QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | x | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Section Name | Page | ||||
Item 1. Financial Statements | |||||
September 30, 2023 | December 31, 2022 | ||||||||||
Assets | (Unaudited) | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Mortgage loans at fair value | |||||||||||
Derivative assets | |||||||||||
Investment securities at fair value, pledged | |||||||||||
Accounts receivable, net | |||||||||||
Mortgage servicing rights | |||||||||||
Premises and equipment, net | |||||||||||
Operating lease right-of-use asset, net (includes $ | |||||||||||
Finance lease right-of-use asset (includes $ | |||||||||||
Loans eligible for repurchase from Ginnie Mae | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and equity | |||||||||||
Warehouse lines of credit | $ | $ | |||||||||
Derivative liabilities | |||||||||||
Secured lines of credit | |||||||||||
Borrowings against investment securities | |||||||||||
Accounts payable, accrued expenses and other | |||||||||||
Accrued distributions and dividends payable | |||||||||||
Senior notes | |||||||||||
Operating lease liability (includes $ | |||||||||||
Finance lease liability (includes $ | |||||||||||
Loans eligible for repurchase from Ginnie Mae | |||||||||||
Total liabilities | |||||||||||
Equity | |||||||||||
Preferred stock, $ | |||||||||||
Class A common stock, $ | |||||||||||
Class B common stock, $ | |||||||||||
Class C common stock, $ | |||||||||||
Class D common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Non-controlling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Loan production income | $ | $ | $ | $ | |||||||||||||||||||
Loan servicing income | |||||||||||||||||||||||
Change in fair value of mortgage servicing rights | ( | ||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Total revenue, net | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Salaries, commissions and benefits | |||||||||||||||||||||||
Direct loan production costs | |||||||||||||||||||||||
Marketing, travel, and entertainment | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Servicing costs | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other expense (income) | ( | ||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
Earnings before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income attributable to non-controlling interest | |||||||||||||||||||||||
Net income attributable to UWM Holdings Corporation | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share of Class A common stock (see Note 16): | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Class A Common Stock Shares | Class A Common Stock Amount | Class D Common Stock Shares | Class D Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Non-controlling Interest | Total | |||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Class A common stock dividends | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Member distributions to SFS Corp. | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Re-measurement of non-controlling interest due to change in parent ownership and other | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Class A common stock dividends | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Member distributions to SFS Corp. | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Re-measurement of non-controlling interest due to change in parent ownership and other | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Class A common stock dividends | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Member distributions to SFS Corp. | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Class A common stock repurchased | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Re-measurement of non-controlling interest due to change in parent ownership and other | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock Shares | Class A Common Stock Amount | Class D Common Stock Shares | Class D Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Non-controlling Interest | Total | |||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Class A common stock dividends | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Member distributions to SFS Corp. | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Re-measurement of non-controlling interest due to change in parent ownership and other | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Class A common stock dividends | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Member distributions to SFS Corp. | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Re-measurement of non-controlling interest due to change in parent ownership and other | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Class A common stock dividends | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Member distributions to SFS Corp. | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Re-measurement of non-controlling interest due to change in parent ownership and other | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | $ | $ |
For the nine months ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Reserve for representations and warranties | |||||||||||
Capitalization of mortgage servicing rights | ( | ( | |||||||||
Change in fair value of mortgage servicing rights | ( | ||||||||||
Depreciation & amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Decrease in fair value of investment securities | |||||||||||
Increase (decrease) in fair value of warrants liability | ( | ||||||||||
(Increase) decrease in: | |||||||||||
Mortgage loans at fair value | |||||||||||
Derivative assets | ( | ( | |||||||||
Other assets | ( | ||||||||||
Increase (decrease) in: | |||||||||||
Derivative liabilities | ( | ||||||||||
Other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Net proceeds from sale of mortgage servicing rights | |||||||||||
Proceeds from principal payments on investment securities | |||||||||||
Margin calls on borrowings against investment securities | ( | ( | |||||||||
Net cash provided by investing activities | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Net repayments under warehouse lines of credit | ( | ( | |||||||||
Repayments of finance lease liabilities | ( | ( | |||||||||
Repayments under equipment notes payable | ( | ( | |||||||||
Borrowings under secured lines of credit | |||||||||||
Repayments under secured lines of credit | ( | ||||||||||
Borrowings against investment securities | |||||||||||
Repayments of borrowings against investment securities | ( | ( | |||||||||
Dividends paid to Class A common stockholders | ( | ( | |||||||||
Member distributions paid to SFS Corp. | ( | ( | |||||||||
Other financing activities | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
INCREASE IN CASH AND CASH EQUIVALENTS | |||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | |||||||||||
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | $ | $ | |||||||||
SUPPLEMENTAL INFORMATION | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash received for taxes | ( |
(In thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Mortgage loans, unpaid principal balance | $ | $ | |||||||||
Premiums paid on mortgage loans | |||||||||||
Fair value adjustment | ( | ( | |||||||||
Mortgage loans at fair value | $ | $ |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Fair value | Fair value | |||||||||||||||||||||||||||||||||||||
Derivative assets | Derivative liabilities | Notional Amount | Derivative assets | Derivative liabilities | Notional Amount | |||||||||||||||||||||||||||||||||
IRLCs | $ | $ | $ | (a) | $ | $ | $ | (a) | ||||||||||||||||||||||||||||||
FLSCs | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Servicing fees | $ | $ | |||||||||
Servicing advances | |||||||||||
Receivables from sales of servicing | |||||||||||
Derivative settlements receivable | |||||||||||
Origination receivables | |||||||||||
Investor receivables | |||||||||||
Other receivables | |||||||||||
Provision for current expected credit losses | ( | ( | |||||||||
Total accounts receivable, net | $ | $ |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Fair value, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Capitalization of MSRs | |||||||||||||||||||||||
MSR and excess sales | ( | ( | ( | ( | |||||||||||||||||||
Changes in fair value: | |||||||||||||||||||||||
Due to changes in valuation inputs or assumptions | |||||||||||||||||||||||
Due to collection/realization of cash flows/other | ( | ( | ( | ( | |||||||||||||||||||
Fair value, end of period | $ | $ | $ | $ |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Changes in fair value: | |||||||||||||||||||||||
Due to changes in valuation inputs and assumptions | $ | $ | $ | $ | |||||||||||||||||||
Due to collection/realization of cash flows and other | ( | ( | ( | ( | |||||||||||||||||||
Net reserves and transaction costs on sales of servicing rights | ( | ( | ( | ( | |||||||||||||||||||
Changes in fair value of mortgage servicing rights | $ | $ | $ | ( | $ |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Contractual servicing fees | $ | $ | $ | $ | |||||||||||||||||||
Late, ancillary and other fees | |||||||||||||||||||||||
Loan servicing income | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||||||
Discount rates | % | — | % | % | % | — | % | % | |||||||||||||||||||||||||||
Annual prepayment speeds | % | — | % | % | % | — | % | % | |||||||||||||||||||||||||||
Cost of servicing | $ | — | $ | $ | $ | — | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Discount rate: | |||||||||||
+ 10% adverse change – effect on value | $ | ( | $ | ( | |||||||
+ 20% adverse change – effect on value | ( | ( | |||||||||
Prepayment speeds: | |||||||||||
+ 10% adverse change – effect on value | $ | ( | $ | ( | |||||||
+ 20% adverse change – effect on value | ( | ( | |||||||||
Cost of servicing: | |||||||||||
+ 10% adverse change – effect on value | $ | ( | $ | ( | |||||||
+ 20% adverse change – effect on value | ( | ( |
Warehouse Lines of Credit 1 | Date of Initial Agreement With Warehouse Lender | Current Agreement Expiration Date | Total Advanced Against Line as of September 30, 2023 | Total Advanced Against Line as of December 31, 2022 | ||||||||||||||||||||||
Master Repurchase Agreement ("MRA") Funding Limits as of September 30, 2023: | ||||||||||||||||||||||||||
$ | 8/21/2012 | 1/18/2023 | $ | $ | ||||||||||||||||||||||
$ | 3/30/2018 | 11/6/2023 | ||||||||||||||||||||||||
$ | 8/19/2016 | 11/8/2023 | ||||||||||||||||||||||||
$ | 2/26/2016 | 12/21/2023 | ||||||||||||||||||||||||
$ | 7/10/2012 | 1/8/2024 | ||||||||||||||||||||||||
$ | 12/31/2014 | 2/21/2024 | ||||||||||||||||||||||||
$ | 3/7/2019 | 2/21/2024 | ||||||||||||||||||||||||
$ | 4/23/2021 | 4/23/2024 | ||||||||||||||||||||||||
$ | 2/29/2012 | 5/17/2024 | ||||||||||||||||||||||||
$ | 7/24/2020 | 8/29/2024 | ||||||||||||||||||||||||
$ | 10/30/2020 | 11/5/2024 | ||||||||||||||||||||||||
$ | 5/9/2019 | 11/28/2025 | ||||||||||||||||||||||||
Early Funding: | ||||||||||||||||||||||||||
$ | No expiration | |||||||||||||||||||||||||
$ | No expiration | |||||||||||||||||||||||||
$ | $ | |||||||||||||||||||||||||
All interest rates are variable based upon a spread to SOFR or other alternative index. |
Facility Type | Maturity Date | Interest Rate | Outstanding Principal at September 30, 2023 | Outstanding Principal at December 31, 2022 | ||||||||||||||||||||||
2025 Senior Unsecured Notes(1) | 11/15/2025 | % | $ | $ | ||||||||||||||||||||||
2029 Senior Unsecured Notes(2) | 04/15/2029 | % | ||||||||||||||||||||||||
2027 Senior Unsecured Notes(3) | 06/15/2027 | % | ||||||||||||||||||||||||
Total Senior Unsecured Notes | $ | $ | ||||||||||||||||||||||||
Weighted average interest rate | % | % |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Additions | |||||||||||||||||||||||
Losses realized, net | ( | ( | ( | ( | |||||||||||||||||||
Balance, end of period | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Common Units | Ownership Percentage | Common Units | Ownership Percentage | ||||||||||||||||||||
UWM Holdings Corporation ownership of Class A Common Units | % | % | |||||||||||||||||||||
SFS Corp. ownership of Class B Common Units | % | % | |||||||||||||||||||||
Balance at end of period | % | % |
September 30, 2023 | ||||||||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Mortgage loans at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
IRLCs | ||||||||||||||||||||||||||
FLSCs | ||||||||||||||||||||||||||
Investment securities at fair value, pledged | ||||||||||||||||||||||||||
Mortgage servicing rights | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
IRLCs | $ | $ | $ | $ | ||||||||||||||||||||||
FLSCs | ||||||||||||||||||||||||||
Public and Private Warrants | ||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | ||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Mortgage loans at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
IRLCs | ||||||||||||||||||||||||||
FLSCs | ||||||||||||||||||||||||||
Investment securities at fair value, pledged | ||||||||||||||||||||||||||
Mortgage servicing rights | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
IRLCs | $ | $ | $ | $ | ||||||||||||||||||||||
FLSCs | ||||||||||||||||||||||||||
Public and Private warrants | ||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Unobservable Input - IRLCs | September 30, 2023 | December 31, 2022 | |||||||||
Pullthrough rate (weighted avg) | % | % |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||||||||||||
2025 Senior Notes, due 11/15/25 | $ | $ | $ | $ | ||||||||||||||||||||||
2029 Senior Notes, due 4/15/29 | ||||||||||||||||||||||||||
2027 Senior Notes, due 6/15/27 | ||||||||||||||||||||||||||
$ | $ | $ | $ |
For the three months ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Unvested - beginning of period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Unvested - end of period | $ | $ | |||||||||||||||||||||
For the nine months ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Unvested - beginning of period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Unvested - end of period | $ | $ |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income attributable to non-controlling interests | |||||||||||||||||||||||
Net income attributable to UWMC | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income attributable to Class A common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Net income attributable to Class A common shareholders - diluted | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares of Class A common stock outstanding - basic | |||||||||||||||||||||||
Weighted average shares of Class A common stock outstanding - diluted | |||||||||||||||||||||||
Earnings per share of Class A common stock outstanding - basic | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share of Class A common stock outstanding - diluted | $ | $ | $ | $ |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income | $ | 300,993 | $ | 325,610 | $ | 391,174 | $ | 994,342 | ||||||||||||||||||
Interest expense on non-funding debt | 42,825 | 29,786 | 128,553 | 89,036 | ||||||||||||||||||||||
Provision for income taxes | 734 | 4,771 | 941 | 9,585 | ||||||||||||||||||||||
Depreciation and amortization | 11,563 | 11,426 | 34,674 | 33,522 | ||||||||||||||||||||||
Stock-based compensation expense | 3,822 | 1,986 | 9,871 | 5,490 | ||||||||||||||||||||||
Change in fair value of MSRs due to valuation inputs or assumptions (1) | (236,044) | (373,232) | (177,655) | (940,668) | ||||||||||||||||||||||
Deferred compensation, net(2) | (11,755) | (8,468) | (11,238) | 6,909 | ||||||||||||||||||||||
Change in fair value of Public and Private Warrants (3) | (2,021) | (755) | 1,252 | (7,737) | ||||||||||||||||||||||
Change in Tax Receivable Agreement liability (4) | (3,000) | — | (1,835) | 3,200 | ||||||||||||||||||||||
Change in fair value of investment securities (5) | 4,945 | 7,484 | 2,968 | 28,330 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 112,062 | $ | (1,392) | $ | 378,705 | $ | 222,009 |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenue | |||||||||||||||||||||||
Loan production income | $ | 288,930 | $ | 172,402 | $ | 775,111 | $ | 852,808 | |||||||||||||||
Loan servicing income | 200,428 | 196,781 | 612,205 | 574,847 | |||||||||||||||||||
Change in fair value of mortgage servicing rights | 92,909 | 236,780 | (219,730) | 434,912 | |||||||||||||||||||
Interest income | 94,849 | 78,210 | 258,324 | 207,625 | |||||||||||||||||||
Total revenue, net | 677,116 | 684,173 | 1,425,910 | 2,070,192 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Salaries, commissions and benefits | 135,333 | 135,028 | 387,716 | 434,620 | |||||||||||||||||||
Direct loan production costs | 36,184 | 20,498 | 76,285 | 72,973 | |||||||||||||||||||
Marketing, travel, and entertainment | 20,117 | 17,730 | 58,915 | 51,192 | |||||||||||||||||||
Depreciation and amortization | 11,563 | 11,426 | 34,674 | 33,522 | |||||||||||||||||||
General and administrative | 44,904 | 51,649 | 132,214 | 129,881 | |||||||||||||||||||
Servicing costs | 33,640 | 37,596 | 102,160 | 129,215 | |||||||||||||||||||
Interest expense | 93,724 | 73,136 | 239,445 | 191,069 | |||||||||||||||||||
Other expense (income) | (76) | 6,729 | 2,386 | 23,793 | |||||||||||||||||||
Total expenses | 375,389 | 353,792 | 1,033,795 | 1,066,265 | |||||||||||||||||||
Earnings before income taxes | 301,727 | 330,381 | 392,115 | 1,003,927 | |||||||||||||||||||
Provision for income taxes | 734 | 4,771 | 941 | 9,585 | |||||||||||||||||||
Net income | 300,993 | 325,610 | 391,174 | 994,342 | |||||||||||||||||||
Net income attributable to non-controlling interest | 282,762 | 313,914 | 377,326 | 952,350 | |||||||||||||||||||
Net income attributable to UWM Holdings Corporation | $ | 18,231 | $ | 11,696 | $ | 13,848 | $ | 41,992 |
Loan Production Data: | For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Loan origination volume by type | |||||||||||||||||||||||
Purchase: | |||||||||||||||||||||||
Conventional | $ | 16,237,031 | $ | 19,246,298 | $ | 46,799,855 | $ | 47,436,102 | |||||||||||||||
Government | 8,031,062 | 7,592,116 | 22,834,611 | 17,638,056 | |||||||||||||||||||
Jumbo and other(1) | 1,624,824 | 854,925 | 3,539,422 | 4,105,737 | |||||||||||||||||||
Total purchase | $ | 25,892,917 | $ | 27,693,339 | $ | 73,173,888 | $ | 69,179,895 | |||||||||||||||
Refinance: | |||||||||||||||||||||||
Conventional | $ | 1,736,055 | $ | 3,935,550 | $ | 5,695,756 | $ | 24,868,645 | |||||||||||||||
Government | 1,528,848 | 1,640,127 | 3,799,714 | 6,829,588 | |||||||||||||||||||
Jumbo and other(1) | 563,813 | 195,464 | 1,234,089 | 1,280,489 | |||||||||||||||||||
Total refinance | 3,828,716 | 5,771,141 | 10,729,559 | 32,978,722 | |||||||||||||||||||
Total loan origination volume | $ | 29,721,633 | $ | 33,464,480 | $ | 83,903,447 | $ | 102,158,617 | |||||||||||||||
Portfolio metrics | |||||||||||||||||||||||
Average loan amount | $ | 372 | $ | 365 | $ | 371 | $ | 368 | |||||||||||||||
Weighted average loan-to-value ratio | 82.67 | % | 82.12 | % | 83.15 | % | 78.84 | % | |||||||||||||||
Weighted average credit score | 738 | 736 | 738 | 738 | |||||||||||||||||||
Weighted average note rate | 6.79 | % | 5.29 | % | 6.45 | % | 4.45 | % | |||||||||||||||
Percentage of loans sold | |||||||||||||||||||||||
To GSEs | 94 | % | 97 | % | 95 | % | 94 | % | |||||||||||||||
To other counterparties | 6 | % | 3 | % | 5 | % | 6 | % | |||||||||||||||
Servicing-retained | 95 | % | 98 | % | 97 | % | 97 | % | |||||||||||||||
Servicing-released | 5 | % | 2 | % | 3 | % | 3 | % | |||||||||||||||
(1) Comprised of non-agency jumbo products and non-qualified mortgage products, including home equity lines of credit ("HELOCs") (which in many instances are second liens) and construction loans. |
For the three months ended September 30, | Change $ | Change % | |||||||||||||||||||||
($ in thousands) | 2023 | 2022 | |||||||||||||||||||||
Primary loss | $ | (418,912) | $ | (573,183) | $ | 154,271 | (26.9) | % | |||||||||||||||
Loan origination fees | 82,743 | 72,214 | 10,529 | 14.6 | % | ||||||||||||||||||
Provision for representation and warranty obligations | (12,181) | (9,139) | (3,042) | 33.3 | % | ||||||||||||||||||
Capitalization of MSRs | 637,280 | 682,510 | (45,230) | (6.6) | % | ||||||||||||||||||
Loan production income | $ | 288,930 | $ | 172,402 | $ | 116,528 | 67.6 | % | |||||||||||||||
Gain margin(1) | 0.97 | % | 0.52 | % | 0.45 | % | |||||||||||||||||
For the nine months ended September 30, | Change $ | Change % | |||||||||||||||||||||
($ in thousands) | 2023 | 2022 | |||||||||||||||||||||
Primary loss | $ | (1,204,546) | $ | (1,086,842) | $ | (117,704) | 10.8 | % | |||||||||||||||
Loan origination fees | 204,820 | 221,903 | (17,083) | (7.7) | % | ||||||||||||||||||
Provision for representation and warranty obligations | (28,811) | (22,878) | (5,933) | 25.9 | % | ||||||||||||||||||
Capitalization of MSRs | 1,803,648 | 1,740,625 | 63,023 | 3.6 | % | ||||||||||||||||||
Loan production income | $ | 775,111 | $ | 852,808 | $ | (77,697) | (9.1) | % | |||||||||||||||
Gain margin(1) | 0.92 | % | 0.83 | % | 0.09 | % | |||||||||||||||||
(1) Represents total loan production income divided by total loan origination volume for the applicable period. |
For the three months ended September 30, | Change $ | Change % | ||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||||
Contractual servicing fees | $ | 196,509 | $ | 193,715 | $ | 2,794 | 1.4 | % | ||||||||||||||||||
Late, ancillary and other fees | 3,919 | 3,066 | 853 | 27.8 | % | |||||||||||||||||||||
Loan servicing income | $ | 200,428 | $ | 196,781 | $ | 3,647 | 1.9 | % | ||||||||||||||||||
Servicing costs | 33,640 | 37,596 | (3,956) | (10.5) | % | |||||||||||||||||||||
For the nine months ended September 30, | Change $ | Change % | ||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||||
Contractual servicing fees | $ | 600,960 | $ | 567,040 | $ | 33,920 | 6.0 | % | ||||||||||||||||||
Late, ancillary and other fees | 11,245 | 7,807 | 3,438 | 44.0 | % | |||||||||||||||||||||
Loan servicing income | $ | 612,205 | $ | 574,847 | $ | 37,358 | 6.5 | % | ||||||||||||||||||
Servicing costs | 102,160 | 129,215 | (27,055) | (20.9) | % | |||||||||||||||||||||
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Average UPB of loans serviced | $ | 282,052,249 | $ | 302,454,780 | $ | 297,881,002 | $ | 307,601,442 | |||||||||||||||
Average number of loans serviced | 857,235 | 936,706 | 914,562 | 958,257 | |||||||||||||||||||
Weighted average servicing fee as of period end | 0.3014 | % | 0.2795 | % | 0.3014 | % | 0.2795 | % |
($ in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
UPB of loans serviced | $ | 281,373,662 | $ | 312,454,025 | |||||||
Number of loans serviced | 848,793 | 967,050 | |||||||||
MSR portfolio delinquency count (60+ days) as % of total | 1.09 | % | 0.85 | % | |||||||
Weighted average note rate | 4.20 | % | 3.64 | % | |||||||
Weighted average service fee | 0.3014 | % | 0.2862 | % |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Interest income | $ | 94,849 | $ | 78,210 | $ | 258,324 | $ | 207,625 | |||||||||||||||
Less: Interest expense on funding facilities | 50,899 | 43,350 | 110,892 | 102,033 | |||||||||||||||||||
Net interest income | $ | 43,950 | $ | 34,860 | $ | 147,432 | $ | 105,592 | |||||||||||||||
Interest expense on non-funding debt | $ | 42,825 | $ | 29,786 | $ | 128,553 | $ | 89,036 | |||||||||||||||
Total interest expense | 93,724 | 73,136 | 239,445 | 191,069 |
For the three months ended September 30, | Change $ | Change % | ||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||||
Salaries, commissions and benefits | $ | 135,333 | $ | 135,028 | $ | 305 | 0.2 | % | ||||||||||||||||||
Direct loan production costs | 36,184 | 20,498 | 15,686 | 76.5 | % | |||||||||||||||||||||
Marketing, travel, and entertainment | 20,117 | 17,730 | 2,387 | 13.5 | % | |||||||||||||||||||||
Depreciation and amortization | 11,563 | 11,426 | 137 | 1.2 | % | |||||||||||||||||||||
General and administrative | 44,904 | 51,649 | (6,745) | (13.1) | % | |||||||||||||||||||||
Other expense (income) | (76) | 6,729 | (6,805) | (101.1) | % | |||||||||||||||||||||
Other expenses | $ | 248,025 | $ | 243,060 | $ | 4,965 | 2.0 | % | ||||||||||||||||||
For the nine months ended September 30, | Change $ | Change % | ||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Salaries, commissions and benefits | $ | 387,716 | $ | 434,620 | $ | (46,904) | (10.8) | % | ||||||||||||||||||
Direct loan production costs | 76,285 | 72,973 | 3,312 | 4.5 | % | |||||||||||||||||||||
Marketing, travel, and entertainment | 58,915 | 51,192 | 7,723 | 15.1 | % | |||||||||||||||||||||
Depreciation and amortization | 34,674 | 33,522 | 1,152 | 3.4 | % | |||||||||||||||||||||
General and administrative | 132,214 | 129,881 | 2,333 | 1.8 | % | |||||||||||||||||||||
Other expense | 2,386 | 23,793 | (21,407) | (90.0) | % | |||||||||||||||||||||
Other expenses | $ | 692,190 | $ | 745,981 | $ | (53,791) | (7.2) | % | ||||||||||||||||||
Facility Type | Collateral | Line Amount as of September 30, 20231 | Date of Initial Agreement With Warehouse Lender | Current Agreement Expiration Date | Total Advanced Against Line as of September 30, 2023 (in thousands) | ||||||||||||||||||||||||
MRA Funding: | |||||||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $200 Million2 | 3/30/2018 | 11/6/2023 | $ | 24,945 | |||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $300 Million2 | 8/19/2016 | 11/8/2023 | 8,771 | ||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $250 Million | 2/26/2016 | 12/21/2023 | 215,798 | ||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $1.0 Billion | 7/10/2012 | 1/8/2024 | 182,116 | ||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $2.5 Billion | 12/31/2014 | 2/21/2024 | 1,085,273 | ||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $500 Million | 3/7/2019 | 2/21/2024 | 239,790 | ||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $250 Million | 4/23/2021 | 4/23/2024 | 160,894 | ||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $400 Million | 2/29/2012 | 5/17/2024 | 362,704 | ||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $1.0 Billion | 7/24/2020 | 8/29/2024 | 811,030 | ||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $200 Million | 10/30/2020 | 11/5/2024 | 66,775 | ||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $3.0 Billion | 5/9/2019 | 11/28/2025 | 1,908,804 | ||||||||||||||||||||||||
Early Funding: | |||||||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $600 Million (ASAP+ - see below) | No expiration | — | |||||||||||||||||||||||||
Master Repurchase Agreement | Mortgage Loans | $750 Million (EF - see below) | No expiration | — | |||||||||||||||||||||||||
$ | 5,066,900 |
For the nine months ended September 30, | |||||||||||
($ in thousands) | 2023 | 2022 | |||||||||
Net cash provided by operating activities | $ | 494,513 | $ | 10,812,822 | |||||||
Net cash provided by investing activities | 1,652,326 | 1,144,576 | |||||||||
Net cash used in financing activities | (2,122,121) | (11,888,952) | |||||||||
Increase in cash and cash equivalents | $ | 24,718 | $ | 68,446 | |||||||
Cash and cash equivalents at the end of the period | 729,616 | 799,534 |
($ in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Interest rate lock commitments—fixed rate (a) | $ | 7,351,202 | $ | 5,350,845 | |||||||
Interest rate lock commitments—variable rate (a) | — | 8,839 | |||||||||
Commitments to sell loans | 2,299,656 | 608,703 | |||||||||
Forward commitments to sell mortgage-backed securities | 9,515,898 | 10,336,172 |
September 30, 2023 | |||||||||||
($ in thousands) | Down 25 bps | Up 25 bps | |||||||||
Increase (decrease) in assets | |||||||||||
Mortgage loans at fair value | $ | 39,308 | $ | (40,999) | |||||||
MSRs | (120,196) | 109,657 | |||||||||
IRLCs | 51,635 | (54,870) | |||||||||
Total change in assets | $ | (29,253) | $ | 13,788 | |||||||
Increase (decrease) in liabilities | |||||||||||
FLSCs | $ | (93,098) | $ | 100,009 | |||||||
Total change in liabilities | $ | (93,098) | $ | 100,009 |
Exhibit Number | Description | |||||||
10.24%*# | ||||||||
31.1% | ||||||||
31.2% | ||||||||
32.1+ | ||||||||
32.2+ | ||||||||
101.0 INS% | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH% | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL% | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF% | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB% | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE% | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104.0% | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
% | Filed herewith. | |||||||
+ | Furnished herewith. | |||||||
* | Certain of the exhibits and schedules to this exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5) or Item 601(b)(2). The Registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request. | |||||||
# | Certain confidential portions of this exhibit were omitted by means of marking such portions with brackets and asterisks because the identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly disclosed, or constituted personally identifiable information that is not material. |
UWM HOLDINGS CORPORATION | |||||||||||||||||
Date: November 8, 2023 | By: | /s/ Andrew Hubacker | |||||||||||||||
Andrew Hubacker | |||||||||||||||||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer |
* Certain portions of this exhibit have been redacted in accordance with Item 601(b)(10) of Regulation S-K. This information is not material and would likely cause competitive harm to the registrant if publicly disclosed. “[***]” indicates that information has been redacted. |
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Date: November 8, 2023 | By: | /s/ Mathew Ishbia | ||||||
Mathew Ishbia | ||||||||
Chairman, President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: November 8, 2023 | By: | /s/ Andrew Hubacker | ||||||
Andrew Hubacker | ||||||||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer | ||||||||
(Principal Financial Officer) |
Date: November 8, 2023 | By: | /s/ Mathew Ishbia | ||||||
Mathew Ishbia | ||||||||
Chairman, President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: November 8, 2023 | By: | /s/ Andrew Hubacker | ||||||
Andrew Hubacker | ||||||||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer | ||||||||
(Principal Financial Officer) |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue | ||||
Loan production income | $ 288,930 | $ 172,402 | $ 775,111 | $ 852,808 |
Loan servicing income | 200,428 | 196,781 | 612,205 | 574,847 |
Change in fair value of mortgage servicing rights | 92,909 | 236,780 | (219,730) | 434,912 |
Interest income | 94,849 | 78,210 | 258,324 | 207,625 |
Total revenue, net | 677,116 | 684,173 | 1,425,910 | 2,070,192 |
Expenses | ||||
Salaries, commissions and benefits | 135,333 | 135,028 | 387,716 | 434,620 |
Direct loan production costs | 36,184 | 20,498 | 76,285 | 72,973 |
Marketing, travel, and entertainment | 20,117 | 17,730 | 58,915 | 51,192 |
Depreciation and amortization | 11,563 | 11,426 | 34,674 | 33,522 |
General and administrative | 44,904 | 51,649 | 132,214 | 129,881 |
Servicing costs | 33,640 | 37,596 | 102,160 | 129,215 |
Interest expense | 93,724 | 73,136 | 239,445 | 191,069 |
Other expense (income) | (76) | 6,729 | 2,386 | 23,793 |
Total expenses | 375,389 | 353,792 | 1,033,795 | 1,066,265 |
Earnings before income taxes | 301,727 | 330,381 | 392,115 | 1,003,927 |
Provision for income taxes | 734 | 4,771 | 941 | 9,585 |
Net income | 300,993 | 325,610 | 391,174 | 994,342 |
Net income attributable to non-controlling interests | 282,762 | 313,914 | 377,326 | 952,350 |
Net income attributable to UWM Holdings Corporation | $ 18,231 | $ 11,696 | $ 13,848 | $ 41,992 |
Earnings per share of Class A common stock (see Note 16): | ||||
Basic (in usd per share) | $ 0.20 | $ 0.13 | $ 0.15 | $ 0.45 |
Diluted (in usd per share) | $ 0.15 | $ 0.13 | $ 0.15 | $ 0.45 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 93,290,736 | 92,571,886 | 93,107,576 | 92,441,342 |
Diluted (in shares) | 1,596,624,780 | 92,571,886 | 93,107,576 | 92,441,342 |
Organization, Basis of Presentation and Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Summary of Significant Accounting Policies | ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization UWM Holdings Corporation, through its consolidated subsidiaries (collectively, the “Company”), engages in the origination, sale and servicing of residential mortgage loans. The Company is organized in Delaware but based in Michigan, and originates and services loans throughout the U.S. The Company is approved as a Title II, non-supervised direct endorsement mortgagee with the U.S. Department of Housing and Urban Development (or “HUD”). In addition, the Company is an approved issuer with the Government National Mortgage Association (or “Ginnie Mae”), as well as an approved seller and servicer with the Federal National Mortgage Association (or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (or “Freddie Mac”). The Company (f/k/a Gores Holdings IV, Inc.) was incorporated in Delaware on June 12, 2019. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On September 22, 2020, the Company entered into a Business Combination Agreement (the “Business Combination Agreement”) by and among the Company, SFS Holding Corp., a Michigan corporation (“SFS Corp.”), United Wholesale Mortgage, LLC, a Michigan limited liability company (“UWM”), and UWM Holdings, LLC, a newly formed Delaware limited liability company (“Holdings LLC” and, together with UWM, the “UWM Entities”). The business combination with the UWM Entities closed on January 21, 2021. Prior to the closing of the business combination with the UWM Entities, SFS Corp. was the sole member of UWM, which had one unit authorized, issued and outstanding. On January 21, 2021, SFS Corp. contributed its equity interest in UWM to Holdings LLC and adopted the Amended and Restated Operating Agreement to admit Holdings LLC as UWM's sole member and its manager. Upon completion of the business combination transaction, (i) Holdings LLC issued approximately 6% of its units (Class A Common Units) to the Company, (ii) SFS Corp. retained approximately 94% of the units (Class B Common Units) in Holdings LLC and accordingly retained approximately 94% of the economic ownership interest of the combined company and (iii) Holdings LLC became a consolidated subsidiary of the Company, as the Company is the sole managing member of Holdings LLC. The economic interest in Holdings LLC owned by SFS Corp. is presented as a non-controlling interest in these condensed consolidated financial statements. See Note 10 - Non-Controlling Interests for further information. Following the consummation of the transactions contemplated by the Business Combination Agreement, the Company is organized in an “Up-C” structure in which UWM (the operating subsidiary) is held directly by Holdings LLC, and the Company’s only material direct asset consists of Class A Common Units in Holdings LLC. The Company’s current capital structure authorizes Class A common stock, Class B common stock, Class C common stock and Class D common stock. The Class A common stock and Class C common stock each provide holders with one vote on all matters submitted to a vote of stockholders, and the Class B common stock and Class D common stock each provide holders with 10 votes on all matters submitted to a vote of stockholders. The holders of Class C common stock and Class D common stock do not have any of the economic rights (including rights to dividends and distributions upon liquidation) provided to holders of Class A common stock and Class B common stock. Each Holdings LLC Class B Common Unit held by SFS Corp. may be exchanged at the option of the Company, along with its stapled share of Class D common stock, for either, (a) cash or (b) one share of the Company’s Class B common stock. Each share of Class B common stock is convertible into one share of Class A common stock upon the transfer or assignment of such share from SFS Corp. to a non-affiliated third-party. See Note 10 - Non-Controlling Interests for further information. Pursuant to the Business Combination Agreement, SFS Corp. is entitled to receive an aggregate of up to 90,761,687 earn-out shares in the form of Class B Common Units in Holdings LLC and Class D common shares upon attainment of certain stock price targets prior to January 2026. There are four different triggering events that affect the number of earn-out shares that will be issued based upon the per share price of Class A common stock ranging from $13.00 to $19.00 per share. The Company accounts for the potential earn-out shares as a component of stockholders’ equity in accordance with the applicable guidance in U.S. GAAP. See Note 16 - Earnings Per Share for further information. Upon completion of the business combination transaction, the directors and officers of Gores Holdings IV, Inc. (the “Gores Directors and Officers”) resigned, the Company appointed new directors to its Board, and certain officers of UWM became officers of the Company. Pursuant to the Business Combination Agreement, the Company is obligated to indemnify the Gores Directors and Officers for costs or losses incurred prior to or after the closing of the business combination transaction that arose by reason of the fact that he or she is or was a director or officer of Gores Holdings IV, Inc. The Gores Directors and Officers have been named as defendants in class action suits in Delaware Chancery Court in which it is alleged that they breached their fiduciary duties to shareholders of Gores Holdings, IV. Pursuant to its obligations under the Business Combination Agreement, the Company is indemnifying the Gores Directors and Officers in connection with these lawsuits. The Company has insurance which it believes will cover any material liability that could arise pursuant to its indemnification obligations to the Gores Directors and Officers. Basis of Presentation The condensed consolidated financial statements are unaudited and presented in U.S. dollars. They have been prepared in accordance with U.S. GAAP pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, these condensed consolidated financial statements include all normal and recurring adjustments considered necessary for a fair statement of our results of operations, financial position and cash flows for the periods presented. However, our results of operations for any interim period are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. 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 condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Loans Eligible for Repurchase from Ginnie Mae When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the previously sold assets are required to be re-recognized on the condensed consolidated balance sheets as assets and corresponding liabilities at the loan's unpaid principal balance, regardless of the Company’s intent to exercise its option to repurchase. The recognition of previously sold loans does not impact the accounting for the previously recognized mortgage servicing rights (or “MSRs”). Income Taxes The Company follows the asset and liability method of accounting for income taxes under applicable U.S. GAAP. Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes in the U.S. and various state and local jurisdictions. The tax laws are often complex and may be subject to different interpretations. To determine the financial statement impact of accounting for income taxes, the Company must make assumptions and judgements about how to interpret and apply complex tax laws to numerous transactions and business events, as well as make judgements regarding the timing of when certain items may affect taxable income. Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. If based upon all available positive and negative evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if the Company determines that it is more likely than not that all or part of the deferred tax asset will become realizable. Our interpretations of tax laws are subject to review and examination by various taxing authorities and jurisdictions where the Company operates, and disputes may occur regarding our view on a tax position. These disputes over interpretations with the various tax authorities may be settled by audit, administrative appeals or adjudication in the court systems of the tax jurisdictions in which the Company operates. We regularly review whether we may be assessed additional income taxes as a result of the resolution of these matters, and the Company records additional reserves as appropriate. In addition, the Company may revise its estimate of income taxes due to changes in income tax laws, legal interpretations, and business strategies. We recognize the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We record interest and penalties related to uncertain tax positions as a component of the income tax provision. See Note 14 – Income Taxes for further information. Tax Receivable Agreement In connection with the Business Combination Agreement, the Company entered into a Tax Receivable Agreement with SFS Corp. that will obligate the Company to make payments to SFS Corp. of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes as a result of (i) certain increases in tax basis resulting from exchanges of Holdings LLC common units; (ii) imputed interest deemed to be paid by the Company as a result of payments it makes under the tax receivable agreement; (iii) certain increases in tax basis resulting from payments the Company makes under the tax receivable agreement; and (iv) disproportionate allocations (if any) of tax benefits to the Company which arise from, among other things, the sale of certain assets as a result of section 704(c) of the Internal Revenue Code of 1986. The Company will retain the benefit of the remaining 15% of these tax savings. The Company's potential liability under the Tax Receivable Agreement is accounted for as a loss contingency (the liability is recorded within "Accounts payable, accrued expenses and other"), with changes in the liability measured and recorded when estimated amounts due under the Tax Receivable Agreement are probable and can be reasonably estimated, and reported as part of "Other expense" in the condensed consolidated statements of operations. As of September 30, 2023, the total liability recorded for the Tax Receivable Agreement was approximately $15.2 million. Related Party Transactions The Company enters into various transactions with related parties. See Note 13 – Related Party Transactions for further information. Public and Private Warrants As part of Gores Holdings IV, Inc.'s initial public offering ("IPO") in January 2020, Gores Holdings IV, Inc. issued to third party investors 42.5 million units, consisting of one share of Class A common stock of Gores Holdings IV, Inc. and one-fourth of one warrant, at a price of $10.00 per unit. Each whole warrant entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, Gores Holdings IV, Inc. completed the private sale of 5.25 million warrants to Gores Holdings IV, Inc.'s sponsor at a purchase price of $2.00 per warrant (the “Private Warrants”). Each Private Warrant allows the sponsor to purchase one share of Class A common stock at $11.50 per share. Upon the closing of the business combination transaction, the Company had 10,624,987 Public Warrants and 5,250,000 Private Warrants outstanding. The Private Warrants and the shares of common stock issuable upon the exercise of the Private Warrants were not transferable, assignable or salable until after the completion of the business combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Company evaluated the Public and Private Warrants under applicable U.S. GAAP and concluded that they do not meet the criteria to be classified in stockholders’ equity due to certain terms of the warrants. Since the Public and Private Warrants meet the definition of derivatives, the Company recorded these warrants as liabilities on the balance sheet at fair value upon the closing of the business combination transaction and subsequently (recorded within "Accounts payable, accrued expenses and other"), with the change in their respective fair values recognized in the condensed consolidated statement of operations (recorded within "Other expense"). During the three months ended September 30, 2023 and 2022, the Company recognized $2.0 million and $0.8 million, respectively, of other income related to the change in fair value of warrants. During the nine months ended September 30, 2023 and 2022, the Company recognized $1.3 million of other expense and $7.7 million of other income, respectively, related to the change in fair value of warrants. Stock-Based Compensation Effective upon the closing of the business combination transaction, the Company adopted the UWM Holdings Corporation 2020 Omnibus Incentive Plan (the “2020 Plan”) which was approved by stockholders on January 20, 2021. The 2020 Plan allows for the grant of stock options, restricted stock, restricted stock units (“RSUs”), and stock appreciation rights. Pursuant to the 2020 Plan, the Company reserved a total of 80,000,000 shares of common stock for issuance of stock-based compensation awards, and 72,018,682 shares remained available for issuance under the 2020 Plan as of September 30, 2023. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period based on the fair value of the award on the date of grant and is included in "Salaries, commissions and benefits" on the condensed consolidated statements of operations. The Company made a policy election to recognize the effects of forfeitures as they occur. See Note 15 – Stock-based Compensation for further information. Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which was subsequently amended by ASU No. 2021-1, Reference Rate Reform (Topic 848): Scope, which was issued in January 2021 and will remain effective through December 31, 2024. This guidance provides practical expedients to address existing guidance on contract modifications due to the expected market transition from the London Inter-bank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The ASU was effective upon issuance on a prospective basis beginning January 1, 2020. Alternative base rate language, which may include SOFR to agreements for its derivatives, has been added to warehouse and other lines of credit and debt obligations that use LIBOR. The Company has applied the optional expedients under ASU 2020-04 and accounted for the contract modifications related to reference rate reform prospectively. There was no impact on the Company’s condensed consolidated financial statements from adopting this standard. Accounting Standards Issued but Not Yet Effective In 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), which was issued in February 2016 and will remain effective through December 31, 2024. This guidance addresses existing guidance that applies to the amortization of leasehold improvements made by lessees in lease arrangements between entities under common control. The ASU is effective for fiscal years beginning after December 15, 2023. The Company does not anticipate this will have a material impact on its condensed consolidated financial statements and related disclosures.
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Mortgage Loans at Fair Value |
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Mortgage Loans at Fair Value | MORTGAGE LOANS AT FAIR VALUE The table below includes the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option has been elected for mortgage loans, as this accounting treatment best reflects the economic consequences of the Company’s mortgage origination and related hedging and risk management activities. The difference between the UPB and estimated fair value is made up of the premiums paid on mortgage loans, as well as the fair value adjustment as of the balance sheet date. The change in fair value adjustment is recorded in the “Loan production income” line item of the condensed consolidated statements of operations.
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Derivatives |
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Derivatives | DERIVATIVES The Company enters into Interest Rate Lock Commitments (“IRLCs”) to originate residential mortgage loans at specified interest rates and terms within a specified period of time with customers who have applied for a loan and may meet certain credit and underwriting criteria. To determine the fair value of the IRLCs, each contract is evaluated based upon its stage in the application, approval and origination process for its likelihood of consummating the transaction (or “pullthrough”). Pullthrough is estimated based on changes in market conditions, loan stage, and actual borrower behavior using a historical analysis of IRLC closing rates. Generally, the further into the process the more likely that the IRLC will convert to a loan. The blended average pullthrough rate was 80% and 77%, as of September 30, 2023 and December 31, 2022, respectively. The Company primarily uses Forward-settling Loan Sale Commitments (“FLSCs”) to economically hedge its pipeline of IRLCs and mortgage loans at fair value. The notional amounts and fair values of derivative financial instruments not designated as hedging instruments were as follows (in thousands):
(a)Notional amounts have been adjusted for pullthrough rates of 80% and 77%, respectively.
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Accounts Receivable, Net |
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Accounts Receivable, Net | ACCOUNTS RECEIVABLE, NET The following summarizes accounts receivable, net (in thousands):
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Mortgage Servicing Rights |
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Mortgage Servicing Rights | MORTGAGE SERVICING RIGHTS Mortgage servicing rights are recognized on the condensed consolidated balance sheets when loans are sold and the associated servicing rights are retained. The Company's MSRs are measured at fair value, which is determined using a valuation model that calculates the present value of estimated future net servicing cash flows. The model includes estimates of prepayment speeds, discount rate, cost to service, float earnings, contractual servicing fee income, and ancillary income and late fees, among others. These estimates are supported by market and economic data collected from various external sources. The unpaid principal balance of mortgage loans serviced for others approximated $281.4 billion and $312.5 billion at September 30, 2023 and December 31, 2022, respectively. Conforming conventional loans serviced by the Company have previously been sold to Fannie Mae and Freddie Mac on a non-recourse basis, whereby credit losses are generally the responsibility of Fannie Mae and Freddie Mac, and not the Company. Loans serviced for Ginnie Mae are insured by the FHA, guaranteed by the VA, or insured by other applicable government programs. While the above guarantees and insurance are the responsibility of those parties, the Company is still subject to potential losses related to its servicing of these loans. Those estimated losses are incorporated into the valuation of MSRs. The following table summarizes changes in the MSR assets for the three and nine months ended September 30, 2023 and 2022 (in thousands):
The following is a summary of the components of change in fair value of servicing rights as reported in the condensed consolidated statements of operations (in thousands):
During the nine months ended September 30, 2023 and 2022, the Company sold MSRs on loans with an aggregate UPB of approximately $99.2 billion and $101.3 billion, respectively, for proceeds of approximately $1.3 billion and $1.2 billion, respectively. In addition, during the nine months ended September 30, 2023, the Company sold excess servicing cash flows on certain agency loans with a total UPB of approximately $78.1 billion for proceeds of approximately $428.7 million. In connection with these sales, the Company recorded a net $36.9 million and $47.0 million, respectively, for its estimated obligation for protection provisions granted to the buyers and transaction costs, which is reflected as part of the change in fair value of MSRs in the condensed consolidated statements of operations. There were no excess servicing cash flow sales during the nine months ended September 30, 2022. The following table summarizes the loan servicing income recognized during the three and nine months ended September 30, 2023 and 2022, respectively (in thousands):
The key unobservable inputs used in determining the fair value of the Company’s MSRs were as follows at September 30, 2023 and December 31, 2022, respectively:
The hypothetical effect of adverse changes in these key assumptions would result in a decrease in fair values as follows at September 30, 2023 and December 31, 2022, respectively, (in thousands):
These sensitivities are hypothetical and should be used with caution. As the table demonstrates, the Company’s methodology for estimating the fair value of MSRs is highly sensitive to changes in assumptions. For example, actual prepayment experience may differ, and any difference may have a material effect on MSR fair value. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the table above, the effect of a variation in a particular assumption of the fair value of the MSRs is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may indicate higher prepayments; however, this may be partially offset by lower prepayments due to other factors such as a borrower’s diminished opportunity to refinance, or lower discount rates as investors may accept lower returns in a lower interest rate environment), which may magnify or counteract the sensitivities. Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made as of a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time.
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Warehouse and Other Secured Lines of Credit |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse and Other Secured Lines of Credit | WAREHOUSE AND OTHER SECURED LINES OF CREDIT Warehouse Lines of Credit The Company had the following warehouse lines of credit with financial institutions as of September 30, 2023 and December 31, 2022, respectively, (in thousands):
1 An aggregate of $650.0 million of these line amounts is committed as of September 30, 2023. 2 This warehouse line of credit agreement expired pursuant to its terms prior to September 30, 2023. 3 This warehouse line of credit agreement expired pursuant to its terms subsequent to September 30, 2023. We are an approved lender for loan early funding facilities with Fannie Mae through its As Soon As Pooled Plus (“ASAP+”) program and Freddie Mac through its Early Funding (“EF”) program. As an approved lender for these early funding programs, we enter into an agreement to deliver closed and funded one-to-four family residential mortgage loans, each secured by related mortgages and deeds of trust, and receive funding in exchange for such mortgage loans in some cases before we have grouped them into pools to be securitized by Fannie Mae or Freddie Mac. All such mortgage loans must adhere to a set of eligibility criteria to be acceptable. As of September 30, 2023, no amounts were outstanding through the ASAP+ program or the EF program. As of September 30, 2023, the Company had pledged mortgage loans at fair value as collateral under the above warehouse lines of credit. The above agreements also contain covenants which include certain financial requirements, including maintenance of minimum tangible net worth, minimum liquidity, maximum debt to net worth ratio, and net income, as defined in the agreements. The Company was in compliance with all of these covenants as of September 30, 2023. MSR Facilities In the third quarter of 2022, the Company's consolidated subsidiary, UWM, entered into a Loan and Security Agreement with Citibank, N.A., providing UWM with up to $1.5 billion of uncommitted borrowing capacity to finance the origination, acquisition or holding of certain mortgage servicing rights (the “MSR Facility”). The MSR Facility is collateralized by all of UWM's mortgage servicing rights that are appurtenant to mortgage loans pooled in securitization by Fannie Mae or Freddie Mac that meet certain criteria. Available borrowings under the MSR Facility are based on the fair market value of the collateral. Borrowings under the MSR Facility will bear interest based on SOFR plus an applicable margin. The MSR Facility contains covenants which include certain financial requirements, including maintenance of minimum tangible net worth, minimum liquidity, maximum debt to net worth ratio, and net income as defined in the agreement. As of September 30, 2023, the Company was in compliance with all applicable covenants. The MSR Facility has a maturity date of November 5, 2024. As of September 30, 2023 and December 31, 2022, $250.0 million and $750.0 million, respectively, was outstanding under the MSR Facility. In the first quarter of 2023, the Company's consolidated subsidiary, UWM, entered into a Credit Agreement with Goldman Sachs Bank USA, providing UWM with up to $500.0 million of uncommitted borrowing capacity to finance the origination. acquisition or holding of certain mortgage servicing rights (the "GNMA MSR facility"). The GNMA MSR facility is collateralized by all of UWM's mortgage servicing rights that are appurtenant to mortgage loans pooled in securitization by Ginnie Mae that meet certain criteria. Available borrowings under the GNMA MSR facility are based on the fair market value of the collateral. Borrowings under the GNMA MSR facility will bear interest based on SOFR plus an applicable margin. The GNMA MSR Facility contains covenants which include certain financial requirements, including maintenance of minimum tangible net worth, minimum liquidity, maximum debt to net worth ratio, and net income as defined in the agreement. As of September 30, 2023, the Company was in compliance with all applicable covenants. The GNMA MSR facility has a maturity date of March 20, 2025. As of September 30, 2023, $250.0 million was outstanding under the GNMA MSR facility. Outstanding borrowings under the MSR facilities are reported within the "Secured lines of credit" financial statement line item on the condensed consolidated balance sheets.
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Other Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Borrowings | OTHER BORROWINGS Senior Notes The following is a summary of the senior unsecured notes issued by the Company (in thousands):
(1) Unamortized debt issuance costs and discounts are presented net against the 2025 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $4.7 million and $6.3 million as of September 30, 2023 and December 31, 2022, respectively. (2) Unamortized debt issuance costs and discounts are presented net against the 2029 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $4.8 million and $5.5 million as of September 30, 2023 and December 31, 2022, respectively. (3) Unamortized debt issuance costs and discounts are presented net against the 2027 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $3.2 million and $3.9 million as of September 30, 2023 and December 31, 2022, respectively. 2025 Senior Notes On November 3, 2020, the Company's consolidated subsidiary, UWM, issued $800.0 million in aggregate principal amount of senior unsecured notes due November 15, 2025 (the “2025 Senior Notes”). The 2025 Senior Notes accrue interest at a rate of 5.500% per annum. Interest on the 2025 Senior Notes is due semi-annually on May 15 and November 15 of each year. On or after November 15, 2022, the Company may, at its option, redeem the 2025 Senior Notes in whole or in part during the twelve-month period beginning on the following dates at the following redemption prices: November 15, 2022 at 102.750%; November 15, 2023 at 101.375%; or November 15, 2024 until maturity at 100%, of the principal amount of the 2025 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest. 2029 Senior Notes On April 7, 2021, the Company's consolidated subsidiary, UWM, issued $700.0 million in aggregate principal amount of senior unsecured notes due April 15, 2029 (the “2029 Senior Notes”). The 2029 Senior Notes accrue interest at a rate of 5.500% per annum. Interest on the 2029 Senior Notes is due semi-annually on April 15 and October 15 of each year. On or after April 15, 2024, the Company may, at its option, redeem the 2029 Senior Notes in whole or in part during the twelve-month period beginning on the following dates at the following redemption prices: April 15, 2024 at 102.750%; April 15, 2025 at 101.375%; or April 15, 2026 until maturity at 100%, of the principal amount of the 2029 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest. Prior to April 15, 2024, the Company may, at its option, redeem up to 40% of the aggregate principal amount of the 2029 Senior Notes originally issued at a redemption price of 105.500% of the principal amount of the 2029 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest with the net proceeds of certain equity offerings. In addition, the Company may, at its option, redeem the 2029 Senior Notes prior to April 15, 2024 at a price equal to 100% of the principal amount redeemed plus a “make-whole” premium, plus accrued and unpaid interest. 2027 Senior Notes On November 22, 2021, the Company's consolidated subsidiary, UWM, issued $500.0 million in aggregate principal amount of senior unsecured notes due June 15, 2027 (the "2027 Senior Notes"). The 2027 Senior Notes accrue interest at a rate of 5.750% per annum. Interest on the 2027 Senior Notes is due semi-annually on June 15 and December 15 of each year. On or after June 15, 2024, the Company may, at its option, redeem the 2027 Senior Notes in whole or in part during the twelve-month period beginning on the following dates at the following redemption prices: June 15, 2024 at 102.875%; June 15, 2025 at 101.438%; or June 15, 2026 until maturity at 100.000%, of the principal amount of the 2027 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest. Prior to June 15, 2024, the Company may, at its option, redeem up to 40% of the aggregate principal amount of the 2027 Senior Notes originally issued at a redemption price of 105.75% of the principal amount of the 2027 Senior Notes redeemed on the redemption date plus accrued and unpaid interest with the net proceeds of certain equity offerings. In addition, the Company may, at its option, redeem the 2027 Senior Notes prior to June 15, 2024 at a price equal to 100% of the principal amount redeemed plus a "make-whole" premium, plus accrued and unpaid interest. The indentures governing the 2025, 2029 and 2027 Senior Notes contain operating covenants and restrictions, subject to a number of exceptions and qualifications. The Company was in compliance with the terms of the indentures as of September 30, 2023. Revolving Credit Facility On August 8, 2022, UWM entered into the Revolving Credit Agreement (the “Revolving Credit Agreement”) between UWM, as the borrower, and SFS Corp., as the lender. The Revolving Credit Agreement provides for, among other things, a $500.0 million unsecured revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility had an initial one-year term and automatically renews for successive one-year periods unless terminated by either party. Amounts borrowed under the Revolving Credit Facility may be borrowed, repaid and reborrowed from time to time, and accrue interest at the Applicable Prime Rate (as defined in the Revolving Credit Agreement). UWM may utilize the Revolving Credit Facility in connection with: (i) operational and investment activities, including but not limited to funding and/or advances related to (a) servicing rights, (b) ‘scratch and dent’ loans, (c) margin requirements, and (d) equity in loans held for sale; and (ii) general corporate purposes. The Revolving Credit Agreement contains certain financial and operating covenants and restrictions, subject to a number of exceptions and qualifications, and the availability of funds under the Revolving Credit Facility is subject to our continued compliance with these covenants. The Company was in compliance with these covenants as of September 30, 2023. No amounts were outstanding under the Revolving Credit Facility as of September 30, 2023 or December 31, 2022.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Representations and Warranties Reserve Loans sold to investors which the Company believes met investor and agency underwriting guidelines at the time of sale may be subject to repurchase by the Company in the event of specific default by the borrower or upon subsequent discovery that underwriting or documentation standards were not explicitly satisfied. The Company may, upon mutual agreement, indemnify the investor against future losses on such loans or be subject to other guaranty requirements and subject to loss. The Company initially records its exposure under such guarantees at estimated fair value upon the sale of the related loan, within "Accounts payable, accrued expenses, and other" as well as within "loan production income," and continues to evaluate its on-going exposures in subsequent periods. The reserve is estimated based on the Company’s assessment of its obligations, including expected losses, expected frequency, the overall potential remaining exposure, as well as an estimate for a market participant’s potential readiness to stand by to perform on such obligations. The Company repurchased $40.4 million and $91.3 million in UPB of loans during the three months ended September 30, 2023 and 2022, respectively, and $201.9 million and $279.9 million in UPB of loans during the nine months ended September 30, 2023 and 2022, respectively, related to its representations and warranties obligations. The activity of the representations and warranties reserve was as follows (in thousands):
Commitments to Originate Loans As of September 30, 2023, the Company had agreed to extend credit to potential borrowers for approximately $23.8 billion. These contracts represent off-balance sheet credit risk where the Company may be required to extend credit to these borrowers based on the prevailing interest rates and prices at the time of execution.
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Variable Interest Entities |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Upon completion of the business combination transaction described in Note 1, the Company became the managing member of Holdings LLC with 100% of the management and voting power in Holdings LLC. In its capacity as managing member, the Company has the sole authority to make decisions on behalf of Holdings LLC and bind Holdings LLC to signed agreements. Further, Holdings LLC maintains separate capital accounts for its investors as a mechanism for tracking earnings and subsequent distribution rights. Management concluded that the Company is Holdings LLC’s primary beneficiary. As the primary beneficiary, the Company consolidates the results and operations of Holdings LLC for financial reporting purposes under the variable interest entity (“VIE”) consolidation model. The Company's relationship with Holdings LLC results in no recourse to the general credit of the Company. Holdings LLC and its consolidated subsidiaries represent the Company's sole investment. The Company shares in the income and losses of Holdings LLC in direct proportion to the Company's ownership interest. Further, the Company has no contractual requirement to provide financial support to Holdings LLC. The Company's financial position, performance and cash flows effectively represent those of Holdings LLC and its consolidated subsidiaries as of and for the three and nine months ended September 30, 2023 and 2022. In 2021, UWM began selling some of the mortgage loans that it originates through private label securitization transactions. There have been no loan sales through UWM's private label securitization transactions since 2021. In executing these transactions, the Company sells mortgage loans to a securitization trust for cash and, in some cases, retained interests in the trust. The securitization entities are funded through the issuance of beneficial interests in the securitized assets. The beneficial interests take the form of trust certificates, some of which are sold to investors and some of which may be retained by the Company due to regulatory requirements. Retained beneficial interests consist of a 5% vertical interest in the assets of the securitization trusts, in order to comply with the risk retention requirements applicable to certain of the Company's securitization transactions. The Company has elected the fair value option for subsequently measuring the retained beneficial interests in the securitization trusts, and these investments are presented as “Investment securities at fair value, pledged” in the condensed consolidated balance sheet as of September 30, 2023 and December 31, 2022. Changes in the fair value of these retained beneficial interests are reported as part of "Other expense (income)" in the condensed consolidated statements of operations. The Company also retains the servicing rights on the securitized mortgage loans. The Company has accounted for these transactions as sales of financial assets. The securitization trusts that purchase the mortgage loans from the Company and securitize those mortgage loans are VIEs, and the Company holds variable interests in certain of these entities. Because the Company does not have the obligation to absorb the VIEs’ losses or the right to receive benefits from the VIEs that could potentially be significant to the VIEs, the Company is not the primary beneficiary of these securitization trusts and is not required to consolidate these VIEs. The Company separately entered into sale and repurchase agreements for a portion of the retained beneficial interests in the securitization trusts, which have been accounted for as borrowings against investment securities. As of September 30, 2023, $102.5 million of the $104.5 million of investment securities at fair value have been pledged as collateral for these borrowings against investment securities. The outstanding principal balance of these borrowings was approximately $97.3 million with remaining maturities ranging from approximately any's maximum exposure to loss in these non-consolidated VIEs is limited to the retained beneficial interests in the securitization trusts.
to five months as of September 30, 2023, and interest rates based on SOFR plus a spread. The Comp |
Non-controlling Interests |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-controlling Interests | NON-CONTROLLING INTERESTS The non-controlling interest balance represents the economic interest in Holdings LLC held by SFS Corp. The following table summarizes the ownership of units in Holdings LLC as of:
The non-controlling interest holder has the right to exchange Class B Common Units, together with a corresponding number of shares of our Class D common stock or Class C common stock (together referred to as “Stapled Interests”), for, at the Company's option, (i) shares of the Company's Class B common stock or Class A common stock or (ii) cash from a substantially concurrent public offering or private sale (based on the price of the Company's Class A common stock). As such, future exchanges of Stapled Interests by the non-controlling interest holder will result in a change in ownership and reduce or increase the amount recorded as non-controlling interest and increase or decrease additional paid-in-capital or retained earnings when Holdings LLC has positive or negative net assets, respectively. As of September 30, 2023, SFS Corp. has not exchanged any Stapled Interests. During the nine months ended September 30, 2023, the Company issued 1,078,295 shares of Class A common stock, net of withholdings, which primarily related to the vesting of RSUs under its stock-based compensation plan and grants to the Company's non-employee directors. During the nine months ended September 30, 2022, the Company issued 963,120 shares of Class A common stock which primarily related to the vesting of RSUs under its stock-based compensation plan and grants to the Company's non-employee directors. This resulted in an equivalent increase in the number of Class A Common Units of Holdings LLC held by the Company, and a re-measurement of the non-controlling interest in Holdings LLC due to the change in relative ownership of Holdings LLC with no change in control. The impact of the re-measurement of the non-controlling interest is reflected in the condensed consolidated statement of changes in equity.
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Regulatory Net Worth Requirements |
9 Months Ended |
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Sep. 30, 2023 | |
Mortgage Banking [Abstract] | |
Regulatory Net Worth Requirements | REGULATORY NET WORTH REQUIREMENTSCertain secondary market agencies and state regulators require UWM to maintain minimum net worth and capital requirements to remain in good standing with the agencies. Noncompliance with an agency’s requirements can result in such agency taking various remedial actions up to and including terminating UWM’s ability to sell loans to and service loans on behalf of the respective agency. UWM is required to maintain certain minimum net worth, minimum liquidity, and minimum capital ratio requirements, including those established by HUD, Ginnie Mae, Freddie Mac and Fannie Mae. As of September 30, 2023, the most restrictive of these requirements require UWM to maintain a minimum net worth of $794.3 million, liquidity of $273.4 million, and a minimum capital ratio of 6%. At September 30, 2023, UWM was in compliance with these requirements. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTSFair value is defined under U.S. GAAP as the price that would be received if an asset were sold or the price that would be paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. Required disclosures include classification of fair value measurements within a three-level hierarchy (Level 1, Level 2 and Level 3). Classification of a fair value measurement within the hierarchy is dependent on the classification and significance of the inputs used to determine the fair value measurement. Observable inputs are those that are observed, implied from, or corroborated with externally available market information. Unobservable inputs represent the Company’s estimates of market participants’ assumptions. Fair value measurements are classified in the following manner: Level 1—Valuation is based on quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Valuation is based on either observable prices for identical assets or liabilities in inactive markets, observable prices for similar assets or liabilities, or other inputs that are derived directly from, or through correlation to, observable market data at the measurement date. Level 3—Valuation is based on the Company’s or others’ models using significant unobservable assumptions at the measurement date that a market participant would use. In determining fair value measurements, the Company uses observable inputs whenever possible. The level of a fair value measurement within the hierarchy is dependent on the lowest level of input that has a significant impact on the measurement as a whole. If quoted market prices are available at the measurement date or are available for similar instruments, such prices are used in the measurements. If observable market data is not available at the measurement date, judgement is required to measure fair value. The following is a description of measurement techniques for items recorded at fair value on a recurring basis. There were no material items recorded at fair value on a nonrecurring basis as of September 30, 2023 or December 31, 2022. Mortgage loans at fair value: The Company has elected the fair value option for mortgage loans. Accordingly, the fair values of mortgage loans are based on valuation models that use the market price for similar loans sold in the secondary market. As these prices are derived from market observable inputs, they are categorized as Level 2. IRLCs: The Company's interest rate lock commitments are derivative instruments that are recorded at fair value based on valuation models that use the market price for similar loans sold in the secondary market. The IRLCs are then subject to an estimated loan funding probability, or “pullthrough rate.” Given the significant and unobservable nature of the pullthrough rate assumption, IRLC fair value measurements are classified as Level 3. MSRs: The fair value of MSRs is determined using a valuation model that calculates the present value of estimated future net servicing cash flows. The model includes estimates of prepayment speeds, discount rate, cost to service, float earnings, contractual servicing fee income, and ancillary income and late fees, among others. These estimates are supported by market and economic data collected from various outside sources. These fair value measurements are classified as Level 3. FLSCs: The Company enters into forward loan sales commitments to sell certain mortgage loans which are recorded at fair value based on valuation models. The Company’s expectation of the amount of its interest rate lock commitments that will ultimately close is a factor in determining the position. The valuation models utilize the fair value of related mortgage loans determined using observable market data, and therefore, the fair value measurements of these commitments are categorized as Level 2. Investment securities at fair value, pledged: The Company occasionally sells mortgage loans that it originates through private label securitization transactions. In executing these securitizations, the Company sells mortgage loans to a securitization trust for cash and, in some cases, retained interests in the trust. The Company has elected the fair value option for subsequently measuring the retained beneficial interests in the securitization trusts. The fair value of these investment securities is primarily based on observable market data and therefore categorized as Level 2. Public and Private Warrants: The fair value of Public Warrants is based on the price of trades of these securities in active markets and therefore categorized as Level 1. The fair value of the Private Warrants is based on observable market data and therefore categorized as Level 2. Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis The following are the major categories of financial assets and liabilities measured at fair value on a recurring basis (in thousands):
The following table presents quantitative information about the inputs used in recurring Level 3 fair value financial instruments and the fair value measurements for IRLCs:
Refer to Note 5 - Mortgage Servicing Rights for further information on the unobservable inputs used in measuring the fair value of the Company’s MSRs and for the roll-forward of MSRs for the three and nine months ended September 30, 2023. Level 3 Issuances and Transfers The Company enters into IRLCs which are considered derivatives. If the contract converts to a loan, the implied value, which is solely based upon interest rate changes, is incorporated in the basis of the fair value of the loan. If the IRLC does not convert to a loan, the basis is reduced to zero as the contract has no continuing value. The Company does not track the basis of the individual IRLCs that convert to a loan, as that amount has no relevance to the presented condensed consolidated financial statements. Other Financial Instruments The following table presents the carrying amounts and estimated fair value of the Company's financial liabilities that are not measured at fair value on a recurring or nonrecurring basis (in thousands):
The fair value of the 2025, 2029 and 2027 Senior Notes was estimated using Level 2 inputs, including observable trading information from independent sources. Due to their nature and respective terms (including the variable interest rates on warehouse and other lines of credit and borrowings against investment securities), the carrying value of cash and cash equivalents, receivables, payables, equipment notes payable, borrowings against investment securities and warehouse and other lines of credit approximate their fair value as of September 30, 2023 and December 31, 2022, respectively.
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Related Party Transactions |
9 Months Ended |
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Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS In the normal course of business, the Company engages in the following significant related party transactions: •The Company’s corporate campus is located in buildings and on land that are owned by entities controlled by the Company’s founder (who is a current member of the Board of Directors) and its CEO and leased by the Company from these entities. The Company also makes leasehold improvements to these properties for the benefit of the Company, for which the Company is responsible pursuant to the terms of the lease agreements; •Legal services are provided to the Company by a law firm in which the Company’s founder is a partner; •The Company leases aircraft owned by entities controlled by the Company’s CEO to facilitate travel of Company executives for business purposes. Our executive officers (other than the CEO) may, from time to time, be authorized by the CEO to use the aircraft for personal trips; •Employee lease agreements, pursuant to which the Company’s team members provide certain administrative services to entities controlled by the Company’s founder and its CEO in exchange for fees paid by these entities to the Company. For the three months ended September 30, 2023 and 2022, the Company made net payments of approximately $5.1 million and $4.5 million, respectively, to various companies related through common ownership. Such related party payments were comprised of, (i) with respect to the three months ended September 30, 2023, approximately $4.9 million in rent and other occupancy related fees and $0.2 million in legal fees and (ii) with respect to the three months ended September 30, 2022, approximately $4.1 million in rent and other occupancy related fees, $0.2 million in legal fees and $0.2 million in other general and administrative expenses. Additionally, the Company made payments of $0.1 million to unrelated third parties for pilots and ancillary services related to usage of the aircraft for each of the three months ended September 30, 2023 and 2022. For the nine months ended September 30, 2023 and 2022, the Company made net payments of approximately $15.8 million and $20.1 million, respectively, to various companies related through common ownership. Such related party payments were comprised of, (i) with respect to the nine months ended September 30, 2023, approximately $15.1 million in rent and other occupancy related fees, $0.5 million in legal fees, and $0.2 million in other general and administrative expenses and (ii) with respect to the nine months ended September 30, 2022, approximately $19.1 million in rent and other occupancy related fees, $0.5 million in legal fees and $0.5 million in other general and administrative expenses. Additionally, the Company made payments of $0.2 million and $0.3 million to unrelated third parties for pilots and ancillary services related to usage of the aircraft for the nine months ended September 30, 2023 and 2022, respectively. UWM entered into a $500.0 million unsecured Revolving Credit Facility with SFS Corp. as the lender during the third quarter of 2022. Refer to Note 7 - Other borrowings for further details.
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Income Taxes |
9 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXESUWM is treated as a single member LLC owned by Holdings LLC. As a single member LLC, all taxable income or loss generated by UWM will pass through and be included in the income or loss of Holdings LLC. Holdings LLC is treated as a partnership for federal and most state and local income tax jurisdictions. Due to its partnership tax treatment, Holdings LLC is not subject to U.S. federal or most state and local incomes taxes. Any taxable income or loss generated by Holdings LLC after the Company’s acquisition of its portion of Holdings LLC is passed through and included in the taxable income or loss of its members, including the Company. The Company is a C Corporation and is subject to U.S. federal, state and local income taxes with respect to its attributable share of any taxable income of Holdings LLC. The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of its annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The quarterly tax provision and estimate of the Company’s annual effective tax rate are subject to variation due to several factors including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company conducts business, and tax law developments. For the three months ended September 30, 2023 and 2022, the Company’s effective tax rate was 0.24% and 1.44%, respectively. For the nine months ended September 30, 2023 and 2022, the Company’s effective tax rate was 0.24% and 0.95% respectively. The variations between the Company’s effective tax rate and the U.S. statutory rate are primarily due to the portion (approximately 94%) of the Company’s earnings attributable to non-controlling interests. The Company recognizes deferred tax assets to the extent it believes these assets are more-likely-than-not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. The Company recognizes uncertain income tax positions when it is not more-likely-than-not that a tax position will be sustained upon examination. As of September 30, 2023, the Company has not recognized any uncertain tax positions. The Company accrues interest and penalties related to uncertain tax positions as a component of the income tax provision. No interest or penalties were recognized in income tax expense for the three and nine months ended September 30, 2023 or 2022. The Company may be subject to potential examination by U.S. federal or state jurisdiction authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income amounts in various tax jurisdictions and compliance with U.S. federal or state tax laws. Tax years 2019 and forward remain open under applicable statute of limitations with relevant taxing authorities.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION The following is a summary of RSU activity for the three and nine months ended September 30, 2023 and 2022:
Stock-based compensation expense recognized for the three months ended September 30, 2023 and 2022 was $3.9 million and $2.0 million, respectively. Stock-based compensation expense recognized for the nine months ended September 30, 2023 and 2022 was $9.9 million and $5.5 million, respectively. As of September 30, 2023, there was $23.1 million of unrecognized compensation expense related to unvested awards which is expected to be recognized over a weighted average period of 3.0 years.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE As of September 30, 2023, the Company had two classes of economic shares authorized - Class A and Class B common stock. The Company applies the two-class method for calculating earnings per share for Class A common stock and Class B common stock. In applying the two-class method, the Company allocates undistributed earnings equally on a per share basis between Class A and Class B common stock. According to the Company’s certificate of incorporation, the holders of the Class A and Class B common stock are entitled to participate in earnings equally on a per-share basis, as if all shares of common stock were of a single class, and in such dividends as may be declared by the Board of Directors. RSUs awarded as part of the Company’s stock compensation plan are included in weighted-average Class A shares outstanding in the calculation of basic earnings per share once the RSUs are vested and shares are issued. Basic earnings per share of Class A common stock and Class B common stock is computed by dividing net income attributable to UWM Holdings Corporation by the weighted-average number of shares of Class A common stock and Class B common stock outstanding during the period. Diluted earnings per share of Class A common stock and Class B common stock is computed by dividing net income by the weighted-average number of shares of Class A common stock or Class B common stock, respectively, outstanding adjusted to give effect to potentially dilutive securities. See Note 10, Non-Controlling Interests for a description of the Stapled Interests. Refer to Note 1 - Organization, Basis of Presentation and Summary of Significant Accounting Policies - for additional information related to the Company's capital structure. There was no Class B common stock outstanding as of September 30, 2023 or September 30, 2022. The following table sets forth the calculation of basic and diluted earnings per share for the three and nine month periods ended September 30, 2023 and 2022 (in thousands, except shares and per share amounts):
For purposes of calculating diluted earnings per share, it was assumed that the 1,502,069,787 shares of Class D common stock were exchanged for Class B common stock and converted to Class A common stock under the if-converted method, and it was determined that the conversion would be anti-dilutive for all periods except for the three months ended September 30, 2023. Under the if-converted method, all of the Company's net income for the applicable periods is attributable to Class A common shareholders. The net income of the Company under the if-converted method is calculated including an estimated income tax provision which is determined using a blended statutory effective tax rate. The Public and Private Warrants were not in the money and the triggering events for the issuance of earn-out shares were not met during the three or nine months ended September 30, 2023 or 2022. Therefore, these potentially dilutive securities were excluded from the computation of diluted earnings per share. Unvested RSUs have been considered in the calculations of diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 using the treasury stock method and the impact was either anti-dilutive or immaterial.
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent to September 30, 2023, the Board declared a cash dividend of $0.10 per share on the outstanding shares of Class A common stock. The dividend is payable on January 11, 2024 to stockholders of record at the close of business on December 20, 2023. Additionally, the Board approved a proportional distribution to SFS Corp. of $150.2 million which is payable on or about January 11, 2024 . Subsequent to September 30, 2023, the Company sold excess servicing cash flows on certain agency loans with a total UPB of approximately $16.8 billion for gross proceeds of approximately $159.9 million.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 18,231 | $ 11,696 | $ 13,848 | $ 41,992 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization UWM Holdings Corporation, through its consolidated subsidiaries (collectively, the “Company”), engages in the origination, sale and servicing of residential mortgage loans. The Company is organized in Delaware but based in Michigan, and originates and services loans throughout the U.S. The Company is approved as a Title II, non-supervised direct endorsement mortgagee with the U.S. Department of Housing and Urban Development (or “HUD”). In addition, the Company is an approved issuer with the Government National Mortgage Association (or “Ginnie Mae”), as well as an approved seller and servicer with the Federal National Mortgage Association (or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (or “Freddie Mac”). The Company (f/k/a Gores Holdings IV, Inc.) was incorporated in Delaware on June 12, 2019. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On September 22, 2020, the Company entered into a Business Combination Agreement (the “Business Combination Agreement”) by and among the Company, SFS Holding Corp., a Michigan corporation (“SFS Corp.”), United Wholesale Mortgage, LLC, a Michigan limited liability company (“UWM”), and UWM Holdings, LLC, a newly formed Delaware limited liability company (“Holdings LLC” and, together with UWM, the “UWM Entities”). The business combination with the UWM Entities closed on January 21, 2021. Prior to the closing of the business combination with the UWM Entities, SFS Corp. was the sole member of UWM, which had one unit authorized, issued and outstanding. On January 21, 2021, SFS Corp. contributed its equity interest in UWM to Holdings LLC and adopted the Amended and Restated Operating Agreement to admit Holdings LLC as UWM's sole member and its manager. Upon completion of the business combination transaction, (i) Holdings LLC issued approximately 6% of its units (Class A Common Units) to the Company, (ii) SFS Corp. retained approximately 94% of the units (Class B Common Units) in Holdings LLC and accordingly retained approximately 94% of the economic ownership interest of the combined company and (iii) Holdings LLC became a consolidated subsidiary of the Company, as the Company is the sole managing member of Holdings LLC. The economic interest in Holdings LLC owned by SFS Corp. is presented as a non-controlling interest in these condensed consolidated financial statements. See Note 10 - Non-Controlling Interests for further information. Following the consummation of the transactions contemplated by the Business Combination Agreement, the Company is organized in an “Up-C” structure in which UWM (the operating subsidiary) is held directly by Holdings LLC, and the Company’s only material direct asset consists of Class A Common Units in Holdings LLC. The Company’s current capital structure authorizes Class A common stock, Class B common stock, Class C common stock and Class D common stock. The Class A common stock and Class C common stock each provide holders with one vote on all matters submitted to a vote of stockholders, and the Class B common stock and Class D common stock each provide holders with 10 votes on all matters submitted to a vote of stockholders. The holders of Class C common stock and Class D common stock do not have any of the economic rights (including rights to dividends and distributions upon liquidation) provided to holders of Class A common stock and Class B common stock. Each Holdings LLC Class B Common Unit held by SFS Corp. may be exchanged at the option of the Company, along with its stapled share of Class D common stock, for either, (a) cash or (b) one share of the Company’s Class B common stock. Each share of Class B common stock is convertible into one share of Class A common stock upon the transfer or assignment of such share from SFS Corp. to a non-affiliated third-party. See Note 10 - Non-Controlling Interests for further information. Pursuant to the Business Combination Agreement, SFS Corp. is entitled to receive an aggregate of up to 90,761,687 earn-out shares in the form of Class B Common Units in Holdings LLC and Class D common shares upon attainment of certain stock price targets prior to January 2026. There are four different triggering events that affect the number of earn-out shares that will be issued based upon the per share price of Class A common stock ranging from $13.00 to $19.00 per share. The Company accounts for the potential earn-out shares as a component of stockholders’ equity in accordance with the applicable guidance in U.S. GAAP. See Note 16 - Earnings Per Share for further information. Upon completion of the business combination transaction, the directors and officers of Gores Holdings IV, Inc. (the “Gores Directors and Officers”) resigned, the Company appointed new directors to its Board, and certain officers of UWM became officers of the Company. Pursuant to the Business Combination Agreement, the Company is obligated to indemnify the Gores Directors and Officers for costs or losses incurred prior to or after the closing of the business combination transaction that arose by reason of the fact that he or she is or was a director or officer of Gores Holdings IV, Inc. The Gores Directors and Officers have been named as defendants in class action suits in Delaware Chancery Court in which it is alleged that they breached their fiduciary duties to shareholders of Gores Holdings, IV. Pursuant to its obligations under the Business Combination Agreement, the Company is indemnifying the Gores Directors and Officers in connection with these lawsuits. The Company has insurance which it believes will cover any material liability that could arise pursuant to its indemnification obligations to the Gores Directors and Officers.
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Basis of Presentation | Basis of Presentation The condensed consolidated financial statements are unaudited and presented in U.S. dollars. They have been prepared in accordance with U.S. GAAP pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, these condensed consolidated financial statements include all normal and recurring adjustments considered necessary for a fair statement of our results of operations, financial position and cash flows for the periods presented. However, our results of operations for any interim period are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period.
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Use of Estimates | Use of EstimatesThe preparation of condensed consolidated financial statements in conformity with U.S. 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 condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Loans Eligible for Repurchase from Ginnie Mae | Loans Eligible for Repurchase from Ginnie MaeWhen the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the previously sold assets are required to be re-recognized on the condensed consolidated balance sheets as assets and corresponding liabilities at the loan's unpaid principal balance, regardless of the Company’s intent to exercise its option to repurchase. The recognition of previously sold loans does not impact the accounting for the previously recognized mortgage servicing rights (or “MSRs”). |
Income Taxes And Tax Receivable Agreement | Income Taxes The Company follows the asset and liability method of accounting for income taxes under applicable U.S. GAAP. Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes in the U.S. and various state and local jurisdictions. The tax laws are often complex and may be subject to different interpretations. To determine the financial statement impact of accounting for income taxes, the Company must make assumptions and judgements about how to interpret and apply complex tax laws to numerous transactions and business events, as well as make judgements regarding the timing of when certain items may affect taxable income. Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. If based upon all available positive and negative evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if the Company determines that it is more likely than not that all or part of the deferred tax asset will become realizable. Our interpretations of tax laws are subject to review and examination by various taxing authorities and jurisdictions where the Company operates, and disputes may occur regarding our view on a tax position. These disputes over interpretations with the various tax authorities may be settled by audit, administrative appeals or adjudication in the court systems of the tax jurisdictions in which the Company operates. We regularly review whether we may be assessed additional income taxes as a result of the resolution of these matters, and the Company records additional reserves as appropriate. In addition, the Company may revise its estimate of income taxes due to changes in income tax laws, legal interpretations, and business strategies. We recognize the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We record interest and penalties related to uncertain tax positions as a component of the income tax provision. See Note 14 – Income Taxes for further information. Tax Receivable AgreementIn connection with the Business Combination Agreement, the Company entered into a Tax Receivable Agreement with SFS Corp. that will obligate the Company to make payments to SFS Corp. of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes as a result of (i) certain increases in tax basis resulting from exchanges of Holdings LLC common units; (ii) imputed interest deemed to be paid by the Company as a result of payments it makes under the tax receivable agreement; (iii) certain increases in tax basis resulting from payments the Company makes under the tax receivable agreement; and (iv) disproportionate allocations (if any) of tax benefits to the Company which arise from, among other things, the sale of certain assets as a result of section 704(c) of the Internal Revenue Code of 1986. The Company will retain the benefit of the remaining 15% of these tax savings. The Company's potential liability under the Tax Receivable Agreement is accounted for as a loss contingency (the liability is recorded within "Accounts payable, accrued expenses and other"), with changes in the liability measured and recorded when estimated amounts due under the Tax Receivable Agreement are probable and can be reasonably estimated, and reported as part of "Other expense" in the condensed consolidated statements of operations.
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Related Party Transactions | Related Party Transactions The Company enters into various transactions with related parties. See Note 13 – Related Party Transactions for further information.
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Public and Private Warrants | Public and Private Warrants As part of Gores Holdings IV, Inc.'s initial public offering ("IPO") in January 2020, Gores Holdings IV, Inc. issued to third party investors 42.5 million units, consisting of one share of Class A common stock of Gores Holdings IV, Inc. and one-fourth of one warrant, at a price of $10.00 per unit. Each whole warrant entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, Gores Holdings IV, Inc. completed the private sale of 5.25 million warrants to Gores Holdings IV, Inc.'s sponsor at a purchase price of $2.00 per warrant (the “Private Warrants”). Each Private Warrant allows the sponsor to purchase one share of Class A common stock at $11.50 per share. Upon the closing of the business combination transaction, the Company had 10,624,987 Public Warrants and 5,250,000 Private Warrants outstanding. The Private Warrants and the shares of common stock issuable upon the exercise of the Private Warrants were not transferable, assignable or salable until after the completion of the business combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Company evaluated the Public and Private Warrants under applicable U.S. GAAP and concluded that they do not meet the criteria to be classified in stockholders’ equity due to certain terms of the warrants. Since the Public and Private Warrants meet the definition of derivatives, the Company recorded these warrants as liabilities on the balance sheet at fair value upon the closing of the business combination transaction and subsequently (recorded within "Accounts payable, accrued expenses and other"), with the change in their respective fair values recognized in the condensed consolidated statement of operations (recorded within "Other expense").
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Stock-Based Compensation | Stock-Based Compensation Effective upon the closing of the business combination transaction, the Company adopted the UWM Holdings Corporation 2020 Omnibus Incentive Plan (the “2020 Plan”) which was approved by stockholders on January 20, 2021. The 2020 Plan allows for the grant of stock options, restricted stock, restricted stock units (“RSUs”), and stock appreciation rights. Pursuant to the 2020 Plan, the Company reserved a total of 80,000,000 shares of common stock for issuance of stock-based compensation awards, and 72,018,682 shares remained available for issuance under the 2020 Plan as of September 30, 2023. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period based on the fair value of the award on the date of grant and is included in "Salaries, commissions and benefits" on the condensed consolidated statements of operations. The Company made a policy election to recognize the effects of forfeitures as they occur. See Note 15 – Stock-based Compensation for further information.
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Recently Adopted Accounting Standards and Accounting Standards Issued but Not Yet Effective | Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which was subsequently amended by ASU No. 2021-1, Reference Rate Reform (Topic 848): Scope, which was issued in January 2021 and will remain effective through December 31, 2024. This guidance provides practical expedients to address existing guidance on contract modifications due to the expected market transition from the London Inter-bank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The ASU was effective upon issuance on a prospective basis beginning January 1, 2020. Alternative base rate language, which may include SOFR to agreements for its derivatives, has been added to warehouse and other lines of credit and debt obligations that use LIBOR. The Company has applied the optional expedients under ASU 2020-04 and accounted for the contract modifications related to reference rate reform prospectively. There was no impact on the Company’s condensed consolidated financial statements from adopting this standard. Accounting Standards Issued but Not Yet Effective In 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), which was issued in February 2016 and will remain effective through December 31, 2024. This guidance addresses existing guidance that applies to the amortization of leasehold improvements made by lessees in lease arrangements between entities under common control. The ASU is effective for fiscal years beginning after December 15, 2023. The Company does not anticipate this will have a material impact on its condensed consolidated financial statements and related disclosures.
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Mortgage Loans at Fair Value (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Reconciliation of Changes in Mortgage Loans at Fair Value | The change in fair value adjustment is recorded in the “Loan production income” line item of the condensed consolidated statements of operations.
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Derivatives (Tables) |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The notional amounts and fair values of derivative financial instruments not designated as hedging instruments were as follows (in thousands):
(a)Notional amounts have been adjusted for pullthrough rates of 80% and 77%, respectively.
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Accounts Receivable, Net (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | The following summarizes accounts receivable, net (in thousands):
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Mortgage Servicing Rights (Tables) |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Mortgage Servicing Rights | The following table summarizes changes in the MSR assets for the three and nine months ended September 30, 2023 and 2022 (in thousands):
The following is a summary of the components of change in fair value of servicing rights as reported in the condensed consolidated statements of operations (in thousands):
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Summary of Loan Servicing Income | The following table summarizes the loan servicing income recognized during the three and nine months ended September 30, 2023 and 2022, respectively (in thousands):
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Summary of Key Assumptions Used in Determining the Fair Value | The key unobservable inputs used in determining the fair value of the Company’s MSRs were as follows at September 30, 2023 and December 31, 2022, respectively:
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Schedule of Analysis of Change in Fair Value | The hypothetical effect of adverse changes in these key assumptions would result in a decrease in fair values as follows at September 30, 2023 and December 31, 2022, respectively, (in thousands):
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Warehouse and Other Secured Lines of Credit (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lines of Credit | The Company had the following warehouse lines of credit with financial institutions as of September 30, 2023 and December 31, 2022, respectively, (in thousands):
1 An aggregate of $650.0 million of these line amounts is committed as of September 30, 2023. 2 This warehouse line of credit agreement expired pursuant to its terms prior to September 30, 2023. 3 This warehouse line of credit agreement expired pursuant to its terms subsequent to September 30, 2023.
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Other Borrowings (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Senior Unsecured Notes | The following is a summary of the senior unsecured notes issued by the Company (in thousands):
(1) Unamortized debt issuance costs and discounts are presented net against the 2025 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $4.7 million and $6.3 million as of September 30, 2023 and December 31, 2022, respectively. (2) Unamortized debt issuance costs and discounts are presented net against the 2029 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $4.8 million and $5.5 million as of September 30, 2023 and December 31, 2022, respectively. (3) Unamortized debt issuance costs and discounts are presented net against the 2027 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $3.2 million and $3.9 million as of September 30, 2023 and December 31, 2022, respectively.
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Commitment and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity of Representation and Warranties Reserve | The activity of the representations and warranties reserve was as follows (in thousands):
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Non-controlling Interests (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Ownership of Units | The following table summarizes the ownership of units in Holdings LLC as of:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following are the major categories of financial assets and liabilities measured at fair value on a recurring basis (in thousands):
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Quantitative Information on Recurring Level 3 Fair Value Financial Instruments | The following table presents quantitative information about the inputs used in recurring Level 3 fair value financial instruments and the fair value measurements for IRLCs:
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Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The following table presents the carrying amounts and estimated fair value of the Company's financial liabilities that are not measured at fair value on a recurring or nonrecurring basis (in thousands):
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of RSU Activity | The following is a summary of RSU activity for the three and nine months ended September 30, 2023 and 2022:
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earnings per Share | The following table sets forth the calculation of basic and diluted earnings per share for the three and nine month periods ended September 30, 2023 and 2022 (in thousands, except shares and per share amounts):
|
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Tax Receivable Agreement (Details) $ in Millions |
Sep. 30, 2023
USD ($)
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Tax receivable agreement liability | $ 15.2 |
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - 2020 Plan |
Sep. 30, 2023
shares
|
---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for issuance | 80,000,000 |
Number of share available for issuance | 72,018,682 |
Mortgage Loans at Fair Value (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Receivables [Abstract] | ||
Mortgage loans, unpaid principal balance | $ 5,580,065 | $ 7,128,131 |
Premiums paid on mortgage loans | 44,525 | 70,914 |
Fair value adjustment | (64,551) | (64,085) |
Mortgage loans at fair value | $ 5,560,039 | $ 7,134,960 |
Derivatives - Additional Information (Details) |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Derivative blended weighted average pullthrough rate (in percent) | 80.00% | 77.00% | 77.00% |
Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Derivative [Line Items] | |||
Derivative assets | $ 92,791 | $ 82,869 | |
Derivative liabilities | $ 38,882 | $ 49,748 | |
Derivative blended weighted average pullthrough rate (in percent) | 80.00% | 77.00% | 77.00% |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative assets | $ 92,791 | $ 82,869 | |
Derivative liabilities | 38,882 | 49,748 | |
Not Designated as Hedging Instrument | IRLCs | |||
Derivative [Line Items] | |||
Derivative assets | 7,037 | 7,872 | |
Derivative liabilities | 35,518 | 32,294 | |
Notional Amount | 7,351,202 | 5,359,684 | |
Not Designated as Hedging Instrument | FLSCs | |||
Derivative [Line Items] | |||
Derivative assets | 85,754 | 74,997 | |
Derivative liabilities | 3,364 | 17,454 | |
Notional Amount | $ 11,815,554 | $ 10,944,875 |
Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Receivables [Abstract] | ||
Servicing fees | $ 153,602 | $ 110,891 |
Servicing advances | 85,848 | 162,896 |
Receivables from sales of servicing | 79,118 | 56,019 |
Derivative settlements receivable | 29,896 | 8,204 |
Origination receivables | 26,292 | 24,179 |
Investor receivables | 14,801 | 25,701 |
Other receivables | 1,449 | 378 |
Provision for current expected credit losses | (5,084) | (5,121) |
Total accounts receivable, net | $ 385,922 | $ 383,147 |
Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Mortgage Servicing Rights [Line Items] | |||||
Aggregate unpaid principal balance | $ 4,352,219 | $ 4,352,219 | $ 4,453,261 | ||
Net proceeds from sale of mortgage servicing rights | 1,669,216 | $ 1,171,430 | |||
MSR | |||||
Mortgage Servicing Rights [Line Items] | |||||
Aggregate unpaid principal balance | 281,400,000 | 281,400,000 | $ 312,500,000 | ||
MSRs sold | 99,200,000 | 101,300,000 | |||
Net proceeds from sale of mortgage servicing rights | 1,300,000 | 1,200,000 | |||
Net reserves and transaction costs on sales of servicing rights | 15,297 | $ 9,051 | 36,867 | $ 47,007 | |
Excess Servicing Cash Flows | |||||
Mortgage Servicing Rights [Line Items] | |||||
Aggregate unpaid principal balance | $ 78,100,000 | 78,100,000 | |||
Net proceeds from sale of mortgage servicing rights | $ 428,700 |
Mortgage Servicing Rights - Summary of Mortgage Servicing Rights Activity (Details) - MSR - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Fair value, beginning of period | $ 4,224,207 | $ 3,736,359 | $ 4,453,261 | $ 3,314,952 |
Capitalization of MSRs | 637,280 | 682,510 | 1,803,648 | 1,740,625 |
MSR and excess sales | (617,474) | (359,014) | (1,721,827) | (1,231,810) |
Due to changes in valuation inputs or assumptions | 236,044 | 373,232 | 177,655 | 940,668 |
Due to collection/realization of cash flows/other | (127,838) | (127,401) | (360,518) | (458,749) |
Fair value, end of period | 4,352,219 | 4,305,686 | 4,352,219 | 4,305,686 |
Changes in fair value: | ||||
Due to changes in valuation inputs and assumptions | 236,044 | 373,232 | 177,655 | 940,668 |
Due to collection/realization of cash flows and other | (127,838) | (127,401) | (360,518) | (458,749) |
Net reserves and transaction costs on sales of servicing rights | (15,297) | (9,051) | (36,867) | (47,007) |
Changes in fair value of mortgage servicing rights | $ 92,909 | $ 236,780 | $ (219,730) | $ 434,912 |
Mortgage Servicing Rights - Summary of Loan Servicing Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Transfers and Servicing [Abstract] | ||||
Contractual servicing fees | $ 196,509 | $ 193,715 | $ 600,960 | $ 567,040 |
Late, ancillary and other fees | 3,919 | 3,066 | 11,245 | 7,807 |
Loan servicing income | $ 200,428 | $ 196,781 | $ 612,205 | $ 574,847 |
Mortgage Servicing Rights - Summary of Key Unobservable Inputs Used in Determining the Fair Value (Details) - MSR - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rates (as a percent) | 10.00% | 9.50% |
Annual prepayment speeds (as a percent) | 5.80% | 6.70% |
Cost of servicing | $ 74 | $ 75 |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rates (as a percent) | 15.00% | 15.00% |
Annual prepayment speeds (as a percent) | 17.40% | 14.00% |
Cost of servicing | $ 148 | $ 108 |
Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rates (as a percent) | 10.70% | 10.10% |
Annual prepayment speeds (as a percent) | 7.50% | 7.90% |
Cost of servicing | $ 83 | $ 80 |
Mortgage Servicing Rights - Schedule of Analysis of Change in Fair Value (Details) - MSR - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
+ 10% adverse change – effect on value, discount rate | $ (191,334) | $ (183,972) |
+ 20% adverse change – effect on value, discount rate | (366,263) | (353,120) |
+ 10% adverse change – effect on value, prepayment speeds | (129,529) | (143,483) |
+ 20% adverse change – effect on value, prepayment speeds | (251,015) | (277,992) |
+ 10% adverse change – effect on value, cost of servicing | (36,043) | (39,362) |
+ 20% adverse change – effect on value, cost of servicing | $ (72,085) | $ (78,724) |
Warehouse and Other Secured Lines of Credit - Additional Information (Details) - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|---|---|
Line of Credit Facility [Line Items] | ||||
Outstanding amount | $ 500,000,000 | $ 750,000,000 | ||
Warehouse Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding amount | 5,066,900,000 | 6,443,992,000 | ||
Warehouse Line of Credit | Line of Credit, ASAP program | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding amount | 0 | 0 | ||
Maximum borrowing capacity | 600,000,000 | |||
Warehouse Line of Credit | Line of Credit, EF program | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding amount | 0 | |||
Revolving Credit Facility | MSR Facility | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding amount | 250,000,000 | $ 750,000,000 | ||
Maximum borrowing capacity | $ 1,500,000,000 | |||
Revolving Credit Facility | GNMA MSR Facility | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding amount | $ 250,000,000 | |||
Maximum borrowing capacity | $ 500,000,000 |
Other Borrowings - Summary of Senior Unsecured Notes (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Nov. 22, 2021 |
Apr. 07, 2021 |
Nov. 03, 2020 |
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Outstanding Balance | $ 2,000,000 | $ 2,000,000 | |||
Weighted average interest rate | 5.56% | 5.56% | |||
Senior Notes | 2025 Senior Notes, due 11/15/25 | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 5.50% | 5.50% | |||
Outstanding Balance | $ 800,000 | $ 800,000 | |||
Unamortized debt issuance costs and discounts | $ 4,700 | 6,300 | |||
Senior Notes | 2029 Senior Notes, due 4/15/29 | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 5.50% | 5.50% | |||
Outstanding Balance | $ 700,000 | 700,000 | |||
Unamortized debt issuance costs and discounts | $ 4,800 | 5,500 | |||
Senior Notes | 2027 Senior Notes, due 6/15/27 | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 5.75% | 5.75% | |||
Outstanding Balance | $ 500,000 | 500,000 | |||
Unamortized debt issuance costs and discounts | $ 3,200 | $ 3,900 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Loans repurchased | $ 40.4 | $ 91.3 | $ 201.9 | $ 279.9 |
Commitments to extend credit to potential borrowers | $ 23,800.0 | $ 23,800.0 |
Commitments and Contingencies - Activity of Representation and Warranties Reserve (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Representation And Warranty Reserve [Roll Forward] | ||||||||
Balance, beginning of period | $ 63,053 | $ 70,435 | $ 63,053 | $ 70,435 | $ 59,093 | $ 60,495 | $ 70,095 | $ 86,762 |
Additions | 12,181 | 24,138 | 39,811 | 37,877 | ||||
Losses realized, net | (8,221) | (23,798) | (37,253) | (54,204) | ||||
Balance, end of period | $ 63,053 | $ 70,435 | $ 63,053 | $ 70,435 |
Variable Interest Entities (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2021 |
Dec. 31, 2022 |
|
Variable Interest Entity [Line Items] | |||
Percentage of beneficial interests in securitized assets (in percent) | 5.00% | ||
Fair value of investment securities pledged | $ 102,500 | ||
Investment securities at fair value, pledged | 104,526 | $ 113,290 | |
Borrowings against investment securities | $ 97,328 | $ 101,345 | |
Minimum | Secured Debt | |||
Variable Interest Entity [Line Items] | |||
Maturity period (in months) | 1 month | ||
Maximum | Secured Debt | |||
Variable Interest Entity [Line Items] | |||
Maturity period (in months) | 5 months | ||
Holdings, LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage (in percent) | 100.00% |
Non-controlling Interests (Details) - shares |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
RSU | |||
Noncontrolling Interest [Line Items] | |||
Vested (in shares) | 1,078,295 | 963,120 | |
Holdings, LLC | |||
Noncontrolling Interest [Line Items] | |||
Common units (in shares) | 1,595,724,056 | 1,594,645,761 | |
Ownership Percentage (in percent) | 100.00% | 100.00% | |
Holdings, LLC | Common Class A | |||
Noncontrolling Interest [Line Items] | |||
Common units (in shares) | 93,654,269 | 92,575,974 | |
Ownership Percentage by Noncontrolling Owners (in percent) | 5.87% | 5.81% | |
Holdings, LLC | Common Class B | SFS Corp | |||
Noncontrolling Interest [Line Items] | |||
Common units (in shares) | 1,502,069,787 | 1,502,069,787 | |
Ownership Percentage by Parent (in percent) | 94.13% | 94.19% |
Regulatory Net Worth Requirements - Additional Details (Details) - Ginnie Mae, Freddie Mac and Fannie Mae $ in Millions |
Sep. 30, 2023
USD ($)
|
---|---|
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |
Minimum net worth requirement | $ 794.3 |
Liquidity requirement | $ 273.4 |
Minimum capital ratio | 6.00% |
Fair Value Measurements - Quantitative Information (Details) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
IRLCs | Pullthrough rate (weighted avg) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Pullthrough rate (weighted avg) | 0.80 | 0.77 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Aug. 08, 2022 |
|
Related Party Transaction [Line Items] | |||||
General and administrative | $ 44,904 | $ 51,649 | $ 132,214 | $ 129,881 | |
Aircraft usage fee | 100 | ||||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Expenses of various companies related through common ownership | 5,100 | 4,500 | 15,800 | 20,100 | |
Rent expense | 4,900 | 4,100 | 15,100 | 19,100 | |
Legal fees | $ 200 | 200 | 500 | 500 | |
General and administrative | $ 200 | 200 | 500 | ||
Related Party | Revolving Credit Facility | Revolving Credit Agreement | Line of Credit | SFS Corp | |||||
Related Party Transaction [Line Items] | |||||
Maximum borrowing capacity | $ 500,000 | ||||
Nonrelated Party | |||||
Related Party Transaction [Line Items] | |||||
Payments for aircraft rental fees | $ 200 | $ 300 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (in percent) | 0.24% | 1.44% | 0.24% | 0.95% |
Effective tax rate attributable to non-controlling interests (in percent) | 94.00% | 94.00% | ||
Unrecognized tax benefits | $ 0 | $ 0 | ||
Unrecognized tax benefits, interest on income tax expense | $ 0 | $ 0 | 0 | $ 0 |
Unrecognized tax benefits, penalties on income tax expense | $ 0 | $ 0 |
Stock-Based Compensation - Summary of RSU Activity (Details) - RSU - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Shares | ||||
Unvested - beginning of period (in shares) | 6,195,404 | 1,745,676 | 4,005,801 | 2,812,320 |
Granted (in shares) | 105,216 | 2,451,375 | 3,371,566 | 2,458,883 |
Vested (in shares) | (540,475) | (36,180) | (1,358,083) | (963,120) |
Forfeited (in shares) | (106,883) | (74,283) | (366,022) | (221,495) |
Unvested - end of period (in shares) | 5,653,262 | 4,086,588 | 5,653,262 | 4,086,588 |
Weighted Average Grant Date Fair Value | ||||
Unvested - beginning of period (in usd per share) | $ 5.20 | $ 7.75 | $ 5.30 | $ 7.75 |
Granted (in usd per share) | 6.56 | 3.60 | 5.73 | 3.60 |
Vested (in usd per share) | 3.61 | 7.75 | 6.07 | 7.72 |
Forfeited (in usd per share) | 5.05 | 5.95 | 4.74 | 7.15 |
Unvested - end of period (in usd per share) | $ 5.41 | $ 5.53 | $ 5.41 | $ 5.53 |
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3.9 | $ 2.0 | $ 9.9 | $ 5.5 |
RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation related to unvested awards | $ 23.1 | $ 23.1 | ||
Unvested awards, period for recognition (in years) | 3 years | |||
Granted (in shares) | 105,216 | 2,451,375 | 3,371,566 | 2,458,883 |
Granted fair value (in usd per share) | $ 6.56 | $ 3.60 | $ 5.73 | $ 3.60 |
Earnings Per Share - Additional Information (Details) |
Sep. 30, 2023
stock
shares
|
Dec. 31, 2022
shares
|
Sep. 30, 2022
shares
|
Jan. 21, 2021
shares
|
---|---|---|---|---|
Class of Stock [Line Items] | ||||
Number of classes of shares | stock | 2 | |||
Common Class B | ||||
Class of Stock [Line Items] | ||||
Common stock outstanding (in shares) | 0 | 0 | 0 | |
Common Class D | ||||
Class of Stock [Line Items] | ||||
Common stock outstanding (in shares) | 1,502,069,787 | 1,502,069,787 | 1,502,069,787 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 08, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Subsequent Event [Line Items] | ||||
Mortgage servicing rights | $ 4,352,219 | $ 4,453,261 | ||
Net proceeds from sale of mortgage servicing rights | $ 1,669,216 | $ 1,171,430 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividends paid | $ 150,200 | |||
Subsequent Event | Mortgage Servicing Instrument | ||||
Subsequent Event [Line Items] | ||||
Mortgage servicing rights | 16,800,000 | |||
Net proceeds from sale of mortgage servicing rights | $ 159,900 | |||
Subsequent Event | Common Class A | ||||
Subsequent Event [Line Items] | ||||
Dividends declared (in usd per share) | $ 0.10 |
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