Delaware
|
001-39964
|
90-1116426
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
☐
|
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))
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
||
Common Stock, par value $0.0000000072 per share
|
HMPT
|
The Nasdaq Stock Market LLC
|
Item 2.02 |
Item 9.01 |
Financial Statements and Exhibits.
|
(d) |
Exhibits.
|
Exhibit No.
|
Description
|
|
Earnings release dated March 11, 2021.
|
||
Investor presentation materials dated March 11, 2021.
|
HOME POINT CAPITAL INC.
|
||
Date: March 11, 2021
|
||
By:
|
/s/ Mark E. Elbaum
|
|
Name:
|
Mark E. Elbaum
|
|
Title:
|
Chief Financial Officer
|
($mm, except per share values)
|
For the quarter ended
|
For the year ended 12/31
|
||||||||||||||||||
12/31/2020
|
9/30/2020
|
12/31/2019
|
2020
|
2019
|
||||||||||||||||
Total Originations
|
$
|
23,956
|
$
|
18,120
|
$
|
8,276
|
$
|
62,001
|
$
|
22,268
|
||||||||||
Gain on sale margin (bps)1
|
176
|
278
|
77
|
223
|
90
|
|||||||||||||||
Servicing portfolio - Units
|
359,323
|
307,236
|
236,362
|
359,323
|
236,362
|
|||||||||||||||
Servicing portfolio - UPB
|
$
|
91,483
|
$
|
73,951
|
$
|
52,601
|
$
|
91,483
|
$
|
52,601
|
||||||||||
Total revenue, net
|
$
|
455.1
|
$
|
510.4
|
$
|
96.8
|
$
|
1,377.2
|
$
|
199.7
|
||||||||||
Total expenses
|
$
|
224.2
|
$
|
163.0
|
$
|
76.2
|
$
|
588.6
|
$
|
241.1
|
||||||||||
Net income (loss)
|
$
|
184.5
|
$
|
264.0
|
$
|
16.1
|
$
|
607.0
|
$
|
(29.2
|
)
|
|||||||||
Net income (loss) per share2
|
$
|
1.33
|
$
|
1.90
|
$
|
0.12
|
$
|
4.45
|
$
|
(0.21
|
)
|
• |
Record quarterly origination volume of $24 billion, nearly tripling volume from the fourth quarter of 2019, and up 32% versus the third quarter of 2020
|
• |
Market share of 8.2% in the wholesale channel, up from 4.5% in the fourth quarter of 2019, and up from 7.3% in the third quarter of 20201
|
• |
Total revenue, net of $455 million, a 370% increase from the year-ago quarter, and an 11% decline from the third quarter of 2020
|
• |
Net income of $185 million (or $1.33 per share), up from $16 million (or $0.12 per share) year-over-year, and down from $264 million (or $1.90 per share) in the third quarter of 2020
|
• |
Servicing customers of 359,323, up 52% from year-end 2019, and up 17% from the third quarter of 2020
|
• |
Servicing portfolio UPB of $91.5 billion, up 75% from year-end 2019, and up 24% from the third quarter of 2020
|
1
|
Source: Inside Mortgage Finance.
|
• |
Total origination volume of $62 billion, up 178% from 2019 volume of $22 billion
|
• |
Wholesale channel market share of 7.0% in 2020, double from market share of 3.5% in 20192
|
• |
Total revenue, net of $1.4 billion, a nearly seven-fold increase from net revenue of $200 million in 2019
|
• |
Net income of $607 million (or $4.45 per share), compared to a net loss of $29 million (or $(0.21) per share) in 2019
|
2
|
Source: Inside Mortgage Finance.
|
($mm)
|
For the quarter ended
|
For the year ended 12/31
|
||||||||||||||||||
12/31/2020
|
9/30/2020
|
12/31/2019
|
2020
|
2019
|
||||||||||||||||
Gain on loans, net
|
$
|
422.2
|
$
|
503.3
|
$
|
64.8
|
$
|
1,385.0
|
$
|
200.6
|
||||||||||
Loan fee income
|
35.5
|
28.2
|
12.3
|
96.1
|
32.1
|
|||||||||||||||
Loan servicing fees
|
(1.5
|
)
|
0.2
|
(0.4
|
)
|
(3.5
|
)
|
(0.8
|
)
|
|||||||||||
Interest income, net
|
(0.2
|
)
|
0.3
|
0.5
|
1.6
|
2.7
|
||||||||||||||
Total Origination segment revenue
|
456.0
|
532.0
|
77.2
|
1,479.2
|
234.6
|
|||||||||||||||
Directly attributable expense
|
(153.6
|
)
|
(107.4
|
)
|
(48.1
|
)
|
(385.0
|
)
|
(145.1
|
)
|
||||||||||
Contribution margin
|
$
|
302.4
|
$
|
424.6
|
$
|
29.1
|
$
|
1,094.2
|
$
|
89.5
|
||||||||||
Key Performance Indicators
|
||||||||||||||||||||
Origination Volume by Channel
|
||||||||||||||||||||
Wholesale
|
$
|
14,130
|
$
|
10,984
|
$
|
4,542
|
$
|
37,902
|
$
|
11,565
|
||||||||||
Correspondent
|
8,576
|
6,281
|
3,539
|
21,273
|
10,215
|
|||||||||||||||
Direct
|
1,249
|
855
|
196
|
2,826
|
487
|
|||||||||||||||
Total Originations
|
$
|
23,955
|
$
|
18,120
|
$
|
8,277
|
$
|
62,001
|
$
|
22,267
|
||||||||||
Gain on sale margin (bps)1
|
176
|
278
|
77
|
223
|
90
|
|||||||||||||||
Market Share for the period ended2:
|
||||||||||||||||||||
Overall share of origination market
|
1.9
|
%
|
1.6
|
%
|
1.1
|
%
|
1.5
|
%
|
1.0
|
%
|
||||||||||
Share of wholesale channel
|
8.2
|
%
|
7.3
|
%
|
4.5
|
%
|
7.0
|
%
|
3.5
|
%
|
||||||||||
Origination Volume by Purpose:
|
||||||||||||||||||||
Purchase
|
29.5
|
%
|
29.0
|
%
|
44.3
|
%
|
30.9
|
%
|
|
50.6
|
%
|
|||||||||
Refinance
|
70.5
|
%
|
71.0
|
%
|
55.7
|
%
|
69.1
|
%
|
49.4
|
%
|
||||||||||
Third Party Partners:
|
||||||||||||||||||||
Number of Broker Partners
|
5,372
|
4,921
|
3,085
|
5,372
|
3,085
|
|||||||||||||||
Number of Correspondent Partners
|
604
|
594
|
537
|
604
|
537
|
($mm)
|
For the quarter ended
|
For the year ended 12/31
|
||||||||||||||||||
12/31/2020
|
9/30/2020
|
12/31/2019
|
2020
|
2019
|
||||||||||||||||
Gain on loans, net
|
$
|
-
|
$
|
-
|
$
|
(0.8
|
)
|
$
|
-
|
$
|
(1.1
|
)
|
||||||||
Loan servicing fees
|
55.8
|
48.1
|
40.5
|
191.7
|
145.1
|
|||||||||||||||
Change in fair value of MRSs
|
(54.7
|
)
|
(66.7
|
)
|
(22.0
|
)
|
(285.3
|
)
|
(173.1
|
)
|
||||||||||
Interest income, net
|
0.3
|
0.6
|
5.6
|
7.4
|
18.9
|
|||||||||||||||
Other income
|
0.1
|
0.1
|
-
|
0.3
|
-
|
|||||||||||||||
Total Servicing segment revenue
|
1.5
|
(17.9
|
)
|
23.3
|
(85.9
|
)
|
(10.2
|
)
|
||||||||||||
Change in MSR due to val., net of hedge
|
(17.2
|
)
|
11.8
|
(10.4
|
)
|
81.1
|
74.5
|
|||||||||||||
Directly attributable expense
|
(18.3
|
)
|
(13.9
|
)
|
(9.8
|
)
|
(61.0
|
)
|
(39.6
|
)
|
||||||||||
Contribution margin
|
$
|
(34.0
|
)
|
$
|
(20.0
|
)
|
$
|
3.1
|
$
|
(65.8
|
)
|
$
|
24.7
|
|||||||
Key Performance Indicators
|
||||||||||||||||||||
Mortgage Servicing
|
||||||||||||||||||||
MSR servicing portfolio - UPB
|
$
|
91,483
|
$
|
73,951
|
$
|
52,601
|
$
|
91,483
|
$
|
52,601
|
||||||||||
Servicing portfolio - Units
|
359,323
|
307,236
|
236,362
|
359,323
|
236,362
|
|||||||||||||||
60+ days delinquent, incl. forbearance
|
4.4
|
%
|
6.6
|
%
|
1.7
|
%
|
4.4
|
%
|
1.7
|
%
|
||||||||||
60+ days delinquent, excl. forbearance
|
1.5
|
%
|
2.6
|
%
|
NA
|
1.5
|
%
|
NA
|
||||||||||||
MSR multiple
|
2.9
|
x
|
2.6
|
x
|
3.4
|
x
|
2.9
|
x
|
3.4
|
x
|
($mm)
|
As of
|
|||||||||||
12/31/2020
|
9/30/2020
|
12/31/2019
|
||||||||||
Cash and cash equivalents
|
$
|
165.2
|
$
|
271.5
|
$
|
30.6
|
||||||
Mortgage servicing rights (at fair value)
|
748.5
|
583.3
|
575.0
|
|||||||||
Warehouse lines of credit
|
3,005.4
|
2,092.5
|
1,478.2
|
|||||||||
Term debt and other borrowings, net
|
454.0
|
374.1
|
425.0
|
|||||||||
Total shareholders’ equity
|
927.5
|
742.7
|
410.3
|
($mm, except per share values)
|
For the quarter ended
|
For the year ended 12/31
|
||||||||||||||||||
12/31/2020
|
9/30/2020
|
12/31/2019
|
2020
|
2019
|
||||||||||||||||
Gain on loans, net
|
$
|
422.2
|
$
|
503.3
|
$
|
64.0
|
$
|
1,384.9
|
$
|
199.5
|
||||||||||
Loan fee income
|
35.5
|
28.2
|
12.3
|
96.1
|
32.1
|
|||||||||||||||
Interest income
|
17.8
|
14.7
|
16.7
|
60.2
|
51.8
|
|||||||||||||||
Interest expense
|
(21.7
|
)
|
(17.6
|
)
|
(16.0
|
)
|
(69.6
|
)
|
(57.9
|
)
|
||||||||||
Interest income (expense), net
|
(3.9
|
)
|
(2.9
|
)
|
0.7
|
(9.4
|
)
|
(6.1
|
)
|
|||||||||||
Loan servicing fees
|
54.3
|
48.4
|
40.2
|
188.2
|
144.2
|
|||||||||||||||
Change in FV of MSR
|
(54.7
|
)
|
(66.7
|
)
|
(22.0
|
)
|
(285.3
|
)
|
(173.1
|
)
|
||||||||||
Other income
|
1.7
|
0.1
|
1.6
|
2.7
|
3.2
|
|||||||||||||||
Total revenue, net
|
455.1
|
510.4
|
96.8
|
1,377.2
|
199.8
|
|||||||||||||||
Compensation and benefits
|
151.8
|
117.2
|
51.6
|
403.2
|
156.2
|
|||||||||||||||
Loan expense
|
16.8
|
11.9
|
5.4
|
45.4
|
15.6
|
|||||||||||||||
Loan servicing expense
|
8.0
|
6.5
|
5.1
|
30.8
|
20.9
|
|||||||||||||||
Occupancy and equipment
|
9.0
|
7.0
|
4.2
|
26.0
|
16.8
|
|||||||||||||||
General and administrative
|
24.1
|
12.1
|
6.7
|
52.5
|
21.4
|
|||||||||||||||
Depreciation and amortization
|
1.3
|
1.3
|
1.5
|
5.5
|
5.9
|
|||||||||||||||
Other expense
|
13.2
|
7.1
|
1.5
|
25.3
|
4.3
|
|||||||||||||||
Total Expenses
|
224.2
|
163.1
|
76.0
|
588.6
|
241.1
|
|||||||||||||||
Pre-tax income
|
230.9
|
347.3
|
20.8
|
788.6
|
(41.3
|
)
|
||||||||||||||
Pre-tax margin
|
51
|
%
|
68
|
%
|
21
|
%
|
57
|
%
|
NM
|
|||||||||||
Income tax expense (benefit)
|
49.2
|
93.3
|
4.6
|
198.6
|
(9.5
|
)
|
||||||||||||||
Income from equity method investment
|
2.8
|
9.9
|
0.1
|
16.9
|
2.7
|
|||||||||||||||
Net income (loss)
|
$
|
184.5
|
$
|
263.9
|
$
|
16.3
|
$
|
607.0
|
$
|
(29.1
|
)
|
|||||||||
Net margin
|
41
|
%
|
52
|
%
|
17
|
%
|
44
|
%
|
NM
|
|||||||||||
Basic and diluted earnings per share1:
|
||||||||||||||||||||
Basic net income (loss) per share
|
$
|
1.33
|
$
|
1.90
|
$
|
0.12
|
$
|
4.45
|
$
|
(0.21
|
)
|
|||||||||
Diluted total net income (loss) per share
|
1.31
|
1.89
|
0.12
|
4.42
|
(0.21
|
)
|
||||||||||||||
Basic weighted average common stock outstanding (mm)
|
138.9
|
138.8
|
138.9
|
136.4
|
138.9
|
|||||||||||||||
Diluted weighted average common stock outstanding (mm)
|
140.3
|
139.7
|
138.9
|
137.2
|
138.9
|
|||||||||||||||
Adjusted income statement metrics2:
|
||||||||||||||||||||
Adjusted revenue
|
$
|
440.6
|
$
|
532.1
|
$
|
86.6
|
$
|
1,475.2
|
$
|
276.9
|
||||||||||
Adjusted net income
|
170.9
|
272.7
|
8.0
|
667.7
|
28.2
|
|||||||||||||||
Adjusted net margin
|
39
|
%
|
51
|
%
|
9
|
%
|
45
|
%
|
10
|
%
|
($mm)
|
As of
|
|||||||||||
12/31/2020
|
9/30/2020
|
12/31/2019
|
||||||||||
Assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
165.2
|
$
|
271.5
|
$
|
30.6
|
||||||
Restricted cash
|
31.7
|
41.9
|
51.1
|
|||||||||
Cash and cash equivalents and Resticted cash
|
196.9
|
313.4
|
81.7
|
|||||||||
Mortgage loans held for sale (at fair value)
|
3,301.7
|
2,281.8
|
1,554.2
|
|||||||||
Mortgage servicing rights (at fair value)
|
748.5
|
583.3
|
575.0
|
|||||||||
Property and equipment, net
|
21.7
|
18.6
|
12.1
|
|||||||||
Accounts receivable, net
|
152.8
|
79.3
|
57.9
|
|||||||||
Derivative assets
|
334.3
|
314.8
|
40.5
|
|||||||||
Goodwill and intangibles
|
10.8
|
11.1
|
11.9
|
|||||||||
GNMA loans eligible for repurchase
|
2,524.2
|
2,919.9
|
499.2
|
|||||||||
Other assets
|
87.6
|
65.7
|
76.2
|
|||||||||
Total assets
|
$
|
7,378.6
|
$
|
6,587.9
|
$
|
2,908.8
|
||||||
Liabilities and Shareholders’ Equity:
|
||||||||||||
Warehouse lines of credit
|
$
|
3,005.4
|
$
|
2,092.5
|
$
|
1,478.2
|
||||||
Term debt and other borrowings, net
|
454.0
|
374.1
|
425.0
|
|||||||||
Accounts payable and accrued expenses
|
167.5
|
269.0
|
39.7
|
|||||||||
GNMA loans eligible for repurchase
|
2,524.2
|
2,919.9
|
499.2
|
|||||||||
Other liabilities
|
299.9
|
189.7
|
56.4
|
|||||||||
Total liabilities
|
6,451.1
|
5,845.2
|
2,498.5
|
|||||||||
Shareholders’ Equity:
|
||||||||||||
Common stock
|
-
|
-
|
-
|
|||||||||
Additional paid in capital
|
519.5
|
519.2
|
454.9
|
|||||||||
Retained earnings (accumulated deficit)
|
408.0
|
223.6
|
(44.5
|
)
|
||||||||
Total shareholders’ equity
|
927.5
|
742.7
|
410.3
|
|||||||||
Total liabilities and shareholders’ equity
|
$
|
7,378.6
|
$
|
6,587.9
|
$
|
2,908.8
|
($mm)
|
For the quarter ended
|
For the year ended 12/31
|
||||||||||||||||||
12/31/2020
|
9/30/2020
|
12/31/2019
|
2020
|
2019
|
||||||||||||||||
Total revenue, net
|
$
|
455.1
|
$
|
510.4
|
$
|
96.8
|
$
|
1,377.2
|
$
|
199.7
|
||||||||||
Income from equity method investment
|
2.8
|
9.9
|
0.1
|
16.9
|
2.7
|
|||||||||||||||
Change in fair value of MSR, net of hedge
|
(17.2
|
)
|
11.8
|
(10.4
|
)
|
81.1
|
74.5
|
|||||||||||||
Adjusted revenue
|
$
|
440.6
|
$
|
532.1
|
$
|
86.6
|
$
|
1,475.2
|
$
|
276.9
|
($mm)
|
For the quarter ended
|
For the year ended 12/31
|
||||||||||||||||||
12/31/2020
|
9/30/2020
|
12/31/2019
|
2020
|
2019
|
||||||||||||||||
Total net income (loss)
|
$
|
184.5
|
$
|
264.0
|
$
|
16.1
|
$
|
607.0
|
$
|
(29.2
|
)
|
|||||||||
Change in fair value of MSR, net of hedge
|
(17.2
|
)
|
11.8
|
(10.4
|
)
|
81.1
|
74.5
|
|||||||||||||
Income tax effect of change in fair value of MSR, net of hedge
|
3.6
|
(3.1
|
)
|
2.3
|
(20.4
|
)
|
(17.1
|
)
|
||||||||||||
Adjusted net income (loss)
|
$
|
170.9
|
$
|
272.7
|
$
|
8.0
|
$
|
667.7
|
$
|
28.2
|
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