Dining reservation – Dining In New England http://dininginnewengland.com/ Wed, 11 May 2022 05:35:13 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://dininginnewengland.com/wp-content/uploads/2021/10/icon-4-120x120.png Dining reservation – Dining In New England http://dininginnewengland.com/ 32 32 Santa Cruz County Bank Hires Randy Lagomarsino https://dininginnewengland.com/santa-cruz-county-bank-hires-randy-lagomarsino/ Tue, 10 May 2022 20:30:00 +0000 https://dininginnewengland.com/santa-cruz-county-bank-hires-randy-lagomarsino/ Mr. Lagomarsino has 17 years of banking experience with extensive experience in sales and lending for major financial institutions in Northern California and the Bay Area. He was Head of Commercial Lending at Wells Fargo Banking Group and Head of Commercial Banking Group Business Development at Wells Fargo. He also served as Vice President, Business […]]]>

Mr. Lagomarsino has 17 years of banking experience with extensive experience in sales and lending for major financial institutions in Northern California and the Bay Area. He was Head of Commercial Lending at Wells Fargo Banking Group and Head of Commercial Banking Group Business Development at Wells Fargo. He also served as Vice President, Business Development Officer for US Bank’s Commercial Banking Group, and Vice President, Business Development and Relationship Manager for Bank of America’s Commercial Middle Market Group. Most recently, Mr. Lagomarsino served as Vice President, Senior Relationship Manager at City National Bank in San Jose where he managed a portfolio of middle market business relationships.

Mr. Lagomarsino earned his Bachelor of Science in Commerce from the Phoenix University.

Jon SiskExecutive Vice President and Chief Banking Officer, said, “We are delighted to welcome Randy to our Silicon Valley team. His commitment to building personal relationships aligns with the Bank’s mission, and his knowledge of the local business community is a valuable asset to the Bank and to our clients. We look forward to his contributions. »

Mr. Lagomarsino is based at the Bank’s headquarters Cupertino office at 19240 Stevens Creek Boulevard.

IN REGARDS TO SANTA CRUZ COUNTY BANK
Santa Cruz County Bank was founded in 2004. It is a premier, locally owned and operated, full-service community bank headquartered in Santa Cruz, California. The bank has branches in Aptos, Capitol, Cupertino, Monterey, santa cruz, Valley of the Scotts and Watsonville. What sets Santa Cruz County Bank apart from the “big banks” is its relationship-based service, focus on problem solving, and direct access to decision makers. The bank is one of the main lenders to the SBA in Santa Cruz County and Silicon Valley and one of the top USDA lenders in the State of California. As a full-service bank, Santa Cruz County Bank offers competitive deposit and lending solutions for businesses and individuals. including business loans, lines of credit, commercial real estate financing, construction loans, agricultural loans, SBA and USDA government guaranteed loans, credit cards, merchant services, deposit seizure remote, mobile and online banking, bill payment and cash management. True to its community roots, the Santa Cruz County Bank has supported regional welfare by actively participating in and donating to local nonprofit organizations.

Santa Cruz County Bank shares are publicly traded on the OTCQX US Premier Market under the symbol SCZC. Orders to buy shares can be placed online, through a brokerage firm, or through market makers listed in the Investor Relations section of the bank’s website. For more information about the Santa Cruz County Bank, visit www.sccountybank.com.

Santa Cruz County Bank

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Bank of Baroda launches digital platform for MSME co-lending, retail and other lending in partnership with NBFCs https://dininginnewengland.com/bank-of-baroda-launches-digital-platform-for-msme-co-lending-retail-and-other-lending-in-partnership-with-nbfcs/ Mon, 09 May 2022 13:24:44 +0000 https://dininginnewengland.com/bank-of-baroda-launches-digital-platform-for-msme-co-lending-retail-and-other-lending-in-partnership-with-nbfcs/ Credit and financing for MSMEs: Public sector lender Bank of Baroda on Monday announced the launch of its end-to-end digital platform for loan co-lending in partnership with Non-Banking Financial Companies (NBFCs). The platform uses rules-based algorithms for underwriting, enables credit score checks, enables co-loan product offerings for retail, MSMEs and agriculture and increases efficiency processes, […]]]>

Credit and financing for MSMEs: Public sector lender Bank of Baroda on Monday announced the launch of its end-to-end digital platform for loan co-lending in partnership with Non-Banking Financial Companies (NBFCs). The platform uses rules-based algorithms for underwriting, enables credit score checks, enables co-loan product offerings for retail, MSMEs and agriculture and increases efficiency processes, the bank said. The platform can handle both non-discretionary and discretionary co-lending models for secured and unsecured credits as per the latest Reserve Bank of India (RBI) guidelines on co-lending model. Bank of Baroda currently has co-lending links with non-bank financial companies (NBFCs) including U GRO Capital and Paisalo, and housing finance companies Edelweiss Housing, Centrum Housing Finance, etc.

“During the testing phase of the platform, we had linked up with U GRO Capital. There are about four more players in the pipeline to come on board the platform. had no end-to-end digital platform for co-lending in India, everything was done manually or what was flagged as co-lending was actually direct assignments,” said Akhil Handa, digital director of the Bank of Baroda Financial Express online.

Bank of Baroda’s new platform will align demand generation, escrow management and collection management, which are the most important features of the co-lending platform, a added Handa.

Bank of Baroda is seeking to secure 10 NBFCs on the platform and is targeting a loan book of Rs 10,000 crore in co-loan in two years. However, the bigger ambition, Handa said, is to lower the final interest rate for borrowers, who have borrowed between 18 and 24 percent. The only way to reduce it is to use an end-to-end co-lending technology platform, he said. Usually the interest rate through the co-loan is around 8% and above.

Subscribe now to the Financial Express SME newsletter: your weekly dose of news, views and updates from the world of micro, small and medium enterprises

Co-lending as a model emerged in 2018 when the RBI announced the framework for co-lending by banks and NBFCs for lending to priority sectors. The framework was rebranded as co-lending in November 2020 under which the risk is shared in an 80:20 ratio – 80% loan with the bank and at least 20% with NBFC.

“The digital co-lending platform will pave the way for both Bank of Baroda and our NBFC partners to onboard and enable lending to borrowers with an enhanced TAT. Co-lending is a priority area for the Bank and we believe this cutting-edge platform will help achieve important milestones in the years to come,” said Vikramaditya Singh Khichi, Executive Director, Bank of Baroda.

Co-lending as a model is gaining acceptance by banks including State Bank of India, Union Bank of India, Central Bank of India, IndusInd Bank, Yes Bank, Punjab National Bank, etc and lending more to people and businesses in rural areas in particular, under the priority sector lending program.

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PENNYMAC FINANCIAL SERVICES, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://dininginnewengland.com/pennymac-financial-services-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Thu, 05 May 2022 21:50:14 +0000 https://dininginnewengland.com/pennymac-financial-services-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Caution Regarding Forward-Looking Statements The following discussion and analysis of financial condition and results of operations should be read with the consolidated financial statements including the related notes of PennyMac Financial Services, Inc. ("PFSI") included within this Quarterly Report on Form 10-Q. Statements contained in this Quarterly Report on Form 10-Q may constitute forward-looking statements […]]]>

Caution Regarding Forward-Looking Statements

The following discussion and analysis of financial condition and results of
operations should be read with the consolidated financial statements including
the related notes of PennyMac Financial Services, Inc. ("PFSI") included within
this Quarterly Report on Form 10-Q.

Statements contained in this Quarterly Report on Form 10-Q may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements involve known and unknown risks,
uncertainties and other factors, which may cause actual results to be materially
different from those expressed or implied in such statements. You can identify
these forward-looking statements by words such as "may," "will," "should,"
"expect," "anticipate," "believe," "estimate," "intend," "plan" and other
similar expressions. You should consider our forward-looking statements in light
of the risks discussed under the section entitled "Risk Factors" in Part II Item
1A and in our Annual Report on Form 10-K, as well as our consolidated financial
statements, related notes, and the other financial information appearing
elsewhere in this Quarterly Report on Form 10-Q and our other filings with the
SEC. The forward-looking statements contained in this Quarterly Report on
Form 10-Q are made as of the date hereof and we assume no obligation to update
or supplement any forward-looking statements.

Insight

The following discussion and analysis provides information that we believe is
relevant to an assessment and understanding of our consolidated results of
operations and financial condition. Unless the context indicates otherwise,
references in this Quarterly Report on Form 10-Q to the words "we," "us," "our"
and the "Company" refer to PFSI.

Our company


We are a specialty financial services firm primarily focused on the production
and servicing of U.S. residential mortgage loans (activities which we refer to
as mortgage banking) and the management of investments related to the U.S.
mortgage market. We believe that our operating capabilities, specialized
expertise, access to long-term investment capital, and our management's
experience across all aspects of the mortgage business will allow us to
profitably engage in these activities and capitalize on other related
opportunities as they arise in the future.

Our primary assets are direct and indirect equity interests in Private National
Mortgage Acceptance Company, LLC ("PNMAC"). We are the managing member of PNMAC,
and we operate and control all of the businesses and affairs of PNMAC, and
consolidate the financial results of PNMAC and its subsidiaries. We conduct our
business in three segments: production, servicing (together, production and
servicing comprise our mortgage banking activities) and investment management.

? The Production segment originates, acquires and sells loans

Activities.

The Management segment provides loan management for new loans

? we hold for sale and loans we service for others, including PennyMac

Mortgage Investment Trust (“PMT”).

The investment management sector represents our investment management

? activities, which include activities associated with the investment asset

acquisitions and divestitures such as sourcing, due diligence, negotiation and

regulation.



Our principal mortgage banking subsidiary, PennyMac Loan Services, LLC ("PLS"),
is a non-bank producer and servicer of mortgage loans in the United States. PLS
is a seller/servicer for the Federal National Mortgage Association ("Fannie
Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"), each of
which is a government-sponsored entity. PLS is also an approved issuer of
securities guaranteed by the Government National Mortgage Association ("Ginnie
Mae"), a lender of the Federal Housing Administration ("FHA"), and a
lender/servicer of the Veterans Administration ("VA") and the U.S. Department of
Agriculture ("USDA"). We refer to each of Fannie Mae, Freddie Mac, Ginnie Mae,
FHA, VA and USDA as an "Agency" and collectively as the "Agencies." PLS is able
to service loans in all 50 states, the District of Columbia, Guam and the U.S.
Virgin Islands, and originate loans in 49 states and the District of Columbia,
either because PLS is properly licensed in a particular jurisdiction or exempt
or otherwise not required to be licensed in that jurisdiction.

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Contents


Our investment management subsidiary is PNMAC Capital Management, LLC ("PCM"), a
Delaware limited liability company registered with the SEC as an investment
adviser under the Investment Advisers Act of 1940, as amended. PCM has an
investment management contract with PMT, a mortgage real estate investment trust
listed on the New York Stock Exchange under the ticker symbol "PMT".

Operating results

Our operating results are summarized below:

                                                                      Quarter ended March 31,
                                                                 2022                          2021

                                                          (dollars in thousands, except per share amounts)
Revenues:
Net gains on loans held for sale at fair value         $                298,459      $                754,341
Loan origination fees                                                    67,858                       104,037
Fulfillment fees from PennyMac Mortgage Investment
Trust                                                                    16,754                        60,835
Net loan servicing fees                                                 286,309                        39,720
Net interest expense                                                   (23,425)                      (25,632)
Management fees                                                           8,117                         8,449
Other                                                                     3,432                         2,936
Total net revenues                                                      657,504                       944,686
Expenses:
Compensation                                                            245,547                       258,829
Loan origination                                                         75,333                        87,392
Technology                                                               34,786                        33,672
Servicing                                                               (1,246)                        19,183
Other                                                                    68,564                        39,602
Total expenses                                                          422,984                       438,678
Income before provision for income taxes                                234,520                       506,008
Provision for income taxes                                               60,927                       129,140
Net income                                             $                173,593      $                376,868
Earnings per share
Basic                                                  $                   3.11      $                   5.45
Diluted                                                $                   2.94      $                   5.15
Annualized return on average stockholders' equity                         20.4%                         43.4%
Dividend declared per share                            $                   0.20      $                   0.20
Income before provision for income taxes by
segment:
Mortgage banking:
Production                                             $                  9,775      $                362,895
Servicing                                                               224,647                       141,744
Total mortgage banking                                                  234,422                       504,639
Investment management                                                        98                         1,369
                                                       $                234,520      $                506,008
Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization ("EBITDA") (1)           $                168,043      $                674,308
During the quarter:
Interest rate lock commitments issued                  $             25,125,503      $             36,118,713
At end of quarter:
Interest rate lock commitments outstanding             $             10,397,958      $             17,668,145
Unpaid principal balance of loan servicing
portfolio:
Owned:
Mortgage servicing rights and liabilities              $            290,797,891      $            247,541,723
Loans held for sale                                                   5,125,298                    12,959,016
                                                                    295,923,189                   260,500,739
Subserviced for PMT                                                 222,887,371                   188,324,162
                                                       $            518,810,560      $            448,824,901

Net assets of PennyMac Mortgage Investment Trust       $              2,221,938      $              2,357,143
Book value per share                                   $                  62.19      $                  51.78

Provide investors with information complementary to our results

determined by generally accepted accounting principles in United States

(“GAAP”), we disclose Adjusted EBITDA as a non-GAAP measure. Adjusted EBITDA(1) is a metric frequently used in our industry to measure performance

and we believe that this measurement provides additional information that is

useful to investors. Adjusted EBITDA is not a financial measure calculated by

in accordance with GAAP and should not be considered a substitute for net

revenue, or any other performance measure calculated in accordance with GAAP.


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We define "Adjusted EBITDA" as net income plus provision for income taxes,
depreciation and amortization, excluding decrease (increase) in fair value of
mortgage servicing rights ("MSRs") net of mortgage servicing liabilities
("MSLs"), due to changes in the valuation inputs we use in our valuation models,
increase (decrease) in fair value of excess servicing spread ("ESS") payable to
PMT, hedging losses (gains) associated with MSRs, stock-based compensation and
interest expense on corporate debt or corporate revolving credit facilities and
capital lease.

We believe that the presentation of Adjusted EBITDA provides useful information
to investors regarding our results of operations because each measure assists
both investors and management in analyzing and benchmarking the performance and
value of our business. However, other companies may define Adjusted EBITDA
differently, and as a result, our measures of Adjusted EBITDA may not be
directly comparable to those of other companies.

Adjusted EBITDA measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP. Some of these limitations are:

a) they do not reflect all cash expenditures, future capital requirements

expenses or contractual commitments;

b) they do not reflect significant interest charges or cash requirements

necessary to service interest or pay principal on our debt; and

c) they are not adjusted for any non-cash income or expense items that are

reflected in our consolidated statements of cash flows.

Due to these limitations, Adjusted EBITDA measures are not intended as an alternative to net income as an indicator of our operating performance and should not be viewed as measures of the discretionary cash we have available to invest in the growth of our business. or as measures of the cash that will be available to us to meet our obligations.

The following table provides a reconciliation of Adjusted EBITDA to our net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, for each of the periods indicated:

                                                                   Quarter ended March 31,
                                                                     2022            2021

                                                                        (in thousands)
Net income                                                       $     173,593    $   376,868
Provision for income taxes                                              60,927        129,140
Income before provisions for income taxes                              234,520        506,008
Depreciation and amortization                                            

7,011 7,632 Increase in fair value of net MSRs of MSLs due to changes in valuation inputs used in valuation models

(324,066) (306,126) Increase in fair value of ESS payable to PennyMac Mortgage Investment Trust

                                                             -          1,037
Hedging losses associated with MSRs                                    217,860        442,151
Stock­based compensation                                                 

9,275 10,877 Interest expense on corporate debt or revolving credit facilities and capital leases

23,443         12,729
Adjusted EBITDA                                                  $     168,043    $   674,308


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Business Trends
Due to significant inflationary pressures, the U.S. Federal Reserve raised the
Federal Funds rate in the first quarter of 2022 and is expected to continue to
raise interest rates through the year as well as reduce the federal government's
overall portfolio of Treasury and mortgage-backed securities. These resulting
mortgage interest rate increases are expected to drive a decline in the size of
the mortgage origination market from an estimated $4.4 trillion in 2021 to a
current forecast range from $2.6 trillion to $3.1 trillion for 2022 according to
leading economists. These lower overall projected mortgage transaction volumes
and higher interest rates are expected to drive a decrease in our mortgage
production activities and increase competition in the mortgage production
business year over year, while also leading to declines in prepayment speeds in
our mortgage servicing portfolio from the elevated levels experienced in 2021.
We expect to reduce business expenses to align with the lower projected mortgage
production activities for the remainder of the year.

Earnings before provisions for income taxes


For the quarter ended March 31, 2022, income before provision for income taxes
decreased $271.5 million compared to the same period in 2021. The decrease was
primarily due to a $455.9 million decrease in Net gains on loans held for sale
at fair value, a $36.2 million decrease in Loan origination fees and a $44.1
million in fulfillment fees from PMT due to lower production volume and gain on
sale margins during the quarter ended March 31, 2022 compared to the same period
in 2021, partially offset by a $246.6 million increase in Net loan servicing
fees reflecting improved hedging results.

Net earnings on loans held for sale at fair value

In our production segment, revenues reflect effects of increasing interest rates
on both demand for mortgage loans and gain on sale margins during the quarter
ended March 31, 2022 compared to the strong demand due to the historically low
interest rate environment that prevailed during the same period in 2021.

During the quarter ended March 31, 2022, we recognized Net gains on loans held
for sale at fair value totaling $298.5 million, a decrease of $455.9 million
compared to the same period in 2021. The decrease was primarily due to a lower
production volume, lower gain on sale margins across all production channels and
a decrease in redelivery gains as a result of lower EBO loan volume and
modifications during the quarter ended March 31, 2022 compared to the same
period in 2021.

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Our net gains on loans held for sale are summarized below:

                                                                Quarter ended March 31,
                                                                 2022              2021

                                                                     (in thousands)
From non-affiliates:
Cash gains:
Loans                                                       $    (944,221)    $       82,712
Hedging activities                                                 890,087           736,225
Total cash gains                                                  (54,134)           818,937
Non-cash gains:
Change in fair value of loans and derivative financial
instruments outstanding at end of quarter:
Interest rate lock commitments                                   (284,294) 
       (339,086)
Loans                                                              220,430           105,222
Hedging derivatives                                              (189,308)         (273,687)
                                                                 (253,172)         (507,551)
Mortgage servicing rights and mortgage servicing
liabilities resulting from loan sales                              616,302 

463 571

Provisions for losses related to representations and warranties: In the context of credit assignments

                                             (4,054)  

(10,053)

Reductions in liability due to change in estimate                    3,169             3,685
Total non-cash gains                                               362,245 

(50,348)

Total gains on sale from non-affiliates                            308,111 

768,589

From PennyMac Mortgage Investment Trust (primarily cash)           (9,652) 

(14,248)

                                                            $      298,459    $      754,341
During the quarter:
Interest rate lock commitments issued:
By loan type:
Government-insured or guaranteed mortgage loans             $   17,133,215    $   25,146,879
Conventional conforming mortgage loans                           7,974,275 
      10,971,834
Jumbo mortgage loans                                                18,013                 -
                                                            $   25,125,503    $   36,118,713
By production channel:
Consumer direct                                             $    9,111,513    $   13,384,216
Broker direct                                                    3,526,629         5,670,798
Correspondent                                                   12,487,361        17,063,699
                                                            $   25,125,503    $   36,118,713
At end of quarter:
Loans held for sale at fair value                           $    5,119,234    $   13,385,789
Commitments to fund and purchase loans                      $   10,397,958 
  $   17,668,145


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  Table of Contents

Non-monetary elements of gain on sale of loans held for sale


Our gains on loans held for sale include both cash and non-cash elements. We
recognize a significant portion of our gains on loans held for sale when we make
commitments to purchase or fund mortgage loans. We recognize this gain in the
form of interest rate lock commitments ("IRLC"). We adjust our initial gain
amount as the loan purchase or origination process progresses until the loan is
either funded or cancelled. We also receive non-cash proceeds on sale that
include our estimate of the fair value of MSRs and we incur liabilities for
mortgage servicing liabilities (which represent the fair value of the costs we
expect to incur in excess of the fees we receive for the early buyout of
delinquent loans ("EBO loans") we have resold to third party investors) and for
the fair value of our estimate of the losses we expect to incur relating to the
representations and warranties we provide in our loan sale transactions.

The MSRs, MSLs, and liability for representations and warranties we recognize
represent our estimate of the fair value of future benefits and costs we will
realize for years in the future. These estimates represented approximately 206%
of our gain on sale of loans held for sale at fair value for the quarter ended
March 31, 2022, as compared to 61% for the quarter ended March 31, 2021. These
estimates change as circumstances change and changes in these estimates are
recognized in income in subsequent periods. Subsequent changes in the fair value
of our MSRs significantly affect our results of operations.

Interest rate lock-in commitments, mortgage servicing rights and mortgage servicing liabilities

The methods and key inputs we use to measure and update our measurements of
IRLCs, MSRs and MSLs are detailed in Note 6 - Fair value - Valuation Techniques
and Inputs to the consolidated financial statements included in this Quarterly
Report.

Representations and Warranties

Our agreements with the purchasers and insurers include representations and
warranties related to the loans we sell. The representations and warranties
require adherence to purchaser and insurer 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 law.

In the event of a breach of our representations and warranties, we may be
required to either repurchase the loans with the identified defects or indemnify
the purchaser or insurer. In such cases, we bear any subsequent credit losses on
the loans. Our credit losses may be reduced by any recourse we have to
correspondent originators that sold such loans to us and breached similar or
other representations and warranties. In such event, we have the right to seek a
recovery of related repurchase losses from that correspondent seller.

Our representations and warranties are generally not subject to stated limits of
exposure. However, we believe that the current unpaid principal balance ("UPB")
of loans sold by us and subject to representation and warranty liability to date
represents the maximum exposure to repurchases related to representations and
warranties.

The level of the liability for losses under representations and warranties is
difficult to estimate and requires considerable judgment. The level of loan
repurchase losses is dependent on economic factors, purchaser or insurer loss
mitigation strategies, and other external conditions that may change over the
lives of the underlying loans. Our estimate of the liability for representations
and warranties is developed by our credit administration staff and approved by
our senior management credit committee which includes our senior executives and
senior management in our loan production, loan servicing and credit risk
management areas.

The method used to estimate our losses on representations and warranties is a
function of our estimate of future defaults, loan repurchase rates, the severity
of loss in the event of default, if applicable, and the probability of
reimbursement by the correspondent loan seller. We establish a liability at the
time loans are sold and review our liability estimate on a periodic basis.

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Contents


We recorded provisions for losses under representations and warranties relating
to current loan sales as a component of Net gains on loans held for sale at fair
value totaling $4.1 million for the quarter ended March 31, 2022 compared to
$10.1 million for the quarter ended March 31, 2021. The decrease in the
provision relating to current loan sales is primarily attributable to a
reduction in loan sales.

We also recorded reductions in the liability of $3.2 million during the quarter
ended March 31, 2022 compared to $3.7 million during the quarter ended March 31,
2021. The reductions in the liability resulted from previously sold loans
meeting performance criteria established by the Agencies which significantly
limit the likelihood of certain repurchase or indemnification claims.

The following is a summary of loan buyback activity and the UPB of loans subject to representations and warranties:

                                                               Quarter ended March 31,
                                                                2022              2021

                                                                    (in thousands)
During the quarter:
Indemnification activity:
Loans indemnified at beginning of quarter                  $       15,079    $       13,788
New indemnifications                                                5,641  

2,155

Less indemnified loans sold, repaid or refinanced                     779  

1,704

Loans indemnified at end of quarter                        $       19,941  
 $       14,239
Repurchase activity:
Total loans repurchased                                    $       17,529    $       17,986
Less:
Loans repurchased by correspondent lenders                          7,458  

8,689

Loans repaid by borrowers or resold with defects
resolved                                                            5,496  

2,649

Net loans repurchased with losses chargeable to
liability for representations and warranties               $        4,575  

$6,648
Losses charged to representations and warranties liabilities

                                                 $        1,612   

$628


At end of quarter:
Unpaid principal balance of loans subject to
representations and warranties                             $  271,146,169    $  220,865,034
Liability for representations and warranties               $       42,794  

$38,428



During the quarter ended March 31, 2022, we repurchased loans totaling $17.5
million. We recorded losses of $1.6 million net of recoveries during the quarter
ended March 31, 2022. If the outstanding balance of loans we purchase and sell
subject to representations and warranties increases, the loans sold continue to
season, economic conditions change, correspondent lenders become unwilling or
unable to repurchase defective loans, or investor and insurer loss mitigation
strategies are adjusted, the level of repurchase and loss activity may increase.

Loan origination fees


Loan origination fees decreased $36.2 million during the quarter ended March 31,
2022 compared to the same period in 2021. The decreases were primarily due to a
decrease in the volume of loans we produced.

PennyMac Mortgage Investment Trust Execution Fee

Fulfillment fees from PMT represent fees we collect for services we perform on
behalf of PMT in connection with the acquisition, packaging and sale of loans.
The fulfillment fees were calculated based on the number of loans we fulfill for
PMT.

Processing fees have gone down $44.1 million during the quarter ended March 31, 2022
compared to the same period in 2021. The decrease is mainly due to a lower loan production volume.

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Net Loan Servicing Fees

Our net loan servicing fee income has two primary components: fees earned for
servicing the loans and the effects of MSR and MSL valuation changes, net of
hedging results as summarized below:

                              Quarter ended March 31,
                                2022            2021

                                   (in thousands)
Loan servicing fees         $    291,258     $   259,445
Effects of MSRs and MSLs         (4,949)       (219,725)
Net loan servicing fees     $    286,309     $    39,720


Loan Servicing Fees

Here is a summary of our loan servicing fees:

                                              Quarter ended March 31,
                                               2022             2021

                                                   (in thousands)
Loan servicing fees:
From non-affiliates                        $     244,809    $     210,753
From PennyMac Mortgage Investment Trust           21,088           19,093
Other
Late charges                                      11,956            8,964
Other                                             13,405           20,635
                                                  25,361           29,599
                                           $     291,258    $     259,445
Average loan servicing portfolio
MSRs and MSLs                              $ 285,217,528    $ 244,623,917
Subserviced for PMT                        $ 221,886,632    $ 181,228,135


Loan servicing fees from non-affiliates generally relate to our MSRs which are
primarily related to servicing we provide for loans included in Agency
securitizations. These fees are contractually established at an annualized
percentage of the unpaid principal balance of the loan serviced and we collect
these fees from borrower payments. Loan servicing fees from PMT are primarily
related to PMT's MSRs and are established at monthly per-loan amounts based on
whether the loan is a fixed-rate or adjustable-rate loan and the loan's
delinquency or foreclosure status as detailed in Note 4 - Transactions with
Related Parties to the consolidated financial statements included in this
Report. Other loan servicing fees are comprised primarily of borrower-contracted
fees such as late charges and reconveyance fees.

The increases in loan servicing fees from non-affiliates and from PMT for the
quarter ended March 31, 2022 was primarily due to growth of our loan servicing
portfolio as compared to the same period in 2021. The decreases in other loan
servicing fees for the quarter ended March 31, 2022, was primarily due to
decreases in fees related to borrower early loan payoffs resulting from the
reduction in prepayment activity we experienced in the current rising interest
rate environment as compared to the same period in 2021.

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Contents

Mortgage servicing rights and mortgage servicing liabilities


We have elected to carry our servicing assets and liabilities at fair value.
Changes in fair value have two components: changes due to realization of the
contractual servicing fees and changes due to changes in market inputs used to
estimate the fair value of MSRs and MSLs. We endeavor to moderate the effects of
changes in fair value by entering into derivatives transactions and, until March
2021, by financing certain of our purchases of MSRs with the sale of a portion
of the MSR assets' cash flows to PMT in the form of ESS.

Change in fair value of MSRs, MSLs and ESS and the related hedging results are
summarized below:

                                                            Quarter ended March 31,
                                                              2022             2021

                                                                 (in thousands)
MSR and MSL valuation changes:
Realization of cash flows                                 $   (111,155)    $   (82,663)
Other changes in fair value of mortgage servicing
rights and mortgage servicing liabilities                       324,066    

306 126

                                                                212,911     

223,463

Change in fair value of excess servicing spread                       -    

(1,037)

Hedging results                                               (217,860)    

(442,151)

Total change in fair value of mortgage servicing
rights, mortgage servicing liabilities and excess
servicing spread financing net of hedging results         $     (4,949)    $  (219,725)
Average balances:
Mortgage servicing rights                                 $   4,311,413    $  2,931,683
Mortgage servicing liabilities                            $       2,679    $     46,060
Excess servicing spread financing                         $           -    $     87,451
At end of quarter:
Mortgage servicing rights                                 $   4,707,039    $  3,268,910
Mortgage servicing liabilities                            $       2,564   

$46,026

Changes in realization of cash flows are influenced by changes in the level of
servicing assets and liabilities and changes in estimates of the remaining cash
flows to be realized. During the quarter ended March 31, 2022, realization of
cash flows increased primarily due to the growth in our investment in MSRs
partially offset by a reduction in the rate at which the MSRs are expected to be
realized as a result of slower prepayment expectations in 2022 as compared to
2021.

Other changes in fair value of MSRs increased similarly during both the quarter
ended March 31, 2022 and the quarter ended March 31, 2021 due to significant
increases in interest rates and resulting decreases in expected future
prepayment speeds in each period.

Hedging results reflect valuation losses attributable to the effects of interest
rate increases on the fair value of the hedging instruments during the quarters
ended March 31, 2022 and 2021. The loss from hedging activities decreased during
the quarter ended March 31, 2022 compared to the same period in 2021 primarily
due to the higher hedging cost as a result of market volatility during the
quarter ended March 31, 2021.

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Contents

Here is a summary of our portfolio of loan services:

                                                               March 31,       December 31,
                                                                  2022              2021

                                                                      (in thousands)
Loans serviced
Prime servicing:
Owned:
Mortgage servicing rights and liabilities
Originated                                                    $ 268,886,759    $  254,524,015
Acquired                                                         21,911,132        23,861,358
                                                                290,797,891       278,385,373
Loans held for sale                                               5,125,298         9,430,766
                                                                295,923,189       287,816,139
Subserviced for PMT                                             222,864,324       221,864,120
Total prime servicing                                           518,787,513       509,680,259
Special servicing subserviced for PMT                                23,047
           28,022
Total loans serviced                                          $ 518,810,560    $  509,708,281
Delinquencies:
Owned servicing (1):
30-89 days                                                    $   6,924,722    $    6,943,327
90 days or more                                                   7,811,438         9,838,648
                                                              $  14,736,160    $   16,781,975
Delinquent loans in COVID-19 pandemic-related forbearance:
30-89 days                                                    $   1,134,056    $    1,111,151
90 days or more                                                   2,337,820         2,732,089
                                                              $   3,471,876    $    3,843,240
Subserviced for PMT (1):
30-89 days                                                    $   1,213,755    $    1,164,782
90 days or more                                                   1,199,376         1,810,910
                                                              $   2,413,131    $    2,975,692
Delinquent loans in COVID-19 pandemic-related forbearance:
30-89 days                                                    $     219,981    $      171,114
90 days or more                                                     487,985           638,703
                                                              $     707,966    $      809,817

Includes defaulted loans in COVID-19 pandemic-related forbearance plans that (1) were requested by borrowers requesting payment relief in accordance with the

    CARES Act.


Net Interest expense

Net interest expense decreased $2.2 million during the quarter ended March 31, 2022 compared to the same period in 2021. The decrease is mainly explained by:

a decrease in the placement fees we receive in relation to the custodial funds we

? manage due to lower average custodial fund balances held, partially offset

through increased rates of pay;

a decrease in the interest deficit on repayments of loans managed for the Agency

? securitizations, reflecting lower loan repayments due to lower

borrower refinancing activity due to the higher interest rate environment;

partially offset by

? an increase in interest on senior unsecured notes.


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  Table of Contents

PennyMac Mortgage Investment Trust management fees

Management fees have decreased $332,000 during the quarter ended March 31, 2022
compared to the same period in 2021. The decrease is due to the decrease in PMT’s average shareholders’ equity, on which its base management fees are based. We did not earn any performance incentive awards during the quarters ended
March 31, 2022 or 2021.


Expenses

Compensation

Remuneration expenses are summarized below:

                                       Quarter ended March 31,
                                         2022             2021

                                            (in thousands)
Salaries and wages                   $     147,144     $  143,700
Incentive compensation                      54,298         72,655
Taxes and benefits                          34,830         31,597
Stock and unit-based compensation            9,275         10,877
                                     $     245,547     $  258,829
Head count:
Average                                      6,924          6,882
Quarter end                                  6,308          7,075

Compensation expense decreased $13.3 million during the quarter ended March 31, 2022 compared to the same period in 2021. The decrease is primarily due to lower incentive compensation accruals due to reduced achievement of profitability targets.

Loan origination


Loan origination expense decreased $12.1 million during the quarter ended March
31, 2022 compared to the same period in 2021. The decrease was primarily due to
decreased lending activities during the quarter ended March 31, 2022 compared to
the same period during 2021.

Servicing

Servicing expenses decreased $20.4 million during the quarter ended March 31,
2022 compared to the same period in 2021. This decrease in servicing expenses
was primarily due to a larger reversal of the provision for estimated servicing
advance losses recorded in prior periods during the quarter ended March 31,
2022. The reduction reflects the recent improvements in the performance of
our
servicing portfolio.

Marketing and advertising

Marketing and advertising spending increased $15.7 million during the quarter ended March 31, 2022 compared to the same period in 2021. The increase is mainly due to our new brand marketing campaign and increased direct-to-consumer lending marketing spend.

Professional services

Professional expenses have increased $6.8 million during the quarter ended March 31, 2022 compared to the same period in 2021. The increase is mainly due to higher legal and consulting fees related to our investments in technology infrastructure.

Provision for income taxes

Our effective tax rate was 26.0% during the quarter ended March 31, 2022
compared to 25.5% during the same period in 2021.


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Contents

© Edgar Online, source Previews

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ENOVA INTERNATIONAL, INC. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS (Form 10-Q) https://dininginnewengland.com/enova-international-inc-management-report-and-analysis-of-financial-position-and-operating-results-form-10-q/ Tue, 03 May 2022 21:30:08 +0000 https://dininginnewengland.com/enova-international-inc-management-report-and-analysis-of-financial-position-and-operating-results-form-10-q/ The following discussion of financial condition, results of operations, liquidity and capital resources and certain factors that may affect future results, including economic and industry-wide factors, of Enova International, Inc. and its subsidiaries should be read in conjunction with our consolidated financial statements and accompanying notes included under Part I, Item 1 of this Quarterly […]]]>
The following discussion of financial condition, results of operations,
liquidity and capital resources and certain factors that may affect future
results, including economic and industry-wide factors, of Enova International,
Inc. and its subsidiaries should be read in conjunction with our consolidated
financial statements and accompanying notes included under Part I, Item 1 of
this Quarterly Report on Form 10-Q, as well as with Management's Discussion and
Analysis of Financial Condition and Results of Operations included in our Annual
Report on Form 10-K for the year ended December 31, 2021. This Management's
Discussion and Analysis of Financial Condition and Results of Operations
contains forward-looking statements. The matters discussed in these
forward-looking statements are subject to risk, uncertainties, and other factors
that could cause actual results to differ materially from those made, projected
or implied in the forward-looking statements. Please see "Risk Factors" and
"Cautionary Statement Concerning Forward-Looking Statements" for a discussion of
the uncertainties, risks and assumptions associated with these statements.

COMPANY OVERVIEW


We are a leading technology and analytics company focused on providing online
financial services. In 2021, we extended approximately $3.1 billion in credit or
financing to borrowers and for the three months ended March 31, 2022, we
extended approximately $1.0 billion in credit or financing to borrowers. As of
March 31, 2022, we offered or arranged loans or draws on lines of credit to
consumers in 38 states in the United States and Brazil. We also offered
financing to small businesses in all 50 states and Washington D.C. in the United
States. We use our proprietary technology, analytics and customer service
capabilities to quickly evaluate, underwrite and fund loans or provide
financing, allowing us to offer consumers and small businesses credit or
financing when and how they want it. Our customers include the large and growing
number of consumers who and small businesses which have bank accounts but use
alternative financial services because of their limited access to more
traditional credit from banks, credit card companies and other lenders. We were
an early entrant into online lending, launching our online business in 2004, and
through March 31, 2022, we have completed approximately 56.0 million customer
transactions and collected more than 61 terabytes of currently accessible
customer behavior data since launch, allowing us to better analyze and
underwrite our specific customer base. We have significantly diversified our
business over the past several years having expanded the markets we serve and
the financing products we offer. These financing products include installment
loans and receivables purchase agreements ("RPAs") and line of credit accounts.

We believe our customers highly value our products and services as an important
component of their personal or business finances because our products are
convenient, quick and often less expensive than other available alternatives. We
attribute the success of our business to our advanced and innovative technology
systems, the proprietary analytical models we use to predict the performance of
loans and finance receivables, our sophisticated customer acquisition programs,
our dedication to customer service and our talented employees.

We have developed proprietary underwriting systems based on data we have
collected over our more than 17 years of experience. These systems employ
advanced risk analytics, including machine learning and artificial intelligence,
to decide whether to approve financing transactions, to structure the amount and
terms of the financings we offer pursuant to jurisdiction-specific regulations
and to provide customers with their funds quickly and efficiently. Our systems
closely monitor collection and portfolio performance data that we use to
continually refine machine learning-enabled analytical models and statistical
measures used in making our credit, purchase, marketing and collection
decisions. Approximately 90% of models used in our analytical environment are
machine learning-enabled.

Our flexible and scalable technology platform allows us to process and complete
customers' transactions quickly and efficiently. In 2021, we processed
approximately 2.2 million transactions, and we continue to grow our loans and
finance receivable portfolios and increase the number of customers we serve
through desktop, tablet and mobile platforms. Our highly customizable technology
platform allows us to efficiently develop and deploy new products to adapt to
evolving regulatory requirements and consumer preference, and to enter new
markets quickly. In 2012, we launched a new product in the United States
designed to serve near-prime customers. In June 2014, we launched our business
in Brazil, where we arrange financing for borrowers through a third-party
lender. In addition, in July 2014, we introduced a new line of credit product in
the United States to serve the needs of small businesses. In June 2015, we
further expanded our product offering by acquiring certain assets of a company
that provides financing and installment loans to small businesses by offering
RPAs. In October 2020, we acquired, through a merger, On Deck Capital Inc.
("OnDeck"), a small business lending company offering lending and funding
solutions to small businesses in the U.S., Australia and Canada, to expand our
small business offerings. In March 2021, we acquired Pangea Universal Holdings
("Pangea"), which provides mobile international money transfer services to
customers in the U.S with a focus on Latin America and Asia. These new products
have allowed us to further diversify our product offerings and customer base.

We have been able to consistently acquire new customers and successfully
generate repeat business from returning customers when they need financing. We
believe our customers are loyal to us because they are satisfied with our
products and services. We acquire new customers from a variety of sources,
including visits to our own websites, mobile sites or applications, and through
direct marketing,
                                       19
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affiliate marketing, lead providers and relationships with other lenders. We
believe that the online convenience of our products and our 24/7 availability to
accept applications with quick approval decisions are important to our
customers.

Once a potential customer submits an application, we quickly provide a credit or
purchase decision. If a loan or financing is approved, we or our lending partner
typically fund the loan or financing the next business day or, in some cases,
the same day. During the entire process, from application through payment, we
provide access to our well-trained customer service team. All of our operations,
from customer acquisition through collections, are structured to build customer
satisfaction and loyalty, in the event that a customer has a need for our
products in the future. We have developed a series of sophisticated proprietary
scoring models to support our various products. We believe that these models are
an integral component of our operations and allow us to complete a high volume
of customer transactions while actively managing risk and the related credit
quality of our loan and finance receivable portfolios. We believe our successful
application of these technological innovations differentiates our capabilities
relative to competing platforms as evidenced by our history of strong growth and
stable credit quality.

PRODUCTS AND SERVICES

Our online financing products and services provide customers with a deposit of
funds to their bank account in exchange for a commitment to repay the amount
deposited plus fees, interest and/or revenue on the receivables purchased. We
originate, arrange, guarantee or purchase installment loans, line of credit
accounts and receivables purchase agreements ("RPAs") to consumers and small
businesses. We have one reportable segment that includes all of our online
financial services.

Installment loans. Installment loans include longer-term loans that require the
outstanding principal balance to be paid down in multiple installments and
shorter-term single payment loans. Our installment loans are either written
directly by us, purchased as part of our Banking Programs as discussed below, or
are those that we arrange and guarantee as part of our credit services
organization and credit access business programs, which we refer to as our CSO
programs. We offer, or arrange through CSO programs, multi- or single-payment
unsecured consumer loan products in 38 states in the United States and small
business installment loans in 47 states and in Washington D.C. Internationally,
we also offer or arrange multi-payment unsecured consumer installment loan
products in Brazil and small business installment loan products through
affiliates in Australia and Canada. Terms for our installment loan products
range between two and 60 months, and single-pay consumer loans generally have
terms of seven to 90 days. Loans may be repaid early at any time with no
additional prepayment charges.

Line of credit accounts. We directly offer, or purchase a participation interest
in receivables through our Bank Programs, new consumer line of credit accounts
in 30 states (and continue to service existing line of credit accounts in two
additional states) in the United States and business line of credit accounts in
47 states and in Washington D.C. in the United States, which allow customers to
draw on their unsecured line of credit in increments of their choosing up to
their credit limit. Customers may pay off their account balance in full at any
time or make required minimum payments in accordance with the terms of the line
of credit account. We also offer small business line of credit accounts in
Canada. As long as the customer's account is in good standing and has credit
available, customers may continue to borrow on their line of credit.

Receivables purchase agreements. Under RPAs, small businesses receive funds in
exchange for a portion of the business's future receivables at an agreed upon
discount. In contrast, lending is a commitment to repay principal and interest
and/or fees. A small business customer who enters into an RPA commits to
delivering a percentage of its receivables through ACH or wire debits or by
splitting credit card receipts until all purchased receivables are delivered. We
offer RPAs in all 50 states and in Washington D.C. in the United States.

CSO programs. We currently operate a CSO program in Texas. Through CSO programs,
we provide services related to third-party lenders' multi- and single-pay
installment consumer loan products by acting as a credit services organization
or credit access business on behalf of consumers in accordance with applicable
state laws. Services offered under our CSO program include credit-related
services such as arranging loans with independent third-party lenders and
assisting in the preparation of loan applications and loan documents ("CSO
loans"). When a consumer executes an agreement with us under our CSO program, we
agree, for a fee payable to us by the consumer, to provide certain services, one
of which is to guarantee the consumer's obligation to repay the loan received by
the consumer from the third-party lender if the consumer fails to do so. For CSO
loans, each lender is responsible for providing the criteria by which the
consumer's application is underwritten and, if approved, determining the amount
of the consumer loan. We, in turn, are responsible for assessing whether or not
we will guarantee such loan. The guarantee represents an obligation to purchase
specific single-payment loans, which for our CSO program, have terms of less
than 90 days, and specific installment loans, which have terms of up to six
months, if they go into default.

Bank program. We operate a program with a bank to provide marketing services and
loan servicing for near-prime unsecured consumer installment loans and,
beginning in January 2021, line of credit accounts. Under the program, we
receive marketing and servicing fees while the bank receives an origination fee.
The bank has the ability to sell and we have the option, but not the
requirement, to purchase the loans the bank originates and, in the case of line
of credit accounts, a participation interest in the receivables from draws on
those accounts. We do not guarantee the performance of the loans and line of
credit accounts originated by the bank. As part of the OnDeck business both
prior and subsequent to Enova's acquisition, OnDeck operates a program with
                                       20
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a separate bank to provide marketing services and loan servicing for small
business installment loans and line of credit accounts. Under the OnDeck
program, we receive marketing fees while the bank receives origination fees and
certain program fees. The bank has the ability to sell and we have the option,
but not the requirement, to purchase the installment loans the bank originates
and, in the case of line of credit accounts, extensions under those line of
credit accounts. We do not guarantee the performance of the loans or line of
credit accounts originated by the bank.

Money transfer business. Through the acquisition of Pangea, we operate a money
transfer platform that allows customers to send money from the United States to
Mexico, other Latin American countries and Asia. The customer pays us in U.S.
dollars, and we then make local currency available to the intended recipient of
the transfer in one of many termination countries. Our revenue model includes a
fee per transfer and an exchange rate spread. Our customers can access our
proprietary platform via the website, Android app, or iOS (Apple) app.

OUR MARKETS

We currently offer our services in the following countries:

United States. We began our online business in the United States in May 2004. As
of March 31, 2022, we provided services in all 50 states and Washington D.C. We
market our financing products under the names CashNetUSA at www.cashnetusa.com,
NetCredit at www.netcredit.com, OnDeck at www.ondeck.com, Headway Capital at
www.headwaycapital.com, The Business Backer at www.businessbacker.com, and
Pangea at www.pangeamoneytransfer.com.

Brazil. In June 2014we started our business in Brazil under the Simplic name on www.simplic.com.br, where we arrange installment loans for a third-party lender. We plan to continue to invest in our financial services program and expand it by Brazil.

Australia. As part of our acquisition of OnDeck in October 2020, we offer
installment loans to small businesses in Australia through an entity that was a
majority-owned subsidiary until we sold a portion of our interest in December
2021. Subsequent to the partial divestiture, we classify the affiliate as an
equity method investment.

Canada. As part of our acquisition of OnDeck in October 2020we offer installment loans and lines of credit to small businesses from Canada
through an affiliated company which we classify as an investment using the equity method.


Our internet websites and the information contained therein or connected thereto
are not intended to be incorporated by reference into this Quarterly Report on
Form 10-Q.

RECENT REGULATORY DEVELOPMENTS

Consumer Financial Protection Bureau (“CFPB”)


We received a Civil Investigative Demand ("CID") from the CFPB concerning
certain loan processing issues. We have been cooperating fully with the CFPB by
providing data and information in response to the CID. We anticipate being able
to expeditiously complete the investigation as several of the issues were
self­disclosed and we have provided, and will continue to provide, restitution
to customers who may have been negatively impacted.

On October 6, 2017, the CFPB issued its final rule entitled "Payday, Vehicle
Title, and Certain High-Cost Installment Loans" (the "Small Dollar Rule"), which
covers certain loans that we offer. The Small Dollar Rule requires that lenders
who make short-term loans and longer-term loans with balloon payments reasonably
determine consumers' ability to repay the loans according to their terms before
issuing the loans. The Small Dollar Rule also introduces new limitations on
repayment processes for those lenders as well as lenders of other longer-term
loans with an annual percentage rate greater than 36 percent that include an ACH
authorization or similar payment provision. If a consumer has two consecutive
failed payment attempts, the lender must obtain the consumer's new and specific
authorization to make further withdrawals from the consumer's bank account. For
loans covered by the Small Dollar Rule, lenders must provide certain notices to
consumers before attempting a first payment withdrawal or an unusual withdrawal
and after two consecutive failed withdrawal attempts. On June 7, 2019, the CFPB
issued a final rule to set the compliance date for the mandatory underwriting
provisions of the Small Dollar Rule to November 19, 2020. On July 7, 2020, the
CFPB issued a final rule rescinding the ability to repay ("ATR") provisions of
the Small Dollar Rule along with related provisions, such as the establishment
of registered information systems for checking ATR and reporting loan activity.
The payment provisions of the Small Dollar Rule remain in place, but remain
stayed indefinitely by the United States Court of Appeals for the Fifth Circuit,
which is hearing an appeal from the plaintiff on a constitutional challenge to
the Small Dollar Rule. On October 14, 2021, the Fifth Circuit ruled that the
Small Dollar Rule will not take effect until 286 days after the Fifth Circuit
rules on the appeal. If the Small Dollar Rule does become effective in its
current proposed form, we will need to make certain changes to our payment
processes and customer notifications in our U.S. consumer lending business.
                                       21
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New Mexico HB 132


On February 15, 2022, the New Mexico Legislature passed HB 132. The bill imposes
a 36% rate cap on loans up to $10,000. Additionally, HB 132 provides for the
application of a predominant economic interest test for bank service
arrangements whereby a broker or servicer with a predominant economic interest
in a loan is considered to be the "true lender" for purposes of applying the 36%
rate cap. The New Mexico Governor signed the bill into law on March 1, 2022. The
law will take effect on January 1, 2023.

RESULTS OF OPERATIONS

COVID-19[feminine]


The COVID-19 pandemic has severely impacted global economic conditions,
resulting in substantial volatility in the financial markets, increased
unemployment, and operational challenges resulting from measures that
governments have imposed to control its spread. We have implemented a number of
procedures in response to the pandemic to support the safety and well-being of
our employees, customers and stockholders that continue through the date of this
report:

As shelter-in-place orders and general distancing guidelines were released, we
moved quickly to transition virtually all of our employees to a remote work
environment. As COVID-19 cases declined, we reopened our offices to allow
eligible employees to return to work in an office environment on a voluntary
basis. We plan to transition to a hybrid work model where employees work a
portion of the week in the office and have the option to work remotely for the
remaining days. Certain eligible positions may work partially or fully remote.
Appropriate safety measures continue to be followed to protect employees working
on site. We will continue to follow government mandates and adjust when
appropriate to prioritize employee safety.

We have actively worked with our customers to understand their financial situation, waive late fees, offer a variety of repayment options to increase flexibility, and reduce or defer payments for affected customers.

We took measures to adjust our underwriting procedures, which reduced exposure
to more heavily impacted consumers and businesses. We adjusted loan and draw
sizes as well as shortened duration in an effort to reduce risk in this volatile
environment. Certain of these measures have eased since the height of the
pandemic, with improvement of economic conditions and our outlook.

From a loan valuation perspective, at the onset of the COVID-19 pandemic, we
deemed it appropriate to increase the discount rates used in our
internally-developed valuation models, thereby lowering loan fair values, to
capture the increase in potential volatility in expected cash flows due to the
unprecedented nature of the pandemic and governmental response. These rates
remained consistent for the remainder of 2020. Over the course of 2021, we noted
a tightening of credit spreads in observable pricing in the market; as such, we
reduced the discount rates used in our valuations. As of December 31, 2021, our
discount rates had generally returned to the levels utilized immediately prior
to the pandemic. As of March 31, 2022, we increased our discount rates based
primarily on movements in the market during the quarter. We believe the
adjustments to our discount rates to be responsive to changes in the market and
representative of what a market participant would use.

After seeing increases in delinquency and charge-offs early in the pandemic, we
experienced significant improvements to these metrics over the remainder of 2020
and into 2021. The U.S. government provided multiple rounds of stimulus
assistance to taxpayers and businesses. Positive COVID-19 test counts in the
U.S. generally decreased across the first half of 2021 although rose again in
the second half of 2021 with the spread of the Delta and Omicron variants. In
certain situations, management concluded that the probability of future
charge-offs was higher than what we had experienced in the past and, therefore,
increased anticipated charge-offs in our fair value models. As of March 31,
2022, we continue to utilize this approach and have adjusted charge-off
expectations where appropriate. We deemed the resulting fair value to be an
appropriate market-based exit price that considers current market conditions at
March 31, 2022.

We continue to monitor this pandemic closely and plan to make future changes to respond to the situation as it continues to evolve.

STRONG POINTS

Our financial results for the three-month period ended March 31, 2022or the current quarter, are summarized below.

Consolidated total revenue increased $126.3 million, or 48.7%, to $385.7 million
in the current quarter compared to $259.4 million for the three months ended
March 31, 2021, or the prior year quarter.

Consolidated net sales were $268.7 million compared to $238.4 million during the quarter of the previous year.

Consolidated income from operations decreased $32.7 million, or 26.5%, to $90.8
million in the current quarter, compared to $123.5 million in the prior year
quarter.

Consolidated net income was $52.4 million in the current quarter compared to
$75.9 million in the prior year quarter. Consolidated diluted income per share
was $1.50 in the current quarter compared to $2.03 in the prior year quarter.
                                       22
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PREVIEW

The following tables reflect our results of operations for the periods indicated, both in dollars and as a percentage of total revenue (in thousands of dollars, except per share data):

                                                               Three Months Ended March 31,
                                                                2022                  2021
Revenue
Loans and finance receivables revenue                      $       381,141       $      257,297
Other                                                                4,590                2,147
Total Revenue                                                      385,731              259,444
Change in Fair Value                                              (117,042 )            (21,078 )
Net Revenue                                                        268,689              238,366
Operating Expenses
Marketing                                                           93,171               28,568
Operations and technology                                           40,730               35,627
General and administrative                                          34,528               44,089
Depreciation and amortization                                        9,514                6,627
Total Operating Expenses                                           177,943              114,911
Income from Operations                                              90,746              123,455
Interest expense, net                                              (22,483 )            (19,914 )
Foreign currency transaction loss                                     (314 )                (34 )
Equity method investment income                                        328                  558
Other nonoperating expenses                                              -                 (378 )
Income before Income Taxes                                          68,277              103,687
Provision for income taxes                                          15,834               27,716
Net income before noncontrolling interest                           52,443               75,971
Less: Net income attributable to noncontrolling interest                 -                   51

Net income attributable to Enova International, Inc. $52,443

      $       75,920
Earnings per common share - diluted                        $          1.50  

$2.03

Revenue

Loans and finance receivables revenue                                 98.8 %               99.2 %
Other                                                                  1.2                  0.8
Total Revenue                                                        100.0                100.0
Change in Fair Value                                                 (30.3 )               (8.1 )
Net Revenue                                                           69.7                 91.9
Expenses
Marketing                                                             24.2                 11.0
Operations and technology                                             10.6                 13.7
General and administrative                                             8.9                 17.0
Depreciation and amortization                                          2.5                  2.6
Total Expenses                                                        46.2                 44.3
Income from Operations                                                23.5                 47.6
Interest expense, net                                                 (5.8 )               (7.7 )
Foreign currency transaction loss                                     (0.1 )                  -
Equity method investment income                                        0.1                  0.2
Other nonoperating expenses                                              -                 (0.1 )
Income before Income Taxes                                            17.7                 40.0
Provision for income taxes                                             4.1                 10.7
Net income before noncontrolling interest                             13.6                 29.3
Less: Net income attributable to noncontrolling interest                 -                    -
Net income attributable to Enova International, Inc.                  13.6 %               29.3 %


NON-GAAP FINANCIAL MEASURES

In addition to the financial information prepared in conformity with generally
accepted accounting principles ("GAAP"), we provide historical non-GAAP
financial information. We believe that presentation of non-GAAP financial
information is meaningful and useful in understanding the activities and
business metrics of our operations. We believe that these non-GAAP financial
measures reflect an additional way of viewing aspects of our business that, when
viewed with our GAAP results, provide a more complete understanding of factors
and trends affecting our business. Readers should consider the information in
addition to, but not instead of or superior to, our consolidated financial
statements prepared in accordance with GAAP. This non-GAAP financial information
may be determined or calculated differently by other companies, limiting the
usefulness of those measures for comparative purposes.
                                       23
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Adjusted earnings measures


In addition to reporting financial results in accordance with GAAP, we have
provided adjusted earnings and adjusted earnings per share, or, collectively,
the Adjusted Earnings Measures, which are non-GAAP measures. We believe that the
presentation of these measures provides investors with greater transparency and
facilitates comparison of operating results across a broad spectrum of companies
with varying capital structures, compensation strategies, derivative instruments
and amortization methods, which provides a more complete understanding of our
financial performance, competitive position and prospects for the future. We
also believe that investors regularly rely on non-GAAP financial measures, such
as the Adjusted Earnings Measures, to assess operating performance and that such
measures may highlight trends in our business that may not otherwise be apparent
when relying on financial measures calculated in accordance with GAAP. In
addition, we believe that the adjustments shown below are useful to investors in
order to allow them to compare our financial results during the periods shown
without the effect of each of these income or expense items.

The following table provides reconciliations of net earnings and diluted earnings per share calculated in accordance with GAAP to adjusted earnings measures (in thousands, except per share data):

                                         Three Months Ended
                                              March 31,
                                          2022          2021
Net income                             $   52,443     $ 75,920
Adjustments:
Transaction-related costs(a)                    -        1,412
Other nonoperating expenses(b)                  -          378
Intangible asset amortization               2,013        1,151
Stock-based compensation expense            5,367        5,804
Foreign currency transaction loss             314           34
Cumulative tax effect of adjustments       (1,927 )     (2,209 )
Adjusted earnings                      $   58,210     $ 82,490

Diluted earnings per share             $     1.50     $   2.03
Adjustments:
Transaction-related costs                       -         0.04
Other nonoperating expenses                     -         0.01
Intangible asset amortization                0.06         0.03
Stock-based compensation expense             0.15         0.15
Foreign currency transaction loss            0.01            -

Cumulative tax effect of adjustments (0.05 ) (0.06 ) Adjusted earnings per share

            $     1.67     $   2.20




(a) In the first quarter of 2021, we incurred expenses totaling $1.4 million
($1.1 million net of tax) related to acquisitions and a divestiture of a
subsidiary.
(b) In the first quarter of 2021, we recorded other nonoperating expenses of
$0.4 million ($0.3 million net of tax) related to early extinguishment of debt.

Adjusted EBITDA


The table below shows Adjusted EBITDA, which is a non-GAAP measure that we
define as earnings excluding depreciation, amortization, interest, foreign
currency transaction gains or losses, taxes and stock-based compensation
expense. We believe Adjusted EBITDA is used by investors to analyze operating
performance and evaluate our ability to incur and service debt and our capacity
for making capital expenditures. Adjusted EBITDA is also useful to investors to
help assess our estimated enterprise value. In addition, we believe that the
adjustments for transaction-related costs, lease termination and cease-use loss
(gain), other nonoperating expenses and equity method investment income shown
below are useful to investors in order to allow them to compare our financial
results during
                                       24
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the periods shown without the effect of the income or expense items. The
computation of Adjusted EBITDA, as presented below, may differ from the
computation of similarly-titled measures provided by other companies (in
thousands):

                                                     Three Months Ended
                                                          March 31,
                                                     2022          2021
Net income                                         $  52,443     $  75,920
Depreciation and amortization expenses(c)              9,514         6,621
Interest expense, net(c)                              22,483        19,755
Foreign currency transaction loss                        314            34
Provision for income taxes                            15,834        27,716
Stock-based compensation expense                       5,367         5,804

Adjustment:

Transaction-related costs(a)                               -         1,412
Other nonoperating expenses(b)                             -           378
Equity method investment income                         (328 )        (558 )
Adjusted EBITDA                                    $ 105,627     $ 137,082

Adjusted EBITDA margin calculated as follows:
Total Revenue                                      $ 385,731     $ 259,444
Adjusted EBITDA                                      105,627       137,082

Adjusted EBITDA as a percentage of total revenue 27.4% 52.8%





(a) In the first quarter of 2021, we incurred expenses totaling $1.4 million
related to acquisitions and a divestiture of a subsidiary.
(b) In the first quarter of 2021, we recorded other nonoperating expenses of
$0.4 million related to early extinguishment of debt.
(c) Excludes amounts attributable to noncontrolling interests.

Combined measures of loans and financial claims


In addition to reporting loans and finance receivables balance information in
accordance with GAAP (see Note 3 in the Notes to Consolidated Financial
Statements included in this report), we have provided metrics on a combined
basis. The Combined Loans and Finance Receivables Measures are non-GAAP measures
that include both loans and RPAs we own or have purchased and loans we
guarantee, which are either GAAP items or disclosures required by GAAP. See
"-Loan and Finance Receivable Balances" and "-Credit Performance of Loans and
Finance Receivables" below for reconciliations between Company owned and
purchased loans and finance receivables, gross, change in fair value and
charge-offs (net of recoveries) calculated in accordance with GAAP to the
Combined Loans and Finance Receivables Measures.

We believe these non-GAAP measures provide investors with important information
needed to evaluate the magnitude of potential receivable losses and the
opportunity for revenue performance of the loans and finance receivable
portfolio on an aggregate basis. We also believe that the comparison of the
aggregate amounts from period to period is more meaningful than comparing only
the amounts reflected on our consolidated balance sheet since both revenue and
cost of revenue are impacted by the aggregate amount of receivables we own and
those we guarantee as reflected in our consolidated financial statements.

THREE MONTHS ENDED MARCH 31, 2022 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2021

Turnover and net turnover


Revenue increased $126.3 million, or 48.7%, to $385.7 million for the current
quarter as compared to $259.4 million for the prior year quarter. The increase
was driven by a 75.5% increase in revenue from our small business portfolio and
a 36.8% increase in revenue from our consumer portfolio as higher levels of
originations in 2021 and into 2022 have led to higher loan balances for both
portfolios.

Net revenue for the current quarter was $268.7 million compared to $238.4
million for the prior year quarter. Our consolidated net revenue margin was
69.7% for the current quarter compared to 91.9% for the prior year quarter. The
net revenue margin in the prior year quarter was elevated due primarily to lower
delinquency rates and lower than expected charge-offs as a result of portfolio
seasoning and lower originations. With originations having increased across the
second half of 2021 and through March 31, 2022, the net revenue margin in the
current quarter was in a more normalized range.
                                       25
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The following table sets forth the components of revenue and net revenue,
separated by product for the current quarter and the prior year quarter (in
thousands):

                                              Three Months Ended March 31,
                                               2022                  2021          $ Change       % Change
Revenue by product:
Consumer loans and finance receivables
revenue                                   $       248,547       $      181,737     $  66,810           36.8 %
Small business loans and finance
receivables revenue                               132,594               75,560        57,034           75.5
Total loans and finance receivables
revenue                                           381,141              257,297       123,844           48.1
Other                                               4,590                2,147         2,443          113.8
Total revenue                                     385,731              259,444       126,287           48.7
Change in fair value                             (117,042 )            (21,078 )     (95,964 )        455.3
Net revenue                               $       268,689       $      238,366     $  30,323           12.7 %

Revenue by product (% to total):
Consumer loans and finance receivables
revenue                                              64.4 %               70.1 %
Small business loans and finance
receivables revenue                                  34.4                 

29.1

Total loans and finance receivables
revenue                                              98.8                 99.2
Other                                                 1.2                  0.8
Total revenue                                       100.0                100.0
Change in fair value                                (30.3 )               (8.1 )
Net revenue                                          69.7 %               91.9 %

Loan and financing balances receivable


The fair value of our loan and finance receivable portfolio in our consolidated
financial statements was $2,231.9 million and $1,230.7 million as of March 31,
2022 and 2021, respectively. The outstanding principal balance of our loan and
finance receivables portfolio was $2,099.0 million and $1,219.8 million as of
March 31, 2022 and 2021, respectively. The fair value of the combined loan and
finance receivables portfolio includes $14.4 million and $7.2 million with an
outstanding principal balance of $10.0 million and $5.7 million of consumer loan
balances that are guaranteed by us but not owned by us, which are not included
in our consolidated financial statements as of March 31, 2022 and 2021,
respectively.

Our small business portfolio of loans and finance receivables increased to 57.8%
of our combined loan and finance receivable portfolio at fair value as of March
31, 2022, compared to 52.5% as of March 31, 2021 due primarily to more
accelerated growth in the small business portfolio. The consumer portfolio
balance decreased to 42.2% of our combined loan and finance receivable portfolio
balance at fair value as of March 31, 2022, compared to 47.5% as of March 31,
2021. See "-Non-GAAP Disclosure-Combined Loans and Finance Receivables Measures"
above for additional information related to combined loans and finance
receivables.

The following tables summarize the outstanding balances of loans and financial receivables as of March 31, 2022 and 2021 (in thousands):

                                                 As of March 31, 2022                             As of March 31, 2021
                                                      Guaranteed                                       Guaranteed
                                       Company          by the                          Company          by the
                                      Owned(a)        Company(a)       Combined        Owned(a)        Company(a)      Combined(b)
Consumer loans and finance
receivables
Principal                            $   888,657     $     10,027     $   898,684     $   523,170     $      5,691     $    528,861
Fair value                               934,351           14,433         948,784         581,398            7,246          588,644
Fair value as a % of principal             105.1 %          143.9 %         105.6 %         111.1 %          127.3 %          111.3 %
Small business loans and finance
receivables
Principal                            $ 1,210,389     $          -     $ 1,210,389     $   696,678     $          -     $    696,678
Fair value                             1,297,533                -       1,297,533         649,313                -          649,313
Fair value as a % of principal             107.2 %              - %         107.2 %          93.2 %              - %           93.2 %
Total loans and finance
receivables
Principal                            $ 2,099,046     $     10,027     $ 2,109,073     $ 1,219,848     $      5,691     $  1,225,539
Fair value                             2,231,884           14,433       2,246,317       1,230,711            7,246        1,237,957
Fair value as a % of principal             106.3 %          143.9 %         106.5 %         100.9 %          127.3 %          101.0 %




(a) GAAP measure. The loans and finance receivables balances guaranteed by us
relate to loans originated by third-party lenders through the CSO programs that
we have not yet purchased and, therefore, are not included in our consolidated
financial statements.

At March 31, 2022 and 2021, the ratio of fair value as a percentage of principal
was 106.3% and 100.9%, respectively, on company owned loans and finance
receivables and 106.5% and 101.0%, respectively, on combined loans and finance
receivables. These ratios increased compared to the prior year due primarily to
lower delinquency rates and lower than expected charge-offs in the small
business
                                       26
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portfolio, partially offset by the impact of the acceleration of originations in
the consumer portfolio, particularly to new customers, which carry a higher risk
of charge-off.

Average amount outstanding per loan and financing receivable


The average amount outstanding per loan and finance receivable is calculated as
the total combined loans and finance receivables, gross balance at the end of
the period divided by the total number of combined loans and finance receivables
outstanding at the end of the period. The following table shows the average
amount outstanding per loan and finance receivable by product at March 31, 2022
and 2021:

                                                                   As of March 31,
                                                                  2022         2021

Average outstanding amount per loan and financial receivable(a) Consumer loans and financial receivables(b)

                       $  2,037     $  1,843
Small business loans and finance receivables                      37,411    

29,433

Total loans and finance receivables(b)                          $  4,315     $  3,809




(a) The disclosure regarding the average amount per loan and finance receivable
is statistical data that is not included in our consolidated financial
statements.
(b) Includes loans guaranteed by us, which represent loans originated by
third-party lenders through the CSO programs that we have not yet purchased and,
therefore, are not included in our consolidated financial statements.

The average outstanding amount per loan and financial receivable rose to
$4,315 from $3,809 in the current quarter compared to the prior year quarter, primarily due to an increase in the mix of loans and financial receivables held by small businesses in our portfolio, which are on average larger than our portfolio of consumers.

Average amount of loans and financing receivable


The average loan and finance receivable origination amount is calculated as the
total amount of combined loans and finance receivables originated, renewed and
purchased for the period divided by the total number of combined loans and
finance receivables originated, renewed and purchased for the period. The
following table shows the average loan and finance receivable origination amount
by product for the current quarter compared to the prior year quarter:

                                                              Three Months Ended
                                                                   March 31,
                                                               2022          2021

Average amount at origin of loans and financial receivables(a) Consumer loans and financial receivables(b)(c)

                $      660     $    491
Small business loans and finance receivables(c)                 17,257      

14,186

Total loans and finance receivables(b)                      $    1,686     $  1,273




(a) The disclosure regarding the average loan origination amount is statistical
data that is not included in our consolidated financial statements.
(b) Includes loans guaranteed by us, which represent loans originated by
third-party lenders through the CSO programs that we have not yet purchased and,
therefore, are not included in our consolidated financial statements.
(c) For line of credit accounts the average represents the average amount of
each incremental draw.

The average loan and finance receivable origination amount increased to $1,686
from $1,273 during the current quarter compared to the prior year quarter, due
primarily to an increase in the mix of higher dollar amount loans and finance
receivables to small businesses.

Credit performance of financial loans and receivables


We monitor the performance of our loans and finance receivables. Internal
factors such as portfolio composition (e.g., interest rate, loan term, geography
information, customer mix, credit quality) and performance (e.g., delinquency,
loss trends, prepayment rates) are reviewed on a regular basis at various levels
(e.g., product, vintage). We also weigh the impact of relevant, internal
business decisions on the portfolio. External factors such as macroeconomic
trends, financial market liquidity expectations, competitive landscape and
legal/regulatory requirements are also reviewed on a regular basis.

The payment status of a customer, including the degree of any delinquency, is a
significant factor in determining estimated charge-offs in the cash flow models
that we use to determine fair value. The following table shows payment status on
outstanding principal, interest and fees as of the end of each of the last five
quarters (in thousands):

                                       27
--------------------------------------------------------------------------------
                                                                 2021                                    2022
                                         First          Second           Third          Fourth           First
                                        Quarter         Quarter         Quarter         Quarter         Quarter
Ending combined loans and finance
receivables, including principal
and accrued fees/interest
outstanding:
Company owned                         $ 1,265,987     $ 1,416,533     $ 1,650,771     $ 1,944,263     $ 2,169,140
Guaranteed by the Company(a)                6,792           9,655          13,239          13,750          11,858
Ending combined loan and finance
receivables balance(b)                $ 1,272,779     $ 1,426,188     $ 1,664,010     $ 1,958,013     $ 2,180,998
> 30 days delinquent                       96,228          81,883          90,782         103,213         113,798
> 30 days delinquency rate                    7.6 %           5.7 %           5.5 %           5.3 %           5.2 %




(a) Represents loans originated by third-party lenders through the CSO programs
that we have not yet purchased, which are not included in our consolidated
balance sheets.
(b) Non-GAAP measure.

Consumer loans and financial receivables


The following table includes financial information for our consumer loans and
finance receivables. Delinquency metrics include principal, interest and fees,
and only amounts that are past due (in thousands):

                                                              2021                                2022
                                        First        Second         Third         Fourth         First
                                       Quarter       Quarter       Quarter       Quarter        Quarter
Consumer loans and finance
receivables:
Consumer combined loan and finance
receivable principal balance:
Company owned                         $ 523,170     $ 585,087     $ 709,781     $  867,751     $  888,657
Guaranteed by the Company(a)              5,691         8,284        11,354         11,790         10,027
Total combined loan and finance
receivable principal balance(b)       $ 528,861     $ 593,371     $ 721,135     $  879,541     $  898,684
Consumer combined loan and finance
receivable fair value balance:
Company owned                         $ 581,398     $ 623,975     $ 723,553     $  890,144     $  934,351
Guaranteed by the Company(a)              7,246        10,824        16,921         18,813         14,433
Ending combined loan and finance
receivable fair value balance(b)      $ 588,644     $ 634,799     $ 740,474     $  908,957     $  948,784
Fair value as a % of
principal(b)(c)                           111.3 %       107.0 %       102.7 %        103.3 %        105.6 %
Consumer combined loan and finance
receivable balance, including
principal and accrued fees/interest
outstanding:
Company owned                         $ 564,934     $ 630,203     $ 768,964     $  927,673     $  951,560
Guaranteed by the Company(a)              6,792         9,655        13,239         13,750         11,858
Ending combined loan and finance
receivable balance(b)                 $ 571,726     $ 639,858     $ 782,203     $  941,423     $  963,418
Average consumer combined loan and
finance receivable balance,
including principal and accrued
fees/interest outstanding:
Company owned(d)                      $ 598,900     $ 580,704     $ 702,818     $  836,147     $  953,108
Guaranteed by the Company(a)(d)           8,670         7,585        11,366         13,212         12,960
Average combined loan and finance
receivable balance(b)(d)              $ 607,570     $ 588,289     $ 714,184 

$849,359 $966,068


Revenue                               $ 181,737     $ 174,512     $ 215,432     $  243,570     $  248,547
Change in fair value                    (26,073 )     (49,708 )     (97,061 )     (104,715 )     (116,767 )
Net revenue                             155,664       124,804       118,371        138,855        131,780
Net revenue margin                         85.7 %        71.5 %        54.9 %         57.0 %         53.0 %

Delinquencies:
> 30 days delinquent                  $  24,589     $  26,201     $  45,804     $   59,312     $   70,480
> 30 days delinquent as a % of
combined loan and finance
receivable balance(b)(c)                    4.3 %         4.1 %         5.9 

% 6.3% 7.3%

Dump :

Charges (net of recoveries) $36,408 $27,050 $57,836

     $  112,582     $  137,224
Charge-offs (net of recoveries) as
a % of average combined loan and
finance receivable balance(b)(d)            6.0 %         4.6 %         8.1 %         13.3 %         14.2 %




(a) Represents loans originated by third-party lenders through the CSO programs
that we have not yet purchased, which are not included in our consolidated
balance sheets.
(b) Non-GAAP measure.
(c) Determined using period-end balances.
(d) The average combined loan and finance receivable balance is the average of
the month-end balances during the period.

The ending balance, including principal and accrued fees/interest outstanding,
of combined consumer loans and finance receivables at March 31, 2022 increased
68.5% to $963.4 million compared to $571.7 million at March 31, 2021, due
primarily to increased originations in 2021 and continuing into 2022 following
the strategic reduction in originations at the onset of the COVID-19 pandemic to
mitigate risks associated with the pandemic.
                                       28
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The percentage of loans greater than 30 days delinquent increased to 7.3% at
March 31, 2022, compared to 4.3% at March 31, 2021. The increase was driven
primarily by growth in originations in the current year, particularly to new
customers, which typically default at a higher percentage than returning
customers.

Charge-offs (net of recoveries) as a percentage of average combined loan balance
increased to 14.2% for the current quarter, compared to 6.0% for the prior year
quarter, driven primarily by growth in originations, particularly to new
customers, which typically default at a higher percentage than returning
customers. In the prior year quarter, this charge-off rate was lower due
primarily to our having a more seasoned and lower risk portfolio remaining as
originations since the onset of the COVID-19 pandemic had been significantly
lower and the majority of higher risk loans to new customers originated in prior
quarters had been charged off.

The ratio of fair value as a percentage of principal on consumer loans and
finance receivables was 105.6% at March 31, 2022, compared to 111.3% at March
31, 2021 and 103.3% at December 31, 2021. The increase from December 31, 2021
was primarily driven by normal seasonality of the consumer portfolio, as loan
demand typically declines in the first quarter, which leads to a more seasoned
portfolio that carries a higher fair value as a percentage of principal. Refer
also to "Results of Operations-COVID-19" in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" for additional
discussion on loan valuation.

Small Business Loans and Financial Claims


The following table includes financial information for our small business loans
and finance receivables. Delinquency metrics include principal, interest, and
fees, and only amounts that are past due (in thousands):

                                                              2021                                 2022
                                        First        Second         Third         Fourth           First
                                       Quarter       Quarter       Quarter        Quarter         Quarter
Small business loans and finance
receivables:
Total loan and finance receivable
principal balance                     $ 696,678     $ 781,793     $ 876,668     $ 1,010,675     $ 1,210,389
Ending loan and finance receivable
fair value balance                      649,313       784,728       911,729 

1,074,546 1,297,533 Fair value as % of principal(a) 93.2% 100.4% 104.0% 106.3% 107.2%


Ending loan and finance receivable
balance, including principal and
accrued fees/interest outstanding     $ 701,053     $ 786,330     $ 881,807 

$1,016,590 $1,217,580


Average loan and finance receivable
balance(b)                            $ 700,348     $ 739,378     $ 837,606     $   956,110     $ 1,122,609

Revenue                               $  75,560     $  85,561     $ 100,610     $   115,063     $   132,594
Change in fair value                      4,995        45,078        24,515          22,804           1,138
Net revenue                              80,555       130,639       125,125         137,867         133,732
Net revenue margin                        106.6 %       152.7 %       124.4 %         119.8 %         100.9 %

Delinquencies:
> 30 days delinquent                  $  71,639     $  55,682     $  44,978     $    43,901     $    43,318
> 30 days delinquent as a % of loan
balance(a)                                 10.2 %         7.1 %         5.1 %           4.3 %           3.6 %

Dump :

Charges (net of recoveries) $18,042 $5,102 $7,060

     $     7,677     $    20,860
Charge-offs (net of recoveries) as
a % of average loan and finance
receivable balance(b)                       2.6 %         0.7 %         0.8 %           0.8 %           1.9 %



(a) Determined from end of period balances. (b) The average balance of loans and financial receivables corresponds to the average of month-end balances during the period.


The ending balance, including principal and accrued fees/interest outstanding,
of small business loans and finance receivables at March 31, 2022 increased
73.7% to $1,218 million compared to $701.1 million at March 31, 2021, due
primarily to an acceleration in originations as credit risks stemming from the
COVID-19 pandemic decreased over the period.

The percentage of loans greater than 30 days delinquent was 3.6% at March 31,
2022, compared to 10.2% at March 31, 2021. Delinquency has improved in all of
our small business portfolios, as we have actively worked with our customers to
understand their financial situations, offering a variety of repayment options
to increase flexibility and reducing or deferring payments for impacted
customers.

Charge-offs (net of recoveries) as a percentage of average loan balance
decreased to 1.9% for the current quarter, compared to 2.6% in the prior year
quarter, due primarily to the recovery of the broader economy along with our
efforts to assist customers.

The ratio of fair value as a percentage of principal on small business loans and
finance receivables was 107.2% at March 31, 2022, compared to 93.2% at March 31,
2021 and 106.3% at December 31, 2021. The increase from December 31, 2021 was
due primarily to strong cash collections and improvements in anticipated cash
flow in our valuation models due to reduced risk. The ratio of fair value
                                       29
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as a percentage of principal has improved for the legacy Enova wallet since Q2 2020 and for the OnDeck wallet since the acquisition.

Total operating expenses

Total expenses increased $63.0 millioni.e. 54.9%, at $177.9 million in the current quarter, compared to $114.9 million during the quarter of the previous year.


Marketing expense increased to $93.2 million in the current quarter compared to
$28.6 million in the prior year quarter due primarily to our efforts to capture
increasing market demand for loan products in the current quarter. The prior
year quarter was abnormally low due to our strategic actions to mitigate risks
associated with the COVID-19 pandemic.

Operating and technology expenses increased to $40.7 million in the current quarter compared to $35.6 million in the prior year quarter, primarily due to higher variable underwriting costs due to increased originations.


General and administrative expense decreased to $34.5 million in the current
quarter compared to $44.1 million in the prior year quarter, due primarily to
synergies achieved following the October 2020 acquisition of OnDeck.

Depreciation and amortization expense increased $2.9 million or 43.6% compared
to the prior year quarter driven primarily by additional internally-developed
software placed into service as well as intangible assets acquired with Pangea.

Interest expense, net


Interest expense, net increased $2.6 million, or 12.9%, to $22.5 million in the
current quarter compared to $19.9 million in the prior year quarter. The
increase was due primarily to an increase in the average amount of debt
outstanding, which increased $617.6 million to $1,564.0 million during the
current quarter from $946.4 million during the prior year quarter, partially
offset by a decrease in the weighted average interest rate on our outstanding
debt to 5.92% during the current quarter from 8.61% during the prior year
quarter.

Provision for income taxes

The effective tax rate of 23.2% in the current quarter was lower than the rate of 26.7% recorded in the prior year quarter, primarily due to stock-based compensation deductions are produced at favorable fair market values.


As of March 31, 2022, the balance of unrecognized tax benefits was $57.1 million
which is included in "Accounts payable and accrued expenses" on the consolidated
balance sheet, $10.9 million of which, if recognized, would favorably affect the
effective tax rate in the period of recognition. We had $38.6 million and $44.1
million of unrecognized tax benefits as of March 31, 2021 and December 31, 2021,
respectively. We believe that we have adequately accounted for any material tax
uncertainties in our existing reserves for all open tax years.

Our U.S. tax returns are subject to examination by federal and state taxing
authorities. The statute of limitations related to our consolidated Federal
income tax returns is closed for all tax years up to and including 2017.
However, the 2014 tax year is still open to the extent of the net operating loss
that was carried back from the 2019 tax return. The years open to examination by
state, local and foreign government authorities vary by jurisdiction, but the
statute of limitation is generally three years from the date the tax return is
filed. For jurisdictions that have generated net operating losses, carryovers
may be subject to the statute of limitations applicable for the year those
carryovers are utilized. In these cases, the period for which the losses may be
adjusted will extend to conform with the statute of limitations for the year in
which the losses are utilized. In most circumstances, this is expected to
increase the length of time that the applicable taxing authority may examine the
carryovers by one year or longer, in limited cases.

Net revenue


Net income decreased $23.5 million, or 30.9%, to $52.4 million during the
current quarter compared to $75.9 million during the prior year quarter. The
decrease was due primarily to increased marketing efforts in the current quarter
and improvements in the credit outlook of our loan portfolio in the prior year
quarter.

CASH AND CAPITAL RESOURCES

Capital funding strategy


Through the COVID-19 pandemic, we have taken various actions to maintain a
stable and flexible balance sheet that ensures liquidity and funding available
to meet our business obligations. Despite higher than normal cash balances, we
have drawn funds on our revolving credit agreement at various times to meet the
minimum utilization requirements. As of March 31, 2022, we had cash, cash
equivalents, and restricted cash of $227.8 million, of which $96.2 million was
restricted, compared to $225.9 million, of which $60.4 million was
                                       30
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restricted, as of December 31, 2021. During the three months ended March 31,
2022, we increased the borrowing capacity on four of our loan securitization
facilities without having to increase any of the respective borrowing rates. As
of March 31, 2022, we had committed and undrawn funding capacity of $402.5
million. Based on numerous stressed-case modeling scenarios, we believe we have
sufficient liquidity to run our operations for the foreseeable future. Further,
we have no recourse debt obligations due until September 2024.

Historically, we have generated significant cash flow through normal operating
activities for funding both long-term and short-term needs. Our near-term
liquidity is managed to ensure that adequate resources are available to fund our
seasonal working capital growth, which is driven by demand for our loan and
financing products. On May 30, 2014, we issued and sold $500.0 million in
aggregate principal amount of 9.75% senior notes due 2021 (the "2021 Senior
Notes"). On September 1, 2017, we issued and sold $250.0 million in aggregate
principal amount of 8.50% Senior Notes due 2024 (the "2024 Senior Notes") and
used the net proceeds, in part, to retire $155.0 million in 2021 Senior Notes.
On January 21, 2018, we redeemed an additional $50.0 million in principal amount
of the outstanding 2021 Senior Notes. On September 19, 2018, we issued and sold
$375.0 million in aggregate principal amount of 8.50% Senior Notes due 2025 (the
"2025 Senior Notes") and used the net proceeds, in part, to retire the remaining
$295.0 million in principal amount of the outstanding 2021 Senior Notes.

On June 30, 2017, we entered into a secured revolving credit agreement (as
amended, the "Credit Agreement"). On April 13, 2018, October 5, 2018, July 1,
2019 and May 10, 2021, we and certain of our operating subsidiaries entered into
amendments to our Credit Agreement. As of April 29, 2022, our available
borrowings under the Credit Agreement were $80.3 million. Since 2016, we have
entered into several loan securitization facilities and offered asset-backed
notes to fund our growth, primarily in our near-prime consumer installment loan
and small business loan businesses. As of April 29, 2022, we had committed and
undrawn funding capacity of $272.2 million. We expect that our operating needs,
including satisfying our obligations under our debt agreements and funding our
working capital growth, will be satisfied by a combination of cash flows from
operations, borrowings under the Credit Agreement, or any refinancing,
replacement thereof or increase in borrowings thereunder, and securitization or
sale of loans and finance receivables under our consumer and small business loan
securitization facilities.

As of March 31, 2022, we were in compliance with all financial ratios, covenants
and other requirements set forth in our debt agreements. Unexpected changes in
our financial condition or other unforeseen factors may result in our inability
to obtain third-party financing or could increase our borrowing costs in the
future. To the extent we experience short-term or long-term funding disruptions,
we have the ability to adjust our volume of lending and financing to consumers
and small businesses that would reduce cash outflow requirements while
increasing cash inflows through repayments. Additional alternatives may include
the securitization or sale of assets, increased borrowings under the Credit
Agreement, or any refinancing or replacement thereof, and reductions in capital
spending, which could be expected to generate additional liquidity.

Capital


Our Total stockholders' equity decreased by $15.1 million to $1,078.0 million at
March 31, 2022 from $1,093.1 million at December 31, 2021. The decrease of
stockholders' equity was driven primarily by repurchases of our outstanding
common stock during the current quarter, partially offset by net income for the
three months ended March 31, 2022. Our book value per share outstanding
increased to $32.83 at March 31, 2022 from $32.01 at December 31, 2021, which
was primarily driven by the decrease in shares outstanding as a result of share
repurchases, which is discussed in more detail below.

On November 5, 2020, we announced the Board of Directors had authorized a share
repurchase program for up to $50.0 million of our outstanding common stock
through December 31, 2021 (the "2020 Authorization"). On November 4, 2021, we
announced the Board of Directors authorized a new share repurchase program
totaling $150.0 million through December 31, 2022 (the "2021 Authorization").
The 2021 Authorization replaced the 2020 Authorization. On February 9, 2022, we
announced the Board of Directors authorized a new share repurchase program
totaling $100.0 million through June 30, 2023 (the "2022 Authorization"). The
2022 Authorization replaced the 2021 Authorization. Repurchases under our share
repurchase programs are made in accordance with applicable securities laws from
time to time in the open market, through privately negotiated transactions or
otherwise. Our share repurchase programs do not obligate us to purchase any
shares of our common stock. Similar to our previous share repurchase programs,
the 2022 Authorization may be terminated, increased or decreased by the Board of
Directors in its discretion at any time. During the three months ended March 31,
2022, we had $74.0 million repurchases of common stock under our share
repurchase programs.

Species


Our cash and cash equivalents are held primarily for working capital purposes
and are used to fund a portion of our lending activities. We do not enter into
investments for trading or speculative purposes. Our policy is to invest cash in
excess of our immediate working capital requirements in short-term investments,
deposit accounts or other arrangements designed to preserve the principal
balance and maintain adequate liquidity. Our excess cash may be invested
primarily in overnight sweep accounts, money market instruments or similar
arrangements that provide competitive returns consistent with our polices and
market conditions.
                                       31
--------------------------------------------------------------------------------


Our restricted cash represents funds held in accounts as reserves on certain
debt facilities and as collateral for issuing bank partner transactions. We have
no ability to draw on such funds as long as they remain restricted under the
applicable arrangements but have the ability to use these funds to finance loan
originations, subject to meeting borrowing base requirements. Our policy is to
invest restricted cash held in debt facility related accounts, to the extent
permitted by such debt facility, in investments designed to preserve the
principal balance and provide liquidity. Accordingly, such cash is invested
primarily in money market instruments that offer daily purchase and redemption
and provide competitive returns consistent with our policies and market
conditions.

Current borrowing facilities


The following table summarizes our debt facilities as of March 31, 2022 (dollars
in thousands).

                                                         Weighted
                                                         average
                                                         interest     Borrowing           Principal
                                     Maturity date       rate(a)       capacity          outstanding
Funding Debt:
2018-1 Securitization Facility         March 2027   (b)   4.34%           200,000   (g)        150,000
2018-2 Securitization Facility         July 2025    (c)   4.35%           225,000   (h)        175,000
2019-A Securitization Notes            June 2026          7.62%            11,534               11,534
ODR 2021-1 Securitization Facility   November 2024  (d)   2.35%           200,000   (i)         62,000
RAOD Securitization Facility         December 2023  (e)   2.63%           236,842   (j)        177,631
ODAST III Securitization Notes          May 2027    (f)   2.07%           300,000              300,000
Total funding debt                                        3.12%      $  1,173,376       $      876,165
Corporate Debt:
8.50% Senior Notes Due 2024          September 2024       8.50%           250,000              250,000
8.50% Senior Notes Due 2025          September 2025       8.50%           375,000              375,000
Revolving line of credit               June 2025          4.25%           310,000   (k)        204,000
Total corporate debt                                      7.45%      $    935,000       $      829,000



(a) The weighted average interest rate is determined based on the rates and
principal balances on March 31, 2022. It does not include the impact of the
amortization of deferred loan origination costs or debt discounts.
(b) The period during which new borrowings may be made under this facility
expires in March 2025.
(c) The period during which new borrowings may be made under this facility
expires in July 2023.
(d) The period during which new borrowings may be made under this facility
expires in November 2023.
(e) The period during which new borrowings may be made under this facility
expires in December 2022.
(f) The period during which new borrowings may be made under this facility
expires in April 2024.
(g) During the current quarter we amended this facility to increase the maximum
borrowing capacity from $150.0 million to $200.0 million.
(h) During the current quarter we amended this facility to increase the maximum
borrowing capacity from $150.0 million to $225.0 million.
(i) During the current quarter we amended this facility to increase the maximum
borrowing capacity from $150.0 million to $200.0 million.
(j) During the current quarter we amended this facility to increase the maximum
borrowing capacity from $177.6 million to $236.8 million.
(k) We had an outstanding letter of credit under the Revolving line of credit of
$0.8 million as of March 31, 2022.

Our ability to fully utilize the available capacity of our credit facilities may also be affected by provisions that limit concentration risk and eligibility.

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Strong loan growth to boost bank profits https://dininginnewengland.com/strong-loan-growth-to-boost-bank-profits/ Tue, 26 Apr 2022 17:00:56 +0000 https://dininginnewengland.com/strong-loan-growth-to-boost-bank-profits/ Indian banks are expected to post strong operational performance in the March quarter, supported by strong credit growth and a modest increase in bad loans, analysts said. So far, HDFC Bank and ICICI Bank are among the major banks to report quarterly results, posting net profit growth of 23% and 59%, respectively. Others, including Axis […]]]>

Indian banks are expected to post strong operational performance in the March quarter, supported by strong credit growth and a modest increase in bad loans, analysts said.

So far, HDFC Bank and ICICI Bank are among the major banks to report quarterly results, posting net profit growth of 23% and 59%, respectively. Others, including Axis Bank and Kotak Mahindra Bank, are expected to report their March quarter results in the coming weeks.

According to analysts at ICICI Securities, bank credit is expected to grow more than 9% from a year earlier in the three months to March. The brokerage expects the lenders it tracks to see sequential loan growth of 4-8%. Encouragingly, business credit is also contributing to the incremental growth, along with the retail and commercial banking segments, analysts said.

“Kotak Mahindra Bank, AU Small Finance Bank, Axis Bank and Bandhan Bank are expected to outperform their peers with credit growth of over 16% YoY. State Bank of India, Indusind Bank, Yes Bank, IDFC First Bank expected to grow 9-12%; while RBL Bank and City Union Bank will continue to lag industry average growth,” it said in an April 6 report.

The brokerage said while there is no direct impact on lenders from the current geopolitical situation, higher input prices and stretched working capital cycles will trigger short-term funding needs. term.

That aside, the impact on bilateral trade globally, disruption of payment mechanisms and rate volatility will affect foreign exchange earnings.

Not just in the March quarter, analysts expect that over the longer term as well, shifts to the underperforming category will moderate. However, the pool of restructured loans deserves special attention. Rating agency estimates peg the total restructured portfolio at 2.5% of loans, due to larger overhauls in the retail and small business segments.

“While we could see some slippages from the restructuring book, many banks estimated the overall impact at 15-20%, which seems manageable in the context of provisions held on restructured loans, in addition to reserves. for contingencies,” Motilal Oswal said in a statement. report on April 25.

While asset quality within the small and medium-sized enterprise (SME) sectors may remain under pressure, overall gross bad debts are expected to moderate, driven by robust trends in the corporate and retail segments, according to the Motilal report quoted above.

Others said the tightening of bond yields in the March quarter would affect banks’ Treasury revenues. At HDFC Bank, India’s largest private sector lender, growth in other income increased 0.6% to 7,637.1 crore from a year earlier. It reported a loss on the sale and revaluation of the investments of 40.3 crore.

Emkay Global Financial Services analysts expect overall net interest income growth of 18% on the back of healthy credit growth and stable margins.

“However, lower cash earnings and higher operating expenses amid business normalization and increased technology spending are expected to keep pre-procurement operating profit growth in check at 4% in year-over-year,” the Emkay report said on April 8.

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Liberty’s parent company touts reverse performance ahead of annual shareholder meeting https://dininginnewengland.com/libertys-parent-company-touts-reverse-performance-ahead-of-annual-shareholder-meeting/ Fri, 22 Apr 2022 20:21:49 +0000 https://dininginnewengland.com/libertys-parent-company-touts-reverse-performance-ahead-of-annual-shareholder-meeting/ Ocwen Financial Corporation (NYSE:OCN), parent company of PHH Mortgage Corporation and its wholly-owned subsidiary Liberty Reverse Mortgage, announced this week that it will hold its annual meeting of shareholders on May 25, 2022 at 9:00 a.m. EST. In its announcement, the company provides details about its financial performance over the past year and offers a […]]]>

Ocwen Financial Corporation (NYSE:OCN), parent company of PHH Mortgage Corporation and its wholly-owned subsidiary Liberty Reverse Mortgage, announced this week that it will hold its annual meeting of shareholders on May 25, 2022 at 9:00 a.m. EST. In its announcement, the company provides details about its financial performance over the past year and offers a positive outlook on the specific performance of its reverse mortgage business, according to a filing with the Securities and Exchange Commission (SEC ).

Ocwen is committed to further diversifying its portfolio, a commitment that was underscored in two key acquisitions completed in 2021, the filing said.

“Ocwen made two key acquisitions in 2021 to further strengthen and diversify its origin and service platforms: the company acquired the correspondent lending business of Texas Capital Bank in June 2021 and the service platform reverse of Reverse Mortgage Solutions, Inc in October 2021,” the filing reads.

RMS buys a “highlight” for Ocwen in 2021

The acquisition of the service platform Reverse Mortgage Solutions (RMS) was also highlighted as a key event for Ocwen in the previous year.

“[The company] completed the acquisition of Reverse Mortgage Solutions, Inc.’s reverse mortgage services platform, roughly doubling our portfolio of reverse mortgage services, becoming the industry’s only end-to-end reverse mortgage provider and creating a reverse sub-service platform,” the company said.

The filing also offered reverse-related activities as reasons for its leadership team’s accomplishments, including for CEO Glen Messina, Executive Vice President and Chief Services Officer Scott Anderson, Executive Vice President and Chief growth George Henley and administrative director Dennis Zeleny.

While Messina is credited for leading diversified investments that include reverse mortgage businesses, Zeleny is the executive with the most reverse-related accomplishments on the management team according to the document.

“[Zeleny] recorded double-digit growth in direct and reverse originations and improved refinancing rates,” the document states. “[He also] integrated the correspondent lending business acquired from Texas Capital Bank and restructured the correspondent sales team into an enterprise-wide sales model to increase our coverage of direct, reverse and commercial.

Zeleny also “exceeded quality targets or defect rates” on recovery and return channels; and helped improve promoter net scores in both direct and reverse wholesale to consumer segments, the document states.

Earlier this year, Ocwen announced that in 2021 it posted its first annual profit since 2013, but a decline in profits in the fourth quarter. The company also views its current and future interests in the reverse mortgage business through Liberty and its acquisition of RMS as a critical driver of its operations.

Ocwen’s Confidence in Sub-Services Portfolio Strengthened by Purchase of RMS

In particular, the acquisition of RMS appears to have bolstered the company’s confidence in its total sub-services portfolio, and the company described favorable conditions in its origination business, particularly with Liberty versus its portfolio of term mortgages in its annual results. call.

“We are excited about our reverse sub-service platform,” Ocwen CFO June Campbell said on the earnings call. “This uniquely positions our reverse service business for accelerated growth this year. [W]We expect $11 million in higher reverse mortgage revenue from onboard and committed volume this year, $25 billion of UPB’s $27 billion is under a five-year sub-service agreement years. With scale and an optimized cost structure, we expect the acquisition to be accretive to our reverse service business in the second half of the year, reaching $5 million in adjusted pretax earnings in the fourth quarter.

Ocwen announced the acquisition of RMS in June 2021 in a deal valued at approximately $12.4 million. The deal closed a few months later in October 2021. Shortly after the purchase, RMD spoke with Liberty President Mike Kent, who described what buying the platform from RMS service will do for the lender’s ability to serve its reverse mortgage customers.

“[This sale] provides us with the ability and opportunity to provide superior and consistent end-to-end customer service to our borrowers and partners,” Kent told RMD in June 2021. “PHH/Liberty is a customer-centric organization. Our goal is to always view our service offering through the lens of our customers and continually strive to provide solutions to meet their needs. Aligning our origination business with our reverse service business will enable better retirement outcomes for our borrowers. »

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BofA offers upbeat revenue outlook as loan rebound boosts results https://dininginnewengland.com/bofa-offers-upbeat-revenue-outlook-as-loan-rebound-boosts-results/ Mon, 18 Apr 2022 15:15:20 +0000 https://dininginnewengland.com/bofa-offers-upbeat-revenue-outlook-as-loan-rebound-boosts-results/ Bank of America gave a bullish earnings outlook as the second-largest US lender reported better-than-expected earnings and brushed aside recession fears heightened by the war in Ukraine. The Charlotte-based bank expects net interest income, a closely watched metric that measures a bank’s deposit profitability, to jump about 20% in the current quarter, fueled by rates […]]]>

Bank of America gave a bullish earnings outlook as the second-largest US lender reported better-than-expected earnings and brushed aside recession fears heightened by the war in Ukraine.

The Charlotte-based bank expects net interest income, a closely watched metric that measures a bank’s deposit profitability, to jump about 20% in the current quarter, fueled by rates higher interest rates and a rebound in lending.

BofA, the latest of America’s megabanks to report profits, was the only major lender to report an increase in revenue for the first three months of the year. Total revenue rose 2% to $23.2 billion, driven by a 13% increase in net interest income as lending exceeded pre-pandemic levels for the first time and the bank aggressively deployed deposits to buy fixed income securities. That was broadly in line with analyst expectations for $23.1 billion.

However, net profit fell 12% from a year ago, when profits were boosted by a release of $2.7 billion in credit reserves that had been set aside to cover losses on pandemic-related loans that never materialized.

Overall, first-quarter profit was $7.1 billion, or 80 cents per share, from $8.1 billion, or 86 cents per share, a year earlier. Analysts polled by FactSet had forecast earnings of 75 cents per share.

Brian Moynihan, chief executive, said in a conference call with Wall Street analysts that deposit levels remained high and credit losses were still near historic lows, signaling that businesses and consumers had the capacity to borrow more.

“Could a slowdown in the economy happen? Maybe,” he said. “But right now the size of the economy is larger than pre-pandemic levels, consumer spending remains strong, unemployment is low and wages are rising.”

BofA reported earnings amid growing fears the US could slide into a recession as US consumers face the fastest inflation rates in a generation and war in Ukraine rattles the global economy .

However, BofA only added $30 million in credit provisions. At the end of the quarter, the bank had about $700 million in loans outstanding with businesses in Russia. Alastair Borthwick, chief financial officer, described his direct exposure to Russia as “very minor”.

“All we really do is help our customers unwind their existing contracts,” he told reporters. “It’s just not important to Bank of America.”

Double-digit growth in the bank’s net interest income offset an 8% decline in commission income driven by a slowdown in investment banking. Trading revenue fell 7% but beat analysts’ expectations thanks to a record quarter for BofA’s equity division, where revenue rose 9% to $2 billion.

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INFINITE GROUP INC: Entering into a Material Definitive Agreement, Creating a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant, Unregistered Sale of Equity Securities, Financial Statements and Exhibits (Form 8-K) https://dininginnewengland.com/infinite-group-inc-entering-into-a-material-definitive-agreement-creating-a-direct-financial-obligation-or-obligation-under-an-off-balance-sheet-arrangement-of-a-registrant-unregistered-sale-of-equ/ Fri, 15 Apr 2022 21:32:16 +0000 Section 1.01 Entering into a Material Definitive Agreement. Talos Loan On April 12, 2022, Infinite Group, Inc. (the “Company”), as borrower, has entered into a financing agreement (the “Loan”) with Talos Victory Fund, LLC (the “Lender”), a Delaware Limited partnership. In exchange for a promissory note, the lender agreed to lend the company $296,000.00which bears […]]]>

Section 1.01 Entering into a Material Definitive Agreement.



Talos Loan


On April 12, 2022, Infinite Group, Inc. (the “Company”), as borrower, has entered into a financing agreement (the “Loan”) with Talos Victory Fund, LLC (the “Lender”), a Delaware Limited partnership. In exchange for a promissory note, the lender agreed to lend the company $296,000.00which bears interest at the rate of eight percent (8%) per annum, less $29,600.00 Discount on the original edition. Under the terms of the loan, amortization payments are due from August 12, 2022and monthly thereafter with final payment due on April 12, 2023. In addition, in the event of default under the Loan or if the Company elects to prepay the Loan, the Lender has the right to convert all or part of the unpaid and unpaid principal and interest into fully paid and tax-free shares. . ordinary shares of the Company at a conversion price of
$0.10 per share. The conversion price is subject to adjustment in certain circumstances, including issues of ordinary shares of the Company below the conversion price. The Company is not required to issue additional shares to the lender in the event of an adjustment to the conversion price. With the exception of the option to convert the note in the event of prepayment, there is no prepayment penalty associated with the promissory note. The loan is subject to customary events of default, including cross-defaults on loan agreements and other indebtedness of the Company, violations of securities laws (including the FD Regulation) and default of issue of shares upon conversion of the note. Amounts due under the Loan are subject to a 15% penalty in the event of default. In consideration for the financing, the Company issued to the lender a 5-year warrant to purchase 740,000 common shares of the Company at a fixed price of
$0.16 per share, subject to price adjustments for certain shares, including dilutive issues, representing a 40% warrant cover on the principal amount of the loan. The Company has granted the lender customary “stack” registration rights in respect of the shares issuable upon conversion of the promissory note and exercise of the warrant. No material relationship exists between the Company or its affiliates and the Lender.

JH Darbie & Co., Inc. (“Finder”), a registered dealer, acted as intermediary in connection with the loan and received cash compensation from $11,320.00 (4.25% of the gross proceeds of the Loan) and issued a 5-year warrant to purchase 97,125 common shares of the Company at a fixed price of $0.192 per share (120% of the exercise price of the warrant issued under the Loan), subject to price adjustments for certain shares, including dilutive issues, representing a coverage of 7% of the warrant on the gross proceeds of the Loan. The Company has granted to the Intermediary customary “stack” registration rights in respect of the Shares issuable upon exercise of the Warrant.

Item 2.03. Creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of a registrant.

The information set out above in Section 1.01 relating to the Loan is incorporated by reference in this Section 2.03.

Item 3.02 Unrecorded Sales of Equity securities.

The information set out above in Section 1.01 relating to the loan is incorporated by reference in this Section 3.02. The ordinary shares issued under the Loan were not registered under the Securities Act of 1933, as amended (the “Securities Act”), and were issued on the basis of exemption from the registration requirements thereof under Section 4(a)(2) of the Securities Act.

Item 9.01 Financial statements and supporting documents.



Exhibit No.   Description
  10.1          Stock Purchase Agreement, dated April 12, 2022, by and between
              Infinite Group, Inc. and Talos Victory Fund, LLC
  10.2          Promissory Note, issued April 12, 2022, by Infinite Group, Inc. to
              Talos Victory Fund, LLC
  10.3          Warrant, issued April 12, 2022, by Infinite Group, Inc. to Talos
              Victory Fund, LLC
  10.4          Warrant, issued April 12, 2022, by Infinite Group, Inc. to J.H.
              Darbie & Co., Inc.
104           Cover Page Interactive Data File (embedded within the Inline XBRL
              document)





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What to know about solar loans https://dininginnewengland.com/what-to-know-about-solar-loans/ Wed, 13 Apr 2022 17:48:57 +0000 https://dininginnewengland.com/what-to-know-about-solar-loans/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Solar loans can help finance the installation […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Solar loans can help finance the installation of solar panels. Find out how to get a solar loan and if it’s the right decision for you. (Shutterstock)

Solar panels can potentially save homeowners between $10,000 and $30,000 in electricity over the life of their solar system, according to the EnergySage solar market. And the potential for tax credits can increase the benefits of solar power in the home even further year over year.

But installation doesn’t come cheap — around $20,000 on average, EnergySage reports. A solar loan could help cover the cost, so if you’re considering going solar, it’s important to know how solar financing works, whether it’s worth getting solar panels, and the tax benefits of a system. of solar panels.

Visit Credible to learn more about personal loans for solar panels and see your prequalified rates.

What is a solar credit?

Solar loans are similar to home improvement loans. These unsecured personal loans help you finance the installation of solar panels for your home, and they do not require collateral. Instead of paying all expenses up front, you spread your payments over several instalments.

If you are approved for a personal loan, you will receive a lump sum (usually by direct deposit). One of the best features of personal loans is that you can get your money fast – some lenders even offer same-day financing. You’ll make monthly payments with a fixed interest rate and typically have a repayment term of between two and seven years.

You can apply for a solar loan from a personal lender or directly from a solar panel company that offers in-house financing.

Is it worth having solar panels?

Installing solar panels is expensive. The average five-kilowatt residential system can cost between $15,000 and $25,000 before tax incentives and credits, according to the Center for Sustainable Energy. And it takes an average of six to nine years to recoup those costs.

To determine if the cost of installing a solar panel is worth it, ask yourself a few questions:

  • How much electricity do you currently use and how much does it cost?
  • How much sunlight does your house get? (Homes in states with year-round sunlight, such as Arizona, may benefit more from solar panels than homes in rainier climates, such as Washington.)
  • How big of a solar power system would you need to install?
  • Would you buy or rent your system?

After considering these factors, compare quotes from a few different solar companies. Then, get prequalified for a personal loan and compare personal loan rates and terms to financing options offered by solar companies. Finally, compare the total costs of financing the solar installation to the estimated savings the solar panels will provide over the life of the loan.

You can use The Credible Personal Loan Calculator to see how much you’ll pay over the life of a solar loan from a personal lender.

Tax benefits for solar panels

Currently, you can claim a federal residential solar tax credit of 26% of the cost of the system. If you install a system in 2023, the credit goes down to 22%. This solar tax credit is set to expire in 2024 unless Congress renews it. Visit the Office of Energy Efficiency and Renewable Energy website for more information on this tax credit.

Your state may also offer incentives for installing solar panels. Check Database of State Incentives for Renewable Energy and Efficiency to find out what tax benefits you could benefit from.

How to get a personal loan for solar panels

Follow these steps to get a personal loan for solar panels:

  1. Check your credit. Check your credit report for free on a site like AnnualCreditReport.com and correct any errors that may be preventing you from getting the best possible solar loan terms.
  2. Compare lenders. Compare multiple lenders to see which will offer the lowest rates and most flexible terms for your financial situation.
  3. Apply. When you identify the best rate and terms, lock them in by submitting your application.
  4. Receive your loan funds. If your loan is approved, you will receive your loan funds, sometimes as early as the same business day, depending on how quickly your bank processes the transaction.

Other Solar Loan Financing Options

You can also consider the following options for financing your solar panel system:

Solar Loan FAQs

Here are the answers to some frequently asked questions about solar loans.

Is it better to buy or rent solar panels?

The most advantageous decision is the one that best suits your financial situation. Buying solar panels can be expensive, but you can save money in the long run. With leasing, you’ll pay less money up front, but you won’t qualify for the federal tax credit.

What credit score do you need for a solar loan?

Although it is possible to get a solar loan with a credit score below 650lenders generally offer the best rates and terms to borrowers with good to excellent credit scores (670 and above).

What happens to your solar panels if you move?

If you purchased your solar panels, you can either include them in the sale of the house when you move, or take them with you. If you rent your solar panels, you also have two options: you can buy out the lease or negotiate for the next owner to take over the lease.

How to choose the best solar credit?

The best solar loan is one that allows you to comfortably pay monthly loan payments while still being able to maintain your lifestyle and meet your other financial goals.

Can you refinance solar loans?

You can refinance a personal solar panel loan through your original lender or through another lender by taking out a new loan that pays off your original loan. Just be sure to check with your lender to see if they allow you to refinance your loan.

Does a solar loan affect your credit score?

A solar loan, or any personal loan, can improve your credit score by establish a positive credit history and create a diversified mix of credits. But if you miss payments, it can hurt your credit score.

Credible makes it easy for you compare personal loan rates from various lenders in minutes, without affecting your credit score.

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3 of the smartest stocks to buy in a Fed-induced bear market https://dininginnewengland.com/3-of-the-smartest-stocks-to-buy-in-a-fed-induced-bear-market/ Mon, 11 Apr 2022 09:21:00 +0000 https://dininginnewengland.com/3-of-the-smartest-stocks-to-buy-in-a-fed-induced-bear-market/ A a little over a year ago, things couldn’t have gone better for Wall Street. Major U.S. indexes were a year away from their pandemic low and had delivered one of the strongest bear market rallies in history. Moreover, there was abundant access to cheap capital and the Federal Reserve was determined to maintain its […]]]>

A a little over a year ago, things couldn’t have gone better for Wall Street. Major U.S. indexes were a year away from their pandemic low and had delivered one of the strongest bear market rallies in history. Moreover, there was abundant access to cheap capital and the Federal Reserve was determined to maintain its accommodative monetary stance.

But over the past 12 months, the wheels have fallen off the wagon dramatically – and the country’s central bank may be to blame.

While no one ever said it would be easy to oversee monetary policy in the world’s largest economy, in hindsight the Fed has left its foot on the accelerator for far too long. A combination of historically low lending rates and ongoing quantitative easing measures designed to depress long-term bond yields played a significant role in sending the US inflation rate to a four-decade high. In fact, a good argument can be made that growth-oriented companies Nasdaq Compoundis a brief fall in bear market territory was primarily Fed-induced.

Image source: Getty Images.

While sharp market declines can sometimes be frightening — especially when caused by the Fed’s change of course — they are historically the best time to put your money to work. Indeed, all notable declines are eventually erased by a bull market rally.

Below are three of the smartest stocks investors can buy in a Fed-led bear market.

Berkshire Hathaway

Early stock investors would be wise to buy in a Fed-induced bear market is a conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B).

Berkshire may not be a household name, but its CEO, billionaire Warren Buffett, probably is. Since taking office as the company’s CEO in 1965, Buffett has overseen more than $760 billion in value creation for shareholders (himself included), and he has led Berkshire’s Class A shares ( BRK.A) at an average annual gain of just over 20%. In total, we are talking about an increase of 4,210,069%, as of April 7.

One of Buffett’s not-so-subtle secrets to success is that he is filled Berkshire Hathaway’s portfolio with cyclical companies. These are companies that thrive when the economy is in full swing and struggle a bit when recessions hit. Instead of trying to time those inevitable downturns, Buffett has positioned Berkshire Hathaway and its investment portfolio to take advantage of long-winded expansions. After all, economic expansions last much longer than recessions.

Another thing to consider is that a significant percentage of the assets owned and invested by Berkshire Hathaway are in the financial sector. The Fed has made it clear that it intends to shrink its balance sheet (i.e. sell Treasuries) and raise interest rates. Higher lending rates will be a boon for bank stocks that have floating rate loans outstanding, and it will also allow insurance companies to generate more interest income on their float (i.e. say their unused premium). In short, Berkshire Hathaway is well positioned to navigate a rising rate environment.

Berkshire Hathaway’s success is also a function of Buffett’s love of dividend-paying stocks. Companies that pay a dividend are often profitable, proven, and have transparent long-term prospects. This year, Berkshire is expected to collect more than $5 billion in dividend income, with north of $4 billion from half a dozen holdings.

Long story short, riding in the wake of Buffett has long been a lucrative investment strategy.

A hacker typing on a keyboard in a dark room.

Image source: Getty Images.

CrowdStrike Holdings

Just because the stock market is falling and the Fed is scrambling to control historically high inflation doesn’t mean that growth stocks are off limits to patient investors. A perfect example of a fast moving business that is a smart buy is cyber security stock CrowdStrike Holdings (NASDAQ:CRWD).

Since the pandemic began more than two years ago, companies have accelerated the pace at which they move data online and into the cloud. Since hackers and bots aren’t just going away because Wall Street has had a bad day, the responsibility to protect that data increasingly falls to third-party vendors like CrowdStrike. In other words, cybersecurity has evolved from an optional service to an essential service over the past two decades.

While the cybersecurity industry should be home to a number of winners, CrowdStrike really stands out for its cloud-native Falcon security platform. Falcon monitors approximately 1 trillion events per day and relies on artificial intelligence to become more effective in recognizing and responding to potential end-user threats. CrowdStrike isn’t the cheapest cybersecurity solution, but its 98% raw retention rate suggests it’s one of the best.

Further proof of Falcon’s success can be seen in CrowdStrike’s subscriber numbers and organic growth rate. Over the past five years, the number of company subscribers increased by an annual average of 105%. Additionally, CrowdStrike has reported 16 consecutive quarters with a dollar retention rate of at least 120%. It’s a fancy way of saying that existing customers have spent at least 20% more year over year for four consecutive years (16 quarters).

As the premier name in cybersecurity, any significant pullback in a Fed-led bear market should be seen as a buying opportunity.

A smiling pharmacist holding a prescription bottle and talking with a customer.

Image source: Getty Images.

Walgreens Boot Alliance

A third exceptionally smart stock to buy during a Fed-induced bear market is the drug store chain. Walgreens Boot Alliance (NASDAQ: WBA).

In fgeneral, healthcare inventory are almost impervious to wild swings in the stock market and, to some extent, the US economy. Because we cannot control when we get sick, there is always a demand for prescription drugs, medical devices and health services.

However, Walgreens proved to be a bit of an exception to this rule during the early stages of the COVID-19 pandemic. Since drugstore chains rely on foot traffic in their stores, the pandemic hurt Walgreens and its peers for a few quarters. With the worst of the pandemic likely in the rearview mirror, Walgreens looks poised to shine no matter what the country’s central bank does on the interest rate front.

What makes Walgreens Boots Alliance such an attractive investment is multipoint strategy to increase its margins and its organic growth rate. For example, Walgreens cut more than $2 billion in annual operating expenses a full year ahead of schedule. At the same time, it is being spent aggressively on digitization initiatives that will drive direct-to-consumer sales. Although its physical locations will remain its primary source of revenue, the convenience of online sales should have no trouble boosting the company’s organic growth rate.

Speaking of organic growth, Walgreens has also partnered and invested in VillageMD. The two have opened more than 100 full-service clinics nationwide, as of February 28, 2022, with the goal of reaching at least 600 clinics in more than 30 U.S. markets by the end of 2025. The key here is that ‘they are full-service, medically staffed clinics, and can therefore handle much more than administering a vaccine. The ability to woo loyal customers and direct those patients to Walgreens’ pharmacy should help improve brand loyalty and business results.

With Walgreens valued at just 9 times Wall Street’s earnings forecast for fiscal 2022 (ending Aug. 31, 2022), now is the perfect time to pounce.

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Sean Williams owns Walgreens Boots Alliance. The Motley Fool owns and recommends Berkshire Hathaway (B shares) and CrowdStrike Holdings, Inc. The Motley Fool recommends the following options: Long January 2023 $200 on Berkshire Hathaway (B shares), Short January 2023 $200 on Berkshire Hathaway (B shares ), and short calls of $265 in January 2023 on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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