Quarterly report [Sections 13 or 15(d)]

SEGMENTS

v3.25.3
SEGMENTS
 9 Months Ended
Sep. 30, 2025
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, based on the Company’s business lines that offer different products and services, as described below.
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 primarily 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 September 30, 2025 the Company serviced at least one loan in 49 different states and the District of Columbia. 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’s chief operating decision maker (“CODM”) is the executive management team consisting of the Chief Executive Officer and the President and Chief Operating Officer. The CODM uses net income for both reportable segments as its primary measure in assessing segment performance and how to allocate resources. 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 September 30, 2025:
(in thousands)
 Origination Servicing Total
Segments		 All Other Total
Revenue
Loan origination fees and gain on sale of loans, net $ 242,020  $ 1,830  $ 243,850  $ —  $ 243,850 
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 4,018  —  4,018  —  4,018 
Loan servicing and other fees —  73,931  73,931  —  73,931 
Valuation adjustment of mortgage servicing rights —  (29,009) (29,009) —  (29,009)
Interest income
 28,363  14,987  43,350  —  43,350 
Interest expense
 (21,029) (1,463) (22,492) (6,723) (29,215)
Other income (expense), net 513  —  513  (1) 512 
Net revenue 253,885  60,276  314,161  (6,724) 307,437 
Expenses
Salaries, incentive compensation and benefits 179,185  10,516  189,701  18,200  207,901 
General and administrative 20,139  2,695  22,834  6,505  29,339 
Occupancy, equipment and communication 16,476  1,142  17,618  1,924  19,542 
Depreciation and amortization 3,103  299  3,402  126  3,528 
Provision for foreclosure losses —  1,148  1,148  —  1,148 
Total expenses
 218,903  15,800  234,703  26,755  261,458 
Income tax expense —  —  —  12,636  12,636 
Net income (loss) $ 34,982  $ 44,476  $ 79,458  $ (46,115) $ 33,343 
The following table presents the financial performance and results by segment for the nine months ended September 30, 2025:
(in thousands)
 Origination Servicing Total
Segments		 All Other Total
Revenue
Loan origination fees and gain on sale of loans, net $ 661,313  $ 3,751  $ 665,064  $ —  $ 665,064 
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 9,524  —  9,524  —  9,524 
Loan servicing and other fees —  219,427  219,427  —  219,427 
Valuation adjustment of mortgage servicing rights —  (140,258) (140,258) —  (140,258)
Interest income
 72,965  37,543  110,508  650  111,158 
Interest expense
 (57,539) (3,877) (61,416) (18,841) (80,257)
Other income (expense), net 767  2  769  (59) 710 
Net revenue 687,030  116,588  803,618  (18,250) 785,368 
Expenses
Salaries, incentive compensation and benefits 507,588  30,992  538,580  45,371  583,951 
General and administrative 62,441  9,643  72,084  17,834  89,918 
Occupancy, equipment and communication 51,670  3,417  55,087  6,088  61,175 
Depreciation and amortization 9,815  639  10,454  332  10,786 
Provision for foreclosure losses —  4,641  4,641  —  4,641 
Total expenses
 631,514  49,332  680,846  69,625  750,471 
Income tax expense —  —  —  6,850  6,850 
Net income (loss) $ 55,516  $ 67,256  $ 122,772  $ (94,725) $ 28,047 
The following table presents the financial performance and results by segment for the three months ended September 30, 2024:
(in thousands)
 Origination Servicing Total
Segments		 All Other Total
Revenue
Loan origination fees and gain on sale of loans, net $ 220,365  $ 246  $ 220,611  $ —  $ 220,611 
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 2,367  —  2,367  —  2,367 
Loan servicing and other fees —  70,951  70,951  —  70,951 
Valuation adjustment of mortgage servicing rights —  (145,776) (145,776) —  (145,776)
Interest income
 27,438  15,799  43,237  571  43,808 
Interest expense
 (26,730) (1,113) (27,843) (5,496) (33,339)
Other income (expense), net 657  70  727  (92) 635 
Net revenue 224,097  (59,823) 164,274  (5,017) 159,257 
Expenses
Salaries, incentive compensation and benefits 175,922  9,219  185,141  13,864  199,005 
General and administrative 19,742  3,788  23,530  3,188  26,718 
Occupancy, equipment and communication 18,708  1,004  19,712  2,289  22,001 
Depreciation and amortization 3,290  161  3,451  302  3,753 
Provision for foreclosure losses —  613  613  —  613 
Total expenses
 217,662  14,785  232,447  19,643  252,090 
Income tax benefit —  —  —  (25,882) (25,882)
Net income (loss) $ 6,435  $ (74,608) $ (68,173) $ 1,222  $ (66,951)
The following table presents the financial performance and results by segment for the nine months ended September 30, 2024:
(in thousands)
 Origination Servicing Total
Segments		 All Other Total
Revenue
Loan origination fees and gain on sale of loans, net $ 560,247  $ 272  $ 560,519  $ —  $ 560,519 
Gain on reverse mortgage loans held for investment and HMBS-related borrowings, net 7,731  —  7,731  —  7,731 
Loan servicing and other fees —  204,448  204,448  —  204,448 
Valuation adjustment of mortgage servicing rights —  (122,864) (122,864) —  (122,864)
Interest income
 63,486  39,820  103,306  1,449  104,755 
Interest expense
 (62,233) (2,768) (65,001) (13,526) (78,527)
Other income (expense), net 1,556  137  1,693  (1,031) 662 
Net revenue 570,787  119,045  689,832  (13,108) 676,724 
Expenses
Salaries, incentive compensation and benefits 466,064  25,882  491,946  36,064  528,010 
General and administrative 62,088  10,505  72,593  11,734  84,327 
Occupancy, equipment and communication 53,519  2,705  56,224  5,940  62,164 
Depreciation and amortization 9,943  572  10,515  962  11,477 
Provision for foreclosure losses —  509  509  —  509 
Total expenses
 591,614  40,173  631,787  54,700  686,487 
Income tax benefit —  —  —  (8,803) (8,803)
Net (loss) income $ (20,827) $ 78,872  $ 58,045  $ (59,005) $ (960)