Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 13, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40003 | ||
Entity Registrant Name | loanDepot, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 85-3948939 | ||
Entity Address, Address Line One | 6561 Irvine Center Drive, | ||
Entity Address, City or Town | Irvine, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92618 | ||
City Area Code | (888) | ||
Local Phone Number | 337-6888 | ||
Title of 12(b) Security | Class A Common Stock, $0.001 per value per share | ||
Trading Symbol | LDI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 122,265,791 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement for use in connection with its 2024 Annual Meeting of Stockholders, which is to be filed no later than 120 days after December 31, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001831631 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 84,732,443 | ||
Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 | ||
Class C | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 141,329,339 | ||
Class D | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 97,026,671 |
Audit Information
Audit Information | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Audit Information [Abstract] | ||
Auditor Firm ID | 42 | 42 |
Auditor Name | Ernst & Young LLP | Ernst & Young LLP |
Auditor Location | Irvine, California | Irvine, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 660,707 | $ 863,956 |
Restricted cash | 85,149 | 116,545 |
Loans held for sale, at fair value (includes $510,080 and $497,574 pledged to creditors in securitization trusts at December 31, 2023 and 2022, respectively) | 2,132,880 | 2,373,427 |
Derivative assets, at fair value | 93,574 | 39,411 |
Servicing rights, at fair value (includes $617,878 and $544,729 pledged to creditors in securitization trusts at December 31, 2023 and 2022, respectively) | 1,999,763 | 2,037,447 |
Trading securities, at fair value | 92,901 | 94,243 |
Property and equipment, net | 70,809 | 92,889 |
Operating lease right-of-use assets | 29,433 | 35,668 |
Loans eligible for repurchase | 711,371 | 634,677 |
Investments in joint ventures | 20,363 | 20,410 |
Other assets | 254,098 | 301,261 |
Total assets | 6,151,048 | 6,609,934 |
Liabilities: | ||
Warehouse and other lines of credit | 1,947,057 | 2,146,602 |
Accounts payable, accrued expenses and other liabilities | 379,971 | 488,696 |
Derivative liabilities, at fair value | 84,962 | 67,492 |
Liability for loans eligible for repurchase | 711,371 | 634,677 |
Operating lease liability | 49,192 | 61,675 |
Debt obligations, net | 2,274,011 | 2,289,319 |
Total liabilities | 5,446,564 | 5,688,461 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $0.001 par value, 50,000,000 authorized, none issued at December 31, 2023 and 2022, respectively | 0 | 0 |
Treasury stock at cost, 3,349,395 and 1,780,141 shares at December 31, 2023 and 2022, respectively | (16,493) | (13,282) |
Additional paid-in capital | 821,055 | 788,601 |
Retained deficit | (451,706) | (342,137) |
Noncontrolling interest | 351,303 | 487,974 |
Total equity | 704,484 | 921,473 |
Total liabilities and equity | 6,151,048 | 6,609,934 |
Class A | ||
Equity: | ||
Common stock, $0.001 par value | 87 | 74 |
Class B | ||
Equity: | ||
Common stock, $0.001 par value | 0 | 0 |
Class C | ||
Equity: | ||
Common stock, $0.001 par value | 141 | 146 |
Class D | ||
Equity: | ||
Common stock, $0.001 par value | $ 97 | $ 97 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loans held for sale, at fair value | $ 2,132,880 | $ 2,373,427 |
Servicing rights at fair value, amount | $ 1,999,763 | $ 2,037,447 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 3,349,395 | 1,780,141 |
Class A | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, shares, issued (in shares) | 87,377,147 | 74,277,152 |
Class B | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, shares, issued (in shares) | 0 | 0 |
Class C | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, shares, issued (in shares) | 141,234,529 | 145,693,119 |
Class D | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, shares, issued (in shares) | 97,026,671 | 97,026,671 |
Pledged as Collateral | ||
Loans held for sale, at fair value | $ 510,080 | $ 497,574 |
Servicing rights at fair value, amount | $ 617,878 | $ 544,729 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES: | |||
Interest income | $ 133,263,000 | $ 200,204,000 | $ 262,478,000 |
Interest expense | (130,145,000) | (150,897,000) | (218,457,000) |
Net interest income | 3,118,000 | 49,307,000 | 44,021,000 |
Gain on origination and sale of loans, net | 524,521,000 | 748,540,000 | 3,213,351,000 |
Origination income, net | 65,209,000 | 129,736,000 | 362,257,000 |
Servicing fee income | 492,811,000 | 449,150,000 | 393,680,000 |
Changes in fair value of servicing rights, net | (184,417,000) | (194,357,000) | (445,862,000) |
Other income | 72,780,000 | 73,420,000 | 157,257,000 |
Total net revenues | 974,022,000 | 1,255,796,000 | 3,724,704,000 |
EXPENSES: | |||
Personnel expense | 573,010,000 | 1,027,008,000 | 1,929,752,000 |
Marketing and advertising expense | 132,880,000 | 236,828,000 | 467,590,000 |
Direct origination expense | 67,141,000 | 120,854,000 | 193,264,000 |
General and administrative expense | 212,732,000 | 265,680,000 | 214,965,000 |
Occupancy expense | 23,516,000 | 35,306,000 | 38,443,000 |
Depreciation and amortization | 41,261,000 | 42,195,000 | 35,541,000 |
Servicing expense | 27,687,000 | 53,106,000 | 99,068,000 |
Other interest expense | 174,103,000 | 124,060,000 | 79,564,000 |
Goodwill impairment | 0 | 40,736,000 | 0 |
Total expenses | 1,252,330,000 | 1,945,773,000 | 3,058,187,000 |
(Loss) income before income taxes | (278,308,000) | (689,977,000) | 666,517,000 |
Income tax (benefit) expense | (42,796,000) | (79,592,000) | 43,371,000 |
Net (loss) income | (235,512,000) | (610,385,000) | 623,146,000 |
Net (loss) income attributable to noncontrolling interest | (125,370,000) | (337,365,000) | 509,622,000 |
Net (loss) income attributable to loanDepot, Inc. | $ (110,142,000) | $ (273,020,000) | $ 113,524,000 |
Weighted average shares outstanding: | |||
Basic (in shares) | 174,906,063 | 156,030,350 | 129,998,894 |
Diluted (in shares) | 174,906,063 | 156,030,350 | 129,998,894 |
Common Class A And D | |||
(Loss) earnings per share attributable to loanDepot, Inc. Class A and Class D common stockholders: | |||
Basic (in usd per share) | $ (0.63) | $ (1.75) | $ 0.87 |
Diluted (in usd per share) | $ (0.63) | $ (1.75) | $ 0.87 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Class A | Class C | Class D | Class A and D | Class C common stock Class A | Class C common stock Class C | Class C common stock Class D | Treasury Stock | Additional paid-in capital | Retained Deficit | Retained Deficit Class A | Retained Deficit Class C | Retained Deficit Class A and D | Non-controlling Interests | Non-controlling Interests Class A | Non-controlling Interests Class C | Non-controlling Interests Class A and D |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 0 | 0 | 0 | |||||||||||||||
Balance at beginning of period at Dec. 31, 2020 | $ 1,656,613 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,656,613 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net (loss) income | 623,146 | |||||||||||||||||
Balance at end of period (in shares) at Dec. 31, 2021 | 36,466,936 | 172,729,168 | 100,822,084 | |||||||||||||||
Balance at end of period at Dec. 31, 2021 | 1,629,360 | $ 38 | $ 173 | $ 101 | (12,852) | 565,073 | (28,976) | 1,105,803 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Refund of tax distributions, net | (63,676) | (28,948) | (34,728) | |||||||||||||||
Net (loss) income | (610,385) | (273,020) | (337,365) | |||||||||||||||
Conversion-related deferred taxes and adjustments | (29,317) | (29,317) | ||||||||||||||||
Net common stock issued under stock-based compensation plans (in shares) | 36,030,075 | (27,036,049) | (3,795,413) | |||||||||||||||
Net common stock issued under stock-based compensation plans | (430) | $ 36 | $ (27) | $ (4) | (430) | 242,280 | (242,285) | |||||||||||
Dividends | $ (12,874) | $ (11,788) | $ (5,866) | $ (5,327) | ||||||||||||||
Noncontrolling interest, dividends | $ (7,008) | $ (6,461) | ||||||||||||||||
Stock-based compensation | 20,583 | 10,565 | 10,018 | |||||||||||||||
Balance at end of period (in shares) at Dec. 31, 2022 | 74,277,152 | 145,693,119 | 97,026,671 | 72,497,011 | 145,693,119 | 97,026,671 | ||||||||||||
Balance at end of period at Dec. 31, 2022 | 921,473 | $ 74 | $ 146 | $ 97 | (13,282) | 788,601 | (342,137) | 487,974 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Refund of tax distributions, net | 454 | 241 | 213 | |||||||||||||||
Net (loss) income | (235,512) | (110,142) | (125,370) | |||||||||||||||
Conversion-related deferred taxes and adjustments | (2,837) | (2,837) | ||||||||||||||||
Net common stock issued under stock-based compensation plans (in shares) | 11,530,741 | (4,458,590) | ||||||||||||||||
Net common stock issued under stock-based compensation plans | (1,865) | $ 13 | $ (5) | $ 0 | (3,211) | 23,223 | (21,885) | |||||||||||
Forfeiture of accrued dividends | $ 249 | $ 529 | $ 111 | $ 221 | $ 138 | $ 308 | ||||||||||||
Stock-based compensation | 21,993 | 12,068 | 9,925 | |||||||||||||||
Balance at end of period (in shares) at Dec. 31, 2023 | 87,377,147 | 141,234,529 | 97,026,671 | 84,027,752 | 141,234,529 | 97,026,671 | ||||||||||||
Balance at end of period at Dec. 31, 2023 | $ 704,484 | $ 87 | $ 141 | $ 97 | $ (16,493) | $ 821,055 | $ (451,706) | $ 351,303 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Class A and D | ||
Dividends declared (in usd per share) | $ 0.08 | $ 0.85 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (235,512) | $ (610,385) | $ 623,146 |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | |||
Depreciation and amortization expense | 41,261 | 42,195 | 35,541 |
Amortization of debt issuance costs | 7,392 | 15,160 | 12,633 |
Amortization of operating lease right-of-use asset | 14,162 | 20,776 | 22,613 |
Gain on origination and sale of loans | (503,190) | (1,203,521) | (3,633,452) |
Fair value change in trading securities | (4,151) | 21,573 | 836 |
Provision for loss obligation on sold loans and servicing rights | 8,560 | 151,211 | 18,403 |
(Decrease) increase in provision for deferred income taxes | (43,175) | (80,276) | 31,315 |
Fair value change in derivative assets | 33,755 | 333,786 | 460,264 |
Fair value change in derivative liabilities | 17,470 | 29,695 | (130,372) |
Premium (paid) received on derivatives | (87,918) | (178,532) | 3,393 |
Purchase of options contracts | 0 | 0 | (10,383) |
Fair value change in loans held for sale | (64,940) | 185,111 | 104,715 |
Fair value change in servicing rights | 136,118 | (143,168) | 351,767 |
Stock-based compensation expense | 21,993 | 20,583 | 67,063 |
Originations of loans | (22,393,729) | (53,094,767) | (136,606,028) |
Proceeds from sales of loans | 23,239,202 | 59,681,043 | 138,027,936 |
Proceeds from principal payments | 129,752 | 132,322 | 182,883 |
Payments to investors for loan repurchases | (491,852) | (742,911) | (965,933) |
Gain on extinguishment of debt | (1,690) | (10,528) | 0 |
Goodwill impairment | 0 | 40,736 | 0 |
Disbursements from joint ventures | 18,968 | 12,128 | 11,749 |
Other changes in operating assets and liabilities | (16,691) | (161,485) | (73,774) |
Net cash (used in) provided by operating activities | (174,215) | 4,460,746 | (1,465,685) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property and equipment | (20,612) | (43,211) | (54,124) |
Proceeds from sale of servicing rights | 180,687 | 703,812 | 349,528 |
Cash flows received on trading securities | 5,492 | 7,484 | 2,268 |
Investment in joint ventures | 0 | (325) | (1,115) |
Return of capital from joint ventures | 92 | 0 | 221 |
Net cash provided by investing activities | 165,659 | 667,760 | 296,778 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from borrowings on warehouse and other lines of credit | 20,515,015 | 58,014,318 | 154,391,100 |
Repayment of borrowings on warehouse and other lines of credit | (20,714,561) | (63,324,914) | (153,511,330) |
Proceeds from debt obligations | 402,834 | 2,124,401 | 1,401,782 |
Payments on debt obligations | (417,879) | (1,456,888) | (479,778) |
Payments of debt issuance costs | (5,307) | (5,824) | (21,185) |
Payments on financing lease obligation | 0 | 0 | (3,610) |
Treasury stock purchased to net settle and withhold taxes on vested shares | (3,211) | (430) | (12,852) |
Dividends and shareholder distributions | (2,980) | (119,264) | (463,313) |
Net cash (used in) provided by financing activities | (226,089) | (4,768,601) | 1,300,814 |
Net change in cash and cash equivalents and restricted cash | (234,645) | 359,905 | 131,907 |
Cash and cash equivalents and restricted cash at beginning of the period | 980,501 | 620,596 | 488,689 |
Cash and cash equivalents and restricted cash at end of the period | 745,856 | 980,501 | 620,596 |
SUPPLEMENTAL DISCLOSURES: | |||
Cash paid during the period for interest | 321,626 | 253,728 | 270,471 |
Cash paid during the period for income taxes | (8,870) | 26,730 | 3,329 |
Supplemental disclosure of noncash investing and financing activities | |||
Trading securities retained in securitizations | 0 | 50,426 | 75,979 |
Purchase of equipment under financing leases | $ 0 | $ 0 | $ 168 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations loanDepot, Inc. (together with its consolidated subsidiaries, the “Company”) was incorporated in Delaware on November 6, 2020 to facilitate the initial public offering (“IPO”) of its Class A common stock and related transactions in order to carry on the business of LD Holdings and its consolidated subsidiaries. loanDepot, Inc.’s common stock began trading on the New York Stock Exchange on February 11, 2021 under the ticker symbol “LDI.” As a holding company, loanDepot, Inc.'s sole material asset is its equity interest in LD Holdings. In its role as the sole managing member, loanDepot, Inc. exercises indirect control over all the business and affairs of LD Holdings. LD Holdings, in turn, is also a holding company with no significant assets, except for equity interests in its direct subsidiaries. As of December 31, 2023, these subsidiaries include 99.99% ownership in LDLLC (the majority asset of the group), and 100% equity ownership in ART, LDSS, Mello, and MCS. The Company engages in originating, financing, selling, and servicing residential mortgage loans. Additionally, it provides title, escrow, and settlement services for mortgage loan transactions. The Company primarily derives income from gains on the origination and sale of loans to investors, income from loan servicing, and fees charged for settlement services related to the origination and sale of loans. Summary of Significant Accounting Policies The following is a summary of the significant accounting policies used in preparation of the Company’s consolidated financial statements. Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the FASB’s Accounting Standards Codification (“ASC” or the “Codification”). The accompanying consolidated financial statements include all of the assets, liabilities, and results of operations of the Company and consolidated variable interest entities (“VIEs”) in which the Company is the primary beneficiary. LD Holdings is considered a VIE, and the financial results of LD Holdings and its subsidiaries are consolidated with loanDepot, Inc. The consolidated net earnings or loss are allocated to noncontrolling interests to reflect the entitlement of certain members that still hold Class A holdings units (“Holdco Units”) and Class C common stock, (“Continuing LLC Members”) as of the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Other entities that the Company does not consolidate, but for which it has significant influence over operating and financial policies, are accounted for using the equity method. Certain items in prior periods were reclassified to conform to the current presentation. To conform to the current period presentation, fair value change in servicing rights on the consolidated statements of cash flow includes gains or losses on the sale of MSRs. Additionally, other assets on the consolidated balance sheets now include accounts receivable, net and prepaid expenses and other assets. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management has made significant estimates in certain areas, including determining the fair value of loans held for sale, servicing rights, derivative assets and derivative liabilities, trading securities, awards granted under the incentive equity plan, determining the loan loss obligation on sold loans and MSRs. Actual results could differ from those estimates. Variable Interest Entities (VIEs) VIEs are entities that have a total equity investment at risk insufficient to permit the entity to finance its activities without additional subordinated financial support, whose equity investors at risk lack the ability to control the entity's activities, or are structured with non-substantive voting rights. The Company evaluates its associations with VIEs, both at inception and when there is a change in circumstance that requires reconsideration, to determine if the Company is the primary beneficiary and consolidation is required. The determination of whether the assets and liabilities of the VIEs are consolidated or not consolidated in the consolidated balance sheets depends on the terms of the related transaction and the Company’s continuing involvement, if any, with the VIE. A primary beneficiary is defined as a variable interest holder that has a controlling financial interest. A controlling financial interest requires both: (a) the power to direct the activities that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or receive benefits of a VIE that could potentially be significant to the VIE. The Company determines whether it holds a significant variable interest in a VIE based on a consideration of both qualitative and quantitative factors regarding the nature, size, and form of its involvement with the VIE. Reportable Segments The Company’s organizational structure is currently comprised of one operating segment. This determination is based on the organizational structure, which reflects how the chief operating decision maker evaluates the performance of the business. The Company’s chief operating decision maker evaluates the performance of the business that comprises one segment based on the measurement of income before income taxes. Fair Value Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (not in a forced transaction) between willing market participants at the measurement date. Financial instruments recorded at fair value on a recurring basis include the Company’s loans held for sale, derivative assets and derivative liabilities, servicing rights, and trading securities. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of assets and liabilities measured at fair value within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2 - Prices determined or determinable 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 other inputs. • 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. The following are methods and assumptions used to measure the Company’s financial instruments recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. Loans held for sale, at fair value- LHFS are valued at the best execution value based on the underlying characteristics of the loan, which is either based off of the to-be-announced mortgage-backed securities (“TBA MBS”) market prices, or investor pricing, based on product, note rate and term, therefore LHFS are classified as Level 2. The most significant data inputs used in this valuation include, but are not limited to, loan type, underlying loan amount, note rate, loan program, and expected sale date of the loan. The valuations for LHFS are adjusted at the loan level to consider the servicing release premium and loan level pricing adjustments specific to each loan. Changes in the fair value of the LHFS are recorded in current earnings as a component of gain on origination and sale of loans, net. Loans eligible for repurchase - Loans eligible for repurchase represents certain mortgage loans sold pursuant to Government National Mortgage Association (“Ginnie Mae”) programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans as an asset with a corresponding repurchase liability in its consolidated balance sheets. These loans are government guaranteed. The carrying value of loans eligible for repurchase approximates the fair value. Servicing rights, at fair value - The Company uses a discounted cash flow approach to estimate the fair value of servicing rights. This approach consists of projecting servicing cash flows. The inputs used in the Company's discounted cash flow model are based on market factors, which management believes are consistent with assumptions and data used by market participants valuing similar servicing rights. The key inputs used in the valuation of servicing rights include mortgage prepayment speeds, discount rates, costs to service the loan, and other inputs such as projected and actual rates of delinquencies, recapture rate, defaults and liquidations, ancillary fee income, and amounts of future servicing advances. These inputs can, and generally do, change from period to period as market conditions change. Servicing rights are classified as Level 3 as considerable judgment is required to estimate the fair values and the exercise of such judgment can significantly affect the Company's income. Derivative assets and liabilities, at fair value - Derivative assets and liabilities at fair value include interest rate lock commitments (“IRLCs”), forward sales contracts, interest rate swap futures, put options on treasuries and MBS put options. Changes in fair value of derivatives hedging IRLCs and LHFS at fair value are included in gain on origination and sale of loans, net on the consolidated statements of operations. Changes in fair value of derivatives hedging mortgage servicing rights (“MSRs”) are included in change in fair value of servicing rights, net on the consolidated statements of operations. Interest rate lock commitments- The Company enters into IRLCs with prospective borrowers, which are commitments to originate loans at a specified interest rate. The IRLCs are recorded as a component of derivative assets and liabilities on the consolidated balance sheets with changes in fair value being recorded in current earnings as a component of gain on origination and sale of loans, net. The Company estimates the fair value of the IRLCs based on quoted agency TBA MBS prices, its estimate of the fair value of the servicing rights it expects to receive in the sale of the loans, the probability that the mortgage loan will fund or be purchased (the “pull-through rate”), and estimated transformative costs. The pull-through rate is based on the Company’s own experience and is a significant unobservable input used in the fair value measurement of these instruments and results in the classification of these instruments as Level 3. Significant changes in the pull-through rate of the IRLCs, in isolation, could result in significant changes in fair value measurement. Forward sale contracts - Forward sale contracts and commitments are valued using observable market data, primarily TBA MBS pricing specific to the loan program that reflect the commitments particular product, coupon, and settlement. These derivatives are classified as Level 2. Best efforts forward delivery commitments are also entered into for certain loans at the time the borrower commitment is made. These commitments are valued using the committed price to the counterparty against the current market price of the IRLC or LHFS. Put options on treasuries and interest rate swap futures - The Company also utilizes put options and treasury futures to hedge interest rate risk. These instruments are actively traded in a liquid market and classified as Level 1 inputs. MBS put options - MBS put options are used to hedge against interest rate risk. MBS put options are traded over-the-counter with pricing inputs derived from observable market data, such as interest rates, or volatility, and are therefore classified as Level 2. Trading securities, at fair value - Trading securities, at fair value represent retained interest in the credit risk of the assets collateralizing certain securitization transactions. The fair value is based on observable market data for similar securities obtained from sources independent of the Company and therefore classified as Level 2. Warehouse lines - The Company’s warehouse lines of credit bear interest at a rate that is periodically adjusted based on a market index. The carrying value of warehouse lines of credit approximates fair value. The warehouse lines are classified as Level 2 in the fair value hierarchy. Debt obligations, net - Debt consists of secured debt facilities and unsecured Senior Notes. The Company’s secured credit facilities are highly liquid and short-term in nature and as a result, their carrying value approximated fair value. The secured credit facilities bear interest at a rate that is periodically adjusted based on a market index and are classified as Level 2 in the fair value hierarchy. Fair value of the Company’s Senior Notes are estimated using quoted market prices. The Senior Notes are classified as Level 2 in the fair value hierarchy. Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. As of December 31, 2023 and 2022, all amounts recorded in cash and cash equivalents represent cash held in banks, with the exception of insignificant amounts of petty cash held on hand. Restricted Cash Cash balances that have restrictions as to the Company's ability to withdraw funds are considered restricted cash. Restricted cash is the result of the terms of the Company's warehouse lines of credit, debt obligations, and cash collateral associated with the Company’s derivative activities. In accordance with the terms of the warehouse lines of credit and debt obligations, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings. Loans Held for Sale, at Fair Value Loans held for sale are accounted for at fair value, with changes in fair value recognized in current period income, to more timely reflect the value of the loans. All changes in fair value, including changes arising from the passage of time, are recognized as a component of gain on origination and sale of loans, net. Sale Recognition - The Company recognizes transfers of loans held for sale as sales when it surrenders control over the loans. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. If the sale criteria are not met, the transfer is recorded as a secured borrowing in which the assets remain on the balance sheet, and the proceeds from the transaction are recognized as a liability. Net interest income - Interest income on loans held for sale is recognized using their contractual interest rates. Interest income recognition is suspended for loans when they become 90 days delinquent, or when, in management's opinion, a full recovery of interest and principal becomes doubtful. Interest income recognition is resumed when the loan becomes contractually current. When loans are placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income on non-accrual loans is subsequently recognized only to the extent cash is received. Interest expense on warehouse and other lines of credit, debt obligations, and other types of borrowings is recognized using their contractual rates. Interest expense also includes the amortization of expenses incurred in connection with financing activities over the term of the related borrowings. Origination Income, net - Origination income, net, reflects the fees earned, net of lender credits paid from originating loans. Origination income includes loan origination fees, processing fees, underwriting fees and other fees collected from the borrower at the time of funding. Lender credits typically include rebates or concessions to borrowers for certain loan origination costs. Loan Loss Obligations on Loans Sold When the Company sells loans to investors, the risk of loss or default by the borrower is generally transferred to the investor. However, the Company is required by these investors to make certain representations relating to credit information, loan documentation and collateral. These representations and warranties may extend through the contractual life of the mortgage loan. Subsequent to the sale, if underwriting deficiencies, borrower fraud or documentation defects are discovered in individual mortgage loans, the Company may be obligated to repurchase the respective mortgage loan or indemnify the investors for any losses from borrower defaults if such deficiency or defect cannot be cured within the specified period following discovery. In the case of early loan payoffs and early defaults on certain loans, the Company may be required to repay all or a portion of the premium initially paid by the investor on loans. The estimated obligation associated with early loan payoffs and early defaults is calculated based on historical loss experience. The obligation for losses related to the representations and warranties and other provisions discussed above is recorded based upon an estimate of losses. The liability for repurchase losses is assessed quarterly. Because the Company does not service all of the loans it sells, it does not maintain nor have access to the current balances and loan performance data with respect to all of the individual loans previously sold to investors. However, the Company uses industry-available prepayment data, historical and projected loss frequency and loss severity ratios, default expectations, and expected investor repurchase demands, to estimate its exposure to losses on loans previously sold. Given current general industry trends in mortgage loans as well as housing prices, market expectations around losses related to the Company's obligations could vary significantly from the obligation recorded as of the balance sheet dates. The Company records a provision for loan losses, included in gain on origination and sale of loans, net in the consolidated statements of operations, to establish the loan repurchase reserve for sold loans which is reflected in accounts payable, accrued expenses, and other liabilities on the consolidated balance sheets. Securitizations The Company is involved in several types of securitization and financing transactions that utilize special-purpose entities (SPEs). A SPE is an entity that is designed to fulfill a specified limited need of the sponsor. The Company’s principal use of SPEs is to obtain liquidity by securitizing certain of its financial and non-financial assets. SPEs involved in the Company’s securitization and other financing transactions are often considered VIEs. Securitization transactions are accounted for either as sales or secured borrowings. The Company may retain economic interests in the securitized and sold assets, which are generally retained in the form of subordinated interests, residual interests, and/or servicing rights. The Company sells mortgage loans to investors through private label securitizations, which are accounted for either as sales or secured borrowings. The Company may retain economic interests in the securitized and sold assets, which are generally retained in the form of senior or subordinated interests, residual interests, and/or servicing rights. The Company evaluates its interests in each private label securitization for classification as a VIE. The Company accounts for a securitization as a sale when it has relinquished control over the transferred financial assets and does not hold other interests in the VIE that individually, or in the aggregate, would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns. The Company has an option to exercise a cleanup call to purchase the remaining mortgage loans and any trust property when the remaining aggregate principal balance is less than 10% of the initial aggregate principal balance. Derivative Financial Instruments Derivative financial instruments are recognized as assets or liabilities and are measured at fair value. The Company accounts for derivatives as free-standing derivatives and does not designate any derivative financial instruments for hedge accounting. All derivative financial instruments are recognized on the consolidated balance sheets at fair value with changes in the fair values being reported in current period earnings. The Company does not use derivative financial instruments for purposes other than in support of its risk management activities. Certain derivatives, loan warehouse, and repurchase agreements are subject to master netting arrangements or similar agreements. In certain circumstances the Company may elect to present certain financial assets, liabilities subject to master netting arrangements in a net position on the consolidated balance sheets. The Company enters into IRLCs to originate loans held for sale, at specified interest rates, with residential mortgage loan customers whose applications meet credit and underwriting criteria. The Company bears price risk from the time a commitment to originate a loan is made to a borrower or to purchase a loan from a third-party, to the time the loan is sold. During this period, the Company is exposed to losses if mortgage interest rates rise because the value of the IRLC or the LHFS decreases. The Company manages the price risk created by IRLCs and LHFS by entering into forward sale agreements to sell, buy, or originate specified residential mortgage loans at prices which are fixed as of the forward commitment date. Forward sale contracts also include pair offs hedging MSRs, IRLCs, and LHFS. The Company is exposed to fair value losses on servicing rights, LHFS, and IRLCs from changes in mortgage interest rates. The Company manages the risk by hedging the fair value with put options on treasuries, MBS put options, and interest rate swap futures. Servicing Rights When the Company sells a loan on a servicing-retained basis, it recognizes a servicing asset at fair value based on the present value of future cash flows generated by the servicing asset retained in the sale. The Company has made the election to carry its servicing rights at fair value. The value of servicing rights is derived from net positive cash flows associated with servicing contracts, resulting from contractual agreements between the Company and investors (or their agents) in mortgage securities and loans. Under these contracts, the Company performs loan servicing functions in exchange for fees and other remuneration. Servicing functions include collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest; holding custodial (impound) funds for the payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising real estate acquisition and disposition in settlement of loans. Change in Fair Value of Servicing Rights, net - Unrealized gains or losses resulting from changes in the fair value of servicing rights are recorded to change in fair value of servicing rights, net. Realized and unrealized hedging gains or losses used to hedge interest rate risk on servicing rights are recorded to change in fair value of servicing rights, net. Realized gains or losses from the sale of servicing rights are also included in change in fair value of servicing rights, net. Servicing Fee Income - Servicing fees are collected from the monthly payments made by mortgagors. Additionally, the company is contractually entitled to receive other forms of remuneration, including late charges, collateral reconveyance charges, loan prepayment penalties, and interest earned on funds pending remittance. The Company is required to make servicing advances on behalf of borrowers and investors to cover delinquent balances for property taxes, insurance premiums and other costs. Advances are made in accordance with servicing agreements and are recoverable upon collection from the borrower or foreclosure of the underlying loans. The Company periodically reviews the receivable for collectability and amounts are written-off when deemed uncollectible. As of December 31, 2023 and 2022, the Company had $118.4 million and $98.7 million, respectively, in outstanding servicing advances included in other assets. Sales of servicing rights are recognized when (i) the Company secures necessary approval from the investor, if required; (ii) the purchaser holds current approval as a servicer without the risk of losing that status; (iii) in cases where the sales price is financed, an adequate nonrefundable down payment is received, and the note receivable from the purchaser provides full recourse to the purchaser; and (iv) any temporary servicing performed by the Company for a brief period is compensated in accordance with a subservicing contract that ensures adequate compensation. Additionally, the Company recognizes sales of servicing rights if title passes, substantial risks and rewards of ownership have irrevocably transferred to the purchaser, and any protection provisions retained by the Company are minor and reasonably estimable. When a sale is acknowledged with only minor protection provisions, the Company accrues a liability for the estimated obligation associated with those provisions, which is included in accounts payable, accrued expenses, and other liabilities on the consolidated balance sheets. Accounts Receivable, net Accounts receivable are assessed for collectibility and a reserve is established when amounts are outstanding longer than the contractual payment terms. The Company writes off accounts receivable when management deems them uncollectible. Accounts receivable are included within other assets on the consolidated balance sheets. Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Costs associated with internally developed software during the development stage, both internal expenses and those paid to third parties, are capitalized and amortized over three years. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Useful lives for purposes of computing depreciation are as follows: Years Leasehold improvements 2 - 15 Furniture and equipment 5 - 7 Computer software 3 - 5 Expenditures that materially increase the asset life are capitalized, while ordinary maintenance and repairs are charged to operations as incurred. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in earnings. Leases The Company determines if an arrangement contains a lease at contract inception and recognizes an operating lease right-of-use (“ROU”) asset and corresponding operating lease liability based on the present value of lease payments over the lease term, except leases with initial terms less than or equal to 12 months. While the operating leases may include options to extend the term, these options are not included when calculating the operating lease right-of-use asset and lease liability unless the Company is reasonably certain it will exercise such options. Most of the leases do not provide an implicit rate and, therefore, the Company determines the present value of lease payments by using the Company’s incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets. The Company’s lease agreements include both lease and non-lease components (such as common area maintenance), which are generally included in the lease and are accounted for together with the lease as a single lease component. Certain of the Company’s lease agreements permit it to sublease leased assets. Sublease income is included as a component of occupancy expense. Operating lease ROU assets are regularly reviewed for impairment under the long-lived asset impairment guidance in ASC Subtopic 360-10, Property, Plant and Equipment - Overall . Loans Eligible for Repurchase Loans eligible for repurchase represents certain mortgage loans sold pursuant to Ginnie Mae programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans and a corresponding repurchase liability in its consolidated balance sheets. The terms of the Ginnie Mae MBS program allow, but do not require, the Company to repurchase mortgage loans when the borrower has made no payments for three consecutive months. As a result of this right, the Company records the loans in loans eligible for repurchase and records a corresponding liability in liability for loans eligible for repurchase on its consolidated balance sheets. Goodwill and Other Intangible Assets Business combinations are accounted for using the acquisition method of accounting. Acquired intangible assets are recognized and reported separately from goodwill. Goodwill represents the excess cost of acquisition over the fair value of net assets acquired. Intangible assets with finite lives are amortized over their estimated lives using the straight-line method. On an annual basis, during the fourth quarter, the Company evaluates whether there has been a change in the estimated useful life or if certain impairment indicators exist. Goodwill must be allocated to reporting units and tested for impairment. Goodwill is tested for impairment at least annually and more frequently if events or circumstances, such as adverse changes in the business climate, indicate there may be justification for conducting an interim test. Impairment testing is performed at the reporting unit level. In testing goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In making this assessment, the Company considers all relevant events and circumstances. These include, but are not limited to, macroeconomic conditions, industry and market considerations and the reporting unit's overall financial performance. If the Company concludes, based on its qualitative assessment, that it is more likely than not that the fair value of the reporting unit is at least equal to its carrying amount, then the Company concludes that the goodwill of the reporting unit is not impaired and no further testing is performed. However, if the Company determines, based on its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company's consolidated financial statements include assets and liabilities that are measured based on their estimated fair values. Refer to Note 1- Description of Business and Summary of Significant Accounting Policies for information on the fair value hierarchy, valuation methodologies, and key inputs used to measure financial assets and liabilities recorded at fair value, as well as methods and assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. Financial Statement Items Measured at Fair Value on a Recurring Basis The following tables presents the Company’s assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy as of the dates indicated. December 31, 2023 Level 1 Level 2 Level 3 Total Fair value through net income: Assets: Loans held for sale $ — $ 2,132,880 $ — $ 2,132,880 Trading securities — 92,901 — 92,901 Derivative assets: Interest rate lock commitments — — 49,112 49,112 Forward sale contracts — 16,610 — 16,610 Interest rate swap futures 26,476 — — 26,476 MBS put options — 1,376 — 1,376 Servicing rights — — 1,999,763 1,999,763 Total assets at fair value $ 26,476 $ 2,243,767 $ 2,048,875 $ 4,319,118 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 1,172 $ 1,172 Forward sale contracts — 83,728 — 83,728 Put options on treasuries 62 — — 62 Servicing rights — — 14,045 14,045 Total liabilities at fair value $ 62 $ 83,728 $ 15,217 $ 99,007 December 31, 2022 Level 1 Level 2 Level 3 Total Fair value through net income: Assets: Loans held for sale $ — $ 2,373,427 $ — $ 2,373,427 Trading securities — 94,243 — 94,243 Derivative assets: Interest rate lock commitments — — 29,374 29,374 Forward sale contracts — 6,676 — 6,676 MBS put options — 3,361 — 3,361 Servicing rights — — 2,037,447 2,037,447 Total assets at fair value $ — $ 2,477,707 $ 2,066,821 $ 4,544,528 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 5,784 $ 5,784 Interest rate swap futures 7,395 — — 7,395 Forward sale contracts — 43,482 — 43,482 Put options on treasuries 10,831 — — 10,831 Servicing rights — — 12,311 12,311 Total liabilities at fair value $ 18,226 $ 43,482 $ 18,095 $ 79,803 The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Year Ended December 31, 2023 IRLCs, net Servicing Rights, net Balance at beginning of period $ 23,590 $ 2,025,136 Total net gains (losses) included in: Gain on origination and sale of loans, net: Issuances and additions 387,498 277,387 Transfers of IRLC to LHFS (275,451) — Other factors (87,697) — Change in fair value of servicing rights, net (1) — (136,118) Sales — (180,687) Balance at end of period $ 47,940 $ 1,985,718 (1) The change in unrealized gains or losses relating to servicing rights still held at December 31, 2023 amounted to a net loss of $61.1 million for the year ended December 31, 2023. Year Ended December 31, 2022 IRLCs, net Servicing Rights, net Balance at beginning of period $ 180,620 $ 1,999,402 Total net gains (losses) included in: Gain on origination and sale of loans, net: Issuances and additions 380,443 647,716 Transfers of IRLC to LHFS (377,071) — Other factors (160,402) — Change in fair value of servicing rights, net (1) — 143,169 Sales — (765,151) Balance at end of period $ 23,590 $ 2,025,136 (1) The change in unrealized gains or losses relating to servicing rights that were still held at December 31, 2022, amounted to a net gain of $710.3 million for the year ended December 31, 2022. Year Ended December 31, 2021 IRLCs, net Servicing Rights, net Balance at beginning of period $ 647,045 $ 1,124,302 Total net gains (losses) included in: Gain on origination and sale of loans, net: Issuances and additions 2,169,847 1,610,596 Transfers of IRLC to LHFS (1,969,541) — Other factors (666,731) — Change in fair value of servicing rights, net (1) — (351,767) Sales — (383,729) Balance at end of period $ 180,620 $ 1,999,402 (1) The change in unrealized gains or losses relating to servicing rights that were still held at December 31, 2021, amounted to a net gain of $1.3 billion for the year ended December 31, 2021. The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring basis: December 31, 2023 December 31, 2022 Unobservable Input Range of inputs Weighted Average (1) Range of inputs Weighted Average (1) IRLCs Pull-through rate 2.7% - 99.9% 76.7% 8.4% - 99.9% 75.3% Servicing rights Discount rate (2) 4.6% - 16.8% 6.4% 5.0% - 16.1% 6.5% Prepayment rate (2) 5.6% - 22.4% 8.1% 5.8% - 17.6% 7.2% Cost to service (per loan) $72 - $126 $90 $63 - $138 $87 (1) Weighted average inputs are based on the committed amounts for IRLCs and the UPB of the underlying loans for servicing rights. (2) The Company estimates the fair value of MSRs using an option-adjusted spread (“OAS”) model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Company’s prepayment model, and then discounts these cash flows at risk-adjusted rates. Financial Statement Items Measured at Fair Value on a Nonrecurring Basis The Company did not have any material assets or liabilities that were recorded at fair value on a non-recurring basis as of December 31, 2023 or December 31, 2022. Financial Statement Items Measured at Amortized Cost The following table presents the carrying amount and estimated fair value of financial instruments included in the consolidated financial statements that are not recorded at fair value on a recurring or nonrecurring basis. The table excludes cash and cash equivalents, restricted cash, warehouse and other lines of credit, and secured debt facilities as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value: December 31, 2023 December 31, 2022 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 989,318 $ 886,492 $ 991,822 $ 645,495 Fair value of the Company’s Senior Notes issued in October 2020 and March 2021 was estimated using quoted market prices and classified as Level 2 in the fair value hierarchy. |
LOANS HELD FOR SALE, AT FAIR VA
LOANS HELD FOR SALE, AT FAIR VALUE | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
LOANS HELD FOR SALE, AT FAIR VALUE | LOANS HELD FOR SALE, AT FAIR VALUE The following table represents the unpaid principal balance of LHFS by product type of loan as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Amount % Amount % Conforming - fixed $ 1,211,449 57 % $ 1,441,497 59 % Conforming - ARM 18,592 1 52,513 2 Government - fixed 777,860 36 815,921 34 Government - ARM 20,403 1 17,788 1 Other - residential mortgage loans 104,778 5 101,137 4 Consumer loans — — 1,774 — Total 2,133,082 100 % 2,430,630 100 % Fair value adjustment (202) (57,203) Loans held for sale, at fair value $ 2,132,880 $ 2,373,427 A summary of the changes in the balance of loans held for sale is as follows: Year Ended December 31, 2023 2022 Balance at beginning of period $ 2,373,427 $ 8,136,817 Origination and purchase of loans 22,393,729 53,094,767 Sales (23,013,399) (59,174,022) Repurchases 443,935 633,298 Principal payments (129,752) (132,322) Fair value gain (loss) 64,940 (185,111) Balance at end of period $ 2,132,880 $ 2,373,427 Gain on origination and sale of loans, net is comprised of the following components: Year Ended December 31, 2023 2022 2021 (Discount) premium from loan sales $ (135,943) $ (933,547) $ 1,882,557 Servicing rights additions 277,387 647,716 1,610,596 Unrealized losses from derivative assets and liabilities (35,430) (134,519) (308,200) Realized gains from derivative assets and liabilities 55,631 1,215,013 347,014 Discount points, rebates and lender paid costs 306,115 275,981 (206,716) Fair value gain (loss) on loans held for sale 64,940 (185,111) (104,715) Provision for loan loss obligation for loans sold (8,179) (136,993) (7,185) Total gain on origination and sale of loans, net $ 524,521 $ 748,540 $ 3,213,351 The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for LHFS. December 31, 2023 December 31, 2022 Fair value UPB Difference Fair value UPB Difference Current through 89 days delinquent $ 2,113,106 $ 2,108,125 $ 4,980 $ 2,353,732 $ 2,405,842 $ (52,110) 90+ days delinquent (1) 19,774 24,957 (5,182) 19,695 24,788 (5,093) Total $ 2,132,880 $ 2,133,082 $ (202) $ 2,373,427 $ 2,430,630 $ (57,203) ( 1 |
SERVICING RIGHTS, AT FAIR VALUE
SERVICING RIGHTS, AT FAIR VALUE | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
SERVICING RIGHTS, AT FAIR VALUE | SERVICING RIGHTS, AT FAIR VALUE Our servicing rights portfolio consists of Agency MSRs associated with mortgage loans that conform to the guidelines set forth by GSEs, Government MSRs associated with mortgage loans that are insured or guaranteed by government agencies, primarily through Ginnie Mae mortgage-backed securities, and Other MSRs consisting primarily of other non-Agency loans. The outstanding principal balance of the servicing portfolio was comprised of the following: December 31, 2023 2022 Agency $ 94,243,545 $ 93,971,606 Government 40,535,399 37,096,679 Other 10,311,255 10,102,646 Total servicing portfolio $ 145,090,199 $ 141,170,931 A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows: Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 2,025,136 $ 1,999,402 $ 1,124,302 Servicing rights additions 277,387 647,716 1,610,596 Sales proceeds, net (180,687) (765,151) (383,729) Changes in fair value: Due to changes in valuation inputs or assumptions 2,227 363,064 68,399 Due to collection/realization of cash flows (149,211) (230,449) (421,624) Realized gains on sales of servicing rights 10,866 10,554 1,458 Balance at end of period $ 1,985,718 $ 2,025,136 $ 1,999,402 During the year ended December 31, 2023, the Company sold excess servicing cash flows on Agency loans for total proceeds of $132.0 million. There were no excess servicing sales during the year ended December 31, 2022. The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations: Year Ended December 31, 2023 2022 2021 Contractual servicing fees $ 395,213 $ 423,528 $ 382,501 Late, ancillary and other fees 97,598 25,622 11,179 Servicing fee income $ 492,811 $ 449,150 $ 393,680 The following is a summary of the components of changes in fair value of servicing rights, net as reported in the Company’s consolidated statements of operations: Year Ended December 31, 2023 2022 2021 Changes in fair value: Due to changes in valuation inputs or assumptions $ 2,227 $ 363,064 $ 68,399 Due to collection/realization of cash flows (149,211) (230,449) (421,624) Realized gains (losses) on sales of servicing rights, net (1) 10,486 (3,663) (9,759) Net loss from derivatives hedging servicing rights (47,919) (323,309) (82,878) Changes in fair value of servicing rights, net $ (184,417) $ (194,357) $ (445,862) (1) Includes the provision for sold MSRs. The table below illustrates hypothetical changes in fair values of servicing rights, caused by assumed immediate changes to key assumptions that are used to determine fair value. December 31, 2023 2022 Fair value of servicing rights, net $ 1,985,718 $ 2,025,136 Change in fair value from adverse changes: Discount Rate: Increase 1% (76,862) (81,431) Increase 2% (148,438) (157,281) Cost of Servicing: Increase 10% (20,103) (19,017) Increase 20% (40,319) (38,127) Prepayment Speed: Increase 10% (22,425) (18,863) Increase 20% (44,128) (37,546) Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in servicing rights values may differ significantly from those displayed above. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivative instruments utilized by the Company primarily include interest rate lock commitments, forward sale contracts, MBS put options, put options on treasuries, and interest rate swap futures. Derivative financial instruments are recognized as assets or liabilities and are measured at fair value. The Company accounts for derivatives as free-standing derivatives and does not designate any derivative financial instruments for hedge accounting. All derivative financial instruments are recognized on the consolidated balance sheets at fair value with changes in the fair values being reported in current period earnings. The Company does not use derivative financial instruments for purposes other than in support of its risk management activities. Refer to Note 1- Description of Business, Presentation and Summary of Significant Accounting Policies and Note 2- Fair Value for further details on derivatives. The following summarizes the Company’s outstanding derivative instruments: Fair Value Notional Balance Sheet Location Asset Liability December 31, 2023: Interest rate lock commitments $ 2,007,175 Derivative asset, at fair value $ 49,112 Interest rate lock commitments 163,161 Derivative liabilities, at fair value — 1,172 Forward sale contracts 449,419 Derivative asset, at fair value 16,610 — Forward sale contracts 2,234,930 Derivative liabilities, at fair value — 83,728 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 9,730 Derivative liabilities, at fair value — 62 MBS put options 200,000 Derivative asset, at fair value 1,376 — MBS put options — Derivative liabilities, at fair value — — Interest rate swap futures 3,240 Derivative asset, at fair value 26,476 — Interest rate swap futures — Derivative liabilities, at fair value — — Total derivative financial instruments $ 93,574 $ 84,962 Fair Value Notional Balance Sheet Location Asset Liability December 31, 2022: Interest rate lock commitments $ 1,591,807 Derivative asset, at fair value $ 29,374 $ — Interest rate lock commitments 622,706 Derivative liabilities, at fair value — 5,784 Forward sale contracts 309,809 Derivative asset, at fair value 6,676 — Forward sale contracts 2,963,685 Derivative liabilities, at fair value — 43,482 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 8,050 Derivative liabilities, at fair value — 10,831 MBS put options 400,000 Derivative asset, at fair value 3,361 — MBS put options — Derivative liabilities, at fair value — — Interest rate swap futures — Derivative asset, at fair value — — Interest rate swap futures 211 Derivative liabilities, at fair value — 7,395 Total derivative financial instruments $ 39,411 $ 67,492 Because many of the Company’s current derivative agreements are not exchange-traded, the Company is exposed to credit loss in the event of nonperformance by the counterparty to the agreements. The Company controls this risk through credit monitoring procedures including financial analysis, dollar limits and other monitoring procedures. The notional amount of the contracts does not represent the Company’s exposure to credit loss. The following summarizes the realized and unrealized net gains or losses on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included: Year Ended December 31, Derivative instrument Statements of Operations Location 2023 2022 2021 Interest rate lock commitments, net Gain on origination and sale of loans, net $ 24,350 $ (157,030) $ (466,425) Forward sale contracts Gain on origination and sale of loans, net 6,958 1,195,708 540,811 Interest rate swap futures Gain on origination and sale of loans, net (31,328) (81,259) (111,300) Put options Gain on origination and sale of loans, net 20,221 123,075 75,728 Forward sale contracts Change in fair value of servicing rights, net (13,763) (114,244) (89,127) Interest rate swap futures Change in fair value of servicing rights, net (22,572) (201,259) 9,071 Put options Change in fair value of servicing rights, net (11,584) (7,806) (2,822) Total realized and unrealized losses on derivative financial instruments $ (27,718) $ 757,185 $ (44,064) |
BALANCE SHEET NETTING
BALANCE SHEET NETTING | 12 Months Ended |
Dec. 31, 2023 | |
Offsetting [Abstract] | |
BALANCE SHEET NETTING | BALANCE SHEET NETTING The Company has entered into agreements with counterparties, which include netting arrangements whereby the counterparties are entitled to settle their positions on a net basis. In certain circumstances, the Company is required to provide certain counterparties financial instruments and cash collateral against derivative financial instruments, warehouse and other lines of credit, or debt obligations. Cash collateral is held in margin accounts and included in restricted cash on the Company's consolidated balance sheets. The table below represents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged. In circumstances where right of set off criteria is met, the related asset and liability are presented in a net position on the consolidated balance sheets. Warehouse and other lines of credit and secured debt obligations were secured by financial instruments and cash collateral with fair values that exceeded the liability amount recorded on the consolidated balance sheets as of December 31, 2023 and 2022, respectively. Refer to Note 11 – Warehouse and Other Lines of Credit for further details on cash collateral requirements. December 31, 2023 Gross amounts recognized Gross amounts offset in consolidated balance sheet Net amounts presented in consolidated balance sheet Gross amounts not offset in consolidated balance sheet Net amount Financial instruments Cash collateral Assets: Forward sale contracts $ 33,591 $ (16,981) $ 16,610 $ — $ — $ 16,610 MBS put options 1,376 — 1,376 — — 1,376 Interest rate swap futures 26,476 — 26,476 — — 26,476 Total assets $ 61,443 $ (16,981) $ 44,462 $ — $ — $ 44,462 Liabilities: Forward sale contracts $ 100,709 $ (16,981) $ 83,728 $ — $ (60,188) $ 23,540 Put options on treasuries 62 — 62 — — 62 Warehouse and other lines of credit 1,947,057 — 1,947,057 (1,947,057) — — Secured debt obligations (1) 1,287,418 — 1,287,418 (1,287,418) — — Total liabilities $ 3,335,246 $ (16,981) $ 3,318,265 $ (3,234,475) $ (60,188) $ 23,602 (1) Secured debt obligations as of December 31, 2023 included secured credit facilities and Term Notes. December 31, 2022 Gross amounts recognized Gross amounts offset in consolidated balance sheet Net amounts presented in consolidated balance sheet Gross amounts not offset in consolidated balance sheet Net amount Financial instruments Cash collateral Assets Forward sale contracts $ 39,386 $ (32,710) $ 6,676 $ — $ — $ 6,676 MBS put options 3,361 — 3,361 — — 3,361 Total assets $ 42,747 $ (32,710) $ 10,037 $ — $ — $ 10,037 Liabilities Forward sale contracts $ 76,192 $ (32,710) $ 43,482 $ — $ (36,270) $ 7,212 Put options on treasuries 10,831 — 10,831 — (10,831) — Interest rate swap futures 7,395 — 7,395 — (7,395) — Warehouse and other lines of credit 2,146,602 — 2,146,602 (2,146,602) — — Secured debt obligations (1) 1,298,853 — 1,298,853 (1,298,853) — — Total liabilities $ 3,539,873 $ (32,710) $ 3,507,163 $ (3,445,455) $ (54,496) $ 7,212 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company evaluates its involvement with entities to determine if these entities meet the definition of a VIE and whether the Company is the primary beneficiary and should consolidate the VIE. The Company did not provide any non-contractual financial support to VIEs for the years ended December 31, 2023, 2022 and 2021. Consolidated VIEs LD Holdings The Company is a holding company, with its sole material asset being its equity interest in LD Holdings. As the sole managing member of LD Holdings, the Company indirectly operates and controls all of LD Holdings’ business and affairs. LD Holdings is considered a VIE and the financial results of LD Holdings and its subsidiaries are consolidated. A portion of net earnings or loss is allocated to noncontrolling interest to reflect the entitlement of the Continuing LLC Members. Refer to Note 14 – Equity for further details. Securitization and SPEs The Company consolidates securitization facilities that finance mortgage loans held for sale, as well as SPEs established as trusts to finance mortgage servicing rights and servicing advance receivables. Assets are transferred to a securitization or trust, which issues beneficial interests collateralized by the transferred assets, entitling investors to specified cash flows. The Company may retain beneficial interests in the transferred assets and also holds conditional repurchase options specific to these securitizations, allowing it to repurchase assets from the securitization entity. The Company’s economic exposure to loss from outstanding third-party financing is generally limited to the carrying value of the assets financed. The Company has retained risks in the securitizations including customary representations and warranties. For securitization facilities, the Company, as seller, has an option to prepay and redeem outstanding classes of issued notes after a set period of time. The Company’s exposure to these entities is primarily through its role as seller, servicer, and administrator. Servicing functions include, but are not limited to, general collection activity, preparing and furnishing statements, and loss mitigation efforts including repossession and sale of collateral. The table below presents a summary of the carrying value and balance sheet classification of assets and liabilities in the Company’s consolidated securitization and SPE VIEs. December 31, December 31, Assets Loans held for sale, at fair value $ 510,080 $ 497,574 Restricted cash 2,704 6,735 Servicing rights, at fair value 617,878 544,729 Other assets 84,524 54,887 Total $ 1,215,186 $ 1,103,925 Liabilities Warehouse and other lines of credit $ 500,000 $ 500,000 Debt obligations, net: MSR Facilities 174,750 116,874 Servicing advance facilities 27,939 48,484 Term notes 200,000 199,666 Total $ 902,689 $ 865,024 Non-Consolidated VIEs The nature, purpose, and activities of non-consolidated VIEs currently encompass the Company’s investments in retained interests from securitizations and joint ventures. The table below presents a summary of the nonconsolidated VIEs for which the Company holds variable interests. December 31, 2023 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 92,901 $ — $ 92,901 $ 2,200,406 Investments in joint ventures 20,363 — 20,363 27,171 Total $ 113,264 $ — $ 113,264 December 31, 2022 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 94,243 $ — $ 94,243 $ 2,309,739 Investments in joint ventures 20,410 — 20,410 38,682 Total $ 114,653 $ — $ 114,653 Retained interests In 2022 and 2021, the Company completed the sale and securitization of non-owner occupied residential mortgage loans. Pursuant to the credit risk retention requirements, the Company, as sponsor, is required to retain at least a 5% economic interest in the credit risk of the assets collateralizing the securitization transactions. The retained interests represent a variable interest in the securitizations. The Company determined it was not the primary beneficiary of the VIE. The Company’s continuing involvement is limited to customary servicing obligations as servicer and servicing administrator associated with retained servicing rights and the receipt of principal and interest associated with the retained interests. The investors and the securitization trusts have no recourse to the Company’s assets; holders of the securities issued by each trust can look only to the loans owned by the trust for payment. The retained interests held by the Company are subject principally to the credit risk stemming from the underlying transferred loans. The securitization trusts used to effect these transactions are variable interest entities that the Company does not consolidate. The Company remeasures the carrying value of its retained interests at each reporting date to reflect their current fair value which is included in trading securities, at fair value on the consolidated balance sheets, with corresponding gains or losses included in other income on the consolidated statements of operations. As of December 31, 2023, the remaining principal balance of loans transferred to these securitization trusts was $2.2 billion of which $9.0 million was 90 days or more past due. Investments in joint ventures |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: December 31, 2023 2022 Furniture and equipment $ 91,061 $ 93,818 Computer software 6,759 6,837 Software development 165,119 147,424 Leasehold improvements 29,180 29,150 Work in progress 13,042 12,929 Property and equipment 305,161 290,158 Accumulated depreciation and amortization (234,352) (197,269) Property and equipment, net $ 70,809 $ 92,889 The Company recorded $41.3 million, $42.0 million and $35.0 million of depreciation and amortization expense related to property and equipment for the years ended December 31, 2023, 2022 and 2021, respectively. During the years ended December 31, 2023, 2022 and 2021 charges of $1.4 million, $12.6 million and zero, respectively, were recorded for losses on fixed assets due to branch consolidation efforts. These charges are included in general and administrative expenses on the consolidated statements of operations. Capitalized computer software development costs consist of the following: December 31, 2023 2022 Cost $ 165,119 $ 147,424 Accumulated amortization (122,861) (95,777) Software development, net $ 42,258 $ 51,647 The Company recorded $27.7 million, $20.4 million and $11.5 million of amortization expense related to software development for the years ended December 31, 2023, 2022 and 2021, respectively. Future computer software development amortization for the remaining years: Year ending December 31, 2024 $ 25,615 2025 13,990 2026 2,653 Total $ 42,258 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company entered into operating leases related to its corporate headquarters and support, sales, and processing offices which expire at various dates through 2029. The Company’s operating lease agreements have remaining terms ranging from less than one year to five years. Certain of these operating lease agreements include options to extend the original term. The Company’s operating lease agreements do not require the Company to make variable lease payments. Year Ended December 31, 2023 2022 2021 Lease expense: Operating leases $ 16,864 $ 24,961 $ 28,322 Short-term leases 1,739 2,373 747 Sublease income (1,774) (187) (1,049) Lease expense, net included in occupancy expense $ 16,829 $ 27,147 $ 28,020 Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 23,975 $ 31,350 Right-of-use assets obtained in exchange for lease obligations: New leases entered into during the year 8,852 16,922 December 31, December 31, 2022 Period-end: Operating leases: Weighted average remaining lease term (years) 3.3 3.6 Weighted average discount rate 6.6 % 5.7 % The following is a schedule of future minimum lease payments for operating leases with initial terms in excess of one year as of December 31, 2023: Year ending December 31, 2024 $ 19,201 2025 14,456 2026 10,017 2027 8,507 2028 2,816 Thereafter 116 Total operating lease payments 55,113 Less: Imputed interest (5,921) Operating lease liability $ 49,192 During the year ended December 31, 2023, impairment charges of $0.9 million were recorded for leases exited during the year. The impairment charges are included in general and administrative expense on the consolidated statements of operations. As of December 31, 2023, the Company had three operating leases that had not yet commenced with aggregate undiscounted required payments of $0.4 million. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
OTHER ASSETS | Other Assets Other assets consists of the following: December 31, 2023 2022 Servicing advances $ 118,414 $ 98,704 Margin call receivable 60,188 36,270 Prepaid expenses 27,476 41,317 Loan related receivables 9,408 18,858 Joint ventures 7,726 15,843 Servicing related receivables 4,610 61,216 Income tax receivable 2,611 10,725 Deferred tax asset 1,976 941 Other 21,689 17,387 Total $ 254,098 $ 301,261 There was $3.1 million and $2.8 million in allowance for credit losses at December 31, 2023 and 2022, respectively. There was $0.4 million, $0.4 million and $1.5 million of accounts receivable write-offs during the years ended December 31, 2023, 2022 and 2021, respectively. |
WAREHOUSE AND OTHER LINES OF CR
WAREHOUSE AND OTHER LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
WAREHOUSE AND OTHER LINES OF CREDIT | WAREHOUSE AND OTHER LINES OF CREDIT At December 31, 2023, the Company was a party to eight revolving lines of credit with lenders providing an aggregate $3.1 billion of warehouse and securitization facilities. The facilities are used to fund, and are secured by residential mortgage loans held for sale. The facilities are repaid using proceeds from the sale of loans. Interest is generally payable monthly in arrears or on the repurchase date of a loan, and outstanding principal is payable upon receipt of loan sale proceeds or on the repurchase date of a loan. Outstanding principal related to a particular loan must also be repaid after the expiration of a contractual period of time or, if applicable, upon the occurrence of certain events of default with respect to the underlying loan. Interest expense is recorded to interest expense on the consolidated statements of operations. The base interest rates on the facilities bear interest at the secured overnight financing rate (“SOFR”), or other alternative base rate, plus a margin. Some of the facilities carry additional fees charged on the total line amount, commitment fees charged on the committed portion of the line, and non-usage fees charged when monthly usage falls below a certain utilization percentage. As of December 31, 2023, the interest rate was comprised of the applicable base rate plus a spread ranging from 1.37% to 2.25%. The base interest rate for warehouse facilities is subject to increase based upon the characteristics of the underlying loans collateralizing the lines of credit, including, but not limited to product type and number of days held for sale. The warehouse lines are scheduled to expire through 2024. As of December 31, 2023 there was one securitization facility with an original three year term scheduled to expire in 2024. All warehouse lines and other lines of credit are subject to renewal based on an annual credit review conducted by the lender. Certain warehouse line lenders require the Company to maintain cash accounts with minimum required balances at all times. As of December 31, 2023 and December 31, 2022, the Company had posted a total of $7.0 million and $11.0 million, restricted cash as collateral with warehouse lenders and securitization facilities of which $4.3 million and $4.3 million were the minimum required balances. Under the terms of these warehouse lines, the Company is required to maintain various covenants. As of December 31, 2023, the Company was in compliance with covenants under the warehouse lines. Securitization Facilities In October 2021, the Company issued notes and a class of owner trust certificates through an additional securitization facility (“2021-3 Securitization Facility”) backed by a revolving warehouse line of credit. The 2021-3 Securitization Facility is secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans originated in accordance with the criteria of Fannie Mae and Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2021-3 Securitization Facility issued $500.0 million in notes that bear interest at SOFR, plus a margin. The 2021-3 Securitization Facility will terminate on the earlier of (i) the three-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full, and (iii) the date of the occurrence and continuance of an event of default. The following table presents information on warehouse and other lines of credit and the outstanding balance as of December 31, 2023 and 2022: Outstanding Balance Committed Uncommitted Total Expiration December 31, December 31, Facility 1 (1) $ 400,000 $ 350,000 $ 750,000 10/25/2024 $ 391,418 $ 382,098 Facility 2 (2) 1,000 299,000 300,000 9/23/2024 155,676 236,144 Facility 3 — 300,000 300,000 4/16/2024 175,348 177,900 Facility 4 — 175,000 175,000 12/26/2024 127,052 202,548 Facility 5 (2) — 200,000 200,000 N/A 1,638 — Facility 6 (2) — 600,000 600,000 9/27/2024 359,401 180,273 Facility 7 — — — 11/1/2023 — 295,064 Facility 8 — 300,000 300,000 9/20/2024 236,524 172,575 Facility 9 (3) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 901,000 $ 2,224,000 $ 3,125,000 $ 1,947,057 $ 2,146,602 (1) The total facility is available both to fund loan originations and also provide liquidity under a gestation facility to finance recently sold MBS up to the MBS settlement date. (2) In addition to the warehouse line, the lender provides a separate gestation facility to finance recently sold MBS up to the MBS settlement date. (3) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. The following table presents certain information on warehouse and other lines of credit: Year Ended December 31, 2023 2022 2021 Maximum outstanding balance during the period $ 2,280,996 $ 7,672,559 $ 9,180,276 Average balance outstanding during the period 1,704,717 4,127,822 8,149,855 Collateral pledged (loans held for sale) 2,065,878 2,214,656 7,815,347 Weighted average interest rate during the period 7.04 % 2.97 % 2.21 % The following table presents the outstanding debt as of December 31, 2023 and 2022: December 31, 2023 2022 Secured debt obligations, net: Secured credit facilities: MSR facilities $ 980,760 $ 963,834 Securities financing facilities 75,994 85,513 Servicing advance facilities 27,939 48,484 Total secured credit facilities 1,084,693 1,097,831 Term Notes 200,000 199,666 Total secured debt obligations, net 1,284,693 1,297,497 Unsecured debt obligations, net: Senior Notes 989,318 991,822 Total debt obligations, net $ 2,274,011 $ 2,289,319 Certain of the Company’s secured debt obligations require the Company to satisfy financial covenants, including minimum levels of profitability, tangible net worth, liquidity, and maximum levels of consolidated leverage. The Company obtained amendments relating to certain profitability covenants. As a result, the Company was in compliance with all such financial covenants as of December 31, 2023. Secured Credit Facilities Secured credit facilities are revolving facilities collateralized by MSRs, trading securities, and servicing advances. MSR Facilities In December 2021, the Company entered into a credit facility agreement. The agreement was amended in December 2023 to provide for $540.0 million in borrowing capacity, with an option to increase up to $600.0 million upon mutual consent, available to the Company. The facility is secured by Freddie Mac mortgage servicing rights with a fair value of $716.8 million as of December 31, 2023. The facility bears interest at SOFR, plus a margin per annum and matures in December 2024. At December 31, 2023, there was $465.1 million outstanding on this facility and $2.5 million in unamortized deferred financing costs. In January 2022, the Company entered into a credit facility agreement which provides $500.0 million in borrowing capacity. The facility is secured by Fannie Mae mortgage servicing rights with a fair value of $596.8 million as of December 31, 2023. The facility bears interest at SOFR, plus a margin per annum and matures in January 2025. At December 31, 2023, there was $343.4 million outstanding on this facility. In August 2017, the Company established the GMSR Trust to finance its Ginnie Mae mortgage servicing rights through the issuance of variable funding notes or term notes. Both are secured by participation certificates representing beneficial interests in Ginnie Mae mortgage servicing rights held by the GMSR Trust, with a fair value of $617.9 million as of December 31, 2023. In November 2023, the agreement was amended to provide for $175.0 million in borrowing capacity for the variable funding notes. The variable funding notes accrue interest at SOFR plus a margin per annum. As of December 31, 2023, the Company had $175.0 million outstanding variable funding notes and $0.3 million in unamortized deferred financing costs. The variable funding notes were scheduled to mature in January 2024. In January 2024, the Company secured a new facility to issue variable funding notes, providing $250.0 million in borrowing capacity and extending their maturity to January 2025. Securities Financing Facilities The Company has entered into master repurchase agreements to finance retained interest securities related to its securitizations. The securities financing facilities have an advance rate between 70% and 85% based on classes of the securities and accrue interest at a rate of 90-day SOFR, plus a margin. The securities financing facilities are secured by the trading securities, which represent retained interests in the credit risk of the assets collateralizing certain securitization transactions. As of December 31, 2023, the trading securities had a fair value of $92.9 million on the consolidated balance sheets and there were $76.0 million in securities financing facilities outstanding. Servicing Advance Facilities In September 2020, the Company, through its indirect-wholly owned subsidiary loanDepot Agency Advance Receivables Trust (the “Advance Receivables Trust”), entered into a variable funding note facility for the financing of servicing advance receivables with respect to residential mortgage loans serviced by it on behalf of Fannie Mae and Freddie Mac. Pursuant to an indenture, the Advance Receivables Trust can issue up to $100.0 million in variable funding notes (the “2020-VF1 Notes”). The 2020-VF1 Notes accrue interest at SOFR, plus a margin per annum. In September 2023 the 2020-VF1 Notes were extended to mature in September 2024 (unless earlier redeemed in accordance with their terms). At December 31, 2023, there was $27.9 million in 2020-VF1 Notes outstanding. In November 2021, the Company, through the GMSR Trust, issued variable funding notes secured by principal and interest advance receivables and servicing advance receivables related to residential mortgage loans serviced on behalf of Ginnie Mae. These variable funding notes bear interest at SOFR plus a margin per annum. As of December 31, 2023, there was no balance outstanding on these variable funding notes. Term Notes In October 2018, the Company, through the GMSR Trust issued the Series 2018-GT1 Term Notes (“Term Notes”). In September 2023, the Term Notes were extended to mature in October 2025 and accrue interest at SOFR plus a margin per annum. At December 31, 2023, there was $200.0 million in Term Notes outstanding and no unamortized deferred financing costs. Senior Notes In October 2020, the Company issued $500.0 million in aggregate principal amount of 6.50% unsecured senior notes due 2025, (the “2025 Senior Notes”). The 2025 Senior Notes will mature on November 1, 2025. Interest on the 2025 Senior Notes accrues at a rate of 6.50% per annum, payable semi-annually in arrears on May 1 and November 1 of each year. The Company may redeem the 2025 Senior Notes, in whole or in part, at various redemption prices. During the year ended December 31, 2023, the Company repurchased $2.3 million of 2025 Senior Notes at an average purchase price of 79.78% of par, which resulted in a $0.4 million gain on extinguishment of debt. Gain on extinguishment of debt is recorded in other interest expense on the consolidated statement of operations. As of December 31, 2023, there were $497.8 million in 2025 Senior Notes outstanding and $3.3 million in unamortized deferred financing costs. In March 2021, the Company issued $600.0 million in aggregate principal amount of 6.125% unsecured senior notes due 2028 (the “2028 Senior Notes” and together with the 2025 Senior Notes, the "Senior Notes"). The 2028 Senior Notes will mature on April 1, 2028. Interest on the 2028 Senior Notes accrues at a rate of 6.125% per annum, payable semi-annually in arrears on April 1 and October 1 of each year. At any time prior to April 1, 2024, the Company may redeem the 2028 Senior Notes at 100% of the principal, plus accrued interest and a make-whole premium. Up to 40% of the principal may be redeemed before April 1, 2024 with proceeds from certain equity offerings at a price of 106.125% of the principal plus accrued interest. After April 1, 2024 the Company may redeem the 2028 Senior Notes at various redemption prices. During the year ended December 31, 2023, the Company repurchased $3.1 million of 2028 Senior Notes at a purchase price of 58.55% of par, which resulted in a $1.3 million gain on extinguishment of debt. During the year ended December 31, 2022, the Company repurchased $97.5 million of 2028 Senior Notes at an average purchase price of 87.90% of par, which resulted in a $10.5 million gain on extinguishment of debt. As of December 31, 2023, there were $499.4 million in 2028 Senior Notes outstanding and $4.5 million in unamortized deferred financing costs. Interest Expense |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | WAREHOUSE AND OTHER LINES OF CREDIT At December 31, 2023, the Company was a party to eight revolving lines of credit with lenders providing an aggregate $3.1 billion of warehouse and securitization facilities. The facilities are used to fund, and are secured by residential mortgage loans held for sale. The facilities are repaid using proceeds from the sale of loans. Interest is generally payable monthly in arrears or on the repurchase date of a loan, and outstanding principal is payable upon receipt of loan sale proceeds or on the repurchase date of a loan. Outstanding principal related to a particular loan must also be repaid after the expiration of a contractual period of time or, if applicable, upon the occurrence of certain events of default with respect to the underlying loan. Interest expense is recorded to interest expense on the consolidated statements of operations. The base interest rates on the facilities bear interest at the secured overnight financing rate (“SOFR”), or other alternative base rate, plus a margin. Some of the facilities carry additional fees charged on the total line amount, commitment fees charged on the committed portion of the line, and non-usage fees charged when monthly usage falls below a certain utilization percentage. As of December 31, 2023, the interest rate was comprised of the applicable base rate plus a spread ranging from 1.37% to 2.25%. The base interest rate for warehouse facilities is subject to increase based upon the characteristics of the underlying loans collateralizing the lines of credit, including, but not limited to product type and number of days held for sale. The warehouse lines are scheduled to expire through 2024. As of December 31, 2023 there was one securitization facility with an original three year term scheduled to expire in 2024. All warehouse lines and other lines of credit are subject to renewal based on an annual credit review conducted by the lender. Certain warehouse line lenders require the Company to maintain cash accounts with minimum required balances at all times. As of December 31, 2023 and December 31, 2022, the Company had posted a total of $7.0 million and $11.0 million, restricted cash as collateral with warehouse lenders and securitization facilities of which $4.3 million and $4.3 million were the minimum required balances. Under the terms of these warehouse lines, the Company is required to maintain various covenants. As of December 31, 2023, the Company was in compliance with covenants under the warehouse lines. Securitization Facilities In October 2021, the Company issued notes and a class of owner trust certificates through an additional securitization facility (“2021-3 Securitization Facility”) backed by a revolving warehouse line of credit. The 2021-3 Securitization Facility is secured by newly originated, first-lien, fixed-rate or adjustable-rate, residential mortgage loans originated in accordance with the criteria of Fannie Mae and Freddie Mac for the purchase of mortgage loans or in accordance with the criteria of Ginnie Mae for the guarantee of securities backed by mortgage loans. The 2021-3 Securitization Facility issued $500.0 million in notes that bear interest at SOFR, plus a margin. The 2021-3 Securitization Facility will terminate on the earlier of (i) the three-year anniversary of the initial purchase date, (ii) the Company exercising its right to optional prepayment in full, and (iii) the date of the occurrence and continuance of an event of default. The following table presents information on warehouse and other lines of credit and the outstanding balance as of December 31, 2023 and 2022: Outstanding Balance Committed Uncommitted Total Expiration December 31, December 31, Facility 1 (1) $ 400,000 $ 350,000 $ 750,000 10/25/2024 $ 391,418 $ 382,098 Facility 2 (2) 1,000 299,000 300,000 9/23/2024 155,676 236,144 Facility 3 — 300,000 300,000 4/16/2024 175,348 177,900 Facility 4 — 175,000 175,000 12/26/2024 127,052 202,548 Facility 5 (2) — 200,000 200,000 N/A 1,638 — Facility 6 (2) — 600,000 600,000 9/27/2024 359,401 180,273 Facility 7 — — — 11/1/2023 — 295,064 Facility 8 — 300,000 300,000 9/20/2024 236,524 172,575 Facility 9 (3) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 901,000 $ 2,224,000 $ 3,125,000 $ 1,947,057 $ 2,146,602 (1) The total facility is available both to fund loan originations and also provide liquidity under a gestation facility to finance recently sold MBS up to the MBS settlement date. (2) In addition to the warehouse line, the lender provides a separate gestation facility to finance recently sold MBS up to the MBS settlement date. (3) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. The following table presents certain information on warehouse and other lines of credit: Year Ended December 31, 2023 2022 2021 Maximum outstanding balance during the period $ 2,280,996 $ 7,672,559 $ 9,180,276 Average balance outstanding during the period 1,704,717 4,127,822 8,149,855 Collateral pledged (loans held for sale) 2,065,878 2,214,656 7,815,347 Weighted average interest rate during the period 7.04 % 2.97 % 2.21 % The following table presents the outstanding debt as of December 31, 2023 and 2022: December 31, 2023 2022 Secured debt obligations, net: Secured credit facilities: MSR facilities $ 980,760 $ 963,834 Securities financing facilities 75,994 85,513 Servicing advance facilities 27,939 48,484 Total secured credit facilities 1,084,693 1,097,831 Term Notes 200,000 199,666 Total secured debt obligations, net 1,284,693 1,297,497 Unsecured debt obligations, net: Senior Notes 989,318 991,822 Total debt obligations, net $ 2,274,011 $ 2,289,319 Certain of the Company’s secured debt obligations require the Company to satisfy financial covenants, including minimum levels of profitability, tangible net worth, liquidity, and maximum levels of consolidated leverage. The Company obtained amendments relating to certain profitability covenants. As a result, the Company was in compliance with all such financial covenants as of December 31, 2023. Secured Credit Facilities Secured credit facilities are revolving facilities collateralized by MSRs, trading securities, and servicing advances. MSR Facilities In December 2021, the Company entered into a credit facility agreement. The agreement was amended in December 2023 to provide for $540.0 million in borrowing capacity, with an option to increase up to $600.0 million upon mutual consent, available to the Company. The facility is secured by Freddie Mac mortgage servicing rights with a fair value of $716.8 million as of December 31, 2023. The facility bears interest at SOFR, plus a margin per annum and matures in December 2024. At December 31, 2023, there was $465.1 million outstanding on this facility and $2.5 million in unamortized deferred financing costs. In January 2022, the Company entered into a credit facility agreement which provides $500.0 million in borrowing capacity. The facility is secured by Fannie Mae mortgage servicing rights with a fair value of $596.8 million as of December 31, 2023. The facility bears interest at SOFR, plus a margin per annum and matures in January 2025. At December 31, 2023, there was $343.4 million outstanding on this facility. In August 2017, the Company established the GMSR Trust to finance its Ginnie Mae mortgage servicing rights through the issuance of variable funding notes or term notes. Both are secured by participation certificates representing beneficial interests in Ginnie Mae mortgage servicing rights held by the GMSR Trust, with a fair value of $617.9 million as of December 31, 2023. In November 2023, the agreement was amended to provide for $175.0 million in borrowing capacity for the variable funding notes. The variable funding notes accrue interest at SOFR plus a margin per annum. As of December 31, 2023, the Company had $175.0 million outstanding variable funding notes and $0.3 million in unamortized deferred financing costs. The variable funding notes were scheduled to mature in January 2024. In January 2024, the Company secured a new facility to issue variable funding notes, providing $250.0 million in borrowing capacity and extending their maturity to January 2025. Securities Financing Facilities The Company has entered into master repurchase agreements to finance retained interest securities related to its securitizations. The securities financing facilities have an advance rate between 70% and 85% based on classes of the securities and accrue interest at a rate of 90-day SOFR, plus a margin. The securities financing facilities are secured by the trading securities, which represent retained interests in the credit risk of the assets collateralizing certain securitization transactions. As of December 31, 2023, the trading securities had a fair value of $92.9 million on the consolidated balance sheets and there were $76.0 million in securities financing facilities outstanding. Servicing Advance Facilities In September 2020, the Company, through its indirect-wholly owned subsidiary loanDepot Agency Advance Receivables Trust (the “Advance Receivables Trust”), entered into a variable funding note facility for the financing of servicing advance receivables with respect to residential mortgage loans serviced by it on behalf of Fannie Mae and Freddie Mac. Pursuant to an indenture, the Advance Receivables Trust can issue up to $100.0 million in variable funding notes (the “2020-VF1 Notes”). The 2020-VF1 Notes accrue interest at SOFR, plus a margin per annum. In September 2023 the 2020-VF1 Notes were extended to mature in September 2024 (unless earlier redeemed in accordance with their terms). At December 31, 2023, there was $27.9 million in 2020-VF1 Notes outstanding. In November 2021, the Company, through the GMSR Trust, issued variable funding notes secured by principal and interest advance receivables and servicing advance receivables related to residential mortgage loans serviced on behalf of Ginnie Mae. These variable funding notes bear interest at SOFR plus a margin per annum. As of December 31, 2023, there was no balance outstanding on these variable funding notes. Term Notes In October 2018, the Company, through the GMSR Trust issued the Series 2018-GT1 Term Notes (“Term Notes”). In September 2023, the Term Notes were extended to mature in October 2025 and accrue interest at SOFR plus a margin per annum. At December 31, 2023, there was $200.0 million in Term Notes outstanding and no unamortized deferred financing costs. Senior Notes In October 2020, the Company issued $500.0 million in aggregate principal amount of 6.50% unsecured senior notes due 2025, (the “2025 Senior Notes”). The 2025 Senior Notes will mature on November 1, 2025. Interest on the 2025 Senior Notes accrues at a rate of 6.50% per annum, payable semi-annually in arrears on May 1 and November 1 of each year. The Company may redeem the 2025 Senior Notes, in whole or in part, at various redemption prices. During the year ended December 31, 2023, the Company repurchased $2.3 million of 2025 Senior Notes at an average purchase price of 79.78% of par, which resulted in a $0.4 million gain on extinguishment of debt. Gain on extinguishment of debt is recorded in other interest expense on the consolidated statement of operations. As of December 31, 2023, there were $497.8 million in 2025 Senior Notes outstanding and $3.3 million in unamortized deferred financing costs. In March 2021, the Company issued $600.0 million in aggregate principal amount of 6.125% unsecured senior notes due 2028 (the “2028 Senior Notes” and together with the 2025 Senior Notes, the "Senior Notes"). The 2028 Senior Notes will mature on April 1, 2028. Interest on the 2028 Senior Notes accrues at a rate of 6.125% per annum, payable semi-annually in arrears on April 1 and October 1 of each year. At any time prior to April 1, 2024, the Company may redeem the 2028 Senior Notes at 100% of the principal, plus accrued interest and a make-whole premium. Up to 40% of the principal may be redeemed before April 1, 2024 with proceeds from certain equity offerings at a price of 106.125% of the principal plus accrued interest. After April 1, 2024 the Company may redeem the 2028 Senior Notes at various redemption prices. During the year ended December 31, 2023, the Company repurchased $3.1 million of 2028 Senior Notes at a purchase price of 58.55% of par, which resulted in a $1.3 million gain on extinguishment of debt. During the year ended December 31, 2022, the Company repurchased $97.5 million of 2028 Senior Notes at an average purchase price of 87.90% of par, which resulted in a $10.5 million gain on extinguishment of debt. As of December 31, 2023, there were $499.4 million in 2028 Senior Notes outstanding and $4.5 million in unamortized deferred financing costs. Interest Expense |
ACCOUNTS PAYABLE, ACCRUED EXPEN
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES Accounts payable, accrued expenses, and other liabilities consist of the following: December 31, 2023 2022 Accounts payable $ 108,642 $ 139,714 Deferred tax liability 80,171 122,404 Loan loss obligation for sold loans 31,980 70,797 Accrued compensation and benefits 54,084 52,759 TRA liability 57,258 50,730 Joint ventures 15,602 25,619 Servicing rights, at fair value 14,045 12,311 Dividends and dividend equivalents payable 2,919 7,130 Accrued pricing adjustments on sold loans 831 3,167 Income tax payable 943 — Other 13,496 4,065 Total $ 379,971 $ 488,696 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
EQUITY | EQUITY The Company consolidates the financial results of LD Holdings and reports noncontrolling interest related to the interests held by the Continuing LLC Members. The noncontrolling interest of $351.3 million and $488.0 million as of December 31, 2023 and December 31, 2022, respectively, represented the economic interest in LD Holdings held by the Continuing LLC Members. The Continuing LLC Members have the right to exchange one Holdco Unit and one share of Class B common stock or Class C common stock, as applicable, together for cash or one share of Class A common stock at the Company’s election, subject to customary conversion rate adjustments for stock splits, stock dividends, and reclassifications. As Continuing LLC Members convert shares, noncontrolling interest is adjusted to proportionately reduce the economic interest in LD Holdings with an offset to additional paid-in-capital on the consolidated statements of equity. The following table summarizes the ownership of LD Holdings. As of December 31, 2023 2022 Holding Member Interests: Holdco Units Ownership Percentage Holdco Units Ownership Percentage loanDepot, Inc. 181,054,423 56.18% 169,523,682 53.78% Continuing LLC Members 141,234,529 43.82% 145,693,119 46.22% Total 322,288,952 100.00% 315,216,801 100.00% |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the calculation of basic and diluted earnings (loss) per share for Class A common stock and Class D common stock: For the year ended December 31, 2023 2022 2021 Class A Class D Total Class A Class D Total Class A Class D Total Net (loss) income allocated to common stockholders $ (49,042) $ (61,100) $ (110,142) $ (103,026) $ (169,994) $ (273,020) $ 13,998 $ 99,526 $ 113,524 Weighted average shares - basic 77,879,392 97,026,671 174,906,063 58,879,239 97,151,111 156,030,350 16,029,314 113,969,580 129,998,894 (Loss) earnings per share: Basic $ (0.63) $ (0.63) $ (0.63) $ (1.75) $ (1.75) $ (1.75) $ 0.87 $ 0.87 $ 0.87 Diluted $ (0.63) $ (0.63) $ (0.63) $ (1.75) $ (1.75) $ (1.75) $ 0.87 $ 0.87 $ 0.87 There was no Class B common stock outstanding for any periods presented. The potential dilutive effect of the exchange of Class C common stock for Class A common stock is evaluated under the if-converted method. Reallocation of net income or loss attributable to the dilutive impact of the exchange of Class C common stock for Class A common stock was tax-effected using the combined federal and state rate (less federal benefit) of 26.2%, 27.4%, and 26.0% for the years ended December 31, 2023, 2022, and 2021, respectively. The potential dilutive effect of stock options, restricted stock units, and ESPP shares is evaluated under the treasury stock method. The following table summarizes the shares that were anti-dilutive for the periods and excluded from the computation of diluted earnings or loss per share. For the year ended December 31, 2023 2022 2021 Class C common stock 147,789,060 163,541,101 192,465,222 Stock options, restricted stock units, ESPP shares (1) 16,919,589 14,278,795 1,192,211 Total 164,708,649 177,819,896 193,657,433 (1) |
COMPENSATION PLANS
COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
COMPENSATION PLANS | COMPENSATION PLANS Stock -Based Compensation The Company’s 2021 Plan and 2022 Plan provide for the grant of incentive and non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights of the Company’s Class A common stock. Options to purchase shares of the Company’s Class A common stock generally vest over predetermined periods and expire ten years after the date of grant. Service-based restricted stock units of the Company’s Class A common stock generally vest over predetermined periods, typically two two The Company also had an ESPP Plan which allowed eligible employees to purchase shares of the Company's Class A common stock at 85% of the lower of the fair market value on the effective date of the subscription or the date of purchase. Under the ESPP, employees could authorize the Company to withhold up to 10% of their compensation for common stock purchases, subject to certain limitations. During the first quarter of 2024, the Company discontinued the ESPP Plan. Prior to the IPO, the Company’s 2009 Incentive Equity Plan, 2012 Incentive Equity Plan, and 2015 Incentive Equity Plan (collectively, the “Plans”) provided for the granting of Class Z, Class Y, Class X, and Class W Common Units of LD Holdings to employees, managers, consultants, and advisors of the Company and its subsidiaries. Participants that received grants or purchased Class Z, Class Y, Class X, or Class W Common Units of LD Holdings pursuant to the Plans were required to become a party to the Limited Liability Company Agreement. As part of the IPO and reorganization any outstanding units were equitably adjusted and replaced with a single new class of LLC Units that were exchanged on a one-for-one basis for Holdco Units. No further awards will be granted under the Plans as both the Plans and LLC Agreement were terminated. The stock-based compensation expense recognized on all share-based awards was $22.0 million, $20.6 million, and $67.1 million, for the years ended December 31, 2023, 2022, and 2021, respectively. As of December 31, 2023, there was $37.9 million of unrecognized compensation related to all unvested stock options, restricted stock units, and employee stock purchase subscriptions which will be amortized over the weighted-average remaining requisite service period of 1.73 years. The fair value of each option and ESPP subscription is estimated on the date of grant using the Black-Scholes option valuation model. The risk-free interest rate is estimated using term commensurate United States Treasury yields. The expected life of option awards is estimated from the vesting period. Since the Company does not have an extended history of actual exercises, the Company has estimated the expected life using a simplified method which calculates the expected term as the average of the time-to-vesting and the contractual life of the awards. The expected volatility was based on the historical and implied volatility of a public peer group of Companies’ stock price and options in the most recent period that was equal to, as available, the expected term of the unit grants that were being valued. The Black-Scholes option pricing model was used with the following weighted-average assumptions for options granted. There were no options granted prior to 2022. For the year ended December 31, 2023 2022 Average risk-free interest rate 4.19% 3.69% Expected dividend yield N/A N/A Expected volatility 62% 70% Expected life 5.74 years 5.61 years Fair value per share $1.25 $1.10 The Black-Scholes option pricing model was used with the following weighted-average assumptions for ESPP subscriptions. For the year ended December 31, 2023 2022 Average risk-free interest rate 4.61% 3.77% Expected dividend yield N/A N/A Expected volatility 64% 70% Expected life 0.50 years 0.50 years Fair value per share $1.75 $1.60 The fair value of market-based restricted stock units was determined using a Monte Carlo simulation model, which uses multiple input variables to determine the probability of satisfying the market condition requirements. The following weighted-average assumptions were used to determine the fair value of market-based restricted stock units. There were no market-based restricted stock units granted prior to 2022. For the year ended December 31, 2023 2022 Average risk-free interest rate 4.37% 3.20% Expected volatility 62% 70% Stock option activity during the year ended December 31, 2023 under the 2022 Plan and 2021 Plan was as follows: Shares Weighted Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 31, 2022 7,000,000 $ 1.73 5.6 years $ 480 Granted 350,000 $ 2.09 Forfeited/Cancelled (2,000,000) $ 1.57 Outstanding as of December 31, 2023 5,350,000 $ 1.82 4.9 years 9,102 Exercisable as of December 31, 2023 4,250,000 1.64 4.2 years 8,000 Vested and Expected to Vest as of December 31, 2023 1,100,000 $ 2.52 7.6 years 1,102 The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. Restricted stock unit activity during the year ended December 31, 2023 under the 2022 Plan and 2021 Plan was as follows: Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2022 25,103,600 $ 3.43 Granted 6,371,638 2.21 Vested (4,738,693) 3.63 Forfeited/Cancelled (5,297,726) 3.63 Unvested as of December 31, 2023 21,438,819 2.97 Restricted stock unit activity during the year ended December 31, 2023 for Holdco Units was as follows: Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2022 5,744,200 $ 0.50 Vested (2,978,054) 0.50 Forfeited/Cancelled (564,274) 0.50 Unvested as of December 31, 2023 2,201,872 0.50 401(k) Plan The Company’s employees are eligible to participate in a defined contribution plan (“401(k) Plan”). Effective July 2023, the Company reinstated its matching of 50% of participant contributions, up to 6% of each participant’s total eligible gross compensation, after temporarily suspending the program in October 2022. Matching contributions totaled approximately $2.7 million, $12.9 million and $25.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table details the Company’s provision for income taxes: Year Ended December 31, 2023 2022 2021 Current Federal $ 240 $ (162) $ 8,936 State 139 846 3,120 Total current 379 684 12,056 Deferred Federal (27,512) (66,624) 26,623 State (15,663) (13,652) 4,692 Total deferred (43,175) (80,276) 31,315 Total (benefit) provision for income taxes $ (42,796) $ (79,592) $ 43,371 The following table is a reconciliation of the estimated provision for income taxes at statutory rates to the provision for income taxes at the Company’s effective tax rate: Year Ended December 31, 2023 2022 2021 Federal income tax at statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes (net of federal benefit) 2.8 3.0 0.9 Non-controlling interests (9.5) (10.3) (16.2) Goodwill impairment — (0.6) — State rate change 1.9 (1.5) — Change in valuation allowance 0.1 (0.1) — Other, net (0.9) — 0.8 Effective income tax rate 15.4 % 11.5 % 6.5 % The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to income passed through to noncontrolling interests. Prior to the IPO, income taxes for LD Holdings at the consolidated level were primarily federal, state, and local taxes for ACT, a C Corporation. Subsequent to the IPO, the Company became a C Corporation subject to federal, state, and local income taxes with respect to its share of net taxable income of LD Holdings. Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: December 31, 2023 2022 Deferred tax assets: Accrued compensation $ 16 $ 41 Net operating loss 87,978 70,010 Tax credits 421 447 Depreciation 8 7 Acquired intangible assets 157 — Charitable contributions carryover 83 — Gross deferred tax assets before valuation allowance 88,663 70,505 Valuation allowance (314) (386) Net deferred tax assets 88,349 70,119 Deferred tax liabilities: Outside basis difference 166,544 191,437 Acquired intangible assets — 145 Total deferred tax liabilities 166,544 191,582 Net deferred tax liabilities $ (78,195) $ (121,463) Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. The deferred tax liability as of December 31, 2023 relates to temporary outside basis differences in the book basis as compared to the tax basis of loanDepot, Inc.’s investment in LD Holdings, net of tax benefits from future deductions for payments made under the TRA as a result of the offering transaction. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and the Company’s effective tax rate in the future. Deferred income taxes are measured using the applicable tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on the tax rates that have been enacted at the reporting date. The Company measured its deferred tax assets and liabilities at December 31, 2023 and 2022 using the combined federal and state rate (less federal benefit) of 26.2% and 27.4%, respectively. The Company establishes a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. In determining the need for a valuation allowance, the Company considered all negative and positive evidence. As of December 31, 2023, the Company established a valuation allowance on tax credits that have a limited carryforward period and may expire prior to the Company being able to utilize them. The Company did not establish a valuation allowance for the remaining deferred tax assets as the Company believes it is more-likely-than not that the Company will realize the benefits of the deferred tax assets. The Company recognized a TRA liability of $57.3 million and $50.7 million as of December 31, 2023 and 2022, respectively, which represents the Company’s estimate of the aggregate amount that it will pay under the TRA as a result of the offering transaction, refer to Note 19- Commitments and Contingencies, for further information on the TRA liability. Uncertain tax positions relate to various federal and state income tax matters. The income tax returns for 2019-2023 are subject to examination by the relevant taxing authorities. There was no interest or penalties related to uncertain tax positions for the years ended December 31, 2023, 2022, and 2021, respectively. A reconciliation of the beginning and ending amount of uncertain tax positions is as follows: Year Ended December 31, 2023 2022 2021 Beginning balance $ 497 $ 654 $ — Increases related to positions taken during prior years — — 540 Increases related to positions taken during the current year — — 114 Increases related to positions settled with tax authorities 212 — — Decreases due to a lapse of applicable statute of limitations (70) (157) — Ending balance $ 639 $ 497 $ 654 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In conjunction with its joint ventures, the Company entered into agreements to provide loan processing and administrative services to the joint ventures for which it receives fees. The Company also originates eligible mortgage loans referred by its joint ventures for which the Company pays the joint ventures a broker fee. Fees earned, costs incurred, and receivables from joint ventures were as follows: Year Ended December 31, 2023 2022 2021 Loan processing and administrative services fee income $ 21,970 $ 18,534 $ 15,023 Loan origination broker fees expense 132,345 120,392 90,266 December 31, 2023 2022 Amounts payable to joint ventures, net $ 7,876 $ 9,776 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Escrow Services In conducting its operations, the Company, through its wholly-owned subsidiaries, LDSS and ACT, routinely hold customers' assets in escrow pending completion of real estate financing transactions. These amounts are maintained in segregated bank accounts and are offset with the related liabilities resulting in no amounts reported in the accompanying consolidated balance sheets. The balances held for the Company’s customers totaled $4.3 million and $5.1 million at December 31, 2023 and 2022, respectively. Legal Proceedings The Company is a defendant in, or a party to, legal actions related to matters that arise in connection with the conduct of the Company’s business. The Company operates in a highly regulated industry and is routinely subject to examination by various governmental and regulatory agencies. The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing, and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory proceedings utilizing the latest information available. The Company accrues for estimated losses when they are probable to occur and such losses are reasonably estimable. Any estimated loss is subject to significant judgment and is based upon currently available information, a variety of assumptions, and known and unknown uncertainties. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued. Based on the Company’s current understanding of pending legal actions and proceedings, management does not believe that judgments or settlements arising from pending or threatened legal matters, individually or in the aggregate, will have a material adverse effect on the consolidated financial position, operating results or cash flows of the Company. However, unfavorable resolutions could affect the Company’s consolidated financial position, results of operations or cash flows for the years in which they are resolved. Employment Litigation On December 24, 2020, the Company received a demand letter from one of the senior members of its operations team alleging, among other things, loan origination noncompliance and various employment related claims, including hostile work environment and gender discrimination, with unspecified damages. The executive has since resigned her position with the Company. On September 21, 2021, Plaintiff filed her complaint with the Superior Court of the State of California, County of Orange and an amended complaint was filed on December 21, 2021. Following the filing of motions, on June 30, 2022, the Company filed its answer and affirmative defenses to the amended complaint. The Company deposed the Plaintiff and filed its Motion for Summary Adjudication on November 17, 2023. On January 31, 2024, the Court granted, in part, and denied, in part the Company’s motion. The Plaintiff’s initial demand was for damages in excess of $75 million. While the Company’s management believes there are substantial defenses to these allegations, defending such allegations has resulted in and will likely continue to result in substantial costs and a diversion of management’s attention and resources. Discovery in this matter is still ongoing. Securities Class Action Litigation Beginning in September 2021, two putative class action lawsuits were filed in the United States District Court for the Central District of California asserting claims under the U.S. securities laws against the Company, certain of its directors, and certain of its officers regarding certain disclosures made in connection with the Company’s IPO. The two actions were consolidated and the court appointed a lead plaintiff in May 2022. A consolidated amended complaint was filed in June 2022, which, in addition to challenging disclosures made in connection with the IPO, alleges that certain disclosures made after the IPO were false and/or misleading. The Company’s motion to dismiss was filed on August 24, 2022. On October 11, 2022, plaintiffs filed an opposition to the Company’s motion to dismiss. The Company’s reply was submitted on November 10, 2022. On January 24, 2023, the Court granted, in part, and denied, in part, the Company’s motion to dismiss. The Company’s answer to the consolidated amended complaint was filed on March 3, 2023. On June 26, 2023, the parties reached an agreement in principle to settle the action. On July 26, 2023, plaintiffs filed a motion for preliminary approval of the settlement with the Court, which the Court granted on January 5, 2024. A hearing regarding final approval of the settlement is scheduled for April 19, 2024. Stockholder Derivative Litigation Beginning in October 2021, four shareholder derivative complaints were filed in the United States District Court for the Central District of California against certain of the Company’s directors and officers, alleging, among things, that these defendants breached their fiduciary duties by causing the Company to make the disclosures being challenged in the putative securities class action described above and seeking unspecified monetary damages for the Company and that the Company make certain changes to its corporate governance. These derivative actions subsequently were consolidated into a single action (the “California Federal Action”). The California Federal Action currently is stayed. Beginning in March 2022, two substantially similar shareholder derivative complaints were filed in the United States District Court for the District of Delaware, and then were consolidated into a single action (the “Delaware Federal Action”). The Delaware Federal Action currently is stayed. Beginning in June 2023, three substantially similar shareholder derivative complaints were filed in the Delaware Court of Chancery. Two of the derivative actions were subsequently consolidated into a single action (the “Delaware Chancery Action”). The third action was voluntarily dismissed. The Company’s response to the Delaware Chancery Action is due on April 12, 2024. The Company believes there are substantial defenses to these lawsuits. The Company does not believe that a loss is probable or that the amount of loss is reasonably estimable in this matter at this time. Commitments to Extend Credit The Company enters into IRLCs with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. These commitments expose the Company to market risk if interest rates change and the loan is not economically hedged or committed to an investor. The Company is also exposed to credit loss if the loan is originated and not sold to an investor and the customer does not perform. The collateral upon extension of credit typically consists of a first deed of trust in the mortgagor’s residential property. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. Total commitments to originate loans as of December 31, 2023 and December 31, 2022 approximated $2.2 billion and $2.2 billion, respectively. These loan commitments are treated as derivatives and are carried at fair value, refer to Note 5- Derivative Financial Instruments and Hedging Activities for further information on derivatives. Loan Loss Obligation for Sold Loans When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local law. The Company establishes a loan repurchase reserve for losses associated with repurchase loan obligations if the Company breached a representation or warranty given to the loan purchaser. Additionally, the Company’s loan loss obligation for sold loans includes an estimate for losses associated with early payoffs and early payment defaults. There have been charge-offs associated with early payoffs, early payment defaults and losses related to representations, warranties, and other provisions for the years ended December 31, 2023, 2022 and 2021. The activity related to the loan loss obligation for sold loans is as follows: Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 70,797 $ 29,877 $ 33,591 Provision for loan loss obligations 8,179 136,993 7,185 Charge-offs (46,996) (96,073) (10,899) Balance at end of period $ 31,980 $ 70,797 $ 29,877 Obligation for Sold MSRs The Company recognizes sales of mortgage servicing rights as sales if title passes, substantially all risks and rewards of ownership have irrevocably passed to the purchaser, and any protection provisions retained by the Company are minor and can be reasonably estimated. If a sale is recognized and only minor protection provisions exist, a liability for the estimated obligation associated with those provisions is recorded in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. The Company establishes a reserve related to the reimbursement of the purchase price for any loans that are prepaid in full within 90 days of the MSR sale transaction. The obligation for sold MSRs was $0.5 million and $1.1 million as of December 31, 2023 and December 31, 2022, respectively TRA Liability As part of the IPO and reorganization, the Company has entered into a TRA with Parthenon Stockholders and certain Continuing LLC Members, whereby loanDepot, Inc. will be obligated to pay such parties or their permitted assignees, 85% of the amount of cash tax savings, if any, in U.S. federal, state, and local taxes that loanDepot, Inc. realizes, or is deemed to realize as a result of future tax benefits from increases in tax basis. The TRA liability is accounted for as a contingent liability with amounts accrued when deemed probable and estimable. The Company recognized a TRA liability of $57.3 million and $50.7 |
REGULATORY CAPITAL AND LIQUIDIT
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Mortgage Banking [Abstract] | |
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS | REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS The Company is subject to financial eligibility requirements including minimum capital and liquidity requirements established by HUD, FHFA for Fannie Mae and Freddie Mac seller/servicers, and Ginnie Mae for single family issuers. Failure to maintain minimum capital and liquidity requirements can result in FHFA and Ginnie Mae taking various remedial actions up to and including removing the Company's ability to sell loans to, or securitize loans with, and service loans on behalf of FHFA and Ginnie Mae. The most restrictive of the minimum net worth and capital requirements require the Company to maintain a minimum adjusted net worth balance of $405.4 million as of December 31, 2023. As of December 31, 2023, the Company was in compliance with its regulatory capital and liquidity requirements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On January 8, 2024, the Company announced that it identified a cybersecurity incident that affected certain of the Company’s systems (the “Cybersecurity Incident”). Upon detecting unauthorized activity, the Company promptly took steps to contain and remediate the Cybersecurity Incident and initiated an investigation. The Cybersecurity Incident has now been contained. Based on the Company’s investigation findings to date, during the Cybersecurity Incident, an unauthorized third party gained access to certain sensitive personal information of approximately 16.9 million individuals stored in the Company’s systems. The Company has notified applicable regulators as required and is in the process of notifying individuals in accordance with applicable law and is offering credit monitoring and identity protection services at no charge to those individuals whose sensitive personal information was identified as potentially being subject to unauthorized access. The Company believes that the cybersecurity incident will have a material impact on its first quarter 2024 results but does not expect the incident to have a material impact on full year 2024 results. Specifically, among other things, the Company expects to record in the first quarter of 2024 approximately $12 to $17 million of expenses related to the Cybersecurity Incident, net of expected insurance recovery. The Company maintains cybersecurity insurance coverage to limit its exposure to losses such as those related to the Cybersecurity Incident. While the Company will be seeking reimbursement of some of the costs, expenses, and losses stemming from the Cybersecurity Incident by submitting claims to the Company’s cybersecurity insurers, the exact timing and amount of any such reimbursements is not known at this time. Litigation and Claims To date, the Company has been named as a defendant in approximately 20 putative class action cases alleging harm from the Cybersecurity Incident and seeking various remedies, including monetary and injunctive relief. Additional lawsuits and claims related to the Cybersecurity Incident may be asserted by or on behalf of others seeking damages or other related relief, and government inquiries and/or investigations may be received or commenced. While the Company believes there are defenses to the lawsuits filed to date, the Company also believes it is reasonably possible that it could incur losses associated with these proceedings. However, at this time, it is not possible to estimate the amount of any loss or range of possible loss that might result from adverse judgments, settlements, penalties or other resolutions of such proceedings based on the early stage thereof, the fact that alleged damages have not been specified, the uncertainty as to the certification of a class or classes and the size of any certified class, as applicable, and the lack of resolution on significant factual and legal issues. The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. Losses associated with any adverse judgments, settlements, penalties or other resolutions of such proceedings could be material to the Company’s business, results of operations, financial condition or cash flows in future periods. In addition, defending against such lawsuits and allegations has resulted in and will likely continue to result in substantial costs and a diversion of management’s attention and resources. The Company has evaluated subsequent events through the date of issuance of the financial data included herein. Other than the event discussed above, there have been no subsequent events during such period that would require disclosure in this report or would be required to be recognized in the consolidated financial statements as of December 31, 2023 . |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (110,142,000) | $ (273,020,000) | $ 113,524,000 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | true | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Officer Trading Arrangement [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the quarter ended December 31, 2023, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408 of Regulation S-K), except as set forth below. Name and Title Type of Plan Date Plan Adopted/ Terminated Duration Aggregate Number of Shares to be Purchased or Sold Comments Dan Binowitz, Managing Director of Operations & Servicing Rule 10b5-1 trading arrangement Adopted November 28, 2023 March 20, 2024 – February 27, 2025 Sell up to 760,708 shares of Class A Common Stock, subject to certain conditions Jeffrey Walsh, President, LDI Mortgage Rule 10b5-1 trading arrangement Adopted December 5, 2023 April 1, 2024 – September 30, 2024 Sell up to 1,000,000 shares of Class A Common Stock, subject to certain conditions | |
Officer Trading Arrangement [Member] | Dan Binowitz [Member] | ||
Trading Arrangements, by Individual | ||
Name | Dan Binowitz | |
Title | Managing Director of Operations & Servicing | |
Adoption Date | November 28, 2023 | |
Arrangement Duration | 344 days | |
Aggregate Available | 760,708 | 760,708 |
Officer Trading Arrangement [Member] | Jeffery Walsh [Member] | ||
Trading Arrangements, by Individual | ||
Name | Jeffrey Walsh | |
Title | President, LDI Mortgage | |
Adoption Date | December 5, 2023 | |
Arrangement Duration | 182 days | |
Aggregate Available | 1,000,000 | 1,000,000 |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the FASB’s Accounting Standards Codification (“ASC” or the “Codification”). The accompanying consolidated financial statements include all of the assets, liabilities, and results of operations of the Company and consolidated variable interest entities (“VIEs”) in which the Company is the primary beneficiary. LD Holdings is considered a VIE, and the financial results of LD Holdings and its subsidiaries are consolidated with loanDepot, Inc. The consolidated net earnings or loss are allocated to noncontrolling interests to reflect the entitlement of certain members that still hold Class A holdings units (“Holdco Units”) and Class C common stock, (“Continuing LLC Members”) as of the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Other entities that the Company does not consolidate, but for which it has significant influence over operating and financial policies, are accounted for using the equity method. |
Basis of Presentation | Consolidation and Basis of Presentation The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the FASB’s Accounting Standards Codification (“ASC” or the “Codification”). The accompanying consolidated financial statements include all of the assets, liabilities, and results of operations of the Company and consolidated variable interest entities (“VIEs”) in which the Company is the primary beneficiary. LD Holdings is considered a VIE, and the financial results of LD Holdings and its subsidiaries are consolidated with loanDepot, Inc. The consolidated net earnings or loss are allocated to noncontrolling interests to reflect the entitlement of certain members that still hold Class A holdings units (“Holdco Units”) and Class C common stock, (“Continuing LLC Members”) as of the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Other entities that the Company does not consolidate, but for which it has significant influence over operating and financial policies, are accounted for using the equity method. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management has made significant estimates in certain areas, including determining the fair value of loans held for sale, servicing rights, derivative assets and derivative liabilities, trading securities, awards granted under the incentive equity plan, determining the loan loss obligation on sold loans and MSRs. Actual results could differ from those estimates. |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) VIEs are entities that have a total equity investment at risk insufficient to permit the entity to finance its activities without additional subordinated financial support, whose equity investors at risk lack the ability to control the entity's activities, or are structured with non-substantive voting rights. The Company evaluates its associations with VIEs, both at inception and when there is a change in circumstance that requires reconsideration, to determine if the Company is the primary beneficiary and consolidation is required. The determination of whether the assets and liabilities of the VIEs are consolidated or not consolidated in the consolidated balance sheets depends on the terms of the related transaction and the Company’s continuing involvement, if any, with the VIE. A primary beneficiary is defined as a variable interest holder that has a controlling financial interest. A controlling financial interest requires both: (a) the power to direct the activities that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or receive benefits of a VIE that could potentially be significant to the VIE. The Company determines whether it holds a significant variable interest in a VIE based on a consideration of both qualitative and quantitative factors regarding the nature, size, and form of its involvement with the VIE. |
Reportable Segments | Reportable Segments |
Fair Value | Fair Value Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (not in a forced transaction) between willing market participants at the measurement date. Financial instruments recorded at fair value on a recurring basis include the Company’s loans held for sale, derivative assets and derivative liabilities, servicing rights, and trading securities. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of assets and liabilities measured at fair value within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2 - Prices determined or determinable 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 other inputs. • 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. The following are methods and assumptions used to measure the Company’s financial instruments recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. Loans held for sale, at fair value- LHFS are valued at the best execution value based on the underlying characteristics of the loan, which is either based off of the to-be-announced mortgage-backed securities (“TBA MBS”) market prices, or investor pricing, based on product, note rate and term, therefore LHFS are classified as Level 2. The most significant data inputs used in this valuation include, but are not limited to, loan type, underlying loan amount, note rate, loan program, and expected sale date of the loan. The valuations for LHFS are adjusted at the loan level to consider the servicing release premium and loan level pricing adjustments specific to each loan. Changes in the fair value of the LHFS are recorded in current earnings as a component of gain on origination and sale of loans, net. Loans eligible for repurchase - Loans eligible for repurchase represents certain mortgage loans sold pursuant to Government National Mortgage Association (“Ginnie Mae”) programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans as an asset with a corresponding repurchase liability in its consolidated balance sheets. These loans are government guaranteed. The carrying value of loans eligible for repurchase approximates the fair value. Servicing rights, at fair value - The Company uses a discounted cash flow approach to estimate the fair value of servicing rights. This approach consists of projecting servicing cash flows. The inputs used in the Company's discounted cash flow model are based on market factors, which management believes are consistent with assumptions and data used by market participants valuing similar servicing rights. The key inputs used in the valuation of servicing rights include mortgage prepayment speeds, discount rates, costs to service the loan, and other inputs such as projected and actual rates of delinquencies, recapture rate, defaults and liquidations, ancillary fee income, and amounts of future servicing advances. These inputs can, and generally do, change from period to period as market conditions change. Servicing rights are classified as Level 3 as considerable judgment is required to estimate the fair values and the exercise of such judgment can significantly affect the Company's income. Derivative assets and liabilities, at fair value - Derivative assets and liabilities at fair value include interest rate lock commitments (“IRLCs”), forward sales contracts, interest rate swap futures, put options on treasuries and MBS put options. Changes in fair value of derivatives hedging IRLCs and LHFS at fair value are included in gain on origination and sale of loans, net on the consolidated statements of operations. Changes in fair value of derivatives hedging mortgage servicing rights (“MSRs”) are included in change in fair value of servicing rights, net on the consolidated statements of operations. Interest rate lock commitments- The Company enters into IRLCs with prospective borrowers, which are commitments to originate loans at a specified interest rate. The IRLCs are recorded as a component of derivative assets and liabilities on the consolidated balance sheets with changes in fair value being recorded in current earnings as a component of gain on origination and sale of loans, net. The Company estimates the fair value of the IRLCs based on quoted agency TBA MBS prices, its estimate of the fair value of the servicing rights it expects to receive in the sale of the loans, the probability that the mortgage loan will fund or be purchased (the “pull-through rate”), and estimated transformative costs. The pull-through rate is based on the Company’s own experience and is a significant unobservable input used in the fair value measurement of these instruments and results in the classification of these instruments as Level 3. Significant changes in the pull-through rate of the IRLCs, in isolation, could result in significant changes in fair value measurement. Forward sale contracts - Forward sale contracts and commitments are valued using observable market data, primarily TBA MBS pricing specific to the loan program that reflect the commitments particular product, coupon, and settlement. These derivatives are classified as Level 2. Best efforts forward delivery commitments are also entered into for certain loans at the time the borrower commitment is made. These commitments are valued using the committed price to the counterparty against the current market price of the IRLC or LHFS. Put options on treasuries and interest rate swap futures - The Company also utilizes put options and treasury futures to hedge interest rate risk. These instruments are actively traded in a liquid market and classified as Level 1 inputs. MBS put options - MBS put options are used to hedge against interest rate risk. MBS put options are traded over-the-counter with pricing inputs derived from observable market data, such as interest rates, or volatility, and are therefore classified as Level 2. Trading securities, at fair value - Trading securities, at fair value represent retained interest in the credit risk of the assets collateralizing certain securitization transactions. The fair value is based on observable market data for similar securities obtained from sources independent of the Company and therefore classified as Level 2. Warehouse lines - The Company’s warehouse lines of credit bear interest at a rate that is periodically adjusted based on a market index. The carrying value of warehouse lines of credit approximates fair value. The warehouse lines are classified as Level 2 in the fair value hierarchy. Debt obligations, net - |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. As of December 31, 2023 and 2022, all amounts recorded in cash and cash equivalents represent cash held in banks, with the exception of insignificant amounts of petty cash held on hand. Restricted Cash Cash balances that have restrictions as to the Company's ability to withdraw funds are considered restricted cash. Restricted cash is the result of the terms of the Company's warehouse lines of credit, debt obligations, and cash collateral associated with the Company’s derivative activities. In accordance with the terms of the warehouse lines of credit and debt obligations, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings. |
Loans Held for Sale, at Fair Value | Loans Held for Sale, at Fair Value Loans held for sale are accounted for at fair value, with changes in fair value recognized in current period income, to more timely reflect the value of the loans. All changes in fair value, including changes arising from the passage of time, are recognized as a component of gain on origination and sale of loans, net. Sale Recognition - The Company recognizes transfers of loans held for sale as sales when it surrenders control over the loans. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. If the sale criteria are not met, the transfer is recorded as a secured borrowing in which the assets remain on the balance sheet, and the proceeds from the transaction are recognized as a liability. Net interest income - Interest income on loans held for sale is recognized using their contractual interest rates. Interest income recognition is suspended for loans when they become 90 days delinquent, or when, in management's opinion, a full recovery of interest and principal becomes doubtful. Interest income recognition is resumed when the loan becomes contractually current. When loans are placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income on non-accrual loans is subsequently recognized only to the extent cash is received. Interest expense on warehouse and other lines of credit, debt obligations, and other types of borrowings is recognized using their contractual rates. Interest expense also includes the amortization of expenses incurred in connection with financing activities over the term of the related borrowings. Origination Income, net - Origination income, net, reflects the fees earned, net of lender credits paid from originating loans. Origination income includes loan origination fees, processing fees, underwriting fees and other fees collected from the borrower at the time of funding. Lender credits typically include rebates or concessions to borrowers for certain loan origination costs. |
Loan Loss Obligations on Loans Sold | Loan Loss Obligations on Loans Sold When the Company sells loans to investors, the risk of loss or default by the borrower is generally transferred to the investor. However, the Company is required by these investors to make certain representations relating to credit information, loan documentation and collateral. These representations and warranties may extend through the contractual life of the mortgage loan. Subsequent to the sale, if underwriting deficiencies, borrower fraud or documentation defects are discovered in individual mortgage loans, the Company may be obligated to repurchase the respective mortgage loan or indemnify the investors for any losses from borrower defaults if such deficiency or defect cannot be cured within the specified period following discovery. In the case of early loan payoffs and early defaults on certain loans, the Company may be required to repay all or a portion of the premium initially paid by the investor on loans. The estimated obligation associated with early loan payoffs and early defaults is calculated based on historical loss experience. The obligation for losses related to the representations and warranties and other provisions discussed above is recorded based upon an estimate of losses. The liability for repurchase losses is assessed quarterly. Because the Company does not service all of the loans it sells, it does not maintain nor have access to the current balances and loan performance data with respect to all of the individual loans previously sold to investors. However, the Company uses industry-available prepayment data, historical and projected loss frequency and loss severity ratios, default expectations, and expected investor repurchase demands, to estimate its exposure to losses on loans previously sold. Given current general industry trends in mortgage loans as well as housing prices, market expectations around losses related to the Company's obligations could vary significantly from the obligation recorded as of the balance sheet dates. The Company records a provision for loan losses, included in gain on origination and sale of loans, net in the consolidated statements of operations, to establish the loan repurchase reserve for sold loans which is reflected in accounts payable, accrued expenses, and other liabilities on the consolidated balance sheets. |
Securitizations | Securitizations The Company is involved in several types of securitization and financing transactions that utilize special-purpose entities (SPEs). A SPE is an entity that is designed to fulfill a specified limited need of the sponsor. The Company’s principal use of SPEs is to obtain liquidity by securitizing certain of its financial and non-financial assets. SPEs involved in the Company’s securitization and other financing transactions are often considered VIEs. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are recognized as assets or liabilities and are measured at fair value. The Company accounts for derivatives as free-standing derivatives and does not designate any derivative financial instruments for hedge accounting. All derivative financial instruments are recognized on the consolidated balance sheets at fair value with changes in the fair values being reported in current period earnings. The Company does not use derivative financial instruments for purposes other than in support of its risk management activities. Certain derivatives, loan warehouse, and repurchase agreements are subject to master netting arrangements or similar agreements. In certain circumstances the Company may elect to present certain financial assets, liabilities subject to master netting arrangements in a net position on the consolidated balance sheets. |
Servicing Rights | Servicing Rights When the Company sells a loan on a servicing-retained basis, it recognizes a servicing asset at fair value based on the present value of future cash flows generated by the servicing asset retained in the sale. The Company has made the election to carry its servicing rights at fair value. The value of servicing rights is derived from net positive cash flows associated with servicing contracts, resulting from contractual agreements between the Company and investors (or their agents) in mortgage securities and loans. Under these contracts, the Company performs loan servicing functions in exchange for fees and other remuneration. Servicing functions include collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest; holding custodial (impound) funds for the payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising real estate acquisition and disposition in settlement of loans. Change in Fair Value of Servicing Rights, net - Unrealized gains or losses resulting from changes in the fair value of servicing rights are recorded to change in fair value of servicing rights, net. Realized and unrealized hedging gains or losses used to hedge interest rate risk on servicing rights are recorded to change in fair value of servicing rights, net. Realized gains or losses from the sale of servicing rights are also included in change in fair value of servicing rights, net. Servicing Fee Income - Servicing fees are collected from the monthly payments made by mortgagors. Additionally, the company is contractually entitled to receive other forms of remuneration, including late charges, collateral reconveyance charges, loan prepayment penalties, and interest earned on funds pending remittance. The Company is required to make servicing advances on behalf of borrowers and investors to cover delinquent balances for property taxes, insurance premiums and other costs. Advances are made in accordance with servicing agreements and are recoverable upon collection from the borrower or foreclosure of the underlying loans. The Company periodically reviews the receivable for collectability and amounts are written-off when deemed uncollectible. As of December 31, 2023 and 2022, the Company had $118.4 million and $98.7 million, respectively, in outstanding servicing advances included in other assets. Sales of servicing rights are recognized when (i) the Company secures necessary approval from the investor, if required; (ii) the purchaser holds current approval as a servicer without the risk of losing that status; (iii) in cases where the sales price is financed, an adequate nonrefundable down payment is received, and the note receivable from the purchaser provides full recourse to the purchaser; and (iv) any temporary servicing performed by the Company for a brief period is compensated in accordance with a subservicing contract that ensures adequate compensation. Additionally, the Company recognizes sales of servicing rights if title passes, substantial risks and rewards of ownership have irrevocably transferred to the purchaser, and any protection provisions retained by the Company are minor and reasonably estimable. When a sale is acknowledged with only minor protection provisions, the Company accrues a liability for the estimated obligation associated with those provisions, which is included in accounts payable, accrued expenses, and other liabilities on the consolidated balance sheets. |
Accounts Receivable, net | Accounts Receivable, net |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Costs associated with internally developed software during the development stage, both internal expenses and those paid to third parties, are capitalized and amortized over three years. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Useful lives for purposes of computing depreciation are as follows: Years Leasehold improvements 2 - 15 Furniture and equipment 5 - 7 Computer software 3 - 5 Expenditures that materially increase the asset life are capitalized, while ordinary maintenance and repairs are charged to operations as incurred. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in earnings. |
Leases | Leases The Company determines if an arrangement contains a lease at contract inception and recognizes an operating lease right-of-use (“ROU”) asset and corresponding operating lease liability based on the present value of lease payments over the lease term, except leases with initial terms less than or equal to 12 months. While the operating leases may include options to extend the term, these options are not included when calculating the operating lease right-of-use asset and lease liability unless the Company is reasonably certain it will exercise such options. Most of the leases do not provide an implicit rate and, therefore, the Company determines the present value of lease payments by using the Company’s incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets. The Company’s lease agreements include both lease and non-lease components (such as common area maintenance), which are generally included in the lease and are accounted for together with the lease as a single lease component. Certain of the Company’s lease agreements permit it to sublease leased assets. Sublease income is included as a component of occupancy expense. Operating lease ROU assets are regularly reviewed for impairment under the long-lived asset impairment guidance in ASC Subtopic 360-10, Property, Plant and Equipment - Overall . |
Loans Eligible for Repurchase | Loans Eligible for Repurchase Loans eligible for repurchase represents certain mortgage loans sold pursuant to Ginnie Mae programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans and a corresponding repurchase liability in its consolidated balance sheets. The terms of the Ginnie Mae MBS program allow, but do not require, the Company to repurchase mortgage loans when the borrower has made no payments for three consecutive months. As a result of this right, the Company records the loans in loans eligible for repurchase and records a corresponding liability in liability for loans eligible for repurchase on its consolidated balance sheets. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Business combinations are accounted for using the acquisition method of accounting. Acquired intangible assets are recognized and reported separately from goodwill. Goodwill represents the excess cost of acquisition over the fair value of net assets acquired. Intangible assets with finite lives are amortized over their estimated lives using the straight-line method. On an annual basis, during the fourth quarter, the Company evaluates whether there has been a change in the estimated useful life or if certain impairment indicators exist. Goodwill must be allocated to reporting units and tested for impairment. Goodwill is tested for impairment at least annually and more frequently if events or circumstances, such as adverse changes in the business climate, indicate there may be justification for conducting an interim test. Impairment testing is performed at the reporting unit level. In testing goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In making this assessment, the Company considers all relevant events and circumstances. These include, but are not limited to, macroeconomic conditions, industry and market considerations and the reporting unit's overall financial performance. If the Company concludes, based on its qualitative assessment, that it is more likely than not that the fair value of the reporting unit is at least equal to its carrying amount, then the Company concludes that the goodwill of the reporting unit is not impaired and no further testing is performed. However, if the Company determines, based on its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company will perform the quantitative goodwill impairment test. At the Company’s option, it may, in any given period, bypass the qualitative assessment and proceed directly to the quantitative approach. The quantitative assessment begins with a comparison of the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, an impairment loss shall be recognized in an amount equal to the difference, limited to the total amount of goodwill for the reporting unit. During the second quarter of 2022, the Company performed an interim impairment test due to the impact of rising interest rates on the mortgage industry and the Company’s recent stock performance. The evaluation of goodwill included a market-based and income-based approach. Based upon the results of this evaluation, management concluded that goodwill had become impaired driven primarily by significant declines in market capitalization. Accordingly, an impairment charge totaling $40.7 million, the entire amount of goodwill, was recognized during the second quarter of 2022. |
Long-Lived Assets | Long-Lived Assets |
Income Taxes | Income Taxes The Company’s provision for income taxes is made for current and deferred income tax on pretax net income adjusted for permanent and temporary differences based on enacted tax laws and applicable statutory tax rates. The Company accounts for interest and penalties associated with income tax obligations as a component of income tax expense. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates for the periods in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the change. Deferred tax assets are recorded in other assets on the consolidated balance sheets. Deferred tax liabilities are recorded in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Future exchanges of Holdco Units for cash or Class A Common Stock are expected to result in increases to the Company’s allocable tax basis in its assets. These increases in tax basis are expected to increase (for tax purposes) depreciation and amortization deductions allocable to the Company, and therefore reduce the amount of tax that the Company would otherwise be required to pay in the future. As a result, the Company has entered into a Tax Receivable Agreement, (“TRA”) with Parthenon stockholders and certain Continuing LLC Members, whereby loanDepot, Inc. will be obligated to pay such parties or their permitted assignees, 85% of the amount of cash tax savings, if any, in U.S. federal, state, and local taxes that loanDepot, Inc. realizes, or is deemed to realize as a result of future tax benefits from increases in tax basis. The TRA liability is accounted for as a contingent liability within accounts payable, accrued expenses and other liabilities on the consolidated balance sheets with amounts accrued when deemed probable and estimable. |
Stock-Based Compensation | Stock-Based Compensation The Company’s 2021 Omnibus Incentive Plan (“2021 Plan”) and 2022 Inducement Plan (“2022 Plan”) provide for the grant of incentive and non-qualified stock options, restricted stock, restricted stock units (“RSUs”), and stock appreciation rights of the Company’s Class A common stock. The Company’s 2022 Employee Stock Purchase Plan (“ESPP”) provided employees with an opportunity to purchase the Company’s Class A common stock at a discounted price through accumulated payroll deductions. The Company measures and recognizes compensation expense for all stock-based awards based on estimated fair values. Stock-based awards consist of RSUs, ESPP subscriptions, and non-qualified stock options. The Company’s RSUs vest on service-based or market-based conditions. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period (vesting period) so that compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. Expense is reduced for actual forfeitures as they occur. The cost of stock-based compensation is recorded to personnel expense on the consolidated statements of operations. |
Earnings per share | Earnings per share Basic and diluted earnings per common share are calculated in accordance with the two-class method. According to the Company’s certificate of incorporation, holders of Class A common stock and Class D common stock are entitled to share equally, on a per-share basis, in dividends and other distributions of cash, property, or shares of stock of the Company as may be declared by the board of directors. Basic earnings or loss per share of Class A common stock and Class D common stock is computed by dividing net income or loss attributable to loanDepot, Inc. by the weighted-average number of shares of Class A common stock and Class D common stock, respectively, outstanding during the period. Shares of Class B and Class C common stock do not have economic rights to loanDepot Inc and, therefore, are not included in the calculation of basic earnings per share. For purposes of computing diluted earnings or loss per share, the weighted-average number of the Company’s shares reflects the dilutive effect that could occur if all potentially dilutive securities were converted into or exchanged or exercised for the Company’s Class A common stock. The dilutive effect of stock options and other stock-based awards is calculated using the treasury stock method, which assumes the proceeds from the exercise of these instruments are used to purchase common shares at the average market price for the period. Market-based restricted stock units are considered contingently issuable shares, and their dilutive effect is included in the denominator of the diluted earnings or loss per share calculation for the entire period, if those shares would be issuable as of the end of the reporting period, assuming the end of the reporting period was also the end of the contingency period. The dilutive effect of noncontrolling interests is evaluated under the if-converted method, where the Class C common stock is assumed to be converted, and the resulting common shares are included in the denominator of the diluted earnings or loss per share calculation. |
Other Income | Other income Direct title insurance premiums, escrow and sub escrow fees, and default and foreclosure service revenues are reported within other income in the consolidated statements of operations and are within the scope of Revenue from Contracts with |
Marketing and Advertising | Marketing and Advertising Advertising costs are expensed in the period incurred and principally represent online advertising costs, including fees paid to search engines, distribution partners, master service agreements with brokers, and desk rental agreements with realtors. Prepaid advertising expenses are capitalized and recognized during the period the expenses are incurred. |
Concentration of Risk | Concentration of Risk The Company has concentrated its credit risk for cash by maintaining deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash. Due to the nature of the mortgage lending industry, changes in interest rates may significantly impact revenue from originating mortgages and subsequent sales of loans to investors, which are the primary source of income for the Company. The Company originates mortgage loans on property located throughout the United States, with loans originated for property located in California totaling approximately 18% and 22% of total loan originations for the years ended December 31, 2023 and 2022, respectively. The Company sells mortgage loans to various third-party investors. Three investors accounted for 36%, 28%, and 12%, of the Company’s loan sales for the year ended December 31, 2023 and 28%, 27%, and 22% for the year ended December 31, 2022. No other investors accounted for more than 5% of the loan sales for the years ended December 31, 2023 and 2022. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements On March 2023, the FASB issued ASU 2023-1, Leases (Topic 842): Common Control Arrangements, which amends certain provisions of ASU 2016-2, Leases (Topic 842). This amendment requires leasehold improvements associated with common control arrangements to be amortized over the useful life of the common control group and accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying assets. Additionally, these leasehold improvements are subject to the impairment guidance in Topic 360, Property, Plant, and Equipment. ASU 2023-1 is effective for fiscal years beginning after December 15, 2023. The Company does not expect the adoption of this standard to have a material effect on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-9, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which, among other things, require that public business entities annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-9 is effective for all entities for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, with early adoption permitted. The Company will include the required disclosures in its consolidated financial statements once adopted. |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Useful Life of Property, Plant and Equipment | Useful lives for purposes of computing depreciation are as follows: Years Leasehold improvements 2 - 15 Furniture and equipment 5 - 7 Computer software 3 - 5 Property and equipment, net consists of the following: December 31, 2023 2022 Furniture and equipment $ 91,061 $ 93,818 Computer software 6,759 6,837 Software development 165,119 147,424 Leasehold improvements 29,180 29,150 Work in progress 13,042 12,929 Property and equipment 305,161 290,158 Accumulated depreciation and amortization (234,352) (197,269) Property and equipment, net $ 70,809 $ 92,889 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial Statement Items Measured at Fair Value on a Recurring Basis The following tables presents the Company’s assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy as of the dates indicated. December 31, 2023 Level 1 Level 2 Level 3 Total Fair value through net income: Assets: Loans held for sale $ — $ 2,132,880 $ — $ 2,132,880 Trading securities — 92,901 — 92,901 Derivative assets: Interest rate lock commitments — — 49,112 49,112 Forward sale contracts — 16,610 — 16,610 Interest rate swap futures 26,476 — — 26,476 MBS put options — 1,376 — 1,376 Servicing rights — — 1,999,763 1,999,763 Total assets at fair value $ 26,476 $ 2,243,767 $ 2,048,875 $ 4,319,118 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 1,172 $ 1,172 Forward sale contracts — 83,728 — 83,728 Put options on treasuries 62 — — 62 Servicing rights — — 14,045 14,045 Total liabilities at fair value $ 62 $ 83,728 $ 15,217 $ 99,007 December 31, 2022 Level 1 Level 2 Level 3 Total Fair value through net income: Assets: Loans held for sale $ — $ 2,373,427 $ — $ 2,373,427 Trading securities — 94,243 — 94,243 Derivative assets: Interest rate lock commitments — — 29,374 29,374 Forward sale contracts — 6,676 — 6,676 MBS put options — 3,361 — 3,361 Servicing rights — — 2,037,447 2,037,447 Total assets at fair value $ — $ 2,477,707 $ 2,066,821 $ 4,544,528 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 5,784 $ 5,784 Interest rate swap futures 7,395 — — 7,395 Forward sale contracts — 43,482 — 43,482 Put options on treasuries 10,831 — — 10,831 Servicing rights — — 12,311 12,311 Total liabilities at fair value $ 18,226 $ 43,482 $ 18,095 $ 79,803 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Year Ended December 31, 2023 IRLCs, net Servicing Rights, net Balance at beginning of period $ 23,590 $ 2,025,136 Total net gains (losses) included in: Gain on origination and sale of loans, net: Issuances and additions 387,498 277,387 Transfers of IRLC to LHFS (275,451) — Other factors (87,697) — Change in fair value of servicing rights, net (1) — (136,118) Sales — (180,687) Balance at end of period $ 47,940 $ 1,985,718 (1) The change in unrealized gains or losses relating to servicing rights still held at December 31, 2023 amounted to a net loss of $61.1 million for the year ended December 31, 2023. Year Ended December 31, 2022 IRLCs, net Servicing Rights, net Balance at beginning of period $ 180,620 $ 1,999,402 Total net gains (losses) included in: Gain on origination and sale of loans, net: Issuances and additions 380,443 647,716 Transfers of IRLC to LHFS (377,071) — Other factors (160,402) — Change in fair value of servicing rights, net (1) — 143,169 Sales — (765,151) Balance at end of period $ 23,590 $ 2,025,136 (1) The change in unrealized gains or losses relating to servicing rights that were still held at December 31, 2022, amounted to a net gain of $710.3 million for the year ended December 31, 2022. Year Ended December 31, 2021 IRLCs, net Servicing Rights, net Balance at beginning of period $ 647,045 $ 1,124,302 Total net gains (losses) included in: Gain on origination and sale of loans, net: Issuances and additions 2,169,847 1,610,596 Transfers of IRLC to LHFS (1,969,541) — Other factors (666,731) — Change in fair value of servicing rights, net (1) — (351,767) Sales — (383,729) Balance at end of period $ 180,620 $ 1,999,402 (1) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Year Ended December 31, 2023 IRLCs, net Servicing Rights, net Balance at beginning of period $ 23,590 $ 2,025,136 Total net gains (losses) included in: Gain on origination and sale of loans, net: Issuances and additions 387,498 277,387 Transfers of IRLC to LHFS (275,451) — Other factors (87,697) — Change in fair value of servicing rights, net (1) — (136,118) Sales — (180,687) Balance at end of period $ 47,940 $ 1,985,718 (1) The change in unrealized gains or losses relating to servicing rights still held at December 31, 2023 amounted to a net loss of $61.1 million for the year ended December 31, 2023. Year Ended December 31, 2022 IRLCs, net Servicing Rights, net Balance at beginning of period $ 180,620 $ 1,999,402 Total net gains (losses) included in: Gain on origination and sale of loans, net: Issuances and additions 380,443 647,716 Transfers of IRLC to LHFS (377,071) — Other factors (160,402) — Change in fair value of servicing rights, net (1) — 143,169 Sales — (765,151) Balance at end of period $ 23,590 $ 2,025,136 (1) The change in unrealized gains or losses relating to servicing rights that were still held at December 31, 2022, amounted to a net gain of $710.3 million for the year ended December 31, 2022. Year Ended December 31, 2021 IRLCs, net Servicing Rights, net Balance at beginning of period $ 647,045 $ 1,124,302 Total net gains (losses) included in: Gain on origination and sale of loans, net: Issuances and additions 2,169,847 1,610,596 Transfers of IRLC to LHFS (1,969,541) — Other factors (666,731) — Change in fair value of servicing rights, net (1) — (351,767) Sales — (383,729) Balance at end of period $ 180,620 $ 1,999,402 (1) |
Fair Value Measurement Inputs and Valuation Techniques | The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring basis: December 31, 2023 December 31, 2022 Unobservable Input Range of inputs Weighted Average (1) Range of inputs Weighted Average (1) IRLCs Pull-through rate 2.7% - 99.9% 76.7% 8.4% - 99.9% 75.3% Servicing rights Discount rate (2) 4.6% - 16.8% 6.4% 5.0% - 16.1% 6.5% Prepayment rate (2) 5.6% - 22.4% 8.1% 5.8% - 17.6% 7.2% Cost to service (per loan) $72 - $126 $90 $63 - $138 $87 (1) Weighted average inputs are based on the committed amounts for IRLCs and the UPB of the underlying loans for servicing rights. (2) |
Fair Value, Assets Not Measured on Recurring and Nonrecurring Basis | The following table presents the carrying amount and estimated fair value of financial instruments included in the consolidated financial statements that are not recorded at fair value on a recurring or nonrecurring basis. The table excludes cash and cash equivalents, restricted cash, warehouse and other lines of credit, and secured debt facilities as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value: December 31, 2023 December 31, 2022 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 989,318 $ 886,492 $ 991,822 $ 645,495 |
LOANS HELD FOR SALE, AT FAIR _2
LOANS HELD FOR SALE, AT FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Unpaid Principal Balance of LHFS by Type of Loan | The following table represents the unpaid principal balance of LHFS by product type of loan as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Amount % Amount % Conforming - fixed $ 1,211,449 57 % $ 1,441,497 59 % Conforming - ARM 18,592 1 52,513 2 Government - fixed 777,860 36 815,921 34 Government - ARM 20,403 1 17,788 1 Other - residential mortgage loans 104,778 5 101,137 4 Consumer loans — — 1,774 — Total 2,133,082 100 % 2,430,630 100 % Fair value adjustment (202) (57,203) Loans held for sale, at fair value $ 2,132,880 $ 2,373,427 |
Summary of Changes in Balance of Loans Held For Sale | A summary of the changes in the balance of loans held for sale is as follows: Year Ended December 31, 2023 2022 Balance at beginning of period $ 2,373,427 $ 8,136,817 Origination and purchase of loans 22,393,729 53,094,767 Sales (23,013,399) (59,174,022) Repurchases 443,935 633,298 Principal payments (129,752) (132,322) Fair value gain (loss) 64,940 (185,111) Balance at end of period $ 2,132,880 $ 2,373,427 |
Components of Gain on Origination and Sale of Loans, Net | Gain on origination and sale of loans, net is comprised of the following components: Year Ended December 31, 2023 2022 2021 (Discount) premium from loan sales $ (135,943) $ (933,547) $ 1,882,557 Servicing rights additions 277,387 647,716 1,610,596 Unrealized losses from derivative assets and liabilities (35,430) (134,519) (308,200) Realized gains from derivative assets and liabilities 55,631 1,215,013 347,014 Discount points, rebates and lender paid costs 306,115 275,981 (206,716) Fair value gain (loss) on loans held for sale 64,940 (185,111) (104,715) Provision for loan loss obligation for loans sold (8,179) (136,993) (7,185) Total gain on origination and sale of loans, net $ 524,521 $ 748,540 $ 3,213,351 |
Debt Securities, Held-For-Sale, Past Due | The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for LHFS. December 31, 2023 December 31, 2022 Fair value UPB Difference Fair value UPB Difference Current through 89 days delinquent $ 2,113,106 $ 2,108,125 $ 4,980 $ 2,353,732 $ 2,405,842 $ (52,110) 90+ days delinquent (1) 19,774 24,957 (5,182) 19,695 24,788 (5,093) Total $ 2,132,880 $ 2,133,082 $ (202) $ 2,373,427 $ 2,430,630 $ (57,203) ( 1 |
SERVICING RIGHTS, AT FAIR VAL_2
SERVICING RIGHTS, AT FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Outstanding Principal Balance of Servicing Rights | Our servicing rights portfolio consists of Agency MSRs associated with mortgage loans that conform to the guidelines set forth by GSEs, Government MSRs associated with mortgage loans that are insured or guaranteed by government agencies, primarily through Ginnie Mae mortgage-backed securities, and Other MSRs consisting primarily of other non-Agency loans. The outstanding principal balance of the servicing portfolio was comprised of the following: December 31, 2023 2022 Agency $ 94,243,545 $ 93,971,606 Government 40,535,399 37,096,679 Other 10,311,255 10,102,646 Total servicing portfolio $ 145,090,199 $ 141,170,931 |
Summary of Changes in Servicing Rights | A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows: Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 2,025,136 $ 1,999,402 $ 1,124,302 Servicing rights additions 277,387 647,716 1,610,596 Sales proceeds, net (180,687) (765,151) (383,729) Changes in fair value: Due to changes in valuation inputs or assumptions 2,227 363,064 68,399 Due to collection/realization of cash flows (149,211) (230,449) (421,624) Realized gains on sales of servicing rights 10,866 10,554 1,458 Balance at end of period $ 1,985,718 $ 2,025,136 $ 1,999,402 |
Summary of Components of Loan Servicing Fee Income | The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations: Year Ended December 31, 2023 2022 2021 Contractual servicing fees $ 395,213 $ 423,528 $ 382,501 Late, ancillary and other fees 97,598 25,622 11,179 Servicing fee income $ 492,811 $ 449,150 $ 393,680 |
Summary of Components of Changes in Fair Value of Servicing Rights | The following is a summary of the components of changes in fair value of servicing rights, net as reported in the Company’s consolidated statements of operations: Year Ended December 31, 2023 2022 2021 Changes in fair value: Due to changes in valuation inputs or assumptions $ 2,227 $ 363,064 $ 68,399 Due to collection/realization of cash flows (149,211) (230,449) (421,624) Realized gains (losses) on sales of servicing rights, net (1) 10,486 (3,663) (9,759) Net loss from derivatives hedging servicing rights (47,919) (323,309) (82,878) Changes in fair value of servicing rights, net $ (184,417) $ (194,357) $ (445,862) (1) |
Servicing Rights Sensitivity Analysis | The table below illustrates hypothetical changes in fair values of servicing rights, caused by assumed immediate changes to key assumptions that are used to determine fair value. December 31, 2023 2022 Fair value of servicing rights, net $ 1,985,718 $ 2,025,136 Change in fair value from adverse changes: Discount Rate: Increase 1% (76,862) (81,431) Increase 2% (148,438) (157,281) Cost of Servicing: Increase 10% (20,103) (19,017) Increase 20% (40,319) (38,127) Prepayment Speed: Increase 10% (22,425) (18,863) Increase 20% (44,128) (37,546) |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following summarizes the Company’s outstanding derivative instruments: Fair Value Notional Balance Sheet Location Asset Liability December 31, 2023: Interest rate lock commitments $ 2,007,175 Derivative asset, at fair value $ 49,112 Interest rate lock commitments 163,161 Derivative liabilities, at fair value — 1,172 Forward sale contracts 449,419 Derivative asset, at fair value 16,610 — Forward sale contracts 2,234,930 Derivative liabilities, at fair value — 83,728 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 9,730 Derivative liabilities, at fair value — 62 MBS put options 200,000 Derivative asset, at fair value 1,376 — MBS put options — Derivative liabilities, at fair value — — Interest rate swap futures 3,240 Derivative asset, at fair value 26,476 — Interest rate swap futures — Derivative liabilities, at fair value — — Total derivative financial instruments $ 93,574 $ 84,962 Fair Value Notional Balance Sheet Location Asset Liability December 31, 2022: Interest rate lock commitments $ 1,591,807 Derivative asset, at fair value $ 29,374 $ — Interest rate lock commitments 622,706 Derivative liabilities, at fair value — 5,784 Forward sale contracts 309,809 Derivative asset, at fair value 6,676 — Forward sale contracts 2,963,685 Derivative liabilities, at fair value — 43,482 Put options on treasuries — Derivative asset, at fair value — — Put options on treasuries 8,050 Derivative liabilities, at fair value — 10,831 MBS put options 400,000 Derivative asset, at fair value 3,361 — MBS put options — Derivative liabilities, at fair value — — Interest rate swap futures — Derivative asset, at fair value — — Interest rate swap futures 211 Derivative liabilities, at fair value — 7,395 Total derivative financial instruments $ 39,411 $ 67,492 |
Net Gains (Losses) on Derivative Financial Instruments | The following summarizes the realized and unrealized net gains or losses on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included: Year Ended December 31, Derivative instrument Statements of Operations Location 2023 2022 2021 Interest rate lock commitments, net Gain on origination and sale of loans, net $ 24,350 $ (157,030) $ (466,425) Forward sale contracts Gain on origination and sale of loans, net 6,958 1,195,708 540,811 Interest rate swap futures Gain on origination and sale of loans, net (31,328) (81,259) (111,300) Put options Gain on origination and sale of loans, net 20,221 123,075 75,728 Forward sale contracts Change in fair value of servicing rights, net (13,763) (114,244) (89,127) Interest rate swap futures Change in fair value of servicing rights, net (22,572) (201,259) 9,071 Put options Change in fair value of servicing rights, net (11,584) (7,806) (2,822) Total realized and unrealized losses on derivative financial instruments $ (27,718) $ 757,185 $ (44,064) |
BALANCE SHEET NETTING (Tables)
BALANCE SHEET NETTING (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Offsetting [Abstract] | |
Offsetting Assets | December 31, 2023 and 2022, respectively. Refer to Note 11 – Warehouse and Other Lines of Credit for further details on cash collateral requirements. December 31, 2023 Gross amounts recognized Gross amounts offset in consolidated balance sheet Net amounts presented in consolidated balance sheet Gross amounts not offset in consolidated balance sheet Net amount Financial instruments Cash collateral Assets: Forward sale contracts $ 33,591 $ (16,981) $ 16,610 $ — $ — $ 16,610 MBS put options 1,376 — 1,376 — — 1,376 Interest rate swap futures 26,476 — 26,476 — — 26,476 Total assets $ 61,443 $ (16,981) $ 44,462 $ — $ — $ 44,462 Liabilities: Forward sale contracts $ 100,709 $ (16,981) $ 83,728 $ — $ (60,188) $ 23,540 Put options on treasuries 62 — 62 — — 62 Warehouse and other lines of credit 1,947,057 — 1,947,057 (1,947,057) — — Secured debt obligations (1) 1,287,418 — 1,287,418 (1,287,418) — — Total liabilities $ 3,335,246 $ (16,981) $ 3,318,265 $ (3,234,475) $ (60,188) $ 23,602 (1) Secured debt obligations as of December 31, 2023 included secured credit facilities and Term Notes. December 31, 2022 Gross amounts recognized Gross amounts offset in consolidated balance sheet Net amounts presented in consolidated balance sheet Gross amounts not offset in consolidated balance sheet Net amount Financial instruments Cash collateral Assets Forward sale contracts $ 39,386 $ (32,710) $ 6,676 $ — $ — $ 6,676 MBS put options 3,361 — 3,361 — — 3,361 Total assets $ 42,747 $ (32,710) $ 10,037 $ — $ — $ 10,037 Liabilities Forward sale contracts $ 76,192 $ (32,710) $ 43,482 $ — $ (36,270) $ 7,212 Put options on treasuries 10,831 — 10,831 — (10,831) — Interest rate swap futures 7,395 — 7,395 — (7,395) — Warehouse and other lines of credit 2,146,602 — 2,146,602 (2,146,602) — — Secured debt obligations (1) 1,298,853 — 1,298,853 (1,298,853) — — Total liabilities $ 3,539,873 $ (32,710) $ 3,507,163 $ (3,445,455) $ (54,496) $ 7,212 |
Offsetting Liabilities | December 31, 2023 and 2022, respectively. Refer to Note 11 – Warehouse and Other Lines of Credit for further details on cash collateral requirements. December 31, 2023 Gross amounts recognized Gross amounts offset in consolidated balance sheet Net amounts presented in consolidated balance sheet Gross amounts not offset in consolidated balance sheet Net amount Financial instruments Cash collateral Assets: Forward sale contracts $ 33,591 $ (16,981) $ 16,610 $ — $ — $ 16,610 MBS put options 1,376 — 1,376 — — 1,376 Interest rate swap futures 26,476 — 26,476 — — 26,476 Total assets $ 61,443 $ (16,981) $ 44,462 $ — $ — $ 44,462 Liabilities: Forward sale contracts $ 100,709 $ (16,981) $ 83,728 $ — $ (60,188) $ 23,540 Put options on treasuries 62 — 62 — — 62 Warehouse and other lines of credit 1,947,057 — 1,947,057 (1,947,057) — — Secured debt obligations (1) 1,287,418 — 1,287,418 (1,287,418) — — Total liabilities $ 3,335,246 $ (16,981) $ 3,318,265 $ (3,234,475) $ (60,188) $ 23,602 (1) Secured debt obligations as of December 31, 2023 included secured credit facilities and Term Notes. December 31, 2022 Gross amounts recognized Gross amounts offset in consolidated balance sheet Net amounts presented in consolidated balance sheet Gross amounts not offset in consolidated balance sheet Net amount Financial instruments Cash collateral Assets Forward sale contracts $ 39,386 $ (32,710) $ 6,676 $ — $ — $ 6,676 MBS put options 3,361 — 3,361 — — 3,361 Total assets $ 42,747 $ (32,710) $ 10,037 $ — $ — $ 10,037 Liabilities Forward sale contracts $ 76,192 $ (32,710) $ 43,482 $ — $ (36,270) $ 7,212 Put options on treasuries 10,831 — 10,831 — (10,831) — Interest rate swap futures 7,395 — 7,395 — (7,395) — Warehouse and other lines of credit 2,146,602 — 2,146,602 (2,146,602) — — Secured debt obligations (1) 1,298,853 — 1,298,853 (1,298,853) — — Total liabilities $ 3,539,873 $ (32,710) $ 3,507,163 $ (3,445,455) $ (54,496) $ 7,212 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Investment in VIEs | The table below presents a summary of the carrying value and balance sheet classification of assets and liabilities in the Company’s consolidated securitization and SPE VIEs. December 31, December 31, Assets Loans held for sale, at fair value $ 510,080 $ 497,574 Restricted cash 2,704 6,735 Servicing rights, at fair value 617,878 544,729 Other assets 84,524 54,887 Total $ 1,215,186 $ 1,103,925 Liabilities Warehouse and other lines of credit $ 500,000 $ 500,000 Debt obligations, net: MSR Facilities 174,750 116,874 Servicing advance facilities 27,939 48,484 Term notes 200,000 199,666 Total $ 902,689 $ 865,024 Non-Consolidated VIEs The nature, purpose, and activities of non-consolidated VIEs currently encompass the Company’s investments in retained interests from securitizations and joint ventures. The table below presents a summary of the nonconsolidated VIEs for which the Company holds variable interests. December 31, 2023 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 92,901 $ — $ 92,901 $ 2,200,406 Investments in joint ventures 20,363 — 20,363 27,171 Total $ 113,264 $ — $ 113,264 December 31, 2022 Carrying value Maximum Total assets in VIEs Assets Liabilities Retained interests $ 94,243 $ — $ 94,243 $ 2,309,739 Investments in joint ventures 20,410 — 20,410 38,682 Total $ 114,653 $ — $ 114,653 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Useful lives for purposes of computing depreciation are as follows: Years Leasehold improvements 2 - 15 Furniture and equipment 5 - 7 Computer software 3 - 5 Property and equipment, net consists of the following: December 31, 2023 2022 Furniture and equipment $ 91,061 $ 93,818 Computer software 6,759 6,837 Software development 165,119 147,424 Leasehold improvements 29,180 29,150 Work in progress 13,042 12,929 Property and equipment 305,161 290,158 Accumulated depreciation and amortization (234,352) (197,269) Property and equipment, net $ 70,809 $ 92,889 |
Schedule of Capitalized Computer Software Development Costs | Capitalized computer software development costs consist of the following: December 31, 2023 2022 Cost $ 165,119 $ 147,424 Accumulated amortization (122,861) (95,777) Software development, net $ 42,258 $ 51,647 |
Schedule of Future Computer Software Development Depreciation | Future computer software development amortization for the remaining years: Year ending December 31, 2024 $ 25,615 2025 13,990 2026 2,653 Total $ 42,258 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense and Other Information | Year Ended December 31, 2023 2022 2021 Lease expense: Operating leases $ 16,864 $ 24,961 $ 28,322 Short-term leases 1,739 2,373 747 Sublease income (1,774) (187) (1,049) Lease expense, net included in occupancy expense $ 16,829 $ 27,147 $ 28,020 Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 23,975 $ 31,350 Right-of-use assets obtained in exchange for lease obligations: New leases entered into during the year 8,852 16,922 December 31, December 31, 2022 Period-end: Operating leases: Weighted average remaining lease term (years) 3.3 3.6 Weighted average discount rate 6.6 % 5.7 % |
Schedule of Future Minimum Lease Payments for Operating Lease | The following is a schedule of future minimum lease payments for operating leases with initial terms in excess of one year as of December 31, 2023: Year ending December 31, 2024 $ 19,201 2025 14,456 2026 10,017 2027 8,507 2028 2,816 Thereafter 116 Total operating lease payments 55,113 Less: Imputed interest (5,921) Operating lease liability $ 49,192 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Other Assets | Other assets consists of the following: December 31, 2023 2022 Servicing advances $ 118,414 $ 98,704 Margin call receivable 60,188 36,270 Prepaid expenses 27,476 41,317 Loan related receivables 9,408 18,858 Joint ventures 7,726 15,843 Servicing related receivables 4,610 61,216 Income tax receivable 2,611 10,725 Deferred tax asset 1,976 941 Other 21,689 17,387 Total $ 254,098 $ 301,261 |
WAREHOUSE AND OTHER LINES OF _2
WAREHOUSE AND OTHER LINES OF CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents information on warehouse and other lines of credit and the outstanding balance as of December 31, 2023 and 2022: Outstanding Balance Committed Uncommitted Total Expiration December 31, December 31, Facility 1 (1) $ 400,000 $ 350,000 $ 750,000 10/25/2024 $ 391,418 $ 382,098 Facility 2 (2) 1,000 299,000 300,000 9/23/2024 155,676 236,144 Facility 3 — 300,000 300,000 4/16/2024 175,348 177,900 Facility 4 — 175,000 175,000 12/26/2024 127,052 202,548 Facility 5 (2) — 200,000 200,000 N/A 1,638 — Facility 6 (2) — 600,000 600,000 9/27/2024 359,401 180,273 Facility 7 — — — 11/1/2023 — 295,064 Facility 8 — 300,000 300,000 9/20/2024 236,524 172,575 Facility 9 (3) 500,000 — 500,000 10/21/2024 500,000 500,000 Total $ 901,000 $ 2,224,000 $ 3,125,000 $ 1,947,057 $ 2,146,602 (1) The total facility is available both to fund loan originations and also provide liquidity under a gestation facility to finance recently sold MBS up to the MBS settlement date. (2) In addition to the warehouse line, the lender provides a separate gestation facility to finance recently sold MBS up to the MBS settlement date. (3) Securitization backed by a revolving warehouse facility to finance newly originated first-lien fixed and adjustable rate mortgage loans. The following table presents certain information on warehouse and other lines of credit: Year Ended December 31, 2023 2022 2021 Maximum outstanding balance during the period $ 2,280,996 $ 7,672,559 $ 9,180,276 Average balance outstanding during the period 1,704,717 4,127,822 8,149,855 Collateral pledged (loans held for sale) 2,065,878 2,214,656 7,815,347 Weighted average interest rate during the period 7.04 % 2.97 % 2.21 % |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Information on Outstanding Debt | The following table presents the outstanding debt as of December 31, 2023 and 2022: December 31, 2023 2022 Secured debt obligations, net: Secured credit facilities: MSR facilities $ 980,760 $ 963,834 Securities financing facilities 75,994 85,513 Servicing advance facilities 27,939 48,484 Total secured credit facilities 1,084,693 1,097,831 Term Notes 200,000 199,666 Total secured debt obligations, net 1,284,693 1,297,497 Unsecured debt obligations, net: Senior Notes 989,318 991,822 Total debt obligations, net $ 2,274,011 $ 2,289,319 |
ACCOUNTS PAYABLE, ACCRUED EXP_2
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable, accrued expenses, and other liabilities consist of the following: December 31, 2023 2022 Accounts payable $ 108,642 $ 139,714 Deferred tax liability 80,171 122,404 Loan loss obligation for sold loans 31,980 70,797 Accrued compensation and benefits 54,084 52,759 TRA liability 57,258 50,730 Joint ventures 15,602 25,619 Servicing rights, at fair value 14,045 12,311 Dividends and dividend equivalents payable 2,919 7,130 Accrued pricing adjustments on sold loans 831 3,167 Income tax payable 943 — Other 13,496 4,065 Total $ 379,971 $ 488,696 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Summary of Ownership of LD Holdings | The following table summarizes the ownership of LD Holdings. As of December 31, 2023 2022 Holding Member Interests: Holdco Units Ownership Percentage Holdco Units Ownership Percentage loanDepot, Inc. 181,054,423 56.18% 169,523,682 53.78% Continuing LLC Members 141,234,529 43.82% 145,693,119 46.22% Total 322,288,952 100.00% 315,216,801 100.00% |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculation of basic and diluted earnings (loss) per share for Class A common stock and Class D common stock: For the year ended December 31, 2023 2022 2021 Class A Class D Total Class A Class D Total Class A Class D Total Net (loss) income allocated to common stockholders $ (49,042) $ (61,100) $ (110,142) $ (103,026) $ (169,994) $ (273,020) $ 13,998 $ 99,526 $ 113,524 Weighted average shares - basic 77,879,392 97,026,671 174,906,063 58,879,239 97,151,111 156,030,350 16,029,314 113,969,580 129,998,894 (Loss) earnings per share: Basic $ (0.63) $ (0.63) $ (0.63) $ (1.75) $ (1.75) $ (1.75) $ 0.87 $ 0.87 $ 0.87 Diluted $ (0.63) $ (0.63) $ (0.63) $ (1.75) $ (1.75) $ (1.75) $ 0.87 $ 0.87 $ 0.87 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the year ended December 31, 2023 2022 2021 Class C common stock 147,789,060 163,541,101 192,465,222 Stock options, restricted stock units, ESPP shares (1) 16,919,589 14,278,795 1,192,211 Total 164,708,649 177,819,896 193,657,433 (1) |
COMPENSATION PLANS (Tables)
COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Options, Valuation Assumptions | The Black-Scholes option pricing model was used with the following weighted-average assumptions for options granted. There were no options granted prior to 2022. For the year ended December 31, 2023 2022 Average risk-free interest rate 4.19% 3.69% Expected dividend yield N/A N/A Expected volatility 62% 70% Expected life 5.74 years 5.61 years Fair value per share $1.25 $1.10 |
Employee Stock Purchase Plan, Valuation Assumptions | The Black-Scholes option pricing model was used with the following weighted-average assumptions for ESPP subscriptions. For the year ended December 31, 2023 2022 Average risk-free interest rate 4.61% 3.77% Expected dividend yield N/A N/A Expected volatility 64% 70% Expected life 0.50 years 0.50 years Fair value per share $1.75 $1.60 |
Summary of RSU Activity | The fair value of market-based restricted stock units was determined using a Monte Carlo simulation model, which uses multiple input variables to determine the probability of satisfying the market condition requirements. The following weighted-average assumptions were used to determine the fair value of market-based restricted stock units. There were no market-based restricted stock units granted prior to 2022. For the year ended December 31, 2023 2022 Average risk-free interest rate 4.37% 3.20% Expected volatility 62% 70% Restricted stock unit activity during the year ended December 31, 2023 under the 2022 Plan and 2021 Plan was as follows: Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2022 25,103,600 $ 3.43 Granted 6,371,638 2.21 Vested (4,738,693) 3.63 Forfeited/Cancelled (5,297,726) 3.63 Unvested as of December 31, 2023 21,438,819 2.97 Restricted stock unit activity during the year ended December 31, 2023 for Holdco Units was as follows: Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2022 5,744,200 $ 0.50 Vested (2,978,054) 0.50 Forfeited/Cancelled (564,274) 0.50 Unvested as of December 31, 2023 2,201,872 0.50 |
Schedule of Stock Option Activity | Stock option activity during the year ended December 31, 2023 under the 2022 Plan and 2021 Plan was as follows: Shares Weighted Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 31, 2022 7,000,000 $ 1.73 5.6 years $ 480 Granted 350,000 $ 2.09 Forfeited/Cancelled (2,000,000) $ 1.57 Outstanding as of December 31, 2023 5,350,000 $ 1.82 4.9 years 9,102 Exercisable as of December 31, 2023 4,250,000 1.64 4.2 years 8,000 Vested and Expected to Vest as of December 31, 2023 1,100,000 $ 2.52 7.6 years 1,102 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The following table details the Company’s provision for income taxes: Year Ended December 31, 2023 2022 2021 Current Federal $ 240 $ (162) $ 8,936 State 139 846 3,120 Total current 379 684 12,056 Deferred Federal (27,512) (66,624) 26,623 State (15,663) (13,652) 4,692 Total deferred (43,175) (80,276) 31,315 Total (benefit) provision for income taxes $ (42,796) $ (79,592) $ 43,371 |
Schedule of Reconciliation of Estimated Provision for Income Taxes | The following table is a reconciliation of the estimated provision for income taxes at statutory rates to the provision for income taxes at the Company’s effective tax rate: Year Ended December 31, 2023 2022 2021 Federal income tax at statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes (net of federal benefit) 2.8 3.0 0.9 Non-controlling interests (9.5) (10.3) (16.2) Goodwill impairment — (0.6) — State rate change 1.9 (1.5) — Change in valuation allowance 0.1 (0.1) — Other, net (0.9) — 0.8 Effective income tax rate 15.4 % 11.5 % 6.5 % |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: December 31, 2023 2022 Deferred tax assets: Accrued compensation $ 16 $ 41 Net operating loss 87,978 70,010 Tax credits 421 447 Depreciation 8 7 Acquired intangible assets 157 — Charitable contributions carryover 83 — Gross deferred tax assets before valuation allowance 88,663 70,505 Valuation allowance (314) (386) Net deferred tax assets 88,349 70,119 Deferred tax liabilities: Outside basis difference 166,544 191,437 Acquired intangible assets — 145 Total deferred tax liabilities 166,544 191,582 Net deferred tax liabilities $ (78,195) $ (121,463) |
Reconciliation of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of uncertain tax positions is as follows: Year Ended December 31, 2023 2022 2021 Beginning balance $ 497 $ 654 $ — Increases related to positions taken during prior years — — 540 Increases related to positions taken during the current year — — 114 Increases related to positions settled with tax authorities 212 — — Decreases due to a lapse of applicable statute of limitations (70) (157) — Ending balance $ 639 $ 497 $ 654 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Fees earned, costs incurred, and receivables from joint ventures were as follows: Year Ended December 31, 2023 2022 2021 Loan processing and administrative services fee income $ 21,970 $ 18,534 $ 15,023 Loan origination broker fees expense 132,345 120,392 90,266 December 31, 2023 2022 Amounts payable to joint ventures, net $ 7,876 $ 9,776 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loan Loss Obligation | The activity related to the loan loss obligation for sold loans is as follows: Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 70,797 $ 29,877 $ 33,591 Provision for loan loss obligations 8,179 136,993 7,185 Charge-offs (46,996) (96,073) (10,899) Balance at end of period $ 31,980 $ 70,797 $ 29,877 |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - LD Holdings | Dec. 31, 2023 |
LDLLC | |
Noncontrolling Interest [Line Items] | |
Percentage of voting interests acquired | 99.99% |
ART | |
Noncontrolling Interest [Line Items] | |
Percentage of voting interests acquired | 100% |
Mello Credit Strategies LLC | |
Noncontrolling Interest [Line Items] | |
Percentage of voting interests acquired | 100% |
LDSS | |
Noncontrolling Interest [Line Items] | |
Percentage of voting interests acquired | 100% |
Mello | |
Noncontrolling Interest [Line Items] | |
Percentage of voting interests acquired | 100% |
DESCRIPTION OF BUSINESS AND S_5
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Segments (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
DESCRIPTION OF BUSINESS AND S_6
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | Dec. 31, 2023 |
Software development | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 3 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 2 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 15 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 5 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 7 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 3 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (years) | 5 years |
DESCRIPTION OF BUSINESS AND S_7
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Goodwill impairment | $ 40,700 | $ 0 | $ 40,736 | $ 0 |
Impairment charge | $ 1,400 |
DESCRIPTION OF BUSINESS AND S_8
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loan Originations Benchmark | Geographic Concentration Risk | California | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 18% | 22% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 1 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 36% | 28% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 2 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 28% | 27% |
Mortgage Loans Benchmark | Investor Concentration Risk | Investor 3 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 12% | 22% |
Warehouse Lines of Credit Benchmark | Lender Concentration Risk | Lender 1 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 20% | |
Warehouse Lines of Credit Benchmark | Lender Concentration Risk | Lender 2 | ||
Concentration of Risk [Line Items] | ||
Concentration risk, percentage | 18% |
FAIR VALUE - Financial Statemen
FAIR VALUE - Financial Statement Items on Recurring Basis by Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Loans held for sale | $ 2,132,880 | $ 2,373,427 |
Trading securities | 92,901 | 94,243 |
Derivative assets | 93,574 | 39,411 |
Servicing rights | 1,999,763 | 2,037,447 |
Derivative liabilities: | ||
Derivative liabilities | 84,962 | 67,492 |
Servicing rights | 14,045 | 12,311 |
Interest rate lock commitments | ||
Assets: | ||
Derivative assets | 49,112 | 29,374 |
Derivative liabilities: | ||
Derivative liabilities | 1,172 | 5,784 |
Forward sale contracts | ||
Assets: | ||
Derivative assets | 16,610 | 6,676 |
Derivative liabilities: | ||
Derivative liabilities | 83,728 | 43,482 |
Interest rate swap futures | ||
Assets: | ||
Derivative assets | 26,476 | 0 |
Derivative liabilities: | ||
Derivative liabilities | 0 | 7,395 |
MBS put options | ||
Assets: | ||
Derivative assets | 1,376 | 3,361 |
Derivative liabilities: | ||
Derivative liabilities | 0 | 0 |
Put options on treasuries | ||
Assets: | ||
Derivative assets | 0 | 0 |
Derivative liabilities: | ||
Derivative liabilities | 62 | 10,831 |
Fair Value, Recurring | ||
Assets: | ||
Loans held for sale | 2,132,880 | 2,373,427 |
Trading securities | 92,901 | 94,243 |
Servicing rights | 1,999,763 | 2,037,447 |
Total assets at fair value | 4,319,118 | 4,544,528 |
Derivative liabilities: | ||
Servicing rights | 14,045 | 12,311 |
Total liabilities at fair value | 99,007 | 79,803 |
Fair Value, Recurring | Interest rate lock commitments | ||
Assets: | ||
Derivative assets | 49,112 | 29,374 |
Derivative liabilities: | ||
Derivative liabilities | 1,172 | 5,784 |
Fair Value, Recurring | Forward sale contracts | ||
Assets: | ||
Derivative assets | 16,610 | 6,676 |
Derivative liabilities: | ||
Derivative liabilities | 83,728 | 43,482 |
Fair Value, Recurring | Interest rate swap futures | ||
Assets: | ||
Derivative assets | 26,476 | |
Derivative liabilities: | ||
Derivative liabilities | 7,395 | |
Fair Value, Recurring | MBS put options | ||
Assets: | ||
Derivative assets | 1,376 | 3,361 |
Fair Value, Recurring | Put options on treasuries | ||
Derivative liabilities: | ||
Derivative liabilities | 62 | 10,831 |
Fair Value, Recurring | Level 1 | ||
Assets: | ||
Loans held for sale | 0 | 0 |
Trading securities | 0 | 0 |
Servicing rights | 0 | 0 |
Total assets at fair value | 26,476 | 0 |
Derivative liabilities: | ||
Servicing rights | 0 | 0 |
Total liabilities at fair value | 62 | 18,226 |
Fair Value, Recurring | Level 1 | Interest rate lock commitments | ||
Assets: | ||
Derivative assets | 0 | 0 |
Derivative liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Forward sale contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Derivative liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Interest rate swap futures | ||
Assets: | ||
Derivative assets | 26,476 | |
Derivative liabilities: | ||
Derivative liabilities | 7,395 | |
Fair Value, Recurring | Level 1 | MBS put options | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Put options on treasuries | ||
Derivative liabilities: | ||
Derivative liabilities | 62 | 10,831 |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Loans held for sale | 2,132,880 | 2,373,427 |
Trading securities | 92,901 | 94,243 |
Servicing rights | 0 | 0 |
Total assets at fair value | 2,243,767 | 2,477,707 |
Derivative liabilities: | ||
Servicing rights | 0 | 0 |
Total liabilities at fair value | 83,728 | 43,482 |
Fair Value, Recurring | Level 2 | Interest rate lock commitments | ||
Assets: | ||
Derivative assets | 0 | 0 |
Derivative liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | Forward sale contracts | ||
Assets: | ||
Derivative assets | 16,610 | 6,676 |
Derivative liabilities: | ||
Derivative liabilities | 83,728 | 43,482 |
Fair Value, Recurring | Level 2 | Interest rate swap futures | ||
Assets: | ||
Derivative assets | 0 | |
Derivative liabilities: | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 2 | MBS put options | ||
Assets: | ||
Derivative assets | 1,376 | 3,361 |
Fair Value, Recurring | Level 2 | Put options on treasuries | ||
Derivative liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Loans held for sale | 0 | 0 |
Trading securities | 0 | 0 |
Servicing rights | 1,999,763 | 2,037,447 |
Total assets at fair value | 2,048,875 | 2,066,821 |
Derivative liabilities: | ||
Servicing rights | 14,045 | 12,311 |
Total liabilities at fair value | 15,217 | 18,095 |
Fair Value, Recurring | Level 3 | Interest rate lock commitments | ||
Assets: | ||
Derivative assets | 49,112 | 29,374 |
Derivative liabilities: | ||
Derivative liabilities | 1,172 | 5,784 |
Fair Value, Recurring | Level 3 | Forward sale contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Derivative liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Interest rate swap futures | ||
Assets: | ||
Derivative assets | 0 | |
Derivative liabilities: | ||
Derivative liabilities | 0 | |
Fair Value, Recurring | Level 3 | MBS put options | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Put options on treasuries | ||
Derivative liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest rate lock commitments | |||
Derivatives: | |||
Balance at beginning of period | $ 23,590 | $ 180,620 | $ 647,045 |
Issuances and additions | 387,498 | 380,443 | 2,169,847 |
Settlements | (275,451) | (377,071) | (1,969,541) |
Other factors | (87,697) | (160,402) | (666,731) |
Sales | 0 | 0 | 0 |
Balance at end of period | 47,940 | 23,590 | 180,620 |
Servicing Rights, net | |||
Derivatives: | |||
Issuances and additions | 277,387 | 647,716 | 1,610,596 |
Other factors | 0 | 0 | |
Servicing Rights: | |||
Balance at beginning of period | 2,025,136 | 1,999,402 | 1,124,302 |
Settlements | 0 | 0 | 0 |
Other factors | 0 | ||
Sales | (180,687) | (765,151) | (383,729) |
Balance at end of period | 1,985,718 | 2,025,136 | 1,999,402 |
Servicing Rights, net | Level 3 | |||
Derivatives: | |||
Change in fair value of servicing rights, net | (136,118) | 143,169 | (351,767) |
Servicing Rights: | |||
Unrealized gain (loss) relating to servicing rights still held | $ (61,100) | $ 710,300 | $ 1,300,000 |
FAIR VALUE - Fair Value Inputs
FAIR VALUE - Fair Value Inputs and Valuation Techniques (Details) | Dec. 31, 2023 $ / loan | Dec. 31, 2022 $ / loan |
Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.046 | 0.050 |
Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.056 | 0.058 |
Minimum | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 72 | 63 |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.168 | 0.161 |
Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.224 | 0.176 |
Maximum | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 126 | 138 |
IRLCs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.027 | 0.084 |
IRLCs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.999 | 0.999 |
IRLCs | Weighted Average | Pull-through rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.767 | 0.753 |
Servicing rights | Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.064 | 0.065 |
Servicing rights | Weighted Average | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.081 | 0.072 |
Servicing rights | Weighted Average | Cost to service (per loan) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 90 | 87 |
FAIR VALUE - Assets Not Measure
FAIR VALUE - Assets Not Measured On Recurring and Nonrecurring Basis (Details) - Senior Notes - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-Term Debt, Fair Value | $ 989,318 | $ 991,822 |
Estimated Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-Term Debt, Fair Value | $ 886,492 | $ 645,495 |
LOANS HELD FOR SALE, AT FAIR _3
LOANS HELD FOR SALE, AT FAIR VALUE - Unpaid Principal Balance of LHFS by Loan Type (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 2,133,082 | $ 2,430,630 |
Fair value adjustment | (202) | (57,203) |
Loans held for sale, at fair value | $ 2,132,880 | $ 2,373,427 |
Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Fixed | Conforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 1,211,449 | $ 1,441,497 |
Fixed | Conforming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 57% | 59% |
Fixed | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 777,860 | $ 815,921 |
Fixed | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 36% | 34% |
ARM | Conforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 18,592 | $ 52,513 |
ARM | Conforming | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 1% | 2% |
ARM | Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 20,403 | $ 17,788 |
ARM | Government | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 1% | 1% |
Other - residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 104,778 | $ 101,137 |
Other - residential mortgage loans | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 5% | 4% |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 0 | $ 1,774 |
Consumer loans | Product Concentration Risk | Receivables Benchmark | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 0% | 0% |
LOANS HELD FOR SALE, AT FAIR _4
LOANS HELD FOR SALE, AT FAIR VALUE - Summary of Changes in Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |||
Balance at beginning of period | $ 2,373,427 | $ 8,136,817 | |
Origination and purchase of loans | 22,393,729 | 53,094,767 | |
Sales | (23,013,399) | (59,174,022) | |
Repurchases | 443,935 | 633,298 | |
Principal payments | (129,752) | (132,322) | |
Fair value gain (loss) | 64,940 | (185,111) | $ (104,715) |
Balance at end of period | $ 2,132,880 | $ 2,373,427 | $ 8,136,817 |
LOANS HELD FOR SALE, AT FAIR _5
LOANS HELD FOR SALE, AT FAIR VALUE - Components of Gain on Origination and Sale of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | |||
(Discount) premium from loan sales | $ (135,943) | $ (933,547) | $ 1,882,557 |
Servicing rights additions | 277,387 | 647,716 | 1,610,596 |
Unrealized losses from derivative assets and liabilities | (35,430) | (134,519) | (308,200) |
Realized gains from derivative assets and liabilities | 55,631 | 1,215,013 | 347,014 |
Discount points, rebates and lender paid costs | 306,115 | 275,981 | (206,716) |
Fair value gain (loss) on loans held for sale | 64,940 | (185,111) | (104,715) |
Provision for loan loss obligation for loans sold | (8,179) | (136,993) | (7,185) |
Total gain on origination and sale of loans, net | $ 524,521 | $ 748,540 | $ 3,213,351 |
LOANS HELD FOR SALE, AT FAIR _6
LOANS HELD FOR SALE, AT FAIR VALUE - Debt Securities, Held-For-Sale Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale, at fair value | $ 2,132,880 | $ 2,373,427 | $ 8,136,817 |
Loans held-for-sale unpaid principal balance | 2,133,082 | 2,430,630 | |
Difference | (202) | (57,203) | |
Financial Asset, 0 to 89 Days Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale, at fair value | 2,113,106 | 2,353,732 | |
Loans held-for-sale unpaid principal balance | 2,108,125 | 2,405,842 | |
Difference | 4,980 | (52,110) | |
90 days delinquent | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale, at fair value | 19,774 | 19,695 | |
Loans held-for-sale unpaid principal balance | 24,957 | 24,788 | |
Difference | $ (5,182) | $ (5,093) |
SERVICING RIGHTS, AT FAIR VAL_3
SERVICING RIGHTS, AT FAIR VALUE - Components of Service Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | $ 145,090,199 | $ 141,170,931 |
Agency | ||
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | 94,243,545 | 93,971,606 |
Government | ||
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | 40,535,399 | 37,096,679 |
Other | ||
Servicing Assets at Fair Value [Line Items] | ||
Total servicing portfolio | $ 10,311,255 | $ 10,102,646 |
SERVICING RIGHTS, AT FAIR VAL_4
SERVICING RIGHTS, AT FAIR VALUE - Change in Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance at beginning of period | $ 2,025,136 | $ 1,999,402 | $ 1,124,302 |
Servicing rights additions | 277,387 | 647,716 | 1,610,596 |
Sales proceeds, net | (180,687) | (765,151) | (383,729) |
Due to changes in valuation inputs or assumptions | 2,227 | 363,064 | 68,399 |
Due to collection/realization of cash flows | (149,211) | (230,449) | (421,624) |
Realized gains on sales of servicing rights | 10,866 | 10,554 | 1,458 |
Balance at end of period | $ 1,985,718 | $ 2,025,136 | $ 1,999,402 |
SERVICING RIGHTS, AT FAIR VAL_5
SERVICING RIGHTS, AT FAIR VALUE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Servicing Asset At Fair Value, Proceeds On Sale | $ 132,000,000 | $ 0 |
SERVICING RIGHTS, AT FAIR VAL_6
SERVICING RIGHTS, AT FAIR VALUE - Component of Loan Servicing Fee Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |||
Contractual servicing fees | $ 395,213 | $ 423,528 | $ 382,501 |
Late, ancillary and other fees | 97,598 | 25,622 | 11,179 |
Servicing fee income | $ 492,811 | $ 449,150 | $ 393,680 |
SERVICING RIGHTS, AT FAIR VAL_7
SERVICING RIGHTS, AT FAIR VALUE - Changes in Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |||
Due to changes in valuation inputs or assumptions | $ 2,227 | $ 363,064 | $ 68,399 |
Due to collection/realization of cash flows | (149,211) | (230,449) | (421,624) |
Realized gains (losses) on sales of servicing rights, net | 10,486 | (3,663) | (9,759) |
Net loss from derivatives hedging servicing rights | (47,919) | (323,309) | (82,878) |
Changes in fair value of servicing rights, net | $ (184,417) | $ (194,357) | $ (445,862) |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Changes in fair value of servicing rights, net | Changes in fair value of servicing rights, net | Changes in fair value of servicing rights, net |
SERVICING RIGHTS, AT FAIR VAL_8
SERVICING RIGHTS, AT FAIR VALUE - Servicing Rights Sensitivity Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Transfers and Servicing [Abstract] | ||
Fair value of servicing rights, net | $ 1,985,718 | $ 2,025,136 |
Discount Rate, Increase 1% | (76,862) | (81,431) |
Discount Rate, Increase 2% | (148,438) | (157,281) |
Cost of Servicing. Increase 10% | (20,103) | (19,017) |
Cost of Servicing. Increase 20% | (40,319) | (38,127) |
Prepayment Speed, Increase 10% | (22,425) | (18,863) |
Prepayment Speed, Increase 20% | $ (44,128) | $ (37,546) |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Realized and Unrealized Gains on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | $ (27,718) | $ 757,185 | $ (44,064) |
Derivative assets, at fair value | 93,574 | 39,411 | |
Derivative liabilities, at fair value | $ 84,962 | $ 67,492 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues, Net of Interest Expense | Revenues, Net of Interest Expense | Revenues, Net of Interest Expense |
Interest rate lock commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | $ 24,350 | $ (157,030) | $ (466,425) |
Notional, assets | 2,007,175 | 1,591,807 | |
Derivative assets, at fair value | 49,112 | 29,374 | |
Notional, liabilities | 163,161 | 622,706 | |
Derivative liabilities, at fair value | 1,172 | 5,784 | |
Forward sale contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional, assets | 449,419 | 309,809 | |
Derivative assets, at fair value | 16,610 | 6,676 | |
Notional, liabilities | 2,234,930 | 2,963,685 | |
Derivative liabilities, at fair value | 83,728 | 43,482 | |
Forward sale contracts | Gain on origination and sale of loans, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | 6,958 | 1,195,708 | 540,811 |
Forward sale contracts | Change in fair value of servicing rights, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | (13,763) | (114,244) | (89,127) |
Put options on treasuries | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional, assets | 0 | 0 | |
Derivative assets, at fair value | 0 | 0 | |
Notional, liabilities | 9,730 | 8,050 | |
Derivative liabilities, at fair value | 62 | 10,831 | |
Interest rate swap futures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional, assets | 3,240 | 0 | |
Derivative assets, at fair value | 26,476 | 0 | |
Notional, liabilities | 0 | 211 | |
Derivative liabilities, at fair value | 0 | 7,395 | |
Interest rate swap futures | Gain on origination and sale of loans, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | (31,328) | (81,259) | (111,300) |
Interest rate swap futures | Change in fair value of servicing rights, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | (22,572) | (201,259) | 9,071 |
MBS put options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional, assets | 200,000 | 400,000 | |
Derivative assets, at fair value | 1,376 | 3,361 | |
Notional, liabilities | 0 | 0 | |
Derivative liabilities, at fair value | 0 | 0 | |
Put options | Gain on origination and sale of loans, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | 20,221 | 123,075 | 75,728 |
Put options | Change in fair value of servicing rights, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses on derivative financial instruments | $ (11,584) | $ (7,806) | $ (2,822) |
BALANCE SHEET NETTING (Details)
BALANCE SHEET NETTING (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Net amounts presented in consolidated balance sheet | $ 93,574 | $ 39,411 |
Liabilities: | ||
Net amounts presented in consolidated balance sheet | 84,962 | 67,492 |
Total liabilities, gross amounts recognized | 3,335,246 | 3,539,873 |
Total liabilities, gross amounts offset in consolidated balance sheet | (16,981) | (32,710) |
Total liabilities, net amounts presented in consolidated balance sheet | 3,318,265 | 3,507,163 |
Total liabilities, gross amounts not offset in consolidated balance sheet, financial instruments | (3,234,475) | (3,445,455) |
Total liabilities, gross amounts not offset in consolidated balance sheet, cash collateral | (60,188) | (54,496) |
Total liabilities, net amount | 23,602 | 7,212 |
Warehouse and other lines of credit | ||
Liabilities: | ||
Derivative liability, gross amounts offset in consolidated balance sheet | 0 | 0 |
Securities loaned, gross/net amounts recognized | 1,947,057 | 2,146,602 |
Securities loaned, gross amounts not offset in consolidated balance sheet, financial instruments | (1,947,057) | (2,146,602) |
Securities loaned, gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Securities loaned, net amount | 0 | 0 |
Secured debt obligations, net | ||
Liabilities: | ||
Derivative liability, gross amounts offset in consolidated balance sheet | 0 | 0 |
Securities loaned, gross/net amounts recognized | 1,287,418 | 1,298,853 |
Securities loaned, gross amounts not offset in consolidated balance sheet, financial instruments | (1,287,418) | (1,298,853) |
Securities loaned, gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Securities loaned, net amount | 0 | 0 |
Forward sale contracts | ||
Assets: | ||
Gross amounts recognized | 33,591 | 39,386 |
Gross amounts offset in consolidated balance sheet | (16,981) | (32,710) |
Net amounts presented in consolidated balance sheet | 16,610 | 6,676 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Derivative asset, net amount | 16,610 | 6,676 |
Liabilities: | ||
Derivative liability, gross amounts recognized | 100,709 | 76,192 |
Derivative liability, gross amounts offset in consolidated balance sheet | (16,981) | (32,710) |
Net amounts presented in consolidated balance sheet | 83,728 | 43,482 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | (60,188) | (36,270) |
Derivative liability, net amount | 23,540 | 7,212 |
Interest rate swap futures | ||
Assets: | ||
Gross amounts recognized | 26,476 | |
Gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | 26,476 | 0 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | |
Derivative asset, net amount | 26,476 | |
Liabilities: | ||
Derivative liability, gross amounts recognized | 7,395 | |
Derivative liability, gross amounts offset in consolidated balance sheet | 0 | |
Net amounts presented in consolidated balance sheet | 0 | 7,395 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | |
Gross amounts not offset in consolidated balance sheet, cash collateral | (7,395) | |
Derivative liability, net amount | 0 | |
MBS put options | ||
Assets: | ||
Gross amounts recognized | 1,376 | 3,361 |
Gross amounts offset in consolidated balance sheet | 0 | 0 |
Net amounts presented in consolidated balance sheet | 1,376 | 3,361 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Derivative asset, net amount | 1,376 | 3,361 |
Liabilities: | ||
Net amounts presented in consolidated balance sheet | 0 | 0 |
Total assets | ||
Assets: | ||
Gross amounts recognized | 61,443 | 42,747 |
Gross amounts offset in consolidated balance sheet | (16,981) | (32,710) |
Net amounts presented in consolidated balance sheet | 44,462 | 10,037 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | 0 |
Derivative asset, net amount | 44,462 | 10,037 |
Put options on treasuries | ||
Assets: | ||
Net amounts presented in consolidated balance sheet | 0 | 0 |
Liabilities: | ||
Derivative liability, gross amounts recognized | 62 | 10,831 |
Derivative liability, gross amounts offset in consolidated balance sheet | 0 | 0 |
Net amounts presented in consolidated balance sheet | 62 | 10,831 |
Gross amounts not offset in consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in consolidated balance sheet, cash collateral | 0 | (10,831) |
Derivative liability, net amount | $ 62 | $ 0 |
VARIABLE INTEREST ENTITIES - Co
VARIABLE INTEREST ENTITIES - Consolidated VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Loans held for sale | $ 2,132,880 | $ 2,373,427 |
Servicing rights at fair value, amount | 1,999,763 | 2,037,447 |
Total assets | 6,151,048 | 6,609,934 |
Warehouse and other lines of credit | 1,947,057 | 2,146,602 |
Debt obligations, net | 2,274,011 | 2,289,319 |
Total liabilities | 5,446,564 | 5,688,461 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Loans held for sale | 510,080 | 497,574 |
Restricted cash | 2,704 | 6,735 |
Servicing rights at fair value, amount | 617,878 | 544,729 |
Other assets | 84,524 | 54,887 |
Total assets | 1,215,186 | 1,103,925 |
Warehouse and other lines of credit | 500,000 | 500,000 |
Total liabilities | 902,689 | 865,024 |
Variable Interest Entity, Primary Beneficiary | MSR facilities | ||
Variable Interest Entity [Line Items] | ||
Debt obligations, net | 174,750 | 116,874 |
Variable Interest Entity, Primary Beneficiary | Servicing advance facilities | ||
Variable Interest Entity [Line Items] | ||
Debt obligations, net | 27,939 | 48,484 |
Variable Interest Entity, Primary Beneficiary | Term notes | ||
Variable Interest Entity [Line Items] | ||
Debt obligations, net | $ 200,000 | $ 199,666 |
VARIABLE INTEREST ENTITIES - No
VARIABLE INTEREST ENTITIES - Nonconsolidated VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Retained interests | $ 92,901 | $ 94,243 |
Total assets | 6,151,048 | 6,609,934 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 113,264 | 114,653 |
Maximum exposure to loss | 113,264 | 114,653 |
Variable Interest Entity, Not Primary Beneficiary | Corporate Joint Venture | ||
Variable Interest Entity [Line Items] | ||
Investments in joint ventures | 20,363 | 20,410 |
Maximum exposure to loss | 20,363 | 20,410 |
Total assets in VIEs | 27,171 | 38,682 |
Variable Interest Entity, Not Primary Beneficiary | Retained Interests | ||
Variable Interest Entity [Line Items] | ||
Retained interests | 92,901 | 94,243 |
Maximum exposure to loss | 92,901 | 94,243 |
Total assets in VIEs | $ 2,200,406 | $ 2,309,739 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Corporate Joint Venture | |||
Variable Interest Entity [Line Items] | |||
Remaining principal balance of loans | $ 27,171 | $ 38,682 | |
Pro rata share of net earnings in joint ventures | $ 11,900 | 21,000 | 17,200 |
Pledged as Collateral | |||
Variable Interest Entity [Line Items] | |||
Remaining principal balance of loans | 2,200,406 | $ 2,309,739 | |
Pledged as Collateral | Loans 90 days or more past due | |||
Variable Interest Entity [Line Items] | |||
Remaining principal balance of loans | $ 9,000 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 305,161 | $ 290,158 |
Accumulated depreciation and amortization | (234,352) | (197,269) |
Property and equipment, net | 70,809 | 92,889 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 91,061 | 93,818 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 6,759 | 6,837 |
Software development | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 165,119 | 147,424 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 29,180 | 29,150 |
Work in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 13,042 | $ 12,929 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 41,300,000 | $ 42,000,000 | $ 35,000,000 |
Depreciation expense of software development | 27,700,000 | 20,400,000 | 11,500,000 |
Impairment charges | $ 1,400,000 | $ 12,600,000 | $ 0 |
PROPERTY AND EQUIPMENT, NET - C
PROPERTY AND EQUIPMENT, NET - Capitalized Computer Software Development Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Cost | $ 165,119 | $ 147,424 |
Accumulated amortization | (122,861) | (95,777) |
Software development, net | $ 42,258 | $ 51,647 |
PROPERTY AND EQUIPMENT, NET - F
PROPERTY AND EQUIPMENT, NET - Future Depreciation Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
2024 | $ 25,615 | |
2025 | 13,990 | |
2026 | 2,653 | |
Software development, net | $ 42,258 | $ 51,647 |
LEASES - Additional Information
LEASES - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) lease | |
Lessee, Lease, Description [Line Items] | |
Operating lease, impairment loss | $ 0.9 |
Number of operating leases that have not yet commenced | lease | 3 |
Aggregate undiscounted required payment for operating leases that have not yet commenced | $ 0.4 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 5 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease expense: | |||
Operating leases | $ 16,864 | $ 24,961 | $ 28,322 |
Short-term leases | 1,739 | 2,373 | 747 |
Sublease income | (1,774) | (187) | (1,049) |
Lease expense, net included in occupancy expense | 16,829 | 27,147 | $ 28,020 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Cash paid for operating leases | 23,975 | 31,350 | |
New leases entered into during the year | $ 8,852 | $ 16,922 | |
Weighted average remaining lease term (years) | 3 years 3 months 18 days | 3 years 7 months 6 days | |
Weighted average discount rate | 6.60% | 5.70% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 19,201 | |
2025 | 14,456 | |
2026 | 10,017 | |
2027 | 8,507 | |
2028 | 2,816 | |
Thereafter | 116 | |
Total operating lease payments | 55,113 | |
Less: Imputed interest | (5,921) | |
Operating lease liability | $ 49,192 | $ 61,675 |
OTHER ASSETS - Schedule (Detail
OTHER ASSETS - Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Servicing advances | $ 118,414 | $ 98,704 |
Margin call receivable | 60,188 | 36,270 |
Prepaid expenses | 27,476 | 41,317 |
Loan related receivables | 9,408 | 18,858 |
Joint ventures | 7,726 | 15,843 |
Servicing related receivables | 4,610 | 61,216 |
Income tax receivable | 2,611 | 10,725 |
Deferred tax asset | 1,976 | 941 |
Other | 21,689 | 17,387 |
Total | $ 254,098 | $ 301,261 |
OTHER ASSETS - Additional Infor
OTHER ASSETS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | |||
Accounts receivable, allowance for credit loss | $ (3.1) | $ (2.8) | |
Accounts receivable write-offs | $ (0.4) | $ (0.4) | $ (1.5) |
WAREHOUSE AND OTHER LINES OF _3
WAREHOUSE AND OTHER LINES OF CREDIT - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Oct. 30, 2021 | Dec. 31, 2023 USD ($) lineOfCredit | Dec. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||||
Number of lines of credit held | lineOfCredit | 8 | |||
Number of securitization facilities | lineOfCredit | 1 | |||
Restricted cash | $ 85,149 | $ 116,545 | ||
Warehouse Agreement Borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Restricted cash as collateral | 7,000 | 11,000 | ||
Restricted cash | $ 4,300 | $ 4,300 | ||
Warehouse Agreement Borrowings | Minimum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (as a percent) | 1.37% | |||
Warehouse Agreement Borrowings | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (as a percent) | 2.25% | |||
Warehouse and Revolving Credit Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 3,125,000 | |||
Securitization Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, term | 3 years | |||
Securitization Facilities | 2021-3 Securitization Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 500,000 | |||
Debt instrument, term | 3 years |
WAREHOUSE AND OTHER LINES OF _4
WAREHOUSE AND OTHER LINES OF CREDIT - Warehouse Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Warehouse agreement borrowings | $ 1,947,057 | $ 2,146,602 |
Warehouse and Revolving Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 901,000 | |
Uncommitted Amount | 2,224,000 | |
Total Facility Amount | 3,125,000 | |
Warehouse agreement borrowings | 1,947,057 | 2,146,602 |
Warehouse and Revolving Credit Facilities | Facility 1 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 400,000 | |
Uncommitted Amount | 350,000 | |
Total Facility Amount | 750,000 | |
Warehouse agreement borrowings | 391,418 | 382,098 |
Warehouse and Revolving Credit Facilities | Facility 2 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 1,000 | |
Uncommitted Amount | 299,000 | |
Total Facility Amount | 300,000 | |
Warehouse agreement borrowings | 155,676 | 236,144 |
Warehouse and Revolving Credit Facilities | Facility 3 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 300,000 | |
Total Facility Amount | 300,000 | |
Warehouse agreement borrowings | 175,348 | 177,900 |
Warehouse and Revolving Credit Facilities | Facility 4 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 175,000 | |
Total Facility Amount | 175,000 | |
Warehouse agreement borrowings | 127,052 | 202,548 |
Warehouse and Revolving Credit Facilities | Facility 5 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 200,000 | |
Total Facility Amount | 200,000 | |
Warehouse agreement borrowings | 1,638 | 0 |
Warehouse and Revolving Credit Facilities | Facility 6 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 600,000 | |
Total Facility Amount | 600,000 | |
Warehouse agreement borrowings | 359,401 | 180,273 |
Warehouse and Revolving Credit Facilities | Facility 7 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 0 | |
Warehouse agreement borrowings | 0 | 295,064 |
Warehouse and Revolving Credit Facilities | Facility 8 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 0 | |
Uncommitted Amount | 300,000 | |
Total Facility Amount | 300,000 | |
Warehouse agreement borrowings | 236,524 | 172,575 |
Warehouse and Revolving Credit Facilities | Facility 9 | ||
Line of Credit Facility [Line Items] | ||
Committed Amount | 500,000 | |
Uncommitted Amount | 0 | |
Total Facility Amount | 500,000 | |
Warehouse agreement borrowings | $ 500,000 | $ 500,000 |
WAREHOUSE AND OTHER LINES OF _5
WAREHOUSE AND OTHER LINES OF CREDIT - Information on Warehouse Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||
Loans held for sale | $ 2,132,880 | $ 2,373,427 | |
Warehouse Agreement Borrowings | |||
Line of Credit Facility [Line Items] | |||
Maximum outstanding balance during the period | 2,280,996 | 7,672,559 | $ 9,180,276 |
Average balance outstanding during the period | 1,704,717 | 4,127,822 | 8,149,855 |
Loans held for sale | $ 2,065,878 | $ 2,214,656 | $ 7,815,347 |
Weighted average interest rate during the period | 7.04% | 2.97% | 2.21% |
DEBT OBLIGATIONS - Information
DEBT OBLIGATIONS - Information on Outstanding Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt obligations, net | $ 2,274,011 | $ 2,289,319 |
Secured debt obligations, net | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 1,284,693 | 1,297,497 |
Secured debt obligations, net | Medium-term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 200,000 | 199,666 |
Secured debt obligations, net | Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 1,084,693 | 1,097,831 |
Secured debt obligations, net | MSR facilities | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 980,760 | 963,834 |
Secured debt obligations, net | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 75,994 | 85,513 |
Secured debt obligations, net | Servicing advance facilities | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | 27,939 | 48,484 |
Unsecured debt obligations, net: | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt obligations, net | $ 989,318 | $ 991,822 |
DEBT OBLIGATIONS - MSR Faciliti
DEBT OBLIGATIONS - MSR Facilities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||||
Servicing rights at fair value, amount | $ 1,999,763 | $ 2,037,447 | |||
Pledged as Collateral | |||||
Debt Instrument [Line Items] | |||||
Servicing rights at fair value, amount | 617,878 | $ 544,729 | |||
Fifth Secured Credit Facility | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 250,000 | ||||
Secured Debt [Member] | GMSR VFN | GNMA MSRs | |||||
Debt Instrument [Line Items] | |||||
Outstanding balance | 175,000 | ||||
Deferred financing costs | 300 | ||||
Secured Debt [Member] | GMSR VFN | Maximum | GNMA MSRs | |||||
Debt Instrument [Line Items] | |||||
Face amount | 175,000 | ||||
Secured Debt [Member] | Third Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 540,000 | ||||
Option to increase borrowing capacity | $ 600,000 | ||||
Deferred financing costs | 2,500 | ||||
Secured Debt [Member] | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding balance | 465,100 | ||||
Secured Debt [Member] | Revolving credit facility | Pledged as Collateral | |||||
Debt Instrument [Line Items] | |||||
Servicing rights at fair value, amount | 716,800 | ||||
Secured Debt [Member] | Fourth Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 500,000 | ||||
Servicing rights at fair value, amount | 596,800 | ||||
Outstanding balance | $ 343,400 |
DEBT OBLIGATIONS - Securities F
DEBT OBLIGATIONS - Securities Financing Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Retained interests | $ 92,901 | $ 94,243 |
Variable Interest Entity, Not Primary Beneficiary | Pledged as Collateral | ||
Debt Instrument [Line Items] | ||
Retained interests | 92,901 | $ 94,243 |
Secured Debt [Member] | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 76,000 | |
Secured Debt [Member] | Minimum | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Advance rate | 70% | |
Secured Debt [Member] | Maximum | Securities financing facilities | ||
Debt Instrument [Line Items] | ||
Advance rate | 85% |
DEBT OBLIGATIONS - Servicing Ad
DEBT OBLIGATIONS - Servicing Advance Facilities (Details) - Secured Debt [Member] - USD ($) | Dec. 31, 2023 | Sep. 30, 2020 |
2020-VF1 Notes | LDLLC's Right to Reimbursement for Advances Made | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 27,900,000 | |
GMSR VFN | Servicing Advance Reimbursement Amounts | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 0 | |
Advance Receivables Trust | 2020-VF1 Notes | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 100,000,000 |
DEBT OBLIGATIONS - Term Notes (
DEBT OBLIGATIONS - Term Notes (Details) - Secured Debt [Member] - Medium-term Notes [Member] | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
Outstanding balance, gross | $ 200,000,000 |
Deferred financing costs | $ 0 |
DEBT OBLIGATIONS - Senior Notes
DEBT OBLIGATIONS - Senior Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Outstanding balance | $ 2,274,011 | $ 2,289,319 | |||
Gain on extinguishment of debt | 1,690 | 10,528 | $ 0 | ||
Unsecured term loan | 6.50% Senior Unsecured Notes Due 2025 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 500,000 | ||||
Stated interest rate (as a percent) | 6.50% | ||||
Outstanding balance | 497,800 | ||||
Deferred financing costs | 3,300 | ||||
Extinguishment of debt, amount | $ 2,300 | ||||
Extinguishment of debt, purchase price, percentage of par | 79.78% | ||||
Gain on extinguishment of debt | $ 400 | ||||
Unsecured term loan | 6.125% Senior Unsecured Notes Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 600,000 | ||||
Stated interest rate (as a percent) | 6.125% | ||||
Outstanding balance | 499,400 | ||||
Deferred financing costs | 4,500 | ||||
Redemption price (as a percent) | 100% | ||||
Extinguishment of debt, amount | $ 3,100 | $ 97,500 | |||
Extinguishment of debt, purchase price, percentage of par | 58.55% | 87.90% | |||
Gain on extinguishment of debt | $ 1,300 | $ 10,500 | |||
Unsecured term loan | 6.125% Senior Unsecured Notes Due 2028 | Any time prior to April 1, 2024 | |||||
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 106.125% | ||||
Percentage of principal amount to be redeemed | 40% |
DEBT OBLIGATIONS - Interest Exp
DEBT OBLIGATIONS - Interest Expense (Details) - Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 0.90% |
Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 3.50% |
ACCOUNTS PAYABLE, ACCRUED EXP_3
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 108,642 | $ 139,714 |
Deferred tax liability | 80,171 | 122,404 |
Loan loss obligation for sold loans | 31,980 | 70,797 |
Accrued compensation and benefits | 54,084 | 52,759 |
TRA liability | 57,258 | 50,730 |
Joint ventures | 15,602 | 25,619 |
Servicing rights, at fair value | 14,045 | 12,311 |
Dividends and dividend equivalents payable | 2,919 | 7,130 |
Accrued pricing adjustments on sold loans | 831 | 3,167 |
Income tax payable | 943 | 0 |
Other | 13,496 | 4,065 |
Total | $ 379,971 | $ 488,696 |
EQUITY - Additional Information
EQUITY - Additional Information (Details) $ in Thousands | Feb. 12, 2021 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Equity [Abstract] | |||
Noncontrolling interest | $ 351,303 | $ 487,974 | |
Stock, exchange ratio | 1 |
EQUITY - Summary of Ownership (
EQUITY - Summary of Ownership (Details) - LD Holdings - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Noncontrolling Interest [Line Items] | ||
Holdco Units (in shares) | 322,288,952 | 315,216,801 |
Ownership percentage | 100% | 100% |
loanDepot, Inc. | ||
Noncontrolling Interest [Line Items] | ||
Holdco Units (in shares) | 181,054,423 | 169,523,682 |
Ownership percentage by noncontrolling owners | 56.18% | 53.78% |
Continuing LLC Members | ||
Noncontrolling Interest [Line Items] | ||
Holdco Units (in shares) | 141,234,529 | 145,693,119 |
Ownership percentage by parent | 43.82% | 46.22% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic earnings per share: | |||
Net (loss) income allocated to common stockholders | $ (110,142,000) | $ (273,020,000) | $ 113,524,000 |
Weighted average shares - basic (in shares) | 174,906,063 | 156,030,350 | 129,998,894 |
Class B | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common stock, shares, outstanding | 0 | 0 | |
Class A | |||
Basic earnings per share: | |||
Net (loss) income allocated to common stockholders | $ (49,042,000) | $ (103,026,000) | $ 13,998,000 |
Weighted average shares - basic (in shares) | 77,879,392 | 58,879,239 | 16,029,314 |
Earnings per share - basic (in usd per share) | $ (0.63) | $ (1.75) | $ 0.87 |
Diluted earnings per share: | |||
Earnings per share - diluted (in usd per share) | $ (0.63) | $ (1.75) | $ 0.87 |
Class D | |||
Basic earnings per share: | |||
Net (loss) income allocated to common stockholders | $ (61,100,000) | $ (169,994,000) | $ 99,526,000 |
Weighted average shares - basic (in shares) | 97,026,671 | 97,151,111 | 113,969,580 |
Earnings per share - basic (in usd per share) | $ (0.63) | $ (1.75) | $ 0.87 |
Diluted earnings per share: | |||
Earnings per share - diluted (in usd per share) | $ (0.63) | $ (1.75) | $ 0.87 |
EARNINGS PER SHARE - Antidiluti
EARNINGS PER SHARE - Antidilutive Securities Excluded From EPS (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 164,708,649 | 177,819,896 | 193,657,433 |
Class C common stock | Class C | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 147,789,060 | 163,541,101 | 192,465,222 |
Stock options, restricted stock units, ESPP shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 16,919,589 | 14,278,795 | 1,192,211 |
Share-Based Payment Arrangement | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | ||
Nonqualified Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 |
COMPENSATION PLANS - Additional
COMPENSATION PLANS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 22 | $ 20.6 | $ 67.1 |
Unrecognized compensation | $ 37.9 | ||
Employer matching contribution, percent of match | 50% | ||
Matching contribution, percent of employees' gross pay | 6% | ||
Matching contributions | $ 2.7 | $ 12.9 | $ 25.4 |
Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 | |
RSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Holdco Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognition period | 1 year 8 months 23 days | ||
Service-Based Restricted Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Service-Based Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price of common stock, percent | 85% | ||
Authorized compensation withheld, purchase, common stock | 10% | ||
Employee Stock | Maximum | Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 10 years | ||
2021 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized (in shares) | 16,500,000 | ||
2022 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized (in shares) | 5,000,000 |
COMPENSATION PLANS - Valuation
COMPENSATION PLANS - Valuation Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 4.19% | 3.69% |
Expected volatility | 62% | 70% |
Expected life | 5 years 8 months 26 days | 5 years 7 months 9 days |
Fair value per share (in usd per share) | $ 1.25 | $ 1.10 |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 4.61% | 3.77% |
Expected volatility | 64% | 70% |
Expected life | 6 months | 6 months |
Fair value per share (in usd per share) | $ 1.75 | $ 1.60 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 4.37% | 3.20% |
Expected volatility | 62% | 70% |
COMPENSATION PLANS - Stock Opti
COMPENSATION PLANS - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Weighted-Average Remaining Contractual Term | ||
Weighted-average remaining contractual term, vested and expected to vest | 7 years 7 months 6 days | |
Stock Options | ||
Shares | ||
Outstanding - beginning of period (in shares) | 7,000,000 | |
Granted (in shares) | 350,000 | |
Forfeited/cancelled (in shares) | (2,000,000) | |
Outstanding - end of period (in shares) | 5,350,000 | 7,000,000 |
Exercisable (in shares) | 4,250,000 | |
Vested and expected to vest (in shares) | 1,100,000 | |
Weighted Average Exercise Price | ||
Beginning balance weighted average outstanding exercise price (in usd per share) | $ 1.73 | |
Weighted average granted exercise price (in usd per share) | 2.09 | |
Weighted average forfeited/cancelled exercise price (in usd per share) | 1.57 | |
Ending balance weighted average outstanding exercise price (in usd per share) | 1.82 | $ 1.73 |
Weighted average exercisable exercise price (in usd per share) | 1.64 | |
Weighted average vested and expected to vest exercise price (in usd per share) | $ 2.52 | |
Weighted-Average Remaining Contractual Term | ||
Weighted-average remaining contractual term, outstanding | 4 years 10 months 24 days | 5 years 7 months 6 days |
Weighted-average remaining contractual term, exercisable | 4 years 2 months 12 days | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 9,102 | $ 480 |
Aggregate intrinsic value exercisable | 8,000 | |
Aggregate intrinsic value, vested and expected to vest | $ 1,102 |
COMPENSATION PLANS - Summary of
COMPENSATION PLANS - Summary of RSU Activity (Details) - RSUs | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Unvested - beginning of period (in shares) | shares | 25,103,600 |
Granted (in shares) | shares | 6,371,638 |
Vested (in shares) | shares | (4,738,693) |
Forfeited/Cancelled (in shares) | shares | (5,297,726) |
Unvested - end of period (in shares) | shares | 21,438,819 |
Weighted Average Exercise Price | |
Unvested - beginning of period (in usd per share) | $ / shares | $ 3.43 |
Granted (in usd per share) | $ / shares | 2.21 |
Vested (in usd per share) | $ / shares | 3.63 |
Forfeited/Cancelled (in usd per share) | $ / shares | 3.63 |
Unvested - end of period (in usd per share) | $ / shares | $ 2.97 |
COMPENSATION PLANS - Holdco Uni
COMPENSATION PLANS - Holdco Unit Activity (Details) - Holdco Units | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Unvested - beginning of period (in shares) | shares | 5,744,200 |
Vested (in shares) | shares | (2,978,054) |
Forfeited/Cancelled (in shares) | shares | (564,274) |
Unvested - end of period (in shares) | shares | 2,201,872 |
Weighted Average Exercise Price | |
Unvested - beginning of period (in usd per share) | $ / shares | $ 0.50 |
Vested (in usd per share) | $ / shares | 0.50 |
Forfeited/Cancelled (in usd per share) | $ / shares | 0.50 |
Unvested - end of period (in usd per share) | $ / shares | $ 0.50 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 240 | $ (162) | $ 8,936 |
State | 139 | 846 | 3,120 |
Total current | 379 | 684 | 12,056 |
Deferred | |||
Federal | (27,512) | (66,624) | 26,623 |
State | (15,663) | (13,652) | 4,692 |
Total deferred | (43,175) | (80,276) | 31,315 |
Total (benefit) provision for income taxes | $ (42,796) | $ (79,592) | $ 43,371 |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the statutory federal income tax rate to effective income tax rate | |||
Federal income tax at statutory rate | 21% | 21% | 21% |
State and local income taxes (net of federal benefit) | 2.80% | 3% | 0.90% |
Non-controlling interests | (9.50%) | (10.30%) | (16.20%) |
Goodwill impairment | 0% | (0.60%) | 0% |
State rate change | 1.90% | (1.50%) | 0% |
Change in valuation allowance | 0.10% | (0.10%) | 0% |
Other, net | (0.90%) | 0% | 0.80% |
Effective income tax rate | 15.40% | 11.50% | 6.50% |
INCOME TAXES - Components of Ne
INCOME TAXES - Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Accrued compensation | $ 16 | $ 41 |
Net operating loss | 87,978 | 70,010 |
Tax credits | 421 | 447 |
Depreciation | 8 | 7 |
Acquired intangible assets | 157 | 0 |
Charitable contributions carryover | 83 | 0 |
Gross deferred tax assets before valuation allowance | 88,663 | 70,505 |
Valuation allowance | (314) | (386) |
Net deferred tax assets | 88,349 | 70,119 |
Deferred tax liabilities: | ||
Outside basis difference | 166,544 | 191,437 |
Acquired intangible assets | 0 | 145 |
Total deferred tax liabilities | 166,544 | 191,582 |
Net deferred tax liabilities | $ (78,195) | $ (121,463) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Combined federal and state rate, percent | 26.20% | 27.40% | 26% |
TRA liability | $ 57,258,000 | $ 50,730,000 | |
Interest or penalties related to uncertain tax positions | $ 0 | $ 0 | $ 0 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 497 | $ 654 | $ 0 |
Increases related to positions taken during prior years | 0 | 0 | 540 |
Increases related to positions taken during the current year | 0 | 0 | 114 |
Increases related to positions settled with tax authorities | 212 | 0 | 0 |
Decreases due to a lapse of applicable statute of limitations | (70) | (157) | 0 |
Ending balance | $ 639 | $ 497 | $ 654 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Amounts payable to joint ventures, net | $ 13,496 | $ 4,065 | |
Corporate Joint Venture | |||
Related Party Transaction [Line Items] | |||
Loan processing and administrative services fee income | 21,970 | 18,534 | $ 15,023 |
Loan origination broker fees expense | 132,345 | 120,392 | $ 90,266 |
Amounts payable to joint ventures, net | $ 7,876 | $ 9,776 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |||
Tax receivable agreement, payment | $ 0 | $ 2,600,000 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||
Dec. 24, 2020 member | Jun. 30, 2023 complaint | Mar. 31, 2022 complaint | Oct. 31, 2021 complaint | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 lawsuit | Dec. 31, 2020 USD ($) | |
Other Commitments [Line Items] | |||||||||
Other restricted assets | $ 0 | $ 0 | |||||||
Customer escrow balance | 4,300,000 | 5,100,000 | |||||||
Member | member | 1 | ||||||||
Financing receivable, allowance for credit loss | 31,980,000 | 70,797,000 | $ 29,877,000 | $ 33,591,000 | |||||
TRA liability | $ 57,258,000 | 50,730,000 | |||||||
Shareholder complaints | complaint | 3 | 2 | 4 | ||||||
Consolidated complaints | complaint | 2 | ||||||||
Percent of cash tax savings paid | 85% | ||||||||
MSR facilities | |||||||||
Other Commitments [Line Items] | |||||||||
Financing receivable, allowance for credit loss | $ 500,000 | 1,100,000 | |||||||
Employment Litigation | |||||||||
Other Commitments [Line Items] | |||||||||
Loss contingency, damages sought, value | 75,000,000 | ||||||||
Securities Class Action Litigation | |||||||||
Other Commitments [Line Items] | |||||||||
Loss contingency, number of lawsuits | lawsuit | 2 | ||||||||
Commitments to Extend Credit | |||||||||
Other Commitments [Line Items] | |||||||||
Commitments to originate loans | $ 2,200,000,000 | $ 2,200,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Loan Loss Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 70,797 | $ 29,877 | $ 33,591 |
Provision for loan loss obligations | 8,179 | 136,993 | 7,185 |
Charge-offs | (46,996) | (96,073) | (10,899) |
Balance at end of period | $ 31,980 | $ 70,797 | $ 29,877 |
REGULATORY CAPITAL AND LIQUID_2
REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Mortgage Banking [Abstract] | |
Minimum adjusted net worth balance requirement | $ 405.4 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) individual in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 litigationCase | Mar. 31, 2024 USD ($) | Jan. 08, 2024 individual | |
Pending Litigation | |||
Subsequent Event [Line Items] | |||
Number of litigation cases | litigationCase | 20 | ||
Cyber Security Incident | Forecast | Maximum | |||
Subsequent Event [Line Items] | |||
Estimate of possible loss | $ 17 | ||
Cyber Security Incident | Forecast | Minimum | |||
Subsequent Event [Line Items] | |||
Estimate of possible loss | $ 12 | ||
Subsequent Event | Cyber Security Incident | |||
Subsequent Event [Line Items] | |||
Number of individuals | individual | 16.9 |
Uncategorized Items - ldi-20231
Label | Element | Value |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | us-gaap_MinorityInterestDecreaseFromRedemptions | $ (338,000) |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 0 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 160,617,000 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 63,338,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | (12,852,000) |
Adjustments To Additional Paid In Capital, Tax Adjustments | ldi_AdjustmentsToAdditionalPaidInCapitalTaxAdjustments | (203,240,000) |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 66,725,000 |
Treasury Stock, Common [Member] | ||
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | (12,852,000) |
Noncontrolling Interest [Member] | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | us-gaap_MinorityInterestDecreaseFromRedemptions | (338,000) |
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | (740,934,000) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 294,598,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 215,024,000 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 160,617,000 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 35,995,000 |
Adjustments To Additional Paid In Capital, Tax Adjustments | ldi_AdjustmentsToAdditionalPaidInCapitalTaxAdjustments | 0 |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 39,034,000 |
Additional Paid-in Capital [Member] | ||
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 740,629,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | (7,000) |
Adjustments To Additional Paid In Capital, Tax Adjustments | ldi_AdjustmentsToAdditionalPaidInCapitalTaxAdjustments | (203,240,000) |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 27,691,000 |
Retained Earnings [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 113,524,000 |
Distributions For State Taxes | ldi_DistributionsForStateTaxes | 27,343,000 |
Common Class C [Member] | ||
Dividends | us-gaap_Dividends | 167,452,000 |
Common Class C [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 182,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | $ (6,000) |
Stock Vested During Period, Shares | ldi_StockVestedDuringPeriodShares | (6,307,061) |
Stock Issued During Period, Shares, Reorganization | ldi_StockIssuedDuringPeriodSharesReorganization | 181,789,329 |
Common Class C [Member] | Common Stock [Member] | Over-Allotment Option [Member] | ||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (359,100) |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ (1,000) |
Common Class C [Member] | Common Stock [Member] | IPO [Member] | ||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (2,394,000) |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ (2,000) |
Common Class C [Member] | Noncontrolling Interest [Member] | ||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 97,985,000 |
Common Class C [Member] | Retained Earnings [Member] | ||
Dividends | us-gaap_Dividends | 69,467,000 |
Common Class A [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 2,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | $ 31,000 |
Stock Vested During Period, Shares | ldi_StockVestedDuringPeriodShares | 29,823,749 |
Stock Issued During Period, Shares, Reorganization | ldi_StockIssuedDuringPeriodSharesReorganization | 2,215,687 |
Common Class A [Member] | Common Stock [Member] | Over-Allotment Option [Member] | ||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 577,500 |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 1,000 |
Common Class A [Member] | Common Stock [Member] | IPO [Member] | ||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 3,850,000 |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 4,000 |
Common Class D [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, Reorganization | ldi_StockIssuedDuringPeriodValueReorganization | 121,000 |
Stock Vested During Period, Value | ldi_StockVestedDuringPeriodValue | $ (18,000) |
Stock Vested During Period, Shares | ldi_StockVestedDuringPeriodShares | (18,872,116) |
Stock Issued During Period, Shares, Reorganization | ldi_StockIssuedDuringPeriodSharesReorganization | 121,368,600 |
Common Class D [Member] | Common Stock [Member] | Over-Allotment Option [Member] | ||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (218,400) |
Common Class D [Member] | Common Stock [Member] | IPO [Member] | ||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | (1,456,000) |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ (2,000) |
Class A And D Common Stock [Member] | ||
Dividends | us-gaap_Dividends | 109,963,000 |
Class A And D Common Stock [Member] | Noncontrolling Interest [Member] | ||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 64,273,000 |
Class A And D Common Stock [Member] | Retained Earnings [Member] | ||
Dividends | us-gaap_Dividends | $ 45,690,000 |