v3.25.2
Financing
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Financing Financing
Secured Financing
The following tables summarize the Company’s secured financing arrangements by collateral type:
June 30, 2025
Collateral Type
(in thousands)
RMBS (1)
Mortgage Servicing Rights and Advances
Mortgage Loans Held-for-Sale
Total Secured Financing
Repurchase agreements
$7,992,622 $790,000 $— $8,782,622 
Revolving credit facilities
— 1,011,871 — 1,011,871 
Warehouse lines of credit
— — 9,275 9,275 
Total
$7,992,622 $1,801,871 $9,275 $9,803,768 
December 31, 2024
Collateral Type
(in thousands)
RMBS (1)
Mortgage Servicing Rights and Advances
Mortgage Loans Held-for-Sale
Total Secured Financing
Repurchase agreements
$7,050,057 $755,000 $— $7,805,057 
Revolving credit facilities
— 1,020,171 — 1,020,171 
Warehouse lines of credit
— — 2,032 2,032 
Total
$7,050,057 $1,775,171 $2,032 $8,827,260 
____________________
(1)Includes Agency and non-Agency AFS securities and Agency derivatives, as detailed within the Repurchase Agreements section of this Note 13.

Repurchase Agreements
The Company finances certain of its investment securities, MSR and mortgage loans held-for-sale through the use of repurchase facilities. At June 30, 2025 and December 31, 2024, the Company’s repurchase agreements had the following characteristics and remaining maturities:
June 30, 2025
Collateral Type
(dollars in thousands)
Agency RMBSNon-Agency SecuritiesAgency DerivativesMortgage Servicing RightsTotal Amount Outstanding
Within 30 days$2,343,912$—$15,414$—$2,359,326
30 to 59 days2,319,847—37,503—2,357,350
60 to 89 days2,151,258195619—2,152,072
90 to 119 days789,250———789,250
120 to 364 days334,624——620,000954,624
One year and over———170,000170,000
Total$7,938,891$195$53,536$790,000$8,782,622
Weighted average days to maturity
60662832183
Weighted average borrowing rate
4.48 %5.01 %4.84 %7.39 %4.74 %
December 31, 2024
Collateral Type
(dollars in thousands)
Agency RMBSNon-Agency SecuritiesAgency DerivativesMortgage Servicing RightsTotal Amount Outstanding
Within 30 days$2,373,562$—$4,262$—$2,377,824
30 to 59 days2,316,237———2,316,237
60 to 89 days1,304,175207731—1,305,113
90 to 119 days759,177———759,177
120 to 364 days291,706——75,000366,706
One year and over———680,000680,000
Total$7,044,857$207$4,993$755,000$7,805,057
Weighted average days to maturity
49661752094
Weighted average borrowing rate
4.90 %5.39 %5.31 %7.44 %5.15 %
The following table summarizes assets at carrying value that are pledged or restricted as collateral for the future payment obligations of the Company’s repurchase agreements:
(in thousands)June 30,
2025		December 31,
2024
Available-for-sale securities, at fair value$8,207,842 $7,097,561 
Mortgage servicing rights, at fair value (1)
1,328,463 1,355,639 
Restricted cash44,216 218,363 
Due from counterparties38,221 25,231 
Derivative assets, at fair value65,676 5,031 
Total$9,684,418 $8,701,825 
____________________
(1)As of June 30, 2025 and December 31, 2024, MSR repurchase agreements totaling $790.0 million and $755.0 million, respectively, were secured by VFNs issued in connection with the Company’s securitization of MSR. The VFNs are collateralized by portions of the Company’s MSR portfolio.

Although the transactions under repurchase agreements represent committed borrowings until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets would require the Company to provide additional collateral or fund margin calls.
As of both June 30, 2025 and December 31, 2024, the net carrying value of assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest, with any individual counterparty or group of related counterparties did not exceed 10% of total stockholders’ equity. The Company does not anticipate any defaults by its repurchase agreement counterparties. There can be no assurance, however, that any such default or defaults will not occur.
Revolving Credit Facilities
To finance MSR assets and related servicing advance obligations, the Company has entered into revolving credit facilities collateralized by the value of the MSR and/or servicing advances pledged. As of June 30, 2025 and December 31, 2024, the Company had outstanding short- and long-term borrowings under revolving credit facilities of $1.0 billion and $1.0 billion with a weighted average borrowing rate of 7.36% and 7.56% and weighted average remaining maturities of 1.7 and 1.6 years, respectively.
Although the transactions under revolving credit facilities represent committed borrowings from the time of funding until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets below a designated threshold would require the Company to provide additional collateral or pay down the facility. As of both June 30, 2025 and December 31, 2024, MSR with a carrying value of $1.6 billion was pledged as collateral for the Company’s future payment obligations under its MSR revolving credit facilities. As of June 30, 2025 and December 31, 2024, servicing advances with a carrying value of $92.0 million and $118.7 million, respectively, were pledged as collateral for the Company’s future payment obligations under its servicing advance revolving credit facility. The Company does not anticipate any defaults by its revolving credit facility counterparties, although there can be no assurance that any such default or defaults will not occur.
Warehouse Lines of Credit
To finance origination activities, the Company has entered into a warehouse line of credit collateralized by the value of the mortgage loans pledged for a period of up to 90 days or until they are sold to the GSEs or other third-party investors in the secondary market, typically within 60 days of origination. As of June 30, 2025 and December 31, 2024, the Company had outstanding short-term borrowings under its warehouse line of credit of $9.3 million and $2.0 million with a weighted average borrowing rate of 6.31% and 6.64% and weighted average remaining maturities of 75 and 87 days, respectively.
Although transactions under the warehouse line of credit represent committed borrowings from the time of funding until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets below a designated threshold would require the Company to provide additional collateral or pay down the facility. As of June 30, 2025 and December 31, 2024, mortgage loans held-for-sale with a carrying value of $9.5 million and $2.1 million, respectively, were pledged as collateral for the Company’s future payment obligations under its warehouse line of credit. Additionally, as of both June 30, 2025 and December 31, 2024, cash of $0.4 million was held in restricted accounts as collateral for future payment obligations of outstanding balances under the warehouse line of credit. The Company does not anticipate any defaults by its warehouse line of credit counterparties, although there can be no assurance that any such default or defaults will not occur.
Unsecured Financing
Senior Notes
On May 13, 2025, the Company closed an underwritten public offering of $115.0 million aggregate principal amount of its senior notes due in 2030, which included $15.0 million aggregate principal amount sold by the Company to the underwriters of the offering pursuant to an overallotment option. The senior notes are unsecured and bear an interest rate of 9.375% per annum, payable quarterly in arrears on February 15, May 15, August 15 and November 15. The senior notes will mature in August 2030, unless earlier redeemed in accordance with their terms. The Company may redeem the senior notes, in whole or in part, any time on or after May 15, 2027, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest. The Company may also repurchase the senior notes in open market or privately negotiated transactions at the same or differing price without giving prior notice to or obtaining any consent of the holders. The net proceeds from the offering were approximately $110.8 million after deducting underwriting discounts and estimated offering expenses payable by the Company. As of June 30, 2025, the outstanding amount due on the senior notes was $110.9 million, net of deferred issuance costs.
Convertible Senior Notes
The Company’s convertible senior notes are unsecured, pay interest semiannually at a rate of 6.25% per annum and are convertible at the option of the holder into shares of the Company’s common stock. As of both June 30, 2025 and December 31, 2024, the convertible senior notes had a conversion rate of 33.8752 shares of common stock per $1,000 principal amount of the notes. The convertible senior notes will mature in January 2026, unless earlier converted or repurchased in accordance with their terms.
The Company does not have the right to redeem its convertible senior notes prior to maturity, but may repurchase the notes in open market or privately negotiated transactions at the same or differing price without giving prior notice to or obtaining any consent of the holders. The Company may also be required to repurchase the convertible senior notes from holders under certain circumstances. The Company did not repurchase any of its convertible senior notes during the three and six months ended June 30, 2025. During both the three and six months ended June 30, 2024, the Company repurchased $10.0 million principal amount of its convertible senior notes in open market transactions for an aggregate cost of $9.7 million. The difference between the consideration transferred and the carrying value of the convertible senior notes repurchased resulted in a gain of $0.2 million for the three and six months ended June 30, 2024, which was recorded within the other income line item on the consolidated statements of comprehensive (loss) income.
As of both June 30, 2025 and December 31, 2024, $261.9 million principal amount of convertible senior notes remained outstanding. The outstanding amount due on the convertible senior notes as of June 30, 2025 and December 31, 2024 was $260.9 million and $260.2 million, respectively, net of unamortized deferred issuance costs.
Future Maturities
At June 30, 2025, the Company had the following remaining maturities on its financing arrangements:
(in thousands)
Repurchase Agreements
Revolving Credit Facilities
Warehouse Lines of Credit
Senior
Notes
Convertible Senior Notes
Total
Remainder of 2025$7,827,998 $— $9,275 $— $— $7,837,273 
2026954,624 89,000 — — 260,944 1,304,568 
2027— 922,871 — — — 922,871 
2028— — — — — — 
2029— — — — — — 
Thereafter
— — — 110,867 — 110,867 
Total$8,782,622 $1,011,871 $9,275 $110,867 $260,944 $10,175,579