0001558370-21-002945 | 10-K | XBRL Viewer | Impac Mortgage Holdings INC

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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2020	Mar. 05, 2021	Jun. 30, 2020
Document Information [Line Items]
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Entity Registrant Name	IMPAC MORTGAGE HOLDINGS INC
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 18.3
Entity Common Stock, Shares Outstanding		21,327,684
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Central Index Key	0001000298
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	IMH
Security Exchange Name	NYSEAMER
Preferred Stock Purchase Rights
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock Purchase Rights
Trading Symbol	IMH
Security Exchange Name	NYSEAMER

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 54,150	$ 24,666
Restricted cash	5,602	12,466
Mortgage loans held-for-sale	164,422	782,143
Mortgage servicing rights	339	41,470
Securitized mortgage trust assets	2,103,269	2,634,746
Other assets	41,524	50,788
Total assets	2,369,306	3,546,279
LIABILITIES
Warehouse borrowings	151,932	701,563
Convertible notes, net	20,000	24,996
Long-term debt	44,413	45,434
Securitized mortgage trust liabilities	2,086,557	2,619,210
Other liabilities	50,753	50,839
Total liabilities	2,353,655	3,442,042
Commitments and contingencies (See Note 11)
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value; 200,000,000 shares authorized; 21,238,191 and 21,255,426 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively	212	212
Additional paid-in capital	1,237,102	1,236,237
Accumulated other comprehensive earnings, net of tax	24,766	24,786
Total accumulated deficit:
Cumulative dividends declared	(822,520)	(822,520)
Accumulated deficit	(423,930)	(334,499)
Total accumulated deficit	(1,246,450)	(1,157,019)
Total stockholders’ equity	15,651	104,237
Total liabilities and stockholders’ equity	2,369,306	3,546,279
Series A-1 junior participating preferred stock
STOCKHOLDERS’ EQUITY
Preferred stock
Series B 9.375% redeemable preferred stock
STOCKHOLDERS’ EQUITY
Preferred stock	7	7
Series C 9.125% redeemable preferred stock
STOCKHOLDERS’ EQUITY
Preferred stock	$ 14	$ 14

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	21,238,191	21,255,426
Common stock, shares outstanding	21,238,191	21,255,426
Series A-1 junior participating preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B 9.375% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.375%	9.375%
Preferred stock, liquidation value (in dollars)	$ 34,190	$ 34,190
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	665,592	665,592
Preferred stock, shares outstanding	665,592	665,592
Series C 9.125% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.125%	9.125%
Preferred stock, liquidation value (in dollars)	$ 35,127	$ 35,127
Preferred stock, shares authorized	5,500,000	5,500,000
Preferred stock, shares issued	1,405,086	1,405,086
Preferred stock, shares outstanding	1,405,086	1,405,086

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Gain (loss) on sale of loans, net	$ 14,004	$ 98,830
Servicing (expenses) fees, net	3,603	12,943
Real estate services fees, net	1,312	3,287
Loss on mortgage servicing rights, net	(28,509)	(24,911)
Other	1,498	479
Total revenues, net	(8,092)	90,628
Expenses:
Personnel expense	52,880	65,191
General, administrative and other	24,534	22,410
Business promotion	3,859	9,319
Total expenses	81,273	96,920
Operating earnings (loss)	(89,365)	(6,292)
Other income (expense):
Interest income	118,908	165,198
Interest expense	(113,771)	(155,868)
Change in fair value of long-term debt	1,899	(1,429)
Change in fair value of net trust assets, including trust REO losses	(5,688)	(9,831)
Total other income (expense), net	1,348	(1,930)
Net earnings (loss) before income taxes	(88,017)	(8,222)
Income tax expense (benefit)	133	(245)
Net earnings (loss)	(88,150)	(7,977)
Other comprehensive earnings (loss):
Change in fair value of instrument specific credit risk of long-term debt	(20)	909
Total comprehensive earnings (loss)	$ (88,170)	$ (7,068)
Net earnings (loss) per common share:
Basic (in dollars per share)	$ (4.15)	$ (0.38)
Diluted (in dollars per share)	$ (4.15)	$ (0.38)

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-In Capital	Cumulative Dividends Declared	Accumulated Deficit	Accumulated Other Comprehensive Earnings, net of tax	Total
Balance at Dec. 31, 2018	$ 21	$ 211	$ 1,235,108	$ (822,520)	$ (326,522)	$ 23,877	$ 110,175
Balance (in shares) at Dec. 31, 2018	2,070,678	21,117,006
Increase (Decrease) in Stockholders' Equity
Proceeds from exercise of stock options		$ 1	344				345
Proceeds from exercise of stock options (in shares)		103,351
Issuance of restricted stock			125				125
Issuance of restricted stock (in shares)		35,069
Stock based compensation			660				660
Other comprehensive (loss) earnings						909	909
Net earnings (loss)					(7,977)		(7,977)
Balance at Dec. 31, 2019	$ 21	$ 212	1,236,237	(822,520)	(334,499)	24,786	104,237
Balance (in shares) at Dec. 31, 2019	2,070,678	21,255,426
Increase (Decrease) in Stockholders' Equity
Retirement of restricted stock			(125)				(125)
Retirement of restricted stock (in shares)		(35,069)
Proceeds from exercise of stock options			46				46
Proceeds from exercise of stock options (in shares)		9,500
Issuance of restricted stock (in shares)		8,334
Stock based compensation			702				702
Issuance of warrants in connection with debt financing			242				242
Other comprehensive (loss) earnings						(20)	(20)
Consolidation of corporate-owned life insurance trusts					(1,281)		(1,281)
Net earnings (loss)					(88,150)		(88,150)
Balance at Dec. 31, 2020	$ 21	$ 212	$ 1,237,102	$ (822,520)	$ (423,930)	$ 24,766	$ 15,651
Balance (in shares) at Dec. 31, 2020	2,070,678	21,238,191

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (88,150)	$ (7,977)
(Loss) gain on sale of mortgage servicing rights	6,547	(860)
Change in fair value of mortgage servicing rights	21,962	25,771
Gain on sale of mortgage-backed securities		(136)
Gain on sale of mortgage loans	(35,193)	(84,035)
Change in fair value of mortgage loans held-for-sale	15,955	(15,810)
Change in fair value of derivatives lending, net	7	(4,472)
Change in provision for repurchases	5,227	5,487
Origination of mortgage loans held-for-sale	(2,746,893)	(4,548,750)
Sale and principal reduction on mortgage loans held-for-sale	3,381,758	4,217,562
(Gain) loss from trust REO	(7,393)	6,434
Change in fair value of net trust assets, excluding trust REO	13,081	3,397
Change in fair value of long-term debt	(1,899)	1,429
Accretion of interest income and expense	65,524	27,272
Amortization of intangible and other assets		572
Amortization of debt issuance costs and discount on note payable	4	17
Stock-based compensation	702	660
Accretion of interest expense on corporate debt	242
Net change in other assets	18,289	8,400
Net change in other liabilities	(15,918)	(12,503)
Net cash provided by (used in) operating activities	633,852	(377,542)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net change in securitized mortgage collateral	425,152	565,600
Proceeds from the sale of mortgage servicing rights	14,716
Investments in corporate-owned life insurance	(1,183)
Purchase of premises and equipment	(402)	(862)
Purchase of mortgage-backed securities		(10,346)
Proceeds from the sale of mortgage-backed securities		11,502
Proceeds from the sale of trust REO	21,977	23,804
Net cash provided by investing activities	460,260	589,698
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of MSR financing	(15,448)	(8,000)
Borrowings under MSR financing	15,448	8,000
Repayment of warehouse borrowings	(3,200,268)	(3,746,311)
Borrowings under warehouse agreements	2,650,637	4,163,737
Repayment of securitized mortgage borrowings	(518,594)	(623,028)
Repayment of convertible notes	(5,000)
Net change in liabilities related to corporate owned life insurance	1,812
Principal payments on capital lease		(81)
Retirement of restricted stock	(125)
Issuance of restricted stock		125
Proceeds from exercise of stock options	46	345
Net cash (used in) provided by financing activities	(1,071,492)	(205,213)
Net change in cash, cash equivalents and restricted cash	22,620	6,943
Cash, cash equivalents and restricted cash at beginning of year	37,132	30,189
Cash, cash equivalents and restricted cash at end of period	59,752	37,132
SUPPLEMENTARY INFORMATION:
Interest paid	50,647	116,807
Taxes (paid) refunded, net	370	(345)
NON-CASH TRANSACTIONS:
Transfer of securitized mortgage collateral from trust REO	10,922	27,186
Mortgage servicing rights retained from issuance of mortgage backed securities and loan sales	2,094	2,491
Recognition of corporate-owned life insurance cash surrender value (included in Other assets)	9,476
Recognition of corporate owned life insurance trusts (included in Other liabilities)	10,757
Issuance of warrants	242
Recognition of operating lease right of use assets (net of $3.8 million of deferred rent)	125	20,538
Recognition of operating lease liabilities	$ 125	$ 24,291

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions	Dec. 31, 2020 USD ($)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Deferred rent liability	$ 3.8

Summary of Business and Financial Statement Presentation including Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Summary of Business and Financial Statement Presentation including Significant Accounting Policies
Summary of Business and Financial Statement Presentation including Significant Accounting Policies	IMPAC MORTGAGE HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands, except per share data or as otherwise indicated) Note 1.—Summary of Business and Financial Statement Presentation including Significant Accounting Policies Business Summary Impac Mortgage Holdings, Inc. (the Company or IMH) is a financial services company incorporated in Maryland with the following direct and indirect wholly-owned operating subsidiaries: Integrated Real Estate Service Corporation (IRES), Impac Mortgage Corp. (IMC), IMH Assets Corp. (IMH Assets), Impac Funding Corporation (IFC) and Copperfield Capital Corporation (CCC). CCC was created in the second quarter of 2020 to, among other activities, assist with managing mortgage loans held-for-sale, and provide origination and servicing solutions focusing on loss mitigation strategies, including loan modifications and restructurings to assist borrowers. The Company’s operations include the mortgage lending operations and real estate services conducted by IRES, IMC and CCC and the long-term mortgage portfolio (residual interests in securitizations reflected as securitized mortgage trust assets and liabilities in the consolidated balance sheets) conducted by IMH. IMC’s mortgage lending operations include the activities of its division, CashCall Mortgage. Financial Statement Presentation Basis of Presentation The accompanying consolidated financial statements of IMH and its subsidiaries (as defined above) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All significant inter‑company balances and transactions have been eliminated in consolidation. In addition, certain immaterial amounts in the prior periods’ consolidated financial statements have been reclassified to conform to the current year presentation. Management has made a number of material estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Additionally, other items affected by such estimates and assumptions include the valuation of trust assets and trust liabilities, contingencies, the estimated obligation of repurchase liabilities related to sold loans, the valuation of long-term debt, mortgage servicing rights (MSRs), mortgage loans held-for-sale (LHFS) and derivative instruments, including interest rate lock commitments (IRLCs). Actual results could differ from those estimates and assumptions. Principles of Consolidation The accompanying consolidated financial statements include accounts of IMH and its wholly-owned subsidiaries. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as variable interest entities (VIEs), through arrangements that do not involve voting interests. The VIE framework requires a variable interest holder (counterparty to a VIE) to consolidate the VIE if that party has the power to direct activities of the VIE that most significantly impact the entity’s economic performance, will absorb a majority of the expected losses of the VIE, will receive a majority of the residual returns of the VIE, or both, and directs the significant activities of the entity. This party is considered the primary beneficiary of the entity. The determination of whether the Company meets the criteria to be considered the primary beneficiary of a VIE requires an evaluation of all transactions (such as investments, liquidity commitments, derivatives and fee arrangements) with the entity. The assessment of whether or not the Company is the primary beneficiary of the VIE is performed on an ongoing basis. Significant Accounting Policies Fair Value Option The Company has elected the fair value option for mortgage servicing rights, mortgage loans held-for-sale, long-term debt and its consolidated non-recourse securitizations (securitized mortgage collateral and securitized mortgage borrowings). Elections were made to mitigate income statement volatility caused by differences in the measurement basis of elected instruments. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less at the date of acquisition. The carrying amount of cash and cash equivalents approximates fair value. Cash balances that have restrictions as to the Company’s ability to withdraw funds are considered restricted cash. At December 31, 2020 and 2019, restricted cash totaled $5.6 million and $12.5 million, respectively. The restricted cash is the result of the terms of the Company’s warehouse borrowing agreements as well as collateral against letter of credit financing associated with corporate-owned life insurance (See Note 13.—Commitments and Contingencies). In accordance with the terms of the Master Repurchase Agreements related to the warehouse borrowings, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings (See Note 5.—Debt). Mortgage Loans Held‑for‑Sale Mortgage LHFS are accounted for using the fair value option, with changes in fair value recorded in gain on sale of loans, net in the accompanying consolidated statements of operations and comprehensive loss. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 825, Financial Instruments, loan origination fees and expenses are recognized in earnings as incurred and not deferred. Revenue derived from the Company’s mortgage lending activities includes loan fees collected at the time of origination and gain or loss from the sale of LHFS. Loan fees consist of fee income earned on all loan originations, including loans closed and held-for-sale. Loan fees are recognized as earned and consist of amounts collected for application and underwriting fees, fees on cancelled loans and discount points. The related direct loan origination costs are recognized when incurred and consists of broker fees and commissions. Gain or loss from the sale and mark‑to‑market adjustments of LHFS includes both realized and unrealized gains and losses and are included in gain on sale of loans, net in the accompanying consolidated statements of operations and comprehensive loss. The valuation of LHFS approximates a whole‑loan price, which includes the value of the related mortgage servicing rights. The Company primarily sells its LHFS to government sponsored entities (GSEs) and investors. The Company evaluates its loan sales for sales treatment. To the extent the transfer of loans qualifies as a sale, the Company derecognizes the loans and records a realized gain or loss on the sale date. In the event the Company determines that the transfer of loans does not qualify as a sale, the transfer would be treated as a secured borrowing. Interest on loans is recorded as income when earned and deemed collectible. LHFS are placed on nonaccrual status when any portion of the principal or interest is 90 days past due or earlier if factors indicate that the ultimate collectability of the principal or interest is not probable. Interest received from loans on nonaccrual status is recorded as income when collected. Loans return to accrual status when the principal and interest become current and it is probable that the amounts are fully collectible. Mortgage Servicing Rights The Company accounts for mortgage loan sales in accordance with FASB ASC 860, Transfers and Servicing. Upon sale of mortgage loans on a service-retained basis, the LHFS are removed from the consolidated balance sheets and mortgage servicing rights (MSRs) are recorded as an asset for servicing rights retained. The Company elects to measure MSRs at fair value as prescribed by FASB ASC 860-50-35, and as such, servicing assets or liabilities are valued using discounted cash flow modeling techniques using assumptions regarding future net servicing cash flow, including prepayment rates, discount rates, servicing cost and other factors. Changes in estimated fair value are reported in the accompanying consolidated statements of operations and comprehensive loss within loss on mortgage servicing rights, net. When the Company sells mortgage servicing rights, the Company records a gain or loss on such sale based on the selling price of the mortgage servicing rights less the carrying value and transaction costs. Gains and losses are reported in the accompanying consolidated statements of operations and comprehensive loss within loss on mortgage servicing rights, net. Consolidated Non-recourse Securitizations Securitized Mortgage Collateral The Company’s long‑term mortgage portfolio primarily includes adjustable rate and, to a lesser extent, fixed rate non‑conforming mortgages and commercial mortgages that were acquired and originated by the Company’s mortgage and commercial operations prior to 2008. Non‑conforming mortgages may not have certain documentation or verifications that are required by government sponsored entities and, therefore, in making our credit decisions, the Company was more reliant upon the borrower’s credit score and the adequacy of the underlying collateral. Historically, the Company securitized mortgages in the form of collateralized mortgage obligations (CMO) or real estate mortgage investment conduits (REMICs). These securitizations are evaluated for consolidation based on the provisions of FASB ASC 810‑10‑25. Amounts consolidated are included in trust assets and liabilities as securitized mortgage collateral, real estate owned (REO) and securitized mortgage borrowings in the accompanying consolidated balance sheets. The Company accounts for securitized mortgage collateral at fair value, with changes in fair value during the period reflected in earnings. Fair value measurements are based on the Company’s estimated cash flow models, which incorporate assumptions, inputs of other market participants and quoted prices for the underlying bonds. The Company’s assumptions include its expectations of inputs that other market participants would use. These assumptions include judgments about the underlying collateral, prepayment speeds, credit losses, investor yield requirements, forward interest rates and certain other factors. Interest income on securitized mortgage collateral is recorded using the effective yield for the period based on the previous quarter‑end’s estimated fair value. Securitized mortgage collateral is generally not placed on nonaccrual status as the servicer advances the interest payments to the trust regardless of the delinquency status of the underlying mortgage loan, until it becomes apparent to the servicer that the advance is not collectible. Real Estate Owned Real estate owned on the consolidated balance sheets are primarily assets within the securitized trusts but are recorded as a separate asset for accounting and reporting purposes and are within the long‑term mortgage portfolio. REO, which consists of residential real estate acquired in satisfaction of loans, is carried at net realizable value, which includes the estimated fair value of the residential real estate less estimated selling and holding costs. Adjustments to the loan carrying value required at the time of foreclosure affect the carrying amount of REO. Subsequent write‑downs in the net realizable value of REO are included in change in fair value of net trust assets, including trust REO (losses) gains in the consolidated statements of operations and comprehensive loss. Securitized Mortgage Borrowings The Company records securitized mortgage borrowings in the accompanying consolidated balance sheets for the consolidated CMO and REMIC securitized trusts within the long-term mortgage portfolio. The debt from each issuance of a securitized mortgage borrowing is payable from the principal and interest payments on the underlying mortgages collateralizing such debt, as well as the proceeds from liquidations of REO. If the principal and interest payments are insufficient to repay the debt, the shortfall is allocated first to the residual interest holders (generally owned by the Company) then, if necessary, to the certificate holders (e.g. third party investors in the securitized mortgage borrowings) in accordance with the specific terms of the various respective indentures. Securitized mortgage borrowings typically are structured as one-month London Interbank Offered Rate (LIBOR) “floaters” and fixed rate securities with interest payable to certificate holders monthly. The maturity of each class of securitized mortgage borrowing is directly affected by the amount of net interest spread, overcollateralization and the rate of principal prepayments and defaults on the related securitized mortgage collateral. The actual maturity of any class of a securitized mortgage borrowing can occur later than the stated maturities of the underlying mortgages. When the Company issued securitized mortgage borrowings, the Company generally sought an investment grade rating for the Company’s securitized mortgages by nationally recognized rating agencies. To secure such ratings, it was often necessary to incorporate certain structural features that provide for credit enhancement. This generally included the pledge of collateral in excess of the principal amount of the securities to be issued, a bond guaranty insurance policy for some or all of the issued securities, or additional forms of mortgage insurance. These securitization transactions are non-recourse to the Company and the total loss exposure is limited to the Company’s initial net economic investment in each trust, which is referred to as a residual interest. The Company accounts for securitized mortgage borrowings at fair value, with changes in fair value during the period reflected in earnings. Fair value measurements are based on the Company’s estimated cash flow models, which incorporate assumptions, inputs of other market participants and quoted prices for the underlying bonds. The Company’s assumptions include its expectations of inputs that other market participants would use. These assumptions include judgments about the underlying collateral, prepayment speeds, credit losses, investor yield requirements, forward interest rates and certain other factors. Interest expense on securitized mortgage borrowings are recorded quarterly using the effective yield for the period based on the previous quarter‑end’s estimated fair value. Leases On January 1, 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, “Leases (Topic 842)”, using the modified retrospective transition approach and elected the practical expedients transition option to recognize the adjustment in the period of adoption rather than in the earliest period presented. On January 1, 2019, the Company recognized right of use (ROU) assets of $19.7 million (net of the reversal of $3.8 million deferred rent liability) and lease liabilities of $23.4 million which are included in other assets and other liabilities, respectively, in the accompanying consolidated balance sheets. (See Note 13.— Commitments and Contingencies). The Company has three operating leases for office space expiring at various dates through 2024 and one financing lease which concludes in 2023. The Company determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its ROU assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. When the Company cannot readily determine the rate implicit in the lease, the Company determines its incremental borrowing rate by using the rate of interest that it would have to pay to borrow on a collateralized basis over a similar term. As a practical expedient permitted under Topic 842, the Company elected to account for the lease and non-lease components as a single lease component for all leases of which it is the lessee. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and lease expense for these leases is recognized on a straight-line basis over the lease term. For operating leases existing prior to January 1, 2019, the rate used for the remaining lease term was determined as of the date of adoption. Derivative Instruments In accordance with FASB ASC 815‑10 Derivatives and Hedging—Overview, the Company records all derivative instruments at fair value. The Company has accounted for all its derivatives as non‑designated hedge instruments or free‑standing derivatives. The mortgage lending operation enters into IRLCs with consumers to originate mortgage loans at a specified interest rate. These IRLCs are accounted for as derivative instruments. The fair values of IRLCs utilize current secondary market prices for underlying loans and estimated servicing value with similar coupons, maturities and credit quality, subject to the anticipated loan funding probability (pull‑through rate). The fair value of IRLCs is subject to change primarily due to changes in interest rates and the estimated pull‑through rate. The Company reports IRLCs within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations and comprehensive loss within gain on sale of loans, net. The Company hedges the changes in fair value associated with changes in interest rates related to IRLCs and uncommitted LHFS by using forward delivery commitments on mortgage-backed securities, including Federal National Mortgage Association (Fannie Mae or FNMA) and Government National Mortgage Association (Ginnie Mae or GNMA) mortgage‑backed securities known as to‑be‑announced mortgage‑backed securities (TBA MBS or Hedging Instruments) as well as forward delivery commitments on whole loans. The Hedging Instruments and forward delivery loan commitments are used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market and are accounted for as derivative instruments. The fair value of Hedging Instruments and forward delivery loan commitments are subject to change primarily due to changes in interest rates. The Company reports Hedging Instruments and forward delivery loan commitments within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations and comprehensive loss within gain on sale of loans, net. The fair value of IRLCs and Hedging Instruments are represented as derivative assets, lending, net and derivative liabilities, lending, net in Note 9.—Fair Value of Financial Instruments. Long‑term Debt Long‑term debt (junior subordinated notes) is reported at fair value. These securities are measured based upon an analysis prepared by management, which considers the Company’s own credit risk and discounted cash flow analysis. With the adoption of ASU 2016-01 in 2018, which applies when the Company elects the fair value election on its own debt, the Company effectively bifurcates the market and instrument specific credit risk components of changes in long-term debt. The market portion continues to be a component of net loss as the change in fair value of long-term debt, but the instrument specific credit risk portion is a component of accumulated other comprehensive loss in the accompanying consolidated statements of operations and comprehensive loss, as required by the adoption of ASU 2016-01. Repurchase Reserve The Company sells mortgage loans in the secondary market, including U.S. GSEs, and issues mortgage‑backed securities through Ginnie Mae and Fannie Mae. When the Company sells or issues securities, it makes customary representations and warranties to the purchasers about various characteristics of each loan such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local laws. In the event of a breach of its representations and warranties, the Company may be required to either repurchase the mortgage loans with the identified defects or indemnify the investor or insurer for any loss. In addition, the Company may be required to repurchase loans as a result of borrower fraud or if a payment default occurs on a mortgage loan shortly after its sale. The Company’s loss may be reduced by proceeds from the sale or liquidation of the repurchased loan. Also, the Company’s loss may be reduced by any recourse it has to correspondent lenders that, in turn, had sold such mortgage loans to the Company and breached similar or other representations and warranties. In such event, the Company has the right to seek a recovery of related repurchase losses from that correspondent lender. The Company records a provision for losses relating to such representations and warranties as part of its loan sale transactions. The method used to estimate the liability for representations and warranties is a function of the representations and warranties given and considers a combination of factors, including, but not limited to, estimated future defaults and loan repurchase rates and the potential severity of loss in the event of defaults including any loss on sale or liquidation of the repurchased loan and the probability of reimbursement by the correspondent loan seller. The Company establishes a liability at the time loans are sold and continually updates its estimated repurchase liability. The level of the repurchase liability for representations and warranties is difficult to estimate and requires considerable management judgment. The level of mortgage loan repurchase losses is dependent on economic factors, investor demands for loan repurchases and other external conditions that may change over the lives of the underlying loans. Revenue Recognition for Fees from Services The Company follows FASB ASC 606, Revenue Recognition, which provides guidance on the application of GAAP to selected revenue recognition issues related to our real estate services fees. Under FASB ASC 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from financial instruments that are not within the scope of FASB ASC 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of operations and comprehensive loss, was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. The revenues from these services are recognized in income in the period when services are rendered and collectability is reasonably certain. Advertising Costs Advertising costs are expensed as incurred and are included in business promotion expense in the accompanying consolidated statements of operations and comprehensive loss. For the years ended December 31, 2020 and 2019, business promotion expense was $3.9 million and $9.3 million, respectively. Equity‑Based Compensation The Company accounts for stock‑based compensation in accordance with FASB ASC 718 Compensation—Stock Compensation. The Company uses the grant-date fair value of equity awards to determine the compensation cost associated with each award. Grant-date fair value is determined using the Black-Scholes pricing model and assumptions noted in Note 14.—Share Based Payments and Employee Benefit Plans, adjusted for unique characteristics of the specific awards. Compensation cost for service-based equity awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. FASB ASC 718 requires forfeitures to be estimated at the time of grant and prospectively revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Stock‑based compensation expense is recorded net of estimated forfeitures for the years ended December 31, 2020 and 2019, such that the expense was recorded only for those stock‑based awards that were expected to vest during such periods. The cost of equity-based compensation is recorded to personnel expense. Refer to Note 14.—Share Based Payments and Employee Benefit Plans. Income Taxes In accordance with FASB ASC 740, Income Taxes, the Company records income tax expense as well as deferred tax assets and liabilities. Current income tax expense or benefit approximates taxes to be paid or refunded for the current period, respectively, and includes income tax expense related to uncertain tax positions. The Company determines deferred income taxes using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and recognizes enacted changes in tax rates and laws in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized subject to management’s judgment that realization is “more likely than not.” Uncertain tax positions that meet the more likely than not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. The Company is subject to federal income taxes as a regular (Subchapter C) corporation and files a consolidated U.S. federal income tax return on qualifying subsidiaries. The Company files federal and various states income tax returns in the U.S. The Company adopted ASU 2019-12 on a prospective basis on January 1, 2020 (See Note 11.—Income Taxes). The most significant impact to the Company included the removal of the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income). The changes also add a requirement for an entity to reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Loss Per Common Share Basic loss per common share is computed on the basis of the weighted average number of shares outstanding for the year divided by net loss for the year. Diluted loss per common share is computed on the basis of the weighted average number of shares and dilutive common equivalent shares outstanding for the year divided by net loss for the year, unless anti‑dilutive. Refer to Note 10.—Reconciliation of Loss Per Share. Accounting Pronouncements Adopted In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” The ASU eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU modifies disclosure requirements for Level 3 measurements. This ASU is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. The Company adopted this guidance on January 1, 2020, and the adoption of this ASU had no significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40).” This ASU addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted this guidance on January 1, 2020, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. In December 2019, FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, Income Taxes. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for public business entities for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The Company early adopted ASU 2019-12 on a prospective basis on January 1, 2020 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” (ASU 2016-13), which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses”, for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging,” and “Topic 825, Financial Instruments (ASU 2019-04),” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326)”, which is also effective with the adoption of ASU 2016-13. In October 2019, the FASB voted to delay the implementation date for smaller reporting companies until January 1, 2023. We will adopt this ASU on its effective date of January 1, 2023. We do not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the benefits of) reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective and apply to all entities, subject to meeting certain criteria, that have contract, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in ASU 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact the adoption of this ASU would have on the Company’s consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective January 1, 2024, for the Company. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. The Company does not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements.

Mortgage Loans Held-for-Sale

12 Months Ended

Dec. 31, 2020

Mortgage Loans Held-for-Sale

Mortgage Loans Held-for-Sale

Note 2.—Mortgage Loans held-for-sale

A summary of the unpaid principal balance (UPB) of mortgage LHFS by type is presented below:


	December 31,		December 31,
	2020		2019
Government (1)	$	7,924	$	51,019
Conventional (2)		141,139		436,040
Jumbo & Non-qualified mortgages (NonQM)		11,064		274,834
Fair value adjustment (3)		4,295		20,250
Total mortgage loans held-for-sale	$	164,422	$	782,143

(1)

Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA).

(2)

Includes loans eligible for sale to Fannie Mae and Federal home Loan Mortgage Corporation (Freddie Mac or FHLMC).

(3)

Changes in fair value are included in gain on sale of loans, net on the accompanying consolidated statements of operations and comprehensive loss.

As of December 31, 2020, the Company had $1.2 million in UPB of mortgage LHFS that were in nonaccrual status as the loans were 90 days or more delinquent. The carrying value of these nonaccrual loans as of December 31, 2020 was $1.1 million. As of December 31, 2019, there were $4.5 million in UPB of mortgage LHFS that were in nonaccrual status as the loans were 90 days or more delinquent. The carrying value of these nonaccrual loans as of December 31, 2019 was $4.2 million.

Gain on sale of loans, net in the consolidated statements of operations and comprehensive loss is comprised of the following for the years ended December 31, 2020 and 2019:


	For the Year Ended
	December 31,
	2020		2019
Gain on sale of mortgage loans	$	59,330	$	111,787
Premium from servicing retained loan sales		2,094		2,491
Unrealized (loss) gain from derivative financial instruments		(7)		4,472
Losses from derivative financial instruments		(11,040)		(5,627)
Mark to market (loss) gain on LHFS		(15,955)		15,810
Direct origination expenses, net		(15,191)		(24,616)
Change in provision for repurchases		(5,227)		(5,487)
Gain on sale of loans, net	$	14,004	$	98,830

On July 7, 2020, the Company received notification from Freddie Mac that the Company’s eligibility to sell whole loans to Freddie Mac was suspended, without cause. As noted in Freddie Mac’s Seller/Servicer Guide, Freddie Mac may elect, in its sole discretion, to suspend a Seller from eligibility, without cause, thereby restricting the Seller from obtaining new purchase commitments during the suspension period.

Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2020

Mortgage Servicing Rights

Mortgage Servicing Rights

Note 3.—Mortgage Servicing Rights

The Company selectively retains MSRs from its sales and securitization of certain mortgage loans or as a result of purchase transactions. MSRs are reported at fair value based on the expected income derived from the net projected cash flows associated with the servicing contracts. The Company receives servicing fees, less subservicing costs, on the UPB of the underlying mortgage loans. The servicing fees are collected from the monthly payments made by the mortgagors, or if delinquent, when the underlying real estate is foreclosed upon and liquidated. The Company may receive other remuneration from rights to various mortgagor-contracted fees, such as late charges, collateral reconveyance charges and nonsufficient fund fees, and the Company is generally entitled to retain the interest earned on funds held pending remittance (or float) related to its collection of mortgagor principal, interest, tax and insurance payments.

In May 2020, the Company sold all of its conventional MSRs for approximately $20.1 million, receiving $15.0 million in proceeds upon sale, with the remaining due upon transfer of the servicing and transfer of all trailing documents. The Company used the $15.0 million in proceeds from the MSR sale to pay off the MSR financing. (See Note 5.—Debt– MSR Financings).

In July 2020, the Company sold the majority of its government insured MSRs for approximately $225 thousand, receiving $163 thousand in proceeds upon sale, with the remaining due upon transfer of the servicing and transfer of all trailing documents.

The following table summarizes the activity of MSRs for the years ended December 31, 2020 and 2019:


	December 31,		December 31,
	2020		2019
Balance at beginning of year	$	41,470	$	64,728
Additions from servicing retained loan sales		2,094		2,491
Reductions from bulk sales		(21,263)		—
Other		—		22
Changes in fair value (1)		(21,962)		(25,771)
Fair value of MSRs at end of period	$	339	$	41,470

(1)

Changes in fair value are included within loss on mortgage servicing rights, net in the accompanying consolidated statements of operations and comprehensive loss.

At December 31, 2020 and 2019, the UPB of the mortgage servicing portfolio was comprised of the following:


	December 31,		December 31,
	2020		2019
Government insured	$	30,524	$	105,442
Conventional		—		4,826,407
Total loans serviced (1)	$	30,524	$	4,931,849

(1)

The MSR Financing line expired in May 2020. No collateral was pledged as part of the MSR Financing at December 31, 2019.

The table below illustrates hypothetical changes in the fair value of MSRs, caused by assumed immediate changes to key assumptions that are used to determine fair value. See Note 9.—Fair Value of Financial Instruments for a description of the key assumptions used to determine the fair value of MSRs.


	December 31,		December 31,
Mortgage Servicing Rights Sensitivity Analysis	2020		2019
Fair value of MSRs	$	339	$	41,470
Prepayment Speed:
Decrease in fair value from 10% adverse change		(13)		(1,850)
Decrease in fair value from 20% adverse change		(26)		(3,631)
Decrease in fair value from 30% adverse change		(38)		(5,325)
Discount Rate:
Decrease in fair value from 10% adverse change		(13)		(1,330)
Decrease in fair value from 20% adverse change		(25)		(2,579)
Decrease in fair value from 30% adverse change		(37)		(3,753)

Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in MSR values may differ significantly from those displayed above.

Loss on mortgage servicing rights, net is comprised of the following for the years ended December 31, 2020 and 2019:


	For the Year Ended
	December 31,
	2020		2019
Change in fair value of mortgage servicing rights	$	(21,962)	$	(25,771)
(Loss) gain on sale of mortgage servicing rights		(6,547)		860
Loss on mortgage servicing rights, net	$	(28,509)	$	(24,911)

Servicing fees, net is comprised of the following for the years ended December 31, 2020 and 2019:


	For the Year Ended
	December 31,
	2020		2019
Contractual servicing fees	$	5,159	$	15,147
Late and ancillary fees		67		180
Subservicing and other costs		(1,623)		(2,384)
Servicing fees, net	$	3,603	$	12,943

Other Assets

12 Months Ended

Dec. 31, 2020

Other Assets

Other Assets

Note 4.—Other Assets

Other assets consisted of the following:


	December 31,		December 31,
	2020		2019
Right of use asset (See Note 13)	$	13,512	$	17,169
Corporate-owned life insurance (See Note 13)		10,659		—
Derivative assets – lending (See Note 7)		7,275		7,791
Prepaid expenses		3,429		3,125
Accounts receivable, net		3,190		14,265
Other		1,103		1,110
Servicing advances		947		2,109
Premises and equipment, net		930		1,250
Accrued interest receivable		286		2,131
Loans eligible for repurchase from Ginnie Mae		114		1,686
Real estate owned – outside trusts		79		152
Total other assets	$	41,524	$	50,788

Accounts Receivable, net

Accounts receivable are primarily holdbacks from MSR sales, which are generally collected within six months of the sale date, loan sales that have not settled, and fees earned for real estate services rendered, generally collected one month in arrears. Accounts receivable are stated at their carrying value, net of $329 thousand and $280 thousand reserve for doubtful accounts as of December 31, 2020 and 2019, respectively.

Servicing Advances

The Company is required to advance certain amounts to meet its contractual loan servicing requirements. The Company advances principal, interest, property taxes and insurance for borrowers that have insufficient escrow accounts, plus any other costs to preserve the properties. Also, the Company will advance funds to maintain, repair and market foreclosed real estate properties. The Company is entitled to recover advances from the borrowers for reinstated and performing loans or from proceeds of liquidated properties.

Loans Eligible for Repurchase from Ginnie Mae

The Company sells loans in Ginnie Mae guaranteed MBS by pooling eligible loans through a pool custodian and assigning rights to the loans to Ginnie Mae. When these Ginnie Mae loans are initially pooled and securitized, the Company meets the criteria for sale treatment and de-recognizes the loans. The terms of the Ginnie Mae MBS program allow, but do not require, the Company to repurchase mortgage loans when the borrower has made no payments for three consecutive months. When the Company has the unconditional right, as servicer, to repurchase Ginnie Mae pool loans it has previously sold and are more than 90 days past due, and the repurchase will provide a “more than trivial benefit”, the Company then re-recognizes the loans on its consolidated balance sheets in other assets, at their UPB and records a corresponding liability in other liabilities in the consolidated balance sheets. At December 31, 2019, loans eligible for repurchase from GNMA totaled $1.7 million. As a result of the sale of GNMA servicing in July 2020, our loans eligible for repurchase from GNMA decreased to $114 thousand at December 31, 2020. As part of the Company’s repurchase reserve, the Company records a repurchase provision to provide for estimated losses from the sale or securitization of all mortgage loans, including these loans.

Premises and Equipment, net


	December 31,
	2020		2019
Premises and equipment	$	6,230	$	5,829
Less: Accumulated depreciation		(5,300)		(4,579)
Total premises and equipment, net	$	930	$	1,250

The Company recognized $722 thousand and $721 thousand of depreciation expense within general, administrative and other expense in the accompanying consolidated statements of operations and comprehensive loss, for the years ended December 31, 2020 and 2019, respectively.

Debt

12 Months Ended

Dec. 31, 2020

Debt

Debt

Note 5.—Debt

The following table shows contractual future debt maturities as of December 31, 2020:


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Warehouse borrowings	$	151,932	$	151,932	$	—	$	—	$	—
Convertible notes		20,000		—		20,000		—		—
Long-term debt		62,000		—		—		—		62,000
Total debt obligations	$	233,932	$	151,932	$	20,000	$	—	$	62,000

Warehouse Borrowings

The Company, through its subsidiaries, enters into Master Repurchase Agreements with lenders providing warehouse facilities. The warehouse facilities are used to fund, and are secured by, residential mortgage loans that are held for sale. The warehouse and revolving lines of credit are repaid using proceeds from the sale of loans. The base interest rates on the Company’s warehouse lines bear interest at 1-month LIBOR plus a margin or Note rate minus a margin. Some of the lines carry additional fees in the form of annual facility fees charged on the total line amount, commitment fees charged on the committed portion of the line and non-usage fees charged when monthly usage falls below a certain utilization percentage. The Company’s warehouse lines are scheduled to expire in 2021 under one year terms and all lines are subject to renewal based on an annual credit review conducted by the lender.

The base interest rates for all warehouse lines of credit are subject to increase based upon the characteristics of the underlying loans collateralizing the lines of credit, including, but not limited to product type and number of days held for sale. Certain of the warehouse line lenders require the Company, at all times, to maintain cash accounts with minimum required balances. As of December 31, 2020 and 2019, there was $1.3 million and $1.1 million, respectively, held in these accounts which are recorded as a component of restricted cash on the consolidated balance sheets.

Under the terms of these warehouse lines, the Company is required to maintain various financial and other covenants. At December 31, 2020, the Company was in compliance with all financial covenants from its lenders.

The following table presents certain information on warehouse borrowings for the periods indicated:


	Maximum		Balance Outstanding at				Allowable
	Borrowing		December 31,		December 31,		Advance	Rate
	Capacity		2020		2019		Rates (%)	Range	Maturity Date
Short-term borrowings:
Repurchase agreement 1	$	50,000	$	49,963	$	72,971	90 - 98	1ML + 2.00 - 2.25%	November 24, 2021
Repurchase agreement 2		200,000		51,310		119,838	100	1ML + 1.75%	August 27, 2021
Repurchase agreement 3		300,000		50,659		72,666	100	Note Rate - 0.375%	June 22, 2021
Repurchase agreement 4		—		—		25,953	—	—	May 29, 2020
Repurchase agreement 5		—		—		250,722	—	—	May 29, 2020
Repurchase agreement 6		—		—		159,413	—	—	June 25, 2020
Total warehouse borrowings	$	550,000	$	151,932	$	701,563

The following table presents certain information on warehouse borrowings for the periods indicated:


	For the year ended
	December 31,
	2020			2019
Maximum outstanding balance during the year	$	810,818		$	971,595
Average balance outstanding for the year		252,565			547,421
UPB of underlying collateral (mortgage loans)		153,675			763,309
Weighted average interest rate for period		3.74	%		4.30	%

MSR Financings

In May 2018, IMC (Borrower) amended the Line of Credit Promissory Note (FHLMC and GNMA Financing) originally entered into in August 2017, increasing the maximum borrowing capacity of the revolving line of credit to $60.0 million, increasing the borrowing capacity up to 60% of the fair market value of the pledged mortgage servicing rights and reducing the interest rate per annum to one-month LIBOR plus 3.0%. As part of the May 2018 amendment, the obligations under the Line of Credit were secured by FHLMC and GNMA pledged mortgage servicing rights (subject to an acknowledgement agreement) and was guaranteed by IRES. In January 2020, the maturity of the line was extended to March 31, 2020. In April 2020, the maturity of the line was extended to May 31, 2020. In May 2020, the line was repaid with the proceeds from the MSR sale (as disclosed in Note 3.—Mortgage Servicing Rights) and the line expired.

The following table presents certain information on MSR Financings for the periods indicated:


	For the year ended
	December 31,
	2020			2019
Maximum outstanding balance during the year	$	15,000		$	5,000
Average balance outstanding for the year		2,943			200
Weighted average rate for period		3.91	%		8.00	%

MSR Advance Financing

In April 2020, Ginnie Mae announced they revised and expanded their issuer assistance program to provide financing to fund servicer advances through the Pass-Through Assistance Program (PTAP). The PTAP funds advanced by Ginnie Mae bear interest at a fixed rate that will apply to a given months pass-through assistance and will be posted on Ginnie Mae’s website each month. The maturity date was the earlier of the seven months from the month the request and repayment agreement was approved, or July 30, 2021. In July 2020, the outstanding PTAP funds were repaid. At December 31, 2020, the Company had no PTAP funds outstanding.

Convertible Notes

In May 2015, the Company issued $25.0 million Convertible Promissory Notes (Notes) to purchasers, some of which are related parties. The Notes were originally due to mature on or before May 9, 2020 and accrued interest at a rate of 7.5% per annum, to be paid quarterly.

Noteholders may convert all or a portion of the outstanding principal amount of the Notes into shares of the Company’s common stock (Conversion Shares) at a rate of $21.50 per share, subject to adjustment for stock splits and dividends (Conversion Price). The Company has the right to convert the entire outstanding principal of the Notes into Conversion Shares at the Conversion Price if the market price per share of the common stock, as measured by the average volume-weighted closing stock price per share of the common stock on the NYSE AMERICAN (or any other U.S. national securities exchange then serving as the principal such exchange on which the shares of common stock are listed), reaches the level of $30.10 for any twenty (20) trading days in any period of thirty (30) consecutive trading days after the Closing Date (as defined in the Notes). Upon conversion of the Notes by the Company, the entire amount of accrued and unpaid interest (and all other amounts owing) under the Notes are immediately due and payable. To the extent the Company pays any cash dividends on its shares of common stock prior to conversion of the Notes, upon conversion of the Notes, the noteholders will also receive such dividends on an as-converted basis of the Notes less the amount of interest paid by the Company prior to such dividend.

On April 15, 2020, the Company and the noteholders agreed to extend the outstanding Notes in the principal amount of $25.0 million originally issued in May 2015, at the conclusion of the original note term (First Amendment). The new Notes were issued with a six month term (November 9, 2020) and reduced the interest rate on such Notes to 7.0% per annum. In connection with the issuance of the First Amendment, the Company issued to the noteholders of the Notes, warrants to purchase up to an aggregate of 212,649 shares of the Company’s common stock at a cash exercise price of $2.97 per share. The relative fair value of the warrants were $242 thousand and recorded as debt discounts, which are accreted over the term of the warrants (October 2020), using an effective interest rate of 8.9%. The warrants are exercisable commencing on October 16, 2020 and expire on April 15, 2025. The First Amendment was accounted for as an extinguishment.

On October 28, 2020, the Company and certain holders of its Notes due November 9, 2020 in the aggregate principal amount of $25.0 million agreed to extend the maturity date of the Notes upon conclusion of the term on November 9, 2020. The new notes have an 18-month term due May 9, 2022 and the Company decreased the aggregate principal amount of the Notes to $20.0 million, following the pay-down of $5.0 million in principal of the Notes on November 9, 2020 (Second Amendment). The interest rate on the Notes remains at 7.0% per annum. The Second Amendment was accounted for as an extinguishment.

Long‑term Debt

The Company carries its Long-term Debt (Junior Subordinated Notes) at estimated fair value as more fully described in Note 9.—Fair Value of Financial Instruments. The following table shows the remaining principal balance and fair value of Junior Subordinated Notes issued as of December 31, 2020 and 2019:


	December 31,
	2020		2019
Junior Subordinated Notes (1)	$	62,000	$	62,000
Fair value adjustment		(17,587)		(16,566)
Total Junior Subordinated Notes	$	44,413	$	45,434

(1)

Stated maturity of March 2034; requires quarterly interest payments at a variable rate of 3-month LIBOR plus 3.75% per annum. At December 31, 2020, the interest rate was 3.99%.

Securitized Mortgage Trusts

12 Months Ended

Dec. 31, 2020

Securitized Mortgage Trusts

Securitized Mortgage Trusts

Note 6.—Securitized Mortgage Trusts

Securitized Mortgage Trust Assets

Securitized mortgage trust assets are comprised of the following at December 31, 2020 and 2019:


	December 31,		December 31,
	2020		2019
Securitized mortgage collateral, at fair value	$	2,100,175	$	2,628,064
REO, at net realizable value (NRV)		3,094		6,682
Total securitized mortgage trust assets	$	2,103,269	$	2,634,746

Securitized Mortgage Collateral

Securitized mortgage collateral consisted of the following:


	December 31,		December 31,
	2020		2019
Mortgages secured by residential real estate	$	2,205,575	$	2,649,997
Mortgages secured by commercial real estate		170,418		210,536
Fair value adjustment		(275,818)		(232,469)
Total securitized mortgage collateral, at fair value	$	2,100,175	$	2,628,064

As of December 31, 2020, the Company was also a master servicer of mortgages for others of approximately $216.3 million in UPB that were primarily collateralizing REMIC securitizations, compared to $268.1 million at December 31, 2019. Related fiduciary funds are held in trust for investors in non‑interest bearing accounts and are not included in the Company’s consolidated balance sheets. The Company may also be required to advance funds or cause loan servicers to advance funds to cover principal and interest payments not received from borrowers depending on the status of their mortgages.

Real Estate Owned

The Company’s REO consisted of the following:


		December 31,	December 31,
	2020		2019
REO	$	10,140	$	21,195
Impairment (1)		(6,967)		(14,361)
Ending balance	$	3,173	$	6,834
REO inside trusts	$	3,094	$	6,682
REO outside trusts		79		152
Total	$	3,173	$	6,834

(1)

Impairment represents the cumulative write‑downs of net realizable value subsequent to foreclosure.

Securitized Mortgage Trust Liabilities

Securitized mortgage trust liabilities, which are recorded at estimated fair market value as more fully described in Note 9.—Fair Value of Financial Instruments, are comprised of the following at December 31, 2020 and 2019:


	December 31,		December 31,
	2020		2019
Securitized mortgage borrowings	$	2,086,557	$	2,619,210

Securitized Mortgage Borrowings – Non-recourse

Selected information on securitized mortgage borrowings for the periods indicated consisted of the following (dollars in millions):


			Securitized
			mortgage
			borrowings
			outstanding as of
			December 31,				Range of Interest Rates (%)
								Interest	Interest
								Rate	Rate
	Original						Fixed	Margins over	Margins after
	Issuance						Interest	One-Month	Contractual
Year of Issuance	Amount		2020		2019		Rates	LIBOR (1)	Call Date (2)
2002	$	3,876.1	$	3.4	$	3.9	5.25 - 12.00	0.27 - 2.75	0.54 - 3.68
2003		5,966.1		19.1		26.8	4.34 - 12.75	0.27 - 3.00	0.54 - 4.50
2004		17,710.7		287.3		354.3	3.58 - 5.56	0.25 - 2.50	0.50 - 3.75
2005		13,387.7		1,404.6		1,581.7	—	0.24 - 2.90	0.48 - 4.35
2006		5,971.4		1,860.3		2,018.0	6.25	0.10 - 2.75	0.20 - 4.13
2007		3,860.5		1,012.5		1,121.1	—	0.06 - 2.00	0.12 - 3.00
Subtotal contractual principal balance (3)				4,587.2		5,105.8
Fair value adjustment (4)				(2,500.6)		(2,486.6)
Total securitized mortgage borrowings			$	2,086.6	$	2,619.2

(1)

One-month LIBOR was 0.14% as of December 31, 2020.

(2)

Interest rate margins are generally adjusted when the unpaid principal balance is reduced to less than 10‑20% of the original issuance amount, or if certain other triggers are met.

(3)

Represents the outstanding balance in accordance with trustee reporting.

(4)

Fair value adjustment is inclusive of $2.2 billion in bond losses at December 31, 2020 and 2019.

As of December 31, 2020, expected principal reductions of the securitized mortgage borrowings, which is based on contractual principal payments and expected prepayment and loss assumptions for securitized mortgage collateral, was as follows (dollars in millions):


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Securitized mortgage borrowings (1)	$	4,587.2	$	452.5	$	587.4	$	381.2	$	3,166.1

(1)

Represents the outstanding balance in accordance with trustee reporting.

Change in Fair Value of Net Trust Assets, including Trust REO Losses

Changes in fair value of net trust assets, including trust REO losses are comprised of the following for the years ended December 31, 2020 and 2019:


	For the Year Ended
	December 31,
	2020		2019
Change in fair value of net trust assets, excluding REO	$	(13,081)	$	(3,397)
Gains (losses) from REO		7,393		(6,434)
Change in fair value of net trust assets, including trust REO gains (losses)	$	(5,688)	$	(9,831)

Derivative Instruments

12 Months Ended

Dec. 31, 2020

Derivative Instruments

Derivative Instruments

Note 7.—Derivative Instruments

The mortgage lending operation enters into IRLCs with prospective borrowers to originate mortgage loans at a specified interest rate and Hedging Instruments and forward delivery loan commitments to hedge the fair value changes associated with changes in interest rates relating to its mortgage loan origination operations. The fair value of IRLCs, Hedging Instruments and forward delivery loan commitments related to mortgage loan origination are included in other assets or liabilities in the consolidated balance sheets. As of December 31, 2020, the estimated fair value of IRLCs was an asset of $7.3 million while Hedging Instruments were a liability of $143 thousand. Forward delivery commitments had no fair value as they were marked within LHFS to the price of the trades. As of December 31, 2019, the estimated fair value of IRLCs was an asset of $7.8 million while Hedging Instruments were a liability of $651 thousand.

The following table includes information for the derivative assets and liabilities, lending for the periods presented:


					Total Gains (Losses)
	Notional Amount				For the Year Ended
	December 31,		December 31,		December 31,
	2020		2019		2020		2019
Derivative – IRLC's (1)	$	450,913	$	419,035	$	(516)	$	4,440
Derivative – TBA MBS (2)		45,000		485,459		(10,531)		(5,595)
Derivative – Forward delivery loan commitment (3)		20,000		232,530		—		—

(1)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive loss.

(2)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive loss.

(3)

As of December 31, 2020, $20.0 million of forward loan commitment remained unallocated and are recorded at fair value. As of December 31, 2019, $232.5 million in mortgage loans had been allocated to forward delivery loan commitments and were recorded at fair value within LHFS in the accompanying consolidated balance sheets.

Redeemable Preferred Stock	12 Months Ended
Redeemable Preferred Stock	Dec. 31, 2020
Redeemable Preferred Stock
Redeemable Preferred Stock	Note 8.—Redeemable Preferred Stock At December 31, 2020, the Company has outstanding $69.3 million liquidation preference of Series B and Series C Preferred Stock. The holders of each series of Preferred Stock, which are non‑voting and redeemable at the option of the Company, retain the right to a $25.00 per share liquidation preference in the event of a liquidation of the Company and the right to receive dividends on the Preferred Stock if any such dividends are declared. As disclosed within Note 13.—Commitments and Contingencies, on July 16, 2018, the court entered its Judgement Order and Memorandum Opinion on the matter entitled Timm v. Impac Mortgage Holdings, Inc., a purported class action on behalf of holders of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock (Preferred B) and 9.125% Series C Cumulative Redeemable Preferred Stock (Preferred C). The court entered judgement in favor of the Company on all claims related to the Preferred C holders. The judgment also declared (among other items disclosed in Note 13) that two-thirds of the Preferred B holders were required to approve the 2009 amendments to the Preferred B Articles Supplementary, which was not obtained, rendering the 2009 amendments to the Preferred B Articles Supplementary invalid and leaving the 2004 Preferred B Articles Supplementary in effect. As a result of the Judgement Order, all rights of the Preferred B holders under the 2004 Articles are deemed reinstated. Subject to an appeal, the Company has cumulative undeclared dividends in arrears of approximately $17.5 million, or approximately $26.37 per outstanding share of Preferred B, increasing the liquidation value to approximately $51.37 per share. Additionally, every quarter the cumulative undeclared dividends in arrears will increase by $0.5859 per share, or approximately $390 thousand. As the Company prevailed on all claims related to the Preferred C holders, based on the court’s ruling there are no Preferred C dividends owed. The liquidation preference, inclusive of the Preferred B cumulative undeclared dividends in arrears, is only payable upon voluntary or involuntary liquidation, dissolution or winding up of the Company’s affairs.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2020

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Note 9.—Fair Value of Financial Instruments

The use of fair value to measure the Company’s financial instruments is fundamental to its consolidated financial statements and is a critical accounting estimate because a substantial portion of its assets and liabilities are recorded at estimated fair value.

FASB ASC 825 requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. The Company uses exit price notion when measuring the fair values of financial instruments for disclosure purposes. The following table presents the estimated fair value of financial instruments included in the consolidated financial statements as of the dates indicated:


	December 31, 2020								December 31, 2019
	Carrying		Estimated Fair Value						Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	54,150	$	54,150	$	—	$	—	$	24,666	$	24,666	$	—	$	—
Restricted cash		5,602		5,602		—		—		12,466		12,466		—		—
Mortgage loans held-for-sale		164,422		—		164,422		—		782,143		—		782,143		—
Mortgage servicing rights		339		—		—		339		41,470		—		—		41,470
Derivative assets, lending, net (1)		7,275		—		—		7,275		7,791		—		—		7,791
Securitized mortgage collateral		2,100,175		—		—		2,100,175		2,628,064		—		—		2,628,064

Liabilities
Warehouse borrowings	$	151,932	$	—	$	151,932	$	—	$	701,563	$	—	$	701,563	$	—
Convertible notes		20,000		—		—		20,000		24,996		—		—		24,996
Long-term debt		44,413		—		—		44,413		45,434		—		—		45,434
Securitized mortgage borrowings		2,086,557		—		—		2,086,557		2,619,210		—		—		2,619,210
Derivative liabilities, lending, net (2)		143		—		143		—		651		—		651		—

(1)

Represents IRLCs and are included in other assets in the accompanying consolidated balance sheets.

(2)

Represents Hedging Instruments and are included in other liabilities in the accompanying consolidated balance sheets.

The fair value amounts above have been estimated by management using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret market data to develop the estimates of fair value in both inactive and orderly markets. Accordingly, the estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

For the consolidated non-recourse securitizations, the fair value of the financial liabilities of the consolidated non-recourse securitizations (securitized mortgage borrowings) is more observable than the fair value of the financial assets of the consolidated non-recourse securitizations (securitized mortgage collateral). In accordance with ASU 2014-13, the financial liabilities of the consolidated non-recourse securitizations are the more observable input and measured at fair value and the financial assets are being measured in consolidation as: (1) the sum of the fair value of the securitized mortgage borrowings and the fair value of the beneficial interests retained by the Company less (2) the carrying value of any REO. The resulting amount is allocated to securitized mortgage collateral.

For securitized mortgage collateral and securitized mortgage borrowings, the underlying Alt‑A (non-conforming) residential and commercial loans and mortgage‑backed securities market have experienced significant declines in market activity, along with a lack of orderly transactions. The Company’s methodology to estimate fair value of these assets and liabilities include the use of internal pricing techniques such as the net present value of future expected cash flows (with observable market participant assumptions, where available) discounted at a rate of return based on the Company’s estimates of market participant requirements. The significant assumptions utilized in these internal pricing techniques, which are based on the characteristics of the underlying collateral, include estimated credit losses, estimated prepayment speeds and appropriate discount rates.

Fair Value Hierarchy

The application of fair value measurements may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability or whether management has elected to carry the item at its estimated fair value.

FASB ASC 820‑10‑35 specifies a hierarchy of valuation techniques based on whether the inputs to those techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1—Quoted prices (unadjusted) in active markets for identical instruments or liabilities that an entity has the ability to assess at measurement date.

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices that are observable for an asset or liability, including interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, loss severities, credit risks and default rates; and market‑corroborated inputs.

Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when estimating fair value.

As a result of the lack of observable market data resulting from inactive markets, the Company has classified its securitized mortgage collateral and borrowings, derivative assets (IRLCs), Notes and long‑term debt as Level 3 fair value measurements. Level 3 assets and liabilities measured at fair value on a recurring basis were approximately 90% and 93% and 77% and 79%, respectively, of total assets and total liabilities measured at estimated fair value at December 31, 2020 and 2019.

Recurring Fair Value Measurements

The Company assesses its financial instruments on a quarterly basis to determine the appropriate classification within the fair value hierarchy, as defined by FASB ASC Topic 810. Transfers between fair value classifications occur when there are changes in pricing observability levels. Transfers of financial instruments among the levels occur at the beginning of the reporting period. There were no material transfers into Level 3 classified instruments during the year ended December 31, 2020.

The following tables present the Company’s assets and liabilities that are measured at estimated fair value on a recurring basis, including financial instruments for which the Company has elected the fair value option at December 31, 2020 and 2019, based on the fair value hierarchy:


	Recurring Fair Value Measurements
	December 31, 2020						December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Mortgage loans held-for-sale	$	—	$	164,422	$	—	$	—	$	782,143	$	—
Derivative assets, lending, net (1)		—		—		7,275		—		—		7,791
Mortgage servicing rights		—		—		339		—		—		41,470
Securitized mortgage collateral		—		—		2,100,175		—		—		2,628,064
Total assets at fair value	$	—	$	164,422	$	2,107,789	$	—	$	782,143	$	2,677,325
Liabilities
Securitized mortgage borrowings	$	—	$	—	$	2,086,557	$	—	$	—	$	2,619,210
Long-term debt		—		—		44,413		—		—		45,434
Derivative liabilities, lending, net (2)		—		143		—		—		651		—
Total liabilities at fair value	$	—	$	143	$	2,130,970	$	—	$	651	$	2,664,644

(1)

At December 31, 2020, derivative assets, lending, net included $7.3 million in IRLCs and is included in other assets in the accompanying consolidated balance sheets. At December 31, 2019, derivative assets, lending, net included $7.8 million in IRLCs and is included in other assets in accompanying consolidated balance sheets.

(2)

At December 31, 2020 and 2019, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets.

The following tables present reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2020 and 2019:


	Level 3 Recurring Fair Value Measurements
	For the Year Ended December 31, 2020

							Interest
	Securitized		Securitized		Mortgage		rate lock		Long-
	mortgage		mortgage		servicing		commitments,		term
	collateral		borrowings		rights		net		debt
Fair value, December 31, 2019	$	2,628,064	$	(2,619,210)	$	41,470	$	7,791	$	(45,434)
Total (losses) gains included in earnings:
Interest income (1)		747		—		—		—		—
Interest expense (1)		—		(65,421)		—		—		(850)
Change in fair value		(92,562)		79,481		(21,962)		(516)		1,899
Change in instrument specific credit risk		—		—		—		—		(28)	(2)
Total (losses) gains included in earnings		(91,815)		14,060		(21,962)		(516)		1,021
Transfers in and/or out of Level 3		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—
Issuances		—		—		2,094		—		—
Settlements		(436,074)		518,593		(21,263)		—		—
Fair value, December 31, 2020	$	2,100,175	$	(2,086,557)	$	339	$	7,275	$	(44,413)
Unrealized (losses) gains still held (3)	$	(275,818)	$	2,500,674	$	339	$	7,275	$	17,587

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $8.9 million for the year ended December 31, 2020. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive loss is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

Amount represents the change in instrument specific credit risk in other comprehensive loss in the consolidated statements of operations and comprehensive loss.

(3)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at December 31, 2020.


	Level 3 Recurring Fair Value Measurements
	For the Year Ended December 31, 2019

							Interest
	Securitized		Securitized		Mortgage		rate lock		Long-
	mortgage		mortgage		servicing		commitments,		term
	collateral		borrowings		rights		net		debt
Fair value, December 31, 2018	$	3,157,071	$	(3,148,215)	$	64,728	$	3,351	$	(44,856)
Total gains (losses) included in earnings:
Interest income (1)		11,279		—		—		—		—
Interest expense (1)		—		(38,127)		—		—		(425)
Change in fair value		52,499		(55,896)		(25,771)		4,440		(1,429)
Change in instrument specific credit risk		—		—		—		—		1,276	(2)
Total gains (losses) included in earnings		63,778		(94,023)		(25,771)		4,440		(578)
Transfers in and/or out of Level 3		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—
Issuances		—		—		2,491		—		—
Settlements		(592,785)		623,028		22		—		—
Fair value, December 31, 2019	$	2,628,064	$	(2,619,210)	$	41,470	$	7,791	$	(45,434)
Unrealized (losses) gains still held (3)	$	(232,469)	$	2,486,615	$	41,470	$	7,791	$	16,566

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $9.4 million for the year ended December 31, 2019. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive loss is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

Amount represents the change in instrument specific credit risk in other comprehensive loss in the consolidated statements of operations and comprehensive loss.

(3)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that were still held and reflected in the fair values at December 31, 2019.

The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and non‑recurring basis at December 31, 2020.


	Estimated		Valuation	Unobservable	Range of		Weighted
Financial Instrument	Fair Value		Technique	Input	Inputs		Average
Assets and liabilities backed by real estate
Securitized mortgage collateral, and	$	2,100,175	Discounted Cash Flow	Prepayment rates	2.0 - 25.6	%	12.4	%
Securitized mortgage borrowings		(2,086,557)		Default rates	0.07 - 24.1	%	3.4	%
				Loss severities	0.01 - 97.7	%	64.1	%
				Discount rates	1.1 - 25.0	%	2.6	%
Other assets and liabilities
Mortgage servicing rights	$	339	Discounted Cash Flow	Discount rates	12.5 - 15.0	%	12.8	%
				Prepayment rates	9.1 - 27.5	%	12.3	%
Derivative assets - IRLCs, net		7,275	Market pricing	Pull-through rates	21.6 - 99.9	%	69.0	%
Long-term debt		(44,413)	Discounted Cash Flow	Discount rates	8.3	%	8.3	%

For assets and liabilities backed by real estate, a significant increase in discount rates, default rates or loss severities would result in a significantly lower estimated fair value. The effect of changes in prepayment speeds would have differing effects depending on the seniority or other characteristics of the instrument. For other assets and liabilities, a significant increase in discount rates would result in a significantly lower estimated fair value. A significant increase or decrease in pull‑through rate assumptions would result in a significant increase or decrease, respectively, in the fair value of IRLCs. The Company believes that the imprecision of an estimate could be significant.

The following tables present the changes in recurring fair value measurements included in net losses for the years ended December 31, 2020 and 2019:


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Loss
	For the Year Ended December 31, 2020
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Income		Gain on Sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of Loans, net		Total
Securitized mortgage collateral	$	747	$	—	$	(92,562)		$	—	$	—	$	—	$	(91,815)
Securitized mortgage borrowings		—		(65,421)		79,481			—		—		—		14,060
Long-term debt		—		(850)		—			1,899		—		—		1,049
Mortgage servicing rights (2)		—		—		—			—		(21,962)		—		(21,962)
Mortgage loans held-for-sale		—		—		—			—		—		(15,955)		(15,955)
Derivative assets — IRLCs		—		—		—			—		—		(516)		(516)
Derivative liabilities — Hedging Instruments		—		—		—			—		—		509		509
Total	$	747	$	(66,271)	$	(13,081)	(3)	$	1,899	$	(21,962)	$	(15,962)	$	(114,630)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in loss on mortgage servicing rights, net in the consolidated statements of operations and comprehensive loss.

(3)

For the year ended December 31, 2020, change in the fair value of trust assets, excluding REO was $13.1 million.


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Loss
	For the Year Ended December 31, 2019
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Income		Gain on Sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of Loans, net		Total
Securitized mortgage collateral	$	11,279	$	—	$	52,499		$	—	$	—	$	—	$	63,778
Securitized mortgage borrowings		—		(38,127)		(55,896)			—		—		—		(94,023)
Long-term debt		—		(425)		—			(1,429)		—		—		(1,854)
Mortgage servicing rights (2)		—		—		—			—		(25,771)		—		(25,771)
Mortgage loans held-for-sale		—		—		—			—		—		15,810		15,810
Derivative assets — IRLCs		—		—		—			—		—		4,440		4,440
Derivative liabilities — Hedging Instruments		—		—		—			—		—		32		32
Total	$	11,279	$	(38,552)	$	(3,397)	(3)	$	(1,429)	$	(25,771)	$	20,282	$	(37,588)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in loss on mortgage servicing rights, net in the consolidated statements of operations and comprehensive loss.

(3)

For the year ended December 31, 2019, change in the fair value of trust assets, excluding REO was $3.4 million.

The following is a description of the measurement techniques for items recorded at estimated fair value on a recurring basis.

Mortgage servicing rights—The Company elected to carry its mortgage servicing rights arising from its mortgage loan origination operation at fair value. The fair value of mortgage servicing rights is based upon a discounted cash flow model. The valuation model incorporates assumptions that market participants would use in estimating the fair value of servicing. These assumptions include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, prepayment and late fees, among other considerations. Mortgage servicing rights are considered a Level 3 measurement at December 31, 2020 and 2019.

Mortgage loans held‑for‑sale—The Company elected to carry its mortgage LHFS originated or acquired from its mortgage lending operation at fair value. Fair value is based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants. Given the meaningful level of secondary market activity for mortgage loans, active pricing is available for similar assets and accordingly, the Company classifies its mortgage LHFS as a Level 2 measurement at December 31, 2020 and 2019.

Securitized mortgage collateral—The Company elected to carry its securitized mortgage collateral at fair value. These assets consist primarily of non‑conforming mortgage loans securitized between 2002 and 2007. Fair value measurements are based on the Company’s internal models used to compute the net present value of future expected cash flows, with observable market participant assumptions, where available. The Company’s assumptions include its expectations of inputs that other market participants would use in pricing these assets. These assumptions include judgments about the underlying collateral, prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of December 31, 2020, securitized mortgage collateral had an unpaid principal balance of $2.4 billion, compared to an estimated fair value on the Company’s consolidated balance sheets of $2.1 billion. The aggregate unpaid principal balance exceeds the fair value by $0.3 billion at December 31, 2020. As of December 31, 2020, the unpaid principal balance of loans 90 days or more past due was $0.4 billion compared to an estimated fair value of $0.1 billion. The aggregate unpaid principal balances of loans 90 days or more past due exceed the fair value by $0.3 billion at December 31, 2020. Securitized mortgage collateral is considered a Level 3 measurement at December 31, 2020 and 2019.

Securitized mortgage borrowings—The Company elected to carry all of its securitized mortgage borrowings at fair value. These borrowings consist of individual tranches of bonds issued by securitization trusts and are primarily backed by non‑conforming mortgage loans. Fair value measurements include the Company’s judgments about the underlying collateral and assumptions such as prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of December 31, 2020, securitized mortgage borrowings had an outstanding principal balance of $2.4 billion, net of $2.2 billion in bond losses, compared to an estimated fair value of $2.1 billion. The aggregate outstanding principal balance exceeds the fair value by $0.3 billion at December 31, 2020. Securitized mortgage borrowings are considered a Level 3 measurement at December 31, 2020 and 2019.

Long‑term debt—The Company elected to carry its remaining long‑term debt (consisting of junior subordinated notes) at fair value. These securities are measured based upon an analysis prepared by management, which considered the Company’s own credit risk, including settlements with trust preferred debt holders and discounted cash flow analysis. As of December 31, 2020, long‑term debt had an unpaid principal balance of $62.0 million compared to an estimated fair value of $44.4 million. The aggregate unpaid principal balance exceeds the fair value by $17.6 million at December 31, 2020. The long‑term debt is considered a Level 3 measurement at December 31, 2020 and 2019.

Derivative assets and liabilities, Lending—The Company’s derivative assets and liabilities are carried at fair value as required by GAAP and are accounted for as free standing derivatives. The derivatives include IRLCs with prospective residential mortgage borrowers whereby the interest rate on the loan is determined prior to funding and the borrowers have locked in that interest rate. These commitments are determined to be derivative instruments in accordance with GAAP. The derivatives also include hedging instruments (typically TBA MBS and forward loan commitments) used to hedge the fair value changes associated with changes in interest rates relating to its mortgage lending originations. The Company hedges the period from the interest rate lock (assuming a fall‑out factor) to the date of the loan sale. The estimated fair value of IRLCs are based on underlying loan types with similar characteristics using the TBA MBS market, which is actively quoted and validated through external sources. The data inputs used in this valuation include, but are not limited to, loan type, underlying loan amount, note rate, loan program, expected sale date of the loan, and current market interest rates. These valuations are adjusted at the loan level to consider the servicing release premium and loan pricing adjustments specific to each loan. For all IRLCs, the base value is then adjusted for the anticipated Pull‑through Rate. The anticipated Pull‑through Rate is an unobservable input based on historical experience, which results in classification of IRLCs as a Level 3 measurement at December 31, 2020 and 2019. The fair value of the Hedging Instruments is based on the actively quoted TBA MBS market using observable inputs related to characteristics of the underlying MBS stratified by product, coupon and settlement date. Therefore, the Hedging Instruments are classified as a Level 2 measurement at December 31, 2020 and 2019.

Nonrecurring Fair Value Measurements

The Company is required to measure certain assets and liabilities at estimated fair value from time to time. These fair value measurements typically result from the application of specific accounting pronouncements under GAAP. The fair value measurements are considered nonrecurring fair value measurements under FASB ASC 820‑10.

The following table presents financial and non‑financial assets and liabilities measured using nonrecurring fair value measurements at December 31, 2020 and 2019, respectively:


	Nonrecurring Fair Value Measurements
	December 31, 2020						December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
REO (1)	$	—	$	3,173	$	—	$	—	$	6,834	$	—
ROU asset		—		—		13,512		—		—		—

(1)

Balance represents REO at December 31, 2020 and December 31, 2019 which has been impaired subsequent to foreclosure.

The following table presents total losses on financial and non‑financial assets and liabilities measured using nonrecurring fair value measurements for the years ended December 31, 2020 and 2019, respectively:


	Total Gains (Losses) (1)
	For the Year Ended December 31,
	2020		2019
REO (2)	$	7,393	$	(6,434)

(1)

Total gains (losses) reflect gains (losses) from all nonrecurring measurements during the period.

(2)

For the years ended December 31, 2020 and 2019, the Company recorded $7.4 million and ($6.4) million, respectively, of gains (losses) related to changes in the NRV of REO. Gains represent recovery of the NRV attributable to an improvement in state specific loss severities on properties held during the period which resulted in an increase to NRV. Losses represent impairment of the NRV attributable to an increase in state specific loss severities on REO held during the period which resulted in a decrease to NRV.

Real estate owned—REO consists of residential real estate acquired in satisfaction of loans. Upon foreclosure, REO is adjusted to the estimated fair value of the residential real estate less estimated selling and holding costs, offset by expected contractual mortgage insurance proceeds to be received, if any. Subsequently, REO is recorded at the lower of carrying value or estimated fair value less costs to sell. REO balance representing REOs which have been impaired subsequent to foreclosure are subject to nonrecurring fair value measurement and included in the nonrecurring fair value measurements tables. Fair values of REO are generally based on observable market inputs, and considered Level 2 measurements at December 31, 2020 and 2019.

ROU asset—The Company performs reviews of its ROU assets for impairment when evidence exists that the carrying value of an asset may not be recoverable. During the first quarter of 2020, the Company recorded a $393 thousand ROU asset impairment charge related to the consolidation of one floor of our corporate office. The impairment charge is included in general, administrative and other expense in the consolidated statements of operations and comprehensive loss. ROU asset was considered a Level 3 fair value measurement at December 31, 2020 and December 31, 2019.

Reconciliation of Loss Per Common Share

12 Months Ended

Dec. 31, 2020

Reconciliation of Loss Per Common Share

Reconciliation of Loss Per Common Share

Note 10.—Reconciliation of Loss Per Common Share

The following table presents the computation of basic and diluted loss per common share, including the dilutive effect of stock options, restricted stock awards (RSA’s), restricted stock units (RSU’s), deferred stock units (DSU’s), Notes and cumulative redeemable preferred stock outstanding for the periods indicated, when dilutive:


	For the Three Months Ended				For the Year Ended
	December 31,				December 31,
	2020		2019		2020		2019
Numerator for basic loss per share:
Net loss	$	(2,190)	$	(677)	$	(88,150)	$	(7,977)

Numerator for diluted loss per share:
Net loss	$	(2,190)	$	(677)	$	(88,150)	$	(7,977)
Interest expense attributable to convertible notes (1)		—		—		—		—
Net loss plus interest expense attributable to convertible notes	$	(2,190)	$	(677)	$	(88,150)	$	(7,977)

Denominator for basic loss per share (2):
Basic weighted average common shares outstanding during the year		21,255		21,220		21,251		21,189

Denominator for diluted loss per share (2):
Basic weighted average common shares outstanding during the year		21,255		21,220		21,251		21,189
Net effect of dilutive convertible notes and warrants (1)		—		—		—		—
Net effect of dilutive stock options, DSU’s, RSA's and RSU's (1)		—		—		—		—
Diluted weighted average common shares		21,255		21,220		21,251		21,189
Net loss per common share:
Basic	$	(0.10)	$	(0.03)	$	(4.15)	$	(0.38)
Diluted	$	(0.10)	$	(0.03)	$	(4.15)	$	(0.38)

(1)

Adjustments to diluted loss per share for the Notes for the years ended December 31, 2020 and 2019, were excluded from the calculation, as they were anti-dilutive.

(2)

Share amounts presented in thousands.

The anti‑dilutive stock options, RSA’s, RSU’s and DSU’s outstanding for the years ending December 31, 2020 and 2019 were 829 thousand and 1.1 million shares in the aggregate, respectively. Additionally, for the years ended December 2020 and 2019, there were 930 thousand and 1.2 million shares, respectively, attributable to the Notes that were anti-dilutive.

In addition to the potential dilutive effects of stock options, RSA’s, RSU’s, DSU’s and Notes listed above, see Note 8.—Redeemable Preferred Stock, for a description of cumulative undeclared dividends in arrears which would also become dilutive in the event the Company is not successful in its appeal of the original court ruling.

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Taxes

Income Taxes

Note 11.—Income Taxes

The Company is subject to federal income taxes as a regular (Subchapter C) corporation and files a consolidated U.S. federal income tax return.

Income taxes for the years ended December 31, 2020 and 2019 were as follows:


	For the year ended December 31,
	2020		2019
Current income taxes:
Federal	$	8	$	(362)
State		125		117
Total current income tax expense (benefit)		133		(245)
Deferred income taxes:
Federal		—		—
State		—		—
Total deferred income tax expense		—		—
Total income tax expense (benefit)	$	133	$	(245)

The Company recorded income tax expense (benefit) of $133 thousand and $(245) thousand for the years ended December 31, 2020 and 2019, respectively. The income tax expense of $133 thousand for the year ended December 31, 2020 was primarily the result of state taxes from states where the Company does not have net operating loss (NOL) carryforwards or state minimum taxes. The income tax benefit of $(245) thousand for the year ended December 31, 2019 was primarily the result of tax benefits resulting from the intraperiod allocation rules that are applied when there is a pre-tax loss from continuing operations and pre-tax income from other comprehensive earnings partially offset by state taxes from states where the Company does not have net operating loss carryforwards or state minimum taxes.

Deferred tax assets are recognized subject to management's judgment that realization is "more likely than not". A valuation allowance is recognized for a deferred tax asset if, based on the weight of the available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. In making such judgments, significant weight is given to evidence that can be objectively verified. As of each reporting date, the Company considers new evidence, both positive and negative, that could impact management's view with regard to future realization of deferred tax assets. Significant judgment is required in assessing future earnings trends, the availability of tax planning strategies, recent pretax losses and the timing of reversals of temporary differences. The Company's evaluation is based on current tax laws as well as management's expectation of future performance.

The Company's deferred tax assets are primarily the result of net operating losses and basis differences on mortgage securities and goodwill. The Company has recorded a full valuation allowance against its deferred tax assets at December 31, 2020 as it is more likely than not that the deferred tax assets will not be realized. The valuation allowance is based on the management's assessment that it is more likely than not that certain deferred tax assets, primarily net operating loss carryforwards, may not be realized in the foreseeable future due to objective negative evidence.

Deferred tax assets are comprised of the following temporary differences between the financial statement carrying value and the tax basis of assets:


	For the year ended December 31,
	2020		2019
Deferred tax assets:
Federal and state net operating losses	$	173,652	$	163,676
Mortgage securities		54,624		49,927
Depreciation and amortization		26,752		29,127
Capital loss carryover		171		169
Compensation and other accruals		3,060		3,535
Repurchase reserve		2,200		2,765
Total gross deferred tax assets		260,459		249,199
Deferred tax liabilities:
Fair value adjustments on long-term debt		(4,639)		(4,391)
Mortgage servicing rights		(106)		(11,549)
Corporate-owned life insurance		(968)		—
Total gross deferred tax liabilities		(5,713)		(15,940)
Valuation allowance		(254,746)		(233,259)
Total net deferred tax assets	$	—	$	—

The following is a reconciliation of income taxes to the expected statutory federal corporate income tax rates for the years ended December 31, 2020 and 2019:


	For the year ended December 31,
	2020		2019
Expected income tax expense	$	(18,483)	$	(1,727)
State tax expense, net of federal benefit		99		106
State rate change		(731)		(269)
Change in valuation allowance		19,016		1,425
Corporate-owned life insurance interest and premiums		170		—
Other		62		220
Total income tax expense (benefit)	$	133	$	(245)

At December 31, 2020, the Company had accumulated other comprehensive earnings of $24.8 million, which was net of tax of $11.3 million.

As of December 31, 2020, the Company had estimated NOL carryforwards of approximately $609.3 million. Federal NOL carryforwards begin to expire in 2027. As of December 31, 2020, the Company had estimated California NOL carryforwards of approximately $420.3 million, which begin to expire in 2028. The Company may not be able to realize the maximum benefit due to the nature and tax entities that hold the NOL.

On October 23, 2019, the Company adopted a Tax Benefits Preservation Rights Agreement (Rights Plan) to help preserve the value of certain deferred tax benefits, including those generated by net operating losses (collectively, Tax Benefits). In general, the Company may “carry forward” net operating losses in certain circumstances to offset current and future taxable income, which will reduce federal and state income tax liability, subject to certain requirements and restrictions. The Company’s ability to use these Tax Benefits would be substantially limited and impaired if it were to experience an “ownership change” for purposes of Section 382 of the Internal Revenue Code of 1986, as amended (the Code) and the Treasury Regulations promulgated thereunder. Generally, the Company will experience an “ownership change” if the percentage of the shares of Common Stock owned by one or more “five-percent shareholders” increases by more than 50 percentage points over the lowest percentage of shares of Common Stock owned by such stockholder at any time during the prior three year on a rolling basis. As such, the Rights Plan has a 4.99% “trigger” threshold that is intended to act as a deterrent to any person or entity seeking to acquire 4.99% or more of the outstanding Common Stock without the prior approval of the board of directors. The Rights Plan also has certain ancillary anti-takeover effects. The rights accompany each share of common stock of the Company and are evidenced by ownership of common stock. The rights are not exercisable except upon the occurrence of certain change of control events. Once triggered, the rights would entitle the stockholders, other than a person qualifying as an “Acquiring Person” pursuant to the rights plan, to certain “flip in”, “flip over” and exchange rights. The rights issued under the Rights Plan may be redeemed by the board of directors at a nominal redemption price of $0.001 per right, and the board of directors may amend the rights in any respect until the rights are triggered. The Rights Plan was approved at the Company’s 2020 annual meeting of stockholders and will expire on the three-year anniversary of its adoption.

The Company adopted ASU 2019-12 on a prospective basis on January 1, 2020. The most significant impact to the Company included the removal of the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive earnings). The changes also add a requirement for an entity to reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The adoption of this standard did not have a material impact on the Company's consolidated financial statements.

The Company files numerous tax returns in various jurisdictions. While the Company is subject to examination by various taxing authorities, the Company believes there are no unresolved issues or claims likely to be material to its financial position. The Company classifies interest and penalties on taxes as provision for income taxes. As of December 31, 2020 and 2019, the Company has no material uncertain tax positions. The Company has state AMT credits in the amount of $404 thousand as of December 31, 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Segment Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting

Segment Reporting

Note 12.—Segment Reporting

The Company has three primary reporting segments which include mortgage lending, real estate services and long‑term mortgage portfolio. Unallocated corporate and other administrative costs, including the costs associated with being a public company, are presented in corporate and other.

The following table presents selected balance sheet data by reporting segment as of the dates indicated:


Balance Sheet Items as of	Mortgage		Real Estate		Long-term		Corporate
December 31, 2020:	Lending		Services		Portfolio		and other		Consolidated
Cash and cash equivalents	$	50,968	$	501	$	—		2,681	$	54,150
Restricted cash		5,602		—		—		—		5,602
Mortgage loans held-for-sale		164,422		—		—		—		164,422
Mortgage servicing rights		339		—		—		—		339
Trust assets		—		—		2,103,269		—		2,103,269
Other assets (1)		12,510		2		130		28,882		41,524
Total assets	$	233,841	$	503	$	2,103,399	$	31,563	$	2,369,306
Total liabilities	$	166,285	$	—	$	2,131,178	$	56,192	$	2,353,655


Balance Sheet Items as of	Mortgage		Real Estate		Long-term		Corporate
December 31, 2019:	Lending		Services		Portfolio		and other		Consolidated
Cash and cash equivalents	$	23,647	$	4	$	—	$	1,015	$	24,666
Restricted cash		12,466		—		—		—		12,466
Mortgage loans held-for-sale		782,143		—		—		—		782,143
Mortgage servicing rights		41,470		—		—		—		41,470
Trust assets		—		—		2,634,746		—		2,634,746
Other assets (1)		29,121		2		66		21,599		50,788
Total assets	$	888,847	$	6	$	2,634,812	$	22,614	$	3,546,279
Total liabilities	$	723,965	$	—	$	2,664,946	$	53,131	$	3,442,042

(1)

All segment asset balances exclude intercompany balances.

The following table presents selected statement of operations information by reporting segment for the years ended December 31, 2020 and 2019:


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Year Ended December 31, 2020:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	14,004	$	—	$	—	$	—	$	14,004
Servicing fees, net		3,603		—		—		—		3,603
Loss on mortgage servicing rights, net		(28,509)		—		—		—		(28,509)
Real estate services fees, net		—		1,312		—		—		1,312
Other revenue		135		—		143		1,220		1,498
Other operating expense		(60,869)		(1,485)		(633)		(18,286)		(81,273)
Other income (expense)		2,366		—		1,344		(2,362)		1,348
Net (loss) earnings before income tax expense	$	(69,270)	$	(173)	$	854	$	(19,428)		(88,017)
Income tax expense										133
Net loss									$	(88,150)


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Year Ended December 31, 2019:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	98,830	$	—	$	—	$	—	$	98,830
Servicing fees, net		12,943		—		—		—		12,943
Loss on mortgage servicing rights, net		(24,911)		—		—		—		(24,911)
Real estate services fees, net		—		3,287		—		—		3,287
Other revenue		157		—		260		62		479
Other operating expense		(79,536)		(1,391)		(531)		(15,462)		(96,920)
Other income (expense)		6,067		—		(6,189)		(1,808)		(1,930)
Net earnings (loss) before income tax expense	$	13,550	$	1,896	$	(6,460)	$	(17,208)	$	(8,222)
Income tax benefit										(245)
Net loss									$	(7,977)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 32
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies

Commitments and Contingencies

Note 13.—Commitments and Contingencies

Legal Proceedings

The Company is a defendant in or a party to a number of legal actions or proceedings that arise in the ordinary course of business. In some of these actions and proceedings, claims for monetary damages are asserted against the Company. In view of the inherent difficulty of predicting the outcome of such legal actions and proceedings, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss related to each pending matter may be, if any.

In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and estimable. In any case, there may be exposure to losses in excess of any such amounts whether accrued or not. Any estimated loss is subject to significant judgment and is based upon currently available information, a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimated loss will change from time to time, and actual results may vary significantly from the current estimate. Therefore, an estimate of possible loss represents what the Company believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum loss exposure.

Based on the Company’s current understanding of pending legal actions and proceedings, management does not believe that judgments or settlements arising from pending or threatened legal matters, individually or in the aggregate, will have a material adverse effect on the consolidated financial position, operating results or cash flows of the Company. However, in light of the inherent uncertainties involved in these matters, some of which are beyond the Company’s control, and the very large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period.

The legal matters summarized below are ongoing and may have an effect on the Company’s business and future financial condition and results of operations:

On December 7, 2011, a purported class action was filed in the Circuit Court of Baltimore City entitled Timm v. Impac Mortgage Holdings, Inc., et al. alleging on behalf of holders of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock (Preferred B) and 9.125% Series C Cumulative Redeemable Preferred Stock (Preferred C) who did not tender their stock in connection with the Company’s 2009 completion of its Offer to Purchase and Consent Solicitation that the Company failed to achieve the required consent of the Preferred B and C holders, the consents to amend the Preferred stock were not effective because they were given on unissued stock (after redemption), the Company tied the tender offer with a consent requirement that constituted an improper “vote buying” scheme, and that the tender offer was a breach of a fiduciary duty. The action seeks the payment of two quarterly dividends for the Preferred B and C holders, the unwinding of the consents and reinstatement of the cumulative dividend on the Preferred B and C stock, and the election of two directors by the Preferred B and C holders. The action also seeks punitive damages and legal expenses. On July 16, 2018, the Circuit Court entered a Judgement Order whereby it (1) declared and entered judgment in favor of all defendants on all claims related to the Preferred C holders and all claims against all individual defendants thereby affirming the validity of the 2009 amendments to the Preferred C Articles Supplementary; (2) declared its interpretation of the voting provision language in the Preferred B Articles Supplementary to mean that consent of two-thirds of the Preferred B stockholders was required to approve the 2009 amendments to the Preferred B Articles Supplementary, which consent was not obtained, thus rendering the amendments invalid and leaving the 2004 Preferred B Articles Supplementary in effect; (3) ordered the Company to hold a special election within sixty days for the Preferred B stockholders to elect two directors to the Board of Directors pursuant to the 2004 Preferred B Articles Supplementary (which Directors will remain on the Company’s Board of Directors until such time as all accumulated dividends on the Preferred B have been paid or set aside for payment); and (4) declared that the Company is required to pay three quarters of dividends on the Preferred B stock under the 2004 Preferred B Articles Supplementary (approximately, $1.2 million, but did not order the Company to make any payment at this time). The Circuit Court declined to certify any class pending the outcome of appeals and certified its Judgment Order for immediate appeal. On October 2, 2019, the Court of Special Appeals held oral argument for all appeals in the matter. On February 5, 2020, the Court of Special Appeals requested that the parties provide a supplemental memorandum explaining the appealability of the original Circuit Court opinion which the Company responded to on February 21, 2020. On April 1, 2020, the Court of Special Appeals issued an opinion affirming the judgment in favor of plaintiffs on the Series B voting rights arguing that the voting rights provision was not ambiguous. In response, the Company filed a petition for a writ of certiorari to the Maryland Court of Appeals appealing the Court of Special Appeals opinion. The Maryland Court of Appeals granted the writ of certiorari on July 13, 2020, agreeing to hear the Company’s appeal. All parties submitted their briefs and oral argument was held on December 4, 2020. There is no set timeframe for the court to issue its ruling.

On April 30, 2012, a purported class action was filed in California entitled Marentes v. Impac Mortgage Holdings, Inc., alleging that certain loan modification activities of the Company constitute an unfair business practice, false advertising and marketing, and that the fees charged are improper. The complaint seeks unspecified damages, restitution, injunctive relief, attorney’s fees and prejudgment interest. On August 22, 2012, the plaintiffs filed an amended complaint adding Impac Funding Corporation as a defendant and on October 2, 2012, the plaintiffs dismissed Impac Mortgage Holdings, Inc., without prejudice. On January 11, 2019, the trial court determined that the plaintiffs were unable to prove their case and ordered that judgment be entered in favor of the defendant. On April 19, 2019, the plaintiffs filed their Notice of Appeal and the plaintiffs filed their opening brief on October 31, 2019. The Company filed its response on February 19, 2020. On September 11, 2020, the Court of Appeal of the State of California affirmed the trial court’s judgment in favor of the Company. On October 21, 2020, the plaintiffs filed a Petition for Review with the Supreme Court of California. On December 16, 2020, the Supreme Court of California denied Marentes’ petition.

On April 20, 2017, a purported class action was filed in the United States District Court, Central District of California, entitled Nguyen v. Impac Mortgage Corp. dba CashCall Mortgage et al. The plaintiffs contend the defendants did not pay purported class members overtime compensation or provide meal and rest breaks, as required by law. The action seeks to invalidate any waiver signed by a purported class member of their right to bring a class action and seeks damages, restitution, penalties, attorney’s fees, interest, and an injunction against unfair, deceptive, and unlawful activities. On August 23, 2018, the court (1) granted the defendants motion to compel arbitration as to all claims, except for the plaintiffs’ claims under California’s Labor Code Private Attorneys General Act (PAGA); (2) ordered the plaintiffs to submit their claims (other than PAGA claims) to arbitration on an individual, non-class, non-collective, and non-representative basis; (3) dismissed all class and collective claims with prejudice to the plaintiffs and without prejudice to putative class members; and (4) stayed all claims that were compelled to arbitration, as well as the PAGA claims. Plaintiffs Jason Nguyen and Tam Nguyen each submitted their respective demands for individual arbitration to the American Arbitration Association. An arbitration hearing has not yet been set in the Jason Nguyen case. An arbitration hearing has been scheduled for October 25, 2021 in the Tam Nguyen case.

On September 18, 2018, a purported class action was filed in the Superior Court of California, Orange County, entitled McNair v. Impac Mortgage Corp. dba CashCall Mortgage. The plaintiff contends the defendant did not pay the plaintiff and purported class members overtime compensation, provide required meal and rest breaks, or provide accurate wage statements. The action seeks damages, restitution, penalties, interest, attorney’s fees, and all other appropriate injunctive, declaratory, and equitable relief. On March 8, 2019, a First Amended Complaint was filed, which added a claim alleging PAGA violations. On March 12, 2019, the parties filed a stipulation with the court stating (1) the plaintiff’s individual claims should be arbitrated pursuant to the parties’ arbitration agreement, (2) the class claims should be struck from the First Amended Complaint, and (3) the plaintiff will proceed solely with regard to her PAGA claims. This case was consolidated with the Batres v. Impac Mortgage Corp. dba CashCall Mortgage case discussed below with a rescheduled trial date of July 12, 2021.

On December 27, 2018, a purported class action was filed in the Superior Court of California, Orange County, entitled Batres v. Impac Mortgage Corp. dba CashCall Mortgage. The plaintiff contends the defendant did not pay the plaintiff and purported class members overtime compensation, provide required meal and rest breaks, or provide accurate wage statements. The action seeks damages, restitution, penalties, interest, attorney’s fees, and all other appropriate injunctive, declaratory, and equitable relief. On March 14, 2019, the plaintiff filed an amended complaint alleging only PAGA violations and seeking penalties, attorneys’ fees, and such other appropriate relief. This case was consolidated with the McNair v. Impac Mortgage Corp. dba CashCall Mortgage discussed above with a rescheduled trial date of July 12, 2021.

On July 3, 2019, a representative action was filed in the Superior Court of California, Orange County, entitled Law v. Impac Mortgage Corp. dba CashCall Mortgage under PAGA. The plaintiff contends the defendant did not pay its employees overtime compensation, provide required meal and rest breaks, or provide accurate wage statements as required by law. The action seeks penalties, attorneys’ fees, and such other appropriate relief. The Law action was deemed related to the McNair action on August 19, 2019. On January 13, 2020, the Law action was stayed pending resolution of the McNair action.

The Company is a party to other litigation and claims which are normal in the course of the Company’s operations. While the results of such other litigation and claims cannot be predicted with certainty, the Company believes the final outcome of such matters will not have a material adverse effect on our financial condition or results of operations. The Company believes that it has meritorious defenses to the above claims and intends to defend these claims vigorously and as such the Company believes the final outcome of such matters will not have a material adverse effect on its financial condition or results of operations. Nevertheless, litigation is uncertain and the Company may not prevail in the lawsuits. An adverse judgment in any of these matters could have a material adverse effect on the Company’s financial position and results of operations.

Lease Commitments

The following table presents the operating lease balances within the consolidated balance sheets, weighted average remaining lease term, and weighted average discount rates related to the Company’s operating leases as of December 31, 2020:


		December 31,
Lease Assets and Liabilities	Classification	2020
Assets
Operating lease ROU assets	Other assets	$ 13,512

Liabilities
Operating lease liabilities	Other liabilities	$ 16,448

Weighted average remaining lease term (in years)		3.7
Weighted average discount rate		4.8	%

The following table presents the maturities of the Company’s operating lease liabilities as of December 31, 2020:


Year 2021	$	4,639
Year 2022		4,767
Year 2023		4,905
Year 2024		3,729
Total lease commitments	$	18,040
Less: imputed interest		(1,592)
Total lease liability	$	16,448

During the years ended December 31, 2020 and 2019, cash paid for operating leases was $5.2 million and $4.7 million, respectively. Total operating lease expense for the years ended December 31, 2020 and 2019 was $4.7 million and $4.2 million, respectively. Operating lease expense includes short-term leases and sublease income, both of which are immaterial.

During the year ended December 31, 2020, the Company recognized ROU asset impairment of $393 thousand related to the consolidation of one floor of the Company’s corporate office, reducing the carrying value of the lease asset to its estimated fair value. The impairment charge is included in general, administrative and other expense in the consolidated statements of operations and comprehensive loss.

As of December 31, 2020, the Company had no additional operating leases that had not yet commenced.

Repurchase Reserve

The provision for repurchases represents an estimate of losses to be incurred on the repurchase of loans or indemnification of purchaser's losses related to loan sales. Certain sale contracts and GSE standards require the Company to repurchase a loan or indemnify the purchaser or insurer for losses if a borrower fails to make initial loan payments or if the accompanying mortgage loan fails to meet certain customary representations and warranties.

In the event of a breach of the representations and warranties, the Company may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. In addition, an investor may request that the Company refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. The Company records a reserve for estimated losses associated with loan repurchases, purchaser indemnification and premium refunds. The provision for repurchase losses is charged against gain on sale of loans, net in the consolidated statements of operations and comprehensive loss. A release of repurchase reserves is recorded when the Company's assessment reveals that previously recorded reserves are no longer needed.

Loans sold to Ginnie Mae are insured by the FHA or are guaranteed by the VA. As servicer, the Company may elect to repurchase delinquent loans in accordance with Ginnie Mae guidelines; however, the loans continue to be insured. The Company may also indemnify the FHA and VA for losses related to loans not originated in accordance with their guidelines.

A selling representation and warranty framework was introduced by the GSEs in 2013 and enhanced in 2014 that helps address concerns of loan sellers with respect to loan repurchase risk. Under the framework, a GSE will not exercise its remedies, including the issuance of repurchase requests, for breaches of certain selling representations and warranties if a mortgage meets certain eligibility requirements. For loans sold to GSEs on or after January 1, 2013, repurchase risk for Home Affordable Refinance Program (HARP) loans is lowered if the borrower stays current on the loan for 12 months and representation and warranty risks are limited for non-HARP loans that stay current for 36 months.

The Company regularly evaluates the adequacy of repurchase reserves based on trends in repurchase and indemnification requests, actual loss experience, settlement negotiation, estimated future loss exposure and other relevant factors including economic conditions. The Company sold $3.3 billion and $4.1 billion of loans for the years ended December 31, 2020 and 2019, respectively, which are subject to repurchase representations and warranties. The Company believes its reserve balances as of December 31, 2020 are sufficient to cover future loss exposure associated with repurchase contingencies.

The following table summarizes the repurchase reserve activity (included in other liabilities in the accompanying consolidated balance sheets) related to previously sold loans for the years ended December 31, 2020 and 2019:


	December 31,		December 31,
	2020		2019
Beginning balance	$	8,969	$	7,657
Provision for repurchases		5,227		5,487
Settlements		(7,142)		(4,175)
Total repurchase reserve	$	7,054	$	8,969

Corporate-owned Life Insurance Trusts

During the first quarter of 2020, there was a triggering event that caused the Company to reevaluate the consolidation of certain corporate-owned life insurance trusts. As a result, the Company has consolidated life insurance trusts for three former executive officers. The corporate-owned life insurance contracts are recorded at cash surrender value, which is provided by a third party and held within trusts. At December 31, 2020, the cash surrender value of the policies was $10.7 million and were recorded within other assets on the consolidated balance sheets. At December 31, 2020, the liability associated with the corporate-owned life insurance trusts was $12.6 million.


	At December 31, 2020
Corporate-owned life insurance trusts:	Trust #1		Trust #2		Trust #3		Total
Corporate-owned life insurance cash surrender value	$	4,924	$	3,765	$	1,970	$	10,659
Corporate-owned life insurance liability		5,803		4,550		2,216		12,569
Corporate-owned life insurance shortfall (1)	$	(879)	$	(785)	$	(246)	$	(1,910)

________________________

(1)

$1.3 million of the total shortfall was recorded as a change in retained deficit at the time of the consolidation of the trusts. The additional shortfall was recorded in the accompanying consolidated statements of operations and comprehensive loss.

Concentration of Risk

The aggregate unpaid principal balance of loans in the Company’s long‑term mortgage portfolio secured by properties in California and Florida was $1.2 billion and $267.8 million, or 49% and 11%, respectively, at December 31, 2020.

The Company sells mortgage loans to various third-party investors. The largest four investors accounted for 77% of the Company’s loan sales for the year ended December 31, 2020. No other investors accounted for more than 5% of the loan sales for the year ended December 31, 2020. The Company also has geographic concentration risk because 86% of the Company’s mortgage loan originations were from California.

Share Based Payments and Employee Benefit Plans

12 Months Ended

Dec. 31, 2020

Share Based Payments and Employee Benefit Plans

Share Based Payments and Employee Benefit Plans

Note 14.—Share Based Payments and Employee Benefit Plans

The Company maintains an equity‑based incentive compensation plan, the terms of which are governed by the 2020 Equity Incentive Plan (the 2020 Incentive Plan). The 2020 Incentive Plan provides for the grant of stock appreciation rights, RSU’s, DSU’s, performance shares and other stock and cash‑based incentive awards. Employees, directors, consultants or other persons providing services to the Company or its affiliates are eligible to receive awards pursuant to the 2020 Incentive Plan. In connection with the adoption of the 2020 Incentive Plan, the Company’s 2010 Omnibus Incentive Plan (Prior Plan), which was scheduled to expire in July 2020, was frozen for new grants. The 2010 Plan will remain in place only for the issuance of shares of our common stock pursuant to equity compensation awards outstanding under the 2010 Plan, which awards will continue to be governed by the terms of the 2010 Plan. As of December 31, 2020, the aggregate number of shares reserved under the 2020 Incentive Plan and Prior plan, is 2,000,000 and 1,167,799 shares, respectively, and there were 2,000,000 shares available for grant as stock options, RSU’s, DSU’s or other stock and cash‑based incentive awards. The Company issues new shares of common stock to satisfy stock option exercises, RSU vesting, DSU issuances and other stock-based incentive awards.

The fair value of options granted, which is amortized to expense over the option service period, is estimated on the date of grant with the following weighted average assumptions:



	For the year ended December 31,
	2020		2019
Risk-free interest rate		1.45%		2.23 - 2.51%
Expected lives (in years)		4.94		4.74 - 5.06
Expected volatility		61.21%		56.14 - 56.57%
Expected dividend yield		0.00%		0.00%
Fair value per share	$	3.13	$	1.61 - 1.85

The following table summarizes activity, pricing and other information for the Company’s stock options for the years presented below:


	For the year ended December 31,
	2020			2019
		Weighted-			Weighted-
		Average			Average
	Number of	Exercise		Number of	Exercise
	Shares	Price		Shares	Price
Options outstanding at the beginning of the year	914,470	$	8.10	1,001,469	$	13.16
Options granted	30,000		5.34	592,500		3.66
Options exercised	(9,500)		4.84	(103,351)		3.34
Options forfeited/cancelled	(410,613)		7.35	(576,148)		13.20
Options outstanding at the end of the year	524,357		8.58	914,470		8.10
Options exercisable at the end of the year	327,366	$	11.46	328,933	$	14.36

The aggregate intrinsic value in the following table represents the total pre‑tax intrinsic value, based on the Company’s closing stock price of $3.04 and $5.26 per common share as of December 31, 2020 and 2019, respectively. Aggregate intrinsic value represents the amount of proceeds the option holders would have received had all option holders exercised their options and sold the stock as of that date.


	As of December 31,
	2020			2019
	Weighted-			Weighted-
	Average	Aggregate		Average	Aggregate
	Remaining	Intrinsic		Remaining	Intrinsic
	Life	Value		Life	Value
	(Years)	(in thousands)		(Years)	(in thousands)
Options outstanding at end of year	6.77	$	-	7.78	$	838
Options exercisable at end of year	5.96	$	-	5.55	$	25

As of December 31, 2020, there was approximately $216 thousand of total unrecognized compensation cost related to stock option compensation arrangements granted, net of estimated forfeitures. That cost is expected to be recognized over the remaining weighted average period of 1.1 years.

For the years ended December 31, 2020 and 2019, the aggregate grant‑date fair value of stock options granted was approximately $94 thousand and $1.1 million, respectively.

For the years ended December 31, 2020 and 2019, total stock‑based compensation expense was $702 thousand and $660 thousand, respectively.

Additional information regarding stock options outstanding as of December 31, 2020 is as follows:


		Stock Options Outstanding				Options Exercisable
			Weighted-
			Average	Weighted-				Weighted-
Exercise			Remaining	Average				Average
Price		Number	Contractual	Exercise		Number		Exercise
Range		Outstanding	Life in Years	Price		Exercisable		Price
$	3.22 - 3.74	93,001	7.88	$	3.59	32,676	$	3.59
	3.75 - 5.38	200,000	8.16		3.75	66,667		3.75
	5.39 - 9.85	27,582	5.01		7.01	24,249		6.62
	9.86 - 17.39	92,524	5.25		12.11	92,524		12.11
	17.40 - 20.49	57,250	5.55		17.40	57,250		17.40
	20.50	54,000	4.56		20.50	54,000		20.50
$	3.22 - 20.50	524,357	6.77	$	8.58	327,366	$	11.46

In addition to the options granted, the Company has granted DSUs, which vest between one and three year periods. The fair value of each DSU was measured on the date of grant using the grant date price of the Company’s stock. In 2020, the Company granted 15,000 DSU’s. For the year ended December 31, 2020, the aggregate grant‑date fair value of DSU’s granted was $80 thousand.

The following table summarizes activity, pricing and other information for the Company’s DSU’s for the year ended December 31, 2020:


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
DSU’s outstanding at the beginning of the year	54,500	$	6.61
DSU’s granted	15,000		5.34
DSU’s issued	—		—
DSU’s forfeited/cancelled	(15,000)		5.34
DSU’s outstanding at the end of the year	54,500	$	6.61

As of December 31, 2020, there was approximately $43 thousand of total unrecognized compensation cost related to the DSU compensation arrangements granted under the plan. This cost is expected to be recognized over a weighted average period of 1.2 years.

The following table summarizes activity, pricing and other information for the Company’s RSU’s for the ended December 31, 2020:


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
RSU’s outstanding at beginning of the year	75,000	$	3.75
RSU’s granted	242,961		5.34
RSU’s issued	(8,334)		3.75
RSU’s forfeited/cancelled	(42,406)		4.72
RSU’s outstanding at end of the year	267,221	$	5.04

For the year ended December 31, 2020, the aggregate grant‑date fair value of RSU’s granted was approximately $1.3 million. As of December 31, 2020, there was approximately $904 thousand of total unrecognized compensation cost related to the RSU compensation arrangements granted under the plan. This cost is expected to be recognized over a weighted average period of 2.0 years.

The following table summarizes activity, pricing and other information for the Company’s RSA’s for the year ended December 31, 2020:


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
RSA’s outstanding at beginning of the year	35,069	$	3.57
RSA’s granted	—		—
RSA’s issued	—		—
RSA’s forfeited/cancelled	(35,069)		3.57
RSA’s outstanding at end of the year	—	$	—

As of December 31, 2020, there were no outstanding RSA’s as the shares were forfeited prior to the minimum vesting requirement.

401(k) Plan

After meeting certain employment requirements, employees can participate in the Company’s 401(k) plan. Under the 401(k) plan, employees may contribute up to 25% of their salaries, pursuant to certain restrictions. Effective January 1, 2020, the Company matches 50% of the first 6% of employee contributions. Additional contributions may be made at the discretion of the board of directors. During the year ended December 31, 2020 and 2019, the Company recorded compensation expense of approximately $1.0 million and $751 thousand for basic matching contributions, respectively. There were no discretionary matching contributions recorded during the years ended December 31, 2020 or 2019.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2020
Related Party Transactions
Related Party Transactions	Note 15.—Related Party Transactions In May 2015, the Company issued the 2015 Convertible Notes to purchasers, some of which are related parties. See Note 5.—Debt—Convertible Notes.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2020
Subsequent Events
Subsequent Events	Note 16.—Subsequent Events Subsequent events have been evaluated through the date of this filing.

Summary of Business and Financial Statement Presentation including Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Summary of Business and Financial Statement Presentation including Significant Accounting Policies
Financial Statement Presentation	Basis of Presentation The accompanying consolidated financial statements of IMH and its subsidiaries (as defined above) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All significant inter‑company balances and transactions have been eliminated in consolidation. In addition, certain immaterial amounts in the prior periods’ consolidated financial statements have been reclassified to conform to the current year presentation. Management has made a number of material estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Additionally, other items affected by such estimates and assumptions include the valuation of trust assets and trust liabilities, contingencies, the estimated obligation of repurchase liabilities related to sold loans, the valuation of long-term debt, mortgage servicing rights (MSRs), mortgage loans held-for-sale (LHFS) and derivative instruments, including interest rate lock commitments (IRLCs). Actual results could differ from those estimates and assumptions.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include accounts of IMH and its wholly-owned subsidiaries. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as variable interest entities (VIEs), through arrangements that do not involve voting interests. The VIE framework requires a variable interest holder (counterparty to a VIE) to consolidate the VIE if that party has the power to direct activities of the VIE that most significantly impact the entity’s economic performance, will absorb a majority of the expected losses of the VIE, will receive a majority of the residual returns of the VIE, or both, and directs the significant activities of the entity. This party is considered the primary beneficiary of the entity. The determination of whether the Company meets the criteria to be considered the primary beneficiary of a VIE requires an evaluation of all transactions (such as investments, liquidity commitments, derivatives and fee arrangements) with the entity. The assessment of whether or not the Company is the primary beneficiary of the VIE is performed on an ongoing basis.
Fair Value Option	Fair Value Option The Company has elected the fair value option for mortgage servicing rights, mortgage loans held-for-sale, long-term debt and its consolidated non-recourse securitizations (securitized mortgage collateral and securitized mortgage borrowings). Elections were made to mitigate income statement volatility caused by differences in the measurement basis of elected instruments.
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less at the date of acquisition. The carrying amount of cash and cash equivalents approximates fair value. Cash balances that have restrictions as to the Company’s ability to withdraw funds are considered restricted cash. At December 31, 2020 and 2019, restricted cash totaled $5.6 million and $12.5 million, respectively. The restricted cash is the result of the terms of the Company’s warehouse borrowing agreements as well as collateral against letter of credit financing associated with corporate-owned life insurance (See Note 13.—Commitments and Contingencies). In accordance with the terms of the Master Repurchase Agreements related to the warehouse borrowings, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings (See Note 5.—Debt).
Mortgage Loans Held-for-Sale	Mortgage Loans Held‑for‑Sale Mortgage LHFS are accounted for using the fair value option, with changes in fair value recorded in gain on sale of loans, net in the accompanying consolidated statements of operations and comprehensive loss. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 825, Financial Instruments, loan origination fees and expenses are recognized in earnings as incurred and not deferred. Revenue derived from the Company’s mortgage lending activities includes loan fees collected at the time of origination and gain or loss from the sale of LHFS. Loan fees consist of fee income earned on all loan originations, including loans closed and held-for-sale. Loan fees are recognized as earned and consist of amounts collected for application and underwriting fees, fees on cancelled loans and discount points. The related direct loan origination costs are recognized when incurred and consists of broker fees and commissions. Gain or loss from the sale and mark‑to‑market adjustments of LHFS includes both realized and unrealized gains and losses and are included in gain on sale of loans, net in the accompanying consolidated statements of operations and comprehensive loss. The valuation of LHFS approximates a whole‑loan price, which includes the value of the related mortgage servicing rights. The Company primarily sells its LHFS to government sponsored entities (GSEs) and investors. The Company evaluates its loan sales for sales treatment. To the extent the transfer of loans qualifies as a sale, the Company derecognizes the loans and records a realized gain or loss on the sale date. In the event the Company determines that the transfer of loans does not qualify as a sale, the transfer would be treated as a secured borrowing. Interest on loans is recorded as income when earned and deemed collectible. LHFS are placed on nonaccrual status when any portion of the principal or interest is 90 days past due or earlier if factors indicate that the ultimate collectability of the principal or interest is not probable. Interest received from loans on nonaccrual status is recorded as income when collected. Loans return to accrual status when the principal and interest become current and it is probable that the amounts are fully collectible.
Mortgage Servicing Rights	Mortgage Servicing Rights The Company accounts for mortgage loan sales in accordance with FASB ASC 860, Transfers and Servicing. Upon sale of mortgage loans on a service-retained basis, the LHFS are removed from the consolidated balance sheets and mortgage servicing rights (MSRs) are recorded as an asset for servicing rights retained. The Company elects to measure MSRs at fair value as prescribed by FASB ASC 860-50-35, and as such, servicing assets or liabilities are valued using discounted cash flow modeling techniques using assumptions regarding future net servicing cash flow, including prepayment rates, discount rates, servicing cost and other factors. Changes in estimated fair value are reported in the accompanying consolidated statements of operations and comprehensive loss within loss on mortgage servicing rights, net. When the Company sells mortgage servicing rights, the Company records a gain or loss on such sale based on the selling price of the mortgage servicing rights less the carrying value and transaction costs. Gains and losses are reported in the accompanying consolidated statements of operations and comprehensive loss within loss on mortgage servicing rights, net.
Securitized Mortgage Collateral	Securitized Mortgage Collateral The Company’s long‑term mortgage portfolio primarily includes adjustable rate and, to a lesser extent, fixed rate non‑conforming mortgages and commercial mortgages that were acquired and originated by the Company’s mortgage and commercial operations prior to 2008. Non‑conforming mortgages may not have certain documentation or verifications that are required by government sponsored entities and, therefore, in making our credit decisions, the Company was more reliant upon the borrower’s credit score and the adequacy of the underlying collateral. Historically, the Company securitized mortgages in the form of collateralized mortgage obligations (CMO) or real estate mortgage investment conduits (REMICs). These securitizations are evaluated for consolidation based on the provisions of FASB ASC 810‑10‑25. Amounts consolidated are included in trust assets and liabilities as securitized mortgage collateral, real estate owned (REO) and securitized mortgage borrowings in the accompanying consolidated balance sheets. The Company accounts for securitized mortgage collateral at fair value, with changes in fair value during the period reflected in earnings. Fair value measurements are based on the Company’s estimated cash flow models, which incorporate assumptions, inputs of other market participants and quoted prices for the underlying bonds. The Company’s assumptions include its expectations of inputs that other market participants would use. These assumptions include judgments about the underlying collateral, prepayment speeds, credit losses, investor yield requirements, forward interest rates and certain other factors. Interest income on securitized mortgage collateral is recorded using the effective yield for the period based on the previous quarter‑end’s estimated fair value. Securitized mortgage collateral is generally not placed on nonaccrual status as the servicer advances the interest payments to the trust regardless of the delinquency status of the underlying mortgage loan, until it becomes apparent to the servicer that the advance is not collectible.
Real Estate Owned	Real Estate Owned Real estate owned on the consolidated balance sheets are primarily assets within the securitized trusts but are recorded as a separate asset for accounting and reporting purposes and are within the long‑term mortgage portfolio. REO, which consists of residential real estate acquired in satisfaction of loans, is carried at net realizable value, which includes the estimated fair value of the residential real estate less estimated selling and holding costs. Adjustments to the loan carrying value required at the time of foreclosure affect the carrying amount of REO. Subsequent write‑downs in the net realizable value of REO are included in change in fair value of net trust assets, including trust REO (losses) gains in the consolidated statements of operations and comprehensive loss.
Securitized Mortgage Borrowings	Securitized Mortgage Borrowings The Company records securitized mortgage borrowings in the accompanying consolidated balance sheets for the consolidated CMO and REMIC securitized trusts within the long-term mortgage portfolio. The debt from each issuance of a securitized mortgage borrowing is payable from the principal and interest payments on the underlying mortgages collateralizing such debt, as well as the proceeds from liquidations of REO. If the principal and interest payments are insufficient to repay the debt, the shortfall is allocated first to the residual interest holders (generally owned by the Company) then, if necessary, to the certificate holders (e.g. third party investors in the securitized mortgage borrowings) in accordance with the specific terms of the various respective indentures. Securitized mortgage borrowings typically are structured as one-month London Interbank Offered Rate (LIBOR) “floaters” and fixed rate securities with interest payable to certificate holders monthly. The maturity of each class of securitized mortgage borrowing is directly affected by the amount of net interest spread, overcollateralization and the rate of principal prepayments and defaults on the related securitized mortgage collateral. The actual maturity of any class of a securitized mortgage borrowing can occur later than the stated maturities of the underlying mortgages. When the Company issued securitized mortgage borrowings, the Company generally sought an investment grade rating for the Company’s securitized mortgages by nationally recognized rating agencies. To secure such ratings, it was often necessary to incorporate certain structural features that provide for credit enhancement. This generally included the pledge of collateral in excess of the principal amount of the securities to be issued, a bond guaranty insurance policy for some or all of the issued securities, or additional forms of mortgage insurance. These securitization transactions are non-recourse to the Company and the total loss exposure is limited to the Company’s initial net economic investment in each trust, which is referred to as a residual interest. The Company accounts for securitized mortgage borrowings at fair value, with changes in fair value during the period reflected in earnings. Fair value measurements are based on the Company’s estimated cash flow models, which incorporate assumptions, inputs of other market participants and quoted prices for the underlying bonds. The Company’s assumptions include its expectations of inputs that other market participants would use. These assumptions include judgments about the underlying collateral, prepayment speeds, credit losses, investor yield requirements, forward interest rates and certain other factors. Interest expense on securitized mortgage borrowings are recorded quarterly using the effective yield for the period based on the previous quarter‑end’s estimated fair value.
Leases	Leases On January 1, 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, “Leases (Topic 842)”, using the modified retrospective transition approach and elected the practical expedients transition option to recognize the adjustment in the period of adoption rather than in the earliest period presented. On January 1, 2019, the Company recognized right of use (ROU) assets of $19.7 million (net of the reversal of $3.8 million deferred rent liability) and lease liabilities of $23.4 million which are included in other assets and other liabilities, respectively, in the accompanying consolidated balance sheets. (See Note 13.— Commitments and Contingencies). The Company has three operating leases for office space expiring at various dates through 2024 and one financing lease which concludes in 2023. The Company determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its ROU assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. When the Company cannot readily determine the rate implicit in the lease, the Company determines its incremental borrowing rate by using the rate of interest that it would have to pay to borrow on a collateralized basis over a similar term. As a practical expedient permitted under Topic 842, the Company elected to account for the lease and non-lease components as a single lease component for all leases of which it is the lessee. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and lease expense for these leases is recognized on a straight-line basis over the lease term. For operating leases existing prior to January 1, 2019, the rate used for the remaining lease term was determined as of the date of adoption.
Derivative Instruments	Derivative Instruments In accordance with FASB ASC 815‑10 Derivatives and Hedging—Overview, the Company records all derivative instruments at fair value. The Company has accounted for all its derivatives as non‑designated hedge instruments or free‑standing derivatives. The mortgage lending operation enters into IRLCs with consumers to originate mortgage loans at a specified interest rate. These IRLCs are accounted for as derivative instruments. The fair values of IRLCs utilize current secondary market prices for underlying loans and estimated servicing value with similar coupons, maturities and credit quality, subject to the anticipated loan funding probability (pull‑through rate). The fair value of IRLCs is subject to change primarily due to changes in interest rates and the estimated pull‑through rate. The Company reports IRLCs within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations and comprehensive loss within gain on sale of loans, net. The Company hedges the changes in fair value associated with changes in interest rates related to IRLCs and uncommitted LHFS by using forward delivery commitments on mortgage-backed securities, including Federal National Mortgage Association (Fannie Mae or FNMA) and Government National Mortgage Association (Ginnie Mae or GNMA) mortgage‑backed securities known as to‑be‑announced mortgage‑backed securities (TBA MBS or Hedging Instruments) as well as forward delivery commitments on whole loans. The Hedging Instruments and forward delivery loan commitments are used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market and are accounted for as derivative instruments. The fair value of Hedging Instruments and forward delivery loan commitments are subject to change primarily due to changes in interest rates. The Company reports Hedging Instruments and forward delivery loan commitments within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations and comprehensive loss within gain on sale of loans, net. The fair value of IRLCs and Hedging Instruments are represented as derivative assets, lending, net and derivative liabilities, lending, net in Note 9.—Fair Value of Financial Instruments.
Long-term Debt	Long‑term Debt Long‑term debt (junior subordinated notes) is reported at fair value. These securities are measured based upon an analysis prepared by management, which considers the Company’s own credit risk and discounted cash flow analysis. With the adoption of ASU 2016-01 in 2018, which applies when the Company elects the fair value election on its own debt, the Company effectively bifurcates the market and instrument specific credit risk components of changes in long-term debt. The market portion continues to be a component of net loss as the change in fair value of long-term debt, but the instrument specific credit risk portion is a component of accumulated other comprehensive loss in the accompanying consolidated statements of operations and comprehensive loss, as required by the adoption of ASU 2016-01.
Repurchase Reserve	Repurchase Reserve The Company sells mortgage loans in the secondary market, including U.S. GSEs, and issues mortgage‑backed securities through Ginnie Mae and Fannie Mae. When the Company sells or issues securities, it makes customary representations and warranties to the purchasers about various characteristics of each loan such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local laws. In the event of a breach of its representations and warranties, the Company may be required to either repurchase the mortgage loans with the identified defects or indemnify the investor or insurer for any loss. In addition, the Company may be required to repurchase loans as a result of borrower fraud or if a payment default occurs on a mortgage loan shortly after its sale. The Company’s loss may be reduced by proceeds from the sale or liquidation of the repurchased loan. Also, the Company’s loss may be reduced by any recourse it has to correspondent lenders that, in turn, had sold such mortgage loans to the Company and breached similar or other representations and warranties. In such event, the Company has the right to seek a recovery of related repurchase losses from that correspondent lender. The Company records a provision for losses relating to such representations and warranties as part of its loan sale transactions. The method used to estimate the liability for representations and warranties is a function of the representations and warranties given and considers a combination of factors, including, but not limited to, estimated future defaults and loan repurchase rates and the potential severity of loss in the event of defaults including any loss on sale or liquidation of the repurchased loan and the probability of reimbursement by the correspondent loan seller. The Company establishes a liability at the time loans are sold and continually updates its estimated repurchase liability. The level of the repurchase liability for representations and warranties is difficult to estimate and requires considerable management judgment. The level of mortgage loan repurchase losses is dependent on economic factors, investor demands for loan repurchases and other external conditions that may change over the lives of the underlying loans.
Revenue Recognition for Fees from Services	Revenue Recognition for Fees from Services The Company follows FASB ASC 606, Revenue Recognition, which provides guidance on the application of GAAP to selected revenue recognition issues related to our real estate services fees. Under FASB ASC 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from financial instruments that are not within the scope of FASB ASC 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of operations and comprehensive loss, was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. The revenues from these services are recognized in income in the period when services are rendered and collectability is reasonably certain.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred and are included in business promotion expense in the accompanying consolidated statements of operations and comprehensive loss. For the years ended December 31, 2020 and 2019, business promotion expense was $3.9 million and $9.3 million, respectively.
Equity-Based Compensation	Equity‑Based Compensation The Company accounts for stock‑based compensation in accordance with FASB ASC 718 Compensation—Stock Compensation. The Company uses the grant-date fair value of equity awards to determine the compensation cost associated with each award. Grant-date fair value is determined using the Black-Scholes pricing model and assumptions noted in Note 14.—Share Based Payments and Employee Benefit Plans, adjusted for unique characteristics of the specific awards. Compensation cost for service-based equity awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. FASB ASC 718 requires forfeitures to be estimated at the time of grant and prospectively revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Stock‑based compensation expense is recorded net of estimated forfeitures for the years ended December 31, 2020 and 2019, such that the expense was recorded only for those stock‑based awards that were expected to vest during such periods. The cost of equity-based compensation is recorded to personnel expense. Refer to Note 14.—Share Based Payments and Employee Benefit Plans.
Income Taxes	Income Taxes In accordance with FASB ASC 740, Income Taxes, the Company records income tax expense as well as deferred tax assets and liabilities. Current income tax expense or benefit approximates taxes to be paid or refunded for the current period, respectively, and includes income tax expense related to uncertain tax positions. The Company determines deferred income taxes using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and recognizes enacted changes in tax rates and laws in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized subject to management’s judgment that realization is “more likely than not.” Uncertain tax positions that meet the more likely than not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. The Company is subject to federal income taxes as a regular (Subchapter C) corporation and files a consolidated U.S. federal income tax return on qualifying subsidiaries. The Company files federal and various states income tax returns in the U.S. The Company adopted ASU 2019-12 on a prospective basis on January 1, 2020 (See Note 11.—Income Taxes). The most significant impact to the Company included the removal of the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income). The changes also add a requirement for an entity to reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The adoption of this standard did not have a material impact on the Company's consolidated financial statements.
Loss per Common Share	Loss Per Common Share Basic loss per common share is computed on the basis of the weighted average number of shares outstanding for the year divided by net loss for the year. Diluted loss per common share is computed on the basis of the weighted average number of shares and dilutive common equivalent shares outstanding for the year divided by net loss for the year, unless anti‑dilutive. Refer to Note 10.—Reconciliation of Loss Per Share.
Recent Accounting Pronouncements	Accounting Pronouncements Adopted In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” The ASU eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU modifies disclosure requirements for Level 3 measurements. This ASU is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. The Company adopted this guidance on January 1, 2020, and the adoption of this ASU had no significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40).” This ASU addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted this guidance on January 1, 2020, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. In December 2019, FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, Income Taxes. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for public business entities for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The Company early adopted ASU 2019-12 on a prospective basis on January 1, 2020 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” (ASU 2016-13), which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses”, for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging,” and “Topic 825, Financial Instruments (ASU 2019-04),” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326)”, which is also effective with the adoption of ASU 2016-13. In October 2019, the FASB voted to delay the implementation date for smaller reporting companies until January 1, 2023. We will adopt this ASU on its effective date of January 1, 2023. We do not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the benefits of) reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective and apply to all entities, subject to meeting certain criteria, that have contract, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in ASU 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact the adoption of this ASU would have on the Company’s consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective January 1, 2024, for the Company. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. The Company does not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements.

Mortgage Loans Held-for-Sale (Tables)

12 Months Ended

Dec. 31, 2020

Mortgage Loans Held-for-Sale

Summary of the unpaid principal balance (UPB ) of mortgage loans held-for-sale by type


	December 31,		December 31,
	2020		2019
Government (1)	$	7,924	$	51,019
Conventional (2)		141,139		436,040
Jumbo & Non-qualified mortgages (NonQM)		11,064		274,834
Fair value adjustment (3)		4,295		20,250
Total mortgage loans held-for-sale	$	164,422	$	782,143

(1)

Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA).

(2)

Includes loans eligible for sale to Fannie Mae and Federal home Loan Mortgage Corporation (Freddie Mac or FHLMC).

(3)

Changes in fair value are included in gain on sale of loans, net on the accompanying consolidated statements of operations and comprehensive loss.

Schedule of gain (loss) on sale of loans, net


	For the Year Ended
	December 31,
	2020		2019
Gain on sale of mortgage loans	$	59,330	$	111,787
Premium from servicing retained loan sales		2,094		2,491
Unrealized (loss) gain from derivative financial instruments		(7)		4,472
Losses from derivative financial instruments		(11,040)		(5,627)
Mark to market (loss) gain on LHFS		(15,955)		15,810
Direct origination expenses, net		(15,191)		(24,616)
Change in provision for repurchases		(5,227)		(5,487)
Gain on sale of loans, net	$	14,004	$	98,830

Mortgage Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2020

Mortgage Servicing Rights

Schedule of changes in the fair value of MSRs


	December 31,		December 31,
	2020		2019
Balance at beginning of year	$	41,470	$	64,728
Additions from servicing retained loan sales		2,094		2,491
Reductions from bulk sales		(21,263)		—
Other		—		22
Changes in fair value (1)		(21,962)		(25,771)
Fair value of MSRs at end of period	$	339	$	41,470

(1)

Changes in fair value are included within loss on mortgage servicing rights, net in the accompanying consolidated statements of operations and comprehensive loss.

Schedule of the outstanding loans serviced by entity


	December 31,		December 31,
	2020		2019
Government insured	$	30,524	$	105,442
Conventional		—		4,826,407
Total loans serviced (1)	$	30,524	$	4,931,849

(1)

The MSR Financing line expired in May 2020. No collateral was pledged as part of the MSR Financing at December 31, 2019.

Schedule of hypothetical changes in the fair values of MSRs


	December 31,		December 31,
Mortgage Servicing Rights Sensitivity Analysis	2020		2019
Fair value of MSRs	$	339	$	41,470
Prepayment Speed:
Decrease in fair value from 10% adverse change		(13)		(1,850)
Decrease in fair value from 20% adverse change		(26)		(3,631)
Decrease in fair value from 30% adverse change		(38)		(5,325)
Discount Rate:
Decrease in fair value from 10% adverse change		(13)		(1,330)
Decrease in fair value from 20% adverse change		(25)		(2,579)
Decrease in fair value from 30% adverse change		(37)		(3,753)

Schedule of gain (loss) on mortgage servicing rights


	For the Year Ended
	December 31,
	2020		2019
Change in fair value of mortgage servicing rights	$	(21,962)	$	(25,771)
(Loss) gain on sale of mortgage servicing rights		(6,547)		860
Loss on mortgage servicing rights, net	$	(28,509)	$	(24,911)

Schedule of components of servicing (expenses) fees, net


	For the Year Ended
	December 31,
	2020		2019
Contractual servicing fees	$	5,159	$	15,147
Late and ancillary fees		67		180
Subservicing and other costs		(1,623)		(2,384)
Servicing fees, net	$	3,603	$	12,943

Other Assets (Tables)

12 Months Ended

Dec. 31, 2020

Other Assets

Schedule of other assets


	December 31,		December 31,
	2020		2019
Right of use asset (See Note 13)	$	13,512	$	17,169
Corporate-owned life insurance (See Note 13)		10,659		—
Derivative assets – lending (See Note 7)		7,275		7,791
Prepaid expenses		3,429		3,125
Accounts receivable, net		3,190		14,265
Other		1,103		1,110
Servicing advances		947		2,109
Premises and equipment, net		930		1,250
Accrued interest receivable		286		2,131
Loans eligible for repurchase from Ginnie Mae		114		1,686
Real estate owned – outside trusts		79		152
Total other assets	$	41,524	$	50,788

Schedule of premises and equipment and accumulated depreciation


	December 31,
	2020		2019
Premises and equipment	$	6,230	$	5,829
Less: Accumulated depreciation		(5,300)		(4,579)
Total premises and equipment, net	$	930	$	1,250

Debt (Tables)

12 Months Ended

Dec. 31, 2020

Long-term Debt

Schedule of contractual reductions of debt


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Warehouse borrowings	$	151,932	$	151,932	$	—	$	—	$	—
Convertible notes		20,000		—		20,000		—		—
Long-term debt		62,000		—		—		—		62,000
Total debt obligations	$	233,932	$	151,932	$	20,000	$	—	$	62,000

Schedule of information on warehouse borrowings

The following table presents certain information on warehouse borrowings for the periods indicated:


	Maximum		Balance Outstanding at				Allowable
	Borrowing		December 31,		December 31,		Advance	Rate
	Capacity		2020		2019		Rates (%)	Range	Maturity Date
Short-term borrowings:
Repurchase agreement 1	$	50,000	$	49,963	$	72,971	90 - 98	1ML + 2.00 - 2.25%	November 24, 2021
Repurchase agreement 2		200,000		51,310		119,838	100	1ML + 1.75%	August 27, 2021
Repurchase agreement 3		300,000		50,659		72,666	100	Note Rate - 0.375%	June 22, 2021
Repurchase agreement 4		—		—		25,953	—	—	May 29, 2020
Repurchase agreement 5		—		—		250,722	—	—	May 29, 2020
Repurchase agreement 6		—		—		159,413	—	—	June 25, 2020
Total warehouse borrowings	$	550,000	$	151,932	$	701,563

The following table presents certain information on warehouse borrowings for the periods indicated:


	For the year ended
	December 31,
	2020			2019
Maximum outstanding balance during the year	$	810,818		$	971,595
Average balance outstanding for the year		252,565			547,421
UPB of underlying collateral (mortgage loans)		153,675			763,309
Weighted average interest rate for period		3.74	%		4.30	%

Schedule of certain information on MSR Financings


	For the year ended
	December 31,
	2020			2019
Maximum outstanding balance during the year	$	15,000		$	5,000
Average balance outstanding for the year		2,943			200
Weighted average rate for period		3.91	%		8.00	%

Junior Subordinated Notes

Long-term Debt

Schedule of remaining principal balance and fair value


	December 31,
	2020		2019
Junior Subordinated Notes (1)	$	62,000	$	62,000
Fair value adjustment		(17,587)		(16,566)
Total Junior Subordinated Notes	$	44,413	$	45,434

(1)

Stated maturity of March 2034; requires quarterly interest payments at a variable rate of 3-month LIBOR plus 3.75% per annum. At December 31, 2020, the interest rate was 3.99%.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
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+ Details

Securitized Mortgage Trusts (Tables)

12 Months Ended

Dec. 31, 2020

Securitized Mortgage Collateral

Schedule of securitized mortgage trust assets


	December 31,		December 31,
	2020		2019
Securitized mortgage collateral, at fair value	$	2,100,175	$	2,628,064
REO, at net realizable value (NRV)		3,094		6,682
Total securitized mortgage trust assets	$	2,103,269	$	2,634,746

Summary of securitized mortgage collateral


	December 31,		December 31,
	2020		2019
Mortgages secured by residential real estate	$	2,205,575	$	2,649,997
Mortgages secured by commercial real estate		170,418		210,536
Fair value adjustment		(275,818)		(232,469)
Total securitized mortgage collateral, at fair value	$	2,100,175	$	2,628,064

Schedule of real estate owned


		December 31,	December 31,
	2020		2019
REO	$	10,140	$	21,195
Impairment (1)		(6,967)		(14,361)
Ending balance	$	3,173	$	6,834
REO inside trusts	$	3,094	$	6,682
REO outside trusts		79		152
Total	$	3,173	$	6,834

(1)

Impairment represents the cumulative write‑downs of net realizable value subsequent to foreclosure.

Schedule of securitized mortgage trust liabilities


	December 31,		December 31,
	2020		2019
Securitized mortgage borrowings	$	2,086,557	$	2,619,210

Schedule of securitized mortgage borrowings


			Securitized
			mortgage
			borrowings
			outstanding as of
			December 31,				Range of Interest Rates (%)
								Interest	Interest
								Rate	Rate
	Original						Fixed	Margins over	Margins after
	Issuance						Interest	One-Month	Contractual
Year of Issuance	Amount		2020		2019		Rates	LIBOR (1)	Call Date (2)
2002	$	3,876.1	$	3.4	$	3.9	5.25 - 12.00	0.27 - 2.75	0.54 - 3.68
2003		5,966.1		19.1		26.8	4.34 - 12.75	0.27 - 3.00	0.54 - 4.50
2004		17,710.7		287.3		354.3	3.58 - 5.56	0.25 - 2.50	0.50 - 3.75
2005		13,387.7		1,404.6		1,581.7	—	0.24 - 2.90	0.48 - 4.35
2006		5,971.4		1,860.3		2,018.0	6.25	0.10 - 2.75	0.20 - 4.13
2007		3,860.5		1,012.5		1,121.1	—	0.06 - 2.00	0.12 - 3.00
Subtotal contractual principal balance (3)				4,587.2		5,105.8
Fair value adjustment (4)				(2,500.6)		(2,486.6)
Total securitized mortgage borrowings			$	2,086.6	$	2,619.2

(1)

One-month LIBOR was 0.14% as of December 31, 2020.

(2)

Interest rate margins are generally adjusted when the unpaid principal balance is reduced to less than 10‑20% of the original issuance amount, or if certain other triggers are met.

(3)

Represents the outstanding balance in accordance with trustee reporting.

(4)

Fair value adjustment is inclusive of $2.2 billion in bond losses at December 31, 2020 and 2019.

Schedule of expected principal reductions of securitized mortgage borrowings


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Warehouse borrowings	$	151,932	$	151,932	$	—	$	—	$	—
Convertible notes		20,000		—		20,000		—		—
Long-term debt		62,000		—		—		—		62,000
Total debt obligations	$	233,932	$	151,932	$	20,000	$	—	$	62,000

Schedule of changes in fair value of net trust assets, including trust REO gains


	For the Year Ended
	December 31,
	2020		2019
Change in fair value of net trust assets, excluding REO	$	(13,081)	$	(3,397)
Gains (losses) from REO		7,393		(6,434)
Change in fair value of net trust assets, including trust REO gains (losses)	$	(5,688)	$	(9,831)

Securitized mortgage borrowings

Securitized Mortgage Collateral

Schedule of expected principal reductions of securitized mortgage borrowings


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Securitized mortgage borrowings (1)	$	4,587.2	$	452.5	$	587.4	$	381.2	$	3,166.1

(1)

Represents the outstanding balance in accordance with trustee reporting.

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments

Schedule of information for derivative assets and liabilities - lending


					Total Gains (Losses)
	Notional Amount				For the Year Ended
	December 31,		December 31,		December 31,
	2020		2019		2020		2019
Derivative – IRLC's (1)	$	450,913	$	419,035	$	(516)	$	4,440
Derivative – TBA MBS (2)		45,000		485,459		(10,531)		(5,595)
Derivative – Forward delivery loan commitment (3)		20,000		232,530		—		—

(1)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive loss.

(2)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive loss.

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579240-113959

+ Details

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value of Financial Instruments

Schedule of estimated fair value of financial instruments included in consolidated financial statements


	December 31, 2020								December 31, 2019
	Carrying		Estimated Fair Value						Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	54,150	$	54,150	$	—	$	—	$	24,666	$	24,666	$	—	$	—
Restricted cash		5,602		5,602		—		—		12,466		12,466		—		—
Mortgage loans held-for-sale		164,422		—		164,422		—		782,143		—		782,143		—
Mortgage servicing rights		339		—		—		339		41,470		—		—		41,470
Derivative assets, lending, net (1)		7,275		—		—		7,275		7,791		—		—		7,791
Securitized mortgage collateral		2,100,175		—		—		2,100,175		2,628,064		—		—		2,628,064

Liabilities
Warehouse borrowings	$	151,932	$	—	$	151,932	$	—	$	701,563	$	—	$	701,563	$	—
Convertible notes		20,000		—		—		20,000		24,996		—		—		24,996
Long-term debt		44,413		—		—		44,413		45,434		—		—		45,434
Securitized mortgage borrowings		2,086,557		—		—		2,086,557		2,619,210		—		—		2,619,210
Derivative liabilities, lending, net (2)		143		—		143		—		651		—		651		—

(1)

Represents IRLCs and are included in other assets in the accompanying consolidated balance sheets.

(2)

Represents Hedging Instruments and are included in other liabilities in the accompanying consolidated balance sheets.

Schedule of assets and liabilities that are measured at estimated fair value on recurring basis


	Recurring Fair Value Measurements
	December 31, 2020						December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Mortgage loans held-for-sale	$	—	$	164,422	$	—	$	—	$	782,143	$	—
Derivative assets, lending, net (1)		—		—		7,275		—		—		7,791
Mortgage servicing rights		—		—		339		—		—		41,470
Securitized mortgage collateral		—		—		2,100,175		—		—		2,628,064
Total assets at fair value	$	—	$	164,422	$	2,107,789	$	—	$	782,143	$	2,677,325
Liabilities
Securitized mortgage borrowings	$	—	$	—	$	2,086,557	$	—	$	—	$	2,619,210
Long-term debt		—		—		44,413		—		—		45,434
Derivative liabilities, lending, net (2)		—		143		—		—		651		—
Total liabilities at fair value	$	—	$	143	$	2,130,970	$	—	$	651	$	2,664,644

(1)

(2)

At December 31, 2020 and 2019, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets.

Schedule of reconciliation for all assets and liabilities measured at estimated fair value on recurring basis using significant unobservable inputs (Level 3)


	Level 3 Recurring Fair Value Measurements
	For the Year Ended December 31, 2020

							Interest
	Securitized		Securitized		Mortgage		rate lock		Long-
	mortgage		mortgage		servicing		commitments,		term
	collateral		borrowings		rights		net		debt
Fair value, December 31, 2019	$	2,628,064	$	(2,619,210)	$	41,470	$	7,791	$	(45,434)
Total (losses) gains included in earnings:
Interest income (1)		747		—		—		—		—
Interest expense (1)		—		(65,421)		—		—		(850)
Change in fair value		(92,562)		79,481		(21,962)		(516)		1,899
Change in instrument specific credit risk		—		—		—		—		(28)	(2)
Total (losses) gains included in earnings		(91,815)		14,060		(21,962)		(516)		1,021
Transfers in and/or out of Level 3		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—
Issuances		—		—		2,094		—		—
Settlements		(436,074)		518,593		(21,263)		—		—
Fair value, December 31, 2020	$	2,100,175	$	(2,086,557)	$	339	$	7,275	$	(44,413)
Unrealized (losses) gains still held (3)	$	(275,818)	$	2,500,674	$	339	$	7,275	$	17,587

(1)

(2)

Amount represents the change in instrument specific credit risk in other comprehensive loss in the consolidated statements of operations and comprehensive loss.

(3)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at December 31, 2020.


	Level 3 Recurring Fair Value Measurements
	For the Year Ended December 31, 2019

							Interest
	Securitized		Securitized		Mortgage		rate lock		Long-
	mortgage		mortgage		servicing		commitments,		term
	collateral		borrowings		rights		net		debt
Fair value, December 31, 2018	$	3,157,071	$	(3,148,215)	$	64,728	$	3,351	$	(44,856)
Total gains (losses) included in earnings:
Interest income (1)		11,279		—		—		—		—
Interest expense (1)		—		(38,127)		—		—		(425)
Change in fair value		52,499		(55,896)		(25,771)		4,440		(1,429)
Change in instrument specific credit risk		—		—		—		—		1,276	(2)
Total gains (losses) included in earnings		63,778		(94,023)		(25,771)		4,440		(578)
Transfers in and/or out of Level 3		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—
Issuances		—		—		2,491		—		—
Settlements		(592,785)		623,028		22		—		—
Fair value, December 31, 2019	$	2,628,064	$	(2,619,210)	$	41,470	$	7,791	$	(45,434)
Unrealized (losses) gains still held (3)	$	(232,469)	$	2,486,615	$	41,470	$	7,791	$	16,566

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $9.4 million for the year ended December 31, 2019. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive loss is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

Amount represents the change in instrument specific credit risk in other comprehensive loss in the consolidated statements of operations and comprehensive loss.

(3)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that were still held and reflected in the fair values at December 31, 2019.

Schedule of quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and non-recurring basis


	Estimated		Valuation	Unobservable	Range of		Weighted
Financial Instrument	Fair Value		Technique	Input	Inputs		Average
Assets and liabilities backed by real estate
Securitized mortgage collateral, and	$	2,100,175	Discounted Cash Flow	Prepayment rates	2.0 - 25.6	%	12.4	%
Securitized mortgage borrowings		(2,086,557)		Default rates	0.07 - 24.1	%	3.4	%
				Loss severities	0.01 - 97.7	%	64.1	%
				Discount rates	1.1 - 25.0	%	2.6	%
Other assets and liabilities
Mortgage servicing rights	$	339	Discounted Cash Flow	Discount rates	12.5 - 15.0	%	12.8	%
				Prepayment rates	9.1 - 27.5	%	12.3	%
Derivative assets - IRLCs, net		7,275	Market pricing	Pull-through rates	21.6 - 99.9	%	69.0	%
Long-term debt		(44,413)	Discounted Cash Flow	Discount rates	8.3	%	8.3	%

Schedule of changes in recurring fair value measurements included in net loss


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Loss
	For the Year Ended December 31, 2020
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Income		Gain on Sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of Loans, net		Total
Securitized mortgage collateral	$	747	$	—	$	(92,562)		$	—	$	—	$	—	$	(91,815)
Securitized mortgage borrowings		—		(65,421)		79,481			—		—		—		14,060
Long-term debt		—		(850)		—			1,899		—		—		1,049
Mortgage servicing rights (2)		—		—		—			—		(21,962)		—		(21,962)
Mortgage loans held-for-sale		—		—		—			—		—		(15,955)		(15,955)
Derivative assets — IRLCs		—		—		—			—		—		(516)		(516)
Derivative liabilities — Hedging Instruments		—		—		—			—		—		509		509
Total	$	747	$	(66,271)	$	(13,081)	(3)	$	1,899	$	(21,962)	$	(15,962)	$	(114,630)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in loss on mortgage servicing rights, net in the consolidated statements of operations and comprehensive loss.

(3)

For the year ended December 31, 2020, change in the fair value of trust assets, excluding REO was $13.1 million.


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Loss
	For the Year Ended December 31, 2019
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Income		Gain on Sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of Loans, net		Total
Securitized mortgage collateral	$	11,279	$	—	$	52,499		$	—	$	—	$	—	$	63,778
Securitized mortgage borrowings		—		(38,127)		(55,896)			—		—		—		(94,023)
Long-term debt		—		(425)		—			(1,429)		—		—		(1,854)
Mortgage servicing rights (2)		—		—		—			—		(25,771)		—		(25,771)
Mortgage loans held-for-sale		—		—		—			—		—		15,810		15,810
Derivative assets — IRLCs		—		—		—			—		—		4,440		4,440
Derivative liabilities — Hedging Instruments		—		—		—			—		—		32		32
Total	$	11,279	$	(38,552)	$	(3,397)	(3)	$	(1,429)	$	(25,771)	$	20,282	$	(37,588)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in loss on mortgage servicing rights, net in the consolidated statements of operations and comprehensive loss.

(3)

For the year ended December 31, 2019, change in the fair value of trust assets, excluding REO was $3.4 million.

Schedule of information for derivative assets and liabilities - lending


					Total Gains (Losses)
	Notional Amount				For the Year Ended
	December 31,		December 31,		December 31,
	2020		2019		2020		2019
Derivative – IRLC's (1)	$	450,913	$	419,035	$	(516)	$	4,440
Derivative – TBA MBS (2)		45,000		485,459		(10,531)		(5,595)
Derivative – Forward delivery loan commitment (3)		20,000		232,530		—		—

(1)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive loss.

(2)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive loss.

Schedule of financial and non-financial assets and liabilities measured using nonrecurring fair value measurements

The following table presents financial and non‑financial assets and liabilities measured using nonrecurring fair value measurements at December 31, 2020 and 2019, respectively:


	Nonrecurring Fair Value Measurements
	December 31, 2020						December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
REO (1)	$	—	$	3,173	$	—	$	—	$	6,834	$	—
ROU asset		—		—		13,512		—		—		—

(1)

Balance represents REO at December 31, 2020 and December 31, 2019 which has been impaired subsequent to foreclosure.


	Total Gains (Losses) (1)
	For the Year Ended December 31,
	2020		2019
REO (2)	$	7,393	$	(6,434)

(1)

Total gains (losses) reflect gains (losses) from all nonrecurring measurements during the period.

(2)

- Definition

+ References

+ Details

Reconciliation of Loss Per Common Share (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation of Loss Per Common Share

Schedule of computation of basic and diluted earnings per common share


	For the Three Months Ended				For the Year Ended
	December 31,				December 31,
	2020		2019		2020		2019
Numerator for basic loss per share:
Net loss	$	(2,190)	$	(677)	$	(88,150)	$	(7,977)

Numerator for diluted loss per share:
Net loss	$	(2,190)	$	(677)	$	(88,150)	$	(7,977)
Interest expense attributable to convertible notes (1)		—		—		—		—
Net loss plus interest expense attributable to convertible notes	$	(2,190)	$	(677)	$	(88,150)	$	(7,977)

Denominator for basic loss per share (2):
Basic weighted average common shares outstanding during the year		21,255		21,220		21,251		21,189

Denominator for diluted loss per share (2):
Basic weighted average common shares outstanding during the year		21,255		21,220		21,251		21,189
Net effect of dilutive convertible notes and warrants (1)		—		—		—		—
Net effect of dilutive stock options, DSU’s, RSA's and RSU's (1)		—		—		—		—
Diluted weighted average common shares		21,255		21,220		21,251		21,189
Net loss per common share:
Basic	$	(0.10)	$	(0.03)	$	(4.15)	$	(0.38)
Diluted	$	(0.10)	$	(0.03)	$	(4.15)	$	(0.38)

(1)

Adjustments to diluted loss per share for the Notes for the years ended December 31, 2020 and 2019, were excluded from the calculation, as they were anti-dilutive.

(2)

Share amounts presented in thousands.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of income taxes


	For the year ended December 31,
	2020		2019
Current income taxes:
Federal	$	8	$	(362)
State		125		117
Total current income tax expense (benefit)		133		(245)
Deferred income taxes:
Federal		—		—
State		—		—
Total deferred income tax expense		—		—
Total income tax expense (benefit)	$	133	$	(245)

Schedule of deferred tax assets and liabilities temporary differences between the financial statement carrying value and the tax basis of assets


	For the year ended December 31,
	2020		2019
Deferred tax assets:
Federal and state net operating losses	$	173,652	$	163,676
Mortgage securities		54,624		49,927
Depreciation and amortization		26,752		29,127
Capital loss carryover		171		169
Compensation and other accruals		3,060		3,535
Repurchase reserve		2,200		2,765
Total gross deferred tax assets		260,459		249,199
Deferred tax liabilities:
Fair value adjustments on long-term debt		(4,639)		(4,391)
Mortgage servicing rights		(106)		(11,549)
Corporate-owned life insurance		(968)		—
Total gross deferred tax liabilities		(5,713)		(15,940)
Valuation allowance		(254,746)		(233,259)
Total net deferred tax assets	$	—	$	—

Schedule of a reconciliation of income taxes to the statutory federal corporate income tax rates


	For the year ended December 31,
	2020		2019
Expected income tax expense	$	(18,483)	$	(1,727)
State tax expense, net of federal benefit		99		106
State rate change		(731)		(269)
Change in valuation allowance		19,016		1,425
Corporate-owned life insurance interest and premiums		170		—
Other		62		220
Total income tax expense (benefit)	$	133	$	(245)

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting

Reconciliation of earnings from segment to consolidated


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Year Ended December 31, 2020:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	14,004	$	—	$	—	$	—	$	14,004
Servicing fees, net		3,603		—		—		—		3,603
Loss on mortgage servicing rights, net		(28,509)		—		—		—		(28,509)
Real estate services fees, net		—		1,312		—		—		1,312
Other revenue		135		—		143		1,220		1,498
Other operating expense		(60,869)		(1,485)		(633)		(18,286)		(81,273)
Other income (expense)		2,366		—		1,344		(2,362)		1,348
Net (loss) earnings before income tax expense	$	(69,270)	$	(173)	$	854	$	(19,428)		(88,017)
Income tax expense										133
Net loss									$	(88,150)


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Year Ended December 31, 2019:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	98,830	$	—	$	—	$	—	$	98,830
Servicing fees, net		12,943		—		—		—		12,943
Loss on mortgage servicing rights, net		(24,911)		—		—		—		(24,911)
Real estate services fees, net		—		3,287		—		—		3,287
Other revenue		157		—		260		62		479
Other operating expense		(79,536)		(1,391)		(531)		(15,462)		(96,920)
Other income (expense)		6,067		—		(6,189)		(1,808)		(1,930)
Net earnings (loss) before income tax expense	$	13,550	$	1,896	$	(6,460)	$	(17,208)	$	(8,222)
Income tax benefit										(245)
Net loss									$	(7,977)

Reconciliation of assets from segment to consolidated


Balance Sheet Items as of	Mortgage		Real Estate		Long-term		Corporate
December 31, 2020:	Lending		Services		Portfolio		and other		Consolidated
Cash and cash equivalents	$	50,968	$	501	$	—		2,681	$	54,150
Restricted cash		5,602		—		—		—		5,602
Mortgage loans held-for-sale		164,422		—		—		—		164,422
Mortgage servicing rights		339		—		—		—		339
Trust assets		—		—		2,103,269		—		2,103,269
Other assets (1)		12,510		2		130		28,882		41,524
Total assets	$	233,841	$	503	$	2,103,399	$	31,563	$	2,369,306
Total liabilities	$	166,285	$	—	$	2,131,178	$	56,192	$	2,353,655


Balance Sheet Items as of	Mortgage		Real Estate		Long-term		Corporate
December 31, 2019:	Lending		Services		Portfolio		and other		Consolidated
Cash and cash equivalents	$	23,647	$	4	$	—	$	1,015	$	24,666
Restricted cash		12,466		—		—		—		12,466
Mortgage loans held-for-sale		782,143		—		—		—		782,143
Mortgage servicing rights		41,470		—		—		—		41,470
Trust assets		—		—		2,634,746		—		2,634,746
Other assets (1)		29,121		2		66		21,599		50,788
Total assets	$	888,847	$	6	$	2,634,812	$	22,614	$	3,546,279
Total liabilities	$	723,965	$	—	$	2,664,946	$	53,131	$	3,442,042

(1)

All segment asset balances exclude intercompany balances.

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of maturities of operating leases

The following table presents the maturities of the Company’s operating lease liabilities as of December 31, 2020:


Year 2021	$	4,639
Year 2022		4,767
Year 2023		4,905
Year 2024		3,729
Total lease commitments	$	18,040
Less: imputed interest		(1,592)
Total lease liability	$	16,448

Schedule of the activity related to the repurchase reserve for previously sold loans


	December 31,		December 31,
	2020		2019
Beginning balance	$	8,969	$	7,657
Provision for repurchases		5,227		5,487
Settlements		(7,142)		(4,175)
Total repurchase reserve	$	7,054	$	8,969

Schedule of corporate-owned life insurance trusts


	At December 31, 2020
Corporate-owned life insurance trusts:	Trust #1		Trust #2		Trust #3		Total
Corporate-owned life insurance cash surrender value	$	4,924	$	3,765	$	1,970	$	10,659
Corporate-owned life insurance liability		5,803		4,550		2,216		12,569
Corporate-owned life insurance shortfall (1)	$	(879)	$	(785)	$	(246)	$	(1,910)

________________________

(1)

ASU 2016-02

Schedule of balance sheets, weighted average remaining lease term and weighted average discount rates


		December 31,
Lease Assets and Liabilities	Classification	2020
Assets
Operating lease ROU assets	Other assets	$ 13,512

Liabilities
Operating lease liabilities	Other liabilities	$ 16,448

Weighted average remaining lease term (in years)		3.7
Weighted average discount rate		4.8	%

Share Based Payments and Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of weighted average assumptions used in estimation of the fair value of options granted



	For the year ended December 31,
	2020		2019
Risk-free interest rate		1.45%		2.23 - 2.51%
Expected lives (in years)		4.94		4.74 - 5.06
Expected volatility		61.21%		56.14 - 56.57%
Expected dividend yield		0.00%		0.00%
Fair value per share	$	3.13	$	1.61 - 1.85

Summary of activity, pricing and other information for the Company's stock options


	For the year ended December 31,
	2020			2019
		Weighted-			Weighted-
		Average			Average
	Number of	Exercise		Number of	Exercise
	Shares	Price		Shares	Price
Options outstanding at the beginning of the year	914,470	$	8.10	1,001,469	$	13.16
Options granted	30,000		5.34	592,500		3.66
Options exercised	(9,500)		4.84	(103,351)		3.34
Options forfeited/cancelled	(410,613)		7.35	(576,148)		13.20
Options outstanding at the end of the year	524,357		8.58	914,470		8.10
Options exercisable at the end of the year	327,366	$	11.46	328,933	$	14.36

Schedule of aggregate intrinsic value


	As of December 31,
	2020			2019
	Weighted-			Weighted-
	Average	Aggregate		Average	Aggregate
	Remaining	Intrinsic		Remaining	Intrinsic
	Life	Value		Life	Value
	(Years)	(in thousands)		(Years)	(in thousands)
Options outstanding at end of year	6.77	$	-	7.78	$	838
Options exercisable at end of year	5.96	$	-	5.55	$	25

Schedule of additional information regarding stock options outstanding


		Stock Options Outstanding				Options Exercisable
			Weighted-
			Average	Weighted-				Weighted-
Exercise			Remaining	Average				Average
Price		Number	Contractual	Exercise		Number		Exercise
Range		Outstanding	Life in Years	Price		Exercisable		Price
$	3.22 - 3.74	93,001	7.88	$	3.59	32,676	$	3.59
	3.75 - 5.38	200,000	8.16		3.75	66,667		3.75
	5.39 - 9.85	27,582	5.01		7.01	24,249		6.62
	9.86 - 17.39	92,524	5.25		12.11	92,524		12.11
	17.40 - 20.49	57,250	5.55		17.40	57,250		17.40
	20.50	54,000	4.56		20.50	54,000		20.50
$	3.22 - 20.50	524,357	6.77	$	8.58	327,366	$	11.46

Restricted stock units

Summary of activity, pricing and other information for the Company's


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
RSU’s outstanding at beginning of the year	75,000	$	3.75
RSU’s granted	242,961		5.34
RSU’s issued	(8,334)		3.75
RSU’s forfeited/cancelled	(42,406)		4.72
RSU’s outstanding at end of the year	267,221	$	5.04

Deferred stock units

Summary of activity, pricing and other information for the Company's


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
DSU’s outstanding at the beginning of the year	54,500	$	6.61
DSU’s granted	15,000		5.34
DSU’s issued	—		—
DSU’s forfeited/cancelled	(15,000)		5.34
DSU’s outstanding at the end of the year	54,500	$	6.61

Restricted stock awards

Summary of activity, pricing and other information for the Company's


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
RSA’s outstanding at beginning of the year	35,069	$	3.57
RSA’s granted	—		—
RSA’s issued	—		—
RSA’s forfeited/cancelled	(35,069)		3.57
RSA’s outstanding at end of the year	—	$	—

Summary of Business and Financial Statement Presentation including Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) lease	Dec. 31, 2019 USD ($)	Jan. 01, 2019 USD ($)
Mortgage Loans Held-for-Sale
Maximum past due period of principal or interest based on LHFS are placed on nonaccrual status	90 days
Recent Accounting Pronouncements
Restricted cash	$ 5,602	$ 12,466
Business promotion	3,859	9,319
Operating lease ROU assets	13,512	17,169
Deferred rent liability	3,800
Operating lease liabilities	$ 16,448
Number of operating leases \| lease	3
Number of financing leases \| lease	1
Accumulated other comprehensive earnings, net of tax	$ 24,766	$ 24,786
ASU 2016-02 \| Restatement adjustment
Recent Accounting Pronouncements
Operating lease ROU assets			$ 19,700
Deferred rent liability			3,800
Operating lease liabilities			$ 23,400

Mortgage Loans Held-for-Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Mortgage loans held-for-Sale
Total mortgage loans held-for-sale	$ 164,422	$ 782,143
Gain on LHFS
Change in provision for repurchases	(5,227)	(5,487)
(Loss) gain on sale of loans, net	35,193	84,035
Government
Mortgage loans held-for-Sale
Total mortgage loans held-for-sale	7,924	51,019
Conventional
Mortgage loans held-for-Sale
Total mortgage loans held-for-sale	141,139	436,040
Non-qualified mortgages (NonQM)
Mortgage loans held-for-Sale
Total mortgage loans held-for-sale	11,064	274,834
LHFS
Mortgage loans held-for-Sale
Fair value adjustment	4,295	20,250
Gain on LHFS
Gain on sale of mortgage loans	59,330	111,787
Premium from servicing retained loan sales	2,094	2,491
Unrealized (loss) gain from derivative financial instruments	(7)	4,472
Realized (losses) gains from derivative financial instruments	(11,040)	(5,627)
Mark to market gain (loss) on LHFS	(15,955)	15,810
Direct origination expenses, net	(15,191)	(24,616)
Change in provision for repurchases	(5,227)	(5,487)
(Loss) gain on sale of loans, net	14,004	98,830
LHFS \| 90 days or more past due
Mortgage loans held-for-Sale
Unpaid principal balance of mortgage loans held for sale	1,200	4,500
Carrying value	$ 1,100	$ 4,200

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Jul. 31, 2020	May 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Changes in the fair value of MSRs
Balance at beginning of year			$ 41,470
Fair value of MSRs at end of period			339	$ 41,470
Total loans serviced			30,524	4,931,849
Proceeds from the sale of mortgage servicing rights			14,716
Amount pledged as collateral as part of the MSR Financing				2,020
Mortgage Servicing Rights Sensitivity Analysis
Fair value of MSRs			339	41,470
Change in fair value of mortgage servicing rights			(21,962)	(25,771)
Gain (loss) on sale of mortgage servicing rights			(6,547)	860
Loss on mortgage servicing rights, net			(28,509)	(24,911)
Servicing income, net
Contractual servicing fees			5,159	15,147
Late and ancillary fees			67	180
Subservicing and other costs			(1,623)	(2,384)
Servicing (expenses) fees, net			3,603	12,943
Government
Changes in the fair value of MSRs
Total loans serviced			30,524	105,442
Conventional
Changes in the fair value of MSRs
Total loans serviced				4,826,407
Mortgage servicing rights
Changes in the fair value of MSRs
Balance at beginning of year			41,470	64,728
Additions from servicing retained loan sales			2,094	2,491
Reductions from bulk sales			(21,263)
Other				22
Changes in fair value			(21,962)	(25,771)
Fair value of MSRs at end of period			339	41,470
Mortgage Servicing Rights Sensitivity Analysis
Prepayment Speed, Decrease in fair value from 10% adverse change			(13)	(1,850)
Prepayment Speed, Decrease in fair value from 20% adverse change			(26)	(3,631)
Prepayment Speed, Decrease in fair value from 30% adverse change			(38)	(5,325)
Discount Rate, Decrease in fair value from 10% adverse change			(13)	(1,330)
Discount Rate, Decrease in fair value from 20% adverse change			(25)	(2,579)
Discount Rate, Decrease in fair value from 30% adverse change			(37)	(3,753)
Change in fair value of mortgage servicing rights			(21,962)	(25,771)
Gain (loss) on sale of mortgage servicing rights			(6,547)	860
Loss on mortgage servicing rights, net			$ (28,509)	$ (24,911)
Mortgage servicing rights \| Government
Changes in the fair value of MSRs
Total amount received from sale of MSR	$ 225
Proceeds from the sale of mortgage servicing rights	$ 163
Mortgage servicing rights \| Conventional
Changes in the fair value of MSRs
Total amount received from sale of MSR		$ 20,100
Proceeds from the sale of mortgage servicing rights		$ 15,000

Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Other Assets
Right of Use asset	$ 13,512	$ 17,169
Corporate-owned life insurance	10,659
Derivative assets – lending	7,275	7,791
Prepaid expenses	3,429	3,125
Accounts receivable, net	3,190	14,265
Other	1,103	1,110
Servicing advances	947	2,109
Premises and equipment, net	930	1,250
Accrued interest receivable	286	2,131
Loans eligible for repurchase from Ginnie Mae	114	1,686
Real estate owned - outside trust	79	152
Total other assets	$ 41,524	50,788
Accounts Receivable, net
Average collection period after sale date for holdbacks from MSR sales	6 months
Average number of months in arrears for collection of receivables related to hedging instruments and real estate service fees	1 month
Reserve for doubtful accounts	$ 329	$ 280

Other Assets - Loans Eligible for Repurchase from Ginnie Mae (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other Assets
Loans eligible for repurchase from Ginnie Mae	$ 114	$ 1,686

Other Assets - Premises and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Other Assets
Premises and equipment	$ 6,230	$ 5,829
Less: Accumulated depreciation	(5,300)	(4,579)
Total premises and equipment, net	930	1,250
Depreciation	$ 722	$ 721

Debt - Contractual Reductions of Debt (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Contractual reductions of debt
Total	$ 233,932
Less Than One Year	151,932
One to Three Years	20,000
More Than Five Years	62,000
Convertible Notes
Contractual reductions of debt
Total	20,000
One to Three Years	20,000
Long-term debt
Contractual reductions of debt
Total	62,000
More Than Five Years	62,000
Warehouse Borrowings
Contractual reductions of debt
Total	151,932
Less Than One Year	$ 151,932

Debt - Warehouse Borrowings (Details) - USD ($) $ in Thousands			12 Months Ended
	Oct. 28, 2020	Apr. 15, 2020	Dec. 31, 2020	Dec. 31, 2019
Warehouse Borrowings
Balance Outstanding			$ 151,932	$ 701,563
Information on warehouse borrowings
Instrument term	18 months	6 months
Restricted cash			$ 5,602	12,466
One Month LIBOR
Warehouse Borrowings
Rate Range (as a percent)			0.14%
Warehouse Borrowings
Warehouse Borrowings
Maximum Borrowing Capacity			$ 550,000
Balance Outstanding			151,932	701,563
Information on warehouse borrowings
Amount outstanding			810,818	971,595
Average balance outstanding for the year			252,565	547,421
UPB of underlying collateral (mortgage loans)			$ 153,675	$ 763,309
Weighted average rate for period (as a percent)			3.74%	4.30%
Instrument term			1 year
Restricted cash			$ 1,300	$ 1,100
Repurchase agreement 1
Warehouse Borrowings
Maximum Borrowing Capacity			50,000
Balance Outstanding			$ 49,963	72,971
Repurchase agreement 1 \| Minimum
Warehouse Borrowings
Allowable Advance Rates (as a percent)			90.00%
Repurchase agreement 1 \| Minimum \| One Month LIBOR
Warehouse Borrowings
Rate Range (as a percent)			2.00%
Repurchase agreement 1 \| Maximum
Warehouse Borrowings
Allowable Advance Rates (as a percent)			98.00%
Repurchase agreement 1 \| Maximum \| One Month LIBOR
Warehouse Borrowings
Rate Range (as a percent)			2.25%
Repurchase agreement 2
Warehouse Borrowings
Maximum Borrowing Capacity			$ 200,000
Balance Outstanding			$ 51,310	119,838
Allowable Advance Rates (as a percent)			100.00%
Repurchase agreement 2 \| One Month LIBOR
Warehouse Borrowings
Rate Range (as a percent)			1.75%
Repurchase agreement 3
Warehouse Borrowings
Maximum Borrowing Capacity			$ 300,000
Balance Outstanding			$ 50,659	72,666
Allowable Advance Rates (as a percent)			100.00%
Repurchase agreement 3 \| Note Rate
Warehouse Borrowings
Rate Range (as a percent)			(0.375%)
Repurchase agreement 4
Warehouse Borrowings
Balance Outstanding				25,953
Repurchase agreement 5
Warehouse Borrowings
Balance Outstanding				250,722
Repurchase agreement 6
Warehouse Borrowings
Balance Outstanding				$ 159,413

Debt - MSR Financings and MSR Advance Financings (Details) - USD ($) $ in Thousands			1 Months Ended	12 Months Ended
	Oct. 28, 2020	Apr. 15, 2020	May 31, 2018	Dec. 31, 2020	Dec. 31, 2019
Long-term Debt
Agreement term	18 months	6 months
One Month LIBOR
Long-term Debt
Interest margin over base rate (as a percent)				0.14%
MSR Financings
Long-term Debt
Amount outstanding				$ 15,000	$ 5,000
Average balance outstanding for the year				$ 2,943	$ 200
Weighted average rate for period (as a percent)				3.91%	8.00%
MSR Advance Financing
Long-term Debt
PTAP funds outstanding				$ 0
MSR Advance Financing \| Maximum
Long-term Debt
Agreement term				7 months
Line of credit \| FHLMC and GNMA Financing \| IMC
Long-term Debt
Maximum Borrowing Capacity			$ 60,000
Maximum borrowing capacity as a percentage of fair market value of pledged mortgage servicing rights			60.00%
Line of credit \| FHLMC and GNMA Financing \| One Month LIBOR \| IMC
Long-term Debt
Interest margin over base rate (as a percent)			3.00%

Debt - Convertible Notes (Details) $ / shares in Units, $ in Thousands			1 Months Ended
	Oct. 28, 2020 USD ($)	Apr. 15, 2020 USD ($) $ / shares shares	May 31, 2015 USD ($) D $ / shares
Convertible Notes
Amount of debt	$ 25,000	$ 25,000	$ 25,000
Debt principal after scheduled paydown	20,000
Scheduled decrease in the aggregate principal amount	$ 5,000
Interest rate of debt (as a percent)	7.00%	7.00%	7.50%
Conversion price (in dollars per share) \| $ / shares			$ 21.50
Conditional conversion price (in dollars per share) \| $ / shares			$ 30.10
Number of trading days for which stock price must exceed specified price \| D			20
Number of consecutive trading days during which stock price must exceed specified price \| D			30
Agreement term	18 months	6 months
Warrant cash exercise price \| $ / shares		$ 2.97
Relative fair value of warrants recorded as debt discount		$ 242
Effective interest rate		8.90%
Maximum
Convertible Notes
Aggregate number of common shares which can be purchased with warrants issued \| shares		212,649

Debt - Long-term Debt (Details) - USD ($) $ in Thousands	12 Months Ended
Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Apr. 15, 2020
Long-term Debt
Interest rate at the end of the period (as a percent)			8.90%
Junior Subordinated Notes
Long-term Debt
Interest rate at the end of the period (as a percent)	3.99%
Junior Subordinated Notes, Fair Value
Long-term debt	$ 62,000	$ 62,000
Fair value adjustment	(17,587)	(16,566)
Total	$ 44,413	$ 45,434
Junior Subordinated Notes \| 3 Month LIBOR
Long-term Debt
Applicable margin (as a percent)	3.75%

Securitized Mortgage Trusts - Securitized Mortgage Trust Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Trust Assets
Securitized mortgage collateral, at fair value	$ 2,100,175	$ 2,628,064
REO, at net realizable value (NRV)	3,094	6,682
Total securitized mortgage trust assets	2,103,269	2,634,746
Mortgages secured by residential real estate
Trust Assets
Securitized mortgage collateral, at fair value	2,205,575	2,649,997
Mortgages secured by commercial real estate
Trust Assets
Securitized mortgage collateral, at fair value	170,418	210,536
Securitized mortgage collateral
Trust Assets
Securitized mortgage collateral, at fair value	2,100,175	2,628,064
Fair value adjustment	(275,818)	(232,469)
Mortgages serviced for others
Trust Assets
Other mortgages primarily collateralized by REMIC	216,300	268,100
REO inside trusts
Trust Assets
REO, at net realizable value (NRV)	$ 3,094	$ 6,682

Securitized Mortgage Trusts - Securitized Mortgage Trust Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Securitized Mortgage Trusts
REO	$ 10,140	$ 21,195
Impairment (1)	(6,967)	(14,361)
Ending balance	3,173	6,834
REO inside trust	3,094	6,682
REO outside trust	79	152
Securitized Mortgage Trust Liabilities
Securitized mortgage borrowings	$ 2,086,557	$ 2,619,210

Securitized Mortgage Trusts - Securitized Mortgage Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Apr. 15, 2020
Securitized Mortgage Borrowings
Securitized mortgage borrowings	$ 2,086,557	$ 2,619,210
Bond losses	$ 2,200,000	2,200,000
Range of interest rates
Reference rate (as a percent)			8.90%
Minimum
Range of interest rates
Interest rate margin adjustment trigger, percentage of unpaid principal balance to original issuance amount	10.00%
Maximum
Range of interest rates
Interest rate margin adjustment trigger, percentage of unpaid principal balance to original issuance amount	20.00%
One Month LIBOR
Range of interest rates
Applicable margin (as a percent)	0.14%
Securitized mortgage borrowings
Securitized Mortgage Borrowings
Subtotal contractual principal balance (3)	$ 4,587,200	5,105,800
Fair value adjustment	(2,500,600)	(2,486,600)
Securitized mortgage borrowings	2,086,600	2,619,200
2002
Securitized Mortgage Borrowings
Original Issuance Amount	3,876,100
Securitized mortgage borrowings	$ 3,400	3,900
2002 \| Minimum
Range of interest rates
Fixed interest rate (as a percent)	5.25%
Interest Rate Margins after Contractual Call Date (as a percent)	0.54%
2002 \| Maximum
Range of interest rates
Fixed interest rate (as a percent)	12.00%
Interest Rate Margins after Contractual Call Date (as a percent)	3.68%
2002 \| One Month LIBOR \| Minimum
Range of interest rates
Applicable margin (as a percent)	0.27%
2002 \| One Month LIBOR \| Maximum
Range of interest rates
Applicable margin (as a percent)	2.75%
2003
Securitized Mortgage Borrowings
Original Issuance Amount	$ 5,966,100
Securitized mortgage borrowings	$ 19,100	26,800
2003 \| Minimum
Range of interest rates
Fixed interest rate (as a percent)	4.34%
Interest Rate Margins after Contractual Call Date (as a percent)	0.54%
2003 \| Maximum
Range of interest rates
Fixed interest rate (as a percent)	12.75%
Interest Rate Margins after Contractual Call Date (as a percent)	4.50%
2003 \| One Month LIBOR \| Minimum
Range of interest rates
Applicable margin (as a percent)	0.27%
2003 \| One Month LIBOR \| Maximum
Range of interest rates
Applicable margin (as a percent)	3.00%
2004
Securitized Mortgage Borrowings
Original Issuance Amount	$ 17,710,700
Securitized mortgage borrowings	$ 287,300	354,300
2004 \| Minimum
Range of interest rates
Fixed interest rate (as a percent)	3.58%
Interest Rate Margins after Contractual Call Date (as a percent)	0.50%
2004 \| Maximum
Range of interest rates
Fixed interest rate (as a percent)	5.56%
Interest Rate Margins after Contractual Call Date (as a percent)	3.75%
2004 \| One Month LIBOR \| Minimum
Range of interest rates
Applicable margin (as a percent)	0.25%
2004 \| One Month LIBOR \| Maximum
Range of interest rates
Applicable margin (as a percent)	2.50%
2005
Securitized Mortgage Borrowings
Original Issuance Amount	$ 13,387,700
Securitized mortgage borrowings	$ 1,404,600	1,581,700
2005 \| Minimum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	0.48%
2005 \| Maximum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	4.35%
2005 \| One Month LIBOR \| Minimum
Range of interest rates
Applicable margin (as a percent)	0.24%
2005 \| One Month LIBOR \| Maximum
Range of interest rates
Applicable margin (as a percent)	2.90%
2006
Securitized Mortgage Borrowings
Original Issuance Amount	$ 5,971,400
Securitized mortgage borrowings	$ 1,860,300	2,018,000
Range of interest rates
Fixed interest rate (as a percent)	6.25%
2006 \| Minimum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	0.20%
2006 \| Maximum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	4.13%
2006 \| One Month LIBOR \| Minimum
Range of interest rates
Applicable margin (as a percent)	0.10%
2006 \| One Month LIBOR \| Maximum
Range of interest rates
Applicable margin (as a percent)	2.75%
2007
Securitized Mortgage Borrowings
Original Issuance Amount	$ 3,860,500
Securitized mortgage borrowings	$ 1,012,500	$ 1,121,100
2007 \| Minimum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	0.12%
2007 \| Maximum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	3.00%
2007 \| One Month LIBOR \| Minimum
Range of interest rates
Applicable margin (as a percent)	0.06%
2007 \| One Month LIBOR \| Maximum
Range of interest rates
Applicable margin (as a percent)	2.00%

Securitized Mortgage Trusts - Expected Principal Reductions of the Securitized Mortgage Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Securitized Mortgage Borrowings
Less Than One Year	$ 151,932
One to Three Years	20,000
More Than Five Years	62,000
Securitized mortgage borrowings
Securitized Mortgage Borrowings
Total	4,587,200	$ 5,105,800
Less Than One Year	452,500
One to Three Years	587,400
Three to Five Years	381,200
More Than Five Years	$ 3,166,100

Securitized Mortgage Trusts - Change in Fair Value of Net Trust Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Change in fair value of net trust assets, including trust REO losses
Change in fair value of net trust assets, excluding REO	$ (13,081)	$ (3,397)
Gains from REO	7,393	(6,434)
Change in fair value of net trust assets, including trust REO gains	$ (5,688)	$ (9,831)

Derivative Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Interest rate lock commitments. net (IRLCs)
Derivative assets and liabilities - lending
Derivative Asset, Notional Amount	$ 450,913	$ 419,035
Total Gains (Losses)	(516)	4,440
Hedging Instruments
Derivative assets and liabilities - lending
Derivative Liability, Notional Amount	45,000	485,459
Total Gains (Losses)	(10,531)	(5,595)
Forward delivery loan commitment
Derivative assets and liabilities - lending
Derivative Asset, Notional Amount	20,000	232,530
Forward delivery loan commitment \| LHFS
Derivative assets and liabilities - lending
Derivative Asset, Notional Amount		232,500
Mortgage lending operations \| Interest rate lock commitments. net (IRLCs)
Derivative assets and liabilities - lending
Assets fair value	7,300	7,800
Mortgage lending operations \| Hedging Instruments
Derivative assets and liabilities - lending
Liabilities fair value	143	$ 651
Mortgage lending operations \| Forward delivery loan commitment
Derivative assets and liabilities - lending
Assets fair value	$ 0

Redeemable Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jul. 16, 2018	Dec. 31, 2020	Dec. 31, 2019
Series B and C Preferred Stock
Outstanding liquidation preference		$ 69,300
Liquidation preference amount per share (in dollars per share)		$ 25.00
Series B 9.375% redeemable preferred stock
Outstanding liquidation preference		$ 34,190	$ 34,190
Preferred stock, dividend rate (as a percent)	9.375%	9.375%	9.375%
Series C 9.125% redeemable preferred stock
Outstanding liquidation preference		$ 35,127	$ 35,127
Preferred stock, dividend rate (as a percent)	9.125%	9.125%	9.125%
Cumulative undeclared dividends in arrears		$ 0
Timm
Preferred B stock approval percentage	66.70%
Timm \| Series B 9.375% redeemable preferred stock
Liquidation preference amount per share (in dollars per share)	$ 51.37
Cumulative undeclared dividends in arrears	$ 17,500
Cumulative undeclared dividends in arrears (per share)	$ 26.37
Cumulative undeclared dividends in arrears, increase in every quarter (per share)	$ 0.5859
Amount of increase in cumulative undeclared dividends in arrears in each quarter	$ 390

Fair Value of Financial Instruments - Fair value of Financial Instruments Included in the Consolidated Financial Statements (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Mortgage servicing rights	$ 339	$ 41,470
Carrying Amount
Assets
Cash and cash equivalents.	54,150	24,666
Restricted cash	5,602	12,466
Mortgage loans held for-for-sale	164,422	782,143
Mortgage servicing rights	339	41,470
Derivatives assets, lending, net	7,275	7,791
Securitized mortgage collateral	2,100,175	2,628,064
Liabilities
Warehouse borrowings	151,932	701,563
Convertible notes	20,000	24,996
Long-term debt	44,413	45,434
Securitized mortgage borrowings	2,086,557	2,619,210
Derivative liabilities, lending, net	143	651
Estimated Fair Value \| Level 1
Assets
Cash and cash equivalents.	54,150	24,666
Restricted cash	5,602	12,466
Estimated Fair Value \| Level 2
Assets
Mortgage loans held for-for-sale	164,422	782,143
Liabilities
Warehouse borrowings	151,932	701,563
Derivative liabilities, lending, net	143	651
Estimated Fair Value \| Level 3
Assets
Mortgage servicing rights	339	41,470
Derivatives assets, lending, net	7,275	7,791
Securitized mortgage collateral	2,100,175	2,628,064
Liabilities
Convertible notes	20,000	24,996
Long-term debt	44,413	45,434
Securitized mortgage borrowings	$ 2,086,557	$ 2,619,210

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Mortgage servicing rights	$ 339	$ 41,470
Level 3
Fair Value Measurements
Percentage of level three assets to total assets measured at fair value	90.00%	77.00%
Percentage of level three liabilities to total liabilities measured at fair value	93.00%	79.00%
Recurring basis \| Level 2
Assets
Mortgage loans held for-for-sale	$ 164,422	$ 782,143
Total assets at fair value	164,422	782,143
Liabilities
Derivative liabilities, lending, net	143	651
Total liabilities at fair value	143	651
Recurring basis \| Level 3
Assets
Derivatives assets, lending, net	7,275	7,791
Mortgage servicing rights	339	41,470
Securitized mortgage collateral	2,100,175	2,628,064
Total assets at fair value	2,107,789	2,677,325
Liabilities
Securitized mortgage borrowings	2,086,557	2,619,210
Long-term debt	44,413	45,434
Total liabilities at fair value	2,130,970	2,664,644
Recurring basis \| Derivative assets, lending, net \| Interest rate lock commitments. net (IRLCs) \| Level 3
Assets
Total assets at fair value	$ 7,300	$ 7,800

Fair Value of Financial Instruments - Reconciliation of All Assets and Liabilities Measured Using Level 3 Input (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Level 3
Purchases, issuances and settlements
Net interest income including cash received and paid	$ 8,900	$ 9,400
Securitized mortgage borrowings
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(2,619,210)	(3,148,215)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	14,060	(94,023)
Purchases, issuances and settlements
Settlements	518,593	623,028
Fair value at the end of the period	(2,086,557)	(2,619,210)
Unrealized gains (losses) still held	2,500,674	2,486,615
Securitized mortgage borrowings \| Interest Expense
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(65,421)	(38,127)
Securitized mortgage borrowings \| Change in fair value
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	79,481	(55,896)
Long-term debt
Changes in fair value of assets during the period
Fair value at the beginning of the period	(45,434)
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	1,021
Purchases, issuances and settlements
Fair value at the end of the period	(44,413)	(45,434)
Unrealized gains (losses) still held	17,587
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(45,434)	(44,856)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings		(578)
Purchases, issuances and settlements
Fair value at the end of the period		(45,434)
Unrealized gains (losses) still held		16,566
Long-term debt \| Interest Expense
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(850)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings		(425)
Long-term debt \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	1,899
Total gains (losses) included in earnings:
Total (losses) gains included in earnings		(1,429)
Long-term debt \| Change in instrument specific credit risk
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(28)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(2)	1,276
Securitized mortgage collateral
Changes in fair value of assets during the period
Fair value at the beginning of the period	2,628,064	3,157,071
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(91,815)	63,778
Purchases, issuances and settlements
Settlements	(436,074)	(592,785)
Fair value at the end of the period	2,100,175	2,628,064
Unrealized gains (losses) still held	(275,818)	(232,469)
Securitized mortgage collateral \| Interest Income
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	747	11,279
Securitized mortgage collateral \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(92,562)	52,499
Mortgage servicing rights
Changes in fair value of assets during the period
Fair value at the beginning of the period	41,470	64,728
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(21,962)	(25,771)
Purchases, issuances and settlements
Issuances	2,094	2,491
Settlements	(21,263)	22
Fair value at the end of the period	339	41,470
Unrealized gains (losses) still held	339	41,470
Mortgage servicing rights \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(21,962)	(25,771)
Interest rate lock commitments. net (IRLCs)
Changes in fair value of assets during the period
Fair value at the beginning of the period	7,791	3,351
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(516)	4,440
Purchases, issuances and settlements
Fair value at the end of the period	7,275	7,791
Unrealized gains (losses) still held	7,275	7,791
Interest rate lock commitments. net (IRLCs) \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	$ (516)	$ 4,440

Fair Value of Financial Instruments - Valuation Techniques And Unobservable Inputs Applied (Details) - Level 3 $ in Thousands	Dec. 31, 2020 USD ($)
Measurement Input, Prepayment Rate \| Weighted Average
Unobservable input
Measurement input, mortgage servicing rights	12.3
Securitized mortgage borrowings \| Discounted Cash Flow
Valuation techniques
Estimated fair value of liabilities	$ (2,086,557)
Securitized mortgage borrowings \| Measurement Input, Default Rate \| Discounted Cash Flow \| Minimum
Unobservable input
Measurement input, securitized mortgage borrowings	0.07
Securitized mortgage borrowings \| Measurement Input, Default Rate \| Discounted Cash Flow \| Maximum
Unobservable input
Measurement input, securitized mortgage borrowings	24.1
Securitized mortgage borrowings \| Measurement Input, Default Rate \| Discounted Cash Flow \| Weighted Average
Unobservable input
Measurement input, securitized mortgage borrowings	3.4
Securitized mortgage borrowings \| Measurement Input, Loss Severity \| Discounted Cash Flow \| Minimum
Unobservable input
Measurement input, securitized mortgage borrowings	0.01
Securitized mortgage borrowings \| Measurement Input, Loss Severity \| Discounted Cash Flow \| Maximum
Unobservable input
Measurement input, securitized mortgage borrowings	97.7
Securitized mortgage borrowings \| Measurement Input, Loss Severity \| Discounted Cash Flow \| Weighted Average
Unobservable input
Measurement input, securitized mortgage borrowings	64.1
Securitized mortgage borrowings \| Measurement Input, Discount Rate \| Discounted Cash Flow \| Minimum
Unobservable input
Measurement input, securitized mortgage borrowings	1.1
Securitized mortgage borrowings \| Measurement Input, Discount Rate \| Discounted Cash Flow \| Maximum
Unobservable input
Measurement input, securitized mortgage borrowings	25.0
Securitized mortgage borrowings \| Measurement Input, Discount Rate \| Discounted Cash Flow \| Weighted Average
Unobservable input
Measurement input, securitized mortgage borrowings	2.6
Long-term debt \| Discounted Cash Flow
Valuation techniques
Estimated fair value of liabilities	$ (44,413)
Long-term debt \| Measurement Input, Discount Rate \| Discounted Cash Flow
Unobservable input
Measurement input, long-term debt	8.3
Long-term debt \| Measurement Input, Discount Rate \| Discounted Cash Flow \| Weighted Average
Unobservable input
Measurement input, long-term debt	8.3
Securitized mortgage collateral \| Discounted Cash Flow
Valuation techniques
Estimated fair value of assets	$ 2,100,175
Securitized mortgage collateral \| Measurement Input, Prepayment Rate \| Discounted Cash Flow \| Minimum
Unobservable input
Measurement input, securitized mortgage collateral	2.0
Securitized mortgage collateral \| Measurement Input, Prepayment Rate \| Discounted Cash Flow \| Maximum
Unobservable input
Measurement input, securitized mortgage collateral	25.6
Securitized mortgage collateral \| Measurement Input, Prepayment Rate \| Discounted Cash Flow \| Weighted Average
Unobservable input
Measurement input, securitized mortgage collateral	12.4
Mortgage servicing rights \| Discounted Cash Flow
Valuation techniques
Estimated fair value of assets	$ 339
Mortgage servicing rights \| Measurement Input, Prepayment Rate \| Discounted Cash Flow \| Minimum
Unobservable input
Measurement input, mortgage servicing rights	9.1
Mortgage servicing rights \| Measurement Input, Prepayment Rate \| Discounted Cash Flow \| Maximum
Unobservable input
Measurement input, mortgage servicing rights	27.5
Mortgage servicing rights \| Measurement Input, Discount Rate \| Discounted Cash Flow \| Minimum
Unobservable input
Measurement input, mortgage servicing rights	12.5
Mortgage servicing rights \| Measurement Input, Discount Rate \| Discounted Cash Flow \| Maximum
Unobservable input
Measurement input, mortgage servicing rights	15.0
Mortgage servicing rights \| Measurement Input, Discount Rate \| Discounted Cash Flow \| Weighted Average
Unobservable input
Measurement input, mortgage servicing rights	12.8
Interest rate lock commitments. net (IRLCs) \| Market pricing
Valuation techniques
Estimated fair value of assets	$ 7,275
Interest rate lock commitments. net (IRLCs) \| Measurement Input, Pull-through Rate \| Market pricing \| Minimum
Unobservable input
Measurement input, derivative assets - IRLCs, net	21.6
Interest rate lock commitments. net (IRLCs) \| Measurement Input, Pull-through Rate \| Market pricing \| Maximum
Unobservable input
Measurement input, derivative assets - IRLCs, net	99.9
Interest rate lock commitments. net (IRLCs) \| Measurement Input, Pull-through Rate \| Market pricing \| Weighted Average
Unobservable input
Measurement input, derivative assets - IRLCs, net	69.0

Fair Value of Financial Instruments - Changes in Recurring Fair Value Measurements Included in Earnings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of net trust assets, excluding trust REO	$ 13,081	$ 3,397
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	30,524	4,931,849
Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of net trust assets, excluding trust REO	(13,100)	(3,400)
Recurring basis
Change in Fair Value Included in Net Earnings (Loss)
Total	(114,630)	(37,588)
Recurring basis \| Interest Income
Change in Fair Value Included in Net Earnings (Loss)
Total	747	11,279
Recurring basis \| Interest Expense
Change in Fair Value Included in Net Earnings (Loss)
Total	(66,271)	(38,552)
Recurring basis \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Total	(13,081)	(3,397)
Recurring basis \| Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Total	1,899	(1,429)
Recurring basis \| Other Revenue and Expense
Change in Fair Value Included in Net Earnings (Loss)
Total	(21,962)	(25,771)
Recurring basis \| (Loss) Gain on Sale of Loans, net
Change in Fair Value Included in Net Earnings (Loss)
Total	(15,962)	20,282
Recurring basis \| Hedging Instruments
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	509	32
Recurring basis \| Hedging Instruments \| (Loss) Gain on Sale of Loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	509	32
Recurring basis \| Securitized mortgage borrowings
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	14,060	(94,023)
Recurring basis \| Securitized mortgage borrowings \| Interest Expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(65,421)	(38,127)
Recurring basis \| Securitized mortgage borrowings \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	79,481	(55,896)
Recurring basis \| Long-term debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	1,049	(1,854)
Recurring basis \| Long-term debt \| Interest Expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(850)	(425)
Recurring basis \| Long-term debt \| Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	1,899	(1,429)
Recurring basis \| Securitized mortgage collateral
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(91,815)	63,778
Recurring basis \| Securitized mortgage collateral \| Interest Income
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	747	11,279
Recurring basis \| Securitized mortgage collateral \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(92,562)	52,499
Recurring basis \| Mortgage servicing rights
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(21,962)	(25,771)
Recurring basis \| Mortgage servicing rights \| Other Revenue and Expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(21,962)	(25,771)
Recurring basis \| Derivative assets - IRLCs
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(516)	4,440
Recurring basis \| Derivative assets - IRLCs \| (Loss) Gain on Sale of Loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(516)	4,440
Recurring basis \| Mortgage loans held-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(15,955)	15,810
Recurring basis \| Mortgage loans held-for-sale \| (Loss) Gain on Sale of Loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(15,955)	15,810
Recurring basis \| Level 3
Long-term debt
Estimated fair value of long-term debt	44,413	$ 45,434
Recurring basis \| Level 3 \| Long-term debt
Long-term debt
Long-term debt unpaid principal balance	62,000
Estimated fair value of long-term debt	44,400
Difference between aggregate unpaid principal balances and fair value of long-term debt	17,600
Recurring basis \| Level 3 \| Securitized mortgage collateral
Securitized mortgage collateral
Unpaid principal balance of securitized mortgage collateral	2,400,000
Estimated fair value of securitized mortgage collateral	2,100,000
Difference between aggregate unpaid principal balance and fair value of securitized mortgage collateral	300,000
Unpaid principal balance of loans 90 days or more past due	400,000
Estimated fair value of loans 90 days or more past due	100,000
Difference between aggregate unpaid principal balances and fair value of mortgage loans	300,000
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	2,400,000
Estimated fair value of securitized mortgage borrowings	2,100,000
Bond losses	2,200,000
Difference between aggregate unpaid principal balances and fair value of securitized mortgage borrowings	$ 300,000

Fair Value of Financial Instruments - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Fair Value Measurements
Right of Use asset		$ 13,512	$ 17,169
Retained earnings		(1,246,450)	(1,157,019)
Total Losses
ROU asset impairment		(393)
Nonrecurring Fair Value Measurements
Total Losses
REO		7,393	(6,434)
ROU asset impairment	$ 393
Nonrecurring Fair Value Measurements \| Level 2
Fair Value Measurements
REO		3,173	$ 6,834
Nonrecurring Fair Value Measurements \| Level 3
Fair Value Measurements
Right of Use asset		$ 13,512

Reconciliation of Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Numerator for basic earnings (loss) per share:
Net earnings (loss)	$ (2,190)	$ (677)	$ (88,150)	$ (7,977)
Numerator for diluted earnings (loss) per share:
Net earnings (loss)	(2,190)	(677)	(88,150)	(7,977)
Net earnings (loss) plus interest expense attributable to convertible notes	$ (2,190)	$ (677)	$ (88,150)	$ (7,977)
Denominator for basic earnings (loss) per share:
Basic weighted average common shares outstanding during the period	21,255	21,220	21,251	21,189
Denominator for diluted earnings (loss) per share:
Basic weighted average common shares outstanding during the period	21,255	21,220	21,251	21,189
Diluted weighted average common shares	21,255	21,220	21,251	21,189
Basic (in dollars per share)	$ (0.10)	$ (0.03)	$ (4.15)	$ (0.38)
Diluted (in dollars per share)	$ (0.10)	$ (0.03)	$ (4.15)	$ (0.38)
Stock options
Denominator for diluted earnings (loss) per share:
Antidilutive securities excluded from weighted average share calculations (in shares)			829	1,100
Convertible Debt Notes
Denominator for diluted earnings (loss) per share:
Antidilutive securities excluded from weighted average share calculations (in shares)			930	1,200

Income Taxes - Summary of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Current income taxes:
Federal	$ 8	$ (362)
State	125	117
Total current income tax (benefit) expense	133	(245)
Deferred income taxes:
Total income tax (benefit) expense	$ 133	$ (245)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Federal and state net operating losses	$ 173,652	$ 163,676
Mortgage securities	54,624	49,927
Depreciation and amortization	26,752	29,127
Capital loss carryover	171	169
Compensation and other accruals	3,060	3,535
Repurchase reserve	2,200	2,765
Total gross deferred tax assets	260,459	249,199
Deferred tax liabilities:
Fair value adjustments on long-term debt	(4,639)	(4,391)
Mortgage servicing rights	(106)	(11,549)
Corporate-owned life insurance	(968)
Total gross deferred tax liabilities	(5,713)	(15,940)
Valuation allowance	(254,746)	(233,259)
Total net deferred tax assets	$ 0	$ 0

Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of income taxes to the expected statutory federal corporate income tax rates
Expected income tax expense	$ (18,483)	$ (1,727)
State tax expense, net of federal benefit	99	106
State rate change	(731)	(269)
Change in valuation allowance	19,016	1,425
Corporate-owned life insurance interest and premiums	170
Other	62	220
Total income tax (benefit) expense	$ 133	$ (245)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Narrative (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Oct. 23, 2019 shareholder $ / shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Operating loss carryforwards
Income tax expense (benefit)		$ 133	$ (245)
Accumulated other comprehensive earnings		24,766	$ 24,786
Accumulated other comprehensive earnings, tax		11,300
Number of five-percent stockholders which, in the event of an increase in their ownership percentage by more than fifty percent, could result in the entity experiencing an ownership change \| shareholder	1
Rolling time period used for measurement of ownership increase of five-percent shareholders	3 years
Threshold percentage of outstanding stock in an unapproved stock purchase that would trigger activation of rights under the Rights Plan	4.99%
Redemption price of rights issued under Rights Plan \| $ / shares	$ 0.001
Term of Rights Plan	3 years
AMT credit		404
Minimum
Operating loss carryforwards
Percentage of ownership increase by five-percent shareholders which could potentially trigger an ownership change	50.00%
Federal
Operating loss carryforwards
Net operating loss carryforwards		609,300
State
Operating loss carryforwards
Net operating loss carryforwards		$ 420,300

Segment Reporting - Balance Sheet Items (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting
Cash and cash equivalents	$ 54,150	$ 24,666
Restricted cash	5,602	12,466
Mortgage loans held-for-sale	164,422	782,143
Mortgage servicing rights	339	41,470
Trust assets	2,103,269	2,634,746
Other assets	41,524	50,788
Total assets	2,369,306	3,546,279
Total liabilities	2,353,655	3,442,042
Corporate and other
Segment Reporting
Cash and cash equivalents	2,681	1,015
Other assets	28,882	21,599
Total assets	31,563	22,614
Total liabilities	56,192	53,131
Mortgage Lending \| Operating segments
Segment Reporting
Cash and cash equivalents	50,968	23,647
Restricted cash	5,602	12,466
Mortgage loans held-for-sale	164,422	782,143
Mortgage servicing rights	339	41,470
Other assets	12,510	29,121
Total assets	233,841	888,847
Total liabilities	166,285	723,965
Real Estate Services \| Operating segments
Segment Reporting
Cash and cash equivalents	501	4
Other assets	2	2
Total assets	503	6
Long-term Portfolio \| Operating segments
Segment Reporting
Trust assets	2,103,269	2,634,746
Other assets	130	66
Total assets	2,103,399	2,634,812
Total liabilities	$ 2,131,178	$ 2,664,946

Segment Reporting - Statement of Operations (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) item	Dec. 31, 2019 USD ($)
Segment Reporting
Number of reportable segments \| item			3
Gain (loss) on sale of loans, net			$ 14,004	$ 98,830
Servicing (expenses) fees, net			3,603	12,943
Loss on mortgage servicing rights, net			(28,509)	(24,911)
Real estate services fees, net			1,312	3,287
Other revenue			1,498	479
Other operating expense			(81,273)	(96,920)
Other income (expense)			1,348	(1,930)
Net earnings (loss) before income taxes			(88,017)	(8,222)
Income tax expense (benefit)			133	(245)
Net earnings (loss)	$ (2,190)	$ (677)	(88,150)	(7,977)
Corporate and other
Segment Reporting
Other revenue			1,220	62
Other operating expense			(18,286)	(15,462)
Other income (expense)			(2,362)	(1,808)
Net earnings (loss) before income taxes			(19,428)	(17,208)
Mortgage Lending \| Operating segments
Segment Reporting
Gain (loss) on sale of loans, net			14,004	98,830
Servicing (expenses) fees, net			3,603	12,943
Loss on mortgage servicing rights, net			(28,509)	(24,911)
Other revenue			135	157
Other operating expense			(60,869)	(79,536)
Other income (expense)			2,366	6,067
Net earnings (loss) before income taxes			(69,270)	13,550
Real Estate Services \| Operating segments
Segment Reporting
Real estate services fees, net			1,312	3,287
Other operating expense			(1,485)	(1,391)
Net earnings (loss) before income taxes			(173)	1,896
Long-term Portfolio \| Operating segments
Segment Reporting
Other revenue			143	260
Other operating expense			(633)	(531)
Other income (expense)			1,344	(6,189)
Net earnings (loss) before income taxes			$ 854	$ (6,460)

Commitments and Contingencies - Legal Proceedings (Details) $ in Millions		12 Months Ended
	Jul. 16, 2018 USD ($) item director	Dec. 31, 2020	Dec. 31, 2019	Dec. 07, 2011 item director
Series B 9.375% redeemable preferred stock
Repurchase reserve
Preferred stock, dividend rate (as a percent)	9.375%	9.375%	9.375%
Series C 9.125% redeemable preferred stock
Repurchase reserve
Preferred stock, dividend rate (as a percent)	9.125%	9.125%	9.125%
Timm
Repurchase reserve
Number of directors elected by Preferred holders \| director	2			2
Number of days within which special election for election of directors to be held	60 days
Number of quarterly dividend payments sought for Preferred holders				2
Number of quarterly dividends payments granted under judgement for Preferred holders	3
Dividend amount required to be paid by company in three quarterly payment \| $	$ 1.2
Preferred B stock approval percentage	66.70%

Commitments and Contingencies - Balance Sheet and Quantitative Information (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Lease Assets and Liabilities
Operating lease ROU assets	$ 13,512	$ 17,169
Balance sheet classification - ROU assets	us-gaap:OtherAssets
Operating lease liabilities	$ 16,448
Balance sheet classification - Operating lease liabilities	us-gaap:OtherLiabilities
Weighted average remaining lease term (in years)	3 years 8 months 12 days
Weighted average discount rate	4.80%

Commitments and Contingencies - Future Minimum Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies
Year 2021	$ 4,639
Year 2022	4,767
Year 2023	4,905
Year 2024	3,729
Total lease commitments	18,040
Less: imputed interest	(1,592)
Operating lease liabilities	16,448
Cash paid for operating leases	5,200	$ 4,700
Total operating lease expense	4,700	$ 4,200
ROU asset impairment	$ 393

Commitments and Contingencies - Repurchase Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies
Beginning balance	$ 8,969	$ 7,657
Provision for repurchases	5,227	5,487
Settlements	(7,142)	(4,175)
Total repurchase reserve	7,054	8,969
Loans subject to representations and warranties	$ 3,300,000	$ 4,100,000
HARP
Commitments and Contingencies
Threshold period to stay current for loans to limit representation and warranty risk	12 months
Non-HARP
Commitments and Contingencies
Threshold period to stay current for loans to limit representation and warranty risk	36 months

Commitments and Contingencies - Corporate-owned Life Insurance Trusts (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) item
Corporate-owned life insurance trusts
Number of life insurance trusts held for former executive officers \| item		3
Corporate-owned life insurance cash surrender value		$ 10,659
Corporate-owned life insurance liability		12,569
Corporate-owned life insurance short-fall		(1,910)
Consolidation of corporate-owned life insurance trusts		1,281
Accumulated Deficit
Corporate-owned life insurance trusts
Consolidation of corporate-owned life insurance trusts	$ 1,300	1,281
Trust #1
Corporate-owned life insurance trusts
Corporate-owned life insurance cash surrender value		4,924
Corporate-owned life insurance liability		5,803
Corporate-owned life insurance short-fall		(879)
Trust #2
Corporate-owned life insurance trusts
Corporate-owned life insurance cash surrender value		3,765
Corporate-owned life insurance liability		4,550
Corporate-owned life insurance short-fall		(785)
Trust #3
Corporate-owned life insurance trusts
Corporate-owned life insurance cash surrender value		1,970
Corporate-owned life insurance liability		2,216
Corporate-owned life insurance short-fall		$ (246)

Commitments and Contingencies - Concentration of Risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) item	Dec. 31, 2019 USD ($)
Concentration of Risk
Aggregate unpaid principal balance of loans secured by properties	$ 164,422	$ 782,143
Mortgage loans \| Geographic concentration \| California
Concentration of Risk
Percentage of risk	86.00%
Mortgage loans \| Investor concentration
Concentration of Risk
Percentage of risk	77.00%
Number of investors \| item	4
Properties kept as security for long-term mortgage portfolio \| Geographic concentration \| California
Concentration of Risk
Aggregate unpaid principal balance of loans secured by properties	$ 1,200,000
Percentage of risk	49.00%
Properties kept as security for long-term mortgage portfolio \| Geographic concentration \| Florida
Concentration of Risk
Aggregate unpaid principal balance of loans secured by properties	$ 267,800
Percentage of risk	11.00%

Share Based Payments and Employee Benefit Plans - Incentive Plan and Weighted Average Assumptions Used (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	May 31, 2015
Equity and Share Based Payments
Conversion price of convertible notes into common stock (in dollars per share)			$ 21.50
‍2020 Incentive Plan
Equity and Share Based Payments
Number of shares available under the Plan	2,000,000
Shares available for grant as stock options, restricted stock and deferred stock awards	2,000,000
2010 Incentive Plan
Equity and Share Based Payments
Number of shares available under the Plan	1,167,799
Stock options
Weighted average assumptions used in estimating fair value of options granted
Risk-free interest rate (as a percent)	1.45%
Expected lives (in years)	4 years 11 months 9 days
Expected volatility (as a percent)	61.21%
Expected dividend yield (as a percent)	0.00%	0.00%
Fair value per share (in dollars per share)	$ 3.13
Minimum \| Stock options
Weighted average assumptions used in estimating fair value of options granted
Risk-free interest rate (as a percent)		2.23%
Expected lives (in years)		4 years 8 months 27 days
Expected volatility (as a percent)		56.14%
Fair value per share (in dollars per share)		$ 1.61
Maximum \| Stock options
Weighted average assumptions used in estimating fair value of options granted
Risk-free interest rate (as a percent)		2.51%
Expected lives (in years)		5 years 22 days
Expected volatility (as a percent)		56.57%
Fair value per share (in dollars per share)		$ 1.85

Share Based Payments and Employee Benefit Plans - Stock Options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of Shares
Options outstanding at beginning of period (in shares)	914,470	1,001,469
Options granted (in shares)	30,000	592,500
Options exercised (in shares)	(9,500)	(103,351)
Options forfeited / cancelled (in shares)	(410,613)	(576,148)
Options outstanding at end of year (in shares)	524,357	914,470
Options exercisable at end of year (in shares)	327,366	328,933
Weighted-Average Exercise Price
Options outstanding at beginning of period (in dollars per share)	$ 8.10	$ 13.16
Options granted (in dollars per share)	5.34	3.66
Options exercised (in dollars per share)	4.84	3.34
Options forfeited / cancelled (in dollars per share)	7.35	13.20
Options outstanding at end of year (in dollars per share)	8.58	8.10
Options exercisable at end of year (in dollars per share)	$ 11.46	$ 14.36
Weighted-Average Remaining Life
Weighted-Average Remaining Life, Options outstanding at end of year	6 years 9 months 7 days	7 years 9 months 11 days
Weighted-Average Remaining Life, Options exercisable at end of year	5 years 11 months 16 days	5 years 6 months 18 days
Aggregate Intrinsic Value (in thousands)
Aggregate Intrinsic Value, Options outstanding at end of year (in dollars)		$ 838
Aggregate Intrinsic Value, Options exercisable at end of year (in dollars)		$ 25
Additional disclosure related to options
Market price of common stock	$ 3.04	$ 5.26
Unrecognized compensation cost	$ 216
Weighted-average period over which compensation cost is expected to be recognized	1 year 1 month 6 days
Aggregate grant-date fair value of stock options granted	$ 94	$ 1,100
Stock-based compensation expense	$ 702	$ 660

Share Based Payments and Employee Benefit Plans - Options Exercise Price Range (Details)	12 Months Ended
	Dec. 31, 2020 $ / shares shares
$3.22 - 3.74
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	$ 3.22
Exercise price range, upper limit (in dollars per share)	$ 3.74
Stock Options Outstanding, Number Outstanding (in shares) \| shares	93,001
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	7 years 10 months 17 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 3.59
Options Exercisable, Number Exercisable (in shares) \| shares	32,676
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 3.59
$3.75 - 5.38
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	3.75
Exercise price range, upper limit (in dollars per share)	$ 5.38
Stock Options Outstanding, Number Outstanding (in shares) \| shares	200,000
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	8 years 1 month 28 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 3.75
Options Exercisable, Number Exercisable (in shares) \| shares	66,667
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 3.75
$5.39 - 9.85
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	5.39
Exercise price range, upper limit (in dollars per share)	$ 9.85
Stock Options Outstanding, Number Outstanding (in shares) \| shares	27,582
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	5 years 4 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 7.01
Options Exercisable, Number Exercisable (in shares) \| shares	24,249
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 6.62
$9.86 - 17.39
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	9.86
Exercise price range, upper limit (in dollars per share)	$ 17.39
Stock Options Outstanding, Number Outstanding (in shares) \| shares	92,524
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	5 years 3 months
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 12.11
Options Exercisable, Number Exercisable (in shares) \| shares	92,524
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 12.11
$17.40 - 20.49
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	17.40
Exercise price range, upper limit (in dollars per share)	$ 20.49
Stock Options Outstanding, Number Outstanding (in shares) \| shares	57,250
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	5 years 6 months 18 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 17.40
Options Exercisable, Number Exercisable (in shares) \| shares	57,250
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 17.40
$3.22 to $20.50
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	3.22
Exercise price range, upper limit (in dollars per share)	$ 20.50
Stock Options Outstanding, Number Outstanding (in shares) \| shares	524,357
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	6 years 9 months 7 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 8.58
Options Exercisable, Number Exercisable (in shares) \| shares	327,366
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 11.46
$20.50
Additional information regarding stock options outstanding
Exercise price range, upper limit (in dollars per share)	$ 20.50
Stock Options Outstanding, Number Outstanding (in shares) \| shares	54,000
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	4 years 6 months 22 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 20.50
Options Exercisable, Number Exercisable (in shares) \| shares	54,000
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 20.50

Share Based Payments and Employee Benefit Plans - Stock Units And Awards (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares
Restricted stock units
stock units
Fair value of stock granted \| $	$ 1,300
Number of Shares
Outstanding at beginning of year (in shares) \| shares	75,000
Granted (in shares) \| shares	242,961
Issued (in shares) \| shares	(8,334)
Forfeited / cancelled (in shares) \| shares	(42,406)
Outstanding at end of period (in shares) \| shares	267,221
Weighted-Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 3.75
Granted (in dollars per share) \| $ / shares	5.34
Issued (in dollars per share) \| $ / shares	3.75
Forfeited / cancelled (in dollars per share) \| $ / shares	4.72
Outstanding at end of period (in dollars per share) \| $ / shares	$ 5.04
Additional information
Unrecognized compensation cost \| $	$ 904
Weighted-average period over which compensation cost is expected to be recognized	2 years
Deferred stock units
Number of Shares
Outstanding at beginning of year (in shares) \| shares	54,500
Granted (in shares) \| shares	15,000
Forfeited / cancelled (in shares) \| shares	(15,000)
Outstanding at end of period (in shares) \| shares	54,500
Weighted-Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 6.61
Granted (in dollars per share) \| $ / shares	5.34
Forfeited / cancelled (in dollars per share) \| $ / shares	5.34
Outstanding at end of period (in dollars per share) \| $ / shares	$ 6.61
Aggregate grant-date fair value \| $	$ 80
Additional information
Unrecognized compensation cost \| $	$ 43
Weighted-average period over which compensation cost is expected to be recognized	1 year 2 months 12 days
Deferred stock units \| Minimum
stock units
Vesting period	1 year
Deferred stock units \| Maximum
stock units
Vesting period	3 years
Restricted stock awards
Number of Shares
Outstanding at beginning of year (in shares) \| shares	35,069
Forfeited / cancelled (in shares) \| shares	(35,069)
Outstanding at end of period (in shares) \| shares	0
Weighted-Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 3.57
Forfeited / cancelled (in dollars per share) \| $ / shares	$ 3.57
Outstanding at end of period (in dollars per share) \| $ / shares

Share Based Payments and Employee Benefit Plans - 401(k) Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share Based Payments and Employee Benefit Plans
Maximum employee contribution (as a percent)	25.00%
Percentage of eligible compensation matched by employer	50.00%
Percentage of employer match of eligible employee compensation	6.00%
Basic matching contributions recorded	$ 1,000	$ 751
Employer discretionary contributions	$ 0	$ 0