Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS

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SEGMENTS
 3 Months Ended
Mar. 31, 2023
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, 2023 the Company serviced at least one loan in forty-nine 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 Chief Operating Decision Maker 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, 2023:    
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) 1,300  7,410  8,710  (2,727) 5,983 
Other 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 
Income tax benefit —  —  —  (13,605) (13,605)
Net loss $ (32,750) $ (315) $ (33,065) $ (4,130) $ (37,195)
The following table presents the financial performance and results by segment for the three months ended March 31, 2022:
Origination Servicing Total
Segments		 All Other Total
Revenue
Loan origination fees and gain on sale of loans, net $ 238,521  $ 4,118  $ 242,639  $ —  $ 242,639 
Loan servicing and other fees —  53,177  53,177  —  53,177 
Valuation adjustment of mortgage servicing rights —  184,601  184,601  —  184,601 
Interest income (expense) 7,117  (4,267) 2,850  (1,725) 1,125 
Other income, net —  19  19  201  220 
Net revenue 245,638  237,648  483,286  (1,524) 481,762 
Expenses
Salaries, incentive compensation and benefits 174,326  7,258  181,584  5,745  187,329 
General and administrative (11,711) 2,668  (9,043) 3,413  (5,630)
Occupancy, equipment and communication 16,107  1,104  17,211  1,101  18,312 
Depreciation and amortization 3,481  162  3,643  270  3,913 
Reversal of provision for foreclosure losses —  (321) (321) —  (321)
Income tax expense —  —  —  70,186  70,186 
Net income (loss) $ 63,435  $ 226,777  $ 290,212  $ (82,239) $ 207,973