Home Point Capital Inc.

08/11/2022 | Press release | Distributed by Public on 08/11/2022 04:41

Q2 2022 Supplemental Financial Tables

Cover

Home Point Capital Inc.
Second Quarter 2022 Earnings
Supplemental Financial Data
August 11, 2022

Legal Disclaimers

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.

Income Statement

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

Origination Segment

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

Servicing Segment

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)

Balance Sheet

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
- - - - - - - - - - -

Key Performance Indicators

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.

Non-GAAP to GAAP Reconciliation

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 %