UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
 CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): May 6, 2021
 
Home Point Capital Inc.
(Exact name of registrant as specified in its charter)



Delaware
001-39964
90-1116426
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

2211 Old Earhart Road, Suite 250
Ann Arbor, Michigan 48105
 (Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (888) 616-6866

Not applicable
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8−K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a−12 under the Exchange Act (17 CFR 240.14a−12)
 
Pre−commencement communications pursuant to Rule 14d−2(b) under the Exchange Act (17 CFR 240.14d−2(b))
 
Pre−commencement communications pursuant to Rule 13e−4(c) under the Exchange Act (17 CFR 240.13e− 4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading Symbol
 
Name of each exchange on which registered
Common Stock, par value
$0.0000000072 per share
 
HMPT
 
The Nasdaq Stock Market LLC
(The Nasdaq Global Select Market)
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02
Results of Operations and Financial Condition.
 
On May 6, 2021, Home Point Capital Inc. (the “Company”) published an earnings release reporting its financial results for the fiscal quarter ended March 31, 2021. A copy of the earnings release is attached as Exhibit 99.1 hereto and is incorporated by reference herein.
 
The investor presentation materials used on the Company’s earnings call are attached as Exhibit 99.2 hereto and are incorporated by reference herein. On May 6, 2021, the Company posted the materials attached as Exhibits 99.1 and 99.2 on its website (www.investors.homepoint.com).
 
The foregoing information (including the exhibits hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
 
Item 8.01
Other Events.
 
On May 6, 2021, the Company made certain historical quarterly financial information (“Supplemental Financial Information”) available through its website (www.investors.homepoint.com). A copy of the Supplemental Financial Information is attached as Exhibit 99.3 hereto and is incorporated by reference herein.
 
Our website and the information contained on, or that can be accessed through, our website will not be deemed to be incorporated by reference in, and are not considered part of, this Current Report on Form 8-K.
 
Item 9.01
Financial Statements and Exhibits.
 
(d)
Exhibits.
 
Exhibit No.
 
Description
 
Earnings release dated May 6, 2021.
     
 
Investor presentation materials dated May 6, 2021.
     
 
Supplemental Financial Information.


Signatures
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
HOME POINT CAPITAL INC.
     
Date: May 6, 2021
   
     
 
By:
/s/ Mark E. Elbaum
     
 
Name:
Mark E. Elbaum
 
Title:
Chief Financial Officer




Exhibit 99.1

Home Point Capital Reports First Quarter 2021 Financial Results
 
–Record Quarterly Origination Volume of $29 Billion, Up 260% Year-Over-Year–
–Six-fold Increase in Quarterly Net Revenue Year-Over-Year to $422 Million–
–First Quarter Net Income of $149 Million—
 
ANN ARBOR, Mich., May 6, 2021Home Point Capital Inc. (NASDAQ: HMPT) (together with its subsidiaries, “Home Point Capital” or the “Company”), the parent entity of Home Point Financial Corporation (“Homepoint”), today announced its financial results for the first quarter ended March 31, 2021. 
 
“Our results for the first quarter of 2021 reflect the benefits of Home Point Capital’s diversified business model, which enables the Company to create value in a variety of macroeconomic environments,” said Willie Newman, President and Chief Executive Officer. “We entered 2021 with significant momentum and this was reflected in the first quarter, as we originated a record $29 billion of funded volume. We also significantly increased the pace of new broker partner additions to our platform, which we believe will drive long-term growth in our market share. In addition, our growing servicing book and increases in valuation were also positive contributors to our first quarter results. Looking forward, we remain focused on expanding our market share and partner network, driving efficiency across our business, and building sustainable long-term value for our stakeholders.”
 

First Quarter 2021 Financial Summary
 
($mm, except per share values)
 
For the quarter ended
 
   
3/31/2021
   
12/31/2020
   
3/31/2020
 
                   
Total Funded Origination Volume
 
$
29,426
   
$
23,956
   
$
8,165
 
Total Fallout Adjusted Lock Volume
   
23,553
     
21,151
     
10,526
 
Gain on sale margin (bps)1
   
128
     
200
     
97
 
Servicing portfolio - Units
   
409,075
     
359,323
     
255,817
 
Servicing portfolio - UPB
 
$
109,923
   
$
91,483
   
$
57,905
 
                         
Total  revenue, net
 
$
422.0
   
$
453.9
   
$
67.6
 
Origination segment direct expenses
   
157.8
     
153.6
     
51.8
 
Servicing segment direct expenses
   
18.7
     
18.3
     
13.3
 
Corporate expenses
   
50.5
     
51.1
     
18.9
 
Total expenses
   
227.0
     
223.0
     
84.0
 
Net income (loss)
   
149.0
     
184.5
     
(10.6
)
Net income (loss) per share2
 
$
1.07
   
$
1.33
   
$
(0.08
)

(1) Calculated as gain on sale, net, divided by Fallout Adjusted Lock Volume. We previously calculated gain on sale margin as gain on sale, net, divided by Total Funded Origination Volume. We believe that the calculation of gain on sale margin presented herein aligns more closely with when revenue is recognized under U.S. GAAP and we intend to use such presentation on a go-forward basis. For reference, we have also made available supplemental financial information, which includes the calculation of gain on sale margin as presented herein for each of the historical quarterly periods beginning with the quarter ended December 31, 2019, which is available free of charge on the Securities and Exchange Commission’s website at www.sec.gov and on our website at investors.homepoint.com.    

(2) On January 21, 2021, Home Point Capital effected a stock split of its outstanding common stock pursuant to which the 100 outstanding shares were split into 1,388,601.11 shares each, for a total of 138,860,103 shares of outstanding common stock. As a result, all amounts relating to per share amounts have been retroactively adjusted to reflect this stock split.



First Quarter 2021 Highlights
 

Quarterly funded origination volume of $29 billion, more than tripling volume from the first quarter of 2020, and up 23% versus the fourth quarter of 2020.
 

Total revenue, net of $422 million, a 525% increase from the prior year quarter, and a 7% decrease from the fourth quarter of 2020. Revenue for the first quarter of 2021 includes a $102 million net mark-to-market gain in the fair value of the Company’s mortgage servicing rights (MSR) portfolio, as a result of the significant increase in interest rates during the quarter.
 

Gain on sale margin of 128 basis points, up from 97 basis points in the first quarter of 2020, and down from 200 basis points in the fourth quarter of 2020.
 

Net income of $149 million (or $1.07 per share), compared to a net loss of $11 million (or a loss of $0.08 per share) year-over-year, and compared to $184 million (or $1.33 per share) in the fourth quarter of 2020. Adjusted net income1, excluding the $77 million after-tax mark-to-market gain on the MSR portfolio for the first quarter of 2021, was $72 million (or $0.52 per share).
 

Broker Partners totaled 6,023 as of March 31, 2021, a 72% increase from the end of the first quarter of 2020, and a 12% increase from year-end 2020.
 

Servicing customers of 409,075 at the end of the first quarter of 2021, a 60% increase from the end of the first quarter of 2020, and a 14% increase from year-end 2020.
 

Servicing portfolio unpaid principal balance (UPB) of $109.9 billion as of March 31, 2021, up 90% from the end of the first quarter of 2020, and up 14% from year-end 2020.   
 
Origination Segment
 
Home Point Capital’s Origination segment originates and sells residential real estate mortgage loans. These loans are sourced through three channels. Our primary channel is Wholesale, where we work with mortgage brokerages to source new customers. In our Correspondent channel, we acquire customers through a network of mortgage banks and financial institutions. Our Direct channel retains Home Point Capital serviced customers in our ecosystem.  
 
The Origination segment generated a contribution margin of $189 million for the first quarter of 2021, up from $63 million for the first quarter of 2020, and down from $302 million for the fourth quarter of 2020.

(1) Non-GAAP measure. See non-GAAP reconciliation for a reconciliation to the nearest GAAP measure.
 

 Origination Segment – Financial Highlights and Summary of Key Performance Indicators

($mm)   For the quarter ended  


3/31/2021
   
12/31/2020
   
3/31/2020
 
                   
Gain on loans, net
 
$
301.2
   
$
422.2
   
$
102.6
 
Loan fee income
   
44.1
     
35.5
     
12.0
 
Loan servicing fees
   
(0.0
)
   
(1.5
)
   
(0.6
)
Interest income, net
   
1.3
     
(0.2
)
   
0.5
 
Total Origination segment revenue
   
346.6
     
455.9
     
114.6
 
Directly attributable expense
   
(157.8
)
   
(153.6
)
   
(51.8
)
Contribution margin
 
$
188.8
   
$
302.3
   
$
62.7
 
                         
Key Performance Indicators1
 
For the quarter ended
 
 
3/31/2021
   
12/31/2020
   
3/31/2020
 
                         
Total Funded Origination Volume
 
$
29,426
   
$
23,956
   
$
8,165
 
Total Fallout Adjusted Lock Volume
 
$
23,553
   
$
21,151
   
$
10,526
 
                         
Total Gain on Sale Margin (bps)2
   
128
     
200
     
97
 
                         
Origination Volume by Purpose:
                       
Purchase
   
20.4
%
   
29.5
%
   
39.3
%
Refinance
   
79.6
%
   
70.5
%
   
60.7
%
                         
Third Party Partners:
                       
Number of Broker Partners
   
6,023
     
5,372
     
3,512
 
Number of Correspondent Partners
   
620
     
604
     
552
 


(1) See Appendix for additional volume and gain on sale information by channel.

(2) Calculated as gain on sale, net, divided by Fallout Adjusted Lock Volume. We previously calculated gain on sale margin as gain on sale, net, divided by Total Funded Origination Volume. We believe that the calculation of gain on sale margin presented herein aligns more closely with when revenue is recognized under U.S. GAAP and we intend to use such presentation on a go-forward basis. For reference, we have also made available supplemental financial information, which includes the calculation of gain on sale margin as presented herein for each of the historical quarterly periods beginning with the quarter ended December 31, 2019, which is available free of charge on the Securities and Exchange Commission’s website at www.sec.gov and on our website at investors.homepoint.com.    
 

Servicing Segment
 
Home Point Capital’s Servicing segment generates revenue through contractual fees earned by performing daily administrative and management activities for mortgage loans that were primarily sourced by the Company’s Originations segment. These loans are serviced on behalf of investors/guarantors, primarily Fannie Mae, Freddie Mac and Ginnie Mae.  
 
The Servicing segment generated a contribution margin of $65 million for the first quarter of 2021, compared to $(56) million for the first quarter of 2020 and $(17) million for the fourth quarter of 2020.
 
Servicing Segment – Financial Highlights and Key Performance Indicators
 
($mm)
 
For the quarter ended
 
   
3/31/2021
   
12/31/2020
   
3/31/2020
 
                   
Gain on loans, net
 
$
-
   
$
(0.0
)
 
$
-
 
Loan servicing fees
   
70.3
     
55.8
     
43.8
 
Interest income, net
   
0.3
     
0.3
     
5.3
 
Other income
   
0.1
     
0.1
     
0.1
 
Total Servicing segment revenue
   
70.7
     
56.2
     
49.1
 
Directly attributable expense
   
(18.7
)
   
(18.3
)
   
(13.3
)
Primary Margin
   
52.0
     
37.9
     
35.9
 
Change in MSR fair value: amortization
   
(89.2
)
   
(71.9
)
   
(36.2
)
Change in MSR fair value: mark-to-market, net of hedge
   
102.0
     
17.2
     
(55.4
)
Contribution margin
 
$
64.9
   
$
(16.8
)
 
$
(55.7
)
                         
Key Performance Indicators
  For the quarter ended1  
   
3/31/2021
   
12/31/2020
   
3/31/2020
 
                         
MSR servicing portfolio - UPB
 
$
109,923
   
$
91,483
   
$
57,905
 
Average MSR servicing portfolio - UPB
 
$
100,703
   
$
83,305
   
$
56,041
 
MSR servicing portfolio - Units
   
409,075
     
359,323
     
255,817
 
Weighted average coupon rate
   
3.19
%
   
3.41
%
   
3.94
%
60+ days delinquent, incl. forbearance
   
2.7
%
   
4.4
%
   
1.7
%
60+ days delinquent, excl. forbearance
   
1.0
%
   
1.5
%
 
NA
 
MSR multiple
   
3.8
x
   
2.9
x
   
2.6
x

(1) Figures as of period end, except “Average MSR servicing portfolio - UPB” which is average for the period.

Balance Sheet and Liquidity Highlights
 
Home Point Capital had available liquidity of $443 million as of March 31, 2021, comprising $219 million of cash and cash equivalents and $224 million of undrawn capacity from mortgage servicing rights lines of credit and other credit facilities. The Company’s warehouse capacity of $6.4 billion as of March 31, 2021 increased from $4.2 billion at the end of the fourth quarter of 2020.
 
($mm)
 
As of
 
   
3/31/2021
   
12/31/2020
   
3/31/2020
 
                   
Cash and cash equivalents
 
$
219.3
   
$
165.2
   
$
35.8
 
Mortgage servicing rights (at fair value)
   
1,156.4
     
748.5
     
475.9
 
Warehouse lines of credit
   
4,847.4
     
3,005.4
     
1,621.2
 
Term debt and other borrowings, net
   
888.4
     
454.0
     
429.2
 
Total shareholders’ equity
   
782.3
     
927.5
     
463.7
 

Conference Call and Webcast 
 
Members of Home Point Capital’s management team will host a conference call and live webcast on Thursday, May 6, 2021 at 8:30 a.m. ET to review the Company’s financial results for the first quarter ended March 31, 2021. 
 
The conference call may be accessed by dialing (800) 768-5901 (toll-free) or (415) 226-5359 (international), using the passcode 21993573. The number should be dialed at least ten minutes prior to the start of the call. A simultaneous webcast will also be available and can be accessed through the Investor Relations section of Home Point Capital’s website at investors.homepoint.com. 
 
An investor presentation will be referenced during the call, and it will be available prior to the call through the Investor Relations section of Home Point Capital’s website.
 
A telephonic replay of the call will be available approximately two hours after the live call through Thursday, May 13, 2021 by dialing (844) 512-2921 (toll-free) or (412) 317-6671 (international), passcode 21993573. To access a replay of the webcast, please visit Events in the Investor Relations section of Home Point Capital’s website.


About Home Point Capital
 
Home Point Capital is the parent company of Homepoint, one of the nation’s leading mortgage originators and servicers, as well as wholly owned subsidiaries Home Point Mortgage Acceptance Corporation and Home Point Asset Management. Home Point Capital’s primary business entity, Homepoint, puts people front and center of the homebuying and homeownership experience. The Company supports successful homeownership as a crucial element of broader financial security and well-being through delivering long-term value beyond the loan. Founded in 2015 and headquartered in Ann Arbor, Michigan, Homepoint works with a nationwide network of more than 6,000 mortgage broker and correspondent partners with deep knowledge and expertise about the communities and customers they serve. Today, Homepoint is the nation’s third-largest wholesale mortgage lender and the 7th-largest non-bank mortgage lender.

Home Point Financial Corporation d/b/a Homepoint. NMLS No. 7706 (For licensing information, go to: nmlsconsumeraccess.org). Home Point Financial Corporation does not conduct business under the name, “Homepoint” in IL, KY, LA, MD, NY, or WY. In these states, the company conducts business under the full legal name, Home Point Financial Corporation. 2211 Old Earhart Road, Suite 250, Ann Arbor, MI 48105. Toll-Free Tel: 888-616-6866.
 
Forward Looking Statements
 
This press release contains certain “forward-looking statements,” as that term is defined in the U.S. federal securities laws. In addition, from time to time, the Company or its representatives have made, or may make, forward-looking statements orally or in writing. These forward-looking statements include, but are not limited to, statements other than statements of historical facts, including among others, statements relating to the Company’s future financial performance, the Company’s business prospects and strategy, anticipated financial position, liquidity and capital needs, the industry in which the Company operates 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. These forward-looking statements are not guarantees of future performance 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: the spread of the COVID-19 outbreak and severe disruptions in the U.S. and global economy and financial markets it has caused; 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; counterparty risk; the requirement to make servicing advances that can be subject to delays in recovery or may not be recoverable in certain circumstances; 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; competition in the industry in which we operate; our success and growth of our production and servicing activities and the dependence upon our ability to adapt to and implement technological changes; the effectiveness of our risk management efforts; our ability to detect misconduct and fraud; any cybersecurity risks, cyber incidents and technology failures; our vendor relationships; our failure to deal appropriately with various issues that may give rise to reputational risk, including legal and regulatory requirements; 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; 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; risks associated with the financial and restrictive covenants included in our financing agreements; risks associated with higher risk loans that we service; risks associated with derivative financial instruments; our ability to foreclose on our mortgage assets in a timely manner or at all; our ability to obtain and/or maintain licenses and other approvals in those jurisdictions where required to conduct our business; legislative and regulatory changes that impact the mortgage loan industry or housing market; and changes in regulations or the occurrence of other events that impact the business, operations or prospects of government agencies or such changes that increase the cost of doing business with such entities. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect the Company’s business, including those described in documents filed from time to time 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.
 

Consolidated Statements of Income (Loss)
 
($ in millions, except per share data)
 
(Unaudited)
 
($mm, except per share values)
 
For the quarter ended
 
   
3/31/2021
   
12/31/2020
   
3/31/2020
 
                   
Gain on loans, net
 
$
301.2
   
$
422.2
   
$
102.6
 
Loan fee income
   
44.1
     
35.5
     
12.0
 
Interest income
   
25.5
     
17.8
     
15.8
 
Interest expense
   
(32.9
)
   
(21.7
)
   
(15.9
)
Interest (expense), net
   
(7.4
)
   
(3.9
)
   
(0.1
)
Loan servicing fees
   
70.4
     
54.3
     
43.2
 
Change in FV of MSR
   
12.9
     
(54.7
)
   
(91.5
)
Other income
   
0.8
     
0.6
     
1.4
 
Total  revenue, net
   
422.0
     
453.9
     
67.6
 
                         
Compensation and benefits
   
153.6
     
151.8
     
53.0
 
Loan expense
   
22.4
     
16.8
     
6.8
 
Loan servicing expense
   
8.1
     
8.0
     
8.0
 
Occupancy and equipment
   
8.6
     
7.7
     
5.3
 
General and administrative
   
22.2
     
24.1
     
7.2
 
Depreciation and amortization
   
2.8
     
1.4
     
1.5
 
Other expense
   
9.3
     
13.2
     
2.2
 
Total Expenses
   
227.0
     
223.0
     
84.0
 
                         
Pre-tax income
   
195.0
     
230.9
     
(16.4
)
Pre-tax margin
   
46
%
   
51
%
 
NM
 
Income tax expense (benefit)
   
50.1
     
49.2
     
(3.5
)
Income from equity method investment
   
4.2
     
2.8
     
2.3
 
Net income (loss)
 
$
149.0
   
$
184.5
   
$
(10.6
)
Net margin
   
35
%
   
41
%
 
NM
 
Basic and diluted earnings per share1:
                       
Basic net income (loss) per share
 
$
1.07
   
$
1.33
   
$
(0.08
)
Diluted total net income (loss) per share
   
1.06
     
1.31
     
(0.08
)
Basic weighted average common stock outstanding (mm)
   
138.9
     
138.9
      127.4  
Diluted weighted average common stock outstanding (mm)
   
139.7
     
140.3
      127.4  
                         
Adjusted income statement metrics2:
                       
Adjusted revenue
 
$
324.2
   
$
440.7
   
$
125.3
 
Adjusted net income
   
72.7
     
170.9
     
33.0
 
Adjusted net margin
   
22
%
   
39
%
   
26
%
 
(1) On January 21, 2021, Home Point Capital effected a stock split of its outstanding common stock pursuant to which the 100 outstanding shares were split into 1,388,601.11 shares each, for a total of 138,860,103 shares of outstanding common stock. As a result, all amounts relating to per share amounts have been retroactively adjusted to reflect this stock split.
(2) Non-GAAP measures. See non-GAAP reconciliation for a reconciliation of each measure to the nearest GAAP measure.
 

Consolidated Balance Sheets

($ in millions)
 
(Unaudited)
 
($mm)
 
As of
 
   
3/31/2021
   
12/31/2020
   
3/31/2020
 
                   
Assets:
                 
Cash and cash equivalents
 
$
219.3
   
$
165.2
   
$
35.8
 
Restricted cash
   
41.9
     
31.7
     
52.3
 
Cash and cash equivalents and Restricted cash
   
261.1
     
196.9
     
88.2
 
Mortgage loans held for sale (at fair value)
   
5,191.3
     
3,301.7
     
1,732.4
 
Mortgage servicing rights (at fair value)
   
1,156.4
     
748.4
     
475.9
 
Property and equipment, net
   
23.0
     
21.7
     
13.4
 
Accounts receivable, net
   
290.6
     
152.8
     
59.6
 
Derivative assets
   
186.9
     
334.3
     
281.2
 
Goodwill and intangibles
   
10.8
     
10.8
     
11.1
 
GNMA loans eligible for repurchase
   
1,446.4
     
2,524.2
     
500.4
 
Other assets
   
103.9
     
87.6
     
99.4
 
Total assets
 
$
8,670.4
   
$
7,378.6
   
$
3,261.6
 
                         
Liabilities and Shareholders’ Equity:
                       
Warehouse lines of credit
 
$
4,847.4
   
$
3,005.4
   
$
1,621.2
 
Term debt and other borrowings, net
   
888.4
     
454.0
     
429.2
 
Accounts payable and accrued expenses
   
196.5
     
167.5
     
127.8
 
GNMA loans eligible for repurchase
   
1,446.4
     
2,524.2
     
500.5
 
Other liabilities
   
509.2
     
299.9
     
119.2
 
Total liabilities
   
7,888.1
     
6,451.1
     
2,797.9
 
                         
Shareholders’ Equity:
                       
Common stock
   
-
     
-
     
-
 
Additional paid in capital
   
69.5
     
519.5
     
517.4
 
Retained earnings (accumulated deficit)
   
712.8
     
408.0
     
(53.7
)
Total shareholders’ equity
   
782.3
     
927.5
     
463.7
 
Total liabilities and shareholders’ equity
 
$
8,670.4
   
$
7,378.6
   
$
3,261.6
 


Volume and Margin Detail by Channel

($mm)
 
For the quarter ended
 
   
3/31/2021
   
12/31/2020
   
3/31/2020
 
                   
Funded Origination Volume by Channel
                 
Wholesale
 
$
19,668
   
$
14,130
   
$
4,947
 
Correspondent
   
8,243
     
8,576
     
2,926
 
Direct
   
1,515
     
1,249
     
293
 
Total Funded Origination Volume
 
$
29,426
   
$
23,956
   
$
8,165
 
                         
Fallout Adjusted Lock Volume by Channel
                       
Wholesale
 
$
16,140
   
$
13,705
   
$
6,963
 
Correspondent
   
6,673
     
6,608
     
3,228
 
Direct
   
740
     
839
     
335
 
Total Fallout Adjusted Lock Volume
 
$
23,553
   
$
21,151
   
$
10,526
 
                         
Gain on Sale Margin by Channel (bps)1
                       
Wholesale
   
152
     
234
     
187
 
Correspondent
   
33
     
31
     
66
 
Direct
   
362
     
399
     
435
 
Total Gain on Sale Margin by Channel
   
125
     
177
     
158
 
Other2
   
3
     
22
     
(60
)
Total Gain on Sale Margin (bps)
   
128
     
200
     
97
 

(1) Calculated as gain on sale, net, divided by Fallout Adjusted Lock Volume. We previously calculated gain on sale margin as gain on sale, net, divided by Total Funded Origination Volume. We believe that the calculation of gain on sale margin presented herein aligns more closely with when revenue is recognized under U.S. GAAP and we intend to use such presentation on a go-forward basis. For reference, we have also made available supplemental financial information, which includes the calculation of gain on sale margin as presented herein for each of the historical quarterly periods beginning with the quarter ended December 31, 2019, which is available free of charge on the Securities and Exchange Commission’s website at www.sec.gov and on our website at investors.homepoint.com.    

(2) Includes 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.


GAAP to Non-GAAP Reconciliations

RECONCILIATION OF ADJUSTED REVENUE TO TOTAL REVENUE, NET
 
($mm)
 
For the quarter ended
 
 
 
3/31/2021
   
12/31/2020
   
3/31/2020
 
 
                 
Total  revenue, net
 
$
422.0
   
$
455.0
   
$
67.6
 
Income from equity method investment
   
4.2
     
2.8
     
2.3
 
Change in fair value of MSR, net of hedge
   
(102.0
)
   
(17.2
)
   
55.4
 
Adjusted revenue
 
$
324.2
   
$
440.7
   
$
125.3
 
                         
RECONCILIATION OF ADJUSTED NET INCOME TO TOTAL NET INCOME (LOSS)
 
($mm)
 
For the quarter ended
 
 
 
3/31/2021
   
12/31/2020
   
3/31/2020
 
 
                       
Total net income (loss)
 
$
149.0
   
$
184.4
   
$
(10.5
)
Change in fair value of MSR, net of hedge
   
(102.0
)
   
(17.2
)
   
55.4
 
Income tax effect of change in fair value of MSR, net of hedge
   
25.7
     
3.7
     
(11.8
)
Adjusted net income
 
$
72.7
   
$
170.9
   
$
33.0
 
                         
RECONCILIATION OF ADJUSTED NET MARGIN TO NET MARGIN
         
($mm)
 
For the quarter ended
 
 
 
3/31/2021
   
12/31/2020
   
3/31/2020
 
                         
Total  revenue, net
 
$
422.0
   
$
455.1
   
$
67.6
 
Total net income (loss)
   
149.0
     
184.5
     
(10.5
)
Net margin
   
35
%
   
41
%
 
NM
 
                         
Adjusted revenue
 
$
324.2
   
$
440.7
   
$
125.3
 
Adjusted net income
   
72.7
     
170.9
     
33.0
 
Adjusted net margin
   
22
%
   
39
%
   
26
%


Non-GAAP Financial Measures
 
To provide investors with information in addition to our results as determined under Generally Accepted Accounting Principles (“GAAP”), we disclose Adjusted revenue, Adjusted net Income, and Adjusted net margin as “non-GAAP measures,” which management believes provide useful information to investors. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies.
 
We define Adjusted revenue as Total net revenue exclusive of the impact of the change in fair value of MSRs related to changes in valuation inputs and assumptions, net of MSRs hedge and adjusted for Income from equity method investment. 
 
We define Adjusted net income as Net income (loss) exclusive of the impact of the change in fair value of MSRs related to changes in valuation inputs and assumptions, net of MSRs hedge. 
 
We exclude changes in fair value of MSRs, net of hedge from each of Adjusted revenue and Adjusted net income (loss) as they add volatility and are not indicative of the Company’s operating performance or results of operation. This adjustment does not include changes in fair value of MSRs due to realization of cash flows, which remain in each of Adjusted revenue and Adjusted net income (loss). Realization of cash flows occurs when cash is collected as customers make scheduled payments, partial prepayments of principal, or pay their mortgage in full. 
 
We define Adjusted net margin by dividing Adjusted net income by Adjusted revenue.
 
We believe that the presentation of Adjusted revenue, Adjusted net Income, and Adjusted net margin provides useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted revenue, Adjusted net Income, and Adjusted net margin provide indicators of performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period, and management relies on these measures for planning and forecasting of future periods. The Company measures the performance of the segments primarily on a contribution margin basis. Additionally, these measures allow management to compare our results with those of other companies that have different financing and capital structures. However, these measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, or any other operating performance measure calculated in accordance with GAAP and may not be comparable to a similarly titled measure reported by other companies.
 
Investor Relations Contact:
 
Home Point Capital: Gary Stein investor@hpfc.com (734) 205-9680
 
Media Contacts:
 
Home Point Capital: Brad Pettiford
media@hpfc.com 
 
Haven Tower for Home Point Capital:
homepoint@haventower.com 
 



Exhibit 99.2

 First Quarter 2021 Earnings Presentation  May 6, 2021   
 

 Forward-Looking Statements  2  This presentation contains certain “forward-looking statements,” as that term is defined in the U.S. federal securities laws. In addition, from time to time, Home Point Capital Inc. (“we,” “our,” “us” or the “Company”) or its representatives have made, or may make, forward-looking statements orally or in writing. These forward-looking statements include, but are not limited to, statements other than statements of historical facts, including among others, statements relating to the Company’s future financial performance, the Company’s business prospects and strategy, anticipated financial position, liquidity and capital needs, the industry in which the Company operates 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. These forward-looking statements are not guarantees of future performance 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: the spread of the COVID-19 outbreak and severe disruptions in the U.S. and global economy and financial markets it has caused; 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; counterparty risk; the requirement to make servicing advances that can be subject to delays in recovery or may not be recoverable in certain circumstances; 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; competition in the industry in which we operate; our success and growth of our production and servicing activities and the dependence upon our ability to adapt to and implement technological changes; the effectiveness of our risk management efforts; our ability to detect misconduct and fraud; any cybersecurity risks, cyber incidents and technology failures; our vendor relationships; our failure to deal appropriately with various issues that may give rise to reputational risk, including legal and regulatory requirements; 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; 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; risks associated with the financial and restrictive covenants included in our financing agreements; risks associated with higher risk loans that we service; risks associated with derivative financial instruments; our ability to foreclose on our mortgage assets in a timely manner or at all; our ability to obtain and/or maintain licenses and other approvals in those jurisdictions where required to conduct our business; legislative and regulatory changes that impact the mortgage loan industry or housing market; and changes in regulations or the occurrence of other events that impact the business, operations or prospects of government agencies or such changes that increase the cost of doing business with such entities. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect the Company’s business, including those described in documents filed from time to time 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.  
 

 3   Record origination volume: $29 billion in the first quarter of 2021; $83 billion in LTM1 Q1 2021  First Quarter 2021 Highlights    Financial Highlights     First quarter net income of $149 million; LTM1 Q1 2021 net income of $767 million   Quarterly net revenue of $422 million; LTM1 Q1 2021 net revenue of $1.7 billion                               409,000 servicing customers at end of Q1 2021, up 60% from the end of Q1 2020   Servicing portfolio of $110 billion as of March 31, 2021, 90% increase year-over-year                                      Operational Highlights                 More than 6,600 Third Party Partners at quarter end, 63% increase year-over-year  (1) Last twelve months for the period ended March 31st. First quarter 2021 LTM information is derived from a numerical calculation of our fiscal year 2020 financial information plus first quarter 2021 financial information less first quarter 2020 financial information. Home Point Capital does not prepare or present separate LTM financial statements.  

 Net Income ($mm)  Performance Across the Platform in Q1 2021    4  Total Revenue, Net ($mm)  Funded Origination Volume ($bn)  Mortgage Servicing  3.0x  6.0x  Customers (‘000)  Portfolio UPB ($bn)  (1) Last twelve months for the period ended March 31st. First quarter 2021 LTM information is derived from a numerical calculation of our fiscal year 2020 financial information plus first quarter 2021 financial information less first quarter 2020 financial information. Home Point Capital does not prepare or present separate LTM financial statements. (2) Includes correspondent and broker partners combined.   Third Party Partners  # of Broker Partners  # of Third Party Partners2  1.6x  1  1  1  1  1  1 

   Driving Enhanced Transparency & Disclosure  5          Fallout adjusted lock volume by channel  Gain on sale margin by channel  Weighted average coupon rate on MSR portfolio  Financial supplement with six quarters of financial details  Incremental Disclosures Added to Quarterly Earnings Materials 

 First Quarter 2021 Financial Results    6  Total revenue, net in the first quarter of 2021 of $422 million increased more than six-fold year-over-year versus $68 million, driven by increased origination volumes, a higher gain on sale margin, and a fair market value (FMV) increase in the mortgage servicing rights (MSR) portfolio, primarily due to higher interest ratesFirst quarter 2021 revenue declined 7% versus the fourth quarter of 2020 primarily due to a lower gain on sale margin, partially offset by higher origination volumes and a FMV increase in the MSR portfolioFirst quarter 2021 net income of $149 million compared to a net loss of $11 million year-over-year, and declined 19% from $185 million in the fourth quarter of 2020 
 

 Volume Growth in Wholesale and Direct Channels    7  Wholesale Funded Volume ($bn)  Direct Funded Volume($bn)  Correspondent Funded Volume ($bn)  Wholesale funded volume of $19.7 billion in the first quarter of 2021, up 39% from the prior quarter and more than 4x year-over-yearGrowth in wholesale channel driven by differentiated business model focused on building broker partnerships, maintaining localized, in-market sales coverage, and delivering continuous process and technology enhancementsCorrespondent volume of $8.2 billion in the first quarter of 2021, down 4% from the fourth quarter of 2020 and up nearly 3x year-over-yearCorrespondent channel provides opportunistic source of low-cost customer acquisitionDirect volume of $1.5 billion in the first quarter of 2021, up 21% from the prior quarter and up 5x versus year-ago quarterDirect channel established in 2019 to focus on retention, and does not conflict with wholesale broker relationships 

 Origination Segment Highlights    8  First quarter origination segment revenue of $347 million tripled versus $115 million in the first quarter of 2020, and declined 24% from $456 million in the fourth quarter of 2020Gain on sale margin of 128 basis points in the first quarter of 2021 was up 32% versus 97 basis points in the year-ago quarter, and down 36% compared to the fourth quarter of 2020First quarter contribution margin of $189 million compared to $63 million year-over-year and $302 million in the fourth quarter of 2020Third party partner relationships reached 6,643 at the end of the first quarter of 2021, a 63% increase year-over-year, and an 11% increase versus the prior quarter 

 Servicing Segment Highlights    9  Servicing portfolio customers of 409,000 at the end of the first quarter of 2021 increased 60% versus the prior year and 14% compared to the fourth quarter of 2020Loan servicing fees of $70 million in the first quarter of 2021 grew 61% year-over-year and 26% from the fourth quarter of 2020Servicing segment primary margin was $52 million, up approximately 45% versus $36 million in the year-ago quarter and up 37% versus $38 million in the prior quarterServicing segment contribution margin was $65 million, versus $(56) million in the year-ago quarter and $(17) million in the prior quarter, driven primarily by a change in the fair market value of the MSR portfolioThe significant change in the fair value of MSRs due to mark-to-market (net of hedge) in the first quarter of 2021 was primarily driven by higher interest rates during the quarter 

 Balance Sheet Highlights    *  $443 million of available liquidity at the end of the first quarter of 2021, including $219 million of cash and cash equivalentsMSR balance of $1.2 billion at March 31, 2021, up nearly 2.5x year-over-year, and up 55% from the prior quarterTotal assets of $8.7 billion at March 31, 2021, up 166% from the end of the first quarter of 2020, and up 18% from the end of 2020Book value of $782 million at March 31, 2021 increased 69% year-over-year from March 31, 2020. Compared to the fourth quarter of 2020, book value at March 31, 2021 decreased 15% primarily due to a $270 million distribution in the first quarter of 2021. Ongoing focus on expanding MSR financing and warehouse linesTotal warehouse capacity of $6.4 billion at March 31, 2021, up from $4.2 billion at the end of 2020 
 Balance Sheet Highlights    10  $443 million of available liquidity at the end of the first quarter of 2021, including $219 million of cash and cash equivalentsMSR balance of $1.2 billion at March 31, 2021, up nearly 2.5x year-over-year, and up 55% from the prior quarterTotal assets of $8.7 billion at March 31, 2021, up 166% from the end of the first quarter of 2020, and up 18% from the end of 2020Book value increased 69% year-over-year to $782 million at March 31, 2021, and decreased 16% from the prior quarter Ongoing focus on expanding MSR financing and warehouse linesTotal warehouse capacity of $6.4 billion at March 31, 2021, up from $4.2 billion at the end of 2020 

 11  Appendix 
 

 Detailed Income Statement    12 
 

 Detailed Balance Sheet    13 

 Volume & Margin Detail by Channel    14 

 Non-GAAP to GAAP Reconciliations    15 

    To provide investors with information in addition to our results as determined under Generally Accepted Accounting Principles (“GAAP”), we disclose Adjusted revenue, Adjusted net Income, and Adjusted net margin as “non-GAAP measures,” which management believes provide useful information to investors. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies.We define Adjusted revenue as Total net revenue exclusive of the impact of the change in fair value of MSRs related to changes in valuation inputs and assumptions, net of MSRs hedge and adjusted for Income from equity method investment. We define Adjusted net income as Net income (loss) exclusive of the impact of the change in fair value of MSRs related to changes in valuation inputs and assumptions, net of MSRs hedge. We exclude changes in fair value of MSRs, net of hedge from each of Adjusted revenue and Adjusted net income (loss) as they add volatility and are not indicative of the Company’s operating performance or results of operation. This adjustment does not include changes in fair value of MSRs due to realization of cash flows, which remain in each of Adjusted revenue and Adjusted net income (loss). Realization of cash flows occurs when cash is collected as customers make scheduled payments, partial prepayments of principal, or pay their mortgage in full. We define Adjusted net margin by dividing Adjusted net income by Adjusted revenue. We believe that the presentation of Adjusted revenue, Adjusted net Income, and Adjusted net margin provides useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted revenue, Adjusted net Income, and Adjusted net margin provide indicators of performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period, and management relies on these measures for planning and forecasting of future periods. The Company measures the performance of the segments primarily on a contribution margin basis. Additionally, these measures allow management to compare our results with those of other companies that have different financing and capital structures. However, these measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, or any other operating performance measure calculated in accordance with GAAP and may not be comparable to a similarly titled measure reported by other companies.   16  Non-GAAP Financial Measures

 



Exhibit 99.3



Home Point Capital Inc.

First Quarter 2021 Earnings

Supplemental Financial Data


May 6, 2021




Non-GAAP Financial Measures

To provide investors with information in addition to our results as determined under Generally Accepted Accounting Principles (“GAAP”), we disclose Adjusted revenue, Adjusted net Income, and Adjusted net margin as “non-GAAP measures,” which management believes provide useful information to investors. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies.


We define Adjusted revenue as Total net revenue exclusive of the impact of the change in fair value of MSRs related to changes in valuation inputs and assumptions, net of MSRs hedge and adjusted for Income from equity method investment. 


We define Adjusted net income as Net income (loss) exclusive of the impact of the change in fair value of MSRs related to changes in valuation inputs and assumptions, net of MSRs hedge. 


We exclude changes in fair value of MSRs, net of hedge from each of Adjusted revenue and Adjusted net income (loss) as they add volatility and are not indicative of the Company’s operating performance or results of operation. This adjustment does not include changes in fair value of MSRs due to realization of cash flows, which remain in each of Adjusted revenue and Adjusted net income (loss). Realization of cash flows occurs when cash is collected as customers make scheduled payments, partial prepayments of principal, or pay their mortgage in full. 


We define Adjusted net margin by dividing Adjusted net income by Adjusted revenue. 


We believe that the presentation of Adjusted revenue, Adjusted net Income, and Adjusted net margin provides useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted revenue, Adjusted net Income, and Adjusted net margin provide indicators of performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period, and management relies on these measures for planning and forecasting of future periods. The Company measures the performance of the segments primarily on a contribution margin basis. Additionally, these measures allow management to compare our results with those of other companies that have different financing and capital structures. However, these measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, or any other operating performance measure calculated in accordance with GAAP and may not be comprable to a similarly titled measure reported by other companies.



Home Point Capital Inc.
Condensed Consolidated Statements of Income and Non-GAAP Measurements
(Unaudited)
($ amounts in thousands)

     
Q1 2021
     
Q4 2020
     
Q3 2020
     
Q2 2020
     
Q1 2020
     
Q4 2019
 
Revenue:
                                               
Gain on loans, net
 
$
301,228
   
$
422,158
   
$
503,344
   
$
356,871
   
$
102,563
   
$
64,006
 
Loan fee income
   
44,115
     
35,488
     
28,205
     
20,394
     
12,031
     
12,284
 
Interest income
   
25,577
     
17,811
     
14,709
     
11,812
     
15,849
     
16,700
 
Interest expense
   
(32,935
)
   
(21,734
)
   
(17,559
)
   
(14,373
)
   
(15,913
)
   
(16,008
)
Interest Income (expense), net
   
(7,358
)
   
(3,922
)
   
(2,850
)
   
(2,561
)
   
(65
)
   
692
 
Loan servicing fees
   
70,338
     
54,328
     
48,350
     
42,308
     
43,246
     
40,139
 
Change in fair value of mortgage servicing rights
   
12,848
     
(54,728
)
   
(66,749
)
   
(72,248
)
   
(91,527
)
   
(21,966
)
Other income
   
801
     
568
     
498
     
260
     
1,380
     
1,568
 
Total revenue, net
   
421,972
     
453,891
     
510,798
     
345,024
     
67,629
     
96,724
 
                                                 
Expenses:
                                               
Compensation and benefits
   
153,642
     
151,784
     
117,177
     
81,334
     
52,950
     
51,626
 
Loan expense
   
22,418
     
16,827
     
11,861
     
9,920
     
6,800
     
5,444
 
Loan servicing expense
   
8,093
     
8,044
     
6,481
     
8,308
     
7,953
     
5,143
 
Occupancy and equipment
   
8,555
     
7,732
     
7,391
     
5,543
     
5,320
     
4,201
 
General and administrative
   
22,244
     
24,086
     
12,073
     
9,078
     
7,222
     
6,720
 
Depreciation and amortization
   
2,761
     
1,369
     
1,236
     
1,427
     
1,499
     
1,523
 
Other expenses
   
9,336
     
13,177
     
7,093
     
2,755
     
2,238
     
1,529
 
Total expenses
   
227,049
     
223,019
     
163,312
     
118,366
     
83,982
     
76,187
 
                                                 
Income (Loss) before income tax
   
194,923
     
230,872
     
347,486
     
226,658
     
(16,353
)
   
20,537
 
Income tax expense (benefit)
   
50,117
     
49,248
     
93,294
     
59,501
     
(3,489
)
   
4,580
 
Income from equity method investments
   
4,163
     
2,844
     
9,870
     
1,864
     
2,316
     
110
 
Net income (loss)
 
$
148,969
   
$
184,468
   
$
264,062
   
$
169,022
   
$
(10,548
)
 
$
16,067
 



Home Point Capital Inc.
Origination Segment
(Unaudited)
($ amounts in thousands)

     
Q1 2021
     
Q4 2020
     
Q3 2020
     
Q2 2020
     
Q1 2020
     
Q4 2019
 
Revenue:
                                               
Gain on loans, net
 
$
301,228
   
$
422,198
   
$
503,344
   
$
356,871
   
$
102,563
   
$
64,794
 
Loan fee income
   
44,115
     
35,488
     
28,205
     
20,394
     
12,031
     
12,284
 
Loan servicing fees
   
(8
)
   
(1,517
)
   
236
     
(1,656
)
   
(562
)
   
(387
)
Interest Income (expense), net
   
1,288
     
(228
)
   
318
     
960
     
526
     
461
 
Total Origination segment revenue
   
346,623
     
455,941
     
532,103
     
376,569
     
114,558
     
77,152
 
                                                 
Directly attributable expense
   
157,817
     
153,635
     
107,356
     
72,130
     
51,830
     
48,073
 
                                                 
Contribution margin
 
$
188,806
   
$
302,306
   
$
424,747
   
$
304,439
   
$
62,728
   
$
29,079
 



Home Point Capital Inc.
Servicing Segment
(Unaudited)
($ amounts in thousands)

     
Q1 2021
     
Q4 2020
     
Q3 2020
     
Q2 2020
     
Q1 2020
     
Q4 2019
 
Revenue:
                                               
Gain on loans, net
 
$
-
   
$
(40
)
 
$
-
   
$
-
   
$
-
   
$
(788
)
Loan servicing fees
   
70,346
     
55,845
     
48,113
     
43,964
     
43,808
     
40,526
 
Interest Income, net
   
252
     
295
     
598
     
1,269
     
5,264
     
5,628
 
Other income
   
128
     
113
     
89
     
58
     
58
     
8
 
Total Servicing segment revenue
   
70,726
     
56,214
     
48,801
     
45,291
     
49,130
     
45,375
 
                                                 
Directly attributable expense
   
18,722
     
18,314
     
13,937
     
15,461
     
13,267
     
9,825
 
                                                 
Primary margin
   
52,004
     
37,899
     
34,864
     
29,830
     
35,864
     
35,549
 
                                                 
Change in MSR fair value: amortization
   
(89,170
)
   
(71,900
)
   
(54,932
)
   
(41,138
)
   
(36,153
)
   
(32,411
)
Change in MSR fair value: mark-to-market, net of hedge
   
102,108
     
17,173
     
(11,817
)
   
(31,111
)
   
(55,375
)
   
10,445
 
                                                 
Contribution margin
 
$
64,942
   
$
(16,828
)
 
$
(31,885
)
 
$
(42,418
)
 
$
(55,664
)
 
$
13,584
 


 
Home Point Capital Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
($ amounts in thousands)

     
Q1 2021
     
Q4 2020
     
Q3 2020
     
Q2 2020
     
Q1 2020
     
Q4 2019
 
Assets:
                                               
Cash and cash equivalents
 
$
219,285
   
$
165,230
   
$
271,587
   
$
127,395
   
$
35,844
   
$
30,630
 
Restricted cash
   
41,863
     
31,663
     
41,907
     
48,937
     
52,308
     
51,101
 
Cash and cash equivalents and Restricted cash
   
261,148
     
196,893
     
313,494
     
176,332
     
88,152
     
81,731
 
Mortgage loans held for sale (at fair value)
   
5,191,261
     
3,301,694
     
2,281,835
     
1,904,174
     
1,732,384
     
1,554,230
 
Mortgage servicing rights (at fair value)
   
1,156,357
     
748,457
     
583,263
     
499,782
     
475,870
     
575,035
 
Property and equipment, net
   
23,027
     
21,710
     
18,595
     
15,623
     
13,422
     
12,051
 
Accounts receivable, net
   
290,555
     
152,845
     
79,320
     
45,185
     
59,631
     
57,872
 
Derivative assets
   
186,909
     
334,323
     
284,359
     
244,058
     
281,237
     
40,544
 
Goodwill and intangibles
   
10,789
     
10,789
     
10,789
     
10,789
     
11,106
     
11,935
 
GNMA loans eligible for repurchase
   
1,446,495
     
2,524,240
     
2,919,881
     
2,351,249
     
500,460
     
499,207
 
Other assets
   
103,850
     
87,622
     
83,897
     
77,110
     
99,377
     
76,162
 
Total assets
 
$
8,670,391
   
$
7,378,573
   
$
6,575,434
   
$
5,324,301
   
$
3,261,639
   
$
2,908,767
 
                                                 
Liabilities and Shareholders’ Equity:
                                               
Liabilities:
                                               
Warehouse lines of credit
 
$
4,847,431
   
$
3,005,415
   
$
2,092,477
   
$
1,767,511
   
$
1,621,236
   
$
1,478,183
 
Term debt and other borrowings, net
   
888,437
     
454,022
     
374,090
     
348,901
     
429,226
     
424,958
 
Accounts payable and accrued expenses
   
196,542
     
167,532
     
313,887
     
132,839
     
127,823
     
39,739
 
GNMA loans eligible for repurchase
   
1,446,495
     
2,524,240
     
2,919,881
     
2,351,249
     
500,460
     
499,207
 
Other liabilities
   
509,189
     
299,890
     
132,333
     
90,746
     
119,110
     
56,368
 
Total liabilities
   
7,888,094
     
6,451,099
     
5,832,668
     
4,691,246
     
2,797,856
     
2,498,455
 
Shareholders’ Equity:
                                               
Common stock
   
-
     
-
     
-
     
-
     
-
     
-
 
Additional paid-in capital
   
69,451
     
519,510
     
363,354
     
517,702
     
517,449
     
454,861
 
Retained earnings (accumulated deficit)
   
712,846
     
407,964
     
379,411
     
115,353
     
(53,665
)
   
(44,549
)
Total shareholders’ equity
   
782,297
     
927,474
     
742,765
     
633,055
     
463,784
     
410,312
 
Total liabilities and shareholders’ equity
 
$
8,670,391
   
$
7,378,573
   
$
6,575,434
   
$
5,324,301
   
$
3,261,639
   
$
2,908,767
 




Home Point Capital Inc.
Key Performance Indicators (KPIs)

     
Q1 2021
       
Q4 2020
       
Q3 2020
       
Q2 2020
       
Q1 2020
       
Q4 2019
 
Origination Volume by Channel ($ thousands)
                                                         
Wholesale
 
$
19,668,264
     
$
14,130,341
     
$
10,982,207
     
$
7,844,172
     
$
4,946,545
     
$
4,541,560
 
Correspondent
   
8,243,380
       
8,575,794
       
6,280,149
       
3,490,965
       
2,925,706
       
3,538,842
 
Direct
   
1,514,287
       
1,249,459
       
851,980
       
431,714
       
292,812
       
196,020
 
Total Originations
 
$
29,425,931
     
$
23,955,593
     
$
18,114,336
     
$
11,766,851
     
$
8,165,063
     
$
8,276,422
 
                                                           
Fallout Adjusted Lock Volume by Channel ($ thousands)
                                                         
Wholesale
 
$
16,139,923
     
$
13,704,506
     
$
11,242,589
     
$
8,170,570
     
$
6,962,668
     
$
3,634,264
 
Correspondent
   
6,673,059
       
6,607,574
       
6,547,672
       
4,694,408
       
3,227,697
       
3,324,317
 
Direct
   
739,796
       
838,727
       
799,514
       
591,015
       
335,386
       
136,219
 
Total Fallout Adjusted Lock Volume
 
$
23,552,778
     
$
21,150,807
     
$
18,589,775
     
$
13,455,993
     
$
10,525,750
     
$
7,094,799
 
                                                           
Gain on Sale Margin ($ thousands)
                                                         
Wholesale
 
$
245,050
     
$
321,105
     
$
359,512
     
$
252,534
     
$
130,171
     
$
42,402
 
Correspondent
   
22,162
       
20,207
       
40,431
       
50,163
       
21,412
       
13,489
 
Direct
   
26,758
       
33,451
       
33,564
       
25,943
       
14,579
       
6,872
 
Total Gain on Sale Margin by Channel
   
293,971
       
374,764
       
433,507
       
328,641
       
166,162
       
62,762
 
Other1
   
7,272
       
47,394
       
69,838
       
28,230
       
(63,598
)
     
1,244
 
Total Gain on Sale Margin
 
$
301,243
     
$
422,158
     
$
503,344
     
$
356,871
     
$
102,563
     
$
64,006
 
                                                           
Gain on Sale Margin (bps)2
                                                         
Wholesale
   
152
       
234
       
320
       
309
       
187
       
117
 
Correspondent
   
33
       
31
       
62
       
107
       
66
       
41
 
Direct
   
362
       
399
       
420
       
439
       
435
       
504
 
Total Gain on Sale Margin by Channel
   
125
       
177
       
233
       
244
       
158
       
88
 
Other1
   
3
       
22
       
38
       
21
       
(60
)
     
2
 
Total Gain on Sale Margin
   
128
       
200
       
271
       
265
       
97
       
90
 
                                                           
Market Share for the period ended3
                                                         
Overall share of origination market
   
2.3
%4
     
1.9
%
     
1.6
%
     
1.2
%
     
1.2
%
     
1.1
%
Share of wholesale channel
 
NA4
       
8.2
%
     
7.3
%
     
6.2
%
     
4.7
%
     
4.5
%
                                                           
Origination Volume by Purpose
                                                         
Purchase
   
20.4
%
     
29.5
%
     
29.0
%
     
30.7
%
     
39.3
%
     
44.3
%
Refinance
   
79.6
%
     
70.5
%
     
71.0
%
     
69.3
%
     
60.7
%
     
55.7
%