Guild Holdings Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS (Tables)

REVERSE MORTGAGE LOANS HELD FOR INVESTMENT AND HMBS-RELATED BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2024

A reconciliation of the changes in reverse mortgage loans held for investment and HMBS-related borrowings for the periods presented is below:


	Three Months Ended				Nine Months Ended
	September 30, 2024				September 30, 2024
(in thousands)	Reverse Mortgage Loans Held for Investment		HMBS-Related Borrowings(1)		Reverse Mortgage Loans Held for Investment		HMBS-Related Borrowings(1)
Balance — beginning of period	$	376,182	$	(358,101)	$	315,912	$	(302,183)
Originations and purchases	34,782		—		102,265		—
Securitization of home equity conversion mortgages (“HECM”) loans and tails accounted for as a financing (including realized fair value changes)	—		(37,691)		—		(103,892)

Repayments (principal payments received)	(8,939)		9,020		(32,559)		30,346




Change in fair value recognized in earnings(2)	7,119		(4,752)		23,526		(15,795)
Balance — end of period	$	409,144	$	(391,524)	$	409,144	$	(391,524)

Securitized loans (pledged to HMBS-related borrowings)	$	398,723	$	(391,524)	$	398,723	$	(391,524)
Unsecuritized loans and tail advances	10,421		—		10,421		—
Total	$	409,144	$	(391,524)	$	409,144	$	(391,524)


	Three Months Ended				Nine Months Ended
	September 30, 2023				September 30, 2023
(in thousands)	Reverse Mortgage Loans Held for Investment		HMBS-Related Borrowings(1)		Reverse Mortgage Loans Held for Investment		HMBS-Related Borrowings(1)
Balance — beginning of period	$	36,709	$	—	$	—	$	—
Originations and purchases	42,894		—		77,297		—
Securitization of HECM loans and tails accounted for as a financing (including realized fair value changes)	—		(71,445)		—		(71,445)

Repayments (principal payments received)	(734)		—		(734)		—




Change in fair value recognized in earnings(2)	2,588		167		4,894		167
Balance — end of period	$	81,457	$	(71,278)	$	81,457	$	(71,278)

Securitized loans (pledged to HMBS-related borrowings)	$	73,443	$	(71,278)	$	73,443	$	(71,278)
Unsecuritized loans and tail advances	8,014		—		8,014		—
Total	$	81,457	$	(71,278)	$	81,457	$	(71,278)

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(1)HMBS-related borrowings represent the issuance of pools of HMBS, which are guaranteed by GNMA, to third-party security holders. The Company accounts for the transfers of these advances in the related HECM loans as secured borrowings, retaining the initial HECM loans in the Condensed Consolidated Balance Sheets as reverse mortgage loans held for investment and recording the pooled HMBS as HMBS-related borrowings.

(2)See further breakdown in the table below.

Schedule of Gains (Losses) On Reverse Mortgage Loans Held For Investment

The following table presents gains (losses) on reverse mortgage loans held for investment and HMBS-related borrowings for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Gain on new originations(1)	$	1,604	$	—	$	4,770	$	—
Gain on tail securitizations(2)	418		—		1,175		—
Net interest income	31		—		79		—
Change in fair value	314		2,755		1,707		5,061
Fair value gain recognized in earnings(3)	2,367		2,755		7,731		5,061
Loan fees and other(4)	1,029		749		2,778		1,031
Total	$	3,396	$	3,504	$	10,509	$	6,092

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(1)Includes the changes in fair value of newly originated loans held for investment in the period from origination through securitization date.

(2)Includes the cash realized gains upon securitization of tails.

(3)See breakdown between loans held for investment and HMBS-related borrowings in the table above.

(4)Loan fees and other are included in loan origination fees and gain on sale of loans, net in the Condensed Consolidated Statements of Operations.

Schedule Of Reverse Mortgage Loans Held For Investment and HMBS-Related Borrowings, Unobservable Input Assumptions

The following table presents the unobservable input assumptions used to determine the fair value of reverse mortgage loans held for investment and HMBS-related borrowings as of September 30, 2024 and December 31, 2023:


	September 30, 2024	December 31, 2023

Unobservable Input	Range (Weighted Average)
Life in years	0.1 - 8.8 (6.8)	0.1 - 8.9 (7.2)
Discount rate	12.0% - 12.0% (12.0%)	12.0% - 12.0% (12.0%)
Conditional prepayment rate including voluntary and involuntary prepayments	6.6% - 11.1% (8.0%)	6.9% - 11.3% (8.1%)