Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS

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SEGMENTS
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
ASC 280, Segment Reporting, establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in that guidance, the Company has determined that it has two reportable segments — Origination and Servicing.
Origination — The Company operates its loan origination business throughout the United States. Its licensed sales professionals and support staff cultivate deep relationships with referral partners and clients and
provide a customized approach to the loan transaction whether it is a purchase or refinance. The origination segment is primarily responsible for loan origination, acquisition and sale activities.
Servicing — The Company services loans out of its corporate office in San Diego, California. Properties of the loans serviced by the Company are disbursed throughout the United States and as of March 31, 2024 the Company serviced at least one loan in 49 different states. The servicing segment provides a steady stream of cash flow to support the origination segment, and more importantly it allows for the Company to build long-standing client relationships that drive repeat and referral business back to the origination segment to recapture the client’s next mortgage transaction. The servicing segment is primarily responsible for the servicing activities of all loans in the Company’s servicing portfolio, which includes, but is not limited to, collection and remittance of loan payments, managing borrower’s impound accounts for taxes and insurance, loan payoffs, loss mitigation and foreclosure activities.
The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting. The Company also does not allocate certain corporate expenses, which are represented by All Other in the tables below.
The following table presents the financial performance and results by segment for the three months ended March 31, 2024:
(in thousands)
 Origination Servicing Total
Segments		 All Other Total
Revenue
Loan origination fees and gain on sale of loans, net $ 133,664  $ 396  $ 134,060  $ —  $ 134,060 
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 3,230  —  3,230  —  3,230 
Loan servicing and other fees —  65,788  65,788  —  65,788 
Valuation adjustment of mortgage servicing rights —  20,778  20,778  —  20,778 
Interest income (expense), net
 664  10,456  11,120  (2,933) 8,187 
Other income (expense), net
 364  22  386  (647) (261)
Net revenue 137,922  97,440  235,362  (3,580) 231,782 
Expenses
Salaries, incentive compensation and benefits 121,105  8,145  129,250  10,817  140,067 
General and administrative 20,548  3,862  24,410  4,801  29,211 
Occupancy, equipment and communication 16,935  966  17,901  1,914  19,815 
Depreciation and amortization 3,491  141  3,632  122  3,754 
Provision for foreclosure losses —  392  392  —  392 
Total expenses
 162,079  13,506  175,585  17,654  193,239 
Income tax expense
 —  —  —  10,143  10,143 
Net (loss) income
$ (24,157) $ 83,934  $ 59,777  $ (31,377) $ 28,400 
The following table presents the financial performance and results by segment for the three months ended March 31, 2023:
(in thousands)
 Origination Servicing Total
Segments		 All Other Total
Revenue
Loan origination fees and gain on sale of loans, net $ 92,276  $ 375  $ 92,651  $ —  $ 92,651 
Loan servicing and other fees —  60,087  60,087  —  60,087 
Valuation adjustment of mortgage servicing rights —  (54,871) (54,871) —  (54,871)
Interest income (expense), net
 1,300  7,410  8,710  (2,727) 5,983 
Other (expense) income, net
 (2) 52  50  (15) 35 
Net revenue 93,574  13,053  106,627  (2,742) 103,885 
Expenses
Salaries, incentive compensation and benefits 93,257  7,574  100,831  10,289  111,120 
General and administrative 14,494  2,880  17,374  3,509  20,883 
Occupancy, equipment and communication 15,174  1,258  16,432  998  17,430 
Depreciation and amortization 3,399  142  3,541  197  3,738 
Provision for foreclosure losses —  1,514  1,514  —  1,514 
Total expenses
 126,324  13,368  139,692  14,993  154,685 
Income tax benefit
 —  —  —  (13,605) (13,605)
Net loss
 $ (32,750) $ (315) $ (33,065) $ (4,130) $ (37,195)