Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

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Discontinued Operations
 6 Months Ended
Jun. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
4. Discontinued Operations
During the fourth quarter of 2022 and calendar year 2023, the Company entered into a series of transactions, discontinuing certain business lines while enhancing our reverse mortgage loan business, in order to transform our business from a vertically integrated lending and complementary services platform to a modern retirement solutions platform. This transformation included the wind-down of the previously reported Mortgage Originations segment and sale of the previously reported Commercial Originations and Lender Services segments. This constitutes a strategic shift that has or will have a major effect on our operations and financial results.
The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of June 30, 2024 and December 31, 2023 (in thousands):

June 30, 2024 December 31, 2023
Assets
Other assets, net $ 4,658  $ 6,721 
Liabilities
Payables and other liabilities 18,029  18,304 
The following table summarizes the major components of net loss from discontinued operations (in thousands):

For the three months ended June 30, 2024 For the three months ended June 30, 2023 For the six months ended June 30, 2024 For the six months ended June 30, 2023
Portfolio interest income
Interest income $ —  $ 311  $ —  $ 828 
Interest expense —  (150) —  (970)
Net portfolio interest income (expense) —  161  —  (142)
Other income (expense)
Net origination gains —  —  —  308 
Net fair value changes on loans and related obligations —  —  —  308 
Fee income —  35,497  —  68,125 
Gain (loss) on sale and other income from loans held for sale, net —  (118) —  278 
Net other income (expense) —  35,379  —  68,711 
Total revenues —  35,540  —  68,569 
Expenses
Salaries, benefits, and related expenses —  19,851  —  50,702 
Loan production and portfolio related expenses —  150  —  1,187 
Marketing and advertising expenses —  348  —  888 
Depreciation and amortization —  —  —  2,778 
General and administrative expenses 98  29,182  1,622  54,332 
Total expenses 98  49,531  1,622  109,887 
Impairment of intangibles and other assets(1)
—  (3,400) —  (4,455)
Other, net(2)
(105) 11,010  (3,105) 1,921 
Net loss from discontinued operations before income taxes (203) (6,381) (4,727) (43,852)
Benefit for income taxes from discontinued operations —  (4,524) —  (1,105)
Net loss from discontinued operations (203) (1,857) (4,727) (42,747)
Net loss from discontinued operations attributable to noncontrolling interest (98) (2,336) (2,719) (27,553)
Net income (loss) from discontinued operations attributable to controlling interest $ (105) $ 479  $ (2,008) $ (15,194)
(1) The Company evaluates the carrying value of long-lived assets, including intangible assets, fixed assets, leasehold improvements as well as right-of-use assets in operating leases when indicators of impairment exist in accordance with Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment. Based on the analyses, the Company recognized impairment charges in the three and six months ended June 30, 2023, related to the sales of the previously reported Lender Services and Commercial Originations segments.
(2) Includes a $3.0 million contingent liability related to our discontinued operations for the six months ended June 30, 2024 and gains on disposals of $12.2 million and $2.0 million for the three and six months ended June 30, 2023, respectively. The gains on disposals consist of a $12.2 million gain on the sale of the remaining assets of the Lender Services segment and a $10.2 million loss on the sale of our commercial originations operational assets.
The Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 included the following material activities related to discontinued operations (in thousands):
For the six months ended June 30, 2024 For the six months ended June 30, 2023
Gain on sale and other income from loans held for sale, net $ —  $ 278 
Unrealized fair value changes on loans, related obligations, and derivatives —  308 
Impairment of intangibles and other assets —  4,455 
Depreciation and amortization —  2,778 
Acquisition of fixed assets —  1,815