Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39964 | |
Entity Registrant Name | Home Point Capital Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-1116426 | |
Entity Address, Address Line One | 2211 Old Earhart Road, Suite 250 | |
Entity Address, City or Town | Ann Arbor | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48105 | |
City Area Code | 888 | |
Local Phone Number | 616-6866 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | HMPT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 138,470,843 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Entity Central Index Key | 0001830197 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 99,959 | $ 97,248 |
Restricted cash | 10,322 | 11,344 |
Cash and cash equivalents and Restricted cash | 110,281 | 108,592 |
Mortgage loans held for sale (at fair value) | 472,990 | 642,993 |
Mortgage servicing rights (at fair value) | 1,251,600 | 1,402,542 |
Property and equipment, net | 6,467 | 11,660 |
Accounts receivable, net | 117,623 | 124,691 |
Derivative assets | 30,727 | 25,611 |
Government National Mortgage Association loans eligible for repurchase | 91,768 | 85,937 |
Assets held for sale | 1,561 | 0 |
Other assets | 30,133 | 36,166 |
Total assets | 2,113,150 | 2,438,192 |
Liabilities: | ||
Warehouse lines of credit | 409,497 | 496,481 |
Term debt and other borrowings, net | 892,875 | 942,083 |
Accounts payable and accrued expenses | 50,262 | 64,349 |
Government National Mortgage Association loans eligible for repurchase | 91,768 | 85,937 |
Deferred tax liabilities | 140,218 | 183,860 |
Derivative liabilities | 3,605 | 4,110 |
Liabilities held for sale | 797 | 0 |
Other liabilities | 53,575 | 57,836 |
Total liabilities | 1,642,597 | 1,834,656 |
Note 9 - Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Preferred stock (250,000,000 authorized shares, none issued and outstanding, $0.0000000072 par value per share) | 0 | 0 |
Common stock (1,000,000,000 authorized shares, 138,430,573 and 138,398,707 shares issued and outstanding, $0.0000000072 par value per share) | 0 | 0 |
Additional paid-in capital | 514,483 | 513,710 |
(Accumulated deficit) retained earnings | (43,930) | 89,826 |
Total shareholders' equity | 470,553 | 603,536 |
Total liabilities and shareholders' equity | $ 2,113,150 | $ 2,438,192 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock, shares authorized (shares) | 250,000,000 | 250,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Preferred stock, par value (USD per share) | $ 0.0000 | $ 0.0000 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, shares authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 138,430,573 | 138,398,707 |
Shares of common stock outstanding (shares) | 138,430,573 | 138,398,707 |
Common stock, par value (USD per share) | $ 0.0000 | $ 0.0000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
(Loss) gain on loans, net | $ (1,490) | $ 45,404 |
Loan fee income | 1,655 | 19,904 |
Interest income | 12,467 | 27,077 |
Interest expense | (20,500) | (33,095) |
Interest expense, net | (8,033) | (6,018) |
Loan servicing fees | 58,827 | 81,064 |
Change in fair value of mortgage servicing rights | (159,247) | 17,183 |
Other income | 701 | 634 |
Total revenue, net | (107,587) | 158,171 |
Expenses: | ||
Compensation and benefits | 30,186 | 89,432 |
Loan expense | 1,333 | 9,015 |
Loan servicing expense | 13,157 | 5,746 |
Production technology | 4,569 | 4,865 |
General and administrative | 11,840 | 19,671 |
Depreciation | 4,260 | 2,687 |
Other expenses | 4,466 | 5,296 |
Total expenses | 69,811 | 136,712 |
(Loss) income before income tax | (177,398) | 21,459 |
Income tax benefit (expense) | 43,642 | (4,323) |
Loss from equity method investment | 0 | (5,272) |
Net (loss) income | $ (133,756) | $ 11,864 |
(Loss) earnings per share: | ||
Basic (in dollars per share) | $ (0.97) | $ 0.09 |
Diluted (in dollars per share) | $ (0.97) | $ 0.08 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Treasury Stock | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2021 | 139,326,953 | ||||
Beginning balance at Dec. 31, 2021 | $ 776,653 | $ 0 | $ 523,811 | $ 0 | $ 252,842 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock purchases (option exercise) (shares) | 97,223 | ||||
Employee stock purchases (option exercise) | 122 | 122 | |||
Equity-based compensation | 1,706 | 1,706 | |||
Stock repurchase (shares) | (461,690) | ||||
Stock repurchase | (1,513) | (1,513) | 0 | ||
Dividends to shareholders | (5,575) | (5,575) | |||
Net income (loss) | 11,864 | 11,864 | |||
Ending balance (in shares) at Mar. 31, 2022 | 138,962,486 | ||||
Ending balance at Mar. 31, 2022 | $ 783,257 | $ 0 | 525,639 | $ (1,513) | 259,131 |
Beginning balance (in shares) at Dec. 31, 2022 | 138,398,707 | 138,398,707 | |||
Beginning balance at Dec. 31, 2022 | $ 603,536 | $ 0 | 513,710 | 89,826 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock purchases (option exercise) (shares) | 31,866 | ||||
Employee stock purchases (option exercise) | (44) | (44) | |||
Equity-based compensation | 817 | 817 | |||
Net income (loss) | $ (133,756) | (133,756) | |||
Ending balance (in shares) at Mar. 31, 2023 | 138,430,573 | 138,430,573 | |||
Ending balance at Mar. 31, 2023 | $ 470,553 | $ 0 | $ 514,483 | $ (43,930) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net income (loss) | $ (133,756) | $ 11,864 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | ||
Depreciation | 4,260 | 2,687 |
Amortization of debt issuance costs | 792 | 846 |
(Loss) gain on loans, net | 1,490 | (45,404) |
(Credit) provision for representation and warranty reserve, net of charge offs | (1,416) | 341 |
Equity-based compensation expense | 817 | 1,706 |
Deferred income tax (benefit) expense | (43,642) | 2,898 |
Loss from equity method investment | 0 | 5,272 |
Originations and purchases of mortgage loans held for sale | (978,969) | (12,739,933) |
Proceeds from sale and payments of mortgage loans held for sale | 1,142,865 | 14,505,325 |
Loss on sale of mortgage servicing rights | 277 | 53,492 |
Decrease (increase) in fair value of mortgage servicing rights | 158,970 | (70,675) |
(Increase) decrease in fair value of mortgage loans held for sale | (3,440) | 132,031 |
(Increase) decrease in fair value of derivative assets, net | (5,621) | 93,554 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable, net | 6,623 | (42,890) |
Decrease (increase) in other assets | 5,912 | (5,365) |
Decrease in accounts payable and accrued expenses | (13,919) | (12,538) |
Decrease (increase) in other liabilities | (2,048) | 2,815 |
Net cash provided by operating activities | 139,195 | 1,896,026 |
Investing activities: | ||
Purchases of property and equipment | (478) | (2,170) |
Purchase of mortgage servicing rights | 0 | (8,588) |
Proceeds from sale of mortgage servicing rights | 0 | 390,532 |
Net cash (used for) provided by investing activities | (478) | 379,774 |
Financing activities: | ||
Proceeds from warehouse borrowings | 988,823 | 13,207,385 |
Payments on warehouse borrowings | (1,075,807) | (15,201,111) |
Proceeds from term debt borrowings | 0 | 135,000 |
Payments on term debt borrowings | (50,000) | (420,000) |
Proceeds from other borrowings | 0 | 45,000 |
Payments on other borrowings | 0 | (45,000) |
Payments of debt issuance costs | 0 | (167) |
Employee stock purchases (option expense) | (44) | |
Employee stock purchases (option expense) | 122 | |
Common stock repurchases | (1,513) | |
Dividends to shareholders | 0 | (5,575) |
Net cash used for financing activities | (137,028) | (2,285,859) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,689 | (10,059) |
Cash, cash equivalents and restricted cash at beginning of period | 108,592 | 207,790 |
Cash, cash equivalents and restricted cash at end of period | 110,281 | 197,731 |
Supplemental disclosure: | ||
Cash paid for interest | 26,788 | 42,409 |
Cash refunded for income taxes | $ (623) | $ (1,307) |
Organization and Operations
Organization and Operations | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | Organization and Operations Nature of Business Home Point Capital Inc., a Delaware corporation (“HPC”, or the “Company”), through its subsidiaries, is a residential mortgage originator and servicer with a business model focused on growing originations by leveraging a network of partner relationships and its servicing operation. The Company’s business operations are organized into the following two segments: (1) Origination and (2) Servicing. Home Point Financial Corporation (“HPF”), a New Jersey corporation and a wholly owned subsidiary of the Company, originates, sells, and services residential real estate mortgage loans throughout the U.S. and owns certain servicing assets. Home Point Corporation Insurance Agency LLC (“HPCIA”), a Michigan limited liability company, is a wholly owned subsidiary of the Company that brokers home owner insurance policies. In April 2023, the Company announced that it has entered into a definitive agreement to sell certain assets of the Company’s wholesale originations channel, which has historically been our primary business driver. For additional information refer to Note 20 – Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLC. On December 2, 2022, HPC completed the previously announced sale of its equity interests in Home Point Asset Management LLC (“HPAM”), and its wholly owned subsidiary, Home Point Mortgage Acceptance Corporation (“HPMAC”). Prior to the sale, HPAM was a wholly owned subsidiary of the Company and managed certain servicing assets. HPMAC, an Alabama Corporation, serviced residential real estate mortgage loans. |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of HPC and all its wholly owned subsidiaries, including HPF and HPCIA. The accompanying condensed consolidated financial statements have been prepared in conformity with Article 10 of Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The consolidated balance sheet as of December 31, 2022 and related notes were derived from the audited consolidated financial statements but do not include all disclosures required by U.S. GAAP for complete financial statements. Certain information and footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include normal recurring adjustments) necessary to fairly state, in all material respects, the Company’s financial position 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 financial information should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2022. All intercompany balances and transactions have been eliminated in consolidation. As noted above, in December 2022, HPC completed the sale of HPAM and HPMAC. The results of operations for HPAM and HPMAC are included in the March 31, 2022 condensed consolidated financial statements. Assets and Liabilities Held for Sale Long-lived assets or disposal groups to be sold are classified as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset or disposal group beyond one year; the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. We assess the fair value of a long-lived asset or disposal group less any costs to sell each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company ceases depreciation and reports long-lived assets and/or the assets and liabilities of the disposal group, if material, in the line items Assets held for sale and Liabilities held for sale, respectively, in our consolidated balance sheet. Refer to Note 20 – Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLC. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires HPC to make estimates and assumptions about future events that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable. Examples of reported amounts that rely on significant estimates include mortgage loans held for sale (“MLHS”), mortgage servicing rights (“MSRs”), servicing advances reserve, derivative assets, derivative liabilities, reserves for mortgage repurchases and indemnifications, and deferred tax valuation allowance considerations. Significant estimates are also used in determining the recoverability and fair value of property and equipment and goodwill. Accounting Standards Recently Adopted or Recently Issued but Not Yet Adopted As of March 31, 2023, there have been no new accounting pronouncements recently issued or adopted that have had or are reasonably likely to have a material impact on the Company’s condensed consolidated financial statements. |
Mortgage Loans Held for Sale
Mortgage Loans Held for Sale | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale The Company sells its originated mortgage loans into the secondary market. The Company may retain the right to service some of these loans upon sale through ownership of servicing rights. The following presents MLHS at fair value, by type: March 31, 2023 Unpaid Fair Value Total (dollars in thousands) Conventional (a) $ 336,556 $ (33,051) $ 303,505 Government (b) 170,014 (722) 169,292 Reverse (c) 302 (109) 193 Total $ 506,872 $ (33,882) $ 472,990 December 31, 2022 Unpaid Fair Value Total (dollars in thousands) Conventional (a) $ 425,160 $ (31,639) $ 393,521 Government (b) 254,800 (5,664) 249,136 Reverse (c) 355 (19) 336 Total $ 680,315 $ (37,322) $ 642,993 (a) Conventional includes mortgage loans meeting the eligibility requirements to be sold to FNMA or FHLMC. (b) Government includes mortgage loans meeting the eligibility requirements to be sold to GNMA (including Federal Housing Administration, Department of Veterans Affairs and United States Department of Agricultural mortgage loans). (c) Reverse mortgages presented in MLHS on the consolidated balance sheets as a result of a repurchase. MLHS on nonaccrual status had $23.8 million and $21.8 million of unpaid principal balances and $18.3 million and $16.7 million estimated fair value, as of March 31, 2023 and December 31, 2022, respectively. The Company had $0.5 billion in unpaid principal balance pledged to secure its mortgage warehouse line of credit as of March 31, 2023. The following presents a reconciliation of the changes in MLHS to the amounts presented on the condensed consolidated statements of cash flows: Three Months Ended March 31, 2023 2022 (dollars in thousands) Fair value at beginning of period $ 642,993 $ 5,107,161 Mortgage loans originated and purchased (a) 978,969 12,739,933 Proceeds on sales and payments received (a) (1,142,865) (14,505,325) Change in fair value 3,440 (132,031) Loss on sale (a) (9,547) (320,699) Fair value at end of period $ 472,990 $ 2,889,039 (a) This line as presented on the consolidated statements of cash flows excludes originated MSRs and MSR hedging. The following presents principal categories of Accounts receivable, net: March 31, 2023 December 31, 2022 (dollars in thousands) Servicing receivable-general $ 25,958 $ 14,943 Pair off receivable 2,136 619 Servicing sale receivable 27,104 29,503 Servicing advance receivable 59,786 77,257 Servicing advance reserve (2,417) (3,355) Agency receivable 280 595 Income tax receivable 2,308 1,902 Interest on servicing deposits 266 302 Other 2,202 2,925 Total $ 117,623 $ 124,691 As part of managing the Company’s servicing advances, servicing advance reserve is recognized with management’s estimate of current expected losses and maintained at a level that management considers adequate based upon continuing assessments of collectability, historical loss experience, current trends, and reasonable and supportable forecasts. The following presents changes to the servicing advance reserve: Three Months Ended March 31, 2023 2022 (dollars in thousands) Servicing advance reserve at beginning of period $ (3,355) $ (4,207) Additions (434) (7,517) Charge-offs 1,372 8,849 Servicing advance reserve at end of period $ (2,417) $ (2,875) |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. MSRs give the Company the contractual right to receive service fees and other remuneration in exchange for performing loan servicing functions on behalf of investors in mortgage loans and securities. Upon sale of a mortgage loan for which the Company retains the underlying servicing, an MSR asset is capitalized, which represents the current fair value of the future net cash flows that are expected to be realized for performing servicing activities. The following presents an analysis of the changes in capitalized MSRs: Three Months Ended March 31, 2023 2022 (dollars in thousands) Balance at beginning of period $ 1,402,542 $ 1,525,103 MSRs originated 18,984 208,741 MSRs purchased — 8,588 MSRs sold — (480,244) Changes in valuation model inputs (150,574) 276,987 Change due to cash payoffs and principal amortization (19,352) (48,950) Balance at end of period $ 1,251,600 $ 1,490,225 The following presents the Company’s total capitalized mortgage servicing portfolio (based on the unpaid principal balance (“UPB”) of the underlying mortgage loans): March 31, 2023 December 31, 2022 (dollars in thousands) Ginnie Mae $ 4,672,997 $ 4,357,853 Fannie Mae 46,887,734 47,198,689 Freddie Mac 36,796,627 37,082,471 Other 28,991 29,620 Total $ 88,386,349 $ 88,668,633 MSR balance $ 1,251,600 $ 1,402,542 The following presents the key weighted average assumptions used in determining the fair value of the Company’s MSRs: March 31, 2023 December 31, 2022 Discount rate 10.03 % 9.69 % Weighted average prepayment speeds 5.66 % 5.44 % Costs to service $113 $77 The key assumptions used to estimate the fair value of the MSRs are discount rate, the Conditional Prepayment Rate (“CPR” or “prepayment speeds”), and costs to service. An increase in prepayment speeds generally has an adverse effect on the value of MSRs as the underlying loans prepay faster. In a declining interest rate environment, the fair value of MSRs generally decreases as prepayments increase. A decrease in prepayment speeds generally has a positive effect on the value of the MSRs as the underlying loans prepay less frequently. In a rising interest rate environment, the fair value of MSRs generally increases as prepayments decrease. Increases in the discount rate result in a lower MSR value and decreases in the discount rate result in a higher MSR value. Increases in the costs to service generally have an adverse effect on the value of the MSRs as an increase in costs to service would reduce the Company’s future net cash inflows from servicing a loan. Conversely, decreases in the costs to service generally have a positive effect on the value of the MSRs. MSR uncertainties are hypothetical and do not always have a direct correlation with each assumption. Changes in one assumption may result in changes to another assumption, which might magnify or counteract the uncertainties. The Company reviews all its assumptions each quarter compared to other market participants and retrospectively reviews the prior quarter assumptions compared to subsequently available actual data and factors that into determining its current quarter’s assumptions. Certain key assumptions were reviewed and updated during the first quarter 2023 to more closely align with comparable market participants, supported by the Company’s quarterly retrospective review of actual cost to service incurred and custodial deposit ancillary income received. The following presents the impact on the fair value of the Company’s MSR portfolio when applying the following hypothetical data points: Discount Rate Prepayment Speeds Costs to Service 100 BPS Adverse Change 200 BPS Adverse Change 10% Adverse Change 20% Adverse Change 10% Adverse 20% Adverse (dollars in thousands) March 31, 2023 $ (56,780) $ (108,691) $ (32,088) $ (62,579) $ (19,760) $ (39,542) December 31, 2022 $ (66,658) $ (127,263) $ (36,353) $ (70,814) $ (13,388) $ (26,779) The following presents information related to loans serviced: March 31, 2023 December 31, 2022 (dollars in thousands) Total unpaid principal balance $ 88,864,506 $ 89,280,085 Loans 30-89 days delinquent 608,313 824,348 Loans delinquent 90 or more days or in foreclosure 529,099 555,293 The following presents components of Loan servicing fees as reported in the Company’s condensed consolidated statements of operations: Three Months Ended March 31, 2023 2022 (dollars in thousands) Contractual servicing fees $ 59,522 $ 80,763 Late fees 275 1,125 Other (970) (824) Total $ 58,827 $ 81,064 The Company held for its customers $4.1 million and $5.1 million of escrow funds recorded in Other liabilities in the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively. The Company reported $277.0 thousand and $53.5 million loss on MSR sales in the Change in fair value of mortgage servicing rights in the condensed consolidated statement of operations for the three months ended March 31, 2023 and 2022, respectively. The following presents the components of Change in fair value of MSRs: Three Months Ended March 31, 2023 2022 (dollars in thousands) Realization of cash flows $ (19,352) $ (48,950) Valuation inputs and assumptions (150,574) 276,987 Economic hedging results 10,927 (157,362) Loss on MSR sales (277) (53,492) Change in fair value of MSRs $ (159,276) $ 17,183 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The following presents the outstanding notional amounts and fair values of derivative instruments not designated as hedging instruments: March 31, 2023 Notional Derivative Derivative (dollars in thousands) Forward sale contracts $ 322,900 $ 350 $ 2,547 Interest rate lock commitments 388,275 3,235 166 Forward purchase contracts 89,000 82 143 Treasury futures purchase contracts 1,291,500 — — Margin 27,060 749 Total $ 30,727 $ 3,605 December 31, 2022 Notional Derivative Derivative (dollars in thousands) Forward sale contracts $ 819,900 $ 6,107 $ 1,200 Interest rate lock commitments 598,970 2,231 2,504 Forward purchase contracts 61,300 — 400 Treasury futures purchase contracts 897,500 — — Margin 17,273 6 Total $ 25,611 $ 4,110 The following presents the recorded gain (loss) on derivative financial instruments: Three Months Ended March 31, 2023 2022 (dollars in thousands) Forward sale contracts $ (6,967) $ (60,753) Interest rate lock commitments 3,341 88,668 Forward purchase contracts 202 (3,872) Interest rate swap and Treasury futures purchase contracts $ 10,826 $ (118,352) Counterparty agreements for forward commitments contain master netting agreements. The master netting agreements contain a legal right to offset amounts due to and from the same counterparty. The Company incurred no credit losses due to nonperformance of any of its counterparties for the three months ended March 31, 2023 and 2022. The following presents a summary of derivative assets and liabilities and related netting amounts: March 31, 2023 Gross Amounts Not Offset in the Statement of Financial Position (a) Gross Amount of Assets (Liabilities) Recognized Financial Instruments Cash Collateral Net Amount (dollars in thousands) Derivatives subject to master netting agreements: Assets: Forward sale contracts $ 350 $ (324) $ — $ 26 Forward purchase contracts 82 (16) 66 Liabilities: Forward sale contracts (2,547) 340 621 (1,586) Forward purchase contracts (143) — — (143) Derivatives not subject to master netting agreements: Assets: Interest rate lock commitments 3,235 — — 3,235 Liabilities: Interest rate lock commitments (166) — — (166) Total derivatives Assets $ 3,667 $ (340) $ — $ 3,327 Liabilities $ (2,856) $ 340 $ 621 $ (1,895) December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position (a) Gross Amount of Assets (Liabilities) Recognized Financial Instruments Cash Collateral Net Amount (dollars in thousands) Derivatives subject to master netting agreements: Assets: Forward sale contracts $ 6,107 $ (1,062) $ (3,790) $ 1,255 Liabilities: Forward sale contracts (1,200) 1,062 138 — Forward purchase contracts (400) — 400 — Derivatives not subject to master netting agreements: Assets: Interest rate lock commitments 2,231 — — 2,231 Liabilities: Interest rate lock commitments (2,504) — — (2,504) Total derivatives Assets $ 8,338 $ (1,062) $ (3,790) $ 3,486 Liabilities $ (4,104) $ 1,062 $ 538 $ (2,504) (a) Amounts disclosed for collateral received from or posted to the same counterparty includes cash up to and not exceeding the net amount of the derivative asset or liability presented in the balance sheet. The fair value of the total collateral received from or posted to the same counterparty may exceed the amounts presented. The amounts of collateral received from or posted to counterparty are presented as margin and included as a component of either Derivative assets or Other liabilities in the Balance Sheet. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Mortgage Loans Held for Sale The Company sells its originated mortgage loans into the secondary market. The Company may retain the right to service some of these loans upon sale through ownership of servicing rights. The following presents MLHS at fair value, by type: March 31, 2023 Unpaid Fair Value Total (dollars in thousands) Conventional (a) $ 336,556 $ (33,051) $ 303,505 Government (b) 170,014 (722) 169,292 Reverse (c) 302 (109) 193 Total $ 506,872 $ (33,882) $ 472,990 December 31, 2022 Unpaid Fair Value Total (dollars in thousands) Conventional (a) $ 425,160 $ (31,639) $ 393,521 Government (b) 254,800 (5,664) 249,136 Reverse (c) 355 (19) 336 Total $ 680,315 $ (37,322) $ 642,993 (a) Conventional includes mortgage loans meeting the eligibility requirements to be sold to FNMA or FHLMC. (b) Government includes mortgage loans meeting the eligibility requirements to be sold to GNMA (including Federal Housing Administration, Department of Veterans Affairs and United States Department of Agricultural mortgage loans). (c) Reverse mortgages presented in MLHS on the consolidated balance sheets as a result of a repurchase. MLHS on nonaccrual status had $23.8 million and $21.8 million of unpaid principal balances and $18.3 million and $16.7 million estimated fair value, as of March 31, 2023 and December 31, 2022, respectively. The Company had $0.5 billion in unpaid principal balance pledged to secure its mortgage warehouse line of credit as of March 31, 2023. The following presents a reconciliation of the changes in MLHS to the amounts presented on the condensed consolidated statements of cash flows: Three Months Ended March 31, 2023 2022 (dollars in thousands) Fair value at beginning of period $ 642,993 $ 5,107,161 Mortgage loans originated and purchased (a) 978,969 12,739,933 Proceeds on sales and payments received (a) (1,142,865) (14,505,325) Change in fair value 3,440 (132,031) Loss on sale (a) (9,547) (320,699) Fair value at end of period $ 472,990 $ 2,889,039 (a) This line as presented on the consolidated statements of cash flows excludes originated MSRs and MSR hedging. The following presents principal categories of Accounts receivable, net: March 31, 2023 December 31, 2022 (dollars in thousands) Servicing receivable-general $ 25,958 $ 14,943 Pair off receivable 2,136 619 Servicing sale receivable 27,104 29,503 Servicing advance receivable 59,786 77,257 Servicing advance reserve (2,417) (3,355) Agency receivable 280 595 Income tax receivable 2,308 1,902 Interest on servicing deposits 266 302 Other 2,202 2,925 Total $ 117,623 $ 124,691 As part of managing the Company’s servicing advances, servicing advance reserve is recognized with management’s estimate of current expected losses and maintained at a level that management considers adequate based upon continuing assessments of collectability, historical loss experience, current trends, and reasonable and supportable forecasts. The following presents changes to the servicing advance reserve: Three Months Ended March 31, 2023 2022 (dollars in thousands) Servicing advance reserve at beginning of period $ (3,355) $ (4,207) Additions (434) (7,517) Charge-offs 1,372 8,849 Servicing advance reserve at end of period $ (2,417) $ (2,875) |
Warehouse Lines of Credit
Warehouse Lines of Credit | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Warehouse Lines of Credit | Warehouse Lines of Credit The Company maintains mortgage warehouse lines of credit arrangements with various financial institutions, primarily to fund the origination of mortgage loans. The Company held mortgage funding arrangements with eight separate financial institutions with a total maximum borrowing capacity of $2.8 billion and $2.8 billion as of March 31, 2023 and December 31, 2022, respectively. These funding arrangements are primarily uncommitted. The Company had $2.4 billion and $2.3 billion of unused capacity under its warehouse lines of credit as of March 31, 2023 and December 31, 2022, respectively. The following presents the amounts outstanding and maturity dates under the Company’s various mortgage funding arrangements: Maturity Date (a) March 31, 2023 (dollars in thousands) $200 million Warehouse Facility (b) April 2023 $ 14,071 $35 million Warehouse Facility (c) June 2023 25,566 $450 million Warehouse Facility August 2023 58,530 $200 million Warehouse Facility (d) September 2023 67,249 $200 million Warehouse Facility (b) September 2023 21,388 $1,200 millions Warehouse Facility May 2024 130,384 $88.5 million Warehouse Facility Evergreen 3,929 $400 million Warehouse Facility (d) Evergreen 88,380 Gestation Warehouse Facility (d) Evergreen — Total $ 409,497 (a) The presented maturities are as of March 31, 2023. The Company is expected to terminate a majority of its warehouse lines of credit pursuant to the sale of certain agreements and assets used in or related to the Company’s wholesale originations channel. For additional information refer to Note 20 – Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLC and Note 22 - Subsequent Events . (b) Subsequent to March 31, 2023, these Warehouse Facilities were closed in April 2023. (c) Subsequent to March 31, 2023, the maturity of this Warehouse Facility has been extended from March 2023 to June 2023 and the capacity of this Warehouse Facility has been reduced from $50 million to $35 million. (d) Subsequent to March 31, 2023, these Warehouse Facilities were closed in May 2023. Maturity Date (d) December 31, 2022 (dollars in thousands) $50 million Warehouse Facility March 2023 41,928 $200 million Warehouse Facility March 2023 45,284 $450 million Warehouse Facility August 2023 149,513 $200 million Warehouse Facility September 2023 41,309 $200 million Warehouse Facility September 2023 32,011 $1,200 million Warehouse Facility May 2024 113,136 $88.5 million Warehouse Facility Evergreen 8,050 $400 million Warehouse Facility Evergreen 65,250 Gestation Warehouse Facility Evergreen — Early Funding (e) — Total $ 496,481 (d) Maturity Dates in this table are as of December 31, 2022. These Warehouse Facilities have been renewed as reflected in the table above. (e) In addition to warehouse facilities, the Company is an approved lender for early funding facilities with Fannie Mae through its As Soon As Pooled (“ASAP”) program and Freddie Mac through its Early Funding (“EF”) program. From time to time, the Company enters into agreements to deliver certified pools of mortgage loans and receive funding in exchange for such pools. All mortgage loans delivered under these programs must adhere to a set of eligibility criteria. Early funding programs with Fannie Mae and Freddie Mac do not have stated expiration dates or maximum capacities. The Company’s warehouse facilities’ variable interest rates are calculated using an index rate generally tied to a Secured Overnight Financing Rate (“SOFR”); plus applicable interest rate margins, with varying interest rate floors. The weighted average interest rate for the Company’s warehouse facilities was 6.19% and 2.91% for the quarter ended March 31, 2023 and for the year ended December 31, 2022, respectively. The Company’s borrowings are secured by MLHS at fair value. The Company’s warehouse facilities require the maintenance of certain financial covenants relating to net worth, profitability, liquidity, and ratio of indebtedness to net worth among others. The Company’s warehouse lines that contain profitability covenants were amended to allow for a net loss under such covenants for the three months ended March 31, 2023. The Company was in compliance with all warehouse facility covenants as of March 31, 2023. The following presents the Company’s term debt and other borrowings, net: Maturity Date Collateral March 31, 2023 December 31, 2022 (dollars in thousands) $1.0 billion MSR Facility May 2025 MSRs $ 400,000 $ 450,000 $500 million Senior Notes (a) February 2026 Unsecured 500,000 500,000 $85 million Servicing Advance Facility May 2023 Servicing Advances — — $35 million Operating Line of Credit (b) May 2023 Mortgage loans 1,000 1,000 Gross 901,000 951,000 Debt issuance costs (8,125) (8,917) Total $ 892,875 $ 942,083 (a) The aggregate principal amount of the Senior Notes issued was $550.0 million. The Company repurchased and retired $50.0 million of outstanding Senior Notes during the second quarter of 2022. (b) Subsequent to March 31, 2023, this line was terminated. Refer to Note 22 - Subsequent Events . The Company maintains a $1.0 billion MSR financing facility (the “MSR Facility”). In April 2022, the Company entered into an amendment to the MSR facility that, among other things, reduced the committed capacity from $650.0 million to $500.0 million. The amendment also replaced the LIBOR based interest rate with SOFR, plus the applicable interest rate margin, with advance rates generally ranging from 62.5% to 72.5% of the fair value of the underlying MSRs. The MSR Facility is collateralized by the Company’s FNMA, FHLMC, and GNMA MSRs. The MSR Facility has a three-year revolving period ending on May 4, 2024 followed by a one-year period during which the balance drawn must be repaid and no further amounts may be drawn down, which ends on May 20, 2025. The MSR Facility requires the maintenance of certain financial covenants relating to net worth, liquidity, and indebtedness of the Company. The Company was in compliance with all covenants under the MSR Facility as of March 31, 2023. In January 2021, the Company issued $550.0 million aggregate principal amount of its 5.0% Senior Notes due 2026 (the “Senior Notes”) in a private placement transaction. The Company repurchased and retired $50.0 million of outstanding Senior Notes in 2022. The Senior Notes are guaranteed on a senior unsecured basis by each of the Company’s wholly owned subsidiaries existing on the date of issuance, other than HPAM and HPMAC. The Senior Notes bear interest at a rate of 5.0% per annum, payable semi-annually in arrears. The Senior Notes will mature on February 1, 2026. The Indenture governing the Senior Notes contains covenants and restrictions that, among other things and subject to certain exceptions, limit the ability of the Company and its restricted subsidiaries to (i) incur additional debt or issue certain preferred shares; (ii) incur liens; (iii) make certain distributions, investments, and other restricted payments; (iv) engage in certain transactions with affiliates; and (v) merge or consolidate or sell, transfer, lease, or otherwise dispose of all or substantially all of their assets. The Senior Notes had a carrying value of $500.0 million and an estimated fair value of $377.0 million and $343.2 million as of March 31, 2023 and December 31, 2022, respectively. The valuation of the Senior Notes was determined based on observable trading information considered Level 2 inputs under the fair value hierarchy. For the Company’s other long-term secured borrowings not recorded at fair value, the carrying value approximated fair value due to the variable interest rate on the borrowings and the repricing of collateral. The Company has a $85.0 million servicing advance facility which is collateralized by all of the Company’s servicing advances. The facility carries an interest rate of Term SOFR plus a margin and an advance rate ranging from 85.0-95.0%. The servicing advance facility requires the maintenance of certain financial covenants relating to net worth, liquidity, and indebtedness of the Company. The Company was in compliance with all covenants under the servicing advance facility as of March 31, 2023. The Company also has a $35.0 million operating line, with an interest rate based on the Prime Rate. The operating line of credit was terminated on April 14, 2023. The Company had total available capacity of $431.8 million and $52.6 million for its MSR Facility and servicing advance facility, respectively as of March 31, 2023. The Company has no available capacity for its operating line of credit as of March 31, 2023. |
Term Debt and Other Borrowings,
Term Debt and Other Borrowings, Net | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Term Debt and Other Borrowings, Net | Warehouse Lines of Credit The Company maintains mortgage warehouse lines of credit arrangements with various financial institutions, primarily to fund the origination of mortgage loans. The Company held mortgage funding arrangements with eight separate financial institutions with a total maximum borrowing capacity of $2.8 billion and $2.8 billion as of March 31, 2023 and December 31, 2022, respectively. These funding arrangements are primarily uncommitted. The Company had $2.4 billion and $2.3 billion of unused capacity under its warehouse lines of credit as of March 31, 2023 and December 31, 2022, respectively. The following presents the amounts outstanding and maturity dates under the Company’s various mortgage funding arrangements: Maturity Date (a) March 31, 2023 (dollars in thousands) $200 million Warehouse Facility (b) April 2023 $ 14,071 $35 million Warehouse Facility (c) June 2023 25,566 $450 million Warehouse Facility August 2023 58,530 $200 million Warehouse Facility (d) September 2023 67,249 $200 million Warehouse Facility (b) September 2023 21,388 $1,200 millions Warehouse Facility May 2024 130,384 $88.5 million Warehouse Facility Evergreen 3,929 $400 million Warehouse Facility (d) Evergreen 88,380 Gestation Warehouse Facility (d) Evergreen — Total $ 409,497 (a) The presented maturities are as of March 31, 2023. The Company is expected to terminate a majority of its warehouse lines of credit pursuant to the sale of certain agreements and assets used in or related to the Company’s wholesale originations channel. For additional information refer to Note 20 – Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLC and Note 22 - Subsequent Events . (b) Subsequent to March 31, 2023, these Warehouse Facilities were closed in April 2023. (c) Subsequent to March 31, 2023, the maturity of this Warehouse Facility has been extended from March 2023 to June 2023 and the capacity of this Warehouse Facility has been reduced from $50 million to $35 million. (d) Subsequent to March 31, 2023, these Warehouse Facilities were closed in May 2023. Maturity Date (d) December 31, 2022 (dollars in thousands) $50 million Warehouse Facility March 2023 41,928 $200 million Warehouse Facility March 2023 45,284 $450 million Warehouse Facility August 2023 149,513 $200 million Warehouse Facility September 2023 41,309 $200 million Warehouse Facility September 2023 32,011 $1,200 million Warehouse Facility May 2024 113,136 $88.5 million Warehouse Facility Evergreen 8,050 $400 million Warehouse Facility Evergreen 65,250 Gestation Warehouse Facility Evergreen — Early Funding (e) — Total $ 496,481 (d) Maturity Dates in this table are as of December 31, 2022. These Warehouse Facilities have been renewed as reflected in the table above. (e) In addition to warehouse facilities, the Company is an approved lender for early funding facilities with Fannie Mae through its As Soon As Pooled (“ASAP”) program and Freddie Mac through its Early Funding (“EF”) program. From time to time, the Company enters into agreements to deliver certified pools of mortgage loans and receive funding in exchange for such pools. All mortgage loans delivered under these programs must adhere to a set of eligibility criteria. Early funding programs with Fannie Mae and Freddie Mac do not have stated expiration dates or maximum capacities. The Company’s warehouse facilities’ variable interest rates are calculated using an index rate generally tied to a Secured Overnight Financing Rate (“SOFR”); plus applicable interest rate margins, with varying interest rate floors. The weighted average interest rate for the Company’s warehouse facilities was 6.19% and 2.91% for the quarter ended March 31, 2023 and for the year ended December 31, 2022, respectively. The Company’s borrowings are secured by MLHS at fair value. The Company’s warehouse facilities require the maintenance of certain financial covenants relating to net worth, profitability, liquidity, and ratio of indebtedness to net worth among others. The Company’s warehouse lines that contain profitability covenants were amended to allow for a net loss under such covenants for the three months ended March 31, 2023. The Company was in compliance with all warehouse facility covenants as of March 31, 2023. The following presents the Company’s term debt and other borrowings, net: Maturity Date Collateral March 31, 2023 December 31, 2022 (dollars in thousands) $1.0 billion MSR Facility May 2025 MSRs $ 400,000 $ 450,000 $500 million Senior Notes (a) February 2026 Unsecured 500,000 500,000 $85 million Servicing Advance Facility May 2023 Servicing Advances — — $35 million Operating Line of Credit (b) May 2023 Mortgage loans 1,000 1,000 Gross 901,000 951,000 Debt issuance costs (8,125) (8,917) Total $ 892,875 $ 942,083 (a) The aggregate principal amount of the Senior Notes issued was $550.0 million. The Company repurchased and retired $50.0 million of outstanding Senior Notes during the second quarter of 2022. (b) Subsequent to March 31, 2023, this line was terminated. Refer to Note 22 - Subsequent Events . The Company maintains a $1.0 billion MSR financing facility (the “MSR Facility”). In April 2022, the Company entered into an amendment to the MSR facility that, among other things, reduced the committed capacity from $650.0 million to $500.0 million. The amendment also replaced the LIBOR based interest rate with SOFR, plus the applicable interest rate margin, with advance rates generally ranging from 62.5% to 72.5% of the fair value of the underlying MSRs. The MSR Facility is collateralized by the Company’s FNMA, FHLMC, and GNMA MSRs. The MSR Facility has a three-year revolving period ending on May 4, 2024 followed by a one-year period during which the balance drawn must be repaid and no further amounts may be drawn down, which ends on May 20, 2025. The MSR Facility requires the maintenance of certain financial covenants relating to net worth, liquidity, and indebtedness of the Company. The Company was in compliance with all covenants under the MSR Facility as of March 31, 2023. In January 2021, the Company issued $550.0 million aggregate principal amount of its 5.0% Senior Notes due 2026 (the “Senior Notes”) in a private placement transaction. The Company repurchased and retired $50.0 million of outstanding Senior Notes in 2022. The Senior Notes are guaranteed on a senior unsecured basis by each of the Company’s wholly owned subsidiaries existing on the date of issuance, other than HPAM and HPMAC. The Senior Notes bear interest at a rate of 5.0% per annum, payable semi-annually in arrears. The Senior Notes will mature on February 1, 2026. The Indenture governing the Senior Notes contains covenants and restrictions that, among other things and subject to certain exceptions, limit the ability of the Company and its restricted subsidiaries to (i) incur additional debt or issue certain preferred shares; (ii) incur liens; (iii) make certain distributions, investments, and other restricted payments; (iv) engage in certain transactions with affiliates; and (v) merge or consolidate or sell, transfer, lease, or otherwise dispose of all or substantially all of their assets. The Senior Notes had a carrying value of $500.0 million and an estimated fair value of $377.0 million and $343.2 million as of March 31, 2023 and December 31, 2022, respectively. The valuation of the Senior Notes was determined based on observable trading information considered Level 2 inputs under the fair value hierarchy. For the Company’s other long-term secured borrowings not recorded at fair value, the carrying value approximated fair value due to the variable interest rate on the borrowings and the repricing of collateral. The Company has a $85.0 million servicing advance facility which is collateralized by all of the Company’s servicing advances. The facility carries an interest rate of Term SOFR plus a margin and an advance rate ranging from 85.0-95.0%. The servicing advance facility requires the maintenance of certain financial covenants relating to net worth, liquidity, and indebtedness of the Company. The Company was in compliance with all covenants under the servicing advance facility as of March 31, 2023. The Company also has a $35.0 million operating line, with an interest rate based on the Prime Rate. The operating line of credit was terminated on April 14, 2023. The Company had total available capacity of $431.8 million and $52.6 million for its MSR Facility and servicing advance facility, respectively as of March 31, 2023. The Company has no available capacity for its operating line of credit as of March 31, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments to Extend Credit The Company’s Interest rate lock commitments (“IRLCs”) expose the Company to market risk if interest rates change and the loan is not economically hedged or committed to an investor. The Company is also exposed to credit loss if the loan is originated and not sold to an investor and the customer does not perform. The collateral upon extension of credit typically consists of a first deed of trust in the mortgagor’s residential property. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. Total commitments to originate loans were $0.4 billion and $0.6 billion as of March 31, 2023 and December 31, 2022, respectively. Litigation The Company is subject to various legal proceedings arising out of the ordinary course of business. There were no current or pending claims against the Company which are expected to have a material impact on the Company's condensed consolidated balance sheets, statements of operations, or cash flows. Regulatory Contingencies The Company is subject to periodic audits and examinations, both formal and informal in nature, from various federal and state agencies, including those made as part of regulatory oversight of the Company’s mortgage origination, servicing, and financing activities. Such audits and examinations could result in additional actions, penalties, or fines by state or federal governmental bodies, regulators, or the courts with respect to our mortgage origination, servicing, and financing activities, which may be applicable generally to the mortgage industry or to the Company in particular. The Company did not pay any material penalties or fines during the three months ended March 31, 2023 and 2022 and is not currently required to pay any such penalties or fines. |
Regulatory Net Worth Requiremen
Regulatory Net Worth Requirements | 3 Months Ended |
Mar. 31, 2023 | |
Mortgage Banking [Abstract] | |
Regulatory Net Worth Requirements | Regulatory Net Worth RequirementsThe Company is subject to various regulatory capital requirements administered by the Department of Housing and Urban Development (“HUD”), which govern non-supervised, direct endorsement mortgagees. The Company is also subject to regulatory capital requirements administered by Ginnie Mae, Fannie Mae, and Freddie Mac, which govern issuers of Ginnie Mae, Fannie Mae, and Freddie Mac securities. Additionally, the Company 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; these range from $0 to $1,000, depending on the state. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary remedial actions by regulators that, if undertaken, could (i) remove the Company’s ability to sell and service loans to, or on behalf of, the Agencies and (ii) have a direct material effect on the Company’s condensed consolidated financial statements. In accordance with the regulatory capital guidelines, the Company must meet specific quantitative measures of assets, liabilities, 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 the Company’s results, may significantly affect the Company’s net worth adequacy. The Company is subject to the following minimum net worth, minimum capital ratio, and minimum liquidity requirements established by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac Seller/Servicers, and Ginnie Mae for single family issuers: Minimum Net Worth The minimum net worth requirement for Fannie Mae and Freddie Mac is defined as follows: • Base Adjusted/Tangible Net Worth (as defined by HUD) of $2.5 million plus 25 basis points of outstanding UPB for total loans serviced. • Adjusted/Tangible Net Worth, as defined by HUD, is comprised of total equity less goodwill, intangible assets, affiliate receivables, deferred tax assets, prepaid expenses, and certain pledged assets. The minimum net worth requirement for Ginnie Mae is defined as follows: • Base Adjusted/Tangible Net Worth (as defined by HUD) of $2.5 million plus 35 basis points of the issuer’s total single-family effective outstanding obligations. • Adjusted/Tangible Net Worth, as defined by HUD, is comprised of total equity less goodwill, intangible assets, affiliate receivables, deferred tax assets, prepaid expenses, and certain pledged assets. Minimum Capital Ratio For Fannie Mae, Freddie Mac, and Ginnie Mae, the Company is also required to maintain a ratio of Adjusted/Tangible Net Worth to Total Assets greater than 6.0%. Minimum Liquidity The minimum liquidity requirement for Fannie Mae and Freddie Mac is defined as follows: • 3.5 basis points of total Agency servicing. • Incremental 200 basis points of total nonperforming Agency servicing, measured as 90 plus day delinquencies, in excess of 6.0% of the total Agency servicing UPB. • Allowable assets for liquidity may include: cash and cash equivalents (unrestricted); available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of Government Sponsored Enterprises (“GSEs”), US Treasury Obligations); and unused/available portion of committed servicing advance lines. The minimum liquidity requirement for Ginnie Mae is defined as follows: • Maintain liquid assets equal to the greater of $1.0 million or 10 basis points of the Company’s outstanding single-family MBS. The most restrictive of the requirements require the Company to maintain a minimum adjusted net worth balance of $224.7 million and $225.7 million as of March 31, 2023 and December 31, 2022, respectively. |
Representation and Warranty Res
Representation and Warranty Reserve | 3 Months Ended |
Mar. 31, 2023 | |
Mortgage Banking [Abstract] | |
Representation and Warranty Reserve | Representation and Warranty ReserveThe majority of the Company’s loan sale contracts include provisions requiring the Company to repurchase a loan if a borrower fails to make certain initial loan payments due to the acquirer or if the accompanying mortgage loan fails to meet customary representations and warranties. Historically, the Company received relief of certain repurchase obligations on loans sold to FNMA or FHLMC by taking advantage of their repurchase alternative program. This program provided the Company with the ability, in certain instances, to pay a fee to FNMA or FHLMC, in lieu of being obligated to repurchase the loan. In 2022, FNMA and FHMC notified the Company that they will not provide repurchase obligation relief through the repurchase alternative program beginning in the fourth quarter of 2022 until further notice. The Company has included considerations that it may receive relief of certain representations and warranty obligations on loans sold to FNMA or FHLMC on or after January 1, 2013 if FNMA or FHLMC satisfactorily concludes a quality control loan file review or if the borrower meets certain acceptable payment history requirements within 12 or 36 months after the loan is sold to FNMA or FHLMC, respectively. The current UPB of loans sold by the Company represents the maximum potential exposure to repurchases related to representations and warranties. Reserve levels are a function of expected losses based on historical experience and loan volume. While the amount of repurchases is uncertain, the Company considers the liability to be appropriate. The following presents the activity of the outstanding repurchase reserve: Three Months Ended March 31, 2023 2022 (dollars in thousands) Repurchase reserve at beginning of period $ 26,605 $ 24,577 Additions 10,049 5,566 Charge-offs (11,465) (5,225) Repurchase reserve at end of period $ 25,189 $ 24,918 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company uses fair value measurements to record certain assets and liabilities at fair value on a recurring basis, such as MSRs, derivatives, MLHS and Early buyout loans (“EBOs”). The Company has elected fair value accounting for MLHS and MSRs to more closely align the Company’s accounting with its interest rate risk strategies without having to apply the operational complexities of hedge accounting. The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level Input: Input Definition: Level 1 Unadjusted, quoted prices in active markets for identical assets or liabilities. Level 2 Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company. These may include quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk and others. Level 3 Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity), unobservable inputs may be used. Unobservable inputs reflect the Company's own assumptions about the factors that market participants would use in pricing the asset or liability and are based on the best information available in the circumstances. An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. While the Company believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methods or assumptions to estimate the fair value of certain financial statement items could result in a different estimate of fair value at the reporting date. Those estimated values may differ significantly from the values that would have been used had a readily available market for such items existed, or had such items been liquidated, and those differences could be material to the financial statements. Fair Value of Certain Assets and Liabilities The following describes the methods used in estimating the fair values of certain assets and liabilities: Mortgage loans held for sale. The majority of the Company's MLHS at fair value are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2. A smaller portion of the Company's MLHS consist of loans repurchased from the GSEs that have subsequently been deemed to be non-saleable to GSEs and Ginnie Mae when certain representations and warranties are breached. These loans, however, are saleable to other entities and are classified on the consolidated balance sheets as Mortgage loans held for sale. These repurchased loans are considered Level 3 and are valued based on recent sales prices of similar loans. Interest rate lock commitments. The Company estimates the fair value of IRLCs based on the value of the underlying mortgage loan, quoted MBS prices and estimates of the fair value of the MSRs and the probability that the mortgage loan will fund within the terms of the IRLC. The average pull-through rate for IRLCs was 65.2% and 77.5%as of March 31, 2023 and December 31, 2022, respectively. Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3. Forward sales and purchase commitments. The Company treats forward mortgage-backed securities purchase and sale commitments that have not settled as derivatives and recognizes them at fair value. These forward commitments will be fulfilled with loans not yet sold or securitized and new originations and purchases. The forward commitments allow the Company to reduce the risk related to market price volatility. The Company estimates the fair value of forward commitments based on quoted MBS prices. These derivatives are classified as Level 2. Interest rate swap futures contracts. The Company uses options on swap contracts to offset changes in the fair value of MSRs. The Company estimates the fair value of these MSR-related derivatives using quoted prices for similar instruments. These derivatives are classified as Level 2. Mortgage servicing rights. The Company uses a discounted cash flow approach to estimate the fair value of MSRs. This approach consists of projecting servicing cash flows discounted at a rate that management believes market participants would use in their determinations of value. The Company obtains valuations from an independent third party on a quarterly basis to support the reasonableness of the fair value estimate. Key assumptions used in measuring the fair value of MSRs include, but are not limited to, discount rates, prepayment speeds, and cost to service. Other assumptions such as delinquencies, are also considered resulting in a Level 3 classification. The following presents the major categories of assets and liabilities measured at fair value on a recurring basis: March 31, 2023 Level 1 Level 2 Level 3 Total (dollars in thousands) Assets: Mortgage loans held for sale $ — $ 466,853 $ 6,137 $ 472,990 Interest rate lock commitments — — 3,235 3,235 Forward sale contracts — 350 — 350 Forward purchase contracts — 82 — $ 82 Mortgage servicing rights — — 1,251,600 1,251,600 Total $ — $ 467,285 $ 1,260,972 $ 1,728,257 Liabilities: Interest rate lock commitments $ — $ — $ 166 $ 166 Forward sale contracts — 2,547 — 2,547 Forward purchase contracts — 143 — 143 Total $ — $ 2,690 $ 166 $ 2,856 December 31, 2022 Level 1 Level 2 Level 3 Total (dollars in thousands) Assets: Mortgage loans held for sale $ — $ 629,108 $ 13,885 $ 642,993 Interest rate lock commitments — — 2,231 2,231 Forward sale contracts — 6,107 — 6,107 Mortgage servicing rights — — 1,402,542 1,402,542 Total $ — $ 635,215 $ 1,418,658 $ 2,053,873 Liabilities: Interest rate lock commitments $ — $ — $ 2,504 $ 2,504 Forward sale contracts — 1,200 — 1,200 Forward purchase contracts — 400 — 400 Total $ — $ 1,600 $ 2,504 $ 4,104 The following presents a reconciliation of Level 3 assets measured at fair value on a recurring basis: Three Months Ended March 31, 2023 MSRs IRLC-Asset MLHS IRLC-Liability (dollars in thousands) Balance at beginning of period $ 1,402,542 $ 2,231 $ 13,885 $ 2,504 Purchases, sales, issuances, contributions, and settlements 18,984 — (4,237) — Change in fair value (169,926) 1,004 (1,146) (2,338) Transfers out (a) — — (2,365) — Balance at end of period $ 1,251,600 $ 3,235 $ 6,137 $ 166 Three Months Ended March 31, 2022 MSRs IRLC-Asset MLHS IRLC-Liability (dollars in thousands) Balance at beginning of period $ 1,525,103 $ 29,887 $ 20,218 $ 2,843 Purchases, sales, issuances, contributions, and settlements (262,915) — (1,564) 42,615 Change in fair value 228,036 (17,746) (52) — Transfers in (a) — — (826) — Balance at end of period $ 1,490,224 $ 12,141 $ 17,776 $ 45,458 (a) Transfers in (out) represents transfers between Levels 2 and 3, and reclassifications to Real estate owned (“REO”), foreclosure or claims. The following presents the fair value and UPB of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects its expected future economic performance: Fair Value Principal Difference (a) (dollars in thousands) March 31, 2023 $ 472,990 $ 506,872 $ (33,882) December 31, 2022 $ 642,993 $ 680,315 $ (37,322) (a) Represents the amount of (losses) gains related to changes in fair value of items accounted for using the fair value option included in Gain on loans, net within the condensed consolidated statements of operations. The Company had no other significant assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2023 and December 31, 2022, respectively. The following is a summary of the key unobservable inputs used in the valuation of the Level 3 assets: March 31, 2023 Assets: Key Input Range Weighted Mortgage servicing rights Discount rate 9.8% - 14.0% 10.0% Prepayment speeds 5.4% - 9.0% 5.7% Cost to service $109 - $229 $113 Interest rate lock commitments Pull-through rate 15% - 100% 65.2% Mortgage loans held for sale Investor pricing 60.4% - 101.6% 74.4% December 31, 2022 Assets: Key Input Range Weighted Mortgage servicing rights Discount rate 9.3% - 14.0% 9.7% Prepayment speeds 4.6% - 8.2% 5.4% Cost to service $74 - $133 $77 Interest rate lock commitments Pull-through rate 21.0% - 100.0% 77.5% Mortgage loans held for sale Investor pricing 65.0% - 103.6% 93.3% |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GoodwillThe Company performed an interim impairment test during the third quarter ended September 30, 2022, due to the impact of rising interest rates on the mortgage industry and the Company’s recent stock performance. The Company used the market-based valuation approach to determine fair value of its reporting units and compare against the carrying value of the reporting units, and the fair value was measured using inputs classified as Level 3 in the fair value hierarchy. Based upon the results of this evaluation, the Company recorded $10.8 million goodwill impairment charges in Corporate Impairment of goodwill, driven predominantly by a significant decline in our market capitalization. During the third quarter of 2022, the Company wrote off the $7.0 million and $3.8 million goodwill asset for the Origination and Servicing segments, respectively, and has no remaining goodwill balance as of March 31, 2023. |
Equity-based Compensation
Equity-based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-based Compensation | Equity-based Compensation In January 2021, the Company’s board of directors (“Board”) approved the adoption of the Company’s 2021 Incentive Plan (“2021 Plan”) and designated 6.9 million shares of the Company’s authorized common stock available for equity-based awards thereunder. The 2021 Plan allows for the assumption and substitution of outstanding options to purchase common units of Home Point Capital LP (“HPLP”) granted under the HPLP 2015 Option Plan (the “2015 Option Plan”), which was in place prior to the Company’s IPO. The expiration date of the 2021 Plan is the tenth (10th) anniversary of the effective date of the 2021 Plan, which is January 21, 2031. The 2021 Plan contains both time-vesting service criteria and performance based vesting terms, which are based on the achievement of specified performance criteria outlined in the underlying award agreement. Prior to the consummation of the merger in connection with the IPO, the 2015 Option Plan governed awards of stock options to key persons conducting business for HPLP and its direct and indirect subsidiaries, including the Company. The 2015 Option Plan allowed awards in the form of options that are exercisable into common units of HPLP. In connection with the IPO, all outstanding options under the 2015 Option Plan were canceled and “substitute options” were granted under the 2021 Plan. The exercise price and number of shares of common stock of the substitute options result in the same (subject to rounding) intrinsic value as the outstanding options granted under the 2015 Option Plan. Restricted Stock Units Restricted stock units (“RSUs”) are awards that represent the potential to receive shares of the Company’s common stock at the end of the applicable vesting period, subject to the terms and conditions of the 2021 Plan and the applicable award documents. RSUs awarded under the 2021 Plan are fair valued based upon the fair market value of the Company’s common stock on the grant date. Any person who holds RSUs has no ownership interest in the shares of the Company’s common stock to which such RSUs relate until and unless shares of common stock are delivered to the holder. The RSUs will be credited with dividend equivalent payments, as provided in Section 13(c)(iii) of the 2021 Plan. The following presents the summary of the Company’s RSU activity: Three Months Ended March 31, 2023 Units Weighted Outstanding at beginning of period 392,448 $ 6.12 Granted — — Vested (32,982) $ 3.79 Forfeited (50,636) $ 5.76 Outstanding at end of period 308,830 $ 6.42 The RSUs granted to the Company’s management team will vest in equal annual installments over a three-year period subject to the participants’ continued employment with the Company. The RSUs granted to the non-management members of the Company’s Board who are not affiliated with Stone Point Capital LLC vest at the next annual meeting of stockholders following the grant date. The Company recognized $0.2 million of compensation expense related to RSUs within Compensation and benefits expense on the consolidated statements of operations for both the three months ended March 31, 2023 and 2022. Performance Stock Units Performance stock units (“PSUs”) are fair valued on the date of grant and expensed over the service period using a straight-line method as the awards cliff vest at the end of a three-year performance period. The Company also estimates the number of shares expected to vest, which is based on management’s determination of the probable outcome of the Performance Condition (as defined below), which requires considerable judgment. The Company records a cumulative adjustment in periods in which the Company’s estimate of the number of shares expected to vest changes. Additionally, the Company ultimately adjusts the expense recognized to reflect the actual vested shares following the resolution of the Performance Condition. The PSUs will become earned based on the level of achievement of the Company’s average return on equity over a three-year performance period (the “Performance Condition”). The number of earned PSUs can range from 0% to 150% of the number of PSUs granted, depending on continued service with the Company and the extent to which the Performance Condition has been achieved at the end of the performance period. The PSUs will be credited with dividend equivalent payments, as provided in Section 13(c)(iii) of the 2021 Plan. The following presents the summary of the Company’s PSU activity: Three Months Ended March 31, 2023 Units Weighted-Average Grant Date Fair Value Outstanding at beginning of period 370,271 $ 7.43 Granted — — Forfeited (59,464) $ 3.79 Outstanding at end of period 310,807 $ 7.64 The Company did not recognize any compensation expense related to PSUs for the three months ended March 31, 2023 and 2022. Stock Option Awards The Company recognizes compensation expense associated with the stock option grants using the straight-line method over the requisite service period. The Company recognized $0.6 million and $1.7 million of compensation expense related to stock options within Compensation and benefits expense in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022, respectively. The unrecognized compensation expense related to outstanding and unvested stock options was $40.3 million as of March 31, 2023, which is expected to vest and get recognized over a weighted-average period of 5.06. The unrecognized compensation expense was $68.6 million for the three months ended March 31, 2022. The number of options vested and exercisable was 2,185,555 and the weighted-average exercise price of the options exercisable was $4.98 as of March 31, 2023. The following presents the summary of the Company’s stock option activity under the 2021 Plan: Three Months Ended March 31, 2023 Number of Weighted Weighted Weighted Outstanding at beginning of period 10,933,893 $ 4.64 4.70 $ 8.27 Granted 291,200 1.80 0.25 9.86 Exercised (50,958) 6.83 0.03 9.74 Forfeited (167,028) 1.85 0.04 9.40 Expired (272,325) 3.74 1.00 9.75 Outstanding at end of period 10,734,782 $ 4.69 4.41 $ 8.25 The following presents the summary of the Company’s non-vested activity under the 2021 Plan: Three Months Ended March 31, 2023 Number of Shares Weighted Average Grant Date Fair Value Non-vested at beginning of period 8,566,613 $ 8.12 Granted 291,200 9.86 Vested 181,725 8.95 Exercised (50,958) 9.74 Forfeited (167,028) 9.40 Expired (272,325) 9.75 Non-vested at end of period 8,549,227 $ 8.26 The following presents assumptions used in the Black-Scholes option valuation model to determine the weighted-average fair value per stock option granted: Three Months Ended March 31, 2023 2022 Expected life (in years) 8.21 8.26 Risk-free interest rate 0 - 3.0% 0.56% - 2.95% Expected volatility 24.9% 24.9% Dividend yield — — The expected life of each stock option is estimated based on its vesting and contractual terms. The risk-free interest rate reflected the yield on zero-coupon Treasury securities with a term approximating the expected life of the stock options. The expected volatility was based on an analysis of the historical volatilities of peer companies, adjusted for certain characteristics specific to the Company. The Company applied an estimated forfeiture rate of 0%-10.4% and 0%-10.0% as of March 31, 2023 and December 31, 2022, respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share (Loss) earnings per share (“EPS”) is calculated and presented in the consolidated financial statements for both basic and diluted earnings per share. Basic EPS excludes all dilutive common stock equivalents and is calculated by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted EPS, as calculated using the treasury stock method, reflects the potential dilution that would occur if the Company’s dilutive outstanding stock options and stock awards were issued and exercised. The following presents the calculation of the basic and diluted (loss) earnings per share: Three Months Ended March 31, 2023 2022 (dollars in thousands, except share and per share amounts ) Net (loss) income $ (133,756) $ 11,864 Numerator: Net (loss) income attributable to common shareholders $ (133,756) $ 11,864 Net (loss) income attributable to Home Point - diluted $ (133,756) $ 11,864 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 138,422 139,171 Dilutive effect of common stock equivalents — 1,408 Weighted average shares of common stock outstanding - diluted 138,422 140,579 (Loss) earnings per share of common stock outstanding - basic $ (0.97) $ 0.09 (Loss) earnings per share of common stock outstanding - diluted $ (0.97) $ 0.08 As a result of the net loss from continuing operations for the three months ended March 31, 2023, the effect of certain dilutive securities was excluded from the computation of weighted average diluted shares outstanding, as inclusion would have resulted in antidilution. |
Shareholders' Equity and Equity
Shareholders' Equity and Equity Method Investment | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity and Equity Method Investment | Shareholders’ Equity and Equity Method Investment Common Stock Repurchases On February 24, 2022, the Company’s board of directors approved the repurchase of shares of the Company’s common stock, par value $0.0000000072 per share (the “Common Stock”), in an aggregate amount not to exceed $8.0 million, from time to time through and including December 31, 2022 pursuant to one or more plans adopted under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Stock Repurchase Program”). The Company repurchased 461,690 shares of Common Stock at an aggregate price of $1.5 million, including commissions and fees, through market purchase transactions under the Stock Repurchase Program as of March 31, 2022. The Company values shares of common stock held in treasury at cost. Shares repurchased under the program have been subsequently retired. Equity Method Investment The Company held an equity method investment in Longbridge through a 49.6% voting ownership interest, which was the only equity method investment held by the Company. The Company entered into a definitive agreement in February of 2022 to sell its investment in Longbridge. During the third quarter of 2022, an impairment charge of $8.8 million was recognized for the held for sale balance of equity method investment in Loss from equity method investment in the consolidated statement of operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rate was 24.6% and 20.1% for the three months ended March 31, 2023 and 2022, respectively, compared to the statutory rate of 21.0%. The Company calculated the provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusted for discrete items that occurred during the period. Several factors influence the effective tax rate, including the impact of the equity investment, state taxes, uncertain tax positions, changes in valuation allowance, and permanent disallowed deductions for tax such as officer's compensation limitations applicable to a public entity. Total benefit for income taxes was $43.6 million and total provision for income taxes was $4.3 million for the three months ended March 31, 2023 and 2022, respectively. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments | Segments Management has organized the Company into two reportable segments based primarily on its services as follows: (1) Origination and (2) Servicing. Each reportable segment has discrete financial information evaluated regularly by the chief operating decision maker (“CODM”) in monitoring performance, allocating capital, and making strategic and operational decisions that align with the Company and its internal operations. Origination In the Origination segment, the Company originates residential real estate mortgage loans in the U.S. through the consumer direct third party originations, and prior to its sale, which was completed in June 2022, the correspondent channel. The Company’s origination channels offer a variety of loan programs that support the financial needs of the borrowers. The Company’s primary source of revenue is the difference between the cost of originating or purchasing the loan and the price at which the loan is sold to investors as well as the fair value of originated MSRs and hedging gains and losses. Loan origination fees and interest income earned on loans held for sale or securitization are also included in the revenue for this segment. Servicing In the Servicing segment, the Company generates revenue through contractual fees earned by performing daily administrative and management activities for mortgage loans. These activities include collecting loan payments, remitting payments to investors, sending monthly statements, managing escrow accounts, servicing delinquent loan work-outs, and managing and disposing of foreclosed properties. In February 2022, the Company entered into an agreement with ServiceMac, LLC (“ServiceMac”), a wholly owned subsidiary of First American Financial Corporation, pursuant to which ServiceMac subservices all mortgage loans underlying the Company’s MSRs. 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. ServiceMac began subservicing loans for the Company in the second quarter of 2022. Other Information About the Company’s Segments The Company's CODM evaluates performance, makes operating decisions, and allocates resources based on the Company's contribution margin. Contribution margin is the Company’s measure of profitability for its two reportable segments. Contribution margin is defined as revenue from Gain on loans, net, Loan fee income, Loan servicing fees, Change in fair value of MSRs, Interest income, and Other income (which includes Income from equity method investment) adjusted for the change in fair value attributable to valuation assumptions of MSRs and less directly attributable expenses. Directly attributable expenses include salaries, commissions and associate benefits, general and administrative expenses, and other expenses, such as servicing and origination costs. Direct operating expenses driven by the activities of the segments are included in the respective segments. The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting. Additionally, the Company does not enter into transactions between its reportable segments. The Company also reports an “All Other” category that includes unallocated corporate expenses, such as IT, finance, and human resources. These operations are neither significant individually or in aggregate and therefore do not constitute a reportable segment. The following presents the key operating data for the Company’s business segments: Three Months Ended March 31, 2023 Origination Servicing Segments All Other Total Reconciling Total (dollars in thousands) Revenue: Loss on loans, net $ (1,490) $ — $ (1,490) $ — $ (1,490) $ — $ (1,490) Loan fee income 1,655 — 1,655 — 1,655 — 1,655 Loan servicing fees — 58,827 58,827 — 58,827 — 58,827 Change in fair value of mortgage servicing rights — (159,247) (159,247) — (159,247) — (159,247) Interest income (expense), net 810 6,895 7,705 (15,738) (8,033) — (8,033) Other income 1 — 1 700 701 — 701 Total $ 976 $ (93,525) $ (92,549) $ (15,038) $ (107,587) $ — $ (107,587) Contribution loss $ (20,056) $ (109,077) $ (129,133) $ (48,265) $ (177,398) Three Months Ended March 31, 2022 Origination Servicing Segments All Other Total Reconciling Item (a) Total (dollars in thousands) Revenue: Gain on loans, net $ 45,404 $ — $ 45,404 $ — $ 45,404 $ — $ 45,404 Loan fee income 19,904 — 19,904 — 19,904 — 19,904 Loan servicing fees — 81,064 81,064 — 81,064 — 81,064 Change in fair value of mortgage servicing rights — 17,183 17,183 — 17,183 — 17,183 Interest income (expense), net 7,456 706 8,162 (14,180) (6,018) — (6,018) Other (expense) income — — — (4,638) (4,638) 5,272 634 Total $ 72,764 $ 98,953 $ 171,717 $ (18,818) $ 152,899 $ 5,272 $ 158,171 Contribution (loss) margin $ (8,390) $ 83,234 $ 74,844 $ (58,657) $ 16,187 (a) The Company includes the results from its equity method investments in the All Other. Therefore, the loss (income) is removed to reconcile to Total revenue, net on the condensed consolidated statements of operations. The following presents a reconciliation of contribution (loss) margin to consolidated U.S. GAAP (Loss) income before income tax: Three Months Ended March 31, 2023 2022 (dollars in thousands) (Loss) income before income tax $ (177,398) $ 21,459 Loss from equity method investment — (5,272) Contribution (loss) margin $ (177,398) $ 16,187 |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties The Company entered into transactions and agreements to purchase various services and products from certain affiliates of our sponsor, Stone Point Capital LLC. The services include valuation of MSRs, insurance brokerage services, loan review and tax payment services for certain loan originations. The following presents principal categories of the related party transactions recorded in the consolidated statements of operations. Three Months Ended March 31, 2023 2022 (dollars in thousands) Loan expense $ 122 $ 6,092 Loan servicing expense 4 489 General and administrative 840 3,199 Other expenses (a) 4,832 5,729 Other — 206 Total $ 5,798 $ 15,714 (a) Includes amounts paid to related party insurance brokers which are passthrough to third party carriers. |
Sale of Certain Assets in Origi
Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLC | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLC | Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLCOn April 6, 2023, HPF entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with The Loan Store, Inc. (“Buyer”), pursuant to which HPF has agreed to sell certain agreements and assets used in or related to HPF’s third-party mortgage loan origination business (the “Purchased Assets”), to Buyer, and Buyer has agreed to assume certain liabilities relating to the Purchased Assets (collectively, the “Asset Sale”). As consideration for the Purchased Assets, Buyer has agreed to issue to HPF a number of shares of the Class A Common Stock, par value $0.001 per share, of Buyer representing 9.99% of the issued and outstanding equity of Buyer, on a fully-diluted, as-converted basis measured as of closing. The assets to be sold primarily consist of Property and equipment, net, Other assets, and Other liabilities. The Company classified these assets as Assets held for sale as of March 31, 2023. For additional information refer to Note 22 - Subsequent Events . On June 1, 2022 (the “Closing Date”), HPF completed the previously announced sale of certain assets of HPF’s delegated Correspondent channel to Planet Home Lending, LLC (“Planet”). The sale of the correspondent channel reduces the Company’s expenses and enables reallocation of resources to our Wholesale channel. The purchase price for such assets was $2.5 million in cash, plus an earnout payment based on certain of Planet’s correspondent origination volume during the two-year period commencing on the Closing Date. The Company records the earnout payment when the consideration is determined to be realizable. The Company recorded earnout income of $0.5 million in Other income in the consolidated statements of operations for the three months ended March 31, 2023. On December 2, 2022, HPC completed the previously announced sale of its equity interests in HPAM and its wholly owned subsidiary HPMAC. Prior to the sale, HPAM was a wholly owned subsidiary of the Company and managed certain servicing assets. HPMAC serviced residential real estate mortgage loans. The purchase price for this transaction was $3.2 million in cash. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Board approved moving forward with a plan to sell certain origination assets and exit the Origination segment by the end of the second quarter 2023. The Company has identified restructuring actions that will result in additional charges of approximately $29.9 million, expected during the second quarter 2023 when specified criteria are met, such as communication of benefit arrangements or when the costs have been incurred. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Merger with Mr. Cooper On May 10, 2023, the Company announced the signing of a definitive agreement (the “Merger Agreement”) that provides for a wholly owned subsidiary of Mr. Cooper Group Inc. (“Mr. Cooper”) to commence a tender offer (the “Offer”) to acquire all outstanding shares of Home Point Capital for $324 million in cash (the “Merger”). As part of the transaction, Mr. Cooper will assume $500 million Home Point Capital 5% senior notes, which are due in February 2026. The transaction is expected to close in the third quarter of 2023, subject to customary closing conditions including receipt of regulatory approvals. Following the onboarding of Home Point Capital customers and the closing of the transaction, Mr. Cooper will wind down the remaining Home Point Capital operations. If the Merger is consummated, the Company’s common stock will be delisted from Nasdaq and the duty to file reports will be suspended under Section 13 and 15(d) of the Exchange Act. Asset Sale to The Loan Store On May 1, 2023, the Company completed the previously announced asset sale to The Loan Store, Inc. pursuant to the purchase agreement. Warehouse Facility Amendments On April 20, 2023, the Company terminated the Master Repurchase Agreement (the “UBS Master Repurchase Agreement”), dated as of October 28, 2015, by and between the Company, as seller and UBS AG, as buyer. The UBS Master Repurchase Agreement provided for a maximum aggregate purchase price of $200 million. The parties mutually agreed to terminate the UBS Master Repurchase Agreement prior to its scheduled maturity date of September 15, 2023. The Company did not incur any early termination penalties. On April 20, 2023, the Master Repurchase Agreement and Securities Contract (the “BMO Master Repurchase Agreement”), dated as of January 8, 2021, by and among the Company, as seller, and Bank of Montreal, as buyer, terminated in accordance with its terms. The BMO Master Repurchase Agreement provided for a maximum aggregate purchase price of $200 million. On May 1, 2023, the Company terminated the Master Repurchase Agreement (the “Amherst Gestation Agreement”), dated as of October 1, 2020, by and between the Company, as seller and Santander US Capital Markets LLC (fka Amherst Pierpont Securities LLC), as buyer. The Amherst Gestation Agreement had no stated contractual limit on the maximum aggregate purchase price. The parties mutually agreed to terminate the Amherst Gestation Agreement. The Company did not incur any early termination penalties. On May 5, 2023, the Company terminated the Master Repurchase Agreement and Securities Contract (the “Wells Master Repurchase Agreement”), dated as of November 23, 2015, by and between the Company, as seller and Wells Fargo Bank, N.A., as buyer. The Wells Master Repurchase Agreement provided for a maximum aggregate purchase price of $400 million. The parties mutually agreed to terminate the Wells Master Repurchase Agreement. The Company did not incur any early termination penalties. On May 5, 2023, the Company terminated the Second Master Repurchase Agreement (the “TIAA Master Repurchase Agreement”), dated as of September 16, 2022, by and between the Company, as seller and TIAA, FSB, as buyer. The TIAA Master Repurchase Agreement provided for a maximum aggregate purchase price of $200 million. The parties mutually agreed to terminate the TIAA Master Repurchase Agreement prior to its scheduled maturity date of September 17, 2023. The Company did not incur any early termination penalties. Sale of Mortgage Servicing Rights On May 2, 2023, the Company completed the sale of servicing rights relating to certain single family mortgage loans serviced for the Government National Mortgage Association (“Ginnie Mae”) with an aggregate unpaid principal balance of approximately $1.5 billion to an approved Ginnie Mae issuer. The total purchase price for the servicing rights was approximately $21.3 million, which is subject to certain customary holdbacks and adjustments. The sale represents approximately 1.7% of the Company’s total mortgage servicing portfolio as of December 31, 2022. Ginnie Mae consented to the transfer of the servicing rights. |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of HPC and all its wholly owned subsidiaries, including HPF and HPCIA. The accompanying condensed consolidated financial statements have been prepared in conformity with Article 10 of Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The consolidated balance sheet as of December 31, 2022 and related notes were derived from the audited consolidated financial statements but do not include all disclosures required by U.S. GAAP for complete financial statements. Certain information and footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include normal recurring adjustments) necessary to fairly state, in all material respects, the Company’s financial position 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 financial information should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2022. All intercompany balances and transactions have been eliminated in consolidation. As noted above, in December 2022, HPC completed the sale of HPAM and HPMAC. The results of operations for HPAM and HPMAC are included in the March 31, 2022 condensed consolidated financial statements. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale Long-lived assets or disposal groups to be sold are classified as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset or disposal group beyond one year; the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. We assess the fair value of a long-lived asset or disposal group less any costs to sell each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company ceases depreciation and reports long-lived assets and/or the assets and liabilities of the disposal group, if material, in the line items Assets held for sale and Liabilities held for sale, respectively, in our consolidated balance sheet. Refer to Note 20 – Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLC. |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires HPC to make estimates and assumptions about future events that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable. Examples of reported amounts that rely on significant estimates include mortgage loans held for sale (“MLHS”), mortgage servicing rights (“MSRs”), servicing advances reserve, derivative assets, derivative liabilities, reserves for mortgage repurchases and indemnifications, and deferred tax valuation allowance considerations. Significant estimates are also used in determining the recoverability and fair value of property and equipment and goodwill. |
Accounting Standards Recently Adopted or Recently Issued but Not Yet Adopted | Accounting Standards Recently Adopted or Recently Issued but Not Yet Adopted As of March 31, 2023, there have been no new accounting pronouncements recently issued or adopted that have had or are reasonably likely to have a material impact on the Company’s condensed consolidated financial statements. |
Fair Value Measurements | The Company uses fair value measurements to record certain assets and liabilities at fair value on a recurring basis, such as MSRs, derivatives, MLHS and Early buyout loans (“EBOs”). The Company has elected fair value accounting for MLHS and MSRs to more closely align the Company’s accounting with its interest rate risk strategies without having to apply the operational complexities of hedge accounting. The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level Input: Input Definition: Level 1 Unadjusted, quoted prices in active markets for identical assets or liabilities. Level 2 Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company. These may include quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk and others. Level 3 Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity), unobservable inputs may be used. Unobservable inputs reflect the Company's own assumptions about the factors that market participants would use in pricing the asset or liability and are based on the best information available in the circumstances. An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. While the Company believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methods or assumptions to estimate the fair value of certain financial statement items could result in a different estimate of fair value at the reporting date. Those estimated values may differ significantly from the values that would have been used had a readily available market for such items existed, or had such items been liquidated, and those differences could be material to the financial statements. Fair Value of Certain Assets and Liabilities The following describes the methods used in estimating the fair values of certain assets and liabilities: Mortgage loans held for sale. The majority of the Company's MLHS at fair value are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2. A smaller portion of the Company's MLHS consist of loans repurchased from the GSEs that have subsequently been deemed to be non-saleable to GSEs and Ginnie Mae when certain representations and warranties are breached. These loans, however, are saleable to other entities and are classified on the consolidated balance sheets as Mortgage loans held for sale. These repurchased loans are considered Level 3 and are valued based on recent sales prices of similar loans. Interest rate lock commitments. The Company estimates the fair value of IRLCs based on the value of the underlying mortgage loan, quoted MBS prices and estimates of the fair value of the MSRs and the probability that the mortgage loan will fund within the terms of the IRLC. The average pull-through rate for IRLCs was 65.2% and 77.5%as of March 31, 2023 and December 31, 2022, respectively. Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3. Forward sales and purchase commitments. The Company treats forward mortgage-backed securities purchase and sale commitments that have not settled as derivatives and recognizes them at fair value. These forward commitments will be fulfilled with loans not yet sold or securitized and new originations and purchases. The forward commitments allow the Company to reduce the risk related to market price volatility. The Company estimates the fair value of forward commitments based on quoted MBS prices. These derivatives are classified as Level 2. Interest rate swap futures contracts. The Company uses options on swap contracts to offset changes in the fair value of MSRs. The Company estimates the fair value of these MSR-related derivatives using quoted prices for similar instruments. These derivatives are classified as Level 2. Mortgage servicing rights. The Company uses a discounted cash flow approach to estimate the fair value of MSRs. This approach consists of projecting servicing cash flows discounted at a rate that management believes market participants would use in their determinations of value. The Company obtains valuations from an independent third party on a quarterly basis to support the reasonableness of the fair value estimate. Key assumptions used in measuring the fair value of MSRs include, but are not limited to, discount rates, prepayment speeds, and cost to service. Other assumptions such as delinquencies, are also considered resulting in a Level 3 classification. |
Mortgage Loans Held for Sale (T
Mortgage Loans Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Mortgage Loans Held For Sale at Fair Value, By Type, and the Reconciliation of the Changes in Mortgage Loans Held For Sale to the Amounts Presented On the Condensed Consolidated Statements of Cash Flows | The following presents MLHS at fair value, by type: March 31, 2023 Unpaid Fair Value Total (dollars in thousands) Conventional (a) $ 336,556 $ (33,051) $ 303,505 Government (b) 170,014 (722) 169,292 Reverse (c) 302 (109) 193 Total $ 506,872 $ (33,882) $ 472,990 December 31, 2022 Unpaid Fair Value Total (dollars in thousands) Conventional (a) $ 425,160 $ (31,639) $ 393,521 Government (b) 254,800 (5,664) 249,136 Reverse (c) 355 (19) 336 Total $ 680,315 $ (37,322) $ 642,993 (a) Conventional includes mortgage loans meeting the eligibility requirements to be sold to FNMA or FHLMC. (b) Government includes mortgage loans meeting the eligibility requirements to be sold to GNMA (including Federal Housing Administration, Department of Veterans Affairs and United States Department of Agricultural mortgage loans). (c) Reverse mortgages presented in MLHS on the consolidated balance sheets as a result of a repurchase. The following presents a reconciliation of the changes in MLHS to the amounts presented on the condensed consolidated statements of cash flows: Three Months Ended March 31, 2023 2022 (dollars in thousands) Fair value at beginning of period $ 642,993 $ 5,107,161 Mortgage loans originated and purchased (a) 978,969 12,739,933 Proceeds on sales and payments received (a) (1,142,865) (14,505,325) Change in fair value 3,440 (132,031) Loss on sale (a) (9,547) (320,699) Fair value at end of period $ 472,990 $ 2,889,039 (a) This line as presented on the consolidated statements of cash flows excludes originated MSRs and MSR hedging. The following presents principal categories of Accounts receivable, net: March 31, 2023 December 31, 2022 (dollars in thousands) Servicing receivable-general $ 25,958 $ 14,943 Pair off receivable 2,136 619 Servicing sale receivable 27,104 29,503 Servicing advance receivable 59,786 77,257 Servicing advance reserve (2,417) (3,355) Agency receivable 280 595 Income tax receivable 2,308 1,902 Interest on servicing deposits 266 302 Other 2,202 2,925 Total $ 117,623 $ 124,691 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Analysis of the Changes in Capitalized Mortgage Servicing Rights and the Company's Total Capitalized Mortgage Servicing Portfolio | The following presents an analysis of the changes in capitalized MSRs: Three Months Ended March 31, 2023 2022 (dollars in thousands) Balance at beginning of period $ 1,402,542 $ 1,525,103 MSRs originated 18,984 208,741 MSRs purchased — 8,588 MSRs sold — (480,244) Changes in valuation model inputs (150,574) 276,987 Change due to cash payoffs and principal amortization (19,352) (48,950) Balance at end of period $ 1,251,600 $ 1,490,225 The following presents the Company’s total capitalized mortgage servicing portfolio (based on the unpaid principal balance (“UPB”) of the underlying mortgage loans): March 31, 2023 December 31, 2022 (dollars in thousands) Ginnie Mae $ 4,672,997 $ 4,357,853 Fannie Mae 46,887,734 47,198,689 Freddie Mac 36,796,627 37,082,471 Other 28,991 29,620 Total $ 88,386,349 $ 88,668,633 MSR balance $ 1,251,600 $ 1,402,542 |
Key Weighted Average Assumptions Used in Determining the Fair Value of the Company’s MSRs | The following presents the key weighted average assumptions used in determining the fair value of the Company’s MSRs: March 31, 2023 December 31, 2022 Discount rate 10.03 % 9.69 % Weighted average prepayment speeds 5.66 % 5.44 % Costs to service $113 $77 |
Analysis of Change in Discount Rate and Prepayment Speeds on MSRs | The following presents the impact on the fair value of the Company’s MSR portfolio when applying the following hypothetical data points: Discount Rate Prepayment Speeds Costs to Service 100 BPS Adverse Change 200 BPS Adverse Change 10% Adverse Change 20% Adverse Change 10% Adverse 20% Adverse (dollars in thousands) March 31, 2023 $ (56,780) $ (108,691) $ (32,088) $ (62,579) $ (19,760) $ (39,542) December 31, 2022 $ (66,658) $ (127,263) $ (36,353) $ (70,814) $ (13,388) $ (26,779) |
Information Related To Loans Serviced For Which the Company Has Continuing Involvement through Servicing Agreements | The following presents information related to loans serviced: March 31, 2023 December 31, 2022 (dollars in thousands) Total unpaid principal balance $ 88,864,506 $ 89,280,085 Loans 30-89 days delinquent 608,313 824,348 Loans delinquent 90 or more days or in foreclosure 529,099 555,293 |
Components of Loan Servicing Fees | The following presents components of Loan servicing fees as reported in the Company’s condensed consolidated statements of operations: Three Months Ended March 31, 2023 2022 (dollars in thousands) Contractual servicing fees $ 59,522 $ 80,763 Late fees 275 1,125 Other (970) (824) Total $ 58,827 $ 81,064 |
Components Of Mortgage Servicing Rights | The following presents the components of Change in fair value of MSRs: Three Months Ended March 31, 2023 2022 (dollars in thousands) Realization of cash flows $ (19,352) $ (48,950) Valuation inputs and assumptions (150,574) 276,987 Economic hedging results 10,927 (157,362) Loss on MSR sales (277) (53,492) Change in fair value of MSRs $ (159,276) $ 17,183 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Notional Balances for Derivative Instruments | The following presents the outstanding notional amounts and fair values of derivative instruments not designated as hedging instruments: March 31, 2023 Notional Derivative Derivative (dollars in thousands) Forward sale contracts $ 322,900 $ 350 $ 2,547 Interest rate lock commitments 388,275 3,235 166 Forward purchase contracts 89,000 82 143 Treasury futures purchase contracts 1,291,500 — — Margin 27,060 749 Total $ 30,727 $ 3,605 December 31, 2022 Notional Derivative Derivative (dollars in thousands) Forward sale contracts $ 819,900 $ 6,107 $ 1,200 Interest rate lock commitments 598,970 2,231 2,504 Forward purchase contracts 61,300 — 400 Treasury futures purchase contracts 897,500 — — Margin 17,273 6 Total $ 25,611 $ 4,110 The following presents the recorded gain (loss) on derivative financial instruments: Three Months Ended March 31, 2023 2022 (dollars in thousands) Forward sale contracts $ (6,967) $ (60,753) Interest rate lock commitments 3,341 88,668 Forward purchase contracts 202 (3,872) Interest rate swap and Treasury futures purchase contracts $ 10,826 $ (118,352) |
Summary of Derivative Assets and Liabilities and Related Netting Amounts | The following presents a summary of derivative assets and liabilities and related netting amounts: March 31, 2023 Gross Amounts Not Offset in the Statement of Financial Position (a) Gross Amount of Assets (Liabilities) Recognized Financial Instruments Cash Collateral Net Amount (dollars in thousands) Derivatives subject to master netting agreements: Assets: Forward sale contracts $ 350 $ (324) $ — $ 26 Forward purchase contracts 82 (16) 66 Liabilities: Forward sale contracts (2,547) 340 621 (1,586) Forward purchase contracts (143) — — (143) Derivatives not subject to master netting agreements: Assets: Interest rate lock commitments 3,235 — — 3,235 Liabilities: Interest rate lock commitments (166) — — (166) Total derivatives Assets $ 3,667 $ (340) $ — $ 3,327 Liabilities $ (2,856) $ 340 $ 621 $ (1,895) December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position (a) Gross Amount of Assets (Liabilities) Recognized Financial Instruments Cash Collateral Net Amount (dollars in thousands) Derivatives subject to master netting agreements: Assets: Forward sale contracts $ 6,107 $ (1,062) $ (3,790) $ 1,255 Liabilities: Forward sale contracts (1,200) 1,062 138 — Forward purchase contracts (400) — 400 — Derivatives not subject to master netting agreements: Assets: Interest rate lock commitments 2,231 — — 2,231 Liabilities: Interest rate lock commitments (2,504) — — (2,504) Total derivatives Assets $ 8,338 $ (1,062) $ (3,790) $ 3,486 Liabilities $ (4,104) $ 1,062 $ 538 $ (2,504) (a) Amounts disclosed for collateral received from or posted to the same counterparty includes cash up to and not exceeding the net amount of the derivative asset or liability presented in the balance sheet. The fair value of the total collateral received from or posted to the same counterparty may exceed the amounts presented. The amounts of collateral received from or posted to counterparty are presented as margin and included as a component of either Derivative assets or Other liabilities in the Balance Sheet. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Principal Categories of Accounts Receivable, Net | The following presents MLHS at fair value, by type: March 31, 2023 Unpaid Fair Value Total (dollars in thousands) Conventional (a) $ 336,556 $ (33,051) $ 303,505 Government (b) 170,014 (722) 169,292 Reverse (c) 302 (109) 193 Total $ 506,872 $ (33,882) $ 472,990 December 31, 2022 Unpaid Fair Value Total (dollars in thousands) Conventional (a) $ 425,160 $ (31,639) $ 393,521 Government (b) 254,800 (5,664) 249,136 Reverse (c) 355 (19) 336 Total $ 680,315 $ (37,322) $ 642,993 (a) Conventional includes mortgage loans meeting the eligibility requirements to be sold to FNMA or FHLMC. (b) Government includes mortgage loans meeting the eligibility requirements to be sold to GNMA (including Federal Housing Administration, Department of Veterans Affairs and United States Department of Agricultural mortgage loans). (c) Reverse mortgages presented in MLHS on the consolidated balance sheets as a result of a repurchase. The following presents a reconciliation of the changes in MLHS to the amounts presented on the condensed consolidated statements of cash flows: Three Months Ended March 31, 2023 2022 (dollars in thousands) Fair value at beginning of period $ 642,993 $ 5,107,161 Mortgage loans originated and purchased (a) 978,969 12,739,933 Proceeds on sales and payments received (a) (1,142,865) (14,505,325) Change in fair value 3,440 (132,031) Loss on sale (a) (9,547) (320,699) Fair value at end of period $ 472,990 $ 2,889,039 (a) This line as presented on the consolidated statements of cash flows excludes originated MSRs and MSR hedging. The following presents principal categories of Accounts receivable, net: March 31, 2023 December 31, 2022 (dollars in thousands) Servicing receivable-general $ 25,958 $ 14,943 Pair off receivable 2,136 619 Servicing sale receivable 27,104 29,503 Servicing advance receivable 59,786 77,257 Servicing advance reserve (2,417) (3,355) Agency receivable 280 595 Income tax receivable 2,308 1,902 Interest on servicing deposits 266 302 Other 2,202 2,925 Total $ 117,623 $ 124,691 |
Changes to the Servicing Advance Reserve | The following presents changes to the servicing advance reserve: Three Months Ended March 31, 2023 2022 (dollars in thousands) Servicing advance reserve at beginning of period $ (3,355) $ (4,207) Additions (434) (7,517) Charge-offs 1,372 8,849 Servicing advance reserve at end of period $ (2,417) $ (2,875) |
Warehouse Lines of Credit (Tabl
Warehouse Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Amounts Outstanding and Maturity Dates under the Company’s Various Mortgage Funding Arrangements | The following presents the amounts outstanding and maturity dates under the Company’s various mortgage funding arrangements: Maturity Date (a) March 31, 2023 (dollars in thousands) $200 million Warehouse Facility (b) April 2023 $ 14,071 $35 million Warehouse Facility (c) June 2023 25,566 $450 million Warehouse Facility August 2023 58,530 $200 million Warehouse Facility (d) September 2023 67,249 $200 million Warehouse Facility (b) September 2023 21,388 $1,200 millions Warehouse Facility May 2024 130,384 $88.5 million Warehouse Facility Evergreen 3,929 $400 million Warehouse Facility (d) Evergreen 88,380 Gestation Warehouse Facility (d) Evergreen — Total $ 409,497 (a) The presented maturities are as of March 31, 2023. The Company is expected to terminate a majority of its warehouse lines of credit pursuant to the sale of certain agreements and assets used in or related to the Company’s wholesale originations channel. For additional information refer to Note 20 – Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLC and Note 22 - Subsequent Events . (b) Subsequent to March 31, 2023, these Warehouse Facilities were closed in April 2023. (c) Subsequent to March 31, 2023, the maturity of this Warehouse Facility has been extended from March 2023 to June 2023 and the capacity of this Warehouse Facility has been reduced from $50 million to $35 million. (d) Subsequent to March 31, 2023, these Warehouse Facilities were closed in May 2023. Maturity Date (d) December 31, 2022 (dollars in thousands) $50 million Warehouse Facility March 2023 41,928 $200 million Warehouse Facility March 2023 45,284 $450 million Warehouse Facility August 2023 149,513 $200 million Warehouse Facility September 2023 41,309 $200 million Warehouse Facility September 2023 32,011 $1,200 million Warehouse Facility May 2024 113,136 $88.5 million Warehouse Facility Evergreen 8,050 $400 million Warehouse Facility Evergreen 65,250 Gestation Warehouse Facility Evergreen — Early Funding (e) — Total $ 496,481 (d) Maturity Dates in this table are as of December 31, 2022. These Warehouse Facilities have been renewed as reflected in the table above. (e) In addition to warehouse facilities, the Company is an approved lender for early funding facilities with Fannie Mae through its As Soon As Pooled (“ASAP”) program and Freddie Mac through its Early Funding (“EF”) program. From time to time, the Company enters into agreements to deliver certified pools of mortgage loans and receive funding in exchange for such pools. All mortgage loans delivered under these programs must adhere to a set of eligibility criteria. Early funding programs with Fannie Mae and Freddie Mac do not have stated expiration dates or maximum capacities. |
Term Debt and Other Borrowing_2
Term Debt and Other Borrowings, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Term Debt and Other Borrowings | The following presents the Company’s term debt and other borrowings, net: Maturity Date Collateral March 31, 2023 December 31, 2022 (dollars in thousands) $1.0 billion MSR Facility May 2025 MSRs $ 400,000 $ 450,000 $500 million Senior Notes (a) February 2026 Unsecured 500,000 500,000 $85 million Servicing Advance Facility May 2023 Servicing Advances — — $35 million Operating Line of Credit (b) May 2023 Mortgage loans 1,000 1,000 Gross 901,000 951,000 Debt issuance costs (8,125) (8,917) Total $ 892,875 $ 942,083 (a) The aggregate principal amount of the Senior Notes issued was $550.0 million. The Company repurchased and retired $50.0 million of outstanding Senior Notes during the second quarter of 2022. |
Representation and Warranty R_2
Representation and Warranty Reserve (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Mortgage Banking [Abstract] | |
Mortgage Loans Repurchase Reserve, Activity | The following presents the activity of the outstanding repurchase reserve: Three Months Ended March 31, 2023 2022 (dollars in thousands) Repurchase reserve at beginning of period $ 26,605 $ 24,577 Additions 10,049 5,566 Charge-offs (11,465) (5,225) Repurchase reserve at end of period $ 25,189 $ 24,918 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Major Categories of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following presents the major categories of assets and liabilities measured at fair value on a recurring basis: March 31, 2023 Level 1 Level 2 Level 3 Total (dollars in thousands) Assets: Mortgage loans held for sale $ — $ 466,853 $ 6,137 $ 472,990 Interest rate lock commitments — — 3,235 3,235 Forward sale contracts — 350 — 350 Forward purchase contracts — 82 — $ 82 Mortgage servicing rights — — 1,251,600 1,251,600 Total $ — $ 467,285 $ 1,260,972 $ 1,728,257 Liabilities: Interest rate lock commitments $ — $ — $ 166 $ 166 Forward sale contracts — 2,547 — 2,547 Forward purchase contracts — 143 — 143 Total $ — $ 2,690 $ 166 $ 2,856 December 31, 2022 Level 1 Level 2 Level 3 Total (dollars in thousands) Assets: Mortgage loans held for sale $ — $ 629,108 $ 13,885 $ 642,993 Interest rate lock commitments — — 2,231 2,231 Forward sale contracts — 6,107 — 6,107 Mortgage servicing rights — — 1,402,542 1,402,542 Total $ — $ 635,215 $ 1,418,658 $ 2,053,873 Liabilities: Interest rate lock commitments $ — $ — $ 2,504 $ 2,504 Forward sale contracts — 1,200 — 1,200 Forward purchase contracts — 400 — 400 Total $ — $ 1,600 $ 2,504 $ 4,104 |
Reconciliation of Level 3 Assets Measured At Fair Value on a Recurring Basis | The following presents a reconciliation of Level 3 assets measured at fair value on a recurring basis: Three Months Ended March 31, 2023 MSRs IRLC-Asset MLHS IRLC-Liability (dollars in thousands) Balance at beginning of period $ 1,402,542 $ 2,231 $ 13,885 $ 2,504 Purchases, sales, issuances, contributions, and settlements 18,984 — (4,237) — Change in fair value (169,926) 1,004 (1,146) (2,338) Transfers out (a) — — (2,365) — Balance at end of period $ 1,251,600 $ 3,235 $ 6,137 $ 166 Three Months Ended March 31, 2022 MSRs IRLC-Asset MLHS IRLC-Liability (dollars in thousands) Balance at beginning of period $ 1,525,103 $ 29,887 $ 20,218 $ 2,843 Purchases, sales, issuances, contributions, and settlements (262,915) — (1,564) 42,615 Change in fair value 228,036 (17,746) (52) — Transfers in (a) — — (826) — Balance at end of period $ 1,490,224 $ 12,141 $ 17,776 $ 45,458 (a) Transfers in (out) represents transfers between Levels 2 and 3, and reclassifications to Real estate owned (“REO”), foreclosure or claims. |
Fair Value and UPB of Mortgage Loans Held for Sale for which the Company has elected the Fair Value Option | The following presents the fair value and UPB of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects its expected future economic performance: Fair Value Principal Difference (a) (dollars in thousands) March 31, 2023 $ 472,990 $ 506,872 $ (33,882) December 31, 2022 $ 642,993 $ 680,315 $ (37,322) (a) Represents the amount of (losses) gains related to changes in fair value of items accounted for using the fair value option included in Gain on loans, net within the condensed consolidated statements of operations. |
Summary of the Key Unobservable Inputs Used In the Valuation of the Level 3 Assets | The following is a summary of the key unobservable inputs used in the valuation of the Level 3 assets: March 31, 2023 Assets: Key Input Range Weighted Mortgage servicing rights Discount rate 9.8% - 14.0% 10.0% Prepayment speeds 5.4% - 9.0% 5.7% Cost to service $109 - $229 $113 Interest rate lock commitments Pull-through rate 15% - 100% 65.2% Mortgage loans held for sale Investor pricing 60.4% - 101.6% 74.4% December 31, 2022 Assets: Key Input Range Weighted Mortgage servicing rights Discount rate 9.3% - 14.0% 9.7% Prepayment speeds 4.6% - 8.2% 5.4% Cost to service $74 - $133 $77 Interest rate lock commitments Pull-through rate 21.0% - 100.0% 77.5% Mortgage loans held for sale Investor pricing 65.0% - 103.6% 93.3% |
Equity-based Compensation (Tabl
Equity-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of RSU Activity | The following presents the summary of the Company’s RSU activity: Three Months Ended March 31, 2023 Units Weighted Outstanding at beginning of period 392,448 $ 6.12 Granted — — Vested (32,982) $ 3.79 Forfeited (50,636) $ 5.76 Outstanding at end of period 308,830 $ 6.42 |
Schedule of PSU Activity | The following presents the summary of the Company’s PSU activity: Three Months Ended March 31, 2023 Units Weighted-Average Grant Date Fair Value Outstanding at beginning of period 370,271 $ 7.43 Granted — — Forfeited (59,464) $ 3.79 Outstanding at end of period 310,807 $ 7.64 |
Activity of the Company’s Stock Options | The following presents the summary of the Company’s stock option activity under the 2021 Plan: Three Months Ended March 31, 2023 Number of Weighted Weighted Weighted Outstanding at beginning of period 10,933,893 $ 4.64 4.70 $ 8.27 Granted 291,200 1.80 0.25 9.86 Exercised (50,958) 6.83 0.03 9.74 Forfeited (167,028) 1.85 0.04 9.40 Expired (272,325) 3.74 1.00 9.75 Outstanding at end of period 10,734,782 $ 4.69 4.41 $ 8.25 |
Summary of the Company’s Non-Vested Activity | The following presents the summary of the Company’s non-vested activity under the 2021 Plan: Three Months Ended March 31, 2023 Number of Shares Weighted Average Grant Date Fair Value Non-vested at beginning of period 8,566,613 $ 8.12 Granted 291,200 9.86 Vested 181,725 8.95 Exercised (50,958) 9.74 Forfeited (167,028) 9.40 Expired (272,325) 9.75 Non-vested at end of period 8,549,227 $ 8.26 |
Summary of Assumptions used in the Black-Scholes Option Valuation Model | The following presents assumptions used in the Black-Scholes option valuation model to determine the weighted-average fair value per stock option granted: Three Months Ended March 31, 2023 2022 Expected life (in years) 8.21 8.26 Risk-free interest rate 0 - 3.0% 0.56% - 2.95% Expected volatility 24.9% 24.9% Dividend yield — — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following presents the calculation of the basic and diluted (loss) earnings per share: Three Months Ended March 31, 2023 2022 (dollars in thousands, except share and per share amounts ) Net (loss) income $ (133,756) $ 11,864 Numerator: Net (loss) income attributable to common shareholders $ (133,756) $ 11,864 Net (loss) income attributable to Home Point - diluted $ (133,756) $ 11,864 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 138,422 139,171 Dilutive effect of common stock equivalents — 1,408 Weighted average shares of common stock outstanding - diluted 138,422 140,579 (Loss) earnings per share of common stock outstanding - basic $ (0.97) $ 0.09 (Loss) earnings per share of common stock outstanding - diluted $ (0.97) $ 0.08 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Key Operating Data for Business Segments | The following presents the key operating data for the Company’s business segments: Three Months Ended March 31, 2023 Origination Servicing Segments All Other Total Reconciling Total (dollars in thousands) Revenue: Loss on loans, net $ (1,490) $ — $ (1,490) $ — $ (1,490) $ — $ (1,490) Loan fee income 1,655 — 1,655 — 1,655 — 1,655 Loan servicing fees — 58,827 58,827 — 58,827 — 58,827 Change in fair value of mortgage servicing rights — (159,247) (159,247) — (159,247) — (159,247) Interest income (expense), net 810 6,895 7,705 (15,738) (8,033) — (8,033) Other income 1 — 1 700 701 — 701 Total $ 976 $ (93,525) $ (92,549) $ (15,038) $ (107,587) $ — $ (107,587) Contribution loss $ (20,056) $ (109,077) $ (129,133) $ (48,265) $ (177,398) Three Months Ended March 31, 2022 Origination Servicing Segments All Other Total Reconciling Item (a) Total (dollars in thousands) Revenue: Gain on loans, net $ 45,404 $ — $ 45,404 $ — $ 45,404 $ — $ 45,404 Loan fee income 19,904 — 19,904 — 19,904 — 19,904 Loan servicing fees — 81,064 81,064 — 81,064 — 81,064 Change in fair value of mortgage servicing rights — 17,183 17,183 — 17,183 — 17,183 Interest income (expense), net 7,456 706 8,162 (14,180) (6,018) — (6,018) Other (expense) income — — — (4,638) (4,638) 5,272 634 Total $ 72,764 $ 98,953 $ 171,717 $ (18,818) $ 152,899 $ 5,272 $ 158,171 Contribution (loss) margin $ (8,390) $ 83,234 $ 74,844 $ (58,657) $ 16,187 (a) The Company includes the results from its equity method investments in the All Other. Therefore, the loss (income) is removed to reconcile to Total revenue, net on the condensed consolidated statements of operations. |
Reconciliation of Segment Contribution Margin to Consolidated U.S. GAAP Income (Loss) Before Income Tax | The following presents a reconciliation of contribution (loss) margin to consolidated U.S. GAAP (Loss) income before income tax: Three Months Ended March 31, 2023 2022 (dollars in thousands) (Loss) income before income tax $ (177,398) $ 21,459 Loss from equity method investment — (5,272) Contribution (loss) margin $ (177,398) $ 16,187 |
Related Parties (Tables)
Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following presents principal categories of the related party transactions recorded in the consolidated statements of operations. Three Months Ended March 31, 2023 2022 (dollars in thousands) Loan expense $ 122 $ 6,092 Loan servicing expense 4 489 General and administrative 840 3,199 Other expenses (a) 4,832 5,729 Other — 206 Total $ 5,798 $ 15,714 (a) Includes amounts paid to related party insurance brokers which are passthrough to third party carriers. |
Organization and Operations (De
Organization and Operations (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Mortgage Loans Held for Sale -
Mortgage Loans Held for Sale - Mortgage Loans Held For Sale at Fair Value, By Type (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid Principal | $ 506,872 | $ 680,315 | ||
Fair Value Adjustment | (33,882) | (37,322) | ||
Total Fair Value | 472,990 | 642,993 | $ 2,889,039 | $ 5,107,161 |
Conventional | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid Principal | 336,556 | 425,160 | ||
Fair Value Adjustment | (33,051) | (31,639) | ||
Total Fair Value | 303,505 | 393,521 | ||
Government | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid Principal | 170,014 | 254,800 | ||
Fair Value Adjustment | (722) | (5,664) | ||
Total Fair Value | 169,292 | 249,136 | ||
Reverse | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid Principal | 302 | 355 | ||
Fair Value Adjustment | (109) | (19) | ||
Total Fair Value | $ 193 | $ 336 |
Mortgage Loans Held for Sale _2
Mortgage Loans Held for Sale - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Unpaid principal balances of mortgage loans held for sale on nonaccrual status | $ 23.8 | $ 21.8 |
Fair value of mortgage loans held for sale on nonaccrual status | 18.3 | $ 16.7 |
Unpaid principal balance pledged as security | $ 500 |
Mortgage Loans Held for Sale _3
Mortgage Loans Held for Sale - Reconciliation of the Changes in Mortgage Loans Held For Sale to the Amounts Presented On the Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Fair value at beginning of period | $ 642,993 | $ 5,107,161 |
Mortgage loans originated and purchased | 978,969 | 12,739,933 |
Proceeds on sales and payments received | (1,142,865) | (14,505,325) |
Change in fair value | 3,440 | (132,031) |
Loss on loans | (9,547) | (320,699) |
Fair value at end of period | $ 472,990 | $ 2,889,039 |
Mortgage Servicing Rights - Ana
Mortgage Servicing Rights - Analysis of the Changes in Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance at beginning of period | $ 1,402,542 | $ 1,525,103 |
MSRs originated | 18,984 | 208,741 |
MSRs purchased | 0 | 8,588 |
MSRs sold | 0 | (480,244) |
Changes in valuation model inputs | (150,574) | 276,987 |
Change due to cash payoffs and principal amortization | 19,352 | 48,950 |
Balance at end of period | $ 1,251,600 | $ 1,490,225 |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of the Company's Total Capitalized Mortgage Servicing Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing portfolio | $ 88,386,349 | $ 88,668,633 | ||
MSR balance | 1,251,600 | 1,402,542 | $ 1,490,225 | $ 1,525,103 |
Ginnie Mae | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing portfolio | 4,672,997 | 4,357,853 | ||
Fannie Mae | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing portfolio | 46,887,734 | 47,198,689 | ||
Freddie Mac | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing portfolio | 36,796,627 | 37,082,471 | ||
Other | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing portfolio | $ 28,991 | $ 29,620 |
Mortgage Servicing Rights - Key
Mortgage Servicing Rights - Key Weighted Average Assumptions Used in Determining the Fair Value of the Company’s MSRs (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Discount rate | 10.03% | 9.69% |
Weighted average prepayment speeds | 5.66% | 5.44% |
Costs to service | $ 113 | $ 77 |
Mortgage Servicing Rights - A_2
Mortgage Servicing Rights - Analysis of Change in Discount Rate and Prepayment Speeds on MSRs (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Discount Rate | ||
100 BPS Adverse Change | $ (56,780) | $ (66,658) |
200 BPS Adverse Change | (108,691) | (127,263) |
Prepayment Speeds | ||
10% Adverse Change | (32,088) | (36,353) |
20% Adverse Change | (62,579) | (70,814) |
Costs to Service | ||
10% Adverse Change | (19,760) | (13,388) |
20% Adverse Change | $ (39,542) | $ (26,779) |
Mortgage Servicing Rights - Inf
Mortgage Servicing Rights - Information Related To Loans Serviced For Which the Company Has Continuing Involvement through Servicing Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance | $ 88,864,506 | $ 89,280,085 |
Loans 30-89 days delinquent | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance | 608,313 | 824,348 |
Loans delinquent 90 or more days or in foreclosure | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance | $ 529,099 | $ 555,293 |
Mortgage Servicing Rights - Com
Mortgage Servicing Rights - Components of Loan Servicing Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Contractual servicing fees | $ 59,522 | $ 80,763 |
Late fees | 275 | 1,125 |
Other | (970) | (824) |
Total | $ 58,827 | $ 81,064 |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Escrow funds held for customers | $ 4,100,000 | $ 5,100,000 |
Loss on MSR sale | $ 277,000 | $ 53,500,000 |
Mortgage Servicing Rights - C_2
Mortgage Servicing Rights - Components of Change in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Realization of cash flows | $ (19,352) | $ (48,950) |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage Servicing Rights (MSR) Impairment (Recovery) | Mortgage Servicing Rights (MSR) Impairment (Recovery) |
Changes in valuation model inputs | $ (150,574) | $ 276,987 |
Servicing Liability, Fair Value, Change in Fair Value, Valuation Input, Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage Servicing Rights (MSR) Impairment (Recovery) | Mortgage Servicing Rights (MSR) Impairment (Recovery) |
Economic hedging results | $ 10,927 | $ (157,362) |
Loss on MSR sales | (277) | (53,492) |
Change in fair value of MSRs | $ (159,276) | $ 17,183 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Outstanding Notional Balances for Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative assets | $ 30,727 | $ 25,611 |
Derivative liabilities | 3,605 | 4,110 |
Forward sale contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | 322,900 | 819,900 |
Derivative assets | 350 | 6,107 |
Derivative liabilities | 2,547 | 1,200 |
Interest rate lock commitments | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | 388,275 | 598,970 |
Derivative assets | 3,235 | 2,231 |
Derivative liabilities | 166 | 2,504 |
Forward purchase contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | 89,000 | 61,300 |
Derivative assets | 0 | |
Derivative liabilities | 143 | 400 |
Treasury futures purchase contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,291,500 | 897,500 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Margin | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative assets | 27,060 | 17,273 |
Derivative liabilities | $ 749 | $ 6 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Forward sale contracts | ||
Derivative [Line Items] | ||
Derivative, recorded gain (loss) | $ (6,967) | $ (60,753) |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative, recorded gain (loss) | 3,341 | 88,668 |
Forward purchase contracts | ||
Derivative [Line Items] | ||
Derivative, recorded gain (loss) | 202 | (3,872) |
Interest rate swap and Treasury futures purchase contracts | ||
Derivative [Line Items] | ||
Derivative, recorded gain (loss) | $ 10,826 | $ (118,352) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Derivative Assets and Liabilities and Related Netting Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative asset, fair value | $ 3,667 | $ 8,338 |
Derivative assets, Gross Offset | (340) | (1,062) |
Derivative, Collateral, Obligation to Return Cash | 0 | (3,790) |
Net assets | 3,327 | 3,486 |
Derivative liability, fair value | (2,856) | (4,104) |
Derivative liabilities, Gross Offset | 340 | 1,062 |
Derivative liabilities, Cash Collateral | 621 | 538 |
Net liabilities | (1,895) | (2,504) |
Forward sale contracts | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 350 | 6,107 |
Derivative assets, Gross Offset | (324) | (1,062) |
Derivative, Collateral, Obligation to Return Cash | 0 | (3,790) |
Net assets | 26 | 1,255 |
Derivative liability, fair value | (2,547) | (1,200) |
Derivative liabilities, Gross Offset | 340 | 1,062 |
Derivative liabilities, Cash Collateral | 621 | 138 |
Net liabilities | (1,586) | 0 |
Forward purchase contracts | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 82 | |
Derivative assets, Gross Offset | (16) | |
Derivative, Collateral, Obligation to Return Cash | ||
Net assets | 66 | |
Derivative liability, fair value | (143) | (400) |
Derivative liabilities, Gross Offset | 0 | 0 |
Derivative liabilities, Cash Collateral | 0 | 400 |
Net liabilities | (143) | 0 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 3,235 | 2,231 |
Derivative liability, fair value | (166) | (2,504) |
Net liabilities | $ (166) | $ (2,504) |
Accounts Receivable, Net - Prin
Accounts Receivable, Net - Principal Categories of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Servicing receivable-general | $ 25,958 | $ 14,943 |
Pair off receivable | 2,136 | 619 |
Servicing sale receivable | 27,104 | 29,503 |
Servicing advance receivable | 59,786 | 77,257 |
Servicing advance reserve | (2,417) | (3,355) |
Agency receivable | 280 | 595 |
Income tax receivable | 2,308 | 1,902 |
Interest on servicing deposits | 266 | 302 |
Other | 2,202 | 2,925 |
Accounts receivable, net | $ 117,623 | $ 124,691 |
Accounts Receivable, Net - Chan
Accounts Receivable, Net - Changes to the Servicing Advance Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing Advance Receivable, Allowance For Credit Loss [Roll Forward] | ||
Servicing advance reserve at beginning of period | $ (3,355) | $ (4,207) |
Additions | (434) | (7,517) |
Charge-offs | 1,372 | 8,849 |
Servicing advance reserve at end of period | $ (2,417) | $ (2,875) |
Warehouse Lines of Credit - Nar
Warehouse Lines of Credit - Narrative (Details) - Warehouse Lines of Credit $ in Billions | Mar. 31, 2023 USD ($) financialInstitution | Dec. 31, 2022 USD ($) |
Line of Credit Facility [Line Items] | ||
Number of financial institutions | financialInstitution | 8 | |
Maximum borrowing capacity | $ 2.8 | $ 2.8 |
Unused borrowing capacity | $ 2.4 | $ 2.3 |
Weighted average interest rate | 6.19% | 2.91% |
Warehouse Lines of Credit - Amo
Warehouse Lines of Credit - Amounts Outstanding and Maturity Dates under the Company’s Various Mortgage Funding Arrangements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Warehouse lines of credit | $ 409,497 | $ 496,481 |
Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 2,800,000 | 2,800,000 |
Warehouse lines of credit | 409,497 | 496,481 |
$200 Million Warehouse Facility, Maturing April 2023 | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000 | |
Warehouse lines of credit | 14,071 | |
$35 Million Warehouse Facility, Maturing June 2023 | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 35,000 | |
Warehouse lines of credit | 25,566 | |
$450 Million Warehouse Facility, Maturing August 2023 | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 450,000 | 450,000 |
Warehouse lines of credit | 58,530 | 149,513 |
$200 Million Warehouse Facility, Maturing September 2023 | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000 | 200,000 |
Warehouse lines of credit | 67,249 | 41,309 |
$200 Million Warehouse Facility, Maturing September 2023, 2 | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000 | 200,000 |
Warehouse lines of credit | 21,388 | 32,011 |
$1,200 Million Warehouse Facility, Maturing May 2024 | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,200,000 | 1,200,000 |
Warehouse lines of credit | 130,384 | 113,136 |
$88.5 million Warehouse Facility | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 88,500 | 88,500 |
Warehouse lines of credit | 3,929 | 8,050 |
$400 million Warehouse Facility(d) | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 400,000 | 400,000 |
Warehouse lines of credit | 88,380 | 65,250 |
Gestation Warehouse Facility | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Warehouse lines of credit | $ 0 | 0 |
$50 Million Warehouse Facility, Maturing March 2023 | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 50,000 | |
Warehouse lines of credit | 41,928 | |
$200 Million Warehouse Facility, Maturing March 2023 | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000 | |
Warehouse lines of credit | 45,284 | |
Early Funding | Warehouse Lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Warehouse lines of credit | $ 0 |
Term Debt and Other Borrowing_3
Term Debt and Other Borrowings, Net - Summary of Term Debt and Other Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Jan. 31, 2021 |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 901,000 | $ 951,000 | ||
Debt issuance costs | (8,125) | (8,917) | ||
Long-term debt, net | 892,875 | 942,083 | ||
$1.0 billion MSR Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 1,000,000 | |||
Long-term debt, gross | 400,000 | 450,000 | ||
$500 million Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repurchased and retired amount | $ 50,000 | |||
$500 million Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 500,000 | 500,000 | ||
Face amount of debt | 500,000 | $ 550,000 | ||
$85 million Servicing Advance Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 85,000 | $ 85,000 | ||
Long-term debt, gross | 0 | 0 | ||
$35 million Operating Line of Credit(b) | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 35,000 | |||
Long-term debt, gross | $ 1,000 | $ 1,000 |
Term Debt and Other Borrowing_4
Term Debt and Other Borrowings, Net - Narrative (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Apr. 29, 2022 | Jan. 31, 2021 |
$1.0B MSR Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Unused capacity | $ 431.8 | ||||
$1.0B MSR Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Committed capacity | $ 500 | $ 650 | |||
Borrowing term | 3 years | ||||
Period during which the balance drawn must be repaid and no further amounts may be drawn down | 1 year | ||||
$1.0B MSR Facility | Minimum | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Advance rate as a percent of the value of the underlying mortgage servicing rights | 62.50% | ||||
$1.0B MSR Facility | Maximum | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Advance rate as a percent of the value of the underlying mortgage servicing rights | 72.50% | ||||
$85 million Servicing Advance Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 85 | $ 85 | |||
Unused capacity | 52.6 | ||||
$85 million Servicing Advance Facility | Minimum | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Advance rate as a percent of the value of the underlying mortgage servicing rights | 85% | ||||
$85 million Servicing Advance Facility | Maximum | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Advance rate as a percent of the value of the underlying mortgage servicing rights | 95% | ||||
$35 million Operating Line of Credit(b) | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 35 | ||||
Unused capacity | 0 | ||||
Senior Notes | $500 million Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | 500 | $ 550 | |||
Interest rate | 5% | ||||
Estimated fair value | $ 377 | $ 343.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Billions | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments to Extend Credit | ||
Other Commitments [Line Items] | ||
Committed amounts | $ 0.4 | $ 0.6 |
Regulatory Net Worth Requirem_2
Regulatory Net Worth Requirements - Narrative (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Mortgage Corporation (FHLMC) | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Net worth minimum | $ 224,700,000 | $ 225,700,000 |
Federal National Mortgage Association (FNMA) | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Net worth minimum | 224,700,000 | $ 225,700,000 |
Minimum | Banking Regulation, Mortgage Banking, State Mandate, Various States | Home Point Financial Corporation (HPF) | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Net worth minimum | 0 | |
Maximum | Banking Regulation, Mortgage Banking, State Mandate, Various States | Home Point Financial Corporation (HPF) | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Net worth minimum | $ 1,000 |
Representation and Warranty R_3
Representation and Warranty Reserve - Schedule of Mortgage Loans Repurchase Reserve Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Repurchase reserve at beginning of period | ||
Repurchase reserve at beginning of period | $ 26,605 | $ 24,577 |
Additions | 10,049 | 5,566 |
Charge-offs | (11,465) | (5,225) |
Repurchase reserve at end of period | $ 25,189 | $ 24,918 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Pull-through rate | Interest rate lock commitments | Weighted Average | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments | 0.652 | 0.775 |
Fair Value Measurements - Major
Fair Value Measurements - Major Categories of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||||
Mortgages held-for-sale | $ 472,990 | $ 642,993 | ||
Derivative assets | 30,727 | 25,611 | ||
Mortgage servicing rights | 1,251,600 | 1,402,542 | $ 1,490,225 | $ 1,525,103 |
Liabilities: | ||||
Derivative liabilities | 3,605 | 4,110 | ||
Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgage servicing rights | 1,251,600 | |||
Total | 1,728,257 | 2,053,873 | ||
Liabilities: | ||||
Total | 2,856 | 4,104 | ||
Level 1 | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgage servicing rights | 0 | |||
Total | 0 | 0 | ||
Liabilities: | ||||
Total | 0 | 0 | ||
Level 2 | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgage servicing rights | 0 | |||
Total | 467,285 | 635,215 | ||
Liabilities: | ||||
Total | 2,690 | 1,600 | ||
Level 3 | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgage servicing rights | 1,251,600 | |||
Total | 1,260,972 | 1,418,658 | ||
Liabilities: | ||||
Total | 166 | 2,504 | ||
Mortgage loans held for sale | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgages held-for-sale | 472,990 | 642,993 | ||
Mortgage loans held for sale | Level 1 | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgages held-for-sale | 0 | 0 | ||
Mortgage loans held for sale | Level 2 | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgages held-for-sale | 466,853 | 629,108 | ||
Mortgage loans held for sale | Level 3 | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgages held-for-sale | 6,137 | 13,885 | ||
Interest rate lock commitments | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 3,235 | 2,231 | ||
Liabilities: | ||||
Derivative liabilities | 166 | 2,504 | ||
Interest rate lock commitments | Level 1 | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Interest rate lock commitments | Level 2 | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Interest rate lock commitments | Level 3 | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 3,235 | 2,231 | ||
Liabilities: | ||||
Derivative liabilities | 166 | 2,504 | ||
Forward sale contracts | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 350 | 6,107 | ||
Liabilities: | ||||
Derivative liabilities | 2,547 | 1,200 | ||
Forward sale contracts | Level 1 | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Forward sale contracts | Level 2 | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 350 | 6,107 | ||
Liabilities: | ||||
Derivative liabilities | 2,547 | 1,200 | ||
Forward sale contracts | Level 3 | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Forward purchase contracts | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 82 | |||
Liabilities: | ||||
Derivative liabilities | 143 | 400 | ||
Forward purchase contracts | Level 1 | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 0 | |||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Forward purchase contracts | Level 2 | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 82 | |||
Liabilities: | ||||
Derivative liabilities | 143 | 400 | ||
Forward purchase contracts | Level 3 | Measured on a Recurring Basis | ||||
Assets: | ||||
Derivative assets | 0 | |||
Liabilities: | ||||
Derivative liabilities | $ 0 | 0 | ||
Mortgage servicing rights | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgage servicing rights | 1,402,542 | |||
Mortgage servicing rights | Level 1 | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgage servicing rights | 0 | |||
Mortgage servicing rights | Level 2 | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgage servicing rights | 0 | |||
Mortgage servicing rights | Level 3 | Measured on a Recurring Basis | ||||
Assets: | ||||
Mortgage servicing rights | $ 1,402,542 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 Assets Measured At Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
MSRs | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 1,402,542 | $ 1,525,103 |
Purchases, sales, issuances, contributions, and settlements | 18,984 | (262,915) |
Change in fair value | (169,926) | 228,036 |
Transfers in/out | 0 | 0 |
Balance at end of period | 1,251,600 | 1,490,224 |
IRLC-Asset | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 2,231 | 29,887 |
Purchases, sales, issuances, contributions, and settlements | 0 | 0 |
Change in fair value | 1,004 | (17,746) |
Transfers in/out | 0 | 0 |
Balance at end of period | 3,235 | 12,141 |
MLHS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 13,885 | 20,218 |
Purchases, sales, issuances, contributions, and settlements | (4,237) | (1,564) |
Change in fair value | (1,146) | (52) |
Transfers in/out | (2,365) | (826) |
Balance at end of period | 6,137 | 17,776 |
IRLC-Liability | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 2,504 | 2,843 |
Purchases, sales, issuances, contributions, and settlements | 0 | 42,615 |
Change in fair value | (2,338) | 0 |
Transfers in/out | 0 | 0 |
Balance at end of period | $ 166 | $ 45,458 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value and UPB of Mortgage Loans Held for Sale for which the Company has elected the Fair Value Option (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Fair Value | $ 472,990 | $ 642,993 |
Principal Amount Due Upon Maturity | 506,872 | 680,315 |
Difference | $ (33,882) | $ (37,322) |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of the Key Unobservable Inputs Used In the Valuation of the Level 3 Assets (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Mortgage servicing rights | Discount rate | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.098 | 0.093 |
Mortgage servicing rights | Discount rate | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.140 | 0.140 |
Mortgage servicing rights | Discount rate | Weighted Average | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.100 | 0.097 |
Mortgage servicing rights | Prepayment speeds | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.054 | 0.046 |
Mortgage servicing rights | Prepayment speeds | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.090 | 0.082 |
Mortgage servicing rights | Prepayment speeds | Weighted Average | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 0.057 | 0.054 |
Mortgage servicing rights | Cost to service | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 109 | 74 |
Mortgage servicing rights | Cost to service | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 229 | 133 |
Mortgage servicing rights | Cost to service | Weighted Average | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage servicing rights | 113 | 77 |
Interest rate lock commitments | Pull-through rate | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments | 0.15 | 0.210 |
Interest rate lock commitments | Pull-through rate | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments | 1 | 1 |
Interest rate lock commitments | Pull-through rate | Weighted Average | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments | 0.652 | 0.775 |
Mortgage loans held for sale | Investor pricing | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage loans held for sale | 0.604 | 0.650 |
Mortgage loans held for sale | Investor pricing | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage loans held for sale | 1.016 | 1.036 |
Mortgage loans held for sale | Investor pricing | Weighted Average | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage loans held for sale | 0.744 | 0.933 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Mar. 31, 2023 | |
Goodwill [Line Items] | ||
Impairment of goodwill | $ 10,800,000 | |
Goodwill | $ 0 | |
Origination | ||
Goodwill [Line Items] | ||
Impairment of goodwill | 7,000,000 | |
Servicing | ||
Goodwill [Line Items] | ||
Impairment of goodwill | $ 3,800,000 |
Equity-based Compensation - Nar
Equity-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Jan. 21, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares that may be granted as stock options and restricted stock awards (in shares) | 6,900,000 | |||
Plan expiration period | 10 years | |||
Unrecognized compensation costs | $ 40.3 | $ 68.6 | ||
Number of options vested and exercisable (in shares) | 2,185,555 | |||
Weighted-average exercise price of options currently exercisable (in dollars per share) | $ 4.98 | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated forfeiture rate | 0% | 0% | ||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated forfeiture rate | 10.40% | 10% | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 0.6 | 1.7 | ||
Weighted-average recognition period for unrecognized compensation expense | 5 years 21 days | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Compensation expense | $ 0.2 | 0.2 | ||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Compensation expense | $ 0 | $ 0 | ||
Performance period | 3 years | |||
Performance Shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 0% | |||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 150% |
Equity-based Compensation - Sch
Equity-based Compensation - Schedule of RSU and PSU Activity (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Restricted Stock Units (RSUs) | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 392,448 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (32,982) |
Forfeited (in shares) | shares | (50,636) |
Outstanding at end of period (in shares) | shares | 308,830 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.12 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 3.79 |
Forfeited (in dollars per share) | $ / shares | 5.76 |
Outstanding at end of period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.42 |
Performance Shares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 370,271 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (59,464) |
Outstanding at end of period (in shares) | shares | 310,807 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.43 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 3.79 |
Outstanding at end of period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.64 |
Equity-based Compensation - Act
Equity-based Compensation - Activity of the Company’s Stock Options (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Outstanding at beginning of period (in shares) | 10,933,893 | |
Granted (in shares) | 291,200 | |
Exercised (in shares) | (50,958) | |
Forfeited (in shares) | (167,028) | |
Expired (in shares) | (272,325) | |
Outstanding at end of period (in shares) | 10,734,782 | 10,933,893 |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 4.64 | |
Granted (in dollars per share) | 1.80 | |
Exercised (in dollars per share) | 6.83 | |
Forfeited (in dollars per share) | 1.85 | |
Expired (in dollars per share) | 3.74 | |
Outstanding at end of period (in dollars per share) | $ 4.69 | $ 4.64 |
Weighted Average Contractual Life (Years) | ||
Outstanding | 4 years 4 months 28 days | 4 years 8 months 12 days |
Granted | 3 months | |
Exercised | 10 days | |
Forfeited | 14 days | |
Expired | 1 year | |
Weighted Average Grant Date Fair Value | ||
Outstanding (in dollars per share) | $ 8.25 | $ 8.27 |
Granted (in dollars per share) | 9.86 | |
Exercised (in dollars per share) | 9.74 | |
Forfeited (in dollars per share) | 9.40 | |
Expired (in dollars per share) | $ 9.75 |
Equity-based Compensation - Sum
Equity-based Compensation - Summary of the Company’s Non-Vested Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Non-vested at beginning of period (in shares) | 8,566,613 | |
Granted (in shares) | 291,200 | |
Vested (in shares) | 181,725 | |
Exercised (in shares) | (50,958) | |
Forfeited (in shares) | (167,028) | |
Expired (in shares) | (272,325) | |
Non-vested at end of period (in shares) | 8,549,227 | |
Weighted Average Grant Date Fair Value | ||
Non-vested at end of period (in dollars per share) | $ 8.26 | $ 8.12 |
Granted (in dollars per share) | 9.86 | |
Vested (in dollars per share) | 8.95 | |
Exercised (in dollars per share) | 9.74 | |
Forfeited (in dollars per share) | 9.40 | |
Non-vested at beginning of period (in dollars per share) | 8.26 | |
Expired (in dollars per share) | $ 9.75 |
Equity-based Compensation - S_2
Equity-based Compensation - Summary of Assumptions Used in the Black-Scholes Option Valuation Model (Details) - Stock options | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 8 years 2 months 15 days | 8 years 3 months 3 days |
Risk-free interest rate, minimum | 0% | 56% |
Risk-free interest rate, maximum | 3% | 2.95% |
Expected volatility | 24.90% | 24.90% |
Dividend yield | 0% | 0% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) | $ (133,756) | $ 11,864 |
Net (loss) income attributable to common shareholders | (133,756) | 11,864 |
Net (loss) income attributable to Home Point - diluted | $ (133,756) | $ 11,864 |
Weighted average shares outstanding (in shares) | 138,422 | 139,171 |
Weighted average shares of common stock outstanding - diluted (shares) | 138,422 | 140,579 |
Basic (in dollars per share) | $ (0.97) | $ 0.09 |
Diluted (in dollars per share) | $ (0.97) | $ 0.08 |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Add: common stock issued (in shares) | 0 | 1,408 |
Shareholders' Equity and Equi_2
Shareholders' Equity and Equity Method Investment - Common Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Feb. 24, 2022 | |
Equity [Abstract] | |||
Common stock, par value (USD per share) | $ 0.0000 | $ 0.0000 | $ 0.0000 |
Stock repurchase program, authorized amount | $ 8 | ||
Stock repurchases (shares) | 461,690 | ||
Stock repurchase | $ 1.5 |
Shareholders' Equity and Equi_3
Shareholders' Equity and Equity Method Investment - Equity Method Investment (Details) - Longbridge Financial, LLC - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||
Percent ownership, equity method investment | 49.60% | ||
Impairment charge | $ 8.8 | ||
Purchase price | $ 38.9 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 24.60% | 20.10% |
Income tax expense (benefit) | $ (43,642) | $ 4,323 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments - Key Operating Data f
Segments - Key Operating Data for Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
(Loss) gain on loans, net | $ (1,490) | $ 45,404 |
Loan fee income | 1,655 | 19,904 |
Loan servicing fees | 58,827 | 81,064 |
Change in fair value of mortgage servicing rights | (159,247) | 17,183 |
Interest expense, net | (8,033) | (6,018) |
Other income | 701 | 634 |
Total | (107,587) | 158,171 |
Contribution loss | ||
Total | ||
Segment Reporting Information [Line Items] | ||
(Loss) gain on loans, net | (1,490) | 45,404 |
Loan fee income | 1,655 | 19,904 |
Loan servicing fees | 58,827 | 81,064 |
Change in fair value of mortgage servicing rights | (159,247) | 17,183 |
Interest expense, net | (8,033) | (6,018) |
Other income | 701 | (4,638) |
Total | (107,587) | 152,899 |
Contribution loss | (177,398) | 16,187 |
Segments | ||
Segment Reporting Information [Line Items] | ||
(Loss) gain on loans, net | (1,490) | 45,404 |
Loan fee income | 1,655 | 19,904 |
Loan servicing fees | 58,827 | 81,064 |
Change in fair value of mortgage servicing rights | (159,247) | 17,183 |
Interest expense, net | 7,705 | 8,162 |
Other income | 1 | 0 |
Total | (92,549) | 171,717 |
Contribution loss | (129,133) | 74,844 |
All Other | ||
Segment Reporting Information [Line Items] | ||
(Loss) gain on loans, net | 0 | 0 |
Loan fee income | 0 | 0 |
Loan servicing fees | 0 | 0 |
Change in fair value of mortgage servicing rights | 0 | 0 |
Interest expense, net | (15,738) | (14,180) |
Other income | 700 | (4,638) |
Total | (15,038) | (18,818) |
Contribution loss | (48,265) | (58,657) |
Reconciling Item | ||
Segment Reporting Information [Line Items] | ||
(Loss) gain on loans, net | 0 | 0 |
Loan fee income | 0 | 0 |
Loan servicing fees | 0 | 0 |
Change in fair value of mortgage servicing rights | 0 | 0 |
Interest expense, net | 0 | 0 |
Other income | 0 | 5,272 |
Total | 0 | 5,272 |
Contribution loss | ||
Origination | Segments | ||
Segment Reporting Information [Line Items] | ||
(Loss) gain on loans, net | (1,490) | 45,404 |
Loan fee income | 1,655 | 19,904 |
Loan servicing fees | 0 | 0 |
Change in fair value of mortgage servicing rights | 0 | 0 |
Interest expense, net | 810 | 7,456 |
Other income | 1 | 0 |
Total | 976 | 72,764 |
Contribution loss | (20,056) | (8,390) |
Servicing | Segments | ||
Segment Reporting Information [Line Items] | ||
(Loss) gain on loans, net | 0 | 0 |
Loan fee income | 0 | 0 |
Loan servicing fees | 58,827 | 81,064 |
Change in fair value of mortgage servicing rights | (159,247) | 17,183 |
Interest expense, net | 6,895 | 706 |
Other income | 0 | 0 |
Total | (93,525) | 98,953 |
Contribution loss | $ (109,077) | $ 83,234 |
Segments - Reconciliation of Se
Segments - Reconciliation of Segment Contribution Margin to Consolidated U.S. GAAP Income (Loss) Before Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting [Abstract] | ||
(Loss) income before income tax | $ (177,398) | $ 21,459 |
Loss from equity method investment | 0 | (5,272) |
Contribution (loss) margin | $ (177,398) | $ 16,187 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Loan expense | $ 122 | $ 6,092 |
Loan servicing expense | 4 | 489 |
General and administrative | 840 | 3,199 |
Other expenses | 4,832 | 5,729 |
Other | 0 | 206 |
Total related party expenses | $ 5,798 | $ 15,714 |
Sale of Certain Assets in Ori_2
Sale of Certain Assets in Origination Segment, Sale of Correspondent Channel and Home Point Asset Management LLC (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
Dec. 22, 2022 | Jun. 01, 2022 | Mar. 31, 2023 | Apr. 06, 2023 | Dec. 31, 2022 | Feb. 24, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Common stock, par value (USD per share) | $ 0.0000 | $ 0.0000 | $ 0.0000 | |||
Subsequent Event | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Percent ownership | 9.99% | |||||
Common Class A | Subsequent Event | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Common stock, par value (USD per share) | $ 0.001 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Correspondent Channel | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture | $ 2.5 | |||||
Earnout payment period | 2 years | |||||
Earnout income | $ 0.5 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | HPAM And Wholly Owned Subsidiary HPMAC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture | $ 3.2 |
Restructuring (Details)
Restructuring (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Restructuring and Related Activities [Abstract] | |
Expected additional restructuring cost | $ 29.9 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
May 10, 2023 | May 02, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | May 05, 2023 | Apr. 20, 2023 | |
Subsequent Event [Line Items] | |||||||
Proceeds from sale of mortgage servicing rights | $ 0 | $ 390,532 | |||||
Percentage of MSR sold | 1.70% | ||||||
Warehouse Lines of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 2,800,000 | $ 2,800,000 | |||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
MSR, unpaid principal balance | $ 1,500,000 | ||||||
Proceeds from sale of mortgage servicing rights | $ 21,300 | ||||||
Subsequent Event | Mr. Cooper Group Inc | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from the sale of shares | $ 324,000 | ||||||
Subsequent Event | Master Repurchase Agreement | Warehouse Lines of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 200,000 | ||||||
Subsequent Event | BMO Master Repurchase Agreement | Warehouse Lines of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 200,000 | ||||||
Subsequent Event | Wells Master Repurchase Agreement | Warehouse Lines of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 400,000 | ||||||
Subsequent Event | TIAA Master Repurchase Agreement | Warehouse Lines of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 200,000 | ||||||
Subsequent Event | 5% Senior Notes, Due February 2026 | Mr. Cooper Group Inc | Senior Notes | |||||||
Subsequent Event [Line Items] | |||||||
Face amount of debt | $ 500,000 | ||||||
Interest rate | 5% |