Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2023

Long-Term Debt.

Summary of term notes issued

			Annual interest rate		Maturity date
Issuance date	Principal balance		Index	Spread	Stated	Optional extension (1)
	(in thousands)
Term Notes:
February 28, 2018	$	650,000	One-month LIBOR(2)	3.85%	2/25/2025	(3)
August 10, 2018		650,000	One-month LIBOR(2)	2.65%	8/25/2023	8/25/2025
June 3, 2022		500,000	SOFR	4.25%	5/25/2027	5/25/2029
Term Loans:
February 28, 2023		680,000	SOFR	3.00%	2/25/2028	2/25/2029
	$	2,480,000

(1) The Term Notes and Term Loans’ indentures provide the Company with the option to extend the maturity of the Term Notes or Term Loans specified in the respective agreements.

(2) London Interbank Offered Rate (“LIBOR”).

(3) Stated maturity date reflects the exercise by the Company of its option to extend the maturity of this issuance.

Summary of note payable

	Quarter ended March 31,
	2023		2022
	(dollars in thousands)
Average balance	$	2,092,056	$	1,300,000
Weighted average interest rate (1)		7.72%		2.95%
Total interest expense	$	40,778	$	9,909

(1) Excludes the effect of amortization of debt issuance costs totaling $932,000 and $459,000 for the quarters ended March 31, 2023 and 2022, respectively.

	March 31,		December 31,
	2023		2022
	(dollars in thousands)
Carrying value:
Unpaid principal balance:
Term Notes and Term Loans	$	2,480,000	$	1,800,000
MSR Note Payable		—		150,000
		2,480,000		1,950,000
Unamortized debt issuance costs		(8,070)		(7,354)
	$	2,471,930	$	1,942,646
Weighted average interest rate		8.21%		7.46%
Assets pledged to secure notes payable (1):
Servicing advances	$	315,323	$	381,379
Mortgage servicing rights	$	5,954,749	$	5,897,613
Deposits	$	21,074	$	12,277

(1) Beneficial interests in the Ginnie Mae MSRs, servicing advances and deposits together serve as the collateral backing servicing asset facilities that are included in Assets sold under agreements to repurchase and the Term Notes and Term Loans included in Notes payable secured by mortgage servicing assets.

Summary of Unsecured Notes issued

Issuance date	Principal balance		Coupon interest rate	Maturity date	Optional redemption date (1)
	(in thousands)		(annual)
September 29, 2020	$	500,000	5.38%	October 15, 2025	October 15, 2022
October 19, 2020		150,000	5.38%	October 15, 2025	October 15, 2022
February 11, 2021		650,000	4.25%	February 15, 2029	February 15, 2024
September 16, 2021		500,000	5.75%	September 15, 2031	September 15, 2026
	$	1,800,000

(1) Before the optional redemption date, the Company may redeem some or all of the Unsecured Notes for that issuance at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a make-whole premium or the Company may redeem up to 40% of the Unsecured Notes for that issuance with an amount equal to or less than the net proceeds from certain equity offerings at the redemption price set forth in the indenture, plus accrued and unpaid interest. On or after the optional redemption date, the Company may redeem some or all of the Unsecured Notes for that issuance at the redemption prices set forth in the indenture, plus accrued interest.

Summary of unsecured notes payable

	Quarter ended March 31,
	2023		2022
	(dollars in thousands)
Average balance	$	1,800,000	$	1,800,000
Weighted average interest rate (1)		5.07%		5.07%
Total interest expense	$	23,428	$	23,428

(1) Excludes the effect of amortization of debt issuance costs of $913,000 for each of the quarters ended March 31, 2023 and 2022.

	March 31,		December 31,
	2023		2022
	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	1,800,000	$	1,800,000
Unamortized debt issuance costs and premiums, net		(19,167)		(20,080)
	$	1,780,833	$	1,779,920
Weighted average interest rate		5.07%		5.07%

Summary of maturities of Long-Term Debt

Maturities of long-term debt (based on stated maturity dates) are as follows:

	Twelve months ended March 31,
	2024		2025		2026		2027		2028		Thereafter		Total
	(in thousands)
Notes payable secured by mortgage servicing assets (1)	$	650,000	$	650,000	$	—	$	—	$	1,180,000	$	—	$	2,480,000
Unsecured senior notes		—		—		650,000		—		—		1,150,000		1,800,000
Total	$	650,000	$	650,000	$	650,000	$	—	$	1,180,000	$	1,150,000	$	4,280,000

(1) The Term Notes and Term Loans’ indentures provide the Company with the option to extend the maturity of the Term Notes and Term Loans as specified in the respective agreements.

Summary of obligations under capital lease

	Quarter ended
		March 31, 2022
		(dollars in thousands)
Average balance		$	2,791
Weighted average interest rate			2.15%
Total interest expense		$	15
Maximum daily amount outstanding		$	3,489