized Prepayment rate (SMM) NM 11.2 % NM 11.2 % Discount rate NM 14.1 % NM 17.5 % Loss rate NM 0.5 % NM 0.5 % Loans held for investment: Inventory buy-outs Conditional repayment rate NM 41.2 % NM 41.3 % Loss frequency NM 49.0 % NM 47.6 % Loss severity 2.4% - 10.9% 3.8 % 2.4% - 12.1% 5.6 % Discount rate NM 8.5 % NM 8.7 % Non-agency reverse mortgage loans WAL (in years) NM 11.4 NM 12 LTV 0.1% - 74.6% 36.7 % 0.1% - 67.9% 36.4 % Conditional repayment rate NM 14.1 % NM 13.8 % Loss severity NM 10.0 % NM 10.0 % HPA (10.2)% - 7.8% 3.6 % (10.1)% - 7.3% 3.6 % Discount rate NM 6.6 % NM 7.1 % Fix & flip mortgage loans Prepayment rate (SMM) NM 10.1 % NM 9.5 % Discount rate 13.0% - 20.5% 15.6 % 16.3% - 25.8% 16.6 % Loss rate NM 0.2 % NM 0.2 % Agricultural loans Discount rate NM 9.5 % NM 9.7 % Prepayment rate (SMM) 19.0% - 100.0% 74.1 % 11.0% - 100.0% 11.8 % Default rate (CDR) 0.0% - 1.0% 0.9 % 0.0% - 1.0% 0.9 % Loans held for sale: SRL Prepayment rate (CPR) 18.5% - 25.0% 19.4 % 18.5% - 25.0% 19.7 % Discount rate NM 8.4 % NM 8.3 % Default rate (CDR) NM 1.0 % 0.0% - 0.0% 1.0 % Portfolio loans Prepayment rate (CPR) 0.0% - 23.7% 14.0 % 0.0% - 24.3% 18.4 % Discount rate NM 10.7 % NM 10.9 % Default rate (CDR) NM 1.0 % NM 1.0 % March 31, 2023 December 31, 2022 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Mortgage Servicing Rights Weighted average prepayment speed (CPR) 0.8% - 12.2% 8.4 % 1.0% - 8.5% 6.4 % Discount rate NM 11.5 % NM 10.1 % Other assets: Retained bonds WAL (in years) 2.4 - 23.9 4.7 2.4 - 24.1 4.9 Discount rate (18.5)% - 11.9% 6.2 % (16.8)% - 12.2% 6.9 % Liabilities HMBS related obligations Conditional repayment rate NM 19.0 % NM 21.8 % Discount rate NM 4.6 % NM 5.0 % Nonrecourse debt: Reverse mortgage loans Performing/Nonperforming HECM securitizations WAL (in years) 1.3 - 1.4 1.4 1.5 - 1.6 1.6 Conditional repayment rate 17.6% - 20.0% 18.9 % 19.9% - 22.2% 21.1 % Discount rate NM 8.7 % NM 8.6 % Securitized non-agency reverse WAL (in years) 0.1 - 11 4.9 0.2 - 11.7 6.4 Conditional repayment rate NM 19.8 % 8.3% - 46.1% 16.5 % Discount rate NM 6.9 % NM 7.2 % Nonrecourse commercial loan financing liability WAL (in months) NM 4.3 NM 4.3 Weighted average prepayment speed (SMM) NM 15.6 % NM 15.3 % Discount rate NM 7.9 % NM 14.5 % Nonrecourse MSR financing liability Weighted average prepayment speed (CPR) 3.2% - 13.5% 7.6 % 0.8% - 9.2% 5.1 % Discount rate 10.0% - 12.0% 12.0 % 10.0% - 12.0% 10.2 % Deferred purchase price liabilities Deferred purchase price liabilities Discount rate NM 8.0 % NM 8.0 % TRA obligation Discount rate NM 34.3 % NM 48.3 % Fair Value of Assets and Liabilities The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis (in thousands): March 31, 2023 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 16,623,561 $ — $ — $ 16,623,561 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 8,009,079 — — 8,009,079 Fix & flip mortgage loans 365,748 — — 365,748 Loans held for investment: Reverse mortgage loans 724,306 — — 724,306 Fix & flip mortgage loans 11,787 — — 11,787 Agricultural loans 875 — — 875 Loans held for sale: Residential mortgage loans 58,751 — 58,751 — SRL 15,699 — — 15,699 Portfolio 3,044 — — 3,044 MSR 13,713 — — 13,713 Other assets: Retained bonds 47,048 — — 47,048 Total assets $ 25,873,611 $ — $ 58,751 $ 25,814,860 Liabilities HMBS related obligations $ 16,407,629 $ — $ — $ 16,407,629 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,955,875 — — 7,955,875 Nonrecourse commercial loan financing liability 75,689 — — 75,689 Nonrecourse MSR financing liability 988 — — 988 Deferred purchase price liabilities: Deferred purchase price liabilities 4,522 — — 4,522 TRA obligation 2,202 — — 2,202 Warrant liability 1,581 1,581 — — Total liabilities $ 24,448,486 $ 1,581 $ — $ 24,446,905 December 31, 2022 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 11,114,100 $ — $ — $ 11,114,100 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 7,065,477 — — 7,065,477 Fix & flip mortgage loans 389,161 — — 389,161 Loans held for investment: Reverse mortgage loans 771,724 — — 771,724 Fix & flip mortgage loans 127,469 — — 127,469 Agricultural loans 8,805 — — 8,805 Loans held for sale: Residential mortgage loans 12,123 — 12,123 — SRL 69,187 — — 69,187 Portfolio 43,272 — — 43,272 Fix & flip mortgage loans 49,402 49,402 MSR 95,096 — — 95,096 Derivative assets: Interest rate lock commitments, loan purchase commitments, forward MBS, and TBAs 907 — 907 — Interest rate swaps and futures contracts 771 771 — — Other assets: Purchase commitments - reverse mortgage loans 9,356 — — 9,356 Retained bonds 46,439 — — 46,439 Total assets $ 19,803,289 $ 771 $ 13,030 $ 19,789,488 Liabilities HMBS related obligations $ 10,996,755 $ — $ — $ 10,996,755 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,175,857 — — 7,175,857 Nonrecourse commercial loan financing liability 106,758 — — 106,758 Nonrecourse MSR financing liability 60,562 — — 60,562 Deferred purchase price liabilities: Deferred purchase price liabilities 137 — — 137 TRA obligation 3,781 — — 3,781 Derivative liabilities: Interest rate swaps and futures contracts 385 385 — — Warrant liability 1,117 1,117 — — Total liabilities $ 18,345,352 $ 1,502 $ — $ 18,343,850 Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3, in thousands): Assets Three months ended March 31, 2023 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Retained bonds Purchase commitments Beginning balance $ 12,022,098 $ 7,454,638 $ 161,861 $ 95,096 $ 46,439 $ 9,356 Total gain (loss) included in earnings 244,759 298,636 (828) (1,369) 1,031 — Purchases, settlements, and transfers: Purchases and additions 6,462,274 26,981 40,468 405 — — Sales and settlements (406,942) (333,324) (198,338) (80,419) (422) (9,356) Transfers in (out) between categories (961,660) 927,896 15,580 — — — Ending balance $ 17,360,529 $ 8,374,827 $ 18,743 $ 13,713 $ 47,048 $ — Liabilities Three months ended March 31, 2023 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability Deferred purchase price liabilities TRA Liability Beginning balance $ (10,996,755) $ (7,175,857) $ (106,758) $ (60,562) $ (137) $ (3,781) Total gain (loss) included in earnings (147,451) (237,315) 381 748 — 1,579 Purchases, settlements, and transfers: Purchases and additions (5,648,041) (639,499) (22,600) — (4,385) — Settlements 384,618 96,796 53,288 58,826 — — Ending balance $ (16,407,629) $ (7,955,875) $ (75,689) $ (988) $ (4,522) $ (2,202) Assets Three months ended March 31, 2022 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Retained Bonds Investments Beginning balance $ 11,587,382 $ 6,218,194 $ 158,156 $ 427,942 $ 55,614 $ 6,000 Total gain (loss) included in earnings (35,895) (313,720) (1,838) 52,368 (3,289) — Purchases, settlements, and transfers: Purchases and additions 1,848,155 30,342 430,806 53,444 — — Sales and settlements (612,624) (586,276) (368,656) (107,652) (1,450) — Transfers in (out) between categories (895,876) 887,450 — — — — Ending balance $ 11,891,142 $ 6,235,990 $ 218,468 $ 426,102 $ 50,875 $ 6,000 Liabilities Three months ended March 31, 2022 HMBS related obligations Deferred purchase price liabilities Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability TRA Liability Beginning balance $ (10,422,358) $ (7,912) $ (5,857,069) $ (111,738) $ (155,108) $ (29,380) Total gain (loss) included in earnings 85,582 — 105,340 254 (16,038) — Purchases, settlements, and transfers: Purchases and additions (948,682) — (1,048,499) (60,658) 7,165 — Settlements 737,327 5,000 768,072 44,502 — — Ending balance $ (10,548,131) $ (2,912) $ (6,032,156) $ (127,640) $ (163,981) $ (29,380) Fair Value Option The Company has elected to measure substantially all of its loans held for investment, loans held for sale, HMBS related obligations, and non-recourse debt at fair value under the fair value option provided for by ASC 825-10, Financial Instruments-Overall. The Company elected to apply the provisions of the fair value option to these assets and liabilities in order to align financial reporting presentation with the Company's operational and risk management strategies. Presented in the tables below are the fair value and UPB, at March 31, 2023 and December 31, 2022, of financial assets and liabilities for which the Company has elected the fair value option (in thousands): March 31, 2023 Estimated Fair Value Unpaid Principal Balance Assets at fair value under the fair value option Loans held for investment, subject to HMBS related obligations $ 16,623,561 $ 15,850,053 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 8,009,079 7,974,381 Commercial mortgage loans 365,748 373,052 Loans held for investment: Reverse mortgage loans 724,306 685,924 Commercial mortgage loans 12,662 12,946 Loans held for sale: Residential mortgage loans 58,751 67,794 Commercial mortgage loans 18,743 19,747 Liabilities at fair value under the fair value option HMBS related obligations 16,407,629 15,850,053 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,955,875 8,139,139 Nonrecourse MSR financing liability 988 988 Nonrecourse commercial loan financing liability 75,689 74,604 December 31, 2022 Estimated Fair Value Unpaid Principal Balance Assets at fair value under the fair value option Loans held for investment, subject to HMBS related obligations $ 11,114,100 $ 10,719,000 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 7,065,477 7,240,125 Commercial mortgage loans 389,161 405,970 Loans held for investment: Reverse mortgage loans 771,724 724,800 Commercial mortgage loans 136,274 143,373 Loans held for sale: Residential mortgage loans 12,123 15,529 Commercial mortgage loans 161,861 173,112 Other assets: Purchase commitments - reverse mortgage loans 9,356 9,356 Liabilities at fair value under the fair value option HMBS related obligations 10,996,755 10,719,000 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,175,857 7,819,992 Nonrecourse MSR financing liability 60,562 60,562 Nonrecourse commercial loan financing liability 106,758 105,291 Net fair value gains on loans and related obligations Provided in the table below is a summary of the components of net fair value gains on loans and related obligations (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Net fair value gains on loans and related obligations: Interest income on reverse and commercial loans $ 301,046 $ 163,694 Change in fair value of loans 266,821 (510,802) Net fair value gains (losses) on loans 567,867 (347,108) Interest expense on HMBS and nonrecourse obligations (203,050) (106,643) Change in fair value of derivatives (4,589) 165,579 Change in fair value of related obligations (183,834) 295,132 Net fair value gains (losses) on related obligations (391,473) 354,068 Net fair value gains on loans and related obligations $ 176,394 $ 6,960 As the cash flows on the underlying mortgage loans will be utilized to settle the outstanding obligations, the Company's own credit risk would not impact the fair value on the outstanding HMBS liabilities and nonrecourse debt. Fair Value of Other Financial Instruments As of March 31, 2023 and December 31, 2022, all financial instruments were either recorded at fair value or the carrying value approximated fair value with the exception of notes payable, net . Notes payable, net, includes our senior secured high-yield debt and related-party credit line recorded at the carrying value of $409.0 million and $399.4 million as of March 31, 2023 and December 31, 2022, respectively, and have a fair value of $323.1 million and $231.9 million as of March 31, 2023 and December 31, 2022, respectively. The fair value for Notes payable, |
Reverse Mortgages Portfolio Com
Reverse Mortgages Portfolio Composition | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Reverse Mortgage Portfolio Composition | 7. Reverse Mortgage Portfolio Composition The table below summarizes the composition and the outstanding UPB (in thousands) of the reverse mortgage loan portfolio serviced by the Company: March 31, 2023 December 31, 2022 Reverse mortgage loans: Reverse mortgage loans held for investment, subject to HMBS related obligations $ 15,850,053 $ 10,719,000 Reverse mortgage loans held for investment: Non-agency reverse mortgages 275,390 489,038 Loans not securitized (1) 199,145 88,029 Unpoolable loans (2) 200,686 136,657 Unpoolable tails 10,703 11,076 Total reverse mortgage loans held for investment 685,924 724,800 Reverse mortgage loans held for investment, subject to nonrecourse debt: Performing HECM buyouts 333,324 328,845 Nonperforming HECM buyouts 515,502 541,071 Non-agency reverse mortgages 7,125,555 6,370,209 Total reverse mortgage loans held for investment, subject to nonrecourse debt 7,974,381 7,240,125 Total owned reverse mortgage portfolio 24,510,358 18,683,925 Loans reclassified as government guaranteed receivable 92,905 76,033 Loans serviced for others 209,243 81,436 Total serviced reverse mortgage loan portfolio $ 24,812,506 $ 18,841,394 (1) Loans not securitized represent primarily newly originated loans and poolable tails. (2) Unpoolable loans represent primarily loans that have reached 98% of their maximum claim amount ("MCA"). The table below summarizes the reverse mortgage portfolio owned by the Company by product type (in thousands): March 31, 2023 December 31, 2022 Fixed rate loans $ 6,776,128 $ 6,548,902 Adjustable rate loans 17,734,230 12,135,023 Total owned reverse mortgage portfolio $ 24,510,358 $ 18,683,925 As of March 31, 2023 and December 31, 2022, th ere were $558.9 million and $489.3 million, |
Loans Held for Investment, Subj
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value | 8. Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value Loans held for investment, subject to HMBS related obligations, at fair value, consisted of the following for the dates indicated (in thousands): March 31, 2023 December 31, 2022 Loans held for investment, subject to HMBS related obligations - UPB $ 15,850,053 $ 10,719,000 Fair value adjustments 773,508 395,100 Total loans held for investment, subject to HMBS related obligations, at fair value $ 16,623,561 $ 11,114,100 |
Loans Held for Investment, Su_2
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value | 9. Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value Loans held for investment, subject to nonrecourse debt, at fair value, consisted of the following for the dates indicated (in thousands): March 31, 2023 December 31, 2022 Loans held for investment, subject to nonrecourse debt - UPB: Reverse mortgage loans $ 7,974,381 $ 7,240,125 Commercial mortgage loans 373,052 405,970 Fair value adjustments 27,394 (191,457) Total loans held for investment, subject to nonrecourse debt, at fair value $ 8,374,827 $ 7,454,638 The table below shows the total amount of loans held for investment, subject to nonrecourse debt, that were greater than 90 days past due and on non-accrual status (in thousands): March 31, 2023 December 31, 2022 Loans 90 days or more past due and on non-accrual status Fair value: Commercial mortgage loans $ 23,157 $ 21,325 Aggregate UPB: Commercial mortgage loans 25,242 24,023 Difference $ (2,085) $ (2,698) |
Loans Held for Investment, at F
Loans Held for Investment, at Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans Held for Investment, at Fair Value | 10. Loans Held for Investment, at Fair Value Loans held for investment, at fair value, consisted of the following for the dates indicated (in thousands): March 31, 2023 December 31, 2022 Loans held for investment - UPB: Reverse mortgage loans $ 685,924 $ 724,800 Commercial mortgage loans 12,946 143,373 Fair value adjustments 38,098 39,825 Total loans held for investment, at fair value $ 736,968 $ 907,998 As of March 31, 2023 and December 31, 2022, th ere were $2.3 million and $2.4 million, respectively, of commercial loans that were greater than 90 days past due. As of March 31, 2023 and December 31, 2022, there were $563.2 million and $745.1 million, respectively, in loans held for investment, at fair value, pledged as collateral for financing lines of credit. |
Loans Held for Sale, at Fair Va
Loans Held for Sale, at Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans Held for Sale At Fair Value | 11. Loans Held for Sale, at Fair Value Loans held for sale, at fair value, consisted of the following for the dates indicated (in thousands): March 31, 2023 December 31, 2022 Loans held for sale - UPB: Residential mortgage and home improvement loans $ 67,794 $ 15,529 Commercial mortgage loans 19,747 173,112 Fair value adjustments (10,047) (14,657) Total loans held for sale, at fair value $ 77,494 $ 173,984 The table below shows the total amount of loans held for sale that were greater than 90 days past due and on non-accrual status (in thousands): March 31, 2023 December 31, 2022 Loans 90 days or more past due and on non-accrual status Fair value: Residential mortgage and home improvement loans $ 5,984 $ 5,049 Commercial mortgage loans 993 2,817 Total fair value 6,977 7,866 Aggregate UPB: Residential mortgage loans 6,535 5,427 Commercial mortgage loans 1,185 3,405 Total aggregate UPB 7,720 8,832 Difference $ (743) $ (966) The Company originates or purchases and sells loans in the secondary mortgage market without recourse for credit losses. However, the Company at times maintains continuing involvement with the loans in the form of servicing arrangements and the liability under representations and warranties it makes to purchasers and insurers of the loans. The table below shows a reconciliation of the changes in loans held for sale for the respective periods presented below (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Beginning balance $ 173,984 $ 158,156 Originations/purchases/repurchases 79,286 430,806 Proceeds from sales (200,456) (368,656) Net transfers from loans held for investment 15,580 — Net transfers from discontinued operations 12,526 — Gain (loss) on loans held for sale, net (12,387) 5,534 Net fair value gain (loss) on loans held for sale 8,961 (7,372) Ending balance $ 77,494 $ 218,468 As of March 31, 2023 and December 31, 2022, there were $19.2 million and $172.5 million, respectively, in loans held for sale, at fair value, pledged as collateral for financing lines of credit. |
Mortgage Servicing Rights, at F
Mortgage Servicing Rights, at Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights, at Fair Value | 12. Mortgage Servicing Rights, at Fair Value The servicing portfolio associated with capitalized servicing rights consists of the following (in thousands): March 31, 2023 December 31, 2022 Fannie Mae/Freddie Mac $ 166,471 $ 7,051,851 Ginnie Mae 527,286 532,328 Private investors 1,008,263 1,018,159 Total UPB $ 1,702,020 $ 8,602,338 Weighted average interest rate 3.53 % 3.59 % The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of the following (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Beginning UPB $ 8,602,338 $ 39,299,416 Originated MSR 42,011 4,257,281 Sales MSR (6,845,346) (8,368,734) Payoffs MSR (36,793) (805,668) Other (60,190) (323,737) Ending UPB $ 1,702,020 $ 34,058,558 The activity in the MSR asset consisted of the following (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Beginning balance $ 95,096 $ 427,942 Originations 405 53,444 Sales (80,419) (107,652) Changes in fair value due to: Changes in market inputs or assumptions used in valuation model (359) 63,890 Changes in fair value due to portfolio runoff and other (1,010) (11,522) Ending balance $ 13,713 $ 426,102 The value of MSR is driven by the net cash flows associated with servicing activities. The cash flows include contractually specified servicing fees, late fees, and other ancillary servicing revenue. The fees were $1.9 million and $14.3 million for the three months ended March 31, 2023 and 2022 , respectively. These fees and changes in fair value of the MSR are recorded within fee income |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 13. Intangible Assets, Net Intangible assets, net, related to continuing operations consisted of the following (in thousands): March 31, 2023 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 27,500 $ — $ — $ 27,500 Amortizing intangibles Broker/customer relationships 9 334,700 (74,378) — 260,322 Total intangibles $ 362,200 $ (74,378) $ — $ 287,822 December 31, 2022 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 34,800 $ — $ (7,300) $ 27,500 Amortizing intangibles Broker/customer relationships 9 334,700 (65,081) — 269,619 Total intangibles $ 369,500 $ (65,081) $ (7,300) $ 297,119 Amortization expense was $9.3 million for both the three months ended March 31, 2023 and 2022. The estimated amortization expense for each of the five succeeding fiscal years and thereafter as of March 31, 2023 is as follows (in thousands): Year Ending December 31, Amount Remainder of 2023 $ 27,892 2024 37,189 2025 37,189 2026 37,189 2027 37,189 Thereafter 83,674 Total future amortization expense $ 260,322 |
Other Assets, Net
Other Assets, Net | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets, Net | 14. Other Assets, Net Other assets, net, related to continuing operations consisted of the following (in thousands): March 31, 2023 December 31, 2022 Government guaranteed receivables $ 82,980 $ 66,947 Retained bonds, at fair value 47,048 46,437 Receivables, net of allowance of $5,140 and $5,173, respectively (1) 28,612 53,008 Right-of-use assets 27,933 27,933 Prepaid expenses 16,788 10,522 Loans subject to repurchase from Ginnie Mae 16,378 15,631 Servicer advances, net of allowance of $1,831 and $2,416, respectively 5,894 7,230 Deposits 1,396 1,191 Margin deposits 540 4,318 Other 24,360 33,099 Total other assets, net $ 251,929 $ 266,316 (1) As of December 31, 2022, the Company had an outstanding note receivable balance of $20.0 million with AAG/Bloom, which is included in Receivables in the above table. As part of the closing of the AAG Transaction, the outstanding note receivable balance was forgiven. Refer to Note 4 - Acquisitions for additional detail. |
HMBS Related Obligations, at Fa
HMBS Related Obligations, at Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
HMBS Related Obligations, at Fair Value | 15. HMBS Related Obligations, at Fair Value HMBS related obligations, at fair value, consisted of the following (in thousands): March 31, 2023 December 31, 2022 Ginnie Mae loan pools - UPB $ 15,850,053 $ 10,719,000 Fair value adjustments 557,576 277,755 Total HMBS related obligations, at fair value $ 16,407,629 $ 10,996,755 Weighted average remaining life (in years) 4.4 4.0 Weighted average interest rate 5.7 % 5.0 % HMBS related obligations represent the issuance of pools of HMBS, which are guaranteed by GNMA, to third-party security holders. The Company accounts for the transfers of these advances in the related HECM loans as secured borrowings, retaining the initial HECM loans in the Condensed Consolidated Statements of Financial Condition as loans held for investment, subject to HMBS related obligations, at fair value, and recording the pooled HMBS as HMBS related obligations, at fair value. Monthly cash flows generated from the HECM loans are used to service the outstanding HMBS. T he Company was servicing 2,229 |
Nonrecourse Debt, at Fair Value
Nonrecourse Debt, at Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Nonrecourse Debt At Fair Value | 16. Nonrecourse Debt, at Fair Value Nonrecourse debt, at fair value, consisted of the following (in thousands): Issue Date Final Maturity Date Interest Rate Original Issue Amount March 31, 2023 December 31, 2022 Securitization of performing / nonperforming HECM loans July 2020 - August 2022 July 2030 - August 2032 2.69% - 9.32% $ 1,679,106 $ 924,776 $ 953,336 Securitization of non-agency reverse loans May 2018 -February 2023 March 2050 - November 2069 1.25% - 4.50% 8,799,462 6,945,852 6,598,145 Securitization of Fix & Flip loans April 2021 May 2025 2.10% - 5.40% 268,511 268,511 268,511 Total consolidated VIE nonrecourse debt UPB 8,139,139 7,819,992 Nonrecourse MSR financing liability, at fair value 988 60,562 Nonrecourse reverse loan financing liability (1) 321,708 — Nonrecourse commercial loan financing liability (2) 74,604 105,291 Fair value adjustments (503,887) (642,668) Total nonrecourse debt, at fair value $ 8,032,552 $ 7,343,177 (1) Nonrecourse reverse loan financing liability is comprised of the balance of the nonrecourse debt for the applicable period associated with a non-agency securitization. As the securitization was determined to be an unconsolidated VIE and failed sale treatment, the associated nonrecourse debt is accounted for by FoA and presented separately from the other nonrecourse debts. Refer to Note 5 - Variable Interest Entities and Securitizations for additional information. (2) Nonrecourse commercial loan financing liability is comprised of the balance of the nonrecourse debt for the applicable period associated with the CAPT securitization. As the CAPT securitization was determined to be an unconsolidated VIE and failed sale treatment, the associated nonrecourse debt is accounted for by FoA and presented separately from the other nonrecourse debts. Refer to Note 5 - Variable Interest Entities and Securitizations for additional information. Future repayment of nonrecourse debt issued by securitization trusts is dependent on the receipt of cash flows from the corresponding encumbered loans receivable. As of March 31, 2023, estimated maturities for nonrecourse debt for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Estimated Maturities 2023 $ 1,717,377 2024 2,814,270 2025 1,026,598 2026 590,687 2027 2,386,519 Thereafter — Nonrecourse MSR financing liability (1) 988 Total payments on nonrecourse debt $ 8,536,439 (1) |
Other Financing Lines of Credit
Other Financing Lines of Credit | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Other Financing Lines Of Credit | 17. Other Financing Lines of Credit The following summarizes the components of other financing lines of credit relating to continuing operations (in thousands): Outstanding borrowings at Maturity Date Interest Rate Collateral Pledged Total Capacity (1) March 31, 2023 December 31, 2022 Mortgage Lines: October 2023 Bloomberg short-term First Lien Mortgages $ 50,000 $ 6,270 $ 83,814 November 2023 Secured Overnight Financing Rate ("SOFR") + applicable margin Home Improvement Consumer Loans 50,000 37,660 7,495 N/A N/A MSR — — 10,312 N/A Bond accrual rate + applicable margin Mortgage Related Assets 38,274 38,274 37,604 Subtotal mortgage lines of credit $ 138,274 $ 82,204 $ 139,225 Reverse Lines: April 2023 - November 2023 LIBOR/SOFR/BSBY + applicable margin First Lien Mortgages $ 1,450,000 $ 520,794 $ 584,658 N/A LIBOR/Bond accrual rate + applicable margin Mortgage Related Assets 372,840 362,529 320,715 October 2027 SOFR + applicable margin MSR 70,000 61,475 33,036 May 2023 Prime + .50%; 6% floor Unsecuritized Tails 50,000 50,000 45,001 Subtotal reverse lines of credit $ 1,942,840 $ 994,798 $ 983,410 Commercial Lines: N/A N/A Encumbered Agricultural Loans $ — $ — $ 7,561 October 2023 - November 2023 SOFR/BSBY + applicable margin First Lien Mortgages 100,000 23,865 159,938 N/A N/A Second Lien Mortgages — — 25,000 January 2024 SOFR + applicable margin Mortgage Related Assets 12,500 12,500 12,500 Subtotal commercial lines of credit $ 112,500 $ 36,365 $ 204,999 Total other financing lines of credit $ 2,193,614 $ 1,113,367 $ 1,327,634 (1) Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions, and covenants of the respective agreements, including asset-eligibility requirements. Capacity amounts presented are as of March 31, 2023. The lines of credit with no capacity are terminated as of March 31, 2023. As of March 31, 2023 and December 31, 2022, the weighted average outstanding interest rates on outstanding financing lines of credit of the Company were 7.25% and 7.35%, respectively. The Company's financing arrangements and credit facilities contain various financial covenants, which primarily relate to required tangible net worth amounts, liquidity reserves, leverage ratios, and profitability. As of March 31, 2023, the Company was in compliance with its financial covenants related to required liquidity reserves, debt service coverage ratio, and tangible net worth amounts. With respect to certain financial covenants related to required profitability, the Company obtained financial covenant waivers, amendments to such financial covenants effective as of March 31, 2023, or paid off the line of credit, in order to avoid breaching such financial covenants. The terms of the Company's financing arrangements and credit facilities contain covenants, and the terms of the Company's government sponsored entities ("GSE")/seller servicer contracts contain requirements that may restrict the Company and its subsidiaries from paying distributions to its members. These restrictions include restrictions on paying distributions whenever the payment of such distributions would cause FoA or its subsidiaries to no longer be in compliance with any of its financial covenants or GSE requirements. Further, the Company is generally prohibited under Delaware law from making a distribution to a member to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of the Company (with certain exceptions) exceed the fair value of its assets. Subsidiaries of the Company are generally subject to similar legal limitations on their ability to make distributions to FoA. As of March 31, 2023, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios): Financial Covenants Requirement March 31, 2023 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 75,000 $ 77,851 $ 2,851 Liquidity 20,000 22,191 2,191 Leverage Ratio 13:1 6.8:1 37,318 FAR Adjusted Tangible Net Worth (2) $ 250,000 $ 452,738 $ 202,738 Liquidity 36,086 38,210 2,124 Leverage Ratio 6:1 3.4:1 197,508 FAH Adjusted Tangible Net Worth (2) $ 300,000 $ 487,938 $ 187,938 Liquidity 45,000 63,819 18,819 Leverage Ratio 10:1 3.7:1 309,682 (1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary. (2) This amount is based on the most restrictive financing line of credit covenant. As of December 31, 2022, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios): Financial Covenants Requirement December 31, 2022 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 100,000 $ 100,907 $ 907 Liquidity 20,000 23,368 3,368 Leverage Ratio 13:1 9.3:1 28,732 FAR Adjusted Tangible Net Worth (2) $ 250,000 $ 267,067 $ 17,067 Liquidity 24,724 28,718 3,994 Leverage Ratio 6:1 5.29:1 31,808 FAH Adjusted Tangible Net Worth (2) $ 300,000 $ 310,850 $ 10,850 Liquidity 45,000 52,270 7,270 Leverage Ratio 10:1 6.55:1 107,292 (1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary. (2) This amount is based on the most restrictive financing line of credit covenant. |
Payables and Other Liabilities
Payables and Other Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Payables and Other Liabilities | 18. Payables and Other Liabilities Payables and other liabilities related to continuing operations consisted of the following (in thousands): March 31, 2023 December 31, 2022 Accrued liabilities $ 129,360 $ 54,664 GNMA reverse mortgage buyout payable 59,846 41,768 Lease liabilities 35,029 34,391 Accrued compensation expense 25,060 19,333 Deferred purchase price liabilities (1) 19,653 3,918 Liability for loans eligible for repurchase from GNMA 16,378 15,631 Repurchase reserves 11,492 158 Deferred tax liability, net 8,318 2,367 Warrant liability 1,581 1,117 Derivative liabilities — 385 Total payables and other liabilities $ 306,717 $ 173,732 |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | 19. Litigation The Company's business is subject to legal proceedings, examinations, investigations and reviews by various federal, state, and local regulatory and enforcement agencies as well as private litigants such as the Company's borrowers or former employees. At any point in time, the Company may have open investigations with regulators or enforcement agencies, including examinations and inquiries related to its loan servicing and origination practices. These matters and other pending or potential future investigations, examinations, inquiries or lawsuits may lead to administrative or legal proceedings, and possibly result in remedies, including fines, penalties, restitution, alterations in business practices, or additional expenses and collateral costs. As a litigation or regulatory matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and reasonably estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and reasonably estimable. Once the matter is deemed to be both probable and reasonably estimable, the Company establishes an accrued liability and records a corresponding amount to litigation related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. For certain matters, the Company may consider a loss to be probable but cannot calculate a precise estimate of losses. For these matters, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material litigation and regulatory matters on an ongoing basis, in conjunction with any outside counsel handling the matter. As of March 31, 2023, there were no matters that the Company considered to be probable or reasonably possible for which they could estimate losses or a reasonable range of estimated losses. The Company is a defendant in three representative lawsuits alleging violations of the California Labor Code and brought pursuant to the California Private Attorneys General Act ("PAGA"). The cases have been coordinated. On November 4, 2022, the court ordered that each of the plaintiffs’ individual PAGA claims must be arbitrated and that their representative PAGA claims will be stayed pending a ruling by the California Supreme Court in the third-party case Adolph v. Uber Technologies, Inc. , which will determine whether the representative portion of a PAGA claim can survive following the arbitration of the individual portion of the PAGA claim. Due to the unpredictable nature of litigation generally, and the wide discretion afforded the Court in awarding civil penalties in PAGA actions, the outcome of these matters cannot be presently determined, and a range of possible losses cannot be reasonably estimated. Although the actions are being vigorously defended, the Company could, in the future, incur judgments or enter into settlements of claims that could have a negative effect on its results of operations in any particular period. Legal expenses, which include, among other things, settlements and the fees paid to external legal service providers, were $0.9 million and $0.9 million for the three months ended March 31, 2023 and 2022, respectively . These expenses are included in general and administrative expenses in the Condensed Consolidated Statements of Operations. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies Servicing of Mortgage Loans The Company has contracted with third-party providers to perform specified servicing functions on its behalf. These services include maintaining borrower contact, facilitating borrower advances, generating borrower statements, collecting and processing payments of interest and principal, and facilitating loss-mitigation strategies in an attempt to keep defaulted borrowers in their homes. The contracts are generally fixed-term arrangements, with standard notification and transition terms governing termination of such contracts. For reverse mortgages, defaults on loans leading to foreclosures may occur if borrowers fail to meet maintenance obligations, such as payment of taxes or home insurance premiums. When a default cannot be cured, the sub-servicers manage the foreclosure process and the filing of any insurance claims with HUD. The sub-servicers have responsibility for remitting timely advances and statements to borrowers and timely and accurate claims to HUD, including compliance with local, state and federal regulatory requirements. Although the Company has outsourced its servicing function, as the issuer, the Company has responsibility for all aspects of servicing of the HECM loans and related HMBS beneficial interests under the terms of the servicing contracts, state laws and regulations. Additionally, the sub-servicers are responsible for remitting payments to investors, including interest accrued, interest shortfalls and funding advances such as taxes and home insurance premiums. Advances are typically remitted by the Company to the sub-servicers on a daily basis. Contractual sub-servicing fees related to sub-servicer arrangements are generally based on a fixed dollar amount per loan and are included in general and administrative expenses in the Condensed Consolidated Statements of Operations. Unfunded Commitments The Company is required to fund further borrower advances (where the borrower has not fully drawn down the HECM, non-agency reverse mortgage, fix & flip, or agricultural loan proceeds available) and fund the payment of the borrower's obligation to pay FHA monthly insurance premiums for HECM loans. The outstanding unfunded commitments available to borrowers related to agency and non-agency reverse mortgage loans were approximately $4.7 billion as of March 31, 2023 compared to $3.1 billion as of December 31, 2022. The outstanding unfunded commitments available to borrowers related to fix & flip loans were approximately $74.3 million and $128.9 million as of March 31, 2023 and December 31, 2022, respectively. This additional borrowing capacity is primarily in the form of undrawn lines of credit. The outstanding unfunded commitments available to borrowers related to agricultural loans were approximately $6.4 million and $26.7 million as of March 31, 2023 and December 31, 2022, respectively. The Company also has commitments to purchase and sell loans totaling $0.3 million and $12.4 million, respectively, as of March 31, 2023, compared to $1.7 million and $133.6 million, respectively, as of December 31, 2022. Mandatory Repurchase Obligation The Company is required to repurchase reverse loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the MCA. Performing repurchased loans are conveyed to HUD and nonperforming repurchased loans are generally liquidated in accordance with program requirements. Loans are considered nonperforming upon events including, but not limited to, the death of the mortgagor, the mortgagor no longer occupying the property as their principal residence, or the property taxes or insurance are not being paid. As an issuer of HMBS, the Company also has the option to repurchase reverse loans out of the Ginnie Mae securitization pools without prior approval from Ginnie Mae in certain instances. These situations include the borrower requesting an additional advance that causes the outstanding principal balance to be equal to or greater than 98% of the MCA; the borrower’s loan becoming due and payable under certain circumstances; the borrower not occupying the home for greater than twelve consecutive months for physical or mental illness, and the home is not the residence of another borrower; or the borrower failing to perform in accordance with the terms of the loan. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 21. Income Taxes The Company’s effective tax rate on continuing operations for the three months ended March 31, 2023 differs from the U.S. statutory rate primarily due to anticipated state statutory income tax rates, the projected mix of earnings or loss attributable to the noncontrolling interest not allocable to FoA, the impact of discrete tax items, and changes in the valuation allowance against net deferred tax assets. The Company’s effective tax rate on continuing operations for the three months ended March 31, 2022 differs from the U.S. statutory rate primarily due to anticipated state statutory income tax rates as well as the projected mix of earnings or loss attributable to the noncontrolling interest not allocable to FoA. FoA is taxed as a corporation and is subject to U.S. federal, state, and local taxes on the income allocated to it from FoA Equity based upon FoA’s economic interest in FoA Equity as well as any stand-alone income it generates. FoA Equity and its disregarded subsidiaries, collectively, are treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, FoA Equity is not subject to U.S. federal and certain state and local income taxes. FoA Equity’s members, including FoA, are liable for U.S. federal, state, and local income taxes based on their allocable share of FoA Equity’s pass-through taxable income. FoA Equity wholly owns certain corporate subsidiaries that are regarded entities for tax purposes and subject to U.S. federal, state, and local taxes on income they generate. As such, the consolidated tax provision of FoA includes corporate taxes that it incurs based on its flow-through income from FoA Equity as well as corporate taxes that are incurred by its regarded subsidiaries. Deferred income taxes reflect the net tax effects of temporary differences between the carrying value of assets and liabilities for financial reporting purposes and the amounts reported for income tax purposes. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to those temporary differences and the expected benefits of net operating losses and carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent results of operations. During the third quarter of 2022, resulting from a reduced demand for traditional mortgage products from its previously reported Mortgage Originations and Commercial Originations segments and compressed margins, the Company decided to exit those businesses. Management assessed the existing taxable temporary differences that will reverse through the course of ordinary business and concluded the Company will not more likely than not generate sufficient taxable income to utilize the current attributes, and a valuation allowance was established for the deferred tax asset in excess of deferred tax liabilities. Management also determined that the future sources of taxable income from reversing taxable temporary differences that comprise the investment in FoA Equity deferred tax liability would only be fully realized until sale of FoA's interest in FoA Equity. Accordingly, the deferred tax liability from investment in FoA Equity has been treated as an indefinite-lived intangible and is limited by the federal net operating loss utilization rules. Tax positions taken in tax years that remain open under the statute of limitations will be subject to examinations by tax authorities. With few exceptions, the Company is no longer subject to state or local examinations by tax authorities for tax years ended December 31, 2018 or prior. |
Business Segment Reporting
Business Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | 22. Business Segment Reporting The following tables are a presentation of financial information by segment for the periods indicated (in thousands): For the three months ended March 31, 2023 Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain (loss) on sale and other income from loans held for sale, net $ (1,312) $ (11,058) $ (12,370) $ — $ (56) $ (12,426) Net fair value gains on loans and related obligations 24,475 151,919 176,394 — — 176,394 Fee income 3,180 5,463 8,643 2,953 (5,244) 6,352 Net interest expense — Interest income — 1,470 1,470 621 — 2,091 Interest expense — (23,996) (23,996) (7,560) — (31,556) Net interest expense — (22,526) (22,526) (6,939) — (29,465) Total revenues 26,343 123,798 150,141 (3,986) (5,300) 140,855 Total expenses 35,524 24,679 60,203 28,874 (5,300) 83,777 Other, net 31 — 31 905 — 936 Net income (loss) before taxes $ (9,150) $ 99,119 $ 89,969 $ (31,955) $ — $ 58,014 Depreciation and amortization $ 9,643 $ 14 $ 9,657 $ 448 $ — $ 10,105 Total assets $ 296,417 $ 26,327,259 $ 26,623,676 $ 1,912,801 $ (1,861,938) $ 26,674,539 For the three months ended March 31, 2022 Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain on sale and other income from loans held for sale, net $ — $ 10,928 $ 10,928 $ — $ (4,707) $ 6,221 Net fair value gains (losses) on loans and related obligations 105,755 (102,785) 2,970 — 3,990 6,960 Fee income 3,805 54,525 58,330 9,039 (12,196) 55,173 Net interest expense Interest income 43 1,047 1,090 94 — 1,184 Interest expense (54) (16,723) (16,777) (6,703) — (23,480) Net interest expense (11) (15,676) (15,687) (6,609) — (22,296) Total revenues 109,549 (53,008) 56,541 2,430 (12,913) 46,058 Total expenses 47,427 34,711 82,138 38,283 (13,018) 107,403 Other, net 3,214 27 3,241 (152) (105) 2,984 Net income (loss) before taxes $ 65,336 $ (87,692) $ (22,356) $ (36,005) $ — $ (58,361) Depreciation and amortization $ 9,598 $ 91 $ 9,689 $ 509 $ — $ 10,198 Total assets $ 417,791 $ 19,628,648 $ 20,046,439 $ 1,769,059 $ (1,734,835) $ 20,080,663 The Company has identified three reportable segments: Retirement Solutions, Portfolio Management, and Corporate and Other. Retirement Solutions Our Retirement Solutions segment is where we fulfill our goal to help older homeowners achieve their financial goals in retirement. This segment includes all loan origination activity for the Company, including reverse mortgage and home improvement loans. We originate or acquire reverse mortgage loans through our FAR operating subsidiary. This segment originates HECM and non-agency reverse mortgages. We securitize HECM into HMBS, which Ginnie Mae guarantees, and sell them in the secondary market while retaining the rights to service. Non-agency reverse mortgages, which complement the FHA HECM for higher value homes, may be sold as whole loans to investors or held for investment and pledged as collateral to securitized nonrecourse debt obligations. Non-agency reverse mortgage loans are not insured by the FHA. We originate reverse mortgage loans through a retail channel (consisting primarily of field offices and a centralized retail platform) and a third-party originator channel (consisting primarily of a network of mortgage brokers). Additionally, this segment originates home improvement loans through our FAM subsidiary. Through these operations, the Company assists homeowners in the financing of short-term home improvement projects such as windows, HVAC, or remodeling, and relies on a network of partner contractors across the country to acquire, interact with, and serve these customers. These home improvement loans are then sold in the secondary market through our capital markets platform. Portfolio Management Our Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services to the enterprise. As part of the vertical integration of our business, our Portfolio Management team acts as the connector between borrowers and investors. The direct connections to investors, provided by our Financial Industry Regulatory Authority registered broker-dealer, allows us to innovate and manage risk through better price and product discovery. Given our scale, we are able to work directly with investors and where appropriate, retain assets on balance sheet for attractive return opportunities. These retained investments are a source of growing and recurring earnings. The Portfolio Management segment generates revenue and earnings in the form of gains on sale of loans, fair value gains on portfolio assets, interest income, and fee income related to mortgage servicing rights, underwriting, advisory, valuation, and other ancillary services. Corporate and Other Our Corporate and Other segment consists of our corporate services groups. The Company's segments are based upon the Company's organizational structure which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on actual cost of services performed based on a direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Non-allocated corporate expenses include administrative costs of executive management and other corporate functions that are not directly attributable to the Company's operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. To reconcile the Company's consolidated results, certain inter-segment revenues and expenses are eliminated in the "Eliminations" column in the previous tables. |
Liquidity and Capital Requireme
Liquidity and Capital Requirements | 3 Months Ended |
Mar. 31, 2023 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Liquidity And Capital Requirements | 23. Liquidity and Capital Requirements Compliance Requirements FAM In addition to the covenant requirements of FAM mentioned in Note 17 - Other Financing Lines of Credit, FAM is subject to various regulatory capital requirements administered by HUD as a result of their mortgage origination and servicing activities. HUD governs non-supervised, direct endorsement mortgagees, and Ginnie Mae, Fannie Mae, and Freddie Mac, which sponsor programs that govern a significant portion of FAM’s mortgage loans sold and servicing activities. Additionally, FAM is required to maintain minimum net worth requirements for many of the states in which it sells and services loans. Each state has its own minimum net worth requirement; however, none of the state requirements are material to the consolidated financial statements. Failure to meet minimum capital requirements can result in certain mandatory remedial actions and potentially result in additional discretionary remedial actions by regulators that, if undertaken, could: (i) remove FAM’s ability to sell and service loans to or on behalf of the agencies; and (ii) have a direct material effect on FAM's financial statements, results of operations and cash flows. In accordance with the regulatory capital guidelines, FAM must meet specific quantitative measures of cash, assets, liabilities, profitability and certain off-balance sheet items calculated under regulatory accounting practices. Further, changes in regulatory and accounting standards, as well as the impact of future events on FAM’s results, may significantly affect FAM’s net worth adequacy. Among FAM’s various capital requirements related to its outstanding mortgage origination and servicing agreements, the most restrictive of these requires FAM to maintain a minimum adjusted net worth balance at the end of the most recent fiscal quarter of $38.1 million as of March 31, 2023. FAM’s actual net worth was $82.6 million as of March 31, 2023. FAM is also subject to requirements related to material declines in quarterly and two consecutive quarter tangible net worth. As of March 31, 2023, FAM was not in compliance with the Fannie Mae lender adjusted tangible net worth quarterly and two consecutive quarter requirements. As of March 31, 2023, FAM obtained all required waivers for these covenant violations. In addition, FAM is required to maintain both fidelity bond and errors and omissions i nsurance coverage at tiered levels based on the aggregate UPB of the loans serviced by FAM throughout the year. FAM is required to conduct compliance testing at least quarterly to ensure compliance with the foregoing requirements . As of March 31, 2023, FAM was in compliance with applicable requirements. FAR As an issuer of HMBS, FAR is required by Ginnie Mae to maintain minimum net worth, liquidity, and capitalization levels as well as minimum insurance levels. The net worth required is $5.0 million plus 1% of FAR’s commitment authority from Ginnie Mae. The liquidity requirement is for 20% of FAR’s required net worth to be in the form of cash or cash equivalent assets. FAR is required to maintain a ratio of 6% of net worth to total assets. As of March 31, 2023, FAR was in compliance with the minimum net worth, liquidity, capitalization levels, and insurance requirements of Ginnie Mae. The minimum net worth required of FAR by Ginnie Mae was $164.0 million as of March 31, 2023. FAR’s actual net worth calculated based on Ginnie Mae guidance was $441.4 million as of March 31, 2023. The minimum liquidity required of FAR by Ginnie Mae was $32.8 million as of March 31, 2023. FAR’s actual cash and cash equivalents were $38.2 million as of March 31, 2023. FAR’s actual ratio of net worth to total assets was below the Ginnie Mae requirement; however, FAR received a waiver for the minimum outstanding capital requirements from Ginnie Mae. Therefore, the Company was in compliance with all Ginnie Mae requirements. In addition, FAR is required to maintain both fidelity bond and errors and omissions insurance coverage at tiered levels based on the aggregate UPB of the loans serviced by FAR throughout the year. FAR is required to conduct compliance testing at least quarterly to ensure compliance with the foregoing requirements. As of March 31, 2023, FAR was in compliance with applicable requirements. Incenter Incenter Securities Group LLC ("ISG"), one of the operating subsidiaries of Incenter, operates in a highly regulated environment and is subject to federal and state laws, SEC rules and Financial Industry Regulatory Authority rules and guidance. Applicable laws and regulations restrict permissible activities and require compliance with a wide range of financial and customer-related protections. The consequences of noncompliance can include substantial monetary and nonmonetary sanctions. In addition, ISG is subject to comprehensive examination by its regulators. These regulators have broad discretion to impose restrictions and limitations on the operations of the Company and to impose sanctions for noncompliance. ISG is subject to the SEC’s Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital. ISG computes net capital under the alternative method. Under this method, the required minimum net capital is equal to $0.3 million. As of March 31, 2023, ISG met the minimum net capital requirement amounts and was, therefore, in compliance. Additionally, the ISG claims the exemption provision of Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because ISG's other business activities are limited to (1) proprietary trading; (2) receiving transaction-based compensation for referring securities transactions to other broker-dealers; and (3) participating in distributions of securities (other than firm commitment underwritings) in accordance with the requirements of paragraphs (a) or (b)(2) of Rule 15c2-4. ANTIC, an operating subsidiary of Incenter, has additional capital requirements. The State of Missouri and State of Alabama require domestic title insurance underwriters maintain minimum capital and surplus of $1.6 million and $0.2 million, respectively. Failure to comply with these provisions may result in various actions up to and including surrender of the certificate of authority. Additionally, in October 2019, ANTIC entered into a capital maintenance agreement in conjunction with the approval for the certificate of authority for California. This agreement requires ANTIC to maintain a minimum of $8.0 million in policyholder surplus. If ANTIC falls below this requirement in any given quarter, Incenter must contribute cash, cash equivalents securities or other instruments to bring ANTIC in compliance. The Company's insurance company subsidiaries met the existing minimum statutory capital and surplus requirements as of March 31, 2023. ANTIC is also required to maintain bonds, certificates of deposit and interest-bearing accounts in accordance with applicable state regulatory requirements. The total requirement was $4.0 million across all states as of March 31, 2023. The Company was in compliance with these requirements as of March 31, 2023. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 24. Related-Party Transactions Promissory Notes The Company had two Revolving Working Capital Promissory Note Agreements (the "Working Capital Promissory Notes") outstanding with BTO Urban Holdings and Libman Family Holdings, LLC, a Delaware limited liability company which are deemed affiliates of the Company. Amounts under the Working Capital Promissory Notes may be re-borrowed and repaid from time to time until the relate d maturity date. The Working Capital Promissory Notes accrue interest monthly at a rate of 6.5% per annum and mature in May 2024. These notes had outstanding amounts of $56.6 million and $46.8 million as of March 31, 2023 and December 31, 2022, respectively, recorded within notes payable, net, in the Condensed Consolidation Statements of Financial Condition. Additionally, the Company paid $0.4 million and $0 of interest related to the Working Capital Promissory Notes during the three months ended March 31, 2023 and 2022, respectively. Agricultural Loans In 2019, the Company entered into an Amended and Restated Limited Liability Company Agreement with FarmOp Capital Holdings, LLC ("FarmOp") in which the Company acquired an equity investment in FarmOp. Subsequent to this agreement, the Company agreed to purchase originated agricultural loans from FarmOp. The Company purchased agricultural loans and had total funded draw amounts of $0.0 million and $15.4 million, respectively, for the three months ended March 31, 2023. The Company purchased agricultural loans and had total funded draw amounts of $73.3 million and $88.7 million, respectively, for the three months ended March 31, 2022. The Company had promissory notes receivable outstanding with FarmOp of $4.7 million, including accrued interest, as of March 31, 2023 and December 31, 2022, respectively, which are recorded in other assets, net, in the Condensed Consolidated Statements of Financial Condition. This promissory note has an interest rate of 10% and maturity date of December 31, 2023. There is an allowance for loan losses recorded against the outstanding note receivable of $4.7 million as of March 31, 2023 and December 31, 2022, respectively. Senior Notes Related parties of FoA purchased notes in the high-yield debt offering in November 2020 in an aggregate principal amount of $135.0 million. Equity Investment On December 6, 2022, the Company entered into separate Stock Purchase Agreements (each, a “Stock Purchase Agreement”) with each of (i) BTO Urban Holdings L.L.C., Blackstone Family Tactical Opportunities Investment Partnership – NQ ESC L.P. and BTO Urban Holdings II L.P. (collectively, the “Blackstone Investor”) and (ii) Libman Family Holdings LLC (the “BL Investor” and together with the Blackstone Investor, the “Investors”). Pursuant to each such Investor’s respective Stock Purchase Agreement, on the terms and subject to the conditions set forth therein, each of the Investors will purchase 10,896,556 shares of Company Class A Common Stock for an aggregate purchase price of $15.0 million (collectively, the “Equity Investments”), representing a price per share of Company Class A Common Stock equal to the volume weighted average price per share of Company Class A Common Stock on the New York Stock Exchange over the fifteen consecutive trading days ending on December 6, |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 25. Earnings Per Share Basic net income (loss) per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding during the period. Diluted net income (loss) per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding and the effect of all dilutive common stock equivalents and potentially dilutive share based compensation awards outstanding during the period. The following tables reconcile the numerators and denominators used in the computations of both basic and diluted net income (loss) per share for the periods (in thousands, except share data and per share amounts): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Basic net income (loss) per share: Numerator Net income (loss) from continuing operations $ 55,482 $ (50,639) Less: Income (loss) from continuing operations attributable to noncontrolling interest (1) 36,755 (41,203) Net income (loss) from continuing operations attributable to holders of Class A Common Stock - basic $ 18,727 $ (9,436) Net loss from discontinued operations $ (40,890) $ (13,356) Less: Loss from discontinued operations attributable to noncontrolling interest (1) (25,217) (14,299) Net income (loss) from discontinued operations attributable to holders of Class A Common Stock - basic $ (15,673) $ 943 Denominator Weighted average shares of Class A Common Stock outstanding - basic 64,016,845 60,773,891 Basic net income (loss) per share Continuing operations $ 0.29 $ (0.16) Discontinued operations (0.24) 0.02 Basic net income (loss) per share $ 0.05 $ (0.14) (1) The Class A LLC Units of FoA Equity, held by the Continuing Unitholders and Bloom (collectively "Equity Capital Unitholders"), which comprise the noncontrolling interest in the Company, represents a participating security. Therefore, the numerator was adjusted to reduce net income (loss) by the amount of net income (loss) attributable to noncontrolling interest. Additionally, the Class B Common Stock does not participate in earnings or losses of the Company and, therefore, is not a participating security. The Class B Common Stock has not been included in either the basic or diluted net income (loss) per share calculations. Net income (loss) attributable to noncontrolling interest includes an allocation of expense related to the Amended and Restated Long-Term Incentive Plan ("A&R MLTIP"). For the three months ended March 31, 2023 For the three months ended March 31, 2022 Diluted net income (loss) per share: Numerator Net income (loss) from continuing operations attributable to holders of Class A Common Stock - basic $ 18,727 $ (9,436) Reallocation of net income (loss) from continuing operations assuming exchange of Class A LLC Units (1) 23,328 (33,925) Net income (loss) from continuing operations attributable to holders of Class A Common Stock - diluted $ 42,055 $ (43,361) Net income (loss) from discontinued operations attributable to holders of Class A Common Stock - basic $ (15,673) $ 943 Reallocation of net loss from discontinued operations assuming exchange of Class A LLC Units (1) (12,470) (14,308) Net loss from discontinued operations attributable to holders of Class A Common Stock - diluted $ (28,143) $ (13,365) Denominator Weighted average shares of Class A Common Stock outstanding - basic 64,016,845 60,773,891 Effect of dilutive securities: Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) 124,159,953 128,675,045 Forward sale contract - dilutive shares 2,124,214 — Weighted average shares of Class A Common Stock outstanding - diluted (3) 190,301,012 189,448,936 Diluted net income (loss) per share Continuing operations $ 0.22 $ (0.23) Discontinued operations (0.15) (0.07) Diluted net income (loss) per share $ 0.07 $ (0.30) (1) This adjustment assumes the reallocation of noncontrolling interest earnings, on an after-tax basis, due to the assumed exchange of all Class A LLC Units outstanding for shares of Class A Common Stock in FoA as of the beginning of the period following the if-converted method for calculating diluted net income (loss) per share. Following the terms of the A&R LLC Agreement, the Class A LLC unitholders will bear approximately 85% of the cost of any vesting associated with the Replacement RSUs and Earnout Right RSUs prior to any distribution by the Company to such Class A LLC unitholders. The remaining compensation cost associated with the Replacement RSUs and Earnout Right RSUs will be born by FoA for the share attributable to Blocker. As a result of the application of the if-converted method in arriving at diluted net income (loss) per share, the entirety of the compensation cost associated with vesting of the Replacement RSUs and Earnout Right RSUs is assumed to be included in the net income (loss) attributable to holders of the Company’s Class A Common Stock. (2) The diluted weighted average shares outstanding of Class A Common Stock includes the effects of the if-converted method to reflect the provisions of the Exchange Agreement and assumes the Class A LLC Units held by Equity Capital Unitholders, representing the noncontrolling interest, exchange their units on a one -for-one basis for shares of Class A Common Stock in FoA. In addition to the Class A LLC Units, the Company also had RSUs outstanding during the three months ended March 31, 2023 and 2022. The effects of the RSUs following the treasury stock method have been excluded from the computation of diluted net income (loss) per share as it did not yield dilutive shares. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | 26. Equity Class A Common Stock As of March 31, 2023, there were 89,838,531 shares of Class A Common Stock issued consisting of 85,580,031 shares issued and outstanding and 4,258,500 unvested shares that are subject to vesting and forfeiture. The 4,258,500 unvested shares of Class A Common Stock relate to the Sponsor Earnout. The 4,258,500 unvested shares of Class A Common Stock are not entitled to receive any dividends or other distributions, do not have any other economic rights until such shares are vested, and will not be entitled to receive back dividends or other distributions or any other form of economic “catch-up” if, and when, they become vested. The holders of the 85,580,031 issued and outstanding shares of Class A Common Stock represent the controlling interest of the Company. Pursuant to the A&R MLTIP, certain equity holders of FoA and FoA Equity are obligated to deliver a number of shares of Class A Common Stock and Class A LLC Units for restricted stock unit awards granted by the Company. During the three months ended March 31, 2023 and 2022 , in connection with FoA’s settlement of restricted stock units into shares of Class A Common Stock and pursuant to the A&R MLTIP, these equity holders delivered 98,424 and 9,836 shares, respectively, of Class A Common Stock and 582,698 and 10,804 Class A LLC Units, respectively, to the Company in satisfaction of such settlement. This delivery of shares of Class A Common Stock and Class A LLC Units to the Company offset the gross award of RSUs settled. During the three months ended March 31, 2023 , the Company elected to retire 292,360 shares, offsetting RSUs withheld to fund employee payroll taxes and instead funded those taxes with operating cash. No shares were retired for this purpose during the three months ended March 31, 2022. The future settlement of the Replacement RSUs and Earnout Rights outstanding as of March 31, 2023 will also be funded by the delivery of Class A Common Stock and Class A LLC Units from certain equity holders of FoA and FoA Equity pursuant to the A&R MLTIP. Pursuant to the Exchange Agreement, which Bloom became a party to on March 31, 2023, the Equity Capital Unitholders may elect to exchange their Class A LLC Units for shares of Class A Common Stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. During the three months ended March 31, 2023 and 2022 , in connection with FoA’s settlement of the exchange of Class A LLC Units for shares of Class A Common Stock and pursuant to the Exchange Agreement, certain equity holders delivered 3,601 and 49,696 Class A LLC Units, respectively, to the Company in exchange for the same number of shares of Class A Common Stock, respectively, in satisfaction of such settlement. Class B Common Stock As of March 31, 2023, there are 15 shares of Class B Common Stock outstanding, all holders of which are Class A LLC Unit holders. The Class B Common Stock, par value $0.0001 per share, has no economic rights but entitles each holder of at least one such share (regardless of the number of shares so held) to a number of votes that is equal to the aggregate number of Class A LLC Units held by such holder on all matters on which Class A Common Stock holders are entitled to vote. In consideration for the assets acquired on March 31, 2023, the Company issued to the Seller one share of Class B Common Stock (see Note 3 - Acquisitions). Class A LLC Units In connection with the Business Combination, the Company, FoA Equity, and the Continuing Unitholders entered into an Exchange Agreement. The Exchange Agreement sets forth the terms and conditions upon which holders of Class A LLC Units may exchange their Class A LLC Units for shares of Class A Common Stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, and reclassifications. The Equity Capital Unitholders' ownership of Class A LLC Units represents the noncontrolling interest of the Company, which is accounted for as permanent equity in the Condensed Consolidated Statements of Financial Condition. As of March 31, 2023, there were 229,140,023 Class A LLC Units outstanding. Of the 229,140,023 Class A LLC Units outstanding, 85,580,031 are held by the Class A Common Stock shareholders and 143,559,992 are held by the noncontrolling interest of the Company, including 19,692,990 issued to the Seller in consideration for the assets acquired on March 31, 2023. Additionally, the Seller is entitled to equity consideration comprised of two forms of contingently issuable Class A LLC Units: 7,058,416 Units that are equity classified and indemnity holdback units totaling up to 7,142,260 Units that are liability classified (see Note 3 - Acquisitions). |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 27. Subsequent Events The Company has evaluated subsequent events from the date of the condensed consolidated financial statements of March 31, 2023 through May 12, 2023, the date these condensed consolidated financial statements were issued. No events or transactions were identified that would have an impact on the financial position as of March 31, 2023 or results of operations of the Company for the three months ended March 31, 2023, except as follows: Lender Services Segment On April 20, 2023, Incenter entered into a Membership Interest Purchase Agreement (the “MIPA”) with Incenter Investments LLC (“II LLC”), an entity controlled by a current officer of the Company, who will separate employment upon consummation of the agreement. Pursuant to the MIPA, Incenter will sell a 70% controlling interest in Incenter Lender Services LLC, which is a new holding company set up to hold the ownership of specified operating services subsidiaries and assets of Incenter LLC (“Incenter Assets”). These Incenter Assets represent the balance of the Company’s Lender Services operations excluding BNT, ANTIC, and Incenter Solutions LLC. Consideration to the Company under the MIPA totals $17.5 million, including a closing-date cash payment of $3.5 million and a note receivable of $14.0 million. Interest on the note is due monthly, with principal due at maturity on the 5-year anniversary of the closing or sooner through II LLC’s share of distributions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements comprise the financial statements of FoA and its controlled subsidiaries for the three months ended March 31, 2023 and 2022, respectively. The condensed consolidated financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for interim financial statements and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The accompanying financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of its financial condition as of March 31, 2023 and its results of operations and cash flows for the three months ended March 31, 2023 and 2022 . The Condensed Consolidated Statement of Financial Condition at December 31, 2022 was derived from audited financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the interim periods are not necessarily indicative of the results that may be expected for any future period or for the full year. The condensed consolidated financial statements, including the significant accounting policies, should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2022 within the Company's Annual Report on Form 10-K ("Form 10-K"). There have not been any material changes to our critical accounting policies and estimates as disclosed in the Form 10-K, except for the valuation of the Company's MSR is no longer considered a critical accounting estimate. The significant accounting policies, together with the other notes that follow, are an integral part of the condensed consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates and assumptions due to factors such as changes in the economy, interest rates, secondary market pricing, prepayment assumptions, home prices, or discrete events affecting specific borrowers, and such differences could be material. |
Liquidity and Going Concern | Liquidity and Going Concern For the year ended December 31, 2022 , the Company incurred net losses of approximately $715.5 million , including operational losses in its discontinued Mortgage Originations, Commercial Originations, and Lender Services segments. Revenues generated for 2022 were negatively impacted by macroeconomic factors including persistent high inflation and increased market interest rates. These factors significantly reduced customer demand and compressed margins in our business segments. The Company also observed significantly widened market spreads for assets that we hold for investment at fair value, which combined with higher interest rates, resulted in negative fair value adjustments. These fair value losses recognized in accordance with GAAP resulted in the Company using cash during 2022 to pay down or repay certain credit facilities. During the first quarter of 2023, the Company generated $58.0 million in pre-tax income from its continuing operations, however, macroeconomic factors continued to impact our discontinued operations, resulting in a $37.5 million pre-tax net loss for discontinued operations and overall pre-tax income of $20.5 million for the Company. At March 31, 2023, the Company had total equity of $490.4 million , net of an accumulated deficit of $631.2 million . As of December 31, 2022 and March 31, 2023, the Company was in violation of the profitability and other covenants for certain of its warehouse lending facilities. The Company has subsequently obtained financial covenant waivers, amendments to such financial covenants, or paid off the lines of credit, in order to avoid breaching such financial covenants. When evaluated in the aggregate, and before consideration of management’s plans, these conditions raise questions as to our ability to meet our obligations and covenants for the twelve-month and a day period from the date of the issuance of the condensed consolidated financial statements. To address the conditions noted above, Management has taken certain actions, including the prior extension of its revolving working capital lines of credit which mature on May 15, 2024, and the actions described in Note 3 - Acquisitions and Note 4 - Discontinued Operations, and is implementing the following plans and actions that we believe will address the Company’s liquidity needs over at least the twelve-month period and a day from the date of the issuance of the condensed consolidated financial statements. On February 1, 2023, the Company entered into an agreement to sell BNT and ANTIC for a cash purchase price of $100.0 million , which is expected to close in the third quarter 2023. Additionally, the Company expects to continue to renew its warehouse lines of credit in the normal course of its operations at terms consistent with its operating needs. The Company believes management’s plans, as described above, combined with its normal operating results will provide sufficient liquidity to meet the financial obligations and covenants over at least the twelve-month and a day period from the date the condensed consolidated financial statements are issued and that the execution of these plans is probable. |
Asset Acquisitions and Business Combinations | Asset Acquisitions and Business Combinations In accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), as of the acquisition date, the Company evaluates acquisitions to determine whether the Company has acquired a business or a group of assets. The evaluation includes a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The results of this evaluation impacts whether the Company accounts for an acquisition under business combination or asset acquisition guidance. If the screen test is met, the acquisition is not considered to be a business, and is instead accounted for as an asset acquisition. Under ASC 805, asset acquisitions are measured following a cost accumulation and allocation model, whereby the costs to acquire the assets, including transaction costs, are accumulated and then allocated to the individual assets and liabilities acquired based upon their estimated fair values. No goodwill or bargain purchase gain is recognized in an asset acquisition. The Company applies the acquisition method to all transactions and other events in which the entity obtains control over one or more other businesses. Under business combination, assets acquired and liabilities assumed are measured at fair value as of the acquisition date. Liabilities related to contingent consideration are recognized at the acquisition date and re-measured at fair value in each subsequent reporting period. Goodwill is recognized if the consideration transferred exceeds the fair value of the net assets acquired. Under ASC 805, there is an option to apply push-down accounting, which establishes a new basis for the assets and liabilities of the acquired company based on a “push-down” of the acquirer’s stepped-up basis. The push-down accounting election is made in the reporting period in which the change in control event occurs. Refer to Note 3 - Acquisitions for further information about the Company’s acquisition related transactions. |
Recently Adopted Accounting Guidance and Recently Issued Accounting Guidance, Not Yet Adopted | Recently Adopted Accounting Guidance Standard Description Effective Date Effect on Condensed Consolidated Financial Statements Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-08 to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) Recognition of an acquired contract liability and (2) Payment terms and their effect on subsequent revenue recognized by the acquirer. The amendments in this ASU do not affect the accounting for other assets or liabilities that may arise from revenue contracts with customers in accordance with Topic 606, such as refund liabilities, or in a business combination, such as customer-related intangible assets and contract-based intangible assets. January 1, 2023 This ASU is effective for all business combinations occurring after January 1, 2023. The adoption of this standard did not have a material impact on our condensed consolidated financial statements and related disclosures. Recently Issued Accounting Guidance, Not Yet Adopted as of March 31, 2023 Standard Description Date of Planned Adoption Effect on Condensed Consolidated Financial Statements ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2021-01, Reference Rate Reform (Topic 848): Codification Clarification ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 The amendments in this Update provide temporary optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter-Bank Offered Rate ("LIBOR") or other interbank offered rates expected to be discontinued. In January 2021, FASB issued an Update which refines the scope of Topic 848 and clarifies the guidance issued to facilitate the effects of reference rate reform on financial reporting. The amendment permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements and calculating price alignment interest in connection with reference rate reform activities. In December 2022, the FASB issued ASU 2022-06 that defers the sunset date for applying the reference rate reform relief in Topic 848 to December 31, 2024 (originally December 31, 2022), thereby extending the period over which entities can apply the guidance in ASU 2020-04, which provides “optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.” TBD This ASU is effective from March 12, 2020 through December 31, 2024. The Company continues to monitor the impact associated with reference rate reform, and will apply the amendments in these updates to account for contract modifications due to changes in reference rates once those occur. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The amendments in this Update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments in this Update also require the following disclosures for equity securities subject to contractual sale restrictions: 1. The fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet January 1, 2024 This ASU is effective for fiscal years beginning after December 15, 2023. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. |
Discontinued Operations And Assets Held For Sale | Discontinued Operations and Assets Held for Sale The Company classifies assets and liabilities as held for sale when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. We also consider whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate it is unlikely significant changes to the plan will be made or the plan will be withdrawn. In accordance with ASC 205, Presentation of Financial Statements ("ASC 205") , we classify operations as discontinued when they meet all the criteria to be classified as held for sale and when the sale represents a strategic shift that will have a major impact on our financial condition and results of operations. The Company considers a component of the entity that is being exited to be discontinued operations when all operations, including wind-down operations, cease. |
Business Segment Reporting | The Company has identified three reportable segments: Retirement Solutions, Portfolio Management, and Corporate and Other. Retirement Solutions Our Retirement Solutions segment is where we fulfill our goal to help older homeowners achieve their financial goals in retirement. This segment includes all loan origination activity for the Company, including reverse mortgage and home improvement loans. We originate or acquire reverse mortgage loans through our FAR operating subsidiary. This segment originates HECM and non-agency reverse mortgages. We securitize HECM into HMBS, which Ginnie Mae guarantees, and sell them in the secondary market while retaining the rights to service. Non-agency reverse mortgages, which complement the FHA HECM for higher value homes, may be sold as whole loans to investors or held for investment and pledged as collateral to securitized nonrecourse debt obligations. Non-agency reverse mortgage loans are not insured by the FHA. We originate reverse mortgage loans through a retail channel (consisting primarily of field offices and a centralized retail platform) and a third-party originator channel (consisting primarily of a network of mortgage brokers). Additionally, this segment originates home improvement loans through our FAM subsidiary. Through these operations, the Company assists homeowners in the financing of short-term home improvement projects such as windows, HVAC, or remodeling, and relies on a network of partner contractors across the country to acquire, interact with, and serve these customers. These home improvement loans are then sold in the secondary market through our capital markets platform. Portfolio Management Our Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services to the enterprise. As part of the vertical integration of our business, our Portfolio Management team acts as the connector between borrowers and investors. The direct connections to investors, provided by our Financial Industry Regulatory Authority registered broker-dealer, allows us to innovate and manage risk through better price and product discovery. Given our scale, we are able to work directly with investors and where appropriate, retain assets on balance sheet for attractive return opportunities. These retained investments are a source of growing and recurring earnings. The Portfolio Management segment generates revenue and earnings in the form of gains on sale of loans, fair value gains on portfolio assets, interest income, and fee income related to mortgage servicing rights, underwriting, advisory, valuation, and other ancillary services. Corporate and Other Our Corporate and Other segment consists of our corporate services groups. The Company's segments are based upon the Company's organizational structure which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on actual cost of services performed based on a direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Non-allocated corporate expenses include administrative costs of executive management and other corporate functions that are not directly attributable to the Company's operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. To reconcile the Company's consolidated results, certain inter-segment revenues and expenses are eliminated in the "Eliminations" column in the previous tables. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the consideration transferred and the major classes of assets acquired and liabilities assumed in relation to the March 31, 2023 acquisition (in thousands): Consideration transferred: FoA Class B Common Stock (1) (Note 26 - Equity) $ — Cash consideration (4) 3,100 Notes payable to Seller 4,500 Pay off indebtedness (4) 136,984 Initial equity consideration – Class A LLC Units (2) (Note 26 - Equity) 24,419 Deferred equity consideration – Class A LLC Units (3) (Note 26 - Equity) 13,137 Other liabilities assumed 8,429 Buyer transaction expenses (4) 770 Forgiveness of bridge working capital notes payable 24,034 Total cost $ 215,373 Assets acquired: Loans held for investment, subject to HMBS related obligations $ 5,448,712 Loans held for investment 138,270 Fixed assets and leasehold improvements 2,400 Lease asset 491 Other assets 6,270 Total assets acquired $ 5,596,143 Liabilities assumed: HMBS related obligations $ 5,354,372 Lease liabilities 492 Payables and other liabilities 25,906 Total liabilities assumed 5,380,770 Net identifiable assets acquired $ 215,373 (1) Bloom Retirement Holdings Inc., formerly known as American Advisors Group ("Seller" or "AAG/Bloom") is entitled to one share of FoA Class B Common Stock. Class B Common Stock has no economic rights but entitles each holder of at least one such share (regardless of the number of shares held) to a number of votes that is equal to the aggregate number of Class A LLC Units held by the holder on all matters on which Class A Common Stockholders are entitled to vote. The fair value of the Class B Common Stock was determined to be negligible as there are no economic rights associated with the Class B Common Stock. (2) At the closing of the AAG Transaction, FoA Equity issued 19,692,990 units of Class A LLC units to the Seller, which hold 1:1 conversion rights for Class A Common Stock of FoA. At the closing date, the fair value of these Class A LLC units were equal to the Class A Common Stock share price of $1.24 per share. (3) The deferred equity consideration is comprised of two forms of issuable Class A LLC Units; 7,058,416 units with a fair value of $8.7 million that are equity classified and indemnity holdback units totaling up to 7,142,260 units with a fair value of $4.4 million that are liability classified. The indemnity holdback units to be issued to the Seller are based on set thresholds and, subject to meeting the control condition, are settled two to are issued three years following the closing date. Management has included the fair value of indemnity holdback units, reduced for estimated litigation liabilities and indemnifiable loan losses, above in the consideration given to the Seller. (4) Amounts represent the cash portion of the consideration paid to acquire the net assets of AAG/Bloom. Total cash consideration was $140.9 million. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Assets Cash and cash equivalents $ 33,828 $ 36,212 Restricted cash 311 311 Loans held for sale, at fair value — 141,994 Derivative assets 11 676 Fixed assets and leasehold improvements, net 9,649 9,884 Intangible assets, net 63,580 77,436 Other assets, net 44,071 46,847 Assets of discontinued operations $ 151,450 $ 313,360 Liabilities Other financing lines of credit $ — $ 127,735 Payables and other liabilities 66,302 99,379 Liabilities of discontinued operations $ 66,302 $ 227,114 The following table summarizes the major components of net loss from discontinued operations for the three months ended March 31, 2023 and 2022 (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Revenues Gain on sale and other income from loans held for sale, net $ 396 $ 112,131 Net fair value gains on loans and related obligations 308 3,475 Fee income 32,628 102,431 Net interest income (expense): Interest income 517 12,689 Interest expense (820) (9,350) Net interest income (expense) (303) 3,339 Total revenues 33,029 221,376 Expenses Salaries, benefits, and related expenses 30,851 149,977 Occupancy, equipment rentals, and other office related expenses 972 5,648 General and administrative expenses 28,533 86,508 Total expenses 60,356 242,133 Impairment of other assets (1) (1,055) — Other, net (2) (9,089) 1,788 Net loss from discontinued operations before income taxes (37,471) (18,969) Provision (benefit) for income taxes from discontinued operations 3,419 (5,613) Net loss from discontinued operations (40,890) (13,356) Net loss attributable to noncontrolling interest from discontinued operations (25,217) (14,299) Net income (loss) from discontinued operations attributable to controlling interest $ (15,673) $ 943 (1) The Company evaluates the carrying value of long-lived assets, including the fixed assets, leasehold improvements as well as right-of-use assets in operating leases when indicators of impairment exist in accordance with ASC 360, Property, Plant, and Equipment. Based on the analysis, the Company recognized an impairment charge following the sale of commercial originations segment. (2) Amount includes a loss on disposal of $10.2 million for the three months ended March 31, 2023. The Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2023 and 2022 included the following material activities related to discontinued operations (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Gain on sale and other income from loans held for sale, net $ 396 $ 112,131 Unrealized fair value changes on loans, related obligations, and derivatives 308 3,475 Impairment of intangibles and other assets 1,055 — Depreciation and amortization 2,778 6,466 Acquisition of fixed assets (1,815) (2,612) |
Variable Interest Entities an_2
Variable Interest Entities and Securitizations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents the assets and liabilities of the Company's consolidated VIEs, which are included in the Condensed Consolidated Statements of Financial Condition, and excludes intercompany balances, except for retained bonds and beneficial interests (in thousands): March 31, 2023 December 31, 2022 ASSETS Restricted cash $ 183,210 $ 173,714 Loans held for investment, subject to nonrecourse debt, at fair value 7,953,455 7,340,528 Other assets, net 87,369 75,977 TOTAL ASSETS $ 8,224,034 $ 7,590,219 LIABILITIES Nonrecourse debt, at fair value $ 8,006,545 $ 7,479,918 Payables and other liabilities 742 757 TOTAL VIE LIABILITIES 8,007,287 7,480,675 Retained bonds and beneficial interests eliminated in consolidation (374,063) (304,061) TOTAL CONSOLIDATED LIABILITIES $ 7,633,224 $ 7,176,614 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement inputs and valuation techniques | Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and the details of the valuation models, key inputs to those models and significant assumptions utilized. Within the assumption tables presented, not meaningful ("NM") refers to a range of inputs that is too broad to provide meaningful information to the user or to an input that has no range and consists of a single data point. Instrument Valuation techniques Classification of Fair Value Hierarchy Assets Loans held for investment, subject to HMBS related obligations (1) HECM loans - securitized into Government National Mortgage Association ("Ginnie Mae" or "GNMA") HMBS These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the loan portfolio using conditional prepayment rate ("CPR"), loss frequency and severity, borrower draw, and discount rate assumptions. Level 3 Loans held for investment, subject to nonrecourse debt (1) HECM buyouts - securitized (nonperforming) These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using CPR, loss frequency, loss severity, and discount rate assumptions. Level 3 HECM buyouts - securitized (performing) These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using weighted average remaining life ("WAL"), CPR, loss severity, and discount rate assumptions. Level 3 Non-agency reverse mortgage - securitized These loans are valued utilizing a present value methodology that discounts estimated projected cash flows over the life of the portfolio using WAL, loan to value ("LTV"), CPR, loss severity, home price appreciation ("HPA"), and discount rate assumptions. Level 3 Fix & flip mortgage loans This product is valued using a discounted cash flow model utilizing prepayment rate (single monthly mortality or "SMM"), discount rate, and loss rate assumptions. Level 3 (1) The Company aggregates loan portfolios based upon the underlying securitization trust and values these loans using these aggregated pools. The range of inputs provided are based upon the range of inputs utilized for each securitization trust. Loans held for investment Inventory buy-outs The fair value of repurchased loans is based on expected cash proceeds of the liquidation of the underlying properties and expected claim proceeds from the Department of Housing and Urban Development ("HUD"). The primary assumptions utilized in valuing nonperforming repurchased loans include CPR, loss frequency, loss severity, and discount rate. Termination proceeds are adjusted for expected loss frequencies and severities to arrive at net proceeds that will be provided upon final resolution, including assignments to FHA. Historical experience is utilized to estimate the loss rates resulting from scenarios where FHA insurance proceeds are not expected to cover all principal and interest outstanding and, as servicer, the Company is exposed to losses upon resolution of the loan. Level 3 Non-agency reverse mortgage The fair value of non-agency reverse mortgage loans is based on values for investments with similar investment grade ratings and the value the Company would expect to receive if the whole loans were sold to an investor. The Company values non-agency reverse mortgage loans utilizing a present value methodology that discounts estimated projected cash flows over the life of the loan portfolio. The primary assumptions utilized in valuing the loans include LTV, CPR, loss severity, HPA, and discount rate. Level 3 Fix & flip mortgage loans This product is valued using a discounted cash flow ("DCF") model with SMM, discount rate, and loss rate assumptions. Level 3 Agricultural loans The product is valued using a DCF model with discount rate, prepayment rate, and default rate assumptions. Level 3 Loans held for sale Residential mortgage loans This includes all mortgage loans that can be sold to the agencies, which are valued predominantly by published forward agency prices. This will also include all non-agency loans where recently negotiated market prices for the loan pool exist with a counterparty (which approximates fair value), or quoted market prices for similar loans are available. Level 2 Single Rental Loan ("SRL") This product is valued using a DCF model utilizing CPR, discount rate, and constant default rate ("CDR") assumptions. Level 3 Portfolio loans This product is valued using a DCF model utilizing CPR, discount rate, and CDR assumptions. Level 3 Mortgage Servicing Rights MSR The Company valued MSR internally through a DCF analysis and calculated using a pricing model. This pricing model is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions such as discount rate and weighted average CPR. Level 3 Derivative assets/liabilities Forward mortgage-backed securities ("MBS") and To Be Announced Securities ("TBAs") This product is valued using forward dealer marks from the Company's approved counterparties, forward prices with dealers in such securities, or internally-developed third-party models utilizing observable market inputs. Level 2 Interest rate swaps and futures contracts This product is valued using quoted market prices. Level 1 Other assets Retained bonds Management obtains third-party valuations to assess the reasonableness of the fair value calculations provided by the internal valuation model. The primary assumptions utilized include weighted average life remaining and discount rate. Level 3 Investments To the extent market prices are not observable, the Company engages third-party valuation experts to assist in determining the fair value of these investments. The values are determined utilizing a market approach which estimates fair value based on what other participants in the market have paid for reasonably similar assets that have been sold within a reasonable period from the valuation date. Level 3 Purchase Commitments - reverse mortgage loans Purchase commitments are valued based on the value of the underlying loan. These loans are valued based on an expected margin on sale of 3.00% as of December 31, 2022. There were not any reverse mortgage loan purchase commitments as of March 31, 2023. Level 3 Liabilities HMBS related obligations HMBS related obligations The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The estimated fair value of the HMBS related obligations also includes the consideration required by a market participant to transfer the HECM and HMBS servicing obligations, including exposure resulting from shortfalls in FHA insurance proceeds as well as assumptions that it believes a market participant would consider in valuing the liability, including, but not limited to, assumptions for repayment, costs to transfer servicing obligations, shortfalls in FHA insurance proceeds, and discount rates. The significant unobservable inputs used in the measurement include CPR and discount rates. Level 3 Nonrecourse debt Nonrecourse reverse mortgage loans financing liability The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The significant unobservable inputs used in the measurement include WAL, CPR, and discount rates. Level 3 Nonrecourse commercial loan financing liability The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liability. The primary assumptions utilized include WAL, SMM, and discount rates. The Company estimates prepayment speeds giving consideration that the Company may in the future transfer additional loans to the trust, subject to the availability of funds provided for within the trust. Level 3 Nonrecourse MSR financing liability Consistent with the underlying MSR, fair value is derived through a DCF analysis and calculated using a pricing model. This pricing model is based on the objective characteristics of the portfolio (loan amount, note rate, etc.) and commonly used industry assumptions including CPR and discount rate. Level 3 Deferred purchase price liabilities Deferred purchase price liabilities These are measured using a present value of future payments utilizing discount rate assumptions. Level 3 Tax Receivable Agreements ("TRA") obligation The fair value is derived through the use of a DCF model. The significant unobservable assumptions used in the DCF include the ability to utilize tax attributes based on current tax forecasts, a constant U.S. federal income tax rate, and a discount rate. Level 3 Warrant liability Warrants The warrants are publicly traded and are valued based on the closing market price of the applicable date of the Condensed Consolidated Statements of Financial Condition. Level 1 March 31, 2023 December 31, 2022 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Assets Loans held for investment, subject to HMBS related obligations Conditional repayment rate NM 19.3 % NM 21.9 % Loss frequency NM 4.0 % NM 4.1 % Loss severity 2.4% - 10.9% 2.5 % 2.4% - 12.1% 2.7 % Discount rate NM 4.7 % NM 5.0 % Average draw rate NM 1.1 % NM 1.1 % Loans held for investment, subject to nonrecourse debt: HECM buyouts - securitized (nonperforming) Conditional repayment rate NM 38.4 % NM 39.2 % Loss frequency 23.1% - 100.0% 51.2 % 23.1% - 100% 51.7 % Loss severity 2.4% - 10.9% 4.9 % 2.4% - 12.1% 5.2 % Discount rate NM 8.5 % NM 8.7 % HECM buyouts - securitized (performing) WAL (in years) NM 7.9 NM 8.0 Conditional repayment rate NM 15.6 % NM 15.2 % Loss severity 2.4% - 10.9% 4.8 % 2.4% - 12.1% 4.8 % Discount rate NM 7.9 % NM 8.2 % March 31, 2023 December 31, 2022 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Non-agency reverse mortgage loans - securitized WAL (in years) NM 9.7 NM 9.7 LTV 0.0% - 77.0% 45.6 % 0.0% - 74.7% 43.1 % Conditional repayment rate NM 14.4 % NM 14.3 % Loss severity NM 10.0 % NM 10.0 % HPA (10.2)% - 7.8% 3.8 % (10.1)% - 7% 3.8 % Discount rate NM 6.6 % NM 7.1 % Fix & flip mortgage loans - securitized Prepayment rate (SMM) NM 11.2 % NM 11.2 % Discount rate NM 14.1 % NM 17.5 % Loss rate NM 0.5 % NM 0.5 % Loans held for investment: Inventory buy-outs Conditional repayment rate NM 41.2 % NM 41.3 % Loss frequency NM 49.0 % NM 47.6 % Loss severity 2.4% - 10.9% 3.8 % 2.4% - 12.1% 5.6 % Discount rate NM 8.5 % NM 8.7 % Non-agency reverse mortgage loans WAL (in years) NM 11.4 NM 12 LTV 0.1% - 74.6% 36.7 % 0.1% - 67.9% 36.4 % Conditional repayment rate NM 14.1 % NM 13.8 % Loss severity NM 10.0 % NM 10.0 % HPA (10.2)% - 7.8% 3.6 % (10.1)% - 7.3% 3.6 % Discount rate NM 6.6 % NM 7.1 % Fix & flip mortgage loans Prepayment rate (SMM) NM 10.1 % NM 9.5 % Discount rate 13.0% - 20.5% 15.6 % 16.3% - 25.8% 16.6 % Loss rate NM 0.2 % NM 0.2 % Agricultural loans Discount rate NM 9.5 % NM 9.7 % Prepayment rate (SMM) 19.0% - 100.0% 74.1 % 11.0% - 100.0% 11.8 % Default rate (CDR) 0.0% - 1.0% 0.9 % 0.0% - 1.0% 0.9 % Loans held for sale: SRL Prepayment rate (CPR) 18.5% - 25.0% 19.4 % 18.5% - 25.0% 19.7 % Discount rate NM 8.4 % NM 8.3 % Default rate (CDR) NM 1.0 % 0.0% - 0.0% 1.0 % Portfolio loans Prepayment rate (CPR) 0.0% - 23.7% 14.0 % 0.0% - 24.3% 18.4 % Discount rate NM 10.7 % NM 10.9 % Default rate (CDR) NM 1.0 % NM 1.0 % March 31, 2023 December 31, 2022 Instrument / Unobservable Inputs Range Weighted Average Range Weighted Average Mortgage Servicing Rights Weighted average prepayment speed (CPR) 0.8% - 12.2% 8.4 % 1.0% - 8.5% 6.4 % Discount rate NM 11.5 % NM 10.1 % Other assets: Retained bonds WAL (in years) 2.4 - 23.9 4.7 2.4 - 24.1 4.9 Discount rate (18.5)% - 11.9% 6.2 % (16.8)% - 12.2% 6.9 % Liabilities HMBS related obligations Conditional repayment rate NM 19.0 % NM 21.8 % Discount rate NM 4.6 % NM 5.0 % Nonrecourse debt: Reverse mortgage loans Performing/Nonperforming HECM securitizations WAL (in years) 1.3 - 1.4 1.4 1.5 - 1.6 1.6 Conditional repayment rate 17.6% - 20.0% 18.9 % 19.9% - 22.2% 21.1 % Discount rate NM 8.7 % NM 8.6 % Securitized non-agency reverse WAL (in years) 0.1 - 11 4.9 0.2 - 11.7 6.4 Conditional repayment rate NM 19.8 % 8.3% - 46.1% 16.5 % Discount rate NM 6.9 % NM 7.2 % Nonrecourse commercial loan financing liability WAL (in months) NM 4.3 NM 4.3 Weighted average prepayment speed (SMM) NM 15.6 % NM 15.3 % Discount rate NM 7.9 % NM 14.5 % Nonrecourse MSR financing liability Weighted average prepayment speed (CPR) 3.2% - 13.5% 7.6 % 0.8% - 9.2% 5.1 % Discount rate 10.0% - 12.0% 12.0 % 10.0% - 12.0% 10.2 % Deferred purchase price liabilities Deferred purchase price liabilities Discount rate NM 8.0 % NM 8.0 % TRA obligation Discount rate NM 34.3 % NM 48.3 % |
Summary of the recognized assets and liabilities that are measured at fair value on a recurring basis | The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis (in thousands): March 31, 2023 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 16,623,561 $ — $ — $ 16,623,561 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 8,009,079 — — 8,009,079 Fix & flip mortgage loans 365,748 — — 365,748 Loans held for investment: Reverse mortgage loans 724,306 — — 724,306 Fix & flip mortgage loans 11,787 — — 11,787 Agricultural loans 875 — — 875 Loans held for sale: Residential mortgage loans 58,751 — 58,751 — SRL 15,699 — — 15,699 Portfolio 3,044 — — 3,044 MSR 13,713 — — 13,713 Other assets: Retained bonds 47,048 — — 47,048 Total assets $ 25,873,611 $ — $ 58,751 $ 25,814,860 Liabilities HMBS related obligations $ 16,407,629 $ — $ — $ 16,407,629 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,955,875 — — 7,955,875 Nonrecourse commercial loan financing liability 75,689 — — 75,689 Nonrecourse MSR financing liability 988 — — 988 Deferred purchase price liabilities: Deferred purchase price liabilities 4,522 — — 4,522 TRA obligation 2,202 — — 2,202 Warrant liability 1,581 1,581 — — Total liabilities $ 24,448,486 $ 1,581 $ — $ 24,446,905 December 31, 2022 Total Fair Value Level 1 Level 2 Level 3 Assets Loans held for investment, subject to HMBS related obligations $ 11,114,100 $ — $ — $ 11,114,100 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 7,065,477 — — 7,065,477 Fix & flip mortgage loans 389,161 — — 389,161 Loans held for investment: Reverse mortgage loans 771,724 — — 771,724 Fix & flip mortgage loans 127,469 — — 127,469 Agricultural loans 8,805 — — 8,805 Loans held for sale: Residential mortgage loans 12,123 — 12,123 — SRL 69,187 — — 69,187 Portfolio 43,272 — — 43,272 Fix & flip mortgage loans 49,402 49,402 MSR 95,096 — — 95,096 Derivative assets: Interest rate lock commitments, loan purchase commitments, forward MBS, and TBAs 907 — 907 — Interest rate swaps and futures contracts 771 771 — — Other assets: Purchase commitments - reverse mortgage loans 9,356 — — 9,356 Retained bonds 46,439 — — 46,439 Total assets $ 19,803,289 $ 771 $ 13,030 $ 19,789,488 Liabilities HMBS related obligations $ 10,996,755 $ — $ — $ 10,996,755 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,175,857 — — 7,175,857 Nonrecourse commercial loan financing liability 106,758 — — 106,758 Nonrecourse MSR financing liability 60,562 — — 60,562 Deferred purchase price liabilities: Deferred purchase price liabilities 137 — — 137 TRA obligation 3,781 — — 3,781 Derivative liabilities: Interest rate swaps and futures contracts 385 385 — — Warrant liability 1,117 1,117 — — Total liabilities $ 18,345,352 $ 1,502 $ — $ 18,343,850 |
Fair value, assets measured on recurring basis, unobservable input reconciliation | Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3, in thousands): Assets Three months ended March 31, 2023 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Retained bonds Purchase commitments Beginning balance $ 12,022,098 $ 7,454,638 $ 161,861 $ 95,096 $ 46,439 $ 9,356 Total gain (loss) included in earnings 244,759 298,636 (828) (1,369) 1,031 — Purchases, settlements, and transfers: Purchases and additions 6,462,274 26,981 40,468 405 — — Sales and settlements (406,942) (333,324) (198,338) (80,419) (422) (9,356) Transfers in (out) between categories (961,660) 927,896 15,580 — — — Ending balance $ 17,360,529 $ 8,374,827 $ 18,743 $ 13,713 $ 47,048 $ — Assets Three months ended March 31, 2022 Loans held for investment Loans held for investment, subject to nonrecourse debt Loans held for sale MSR Retained Bonds Investments Beginning balance $ 11,587,382 $ 6,218,194 $ 158,156 $ 427,942 $ 55,614 $ 6,000 Total gain (loss) included in earnings (35,895) (313,720) (1,838) 52,368 (3,289) — Purchases, settlements, and transfers: Purchases and additions 1,848,155 30,342 430,806 53,444 — — Sales and settlements (612,624) (586,276) (368,656) (107,652) (1,450) — Transfers in (out) between categories (895,876) 887,450 — — — — Ending balance $ 11,891,142 $ 6,235,990 $ 218,468 $ 426,102 $ 50,875 $ 6,000 |
Fair value, liabilities measured on recurring basis, unobservable input reconciliation | Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3, in thousands): Liabilities Three months ended March 31, 2023 HMBS related obligations Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability Deferred purchase price liabilities TRA Liability Beginning balance $ (10,996,755) $ (7,175,857) $ (106,758) $ (60,562) $ (137) $ (3,781) Total gain (loss) included in earnings (147,451) (237,315) 381 748 — 1,579 Purchases, settlements, and transfers: Purchases and additions (5,648,041) (639,499) (22,600) — (4,385) — Settlements 384,618 96,796 53,288 58,826 — — Ending balance $ (16,407,629) $ (7,955,875) $ (75,689) $ (988) $ (4,522) $ (2,202) Liabilities Three months ended March 31, 2022 HMBS related obligations Deferred purchase price liabilities Nonrecourse debt in consolidated VIE trusts Nonrecourse commercial loan financing liability Nonrecourse MSR financing liability TRA Liability Beginning balance $ (10,422,358) $ (7,912) $ (5,857,069) $ (111,738) $ (155,108) $ (29,380) Total gain (loss) included in earnings 85,582 — 105,340 254 (16,038) — Purchases, settlements, and transfers: Purchases and additions (948,682) — (1,048,499) (60,658) 7,165 — Settlements 737,327 5,000 768,072 44,502 — — Ending balance $ (10,548,131) $ (2,912) $ (6,032,156) $ (127,640) $ (163,981) $ (29,380) |
Summary of the fair value and unpaid principal balance ("UPB") | Presented in the tables below are the fair value and UPB, at March 31, 2023 and December 31, 2022, of financial assets and liabilities for which the Company has elected the fair value option (in thousands): March 31, 2023 Estimated Fair Value Unpaid Principal Balance Assets at fair value under the fair value option Loans held for investment, subject to HMBS related obligations $ 16,623,561 $ 15,850,053 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 8,009,079 7,974,381 Commercial mortgage loans 365,748 373,052 Loans held for investment: Reverse mortgage loans 724,306 685,924 Commercial mortgage loans 12,662 12,946 Loans held for sale: Residential mortgage loans 58,751 67,794 Commercial mortgage loans 18,743 19,747 Liabilities at fair value under the fair value option HMBS related obligations 16,407,629 15,850,053 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,955,875 8,139,139 Nonrecourse MSR financing liability 988 988 Nonrecourse commercial loan financing liability 75,689 74,604 December 31, 2022 Estimated Fair Value Unpaid Principal Balance Assets at fair value under the fair value option Loans held for investment, subject to HMBS related obligations $ 11,114,100 $ 10,719,000 Loans held for investment, subject to nonrecourse debt: Reverse mortgage loans 7,065,477 7,240,125 Commercial mortgage loans 389,161 405,970 Loans held for investment: Reverse mortgage loans 771,724 724,800 Commercial mortgage loans 136,274 143,373 Loans held for sale: Residential mortgage loans 12,123 15,529 Commercial mortgage loans 161,861 173,112 Other assets: Purchase commitments - reverse mortgage loans 9,356 9,356 Liabilities at fair value under the fair value option HMBS related obligations 10,996,755 10,719,000 Nonrecourse debt: Nonrecourse debt in consolidated VIE trusts 7,175,857 7,819,992 Nonrecourse MSR financing liability 60,562 60,562 Nonrecourse commercial loan financing liability 106,758 105,291 |
Summary of the components of net fair value gains on mortgage loans and related obligations | Provided in the table below is a summary of the components of net fair value gains on loans and related obligations (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Net fair value gains on loans and related obligations: Interest income on reverse and commercial loans $ 301,046 $ 163,694 Change in fair value of loans 266,821 (510,802) Net fair value gains (losses) on loans 567,867 (347,108) Interest expense on HMBS and nonrecourse obligations (203,050) (106,643) Change in fair value of derivatives (4,589) 165,579 Change in fair value of related obligations (183,834) 295,132 Net fair value gains (losses) on related obligations (391,473) 354,068 Net fair value gains on loans and related obligations $ 176,394 $ 6,960 |
Reverse Mortgage Portfolio Comp
Reverse Mortgage Portfolio Composition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Summary of the Company's Serviced Reverse Mortgage Portfolio Composition and the Remaining UPBs of the Reverse Mortgage Loan Portfolio | The table below summarizes the composition and the outstanding UPB (in thousands) of the reverse mortgage loan portfolio serviced by the Company: March 31, 2023 December 31, 2022 Reverse mortgage loans: Reverse mortgage loans held for investment, subject to HMBS related obligations $ 15,850,053 $ 10,719,000 Reverse mortgage loans held for investment: Non-agency reverse mortgages 275,390 489,038 Loans not securitized (1) 199,145 88,029 Unpoolable loans (2) 200,686 136,657 Unpoolable tails 10,703 11,076 Total reverse mortgage loans held for investment 685,924 724,800 Reverse mortgage loans held for investment, subject to nonrecourse debt: Performing HECM buyouts 333,324 328,845 Nonperforming HECM buyouts 515,502 541,071 Non-agency reverse mortgages 7,125,555 6,370,209 Total reverse mortgage loans held for investment, subject to nonrecourse debt 7,974,381 7,240,125 Total owned reverse mortgage portfolio 24,510,358 18,683,925 Loans reclassified as government guaranteed receivable 92,905 76,033 Loans serviced for others 209,243 81,436 Total serviced reverse mortgage loan portfolio $ 24,812,506 $ 18,841,394 (1) Loans not securitized represent primarily newly originated loans and poolable tails. |
Summarizes the Owned Reverse Mortgage Portfolio by Product Type | The table below summarizes the reverse mortgage portfolio owned by the Company by product type (in thousands): March 31, 2023 December 31, 2022 Fixed rate loans $ 6,776,128 $ 6,548,902 Adjustable rate loans 17,734,230 12,135,023 Total owned reverse mortgage portfolio $ 24,510,358 $ 18,683,925 |
Loans Held for Investment, Su_3
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of loans held for investment, subject to HMBS related obligations, at fair value | Loans held for investment, subject to HMBS related obligations, at fair value, consisted of the following for the dates indicated (in thousands): March 31, 2023 December 31, 2022 Loans held for investment, subject to HMBS related obligations - UPB $ 15,850,053 $ 10,719,000 Fair value adjustments 773,508 395,100 Total loans held for investment, subject to HMBS related obligations, at fair value $ 16,623,561 $ 11,114,100 |
Loans Held for Investment, Su_4
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of mortgage loans held for investment subject to nonrecourse debt at fair value | Loans held for investment, subject to nonrecourse debt, at fair value, consisted of the following for the dates indicated (in thousands): March 31, 2023 December 31, 2022 Loans held for investment, subject to nonrecourse debt - UPB: Reverse mortgage loans $ 7,974,381 $ 7,240,125 Commercial mortgage loans 373,052 405,970 Fair value adjustments 27,394 (191,457) Total loans held for investment, subject to nonrecourse debt, at fair value $ 8,374,827 $ 7,454,638 |
Schedule of mortgage loans held for investment, subject to nonrecourse debt, greater than 90 days past due and on non-accrual status | The table below shows the total amount of loans held for investment, subject to nonrecourse debt, that were greater than 90 days past due and on non-accrual status (in thousands): March 31, 2023 December 31, 2022 Loans 90 days or more past due and on non-accrual status Fair value: Commercial mortgage loans $ 23,157 $ 21,325 Aggregate UPB: Commercial mortgage loans 25,242 24,023 Difference $ (2,085) $ (2,698) |
Loans Held for Investment, at_2
Loans Held for Investment, at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of loans held for investment at fair value | Loans held for investment, at fair value, consisted of the following for the dates indicated (in thousands): March 31, 2023 December 31, 2022 Loans held for investment - UPB: Reverse mortgage loans $ 685,924 $ 724,800 Commercial mortgage loans 12,946 143,373 Fair value adjustments 38,098 39,825 Total loans held for investment, at fair value $ 736,968 $ 907,998 |
Loans Held for Sale, at Fair _2
Loans Held for Sale, at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of mortgage loans held for sale at fair value | Loans held for sale, at fair value, consisted of the following for the dates indicated (in thousands): March 31, 2023 December 31, 2022 Loans held for sale - UPB: Residential mortgage and home improvement loans $ 67,794 $ 15,529 Commercial mortgage loans 19,747 173,112 Fair value adjustments (10,047) (14,657) Total loans held for sale, at fair value $ 77,494 $ 173,984 |
Schedule of mortgage loans held for sale that were greater than 90 days past due and on non-accrual status | The table below shows the total amount of loans held for sale that were greater than 90 days past due and on non-accrual status (in thousands): March 31, 2023 December 31, 2022 Loans 90 days or more past due and on non-accrual status Fair value: Residential mortgage and home improvement loans $ 5,984 $ 5,049 Commercial mortgage loans 993 2,817 Total fair value 6,977 7,866 Aggregate UPB: Residential mortgage loans 6,535 5,427 Commercial mortgage loans 1,185 3,405 Total aggregate UPB 7,720 8,832 Difference $ (743) $ (966) |
Summary of cash flows between transferor and transferees resulted from sale of mortgage loans held for sale | The table below shows a reconciliation of the changes in loans held for sale for the respective periods presented below (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Beginning balance $ 173,984 $ 158,156 Originations/purchases/repurchases 79,286 430,806 Proceeds from sales (200,456) (368,656) Net transfers from loans held for investment 15,580 — Net transfers from discontinued operations 12,526 — Gain (loss) on loans held for sale, net (12,387) 5,534 Net fair value gain (loss) on loans held for sale 8,961 (7,372) Ending balance $ 77,494 $ 218,468 |
Mortgage Servicing Rights, at_2
Mortgage Servicing Rights, at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of servicing portfolio and its activities | The servicing portfolio associated with capitalized servicing rights consists of the following (in thousands): March 31, 2023 December 31, 2022 Fannie Mae/Freddie Mac $ 166,471 $ 7,051,851 Ginnie Mae 527,286 532,328 Private investors 1,008,263 1,018,159 Total UPB $ 1,702,020 $ 8,602,338 Weighted average interest rate 3.53 % 3.59 % The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of the following (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Beginning UPB $ 8,602,338 $ 39,299,416 Originated MSR 42,011 4,257,281 Sales MSR (6,845,346) (8,368,734) Payoffs MSR (36,793) (805,668) Other (60,190) (323,737) Ending UPB $ 1,702,020 $ 34,058,558 The activity in the MSR asset consisted of the following (in thousands): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Beginning balance $ 95,096 $ 427,942 Originations 405 53,444 Sales (80,419) (107,652) Changes in fair value due to: Changes in market inputs or assumptions used in valuation model (359) 63,890 Changes in fair value due to portfolio runoff and other (1,010) (11,522) Ending balance $ 13,713 $ 426,102 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net, related to continuing operations consisted of the following (in thousands): March 31, 2023 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 27,500 $ — $ — $ 27,500 Amortizing intangibles Broker/customer relationships 9 334,700 (74,378) — 260,322 Total intangibles $ 362,200 $ (74,378) $ — $ 287,822 December 31, 2022 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 34,800 $ — $ (7,300) $ 27,500 Amortizing intangibles Broker/customer relationships 9 334,700 (65,081) — 269,619 Total intangibles $ 369,500 $ (65,081) $ (7,300) $ 297,119 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net, related to continuing operations consisted of the following (in thousands): March 31, 2023 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 27,500 $ — $ — $ 27,500 Amortizing intangibles Broker/customer relationships 9 334,700 (74,378) — 260,322 Total intangibles $ 362,200 $ (74,378) $ — $ 287,822 December 31, 2022 Amortization Period (Years) Cost Accumulated Amortization Impairment Net Non-amortizing intangibles Trade name N/A $ 34,800 $ — $ (7,300) $ 27,500 Amortizing intangibles Broker/customer relationships 9 334,700 (65,081) — 269,619 Total intangibles $ 369,500 $ (65,081) $ (7,300) $ 297,119 |
Schedule of Estimated Amortization Expense | The estimated amortization expense for each of the five succeeding fiscal years and thereafter as of March 31, 2023 is as follows (in thousands): Year Ending December 31, Amount Remainder of 2023 $ 27,892 2024 37,189 2025 37,189 2026 37,189 2027 37,189 Thereafter 83,674 Total future amortization expense $ 260,322 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Net | Other assets, net, related to continuing operations consisted of the following (in thousands): March 31, 2023 December 31, 2022 Government guaranteed receivables $ 82,980 $ 66,947 Retained bonds, at fair value 47,048 46,437 Receivables, net of allowance of $5,140 and $5,173, respectively (1) 28,612 53,008 Right-of-use assets 27,933 27,933 Prepaid expenses 16,788 10,522 Loans subject to repurchase from Ginnie Mae 16,378 15,631 Servicer advances, net of allowance of $1,831 and $2,416, respectively 5,894 7,230 Deposits 1,396 1,191 Margin deposits 540 4,318 Other 24,360 33,099 Total other assets, net $ 251,929 $ 266,316 (1) As of December 31, 2022, the Company had an outstanding note receivable balance of $20.0 million with AAG/Bloom, which is included in Receivables in the above table. As part of the closing of the AAG Transaction, the outstanding note receivable balance was forgiven. Refer to Note 4 - Acquisitions for additional detail. |
HMBS Related Obligations, at _2
HMBS Related Obligations, at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of HMBS related obligations, at fair value | HMBS related obligations, at fair value, consisted of the following (in thousands): March 31, 2023 December 31, 2022 Ginnie Mae loan pools - UPB $ 15,850,053 $ 10,719,000 Fair value adjustments 557,576 277,755 Total HMBS related obligations, at fair value $ 16,407,629 $ 10,996,755 Weighted average remaining life (in years) 4.4 4.0 Weighted average interest rate 5.7 % 5.0 % |
Nonrecourse Debt, at Fair Val_2
Nonrecourse Debt, at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Nonrecourse Debt At Fair Value | Nonrecourse debt, at fair value, consisted of the following (in thousands): Issue Date Final Maturity Date Interest Rate Original Issue Amount March 31, 2023 December 31, 2022 Securitization of performing / nonperforming HECM loans July 2020 - August 2022 July 2030 - August 2032 2.69% - 9.32% $ 1,679,106 $ 924,776 $ 953,336 Securitization of non-agency reverse loans May 2018 -February 2023 March 2050 - November 2069 1.25% - 4.50% 8,799,462 6,945,852 6,598,145 Securitization of Fix & Flip loans April 2021 May 2025 2.10% - 5.40% 268,511 268,511 268,511 Total consolidated VIE nonrecourse debt UPB 8,139,139 7,819,992 Nonrecourse MSR financing liability, at fair value 988 60,562 Nonrecourse reverse loan financing liability (1) 321,708 — Nonrecourse commercial loan financing liability (2) 74,604 105,291 Fair value adjustments (503,887) (642,668) Total nonrecourse debt, at fair value $ 8,032,552 $ 7,343,177 (1) Nonrecourse reverse loan financing liability is comprised of the balance of the nonrecourse debt for the applicable period associated with a non-agency securitization. As the securitization was determined to be an unconsolidated VIE and failed sale treatment, the associated nonrecourse debt is accounted for by FoA and presented separately from the other nonrecourse debts. Refer to Note 5 - Variable Interest Entities and Securitizations for additional information. (2) Nonrecourse commercial loan financing liability is comprised of the balance of the nonrecourse debt for the applicable period associated with the CAPT securitization. As the CAPT securitization was determined to be an unconsolidated VIE and failed sale treatment, the associated nonrecourse debt is accounted for by FoA and presented separately from the other nonrecourse debts. Refer to Note 5 - Variable Interest Entities and Securitizations for additional information. |
Summary Of Estimated Maturities For Nonrecourse Debt Fair Value | As of March 31, 2023, estimated maturities for nonrecourse debt for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Estimated Maturities 2023 $ 1,717,377 2024 2,814,270 2025 1,026,598 2026 590,687 2027 2,386,519 Thereafter — Nonrecourse MSR financing liability (1) 988 Total payments on nonrecourse debt $ 8,536,439 (1) |
Other Financing Lines of Cred_2
Other Financing Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of components of other financing lines of credit | The following summarizes the components of other financing lines of credit relating to continuing operations (in thousands): Outstanding borrowings at Maturity Date Interest Rate Collateral Pledged Total Capacity (1) March 31, 2023 December 31, 2022 Mortgage Lines: October 2023 Bloomberg short-term First Lien Mortgages $ 50,000 $ 6,270 $ 83,814 November 2023 Secured Overnight Financing Rate ("SOFR") + applicable margin Home Improvement Consumer Loans 50,000 37,660 7,495 N/A N/A MSR — — 10,312 N/A Bond accrual rate + applicable margin Mortgage Related Assets 38,274 38,274 37,604 Subtotal mortgage lines of credit $ 138,274 $ 82,204 $ 139,225 Reverse Lines: April 2023 - November 2023 LIBOR/SOFR/BSBY + applicable margin First Lien Mortgages $ 1,450,000 $ 520,794 $ 584,658 N/A LIBOR/Bond accrual rate + applicable margin Mortgage Related Assets 372,840 362,529 320,715 October 2027 SOFR + applicable margin MSR 70,000 61,475 33,036 May 2023 Prime + .50%; 6% floor Unsecuritized Tails 50,000 50,000 45,001 Subtotal reverse lines of credit $ 1,942,840 $ 994,798 $ 983,410 Commercial Lines: N/A N/A Encumbered Agricultural Loans $ — $ — $ 7,561 October 2023 - November 2023 SOFR/BSBY + applicable margin First Lien Mortgages 100,000 23,865 159,938 N/A N/A Second Lien Mortgages — — 25,000 January 2024 SOFR + applicable margin Mortgage Related Assets 12,500 12,500 12,500 Subtotal commercial lines of credit $ 112,500 $ 36,365 $ 204,999 Total other financing lines of credit $ 2,193,614 $ 1,113,367 $ 1,327,634 (1) Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions, and covenants of the respective agreements, including asset-eligibility requirements. Capacity amounts presented are as of March 31, 2023. The lines of credit with no capacity are terminated as of March 31, 2023. |
Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios | As of March 31, 2023, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios): Financial Covenants Requirement March 31, 2023 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 75,000 $ 77,851 $ 2,851 Liquidity 20,000 22,191 2,191 Leverage Ratio 13:1 6.8:1 37,318 FAR Adjusted Tangible Net Worth (2) $ 250,000 $ 452,738 $ 202,738 Liquidity 36,086 38,210 2,124 Leverage Ratio 6:1 3.4:1 197,508 FAH Adjusted Tangible Net Worth (2) $ 300,000 $ 487,938 $ 187,938 Liquidity 45,000 63,819 18,819 Leverage Ratio 10:1 3.7:1 309,682 (1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary. (2) This amount is based on the most restrictive financing line of credit covenant. As of December 31, 2022, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios): Financial Covenants Requirement December 31, 2022 Maximum Allowable Distribution (1) FAM Adjusted Tangible Net Worth (2) $ 100,000 $ 100,907 $ 907 Liquidity 20,000 23,368 3,368 Leverage Ratio 13:1 9.3:1 28,732 FAR Adjusted Tangible Net Worth (2) $ 250,000 $ 267,067 $ 17,067 Liquidity 24,724 28,718 3,994 Leverage Ratio 6:1 5.29:1 31,808 FAH Adjusted Tangible Net Worth (2) $ 300,000 $ 310,850 $ 10,850 Liquidity 45,000 52,270 7,270 Leverage Ratio 10:1 6.55:1 107,292 (1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary. (2) This amount is based on the most restrictive financing line of credit covenant. |
Payables and Other Liabilities
Payables and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Other Liabilities | Payables and other liabilities related to continuing operations consisted of the following (in thousands): March 31, 2023 December 31, 2022 Accrued liabilities $ 129,360 $ 54,664 GNMA reverse mortgage buyout payable 59,846 41,768 Lease liabilities 35,029 34,391 Accrued compensation expense 25,060 19,333 Deferred purchase price liabilities (1) 19,653 3,918 Liability for loans eligible for repurchase from GNMA 16,378 15,631 Repurchase reserves 11,492 158 Deferred tax liability, net 8,318 2,367 Warrant liability 1,581 1,117 Derivative liabilities — 385 Total payables and other liabilities $ 306,717 $ 173,732 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Financial Information By Segment | The following tables are a presentation of financial information by segment for the periods indicated (in thousands): For the three months ended March 31, 2023 Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain (loss) on sale and other income from loans held for sale, net $ (1,312) $ (11,058) $ (12,370) $ — $ (56) $ (12,426) Net fair value gains on loans and related obligations 24,475 151,919 176,394 — — 176,394 Fee income 3,180 5,463 8,643 2,953 (5,244) 6,352 Net interest expense — Interest income — 1,470 1,470 621 — 2,091 Interest expense — (23,996) (23,996) (7,560) — (31,556) Net interest expense — (22,526) (22,526) (6,939) — (29,465) Total revenues 26,343 123,798 150,141 (3,986) (5,300) 140,855 Total expenses 35,524 24,679 60,203 28,874 (5,300) 83,777 Other, net 31 — 31 905 — 936 Net income (loss) before taxes $ (9,150) $ 99,119 $ 89,969 $ (31,955) $ — $ 58,014 Depreciation and amortization $ 9,643 $ 14 $ 9,657 $ 448 $ — $ 10,105 Total assets $ 296,417 $ 26,327,259 $ 26,623,676 $ 1,912,801 $ (1,861,938) $ 26,674,539 For the three months ended March 31, 2022 Retirement Solutions Portfolio Management Total Operating Segments Corporate and Other Eliminations Total REVENUES Gain on sale and other income from loans held for sale, net $ — $ 10,928 $ 10,928 $ — $ (4,707) $ 6,221 Net fair value gains (losses) on loans and related obligations 105,755 (102,785) 2,970 — 3,990 6,960 Fee income 3,805 54,525 58,330 9,039 (12,196) 55,173 Net interest expense Interest income 43 1,047 1,090 94 — 1,184 Interest expense (54) (16,723) (16,777) (6,703) — (23,480) Net interest expense (11) (15,676) (15,687) (6,609) — (22,296) Total revenues 109,549 (53,008) 56,541 2,430 (12,913) 46,058 Total expenses 47,427 34,711 82,138 38,283 (13,018) 107,403 Other, net 3,214 27 3,241 (152) (105) 2,984 Net income (loss) before taxes $ 65,336 $ (87,692) $ (22,356) $ (36,005) $ — $ (58,361) Depreciation and amortization $ 9,598 $ 91 $ 9,689 $ 509 $ — $ 10,198 Total assets $ 417,791 $ 19,628,648 $ 20,046,439 $ 1,769,059 $ (1,734,835) $ 20,080,663 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of basic earnings per share | The following tables reconcile the numerators and denominators used in the computations of both basic and diluted net income (loss) per share for the periods (in thousands, except share data and per share amounts): For the three months ended March 31, 2023 For the three months ended March 31, 2022 Basic net income (loss) per share: Numerator Net income (loss) from continuing operations $ 55,482 $ (50,639) Less: Income (loss) from continuing operations attributable to noncontrolling interest (1) 36,755 (41,203) Net income (loss) from continuing operations attributable to holders of Class A Common Stock - basic $ 18,727 $ (9,436) Net loss from discontinued operations $ (40,890) $ (13,356) Less: Loss from discontinued operations attributable to noncontrolling interest (1) (25,217) (14,299) Net income (loss) from discontinued operations attributable to holders of Class A Common Stock - basic $ (15,673) $ 943 Denominator Weighted average shares of Class A Common Stock outstanding - basic 64,016,845 60,773,891 Basic net income (loss) per share Continuing operations $ 0.29 $ (0.16) Discontinued operations (0.24) 0.02 Basic net income (loss) per share $ 0.05 $ (0.14) (1) The Class A LLC Units of FoA Equity, held by the Continuing Unitholders and Bloom (collectively "Equity Capital Unitholders"), which comprise the noncontrolling interest in the Company, represents a participating security. Therefore, the numerator was adjusted to reduce net income (loss) by the amount of net income (loss) attributable to noncontrolling interest. Additionally, the Class B Common Stock does not participate in earnings or losses of the Company and, therefore, is not a participating security. The Class B Common Stock has not been included in either the basic or diluted net income (loss) per share calculations. Net income (loss) attributable to noncontrolling interest includes an allocation of expense related to the Amended and Restated Long-Term Incentive Plan ("A&R MLTIP"). |
Summary of diluted earnings per share | For the three months ended March 31, 2023 For the three months ended March 31, 2022 Diluted net income (loss) per share: Numerator Net income (loss) from continuing operations attributable to holders of Class A Common Stock - basic $ 18,727 $ (9,436) Reallocation of net income (loss) from continuing operations assuming exchange of Class A LLC Units (1) 23,328 (33,925) Net income (loss) from continuing operations attributable to holders of Class A Common Stock - diluted $ 42,055 $ (43,361) Net income (loss) from discontinued operations attributable to holders of Class A Common Stock - basic $ (15,673) $ 943 Reallocation of net loss from discontinued operations assuming exchange of Class A LLC Units (1) (12,470) (14,308) Net loss from discontinued operations attributable to holders of Class A Common Stock - diluted $ (28,143) $ (13,365) Denominator Weighted average shares of Class A Common Stock outstanding - basic 64,016,845 60,773,891 Effect of dilutive securities: Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) 124,159,953 128,675,045 Forward sale contract - dilutive shares 2,124,214 — Weighted average shares of Class A Common Stock outstanding - diluted (3) 190,301,012 189,448,936 Diluted net income (loss) per share Continuing operations $ 0.22 $ (0.23) Discontinued operations (0.15) (0.07) Diluted net income (loss) per share $ 0.07 $ (0.30) (1) This adjustment assumes the reallocation of noncontrolling interest earnings, on an after-tax basis, due to the assumed exchange of all Class A LLC Units outstanding for shares of Class A Common Stock in FoA as of the beginning of the period following the if-converted method for calculating diluted net income (loss) per share. Following the terms of the A&R LLC Agreement, the Class A LLC unitholders will bear approximately 85% of the cost of any vesting associated with the Replacement RSUs and Earnout Right RSUs prior to any distribution by the Company to such Class A LLC unitholders. The remaining compensation cost associated with the Replacement RSUs and Earnout Right RSUs will be born by FoA for the share attributable to Blocker. As a result of the application of the if-converted method in arriving at diluted net income (loss) per share, the entirety of the compensation cost associated with vesting of the Replacement RSUs and Earnout Right RSUs is assumed to be included in the net income (loss) attributable to holders of the Company’s Class A Common Stock. (2) The diluted weighted average shares outstanding of Class A Common Stock includes the effects of the if-converted method to reflect the provisions of the Exchange Agreement and assumes the Class A LLC Units held by Equity Capital Unitholders, representing the noncontrolling interest, exchange their units on a one -for-one basis for shares of Class A Common Stock in FoA. In addition to the Class A LLC Units, the Company also had RSUs outstanding during the three months ended March 31, 2023 and 2022. The effects of the RSUs following the treasury stock method have been excluded from the computation of diluted net income (loss) per share as it did not yield dilutive shares. |
Organization and Description _2
Organization and Description of Business (Details) - company | 3 Months Ended | |
Feb. 01, 2023 | Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of lending companies operated | 2 | |
ANTIC Capital Stock | Incenter | ||
Segment Reporting Information [Line Items] | ||
Sale of stock, percentage of ownership before transaction | 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Accounting Policies [Line Items] | |||||||
Net income (loss) | $ 14,592 | [1] | $ (63,995) | [1] | $ 715,500 | ||
Pre-tax income (loss) from continuing operations | 58,014 | (58,361) | |||||
Pre-tax income (loss) from discontinued operations | 37,500 | ||||||
Equity | 490,432 | $ 1,032,095 | 404,841 | $ 1,083,010 | |||
Pre-tax income | 20,500 | ||||||
Accumulated deficit | $ 631,241 | $ 634,295 | |||||
Forecast | Boston National Holdings LLC and Agents National Title Holding Company | |||||||
Accounting Policies [Line Items] | |||||||
Proceeds from sale of businesses | $ 100,000 | ||||||
[1] (1) Amounts presented contain results from both continuing and discontinued operations. Refer to Note 4 - Discontinued Operations for additional information regarding cash flow associated with the results of discontinued operations. |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - American Advisors Group (AAG) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | ||
Total cost | $ 215,373 | |
Class A LLC Units, Equity Classified, Indemnity Holdback | ||
Business Acquisition [Line Items] | ||
Total cost | $ 140,900 |
Acquisitions - Fair Value of Co
Acquisitions - Fair Value of Consideration Transferred and Assets Acquired and Liabilities Assumed (Details) - American Advisors Group (AAG) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) units $ / shares shares | Mar. 31, 2023 USD ($) $ / shares | |
Consideration transferred: | ||
Cash consideration | $ 3,100 | |
Notes payable to Seller | 4,500 | |
Pay off indebtedness | 136,984 | |
Other liabilities assumed | 8,429 | |
Buyer transaction expenses | 770 | |
Forgiveness of bridge working capital notes payable | 24,034 | |
Total cost | 215,373 | |
Assets acquired: | ||
Fixed assets and leasehold improvements | 2,400 | $ 2,400 |
Lease asset | 491 | 491 |
Other assets | 6,270 | 6,270 |
Total assets acquired | 5,596,143 | 5,596,143 |
Liabilities assumed: | ||
Lease liabilities | 492 | 492 |
Payables and other liabilities | 25,906 | 25,906 |
Total liabilities assumed | 5,380,770 | 5,380,770 |
Net identifiable assets acquired | $ 215,373 | $ 215,373 |
Minimum | ||
Liabilities assumed: | ||
Business combination, contingent consideration, period | 2 years | |
Maximum | ||
Liabilities assumed: | ||
Business combination, contingent consideration, period | 3 years | |
Class A LLC Units | ||
Consideration transferred: | ||
Initial equity consideration – Class A LLC Units (Note 26 - Equity) | $ 24,419 | |
Deferred equity consideration – Class A LLC Units (Note 26 - Equity) - to be updated | $ 13,137 | |
Liabilities assumed: | ||
Shares issued at closing of transaction | shares | 19,692,990 | |
Conversion ratio | 1 | 1 |
Price per share (in dollars per share) | $ / shares | $ 1.24 | $ 1.24 |
Contingent equity consideration, number of types | units | 2 | |
Class A LLC Units, Equity Classified, Indemnity Holdback | ||
Consideration transferred: | ||
Deferred equity consideration – Class A LLC Units (Note 26 - Equity) - to be updated | $ 8,700 | |
Total cost | $ 140,900 | |
Liabilities assumed: | ||
Contingent equity consideration (in shares) | shares | 7,058,416 | |
Contingent equity consideration, threshold (in shares) | shares | 3,571,130 | |
Class A LLC Units, Liability Classified | ||
Consideration transferred: | ||
Deferred equity consideration – Class A LLC Units (Note 26 - Equity) - to be updated | $ 4,400 | |
Liabilities assumed: | ||
Contingent equity consideration (in shares) | shares | 7,142,260 | |
Class B Common Stock | ||
Consideration transferred: | ||
FOA Class B Common Stock (Note 26 - Equity) | $ 0 | |
Loans held for investment, subject to HMBS related obligations | ||
Assets acquired: | ||
Loans held for investment | 5,448,712 | 5,448,712 |
Loans held for investment | ||
Assets acquired: | ||
Loans held for investment | 138,270 | 138,270 |
HMBS related obligations | ||
Liabilities assumed: | ||
HMBS related obligations | $ 5,354,372 | $ 5,354,372 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) | Feb. 01, 2023 |
ANTIC Capital Stock | Incenter | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Sale of stock, percentage of ownership before transaction | 100% |
Discontinued Operations - Balan
Discontinued Operations - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Assets of discontinued operations | $ 151,450 | $ 313,360 |
Liabilities | ||
Liabilities of discontinued operations | 66,302 | 227,114 |
Discontinued Operations | Mortgage Originations, Commercial Originations and Lenders Services Segments | ||
Assets | ||
Cash and cash equivalents | 33,828 | 36,212 |
Restricted cash | 311 | 311 |
Loans held for sale, at fair value | 0 | 141,994 |
Derivative assets | 11 | 676 |
Fixed assets and leasehold improvements, net | 9,649 | 9,884 |
Intangible assets, net | 63,580 | 77,436 |
Other assets, net | 44,071 | 46,847 |
Assets of discontinued operations | 151,450 | 313,360 |
Liabilities | ||
Other financing lines of credit | 0 | 127,735 |
Payables and other liabilities | 66,302 | 99,379 |
Liabilities of discontinued operations | $ 66,302 | $ 227,114 |
Discontinued Operations - Incom
Discontinued Operations - Income Statement Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Expenses | ||
Net loss from discontinued operations before income taxes | $ 37,500 | |
Net loss from discontinued operations | (40,890) | $ (13,356) |
Net loss attributable to noncontrolling interest from discontinued operations | (25,217) | (14,299) |
Net income (loss) from discontinued operations attributable to holders of Class A Common Stock - basic | (15,673) | 943 |
Gain (loss) on disposal | 10,200 | |
Discontinued Operations | Mortgage Originations, Commercial Originations and Lenders Services Segments | ||
Revenues | ||
Gain on sale and other income from loans held for sale, net | 396 | 112,131 |
Net fair value gains on loans and related obligations | 308 | 3,475 |
Fee income | 32,628 | 102,431 |
Net interest income (expense): | ||
Interest income | 517 | 12,689 |
Interest expense | (820) | (9,350) |
Net interest income (expense) | (303) | 3,339 |
Total revenues | 33,029 | 221,376 |
Expenses | ||
Salaries, benefits, and related expenses | 30,851 | 149,977 |
Occupancy, equipment rentals, and other office related expenses | 972 | 5,648 |
General and administrative expenses | 28,533 | 86,508 |
Total expenses | 60,356 | 242,133 |
Impairment of other assets | (1,055) | 0 |
Other expense, net | (9,089) | |
Other income, net | 1,788 | |
Net loss from discontinued operations before income taxes | (37,471) | (18,969) |
Provision (benefit) for income taxes from discontinued operations | 3,419 | (5,613) |
Net loss from discontinued operations | (40,890) | (13,356) |
Net loss attributable to noncontrolling interest from discontinued operations | (25,217) | (14,299) |
Net income (loss) from discontinued operations attributable to holders of Class A Common Stock - basic | $ (15,673) | $ 943 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flows Disclosures (Details) - Discontinued Operations - Mortgage Originations, Commercial Originations and Lenders Services Segments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on sale and other income from loans held for sale, net | $ 396 | $ 112,131 |
Unrealized fair value changes on loans, related obligations, and derivatives | 308 | 3,475 |
Impairment of goodwill, intangibles, and other assets | 1,055 | 0 |
Depreciation and amortization | 2,778 | 6,466 |
Acquisition of fixed assets | $ (1,815) | $ (2,612) |
Variable Interest Entities an_3
Variable Interest Entities and Securitizations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Total assets | $ 26,825,989 | $ 20,872,655 | |
Asset Pledged as Collateral | Unconsolidated Securitization Trusts | |||
Variable Interest Entity [Line Items] | |||
Total assets | $ 1,100,000 | $ 1,100,000 | |
HAWT Two Thousand And Twenty One Inv One Securitization | FAM | |||
Variable Interest Entity [Line Items] | |||
Beneficial interest in securitized trust (in percent) | 5% | ||
Cavatica Asset Participation Trust | FAR | |||
Variable Interest Entity [Line Items] | |||
Beneficial interest in securitized trust (in percent) | 5% | 5% | |
F A M Mortgage Loan | |||
Variable Interest Entity [Line Items] | |||
Charge off expenses on transferred mortgage loan | $ 0 | $ 0 | |
F A M Mortgage Loan | FAM | Financial Asset 60 Days Or Less Past Due | |||
Variable Interest Entity [Line Items] | |||
Mortgage loans transferred to unconsolidated securitization trusts amount | 600 | $ 700 | |
Agricultural loans | Cavatica Asset Participation Trust | |||
Variable Interest Entity [Line Items] | |||
Consolidated balance of agricultural loans | 421,400 | 114,100 | |
Agricultural loans | Cavatica Asset Participation Trust | Nonrecourse | |||
Variable Interest Entity [Line Items] | |||
Liability transferred to the variable interest entity, fair value amount | $ 399,100 | $ 106,800 |
Variable Interest Entities an_4
Variable Interest Entities and Securitizations - Summary of the Assets and Liabilities of the Company's Consolidated Variable Interest Entities (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Restricted cash | $ 228,302 | $ 179,764 |
Loans held for investment, at fair value | 736,968 | 907,998 |
TOTAL ASSETS | 26,825,989 | 20,872,655 |
LIABILITIES | ||
Nonrecourse debt, at fair value | 8,032,552 | 7,343,177 |
TOTAL LIABILITIES | 26,335,557 | 20,467,814 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 183,210 | 173,714 |
Loans held for investment, at fair value | 7,953,455 | 7,340,528 |
Other assets, net | 87,369 | 75,977 |
TOTAL ASSETS | 8,224,034 | 7,590,219 |
LIABILITIES | ||
Nonrecourse debt, at fair value | 7,632,482 | 7,175,857 |
Payables and other liabilities | 742 | 757 |
TOTAL LIABILITIES | 7,633,224 | 7,176,614 |
Variable Interest Entity, Primary Beneficiary | Asset and Liabilities of Consolidated V I E | ||
ASSETS | ||
Restricted cash | 183,210 | 173,714 |
Loans held for investment, at fair value | 7,953,455 | 7,340,528 |
Other assets, net | 87,369 | 75,977 |
TOTAL ASSETS | 8,224,034 | 7,590,219 |
LIABILITIES | ||
Nonrecourse debt, at fair value | 8,006,545 | 7,479,918 |
Payables and other liabilities | 742 | 757 |
TOTAL LIABILITIES | 8,007,287 | 7,480,675 |
Retained bonds and beneficial interests eliminated in consolidation | (374,063) | (304,061) |
TOTAL CONSOLIDATED LIABILITIES | $ 7,633,224 | $ 7,176,614 |
Fair Value - Valuation Techniqu
Fair Value - Valuation Techniques (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Reverse mortgage loans | |
Unobservable Assumptions | |
Margin of sale (in percent) | 3% |
Fair Value - Weighted Average U
Fair Value - Weighted Average Unobservable Assumptions Used In The Fair Value Measurements (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Weighted Average | Discount rate | ||
Unobservable Assumptions | ||
Deferred purchase price liabilities, measurement input | 0.080 | 0.080 |
Retained bonds, measurement input | 0.062 | 0.069 |
Weighted Average | Discount rate | TRA obligation | ||
Unobservable Assumptions | ||
Deferred purchase price liabilities, measurement input | 0.343 | 0.483 |
Weighted Average | Discount rate | MSR | ||
Unobservable Assumptions | ||
Mortgage servicing rights, measurement input | 0.115 | 0.101 |
Weighted Average | WAL (in years) | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | 4.7 | 4.9 |
Weighted Average | Weighted average prepayment speed (CPR) | MSR | ||
Unobservable Assumptions | ||
Mortgage servicing rights, measurement input | 0.084 | 0.064 |
Weighted Average | Loans held for investment, subject to HMBS related obligations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.193 | 0.219 |
Weighted Average | Loans held for investment, subject to HMBS related obligations | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.040 | 0.041 |
Weighted Average | Loans held for investment, subject to HMBS related obligations | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.025 | 0.027 |
Weighted Average | Loans held for investment, subject to HMBS related obligations | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.047 | 0.050 |
Weighted Average | Loans held for investment, subject to HMBS related obligations | Average draw rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.011 | 0.011 |
Weighted Average | HECM buyouts - securitized (nonperforming) | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.384 | 0.392 |
Weighted Average | HECM buyouts - securitized (nonperforming) | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.512 | 0.517 |
Weighted Average | HECM buyouts - securitized (nonperforming) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.049 | 0.052 |
Weighted Average | HECM buyouts - securitized (nonperforming) | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.085 | 0.087 |
Weighted Average | HECM buyouts - securitized (performing) | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.156 | 0.152 |
Weighted Average | HECM buyouts - securitized (performing) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.048 | 0.048 |
Weighted Average | HECM buyouts - securitized (performing) | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.079 | 0.082 |
Weighted Average | HECM buyouts - securitized (performing) | WAL (in years) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 7.9 | 8 |
Weighted Average | Non-agency reverse mortgage loans - securitized | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.144 | 0.143 |
Weighted Average | Non-agency reverse mortgage loans - securitized | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.100 | 0.100 |
Weighted Average | Non-agency reverse mortgage loans - securitized | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.066 | 0.071 |
Weighted Average | Non-agency reverse mortgage loans - securitized | WAL (in years) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 9.7 | 9.7 |
Weighted Average | Non-agency reverse mortgage loans - securitized | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.456 | 0.431 |
Weighted Average | Non-agency reverse mortgage loans - securitized | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.038 | 0.038 |
Weighted Average | Fix & flip mortgage loans - securitized | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.141 | 0.175 |
Weighted Average | Fix & flip mortgage loans - securitized | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.112 | 0.112 |
Weighted Average | Fix & flip mortgage loans - securitized | Loss rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.005 | 0.005 |
Weighted Average | Inventory buy-outs | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.412 | 0.413 |
Weighted Average | Inventory buy-outs | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.490 | 0.476 |
Weighted Average | Inventory buy-outs | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.038 | 0.056 |
Weighted Average | Inventory buy-outs | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.085 | 0.087 |
Weighted Average | Non-agency reverse mortgage loans | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.141 | 0.138 |
Weighted Average | Non-agency reverse mortgage loans | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.100 | 0.100 |
Weighted Average | Non-agency reverse mortgage loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.066 | 0.071 |
Weighted Average | Non-agency reverse mortgage loans | WAL (in years) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 11.4 | 12 |
Weighted Average | Non-agency reverse mortgage loans | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.367 | 0.364 |
Weighted Average | Non-agency reverse mortgage loans | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.036 | 0.036 |
Weighted Average | Fix & flip mortgage loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.156 | 0.166 |
Weighted Average | Fix & flip mortgage loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.101 | 0.095 |
Weighted Average | Fix & flip mortgage loans | Loss rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.002 | 0.002 |
Weighted Average | Agricultural loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.095 | 0.097 |
Weighted Average | Agricultural loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.741 | 0.118 |
Weighted Average | Agricultural loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.009 | 0.009 |
Weighted Average | SRL | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.084 | 0.083 |
Weighted Average | SRL | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.194 | 0.197 |
Weighted Average | SRL | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.010 | 0.010 |
Weighted Average | Portfolio loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.107 | 0.109 |
Weighted Average | Portfolio loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.140 | 0.184 |
Weighted Average | Portfolio loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.010 | 0.010 |
Weighted Average | HMBS related obligations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.190 | 0.218 |
Weighted Average | HMBS related obligations | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.046 | 0.050 |
Weighted Average | Performing/Nonperforming HECM securitizations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.189 | 0.211 |
Weighted Average | Performing/Nonperforming HECM securitizations | Discount rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.087 | 0.086 |
Weighted Average | Performing/Nonperforming HECM securitizations | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 1.4 | 1.6 |
Weighted Average | Securitized non-agency reverse | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.198 | 0.165 |
Weighted Average | Securitized non-agency reverse | Discount rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.069 | 0.072 |
Weighted Average | Securitized non-agency reverse | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 4.9 | 6.4 |
Weighted Average | Nonrecourse commercial loan financing liability | Discount rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.079 | 0.145 |
Weighted Average | Nonrecourse commercial loan financing liability | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 4.3 | 4.3 |
Weighted Average | Nonrecourse commercial loan financing liability | Weighted average prepayment speed (CPR) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.156 | 0.153 |
Weighted Average | Nonrecourse MSR financing liability | Discount rate | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.120 | 0.102 |
Weighted Average | Nonrecourse MSR financing liability | Weighted average prepayment speed (CPR) | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.076 | 0.051 |
Minimum | Discount rate | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | (0.185) | (0.168) |
Minimum | WAL (in years) | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | 2.4 | 2.4 |
Minimum | Weighted average prepayment speed (CPR) | MSR | ||
Unobservable Assumptions | ||
Mortgage servicing rights, measurement input | 0.008 | 0.010 |
Minimum | Loans held for investment, subject to HMBS related obligations | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.024 | 0.024 |
Minimum | HECM buyouts - securitized (nonperforming) | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.231 | 0.231 |
Minimum | HECM buyouts - securitized (nonperforming) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.024 | 0.024 |
Minimum | HECM buyouts - securitized (performing) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.024 | 0.024 |
Minimum | Non-agency reverse mortgage loans - securitized | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0 | 0 |
Minimum | Non-agency reverse mortgage loans - securitized | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | (0.102) | (0.101) |
Minimum | Inventory buy-outs | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.024 | 0.024 |
Minimum | Non-agency reverse mortgage loans | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.001 | 0.001 |
Minimum | Non-agency reverse mortgage loans | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | (0.102) | (0.101) |
Minimum | Fix & flip mortgage loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.130 | 0.163 |
Minimum | Agricultural loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.190 | 0.110 |
Minimum | Agricultural loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0 | 0 |
Minimum | SRL | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.185 | 0.185 |
Minimum | SRL | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0 | |
Minimum | Portfolio loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0 | 0 |
Minimum | Performing/Nonperforming HECM securitizations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.176 | 0.199 |
Minimum | Performing/Nonperforming HECM securitizations | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 1.3 | 1.5 |
Minimum | Securitized non-agency reverse | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.083 | |
Minimum | Securitized non-agency reverse | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.1 | 0.2 |
Minimum | Nonrecourse MSR financing liability | Discount rate | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.100 | 0.100 |
Minimum | Nonrecourse MSR financing liability | Weighted average prepayment speed (CPR) | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.032 | 0.008 |
Maximum | Discount rate | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | 0.119 | 0.122 |
Maximum | WAL (in years) | ||
Unobservable Assumptions | ||
Retained bonds, measurement input | 23.9 | 24.1 |
Maximum | Weighted average prepayment speed (CPR) | MSR | ||
Unobservable Assumptions | ||
Mortgage servicing rights, measurement input | 0.122 | 0.085 |
Maximum | Loans held for investment, subject to HMBS related obligations | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.109 | 0.121 |
Maximum | HECM buyouts - securitized (nonperforming) | Loss frequency | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 1 | 1 |
Maximum | HECM buyouts - securitized (nonperforming) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.109 | 0.121 |
Maximum | HECM buyouts - securitized (performing) | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.109 | 0.121 |
Maximum | Non-agency reverse mortgage loans - securitized | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.770 | 0.747 |
Maximum | Non-agency reverse mortgage loans - securitized | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.078 | 0.07 |
Maximum | Inventory buy-outs | Loss severity | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.109 | 0.121 |
Maximum | Non-agency reverse mortgage loans | LTV | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.746 | 0.679 |
Maximum | Non-agency reverse mortgage loans | HPA | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.078 | 0.073 |
Maximum | Fix & flip mortgage loans | Discount rate | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.205 | 0.258 |
Maximum | Agricultural loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 1 | 1 |
Maximum | Agricultural loans | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-investment, measurement input | 0.010 | 0.010 |
Maximum | SRL | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.250 | 0.250 |
Maximum | SRL | Default rate (CDR) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0 | |
Maximum | Portfolio loans | Prepayment rate (SMM) | ||
Unobservable Assumptions | ||
Loans held-for-sale, measurement input | 0.237 | 0.243 |
Maximum | Performing/Nonperforming HECM securitizations | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.200 | 0.222 |
Maximum | Performing/Nonperforming HECM securitizations | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 1.4 | 1.6 |
Maximum | Securitized non-agency reverse | Conditional repayment rate | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 0.461 | |
Maximum | Securitized non-agency reverse | WAL (in years) | ||
Unobservable Assumptions | ||
Long-term debt, measurement input | 11 | 11.7 |
Maximum | Nonrecourse MSR financing liability | Discount rate | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.120 | 0.120 |
Maximum | Nonrecourse MSR financing liability | Weighted average prepayment speed (CPR) | ||
Unobservable Assumptions | ||
Servicing liability, measurement input | 0.135 | 0.092 |
Fair Value - Summary Of Recogni
Fair Value - Summary Of Recognized Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Loans held for investment, at fair value | $ 736,968 | $ 907,998 |
Total loans held for sale, at fair value | 77,494 | 173,984 |
Retained bonds | 47,048 | 46,437 |
Fair Value, Recurring | ||
Assets | ||
Retained bonds | 47,048 | 46,439 |
Total assets | 25,873,611 | 19,803,289 |
Liabilities | ||
HMBS related obligations | 16,407,629 | 10,996,755 |
Nonrecourse debt in consolidated VIE trusts | 7,955,875 | 7,175,857 |
Nonrecourse commercial loan financing liability | 75,689 | 106,758 |
Nonrecourse MSR financing liability | 988 | 60,562 |
Deferred purchase price liabilities | 4,522 | 137 |
TRA obligation | 2,202 | 3,781 |
Total liabilities | 24,448,486 | 18,345,352 |
Fair Value, Recurring | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 16,623,561 | 11,114,100 |
Fair Value, Recurring | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 8,009,079 | 7,065,477 |
Fair Value, Recurring | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 365,748 | 389,161 |
Fair Value, Recurring | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 724,306 | 771,724 |
Fair Value, Recurring | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 11,787 | 127,469 |
Fair Value, Recurring | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 875 | 8,805 |
Fair Value, Recurring | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 58,751 | 12,123 |
Fair Value, Recurring | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 15,699 | 69,187 |
Fair Value, Recurring | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 3,044 | 43,272 |
Fair Value, Recurring | Fix and flip | ||
Assets | ||
Total loans held for sale, at fair value | 49,402 | |
Fair Value, Recurring | MSR | ||
Assets | ||
MSR | 13,713 | 95,096 |
Fair Value, Recurring | Forward MBS and TBAs | ||
Assets | ||
Derivative assets | 907 | |
Fair Value, Recurring | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 771 | |
Fair Value, Recurring | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 385 | |
Fair Value, Recurring | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 1,581 | 1,117 |
Fair Value, Recurring | Reverse mortgage loans | ||
Assets | ||
Purchase commitments - reverse mortgage loans | 9,356 | |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Retained bonds | 0 | 0 |
Total assets | 0 | 771 |
Liabilities | ||
HMBS related obligations | 0 | 0 |
Nonrecourse debt in consolidated VIE trusts | 0 | 0 |
Nonrecourse commercial loan financing liability | 0 | 0 |
Nonrecourse MSR financing liability | 0 | 0 |
Deferred purchase price liabilities | 0 | 0 |
TRA obligation | 0 | 0 |
Total liabilities | 1,581 | 1,502 |
Fair Value, Recurring | Level 1 | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Fix and flip | ||
Assets | ||
Total loans held for sale, at fair value | ||
Fair Value, Recurring | Level 1 | MSR | ||
Assets | ||
MSR | 0 | 0 |
Fair Value, Recurring | Level 1 | Forward MBS and TBAs | ||
Assets | ||
Derivative assets | 0 | |
Fair Value, Recurring | Level 1 | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 771 | |
Fair Value, Recurring | Level 1 | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 385 | |
Fair Value, Recurring | Level 1 | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 1,581 | 1,117 |
Fair Value, Recurring | Level 1 | Reverse mortgage loans | ||
Assets | ||
Purchase commitments - reverse mortgage loans | 0 | |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Retained bonds | 0 | 0 |
Total assets | 58,751 | 13,030 |
Liabilities | ||
HMBS related obligations | 0 | 0 |
Nonrecourse debt in consolidated VIE trusts | 0 | 0 |
Nonrecourse commercial loan financing liability | 0 | 0 |
Nonrecourse MSR financing liability | 0 | 0 |
Deferred purchase price liabilities | 0 | 0 |
TRA obligation | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 58,751 | 12,123 |
Fair Value, Recurring | Level 2 | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 2 | Fix and flip | ||
Assets | ||
Total loans held for sale, at fair value | ||
Fair Value, Recurring | Level 2 | MSR | ||
Assets | ||
MSR | 0 | 0 |
Fair Value, Recurring | Level 2 | Forward MBS and TBAs | ||
Assets | ||
Derivative assets | 907 | |
Fair Value, Recurring | Level 2 | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 0 | |
Fair Value, Recurring | Level 2 | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 2 | Warrant liability | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | Reverse mortgage loans | ||
Assets | ||
Purchase commitments - reverse mortgage loans | 0 | |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Retained bonds | 47,048 | 46,439 |
Total assets | 25,814,860 | 19,789,488 |
Liabilities | ||
HMBS related obligations | 16,407,629 | 10,996,755 |
Nonrecourse debt in consolidated VIE trusts | 7,955,875 | 7,175,857 |
Nonrecourse commercial loan financing liability | 75,689 | 106,758 |
Nonrecourse MSR financing liability | 988 | 60,562 |
Deferred purchase price liabilities | 4,522 | 137 |
TRA obligation | 2,202 | 3,781 |
Total liabilities | 24,446,905 | 18,343,850 |
Fair Value, Recurring | Level 3 | Loans held for investment, subject to HMBS related obligations | ||
Assets | ||
Loans held for investment, at fair value | 16,623,561 | 11,114,100 |
Fair Value, Recurring | Level 3 | Reverse mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 8,009,079 | 7,065,477 |
Fair Value, Recurring | Level 3 | fix and flip mortgage loans, subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 365,748 | 389,161 |
Fair Value, Recurring | Level 3 | Reverse mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 724,306 | 771,724 |
Fair Value, Recurring | Level 3 | fix and flip mortgage loans, not subject to recourse | ||
Assets | ||
Loans held for investment, at fair value | 11,787 | 127,469 |
Fair Value, Recurring | Level 3 | Agricultural loans | ||
Assets | ||
Loans held for investment, at fair value | 875 | 8,805 |
Fair Value, Recurring | Level 3 | Residential mortgage loans | ||
Assets | ||
Total loans held for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 3 | SRL | ||
Assets | ||
Total loans held for sale, at fair value | 15,699 | 69,187 |
Fair Value, Recurring | Level 3 | Portfolio | ||
Assets | ||
Total loans held for sale, at fair value | 3,044 | 43,272 |
Fair Value, Recurring | Level 3 | Fix and flip | ||
Assets | ||
Total loans held for sale, at fair value | 49,402 | |
Fair Value, Recurring | Level 3 | MSR | ||
Assets | ||
MSR | 13,713 | 95,096 |
Fair Value, Recurring | Level 3 | Forward MBS and TBAs | ||
Assets | ||
Derivative assets | 0 | |
Fair Value, Recurring | Level 3 | Interest rate swaps and futures contracts | ||
Assets | ||
Derivative assets | 0 | |
Fair Value, Recurring | Level 3 | Interest rate swaps and futures contracts | ||
Liabilities | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 3 | Warrant liability | ||
Liabilities | ||
Derivative liabilities | $ 0 | 0 |
Fair Value, Recurring | Level 3 | Reverse mortgage loans | ||
Assets | ||
Purchase commitments - reverse mortgage loans | $ 9,356 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Loans held for investment | ||
Assets | ||
Beginning balance | $ 12,022,098 | $ 11,587,382 |
Total gain (loss) included in earnings | 244,759 | (35,895) |
Purchases and additions | 6,462,274 | 1,848,155 |
Sales and settlements | (406,942) | (612,624) |
Transfers in (out) between categories | (961,660) | (895,876) |
Ending balance | 17,360,529 | 11,891,142 |
Loans held for investment, subject to nonrecourse debt | ||
Assets | ||
Beginning balance | 7,454,638 | 6,218,194 |
Total gain (loss) included in earnings | 298,636 | (313,720) |
Purchases and additions | 26,981 | 30,342 |
Sales and settlements | (333,324) | (586,276) |
Transfers in (out) between categories | 927,896 | 887,450 |
Ending balance | 8,374,827 | 6,235,990 |
Loans held for sale | ||
Assets | ||
Beginning balance | 161,861 | 158,156 |
Total gain (loss) included in earnings | (828) | (1,838) |
Purchases and additions | 40,468 | 430,806 |
Sales and settlements | (198,338) | (368,656) |
Transfers in (out) between categories | 15,580 | 0 |
Ending balance | 18,743 | 218,468 |
MSR | ||
Assets | ||
Beginning balance | 95,096 | 427,942 |
Total gain (loss) included in earnings | (1,369) | 52,368 |
Purchases and additions | 405 | 53,444 |
Sales and settlements | (80,419) | (107,652) |
Transfers in (out) between categories | 0 | 0 |
Ending balance | 13,713 | 426,102 |
Retained Bonds | ||
Assets | ||
Beginning balance | 46,439 | 55,614 |
Total gain (loss) included in earnings | 1,031 | (3,289) |
Purchases and additions | 0 | 0 |
Sales and settlements | (422) | (1,450) |
Transfers in (out) between categories | 0 | 0 |
Ending balance | 47,048 | 50,875 |
Purchase commitments | ||
Assets | ||
Beginning balance | 9,356 | |
Total gain (loss) included in earnings | 0 | |
Purchases and additions | 0 | |
Sales and settlements | (9,356) | |
Transfers in (out) between categories | 0 | |
Ending balance | 0 | |
Investments | ||
Assets | ||
Beginning balance | 6,000 | |
Total gain (loss) included in earnings | 0 | |
Purchases and additions | 0 | |
Sales and settlements | 0 | |
Transfers in (out) between categories | 0 | |
Ending balance | 6,000 | |
HMBS related obligations | ||
Liabilities | ||
Beginning balance | (10,996,755) | (10,422,358) |
Total gain (loss) included in earnings | (147,451) | 85,582 |
Purchases and additions | (5,648,041) | (948,682) |
Settlements | 384,618 | 737,327 |
Ending balance | (16,407,629) | (10,548,131) |
Deferred purchase price liabilities | ||
Liabilities | ||
Beginning balance | (137) | (7,912) |
Total gain (loss) included in earnings | 0 | 0 |
Purchases and additions | (4,385) | 0 |
Settlements | 0 | 5,000 |
Ending balance | (4,522) | (2,912) |
Nonrecourse debt in consolidated VIE trusts | ||
Liabilities | ||
Beginning balance | (7,175,857) | (5,857,069) |
Total gain (loss) included in earnings | (237,315) | 105,340 |
Purchases and additions | (639,499) | (1,048,499) |
Settlements | 96,796 | 768,072 |
Ending balance | (7,955,875) | (6,032,156) |
Nonrecourse commercial loan financing liability | ||
Liabilities | ||
Beginning balance | (106,758) | (111,738) |
Total gain (loss) included in earnings | 381 | 254 |
Purchases and additions | (22,600) | (60,658) |
Settlements | 53,288 | 44,502 |
Ending balance | (75,689) | (127,640) |
Nonrecourse MSR financing liability | ||
Liabilities | ||
Beginning balance | (60,562) | (155,108) |
Total gain (loss) included in earnings | 748 | (16,038) |
Purchases and additions | 0 | 7,165 |
Settlements | 58,826 | 0 |
Ending balance | (163,981) | |
TRA Liability | ||
Liabilities | ||
Beginning balance | (3,781) | (29,380) |
Total gain (loss) included in earnings | 1,579 | 0 |
Purchases and additions | 0 | 0 |
Settlements | 0 | 0 |
Ending balance | $ (2,202) | $ (29,380) |
Fair Value - Summary of Fair Va
Fair Value - Summary of Fair Value and Unpaid Principal Balance ("UPB") of Financial Assets and Liabilities With Elected Fair Value Option (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Estimated Fair Value | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | $ 16,623,561 | $ 11,114,100 |
Estimated Fair Value | Loans held for investment | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 724,306 | 771,724 |
Estimated Fair Value | Loans held for investment | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 12,662 | 136,274 |
Estimated Fair Value | Loans held for sale | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 18,743 | 161,861 |
Estimated Fair Value | Loans held for sale | Residential mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 58,751 | 12,123 |
Estimated Fair Value | HMBS related obligations | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 16,407,629 | 10,996,755 |
Estimated Fair Value | Nonrecourse debt in consolidated VIE trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 7,955,875 | 7,175,857 |
Estimated Fair Value | Nonrecourse MSR financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 988 | 60,562 |
Estimated Fair Value | Nonrecourse commercial loan financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 75,689 | 106,758 |
Estimated Fair Value | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 9,356 | |
Estimated Fair Value | Reverse mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 8,009,079 | 7,065,477 |
Estimated Fair Value | Commercial mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Estimated Fair Value | 365,748 | 389,161 |
Unpaid Principal Balance | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 15,850,053 | 10,719,000 |
Unpaid Principal Balance | Loans held for investment | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 685,924 | 724,800 |
Unpaid Principal Balance | Loans held for investment | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 12,946 | 143,373 |
Unpaid Principal Balance | Loans held for sale | Commercial mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 19,747 | 173,112 |
Unpaid Principal Balance | Loans held for sale | Residential mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 67,794 | 15,529 |
Unpaid Principal Balance | HMBS related obligations | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 15,850,053 | 10,719,000 |
Unpaid Principal Balance | Nonrecourse debt in consolidated VIE trusts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 8,139,139 | 7,819,992 |
Unpaid Principal Balance | Nonrecourse MSR financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 988 | 60,562 |
Unpaid Principal Balance | Nonrecourse commercial loan financing liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 74,604 | 105,291 |
Unpaid Principal Balance | Reverse mortgage loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 9,356 | |
Unpaid Principal Balance | Reverse mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | 7,974,381 | 7,240,125 |
Unpaid Principal Balance | Commercial mortgage loans | Loans held for investment, subject to nonrecourse debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid Principal Balance | $ 373,052 | $ 405,970 |
Fair Value - Summary of Compone
Fair Value - Summary of Components of Net Fair Value Gains On Loans and Related Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Interest income on reverse and commercial loans | $ 301,046 | $ 163,694 |
Change in fair value of loans | 266,821 | (510,802) |
Net fair value gains (losses) on loans | 567,867 | (347,108) |
Interest expense on HMBS and nonrecourse obligations | (203,050) | (106,643) |
Change in fair value of derivatives | (4,589) | 165,579 |
Change in fair value of related obligations | (183,834) | 295,132 |
Net fair value gains (losses) on related obligations | (391,473) | 354,068 |
Net fair value gains on loans and related obligations | $ 176,394 | $ 6,960 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Notes payable, carrying value | $ 408,990 | $ 399,402 |
Notes payable, fair value | $ 323,100 | $ 231,900 |
Reverse Mortgage Portfolio Co_2
Reverse Mortgage Portfolio Composition - Summary of the Composition and the Remaining UPBs of the Reverse Mortgage Loan Portfolio (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ 15,850,053 | $ 10,719,000 |
Reverse mortgage loans held for investment | 685,924 | 724,800 |
Reverse mortgage loans held for investment, subject to nonrecourse debt | 7,974,381 | 7,240,125 |
Serviced reverse mortgage loan portfolio | $ 24,812,506 | 18,841,394 |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of unpoolable loan | 98% | |
Total owned reverse mortgage portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serviced reverse mortgage loan portfolio | $ 24,510,358 | 18,683,925 |
Loans reclassified as government guaranteed receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serviced reverse mortgage loan portfolio | 92,905 | 76,033 |
Loans serviced for others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Serviced reverse mortgage loan portfolio | 209,243 | 81,436 |
Nonperforming HECM buyouts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonperforming HECM buyouts | 515,502 | 541,071 |
Performing HECM buyouts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to nonrecourse debt | 333,324 | 328,845 |
Non-agency reverse mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment, subject to nonrecourse debt | 7,125,555 | 6,370,209 |
Non-agency reverse mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | 275,390 | 489,038 |
Loans not securitized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | 199,145 | 88,029 |
Unpoolable loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | 200,686 | 136,657 |
Unpoolable tails | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse mortgage loans held for investment | $ 10,703 | $ 11,076 |
Reverse Mortgage Portfolio Co_3
Reverse Mortgage Portfolio Composition - Summarizes the Owned Reverse Mortgage Portfolio by Product Type (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Owned reverse mortgage portfolio | $ 24,510,358 | $ 18,683,925 |
Fixed rate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Owned reverse mortgage portfolio | 6,776,128 | 6,548,902 |
Adjustable rate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Owned reverse mortgage portfolio | $ 17,734,230 | $ 12,135,023 |
Reverse Mortgage Portfolio Co_4
Reverse Mortgage Portfolio Composition - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Foreclosure proceedings in process, amount | $ 558.9 | $ 489.3 |
Loans Held for Investment, Su_5
Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value - Schedule of Loans Held for Investment, Subject to HMBS Related Obligations, at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Loans held for investment, subject to HMBS related obligations - UPB | $ 15,850,053 | $ 10,719,000 |
Fair value adjustments | 773,508 | 395,100 |
Total loans held for investment, subject to HMBS related obligations, at fair value | $ 16,623,561 | $ 11,114,100 |
Loans Held for Investment, Su_6
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustments | $ 27,394 | $ (191,457) |
Total loans held for investment, subject to nonrecourse debt, at fair value | 8,374,827 | 7,454,638 |
Reverse mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, subject to nonrecourse debt - UPB | 7,974,381 | 7,240,125 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment, subject to nonrecourse debt - UPB | $ 373,052 | $ 405,970 |
Loans Held for Investment, Su_7
Loans Held for Investment, Subject to Nonrecourse Debt, at Fair Value - Schedule of Mortgage Loans Held For Investment, Subject to Nonrecourse Debt that Were Greater Than 90 Days Past Due and on Non-Accrual Status (Details) - Loans 90 days or more past due and on non-accrual status - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Difference | $ (2,085) | $ (2,698) |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for investment, total fair value | 23,157 | 21,325 |
Mortgage loans held for investment, total aggregate UPB | $ 25,242 | $ 24,023 |
Loans Held for Investment, at_3
Loans Held for Investment, at Fair Value - Schedule of Mortgage Loans Held For Investment At Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustments | $ 38,098 | $ 39,825 |
Loans held for investment, at fair value | 736,968 | 907,998 |
Reverse mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment - UPB | 685,924 | 724,800 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment - UPB | $ 12,946 | $ 143,373 |
Loans Held for Investment, at_4
Loans Held for Investment, at Fair Value - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale, at fair value | $ 77,494 | $ 173,984 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale, at fair value | 563,200 | 745,100 |
Commercial mortgage loans | Loans 90 days or more past due and on non-accrual status | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale, at fair value | $ 2,300 | $ 2,400 |
Loans Held for Sale, at Fair _3
Loans Held for Sale, at Fair Value - Schedule of Mortgage Loans Held For Sale, At Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustments | $ (10,047) | $ (14,657) |
Total loans held for sale, at fair value | 77,494 | 173,984 |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale - UPB | 67,794 | 15,529 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale - UPB | $ 19,747 | $ 173,112 |
Loans Held for Sale, at Fair _4
Loans Held for Sale, at Fair Value - Schedule of Mortgage Loans Held For Sale that were Greater Than 90 Days Past Due And On Non-Accrual Status (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, aggregate unpaid principal balance | $ 7,720 | $ 8,832 |
Difference | (743) | (966) |
Loans 90 days or more past due and on non-accrual status | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, at fair value | 6,977 | 7,866 |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, aggregate unpaid principal balance | 5,984 | 5,049 |
Residential mortgage loans | Loans 90 days or more past due and on non-accrual status | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, at fair value | 6,535 | 5,427 |
Commercial mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, aggregate unpaid principal balance | 1,185 | 3,405 |
Commercial mortgage loans | Loans 90 days or more past due and on non-accrual status | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale, at fair value | $ 993 | $ 2,817 |
Loans Held for Sale, at Fair _5
Loans Held for Sale, at Fair Value - Summary Of Reconciliation Of Changes In Loans Held For Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Loans Held-For-Sale [Roll Forward] | ||
Beginning balance | $ 173,984 | $ 158,156 |
Originations/purchases/repurchases | 79,286 | 430,806 |
Proceeds from sales | (200,456) | (368,656) |
Net transfers from loans held for investment | 15,580 | 0 |
Net transfers from discontinued operations | 12,526 | 0 |
Gain (loss) on loans held for sale, net | (12,387) | 5,534 |
Net fair value gain (loss) on loans held for sale | 8,961 | (7,372) |
Ending balance | $ 77,494 | $ 218,468 |
Loans Held for Sale, at Fair _6
Loans Held for Sale, at Fair Value - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Loans held for sale, at fair value pledged as collateral for financing lines of credit | $ 19.2 | $ 172.5 |
Mortgage Servicing Rights, at_3
Mortgage Servicing Rights, at Fair Value - Summary of Servicing Portfolio and its Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | $ 1,702,020 | $ 8,602,338 |
Weighted average interest rate | 3.53% | 3.59% |
Fannie Mae/Freddie Mac | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | $ 166,471 | $ 7,051,851 |
Ginnie Mae | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | 527,286 | 532,328 |
Private investors | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing rights | $ 1,008,263 | $ 1,018,159 |
Mortgage Servicing Rights, at_4
Mortgage Servicing Rights, at Fair Value - Rollforward Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Capitalized servicing rights | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Beginning balance | $ 8,602,338 | $ 39,299,416 |
Originations | 42,011 | 4,257,281 |
Sales | (6,845,346) | (8,368,734) |
Payoffs MSR | (36,793) | (805,668) |
Other | (60,190) | (323,737) |
Changes in fair value due to: | ||
Changes in fair value due to portfolio runoff and other | (60,190) | (323,737) |
Ending UPB | 1,702,020 | 34,058,558 |
MSR | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Beginning balance | 95,096 | 427,942 |
Originations | 405 | 53,444 |
Sales | (80,419) | (107,652) |
Other | (1,010) | (11,522) |
Changes in fair value due to: | ||
Changes in market inputs or assumptions used in valuation model | (359) | 63,890 |
Changes in fair value due to portfolio runoff and other | (1,010) | (11,522) |
Ending UPB | $ 13,713 | $ 426,102 |
Mortgage Servicing Rights, at_5
Mortgage Servicing Rights, at Fair Value - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Servicing Assets at Fair Value [Line Items] | |||
Contractually specified servicing fees, late fees, and other ancillary servicing revenue | $ 1.9 | $ 14.3 | |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fee income | ||
Asset Pledged as Collateral with Right | |||
Servicing Assets at Fair Value [Line Items] | |||
MSR | $ 1 | $ 60.6 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (74,378) | $ (65,081) |
Net | 260,322 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible assets, gross | 362,200 | 369,500 |
Accumulated Amortization | (74,378) | (65,081) |
Impairment | 0 | (7,300) |
Intangible assets, net | 287,822 | 297,119 |
Trade name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 27,500 | 34,800 |
Impairment | 0 | (7,300) |
Intangible assets, net | 27,500 | 27,500 |
Broker/customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, cost | 334,700 | 334,700 |
Accumulated Amortization | (74,378) | (65,081) |
Impairment | 0 | 0 |
Net | $ 260,322 | $ 269,619 |
Amortization Period (Years) | 9 years | 9 years |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (74,378) | $ (65,081) |
Intangible Assets, Net - Narrat
Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 9.3 | $ 9.3 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Amortization (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2023 | $ 27,892 |
2024 | 37,189 |
2025 | 37,189 |
2026 | 37,189 |
2027 | 37,189 |
Thereafter | 83,674 |
Total future amortization expense | $ 260,322 |
Other Assets, Net - Summary Of
Other Assets, Net - Summary Of Other Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Assets, Net [Line Items] | ||
Government guaranteed receivables | $ 82,980 | $ 66,947 |
Retained bonds, at fair value | 47,048 | 46,437 |
Receivables, net of allowance of $5,173 and $266, respectively | 28,612 | 53,008 |
Right-of-use assets | 27,933 | 27,933 |
Prepaid expenses | 16,788 | 10,522 |
Loans subject to repurchase from Ginnie Mae | 16,378 | 15,631 |
Servicer advances, net of allowance of $1,831 and $2,416, respectively | 5,894 | 7,230 |
Deposits | 1,396 | 1,191 |
Margin deposits | 540 | 4,318 |
Other | 24,360 | 33,099 |
Total other assets, net | 251,929 | 266,316 |
Accounts receivable, allowance for credit loss | 5,140 | 5,173 |
Servicer advances, allowance | $ 1,831 | 2,416 |
American Advisors Group (AAG) | ||
Other Assets, Net [Line Items] | ||
Receivables, net of allowance of $5,173 and $266, respectively | $ 20,000 |
HMBS Related Obligations, at _3
HMBS Related Obligations, at Fair Value - Summary of HMBS Related Obligations, At Fair Value (Detail) - Home Equity Conversion Mortgage Backed Security - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Home Equity Conversion Mortgage Backed Security Related to Obligations At Fair Value [Line Items] | |||
Ginnie Mae loan pools - UPB | $ 15,850,053 | $ 10,719,000 | |
Fair value adjustments | 557,576 | 277,755 | |
Total HMBS related obligations, at fair value | $ 16,407,629 | $ 10,996,755 | |
Weighted average remaining life (in years) | 4 years 4 months 24 days | 4 years | |
Weighted average interest rate | 5.70% | 5% |
HMBS Related Obligations, at _4
HMBS Related Obligations, at Fair Value - Narrative (Details) - LoanPools | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Ginnie Mae loan pools | 2,229,000 | 2,004,000 |
Nonrecourse Debt, at Fair Val_3
Nonrecourse Debt, at Fair Value - Summary of Nonrecourse Debt at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Nonrecourse MSR financing liability, at fair value | $ 988 | $ 60,562 |
Nonrecourse reverse loan financing liability | 321,708 | 0 |
Nonrecourse commercial loan financing liability | 74,604 | 105,291 |
Fair value adjustments | (503,887) | (642,668) |
Total nonrecourse debt, at fair value | 8,032,552 | 7,343,177 |
Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 8,139,139 | 7,819,992 |
Securitization of performing / nonperforming HECM loans | ||
Debt Instrument [Line Items] | ||
Issue Date | July 2020 - August 2022 | |
Final Maturity Date | July 2030 - August 2032 | |
Original Issue Amount | $ 1,679,106 | |
Securitization of performing / nonperforming HECM loans | Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 924,776 | 953,336 |
Securitization of performing / nonperforming HECM loans | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.69% | |
Securitization of performing / nonperforming HECM loans | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 9.32% | |
Securitization of non-agency reverse loans | ||
Debt Instrument [Line Items] | ||
Issue Date | May 2018 -February 2023 | |
Final Maturity Date | March 2050 - November 2069 | |
Original Issue Amount | $ 8,799,462 | |
Securitization of non-agency reverse loans | Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 6,945,852 | 6,598,145 |
Securitization of non-agency reverse loans | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.25% | |
Securitization of non-agency reverse loans | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.50% | |
Securitization of Fix & Flip loans | ||
Debt Instrument [Line Items] | ||
Issue Date | April 2021 | |
Final Maturity Date | May 2025 | |
Original Issue Amount | $ 268,511 | |
Securitization of Fix & Flip loans | Nonrecourse | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 268,511 | $ 268,511 |
Securitization of Fix & Flip loans | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.10% | |
Securitization of Fix & Flip loans | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.40% |
Nonrecourse Debt, at Fair Val_4
Nonrecourse Debt, at Fair Value - Summary Of Estimated Maturities For Nonrecourse Debt Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Nonrecourse MSR financing liability | $ 988 | $ 60,562 |
Nonrecourse | ||
Debt Instrument [Line Items] | ||
2023 | 1,717,377 | |
2024 | 2,814,270 | |
2025 | 1,026,598 | |
2026 | 590,687 | |
2027 | 2,386,519 | |
Thereafter | 0 | |
Total payments on nonrecourse debt | $ 8,536,439 |
Other Financing Lines of Cred_3
Other Financing Lines of Credit - Summary Of Components of Other Financing Lines of Credit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 2,193,614 | |
Outstanding borrowings | 1,113,367 | $ 1,327,634 |
Mortgage Lines | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 138,274 | |
Outstanding borrowings | 82,204 | 139,225 |
Mortgage Lines | October 2023, First Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 50,000 | |
Outstanding borrowings | 6,270 | 83,814 |
Mortgage Lines | November 2023, Home Improvement Consumer Loans | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 50,000 | |
Outstanding borrowings | 37,660 | 7,495 |
Mortgage Lines | March 2026, MSR | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 0 | |
Outstanding borrowings | 0 | 10,312 |
Mortgage Lines | No Maturity, Mortgage Related Assets | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 38,274 | |
Outstanding borrowings | 38,274 | 37,604 |
Reverse Lines | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 1,942,840 | |
Outstanding borrowings | 994,798 | 983,410 |
Reverse Lines | No Maturity, Mortgage Related Assets | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 372,840 | |
Outstanding borrowings | 362,529 | 320,715 |
Reverse Lines | April 2023 - November 2023, First Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 1,450,000 | |
Outstanding borrowings | 520,794 | 584,658 |
Reverse Lines | October 2027, MSR | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 70,000 | |
Outstanding borrowings | 61,475 | 33,036 |
Reverse Lines | May 2023, Unsecurized Tails | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 50,000 | |
Outstanding borrowings | $ 50,000 | $ 45,001 |
Reverse Lines | May 2023, Unsecurized Tails | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | 0.50% |
Reverse Lines | May 2023, Unsecurized Tails | Prime Rate, Floor | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 6% | 6% |
Commercial Lines | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | $ 112,500 | |
Outstanding borrowings | 36,365 | $ 204,999 |
Commercial Lines | No Maturity, Encumbered Agricultural Loans | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 0 | |
Outstanding borrowings | 0 | 7,561 |
Commercial Lines | October 2023 - November 2023, First Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 100,000 | |
Outstanding borrowings | 23,865 | 159,938 |
Commercial Lines | No Maturity, Second Lien Mortgages | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 0 | |
Outstanding borrowings | 0 | 25,000 |
Commercial Lines | January 2024, Mortgage Related Assets | ||
Line of Credit Facility [Line Items] | ||
Total Capacity | 12,500 | |
Outstanding borrowings | $ 12,500 | $ 12,500 |
Other Financing Lines of Cred_4
Other Financing Lines of Credit - Narrative (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Line of credit | ||
Line of Credit Facility [Line Items] | ||
Financing line of credit outstanding, weighted average interest rate | 7.25% | 7.35% |
Other Financing Lines of Cred_5
Other Financing Lines of Credit - Summary Of Maximum Allowable Distributions Available To The Company Based On The Most Restrictive Of Such Financial Covenant Ratios (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
FAM | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 77,851 | $ 100,907 |
Liquidity | $ 22,191 | $ 23,368 |
Debt instrument, covenant, leverage ratio | 6.8 | 9.30 |
FAR | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 452,738 | $ 267,067 |
Liquidity | $ 38,210 | $ 28,718 |
Debt instrument, covenant, leverage ratio | 3.4 | 5.29 |
FAH | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 487,938 | $ 310,850 |
Liquidity | $ 63,819 | $ 52,270 |
Debt instrument, covenant, leverage ratio | 3.7 | 6.55 |
Requirement | FAM | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 75,000 | $ 100,000 |
Liquidity | $ 20,000 | $ 20,000 |
Debt instrument, covenant, leverage ratio | 13 | 13 |
Requirement | FAR | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 250,000 | $ 250,000 |
Liquidity | $ 36,086 | $ 24,724 |
Debt instrument, covenant, leverage ratio | 6 | 6 |
Requirement | FAH | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 300,000 | $ 300,000 |
Liquidity | $ 45,000 | $ 45,000 |
Debt instrument, covenant, leverage ratio | 10 | 10 |
Maximum Allowable Distribution | FAM | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 2,851 | $ 907 |
Liquidity | $ 2,191 | $ 3,368 |
Debt instrument, covenant, leverage ratio | 37,318,000 | 28,732,000 |
Maximum Allowable Distribution | FAR | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 202,738 | $ 17,067 |
Liquidity | $ 2,124 | $ 3,994 |
Debt instrument, covenant, leverage ratio | 197,508 | 31,808,000 |
Maximum Allowable Distribution | FAH | ||
Debt Instrument Covenant Description [Line Items] | ||
Adjusted Tangible Net Worth | $ 187,938 | $ 10,850 |
Liquidity | $ 18,819 | $ 7,270 |
Debt instrument, covenant, leverage ratio | 309,682 | 107,292,000 |
Payables and Other Liabilitie_2
Payables and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables And Accruals [Line Items] | ||
Accrued liabilities | $ 129,360 | $ 54,664 |
GNMA reverse mortgage buyout payable | 59,846 | 41,768 |
Lease liabilities | 35,029 | 34,391 |
Accrued compensation expense | 25,060 | 19,333 |
Deferred purchase price liabilities | 19,653 | 3,918 |
Liability for loans eligible for repurchase from GNMA | 16,378 | 15,631 |
Repurchase reserves | 11,492 | 158 |
Deferred tax liability, net | 8,318 | 2,367 |
Warrant liability | 1,581 | 1,117 |
Derivative liabilities | 0 | 385 |
Total payables and other liabilities | 306,717 | $ 173,732 |
American Advisors Group (AAG) | ||
Payables And Accruals [Line Items] | ||
Deferred purchase price liabilities | $ 17,300 |
Litigation (Details)
Litigation (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) lawsuit | Mar. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of lawsuits | lawsuit | 3 | |
Legal expenses | $ | $ 0.9 | $ 0.9 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equal or greater than | ||
Commitments and Contingencies [Line Items] | ||
Outstanding principal balance of HECM is equal to or greater than MCA (in percent) | 98% | |
Outstanding principal balance is equal to or greater than MCA (in percent) | 98% | |
Loan purchase commitments | ||
Commitments and Contingencies [Line Items] | ||
Long-term purchase commitment | $ 300,000 | $ 1,700,000 |
Loan origination commitments | ||
Commitments and Contingencies [Line Items] | ||
Long-term purchase commitment | 12,400,000 | 133,600,000 |
HECM loans | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | 4,700,000,000 | 3,100,000,000 |
Fix and flip loans | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | 74,300,000 | 128,900,000 |
Agricultural loans | ||
Commitments and Contingencies [Line Items] | ||
Unfunded loan commitments | $ 6,400,000 | $ 26,700,000 |
Business Segment Reporting (Det
Business Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Fee income | $ 6,352 | $ 55,173 | |
Interest income | 2,091 | 1,184 | |
Interest expense | (31,556) | (23,480) | |
TOTAL REVENUES | 140,855 | 46,058 | |
TOTAL EXPENSES | 83,777 | 107,403 | |
OTHER, NET | 936 | 2,984 | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 58,014 | (58,361) | |
TOTAL ASSETS | 26,825,989 | $ 20,872,655 | |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Gain (loss) on sale and other income from loans held for sale, net | (12,426) | 6,221 | |
Net fair value gains on loans and related obligations | 176,394 | 6,960 | |
Fee income | 6,352 | 55,173 | |
Interest income | 2,091 | 1,184 | |
Interest expense | (31,556) | (23,480) | |
Net interest expense | (29,465) | (22,296) | |
TOTAL REVENUES | 140,855 | 46,058 | |
TOTAL EXPENSES | 83,777 | 107,403 | |
OTHER, NET | 936 | 2,984 | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 58,014 | (58,361) | |
Depreciation and amortization | 10,105 | 10,198 | |
TOTAL ASSETS | 26,674,539 | 20,080,663 | |
Operating segments | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Gain (loss) on sale and other income from loans held for sale, net | (12,370) | 10,928 | |
Net fair value gains on loans and related obligations | 176,394 | 2,970 | |
Fee income | 8,643 | 58,330 | |
Interest income | 1,470 | 1,090 | |
Interest expense | (23,996) | (16,777) | |
Net interest expense | (22,526) | (15,687) | |
TOTAL REVENUES | 150,141 | 56,541 | |
TOTAL EXPENSES | 60,203 | 82,138 | |
OTHER, NET | 31 | 3,241 | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 89,969 | (22,356) | |
Depreciation and amortization | 9,657 | 9,689 | |
TOTAL ASSETS | 26,623,676 | 20,046,439 | |
Operating segments | Retirement Solutions | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Gain (loss) on sale and other income from loans held for sale, net | (1,312) | 0 | |
Net fair value gains on loans and related obligations | 24,475 | 105,755 | |
Fee income | 3,180 | 3,805 | |
Interest income | 0 | 43 | |
Interest expense | 0 | (54) | |
Net interest expense | 0 | (11) | |
TOTAL REVENUES | 26,343 | 109,549 | |
TOTAL EXPENSES | 35,524 | 47,427 | |
OTHER, NET | 31 | 3,214 | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (9,150) | 65,336 | |
Depreciation and amortization | 9,643 | 9,598 | |
TOTAL ASSETS | 296,417 | 417,791 | |
Operating segments | Portfolio Management | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Gain (loss) on sale and other income from loans held for sale, net | (11,058) | 10,928 | |
Net fair value gains on loans and related obligations | 151,919 | (102,785) | |
Fee income | 5,463 | 54,525 | |
Interest income | 1,470 | 1,047 | |
Interest expense | (23,996) | (16,723) | |
Net interest expense | (22,526) | (15,676) | |
TOTAL REVENUES | 123,798 | (53,008) | |
TOTAL EXPENSES | 24,679 | 34,711 | |
OTHER, NET | 0 | 27 | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 99,119 | (87,692) | |
Depreciation and amortization | 14 | 91 | |
TOTAL ASSETS | 26,327,259 | 19,628,648 | |
Corporate and Other | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Gain (loss) on sale and other income from loans held for sale, net | 0 | 0 | |
Net fair value gains on loans and related obligations | 0 | 0 | |
Fee income | 2,953 | 9,039 | |
Interest income | 621 | 94 | |
Interest expense | (7,560) | (6,703) | |
Net interest expense | (6,939) | (6,609) | |
TOTAL REVENUES | (3,986) | 2,430 | |
TOTAL EXPENSES | 28,874 | 38,283 | |
OTHER, NET | 905 | (152) | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (31,955) | (36,005) | |
Depreciation and amortization | 448 | 509 | |
TOTAL ASSETS | 1,912,801 | 1,769,059 | |
Eliminations | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Gain (loss) on sale and other income from loans held for sale, net | (56) | (4,707) | |
Net fair value gains on loans and related obligations | 0 | 3,990 | |
Fee income | (5,244) | (12,196) | |
Interest income | 0 | 0 | |
Interest expense | 0 | 0 | |
Net interest expense | 0 | 0 | |
TOTAL REVENUES | (5,300) | (12,913) | |
TOTAL EXPENSES | (5,300) | (13,018) | |
OTHER, NET | 0 | (105) | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
TOTAL ASSETS | $ (1,861,938) | $ (1,734,835) |
Business Segment Reporting - Na
Business Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Liquidity and Capital Require_2
Liquidity and Capital Requirements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Liquidity And Capital Requirements [Line Items] | ||
Cash and cash equivalents | $ 69,313 | $ 61,149 |
Minimum net capital requirement | 300 | |
Policyholders' surplus | 8,000 | |
Total requirement | 4,000 | |
MISSOURI | ||
Liquidity And Capital Requirements [Line Items] | ||
Minimum capital and surplus | 1,600 | |
ALABAMA | ||
Liquidity And Capital Requirements [Line Items] | ||
Minimum capital and surplus | 200 | |
FAM | ||
Liquidity And Capital Requirements [Line Items] | ||
Minimum adjusted net worth balance of capital requirements | 38,100 | |
Adjusted balance of capital requirements | 77,851 | $ 100,907 |
Net worth | $ 5,000 | |
FAR commitment with addition to net worth (in percent) | 1% | |
Liquidity (in percent) | 20% | |
Net worth to total assets (in percent) | 6% | |
Minimum tangible net worth required | $ 164,000 | |
Tangible capital, actual | 441,400 | |
Cash | 32,800 | |
Cash and cash equivalents | 38,200 | |
FAM | MISSOURI | ||
Liquidity And Capital Requirements [Line Items] | ||
Adjusted balance of capital requirements | $ 82,600 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 USD ($) shares | Dec. 06, 2022 USD ($) shares | Mar. 31, 2023 USD ($) note | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Nov. 30, 2020 USD ($) | |
Working Capital Promissory Notes | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding advance | $ 56,580,000 | $ 56,580,000 | $ 46,790,000 | |||
Interest expense, related party | $ 400,000 | 0 | ||||
Working Capital Promissory Notes | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Number of promissory notes | note | 2 | |||||
Working Capital Promissory Notes | BTO Urban Holdings And Libman Family Holdings, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate (in percent) | 6.50% | |||||
Originated Agricultural Loans | FarmOp Capital Holdings, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, purchases from related party | $ 0 | $ 73,300,000 | ||||
Originated Agricultural Loans Funded Draw Amounts | FarmOp Capital Holdings, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amounts of transaction | $ 15,400,000 | $ 88,700,000 | ||||
Promissory Notes | FarmOp Capital Holdings, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate (in percent) | 10% | |||||
Outstanding promissory notes | $ 4,700,000 | $ 4,700,000 | 4,700,000 | |||
Allowance for loan losses | $ 4,700,000 | |||||
Promissory Notes | Related Parties Of FOA | ||||||
Related Party Transaction [Line Items] | ||||||
Original issue amount | $ 135,000,000 | |||||
Stock Purchase Agreement | BL Investor | Class A Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Numbers of shares purchased by investors | shares | 10,896,556,000 | |||||
Aggregate purchase price of shares purchased by investors | $ 15,000,000 | |||||
Stock Purchase Agreement | Blackstone Investor | Class A Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Numbers of shares purchased by investors | shares | 10,896,556,000 | |||||
Aggregate purchase price of shares purchased by investors | $ 15,000,000 | |||||
Stock Purchase Agreement | Blackstone Investor and BL Investor | Class A Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Numbers of shares purchased by investors | shares | 21,739,132,000 | |||||
Aggregate purchase price of shares purchased by investors | $ 30,000,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic Earnings Per Share by Common Class (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator | ||
Net income (loss) from continuing operations | $ 55,482 | $ (50,639) |
Less: Income (loss) from continuing operations attributable to noncontrolling interest | 36,755 | (41,203) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 18,727 | (9,436) |
Net loss from discontinued operations | (40,890) | (13,356) |
Less: Loss attributable to noncontrolling interest from discontinued operations | (25,217) | (14,299) |
Net income (loss) from discontinued operations attributable to holders of Class A Common Stock - basic | $ (15,673) | $ 943 |
Denominator | ||
Weighted average shares of Class A Common Stock outstanding - basic (in shares) | 64,016,845 | 60,773,891 |
Basic net income (loss) per share | ||
Continuing operations (in usd per share) | $ 0.29 | $ (0.16) |
Discontinued operations (in USD per share) | (0.24) | 0.02 |
Basic net income (loss) per share (in usd per share) | $ 0.05 | $ (0.14) |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Diluted Earnings Per Share by Common Class (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | |
Numerator | ||
Net income (loss) from discontinued operations attributable to holders of Class A Common Stock - basic | $ | $ (15,673) | $ 943 |
Reallocation of net income (loss) from discontinued operations assuming exchange of Class A LLC Units | $ | (12,470) | (14,308) |
Net loss from discontinued operations attributable to holders of Class A Common Stock - diluted | $ | $ (28,143) | $ (13,365) |
Denominator | ||
Weighted average shares of Class A Common Stock outstanding - basic (in shares) | shares | 64,016,845 | 60,773,891 |
Forward Sale Contract - Dilutive Shares (in shares) | shares | 2,124,214 | 0 |
Diluted weighted average shares outstanding (in shares) | shares | 190,301,012 | 189,448,936 |
Diluted net income (loss) per share | ||
Diluted net income (loss) per share from continuing operations (in usd per share) | $ / shares | $ 0.22 | $ (0.23) |
Diluted net loss per share from discontinued operations (in USD per share) | $ / shares | (0.15) | (0.07) |
Diluted net loss per share from continuing operations (in USD per share) | $ / shares | $ 0.07 | $ (0.30) |
Exchange ratio | 1 | |
Class A Common Stock | ||
Numerator | ||
Net income (loss) from continuing operations attributable to holders of Class A Common Stock - basic | $ | $ 18,727 | $ (9,436) |
Reallocation of net income (loss) assuming exchange of Class A LLC Units | $ | 23,328 | (33,925) |
Net income (loss) from continuing operations attributable to holders of Class A Common Stock - diluted | $ | $ 42,055 | $ (43,361) |
Denominator | ||
Weighted average shares of Class A Common Stock outstanding - basic (in shares) | shares | 64,016,845 | |
Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (in shares) | shares | 124,159,953 | 128,675,045 |
Diluted weighted average shares outstanding (in shares) | shares | 190,301,012 | 189,448,936 |
Diluted net income (loss) per share | ||
Diluted net loss per share from continuing operations (in USD per share) | $ / shares | $ 0.07 | $ (0.30) |
Award vesting cost responsibility (in percent) | 85% |
Equity (Detail)
Equity (Detail) | 3 Months Ended | |||
Mar. 31, 2023 units $ / shares shares | Mar. 31, 2023 $ / shares shares | Mar. 31, 2022 shares | Dec. 31, 2022 $ / shares shares | |
Class of Stock [Line Items] | ||||
Exchange ratio | 1 | |||
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 89,838,531 | 89,838,531 | 67,681,856 | |
Common stock, shares outstanding (in shares) | 85,580,031 | 85,580,031 | 63,423,356 | |
Common stock shares outstanding unvested portion (in shares) | 4,258,500 | |||
Stocks delivered | 98,424 | 9,836 | ||
Stock repurchased and retired during period, shares (in shares) | 292,360 | 0 | ||
Common stock, par value (in USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 15 | 15 | 14 | |
Common stock, shares outstanding (in shares) | 15 | 15 | 14 | |
Stock issued during period, new issues (in shares) | 1 | |||
Common stock, par value (in USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Class A LLC Units | ||||
Class of Stock [Line Items] | ||||
Stocks delivered | 582,698 | 10,804 | ||
Capital Unit, Class A | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 89,838,531 | 89,838,531 | ||
Conversion of stock, shares converted (in shares) | 3,601 | 49,696 | ||
Class A LLC Units | ||||
Class of Stock [Line Items] | ||||
Common units outstanding (in shares) | 229,140,023 | 229,140,023 | ||
Class A LLC Units | American Advisors Group (AAG) | ||||
Class of Stock [Line Items] | ||||
Contingent equity consideration, number of types | units | 2 | |||
Class A LLC Units | Class A Common Stock Shareholders | ||||
Class of Stock [Line Items] | ||||
Common units outstanding (in shares) | 85,580,031 | 85,580,031 | ||
Class A LLC Units | Noncontrolling Interest | ||||
Class of Stock [Line Items] | ||||
Common units outstanding (in shares) | 143,559,992 | 143,559,992 | ||
Class A LLC Units | Noncontrolling Interest | American Advisors Group (AAG) | ||||
Class of Stock [Line Items] | ||||
Common units outstanding (in shares) | 19,692,990 | 19,692,990 | ||
Class A LLC Units, Equity Classified, Indemnity Holdback | American Advisors Group (AAG) | ||||
Class of Stock [Line Items] | ||||
Contingent equity consideration (in shares) | 7,058,416 | |||
Class A LLC Units, Liability Classified | American Advisors Group (AAG) | ||||
Class of Stock [Line Items] | ||||
Contingent equity consideration (in shares) | 7,142,260 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Incenter Investments LLC - Subsequent Event $ in Millions | Apr. 20, 2023 USD ($) |
Segment Reporting Information [Line Items] | |
Consideration received | $ 17.5 |
Proceeds from sale of productive assets | 3.5 |
Notes receivable from sale of productive assets | $ 14 |
Incenter Lender Services LLC | |
Segment Reporting Information [Line Items] | |
Percentage of voting interest to be sold | 70% |