Related Party Transactions |
9 Months Ended |
|---|---|
Sep. 30, 2022 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions |
23. 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, a Delaware limited liability company (“BTO Urban”) 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 of 6.5% per annum and mature in January 2023. These notes had outstanding amounts of $30.0 million and $0 as of September 30, 2022 and December 31, 2021, respectively, recorded within notes payable, net, on the Condensed Consolidation Statements of Financial Condition. Additionally, there was an immaterial amount of interest paid on these notes during the Successor three and nine months ended September 30, 2022, six months ended September 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 $2.4 million and $41.1 million, respectively, for the Successor three months ended September 30, 2022 and $108.3 million and $174.6 million, respectively, for the nine months ended September 30, 2022. The Company purchased agricultural loans and had total funded draw amounts of $43.2 million and $41.2 million, respectively, for the three months ended September 30, 2021, $89.5 million and $94.6 million, respectively, during the six months ended September 30, 2021, and $83.0 million and $82.1 million, respectively, for the Predecessor three months ended March 31, 2021.
The Company had promissory notes outstanding with FarmOps of $4.6 million and $4.1 million, including accrued interest, as of September 30, 2022 and December 31, 2021, respectively, which are recorded in Other assets, net, on the Condensed Consolidated Statements of Financial Condition. This promissory note has an interest rate of 10% and maturity date of December 31, 2022.
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 September 30, 2022, the parties to the nonrecourse MSR financing liability are no longer deemed related. As of December 31, 2021, the Company had an outstanding balance for this financing liability of $142.4 million.
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.
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