Related Party Transactions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2022 | |||
| Related Party Transactions [Abstract] | |||
| Related Party Transactions |
Promissory Notes The Company had two Revolving Working Capital Promissory Note Agreements (the “2021 Promissory Notes”) outstanding with BTO Urban Holdings and Libman Family Holdings, LLC, which are deemed affiliates of the Company. Amounts under the 2021 Promissory Notes may be re-borrowed and repaid from time to time until the related maturity date. The 2021 Promissory Notes accrue interest monthly at a rate and mature in January 2023. There were no amounts outstanding and an immaterial amount of interest paid on these notes during the Successor three and six months ended June 30, 2022, three months ended June 30, 2021, and the Predecessor three months ended March 31, 2021. Agricultural Loans In 2019, the Company entered into an Amended and Restated Limited Liability Company Agreement with FarmOp Capital Holdings, LLC (“FarmOps”) in which the Company acquired an equity investment in FarmOps. Subsequent to this agreement, the Company agreed to purchase originated agricultural loans from FarmOps. The Company purchased agricultural loans and had total funded draw amounts of $32.6 million and $44.8
million, respectively, for the Successor three months ended June 30, 2022, and $105.9 million and $133.5 million for the six months ended June 30, 2022. The Company purchased agricultural loans and had total funded draw amounts of $46.3 million and $53.4
million, respectively, during the three months ended June 30, 2021, and $83.0 million and $82.1 million, for the Predecessor three months ended March 31, 2021. The Company had promissory notes outstanding with FarmOps of $4.3 million and $4.1 million, including accrued interest, as of June 30, 2022 and December 31, 2021, respectively.
Nonrecourse MSR Financing Liability, at Fair Value In 2020, the Company entered into a nonrevolving facility commitment with various related parties, to sell beneficial interests in the servicing fees generated from its originated or acquired MSRs. Under these agreements, the Company has agreed to sell excess servicing income or pay an amount equal to excess servicing income to third parties, in each case, taking into account cost of servicing and ancillary income related to the identified MSRs in exchange for an upfront payment equal to the purchase price or fair value of the identified MSRs. These transactions are accounted for as financings.
As of June 30, 2022 and December 31, 2021, the Company had an outstanding advance of $153.1 million and $115.4 million, respectively, against this commitment for the purchase of MSRs with a fair value of $153.4 million and $155.1 million, respectively. Senior Notes Related parties of FoA purchased notes in the high-yield debt offering in November 2020 in an aggregate principal amount of $135.0
million. |