08/11/2022 | Press release | Distributed by Public on 08/11/2022 04:41
Home Point Capital Inc. |
Second Quarter 2022 Earnings |
Supplemental Financial Data |
August 11, 2022 |
2. Forward Looking Statements |
This presentation contains certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, but are not limited to, statements relating to the future financial performance of Home Point Capital Inc. ("we," "our," "us" or the "Company"), our business prospects and strategy, anticipated financial position, liquidity and capital needs, the industry in which we operate and other similar matters. Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "could," "would," "will," "may," "can," "continue," "potential," "should" and the negative of these terms or other comparable terminology often identify forward-looking statements. Forward-looking statements are not guarantees of future performance, are based upon assumptions, and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. Factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those contemplated include, among others: our reliance on our financing arrangements to fund mortgage loans and otherwise operate our business; the dependence of our loan origination and servicing revenues on macroeconomic and U.S. residential real estate market conditions; the requirement to repurchase mortgage loans or indemnify investors if we breach representations and warranties; counterparty risk; the requirement to make servicing advances that can be subject to delays in recovery or may not be recoverable in certain circumstances; risks related to any subservicer; competition for mortgage assets that may limit the availability of desirable originations, acquisitions and result in reduced risk-adjusted returns; our ability to continue to grow our loan origination business or effectively manage significant increases in our loan production volume; difficult conditions or disruptions in the mortgage-backed securities ("MBS"), mortgage, real estate and financial markets; competition in the industry in which we operate; our ability to acquire loans and sell the resulting MBS in the secondary markets on favorable terms in our production activities; our ability to adapt to and implement technological changes; the effectiveness of our risk management efforts; our ability to detect misconduct and fraud; any failure to attract and retain a highly skilled workforce, including our senior executives; our ability to obtain, maintain, protect and enforce our intellectual property; any cybersecurity risks, cyber incidents and technology failures; material changes to the laws, regulations or practices applicable to reverse mortgage programs operated by the Federal Housing Administration ("FHA") and the U.S. Department of Housing and Urban Development; our vendor relationships; our failure to deal appropriately with various issues that may give rise to reputational risk, including legal and regulatory requirements; any employment litigation and related unfavorable publicity; exposure to new risks and increased costs as a result of initiating new business activities or strategies or significantly expanding existing business activities or strategies; the impact of changes in political or economic stability or by government policies on our material vendors with operations in India; our ability to fully utilize our net operating loss ("NOL") and other tax carryforwards; any challenge by the Internal Revenue Service of the amount, timing and/or use of our NOL carryforwards; possible changes in legislation and the effect on our ability to use the tax benefits associated with our NOL carryforwards; the impact of other changes in tax laws; the impact of interest rate fluctuations; risks associated with hedging against interest rate exposure; the impact of any prolonged economic slowdown, recession or declining real estate values; risks associated with financing our assets with borrowings; risks associated with a decrease in value of our collateral; the dependence of our operations on access to our financing arrangements, which are mostly uncommitted; risks associated with the financial and restrictive covenants included in our financing agreements; risks associated with changes in the London Inter-Bank Offered Rate reporting practices and the use of alternative reference rates; our ability to raise the debt or equity capital required to finance our assets and grow our business; risks associated with derivative financial instruments; our ability to comply with continually changing federal, state and local laws and regulations; the impact of revised rules and regulations and enforcement of existing rules and regulations by the Consumer Financial Protection Bureau; the impact of revised rules and regulations and enforcement of existing rules and regulations by state regulatory agencies; our ability to comply with the Government-Sponsored Enterprises ("GSE"), FHA, U.S. Department of Veterans Affairs ("VA") and U.S. Department of Agriculture ("USDA") guidelines and changes in these guidelines or GSE and Government National Mortgage Association ("Ginnie Mae") guarantees; changes in regulations or the occurrence of other events that impact the business, operations or prospects of government agencies such as Ginnie Mae, the FHA or the VA, the USDA, or GSEs such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, or such changes that increase the cost of doing business with such entities; our ability to obtain and/or maintain licenses and other approvals in those jurisdictions where required to conduct our business; our ability to comply with the regulations applicable to our investment management subsidiary; the impact of private legal proceedings; risks associated with our acquisition of mortgage servicing rights; the impact of our counterparties terminating our servicing rights under which we conduct servicing activities; risks associated with higher risk loans that we service; our ability to foreclose on our mortgage assets in a timely manner or at all, and the effects of the COVID-19 pandemic on our business. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect the Company's business, including those listed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021, as such risk factors may be amended, supplemented, or superseded from time to time by other reports filed by the Company with the Securities and Exchange Commission. Many of the important factors that will determine these results are beyond our ability to control or predict. You are cautioned not to put undue reliance on any forward-looking statements, which speak only as of the date thereof. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. |
Home Point Capital Inc. | |||||||||||
Condensed Consolidated Statements of Income and Non-GAAP Measurements | |||||||||||
(Unaudited) | |||||||||||
($ amounts in thousands) | 10Q 2022 | 10Q 2022 | NOTE | 10Q 2021 | 10Q 2021 | 10Q 2021 | NOTE | 10Q 2021 | 10Q 2021 | 10Q 2021 | |
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | |
Revenue: | |||||||||||
Gain on loans, net | $ 13,234 | $ 45,404 | $ 64,034 | $ 145,471 | $ 75,029 | $ 301,228 | $ 422,158 | $ 503,344 | $ 356,871 | $ 102,563 | $ 64,006 |
Loan fee income | 15,255 | 19,904 | 32,822 | 34,484 | 39,500 | 44,115 | 35,488 | 28,205 | 20,394 | 12,031 | 12,284 |
Interest income | 27,533 | 27,077 | 39,533 | 36,719 | 34,648 | 25,577 | 17,811 | 14,709 | 11,812 | 15,849 | 16,700 |
Interest expense | (28,920) | (33,095) | (46,787) | (45,532) | (44,136) | (32,935) | (21,734) | (17,559) | (14,373) | (15,913) | (16,008) |
Interest expense, net | (1,387) | (6,018) | (7,254) | (8,813) | (9,488) | (7,358) | (3,923) | (2,850) | (2,561) | (64) | 692 |
Loan servicing fees | 62,872 | 81,064 | 83,629 | 91,831 | 85,584 | 70,338 | 54,328 | 48,350 | 42,308 | 43,246 | 40,139 |
Change in fair value of mortgage servicing rights | (29,887) | 17,183 | 6,256 | 10,970 | (106,905) | 12,848 | (54,728) | (66,749) | (72,248) | (91,527) | (21,966) |
Other income | 9,921 | 634 | 1,085 | 658 | 652 | 801 | 568 | 498 | 260 | 1,380 | 1,569 |
Total revenue, net | 70,008 | 158,171 | 180,572 | 274,601 | 84,372 | 421,972 | 453,891 | 510,798 | 345,024 | 67,629 | 96,723 |
- | |||||||||||
Expenses: | - | ||||||||||
Compensation and benefits | 75,601 | 89,432 | 98,677 | 114,612 | 127,296 | 153,642 | 151,785 | 117,177 | 81,334 | 52,950 | 51,626 |
Loan expense | 6,969 | 9,015 | 12,116 | 16,618 | 17,483 | 17,695 | 12,916 | 8,733 | 7,624 | 5,329 | 4,037 |
Loan servicing expense | 7,121 | 5,746 | 5,092 | 6,681 | 7,507 | 8,093 | 8,044 | 6,481 | 8,308 | 7,953 | 5,143 |
Production technology | 4,343 | 4,865 | 6,828 | 7,583 | 8,169 | 9,285 | 7,617 | 6,379 | 5,049 | 3,113 | 2,860 |
General and administrative | 16,969 | 19,671 | 20,949 | 21,741 | 26,549 | 26,237 | 28,114 | 16,213 | 11,867 | 10,900 | 9,468 |
Depreciation and amortization | 2,627 | 2,687 | 2,576 | 2,440 | 2,350 | 2,761 | 1,369 | 1,236 | 1,427 | 1,499 | 1,523 |
Other expenses | 5,772 | 5,296 | 6,017 | 5,649 | 8,638 | 9,336 | 13,175 | 7,093 | 2,756 | 2,238 | 1,529 |
Total expenses | 119,402 | 136,712 | 152,255 | 175,324 | 197,992 | 227,049 | 223,020 | 163,312 | 118,366 | 83,982 | 76,186 |
- | |||||||||||
Income (Loss) before income tax | (49,394) | 21,459 | 28,316 | 99,277 | (113,620) | 194,923 | 230,871 | 347,486 | 226,658 | (16,353) | 20,537 |
Income tax (expense) benefit | 14,121 | (4,323) | (7,749) | (27,341) | 27,209 | (50,117) | (49,247) | (93,294) | (59,501) | 3,489 | (4,580) |
Income (loss) from equity method investments | (9,144) | (5,272) | (1,275) | (713) | 13,198 | 4,163 | 2,844 | 9,870 | 1,864 | 2,316 | 110 |
Net income (loss) | $ (44,417) | $ 11,864 | $ 19,292 | $ 71,223 | $ (73,213) | $ 148,969 | $ 184,468 | $ 264,062 | $ 169,021 | $ (10,548) | $ 16,067 |
Home Point Capital Inc. | ||||||||||||||
Origination Segment | ||||||||||||||
(Unaudited) | ||||||||||||||
($ amounts in thousands) | ||||||||||||||
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | 2021 | 2020 | ||
Revenue: | ||||||||||||||
Gain on loans, net | $ 13,234 | $ 45,404 | $ 64,228 | $ 145,298 | $ 75,011 | $ 301,228 | $ 422,198 | $ 503,344 | $ 356,871 | $ 102,563 | $ 64,794 | $ 585,765 | $ 1,384,976 | |
Loan fee income | 15,255 | 19,904 | 32,822 | 34,484 | 39,500 | 44,115 | 35,488 | 28,205 | 20,394 | 12,031 | 12,284 | 150,921 | 96,118 | |
Loan servicing fees | - | - | (20) | 28 | - | - | (1,517) | 236 | (1,656) | (562) | (387) | 8 | (3,499) | |
Changes in fair value of MSRs | - | - | - | - | - | - | - | - | - | - | - | - | - | |
Interest Income (expense), net | 8,641 | 7,456 | 5,877 | 4,035 | 2,698 | 1,288 | (228) | 318 | 960 | 526 | 461 | 13,898 | 1,576 | |
Other income | 55 | |||||||||||||
Total Origination segment revenue | 37,185 | 72,764 | 102,907 | 183,845 | 117,209 | 346,631 | 455,941 | 532,103 | 376,569 | 114,558 | 77,152 | 750,592 | 1,479,171 | |
Directly attributable expense | 67,042 | 81,154 | 101,207 | 116,647 | 138,059 | 159,369 | 152,054 | 108,077 | 75,528 | 51,830 | 48,073 | 515,282 | 387,489 | |
Contribution margin | $ (29,857) | $ (8,390) | $ - | $ 1,700 | $ 67,198 | $ (20,850) | $ 187,262 | $ 303,887 | $ 424,026 | $ 301,041 | $ 62,728 | $ 29,079 | $ 235,310 | $ 1,091,682 |
Home Point Capital Inc. | ||||||||||||||
Servicing Segment | ||||||||||||||
(Unaudited) | ||||||||||||||
($ amounts in thousands) | ||||||||||||||
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | 2021 | 2020 | ||
Revenue: | YTD 2021 | YTD 2020 | ||||||||||||
Gain on loans, net | $ - | $ - | $ (190) | $ 173 | $ 17 | $ - | $ (40) | $ - | $ - | $ - | $ (788) | $ - | $ (40) | |
Loan servicing fees | 62,872 | 81,064 | 83,649 | 91,803 | 85,585 | 70,338 | 55,844 | 48,114 | 43,965 | 43,808 | 40,526 | 331,375 | 191,731 | |
Interest Income, net | 1,429 | 706 | 638 | 623 | 415 | 252 | 295 | 598 | 1,269 | 5,264 | 5,628 | 1,928 | 7,426 | |
Other income | - | - | - | - | 49 | 128 | 113 | 89 | 58 | 58 | 8 | 177 | 318 | |
Total Servicing segment revenue | 64,301 | 81,770 | 84,097 | 92,599 | 86,066 | 70,718 | 56,212 | 48,802 | 45,292 | 49,130 | 45,375 | 333,480 | 199,436 | |
Directly attributable expense | 14,391 | 15,719 | 15,948 | 17,440 | 18,757 | 18,722 | 18,314 | 13,937 | 15,461 | 13,265 | 9,825 | 70,867 | 60,977 | |
Primary margin | 49,910 | 66,051 | 68,149 | 75,159 | 67,309 | 51,996 | 37,898 | 34,865 | 29,831 | 35,864 | 35,549 | 262,613 | 138,457 | |
Change in MSR fair value: amortization | (33,389) | (48,950) | (66,723) | (73,942) | (77,724) | (89,170) | (71,900) | (54,932) | (41,137) | (36,153) | - | (32,411) | (307,559) | (204,122) |
Adjusted contribution margin | 16,521 | 17,101 | 1,426 | 1,217 | (10,414) | (37,174) | (34,002) | (20,067) | (11,306) | (289) | 3,138 | (44,945) | (65,665) | |
Change in MSR fair value: mark-to-market, net of hedge | 3,502 | 66,133 | 72,978 | 84,962 | (29,181) | 102,018 | 17,174 | (11,817) | (31,112) | (55,375) | 10,445 | 230,777 | (81,130) | |
Contribution margin | $ 20,023 | $ 83,234 | $ 74,404 | $ 86,179 | $ (39,596) | $ 64,844 | $ (16,828) | $ (31,884) | $ (42,419) | $ (55,664) | $ 13,583 | $ 185,831 | $ (146,796) |
Home Point Capital Inc. | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(Unaudited) | |||||||||||
($ amounts in thousands) | 10Q | 10Q | 10K | 10Q | 10Q | 10Q | 10K | LV | LV | LV | 10K |
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | |
Assets: | |||||||||||
Cash and cash equivalents | $ 135,843 | $ 160,693 | $ 170,987 | $ 160,636 | $ 209,880 | $ 219,285 | $ 165,230 | $ 271,483 | $ 127,292 | $ 35,740 | $ 30,630 |
Restricted cash | 27,065 | 37,038 | 36,803 | 42,491 | 42,994 | 41,863 | 31,663 | 41,907 | 48,937 | 52,308 | 51,101 |
Cash and cash equivalents and Restricted cash | 162,908 | 197,731 | 207,790 | 203,127 | 252,874 | 261,148 | 196,893 | 313,390 | 176,229 | 88,048 | 81,731 |
Mortgage loans held for sale (at fair value) | 2,018,640 | 2,889,039 | 5,107,161 | 6,680,196 | 5,412,452 | 5,191,261 | 3,301,694 | 2,281,835 | 1,904,174 | 1,732,384 | 1,554,230 |
Mortgage servicing rights (at fair value) | 1,419,105 | 1,490,224 | 1,525,103 | 1,402,140 | 1,267,253 | 1,156,357 | 748,457 | 583,263 | 499,782 | 475,870 | 575,035 |
Property and equipment, net | 18,039 | 21,375 | 21,892 | 22,945 | 23,350 | 23,027 | 21,710 | 18,595 | 15,623 | 13,422 | 12,051 |
Accounts receivable, net | 176,995 | 218,032 | 114,728 | 117,538 | 177,360 | 290,555 | 152,845 | 79,320 | 45,185 | 59,631 | 57,872 |
Derivative assets | 59,280 | 183,461 | 84,385 | 164,602 | 125,217 | 186,909 | 334,323 | 315,002 | 244,058 | 281,237 | 40,544 |
Goodwill and intangibles | 10,789 | 10,789 | 10,789 | 10,789 | 10,789 | 10,789 | 10,789 | 10,789 | 10,789 | 11,106 | 11,935 |
Government National Mortgage Association loans eligible for repurchase | 117,092 | 81,341 | 65,237 | 265,132 | 988,218 | 1,446,495 | 2,524,240 | 2,919,881 | 2,351,249 | 500,460 | 499,207 |
Assets held for sale | 50,748 | 58,392 | 63,664 | - | - | - | - | - | - | - | - |
Other assets | 40,824 | 48,593 | 57,592 | 111,640 | 112,143 | 103,850 | 87,622 | 83,897 | 77,110 | 99,377 | 76,162 |
Total assets | $ 4,074,420 | $ 5,198,977 | $ 7,258,341 | $ 8,978,109 | $ 8,369,656 | $ 8,670,391 | $ 7,378,573 | $ 6,605,972 | $ 5,324,199 | $ 3,261,535 | $ 2,908,767 |
Liabilities and Shareholders' Equity: | |||||||||||
Liabilities: | |||||||||||
Warehouse lines of credit | $ 1,910,395 | $ 2,724,931 | $ 4,718,658 | $ 6,308,477 | $ 5,057,590 | $ 4,847,431 | $ 3,005,415 | $ 2,092,477 | $ 1,767,511 | $ 1,621,236 | $ 1,478,183 |
Term debt and other borrowings, net | 845,531 | 942,203 | 1,226,524 | 1,065,762 | 1,166,538 | 888,437 | 454,022 | 374,090 | 348,901 | 429,226 | 424,958 |
Accounts payable and accrued expenses | 106,005 | 135,485 | 138,193 | 127,793 | 146,138 | 196,542 | 167,532 | 269,017 | 78,216 | 77,020 | 39,739 |
Government National Mortgage Association loans eligible for repurchase | 117,092 | 81,341 | 65,237 | 265,132 | 988,218 | 1,446,495 | 2,524,240 | 2,919,881 | 2,351,249 | 500,460 | 499,207 |
Deferred tax liabilities | 214,871 | 232,650 | 229,752 | 224,303 | 196,791 | 217,783 | 174,002 | 112,978 | 35,279 | - | - |
Derivative liabilities | 60,309 | 219,366 | 26,736 | 142,417 | 22,675 | 264,340 | 2,834 | 23,794 | 28,702 | 96,502 | 2,262 |
Other liabilities | 87,815 | 79,744 | 76,588 | 83,023 | 82,378 | 27,066 | 123,054 | 71,064 | 81,382 | 73,409 | 54,106 |
Total liabilities | 3,342,018 | 4,415,720 | 6,481,688 | 8,216,907 | 7,660,328 | 7,888,094 | 6,451,099 | 5,863,301 | 4,691,240 | 2,797,853 | 2,498,455 |
Shareholders' Equity: | |||||||||||
Common stock | - | - | - | - | - | - | - | - | - | - | - |
Additional paid-in capital | 511,675 | 525,639 | 523,811 | 522,080 | 520,505 | 520,261 | 519,510 | 519,177 | 519,035 | 518,779 | 454,861 |
Retained earnings | 220,727 | 259,131 | 252,842 | 239,122 | 188,823 | 262,036 | 407,964 | 223,494 | 113,924 | (55,097) | (44,549) |
Treasury stock | - | (1,513) | - | - | - | - | - | - | - | - | - |
Total shareholders' equity | 732,402 | 783,257 | 776,653 | 761,202 | 709,328 | 782,297 | 927,474 | 742,671 | 632,959 | 463,682 | 410,312 |
Total liabilities and shareholders' equity | $ 4,074,420 | $ 5,198,977 | $ 7,258,341 | $ 8,978,109 | $ 8,369,656 | $ 8,670,391 | $ 7,378,573 | $ 6,605,972 | $ 5,324,199 | $ 3,261,535 | $ 2,908,767 |
- | - | - | - | - | - | - | - | - | - | - |
Home Point Capital Inc. | |||||||||||||||||||||
Key Performance Indicators (KPIs) | |||||||||||||||||||||
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | |||||||||||
Origination Volume by Channel ($ thousands) | |||||||||||||||||||||
Wholesale | $ 7,382,358 | $ 9,318 | $ 15,046,949 | $ 16,355,449 | $ 18,380,041 | $ 19,668,264 | $ 14,130,102 | $ 10,981,395 | $ 7,844,172 | $ 4,946,545 | $ 4,541,560 | ||||||||||
Correspondent | 1,731,820 | 2,733 | 4,499,745 | 3,434,186 | 5,695,078 | 8,243,380 | 8,575,904 | 6,280,039 | 3,490,965 | 2,925,706 | 3,538,842 | ||||||||||
Direct | 177,689 | 504 | 969,330 | 1,005,985 | 1,390,698 | 1,514,287 | 1,249,006 | 852,433 | 431,714 | 292,812 | 196,020 | 96,203,392 | T/A to 10K 2021 | ||||||||
Total Originations | $ 9,291,867 | $ 12,555 | $ 20,516,024 | $ 20,795,620 | $ 25,465,817 | $ 29,425,931 | $ 23,955,012 | $ 18,113,867 | $ 11,766,851 | $ 8,165,063 | $ 8,276,422 | 62,000,793 | T/A to 10K 2020 | ||||||||
55.2 % | |||||||||||||||||||||
Fallout Adjusted Lock Volume by Channel ($ thousands) | |||||||||||||||||||||
Wholesale | $ 7,483,278 | $ 9,563,708 | $ 12,605,741 | $ 16,709,845 | $ 15,566,192 | $ 16,139,923 | $ 13,704,506 | $ 11,242,589 | $ 8,170,570 | $ 6,962,668 | $ 3,634,264 | ||||||||||
Correspondent | 1,269,053 | 2,610,843 | 4,042,079 | 4,149,963 | 3,962,583 | 6,673,059 | 6,607,574 | 6,547,672 | 4,694,408 | 3,227,697 | 3,324,317 | ||||||||||
Direct | 125,874 | 414,570 | 684,832 | 1,034,634 | 835,980 | 739,796 | 838,727 | 799,514 | 591,015 | 335,386 | 136,219 | ||||||||||
Total Fallout Adjusted Lock Volume | $ 8,878,205 | $ 12,589,121 | $ 17,332,652 | $ 21,894,442 | $ 20,364,756 | $ 23,552,778 | $ 21,150,807 | $ 18,589,775 | $ 13,455,993 | $ 10,525,751 | $ 7,094,800 | ||||||||||
Gain on Sale Margin by Channel (in thousands)1 | |||||||||||||||||||||
Wholesale | $ 47,654 | $ 62,586 | $ 76,411 | $ 121,999 | $ 114,486 | $ 245,050 | $ 321,105 | $ 359,512 | $ 252,534 | $ 130,171 | $ 42,402 | ||||||||||
Correspondent | 2,002 | 3,450 | 7,371 | 8,351 | 9,270 | 22,162 | 20,207 | 40,431 | 50,163 | 21,412 | 13,489 | ||||||||||
Direct | 3,214 | 10,697 | 17,514 | 30,252 | 26,322 | 26,758 | 33,451 | 33,564 | 25,943 | 14,579 | 6,872 | ||||||||||
Other2 | (15,685) | (3,969) | 1,611 | 23,243 | (32,869) | 52,660 | 81,178 | 98,596 | 47,928 | (51,604) | 1,243 | ||||||||||
Total Gain on Sale Margin | $ 37,185 | $ 72,764 | $ 102,907 | $ 183,845 | $ 117,209 | $ 346,631 | $ 455,941 | $ 532,103 | $ 376,569 | $ 114,558 | $ 64,006 | ||||||||||
- | - | - | - | - | - | - | - | - | - | ||||||||||||
Gain on Sale Margin (bps)1 | |||||||||||||||||||||
Wholesale | 64 | 65 | 61 | 73 | 74 | 152 | 234 | 320 | 309 | 187 | 117 | ||||||||||
Correspondent | 16 | 13 | 18 | 20 | 23 | 33 | 31 | 62 | 107 | 66 | 41 | ||||||||||
Direct | 256 | 258 | 256 | 292 | 315 | 362 | 399 | 420 | 439 | 435 | 504 | ||||||||||
Other | (18) | (3) | 1 | 11 | (16) | 22 | 38 | 53 | 36 | (49) | 2 | ||||||||||
Total Gain on Sale Margin | 42 | 58 | 59 | 84 | 58 | 147 | 216 | 286 | 280 | 109 | 90 | ||||||||||
Market Share for the period ended3 | |||||||||||||||||||||
Overall share of origination market | 1.7% | 0.02 | 3.9 % | 2.1% | 2.2% | 2.2% | 1.9% | 1.6% | 1.2% | 1.2% | 1.1% | ||||||||||
Share of wholesale channel | 8.3% | 0.097 | 10.5 % | 9.8% | 10.2% | 10.4% | 8.2% | 7.3% | 6.2% | 4.7% | 4.5% | ||||||||||
Origination Volume by Purpose | |||||||||||||||||||||
Purchase | 71.3% | 44.4% | 37.5% | 34.6% | 35.2% | 20.4% | 29.5% | 29.0% | 30.7% | 39.3% | 44.3% | ||||||||||
Refinance | 28.7% | 55.6% | 62.5% | 65.4% | 64.8% | 79.6% | 70.5% | 71.0% | 69.3% | 60.7% | 55.7% | ||||||||||
Third Party Partners | |||||||||||||||||||||
Number of Broker Partners | 8,744 | 8,376 | 8,012 | 7,452 | 6,738 | 6,023 | 5,372 | 4,921 | 4,338 | 3,512 | 3,085 | ||||||||||
Number of Correspondent Sellers | 670 | 669 | 676 | 652 | 642 | 620 | 604 | 587 | 580 | 552 | 537 | ||||||||||
Mortgage Servicing | |||||||||||||||||||||
MSR Servicing Portfolio - UPB | $ 90,516,421 | $ 101,984,767 | $ 128,359,574 | $ 125,832,286 | $ 124,258,935 | $ 105,821,372 | $ 88,277,250 | $ 73,951,042 | $ 63,117,721 | $ 56,717,057 | $ 52,600,547 | ||||||||||
Average MSR Servicing Portfolio - UPB (QoQ) | $ 96,250,594 | $ 115,172,171 | $ 127,095,930 | $ 125,045,611 | $ 115,040,154 | $ 97,049,311 | $ 81,114,146 | $ 68,534,382 | $ 59,917,389 | $ 54,658,802 | |||||||||||
Average MSR Servicing Portfolio - UPB (YoY) | $ 108,318,412 | $ 70,438,898 | |||||||||||||||||||
MSR Servicing Portfolio - Units | 320,215 | 349,261 | 425,989 | 428,622 | 449,029 | 396,641 | 349,696 | 307,236 | 273,009 | 251,990 | 236,362 | ||||||||||
Weighted average coupon rate | 3.18% | 3.00% | 2.96% | 2.98% | 3.09% | 3.19% | 3.41% | 3.63% | 3.82% | 3.94% | 4.01% | ||||||||||
60+ days delinquent, incl. forbearance | 0.9% | 0.8% | 0.7% | 0.9% | 1.6% | 2.7% | 4.4% | 6.5% | 7.8% | 1.7% | 1.7% | ||||||||||
MSR Multiple | 5.83 | 5.57 | x | 4.62 | x | 4.20 | x | 3.69 | x | 3.84 | x | 2.85 | x | 2.57 | x | 2.51 | x | 2.61 | x | 3.43 | x |
(1) Calculated as gain on sale divided by Fallout Adjusted Lock Volume. Gain on sale includes gain on loans, net, loan fee income, interest income (expense), net, and loan servicing fees (expense) for the Origination segment. | |||||||||||||||||||||
(2) Includes interest income (expense), net, realized and unrealized gains (losses) on locks and mortgage loans held for sale, net hedging results, the provision for the representation and warranty reserve, and differences between modeled and actual pull-through. | |||||||||||||||||||||
(3) Market share data for Q2, 2022 is as of March 31, 2022 obtained from Inside Mortgage Finance, a third party provider of residential mortgage industry news and statistics. The data as of Q2, 2022 is not yet available from Inside Mortgage Finance as of the date of this filing. |
Homepoint Capital Inc. | |||||||||||
Condensed Consolidated Statements of Income and Non-GAAP Measurements | |||||||||||
(Unaudited) | |||||||||||
($ amounts in thousands) | |||||||||||
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | |
Reconciliation of Adjusted Revenue to Total Revenue, Net | |||||||||||
Total revenue, net | $ 70,008 | $ 158,171 | $ 180,572 | $ 274,601 | $ 84,372 | $ 421,972 | $ 453,891 | $ 510,798 | $ 345,024 | $ 67,629 | $ 96,723 |
Income from equity method investment | (9,144) | (5,272) | (1,275) | (713) | 13,198 | 4,163 | 2,844 | 9,870 | 1,864 | 2,316 | 110 |
Change in FV of MSR, net of hedge | (3,502) | (66,133) | (72,978) | (84,962) | 29,181 | (102,018) | (17,174) | 11,817 | 31,112 | 55,375 | (10,445) |
Adjusted revenue | $ 57,362 | $ 86,766 | $ 106,319 | $ 188,926 | $ 126,751 | $ 324,117 | $ 439,561 | $ 532,485 | $ 378,000 | $ 125,320 | $ 86,388 |
Reconciliation of Adjusted Net Income (Loss) to Total Net Income (Loss) | |||||||||||
Total net income (loss) | $ (44,417) | $ 11,864 | $ 19,292 | $ 71,223 | $ (73,213) | $ 148,969 | $ 184,468 | $ 264,062 | $ 169,021 | $ (10,548) | $ 16,067 |
Change in FV of MSR, net of hedge | (3,502) | (66,133) | (72,978) | (84,962) | 29,181 | (102,018) | (17,174) | 11,817 | 31,112 | 55,375 | (10,445) |
Income tax effect of change in FV of MSR | 1,001 | 13,323 | 19,971 | 23,399 | (6,988) | 26,230 | 3,663 | (3,173) | (8,167) | (11,815) | 2,330 |
Adjusted net income | $ (46,918) | $ (40,946) | $ (33,715) | $ 9,660 | $ (51,020) | $ 73,181 | $ 170,957 | $ 272,706 | $ 191,966 | $ 33,012 | $ 7,952 |
Reconciliation of Adjusted Net Margin to Net Margin | |||||||||||
Total revenue, net | $ 70,008 | $ 158,171 | $ 180,572 | $ 274,601 | $ 84,372 | $ 421,972 | $ 453,891 | $ 510,798 | $ 345,024 | $ 67,629 | $ 96,723 |
Total net income (loss) | (44,417) | $ 11,864 | $ 19,292 | $ 71,223 | $ (73,213) | $ 148,969 | $ 184,468 | $ 264,062 | $ 169,021 | $ (10,548) | $ 16,067 |
Net margin | (63)% | 8 % | 11 % | 26 % | (87)% | 35.303 % | 41 % | 52 % | 49 % | (16)% | 17 % |
Adjusted revenue | $ 57,362 | $ 86,766 | $ 106,319 | $ 188,926 | $ 126,751 | $ 324,117 | $ 439,561 | $ 532,485 | $ 378,000 | $ 125,320 | $ 86,388 |
Adjusted net income | (46,918) | $ (40,946) | $ (33,715) | $ 9,660 | $ (51,020) | $ 73,181 | $ 170,957 | $ 272,706 | $ 191,966 | $ 33,012 | $ 7,952 |
Net margin | (82)% | (47)% | (32)% | 5 % | (40)% | 22.579 % | 39 % | 51 % | 51 % | 26 % | 9 % |