Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2021

Long-Term Debt.

Summary of obligations under capital lease

	Quarter ended March 31,
	2021			2020
	(dollars in thousands)
Average balance	$	11,340		$	19,406
Weighted average interest rate		2.13	%		3.36	%
Total interest expense	$	59		$	167
Maximum daily amount outstanding	$	11,864		$	20,810

	March 31,			December 31,
	2021			2020
	(dollars in thousands)
Unpaid principal balance	$	10,468		$	11,864
Weighted average interest rate		2.11	%		2.15	%
Assets pledged to secure obligations under capital lease:
Capitalized software	$	6,778		$	7,675
Furniture, fixtures and equipment	$	5,294		$	5,689

Summary of term notes issued

Issuance date	Principal balance		Stated interest rate (1)	Stated Maturity date (2)
	(in thousands)		(Annual)
February 28, 2018 (the "GT1 Notes")	$	650,000	2.85%	2/25/2023
August 10, 2018 (the "GT2 Notes")		650,000	2.65%	8/25/2023
	$	1,300,000

(1) Spread over one-month LIBOR.

(2) The Term Notes’ indentures provide the Company with the option to extend the maturity of the Term Notes by two years after the stated maturity.

Summary of note payable

	Quarter ended March 31,
	2021			2020
	(dollars in thousands)
Average balance	$	1,300,000		$	1,300,000
Weighted average interest rate (1)		2.88	%		4.43	%
Total interest expense	$	9,888		$	14,846

(1) Excludes the effect of amortization of debt issuance costs totaling $544,000 and $445,000 for the quarters ended March 31, 2021 and 2020, respectively.

	March 31,			December 31,
	2021			2020
	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	1,300,000		$	1,300,000
Unamortized debt issuance costs		(3,715)			(4,160)
	$	1,296,285		$	1,295,840
Weighted average interest rate		2.87	%		2.93	%
Assets pledged to secure notes payable (1):
Servicing advances	$	373,110		$	413,484
Mortgage servicing rights	$	3,047,056		$	2,421,326
Deposits	$	102,270		$	153,054

(1) Beneficial interests in the Ginnie Mae MSRs, servicing advances and deposits are pledged to the Issuer Trust and together serve as the collateral backing the VFN, GMSR Servicing Advance Notes and the Term Notes. The VFN financing and the GMSR Servicing Advance Notes are included in Assets sold under agreements to repurchase and the Term Notes are included in Notes payable secured by mortgage servicing assets on the Company's consolidated balance sheets.

Summary of Unsecured Notes issued

Issuance date	Principal balance		Coupon rate	Maturity date
	(in thousands)		(Annual)
September 29, 2020	$	500,000	5.38%	October 15, 2025
October 19, 2020		150,000	5.38%	October 15, 2025
February 11, 2021		650,000	4.25%	February 15, 2029
	$	1,300,000

Before October 15, 2022 or February 15, 2024 for the Unsecured Note issued during 2020 and 2021, respectively, the Company may, at its option redeem earlier in accordance with the terms of the Unsecured Notes:

Summary of unsecured notes payable

	Quarter ended
	March 31, 2021
	(dollars in thousands)
Average balance	$	1,003,889
Weighted average coupon rate (1)		4.91	%
Total interest expense	$	12,670

(1) Excludes the effect of amortization of debt issuance costs totaling $347,000.

	March 31,			December 31,
	2021			2020
	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	1,300,000		$	650,000
Unamortized debt issuance costs, net of issuance premiums		(11,802)			(4,180)
	$	1,288,198		$	645,820
Weighted average coupon rate		4.81	%		5.38	%

Summary of maturities of Long-Term Debt

	Twelve months ended March 31,
	2022		2023		2024		2025		2026		Thereafter		Total
	(in thousands)
Obligations under capital lease	$	8,374	$	2,094	$	—	$	—	$	—	$	—	$	10,468
Notes payable secured by mortgage servicing assets		—		650,000		650,000		—		—		—		1,300,000
Unsecured Notes		—		—		—		—		650,000		650,000		1,300,000
Total	$	8,374	$	652,094	$	650,000	$	—	$	650,000	$	650,000	$	2,610,468