XML 34 R25.htm IDEA: XBRL DOCUMENT v3.23.3
SEGMENTS
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
ASC 280, Segment Reporting, establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in that guidance, the Company has determined that it has two reportable segments — Origination and Servicing.
Origination — The Company operates its loan origination business throughout the United States. Its licensed sales professionals and support staff cultivate deep relationships with referral partners and clients and provide a customized approach to the loan transaction whether it is a purchase or refinance. The origination segment is primarily responsible for loan origination, acquisition and sale activities.
Servicing — The Company services loans out of its corporate office in San Diego, California. Properties of the loans serviced by the Company are disbursed throughout the United States and as of September 30, 2023 the Company serviced at least one loan in forty-nine different states. The servicing segment provides a steady stream of cash flow to support the origination segment, and more importantly it allows for the Company to build long-standing client relationships that drive repeat and referral business back to the origination segment to recapture the client’s next mortgage transaction. The servicing segment is primarily responsible for the servicing activities of all loans in the Company’s servicing portfolio, which includes, but is not limited to, collection and remittance of loan payments,
managing borrower’s impound accounts for taxes and insurance, loan payoffs, loss mitigation and foreclosure activities.
The Company does not allocate assets to its reportable segments as they are not included in the review performed by the Chief Operating Decision Maker for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting. The Company also does not allocate certain corporate expenses, which are represented by All Other in the tables below.
The following table presents the financial performance and results by segment for the three months ended September 30, 2023:
OriginationServicingTotal
Segments		All OtherTotal
Revenue
Loan origination fees and gain on sale of loans, net$158,812 $(686)$158,126 $— $158,126 
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net2,755 — 2,755 — 2,755 
Loan servicing and other fees— 61,941 61,941 — 61,941 
Valuation adjustment of mortgage servicing rights— 22,077 22,077 — 22,077 
Interest income (expense)1,388 13,208 14,596 (2,642)11,954 
Other income, net341 49 390 14 404 
Net revenue163,296 96,589 259,885 (2,628)257,257 
Expenses
Salaries, incentive compensation and benefits123,978 8,104 132,082 10,555 142,637 
General and administrative12,696 2,953 15,649 3,160 18,809 
Occupancy, equipment and communication15,995 1,406 17,401 1,135 18,536 
Depreciation and amortization3,435 17 3,452 212 3,664 
Provision for foreclosure losses— 84 84 — 84 
Income tax expense— — — 19,284 19,284 
Net income (loss)$7,192 $84,025 $91,217 $(36,974)$54,243 
The following table presents the financial performance and results by segment for the nine months ended September 30, 2023:    
OriginationServicingTotal
Segments		All OtherTotal
Revenue
Loan origination fees and gain on sale of loans, net$387,587 $115 $387,702 $— $387,702 
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net5,061 — 5,061 — 5,061 
Loan servicing and other fees— 182,277 182,277 (38)182,239 
Valuation adjustment of mortgage servicing rights— (4,904)(4,904)— (4,904)
Interest income (expense)4,019 30,884 34,903 (7,711)27,192 
Other income, net507 150 657 6 663 
Net revenue397,174 208,522 605,696 (7,743)597,953 
Expenses
Salaries, incentive compensation and benefits344,259 23,173 367,432 31,228 398,660 
General and administrative42,251 8,073 50,324 9,816 60,140 
Occupancy, equipment and communication47,356 3,887 51,243 3,125 54,368 
Depreciation and amortization10,198 377 10,575 488 11,063 
Provision for foreclosure losses— 554 554 — 554 
Income tax expense
— — — 19,184 19,184 
Net (loss) income $(46,890)$172,458 $125,568 $(71,584)$53,984 
The following table presents the financial performance and results by segment for the three months ended September 30, 2022:
OriginationServicingTotal
Segments		All OtherTotal
Revenue
Loan origination fees and gain on sale of loans, net$154,319 $299 $154,618 $— $154,618 
Loan servicing and other fees— 57,647 57,647 — 57,647 
Valuation adjustment of mortgage servicing rights— 41,764 41,764 — 41,764 
Interest income (expense)4,388 3,392 7,780 (1,529)6,251 
Other income, net(32)979 947 (7)940 
Net revenue158,675 104,081 262,756 (1,536)261,220 
Expenses
Salaries, incentive compensation and benefits124,909 6,955 131,864 5,508 137,372 
General and administrative13,706 2,420 16,126 3,286 19,412 
Occupancy, equipment and communication15,043 1,202 16,245 1,057 17,302 
Depreciation and amortization3,498 159 3,657 238 3,895 
Reversal of foreclosure losses— (3,449)(3,449)— (3,449)
Income tax expense— — — 9,321 9,321 
Net income (loss)$1,519 $96,794 $98,313 $(20,946)$77,367 
The following table presents the financial performance and results by segment for the nine months ended September 30, 2022:
OriginationServicingTotal
Segments		All OtherTotal
Revenue
Loan origination fees and gain on sale of loans, net$599,285 $5,944 $605,229 $— $605,229 
Loan servicing and other fees— 165,419 165,419 — 165,419 
Valuation adjustment of mortgage servicing rights— 247,439 247,439 — 247,439 
Interest income (expense)17,183 (1,233)15,950 (4,700)11,250 
Other income, net(57)1,054 997 185 1,182 
Net revenue616,411 418,623 1,035,034 (4,515)1,030,519 
Expenses
Salaries, incentive compensation and benefits464,368 21,722 486,090 16,803 502,893 
General and administrative3,455 7,342 10,797 9,356 20,153 
Occupancy, equipment and communication47,645 3,599 51,244 3,343 54,587 
Depreciation and amortization10,374 483 10,857 759 11,616 
Reversal of foreclosure losses— (1,974)(1,974)— (1,974)
Income tax expense— — — 99,615 99,615 
Net income (loss)$90,569 $387,451 $478,020 $(134,391)$343,629