VARIABLE INTEREST ENTITIES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company regularly transfers financial assets to special purpose entities (“SPEs”) or VIEs to provide collateral for certain asset-backed financing arrangements. The Company has aggregated these asset-backed financing arrangements into a single group: Financings of loans held for sale. Other financing transactions that do not use SPEs or VIEs are disclosed in “Note 13—Warehouse Lines of Credit, Net” and “Note 14—Notes Payable”.
Financing of Loans Held for Sale
The Company consolidates SPEs in connection with warehouse mortgage loan financing arrangements that are structured as repurchase facilities. A participation certificate representing a beneficial interest in mortgage loans is transferred by the Company to the SPEs to collateralize the repurchase obligations. The Company provides credit enhancement to the structures through an unconditional and irrevocable guaranty of the SPE’s payment and performance of the contractual obligations under the repurchase facility. The Company continues to service the underlying mortgage loans that secure the outstanding borrowings. The Company has not provided any non-contractual financial support to the SPEs.
Management has determined that the SPEs are VIEs for which the Company is the primary beneficiary, therefore, the SPEs are included in the consolidated financial statements. The Company has the power to direct
the activities of the VIEs that most significantly impact the VIEs’ economic performance given the Company controls the selection, monitoring, and disposal of collateral assets. In addition, the Company designed the SPEs at inception to enter the repurchase facilities and fund the origination and purchase of mortgage loans. As of December 31, 2024, $391.0 million loans held for sale were pledged as collateral for $366.2 million of repurchase obligations.
The following table presents the carrying value and classification of the assets and liabilities included in the Consolidated Balance Sheets that are associated with the repurchase facilities:
The carrying amount of the consolidated VIEs' assets and liabilities were immaterial as of December 31, 2023.
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