The table below presents the components of MSR valuation adjustments, net, that include four MSR related instruments which we account for at fair value with changes in fair value recorded in earnings (also refer to Note 7 – Mortgage Servicing and Note 8 — Other Financing Liabilities, at Fair Value):

(i) the fair value changes of the total MSR portfolio (Total MSRs) recorded on our consolidated balance sheets ($2.5 billion fair value asset at March 31, 2025). Total MSRs include owned MSRs and MSRs that have been sold or transferred to third parties in transactions that do not achieve sale accounting criteria. Owned MSRs include MSRs subject to ESS financing transactions;

(ii) the fair value changes of the Pledged MSR liabilities recorded as liabilities on our consolidated balance sheets when MSR sale accounting criteria are not achieved ($579.1 million fair value liability at March 31, 2025);

(iii) the fair value changes of the ESS financing liabilities for which we elected the fair value option ($256.4 million fair value liability at March 31, 2025); and

(iv) the fair value changes of the derivative instruments economically hedging the MSR exposure.


	Three Months Ended March 31,
	2025		2024
Total MSRs	$	(77.8)	$	42.0
Pledged MSR liabilities (1)	11.1		4.7
ESS financing liabilities	7.0		(4.5)

Derivative fair value gain (loss) (MSR economic hedges) (2)	20.8		(53.7)

MSR valuation adjustments, net	$	(38.9)	$	(11.6)


Total changes in fair value due to realization of expected cash flows, net	$	(41.1)	$	(39.9)
Total changes in fair value due to rates and assumptions (3)	2.2		28.3

(2)Also refer to Note 16 – Derivative Financial Instruments and Hedging Activities.

(3)Including MSR hedging derivative gains (losses); excludes reverse mortgage exposure (see below).