| Short-Term Debt |
Note 14— Short-Term Debt The borrowing facilities described throughout these Notes 14 and 15 contain various covenants, including financial covenants governing the Company and its subsidiaries’ net worth, debt-to-equity ratio, and liquidity. Management believes that the Company was in compliance with these covenants as of June 30, 2025. Assets Sold Under Agreements to Repurchase Following is a summary of financial information relating to assets sold under agreements to repurchase:
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Quarter ended June 30, |
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Six months ended June 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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(dollars in thousands) |
|
Weighted average interest rate (1) |
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|
5.19 |
% |
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|
6.09 |
% |
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|
5.20 |
% |
|
|
6.13 |
% |
Average balance |
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$ |
6,382,670 |
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$ |
5,016,206 |
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$ |
6,282,348 |
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$ |
5,080,520 |
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Total interest expense |
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$ |
84,336 |
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$ |
77,364 |
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$ |
165,484 |
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$ |
157,921 |
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Maximum daily amount outstanding |
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$ |
7,603,144 |
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$ |
5,525,266 |
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$ |
7,799,203 |
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$ |
6,562,795 |
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(1)Excludes the effect of amortization of debt issuance costs of $1.8 million and $3.6 million for the quarter and six months ended June 30, 2025, respectively, and $1.4 million and $3.0 million for the quarter and six months ended June 30, 2024, respectively.
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June 30, 2025 |
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December 31, 2024 |
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(dollars in thousands) |
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Carrying value: |
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Unpaid principal balance |
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$ |
6,833,086 |
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$ |
6,509,415 |
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Unamortized debt issuance costs |
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(6,231 |
) |
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(8,477 |
) |
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$ |
6,826,855 |
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$ |
6,500,938 |
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Weighted average interest rate |
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|
5.15 |
% |
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|
5.37 |
% |
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Available borrowing capacity (1): |
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Committed |
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$ |
351,946 |
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$ |
565,488 |
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Uncommitted |
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4,847,534 |
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4,559,239 |
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$ |
5,199,480 |
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$ |
5,124,727 |
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Margin deposits placed with counterparties included in Other assets, net |
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$ |
91,162 |
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$ |
296,922 |
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Assets securing agreements to repurchase: |
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Mortgage-backed securities at fair value |
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$ |
3,967,045 |
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$ |
4,063,706 |
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Loans acquired for sale at fair value |
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$ |
2,575,290 |
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$ |
2,075,473 |
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Loans held for investment at fair value: |
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Securities retained in asset-backed financings |
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$ |
340,285 |
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$ |
130,839 |
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Distressed |
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$ |
— |
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$ |
160 |
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Credit risk transfer arrangements: |
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Deposits securing credit risk transfer arrangements |
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$ |
191,306 |
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$ |
199,965 |
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Derivative assets |
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$ |
23,040 |
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$ |
— |
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Mortgage servicing rights at fair value (2) |
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$ |
1,821,272 |
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$ |
1,906,043 |
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Servicing advances |
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$ |
34,684 |
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$ |
50,333 |
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Real estate acquired in settlement of loans |
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$ |
— |
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$ |
527 |
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(1)The amount the Company is able to borrow under asset repurchase agreements is tied to the fair value of unencumbered assets eligible to secure those agreements and the Company’s ability to fund the agreements’ margin requirements relating to the assets financed. (2)Beneficial interests in Fannie Mae MSRs are pledged to secure both Assets sold under agreements to repurchase and Notes payable secured by credit risk transfer and mortgage servicing assets. Maturities Following is a summary of maturities of outstanding advances under repurchase agreements by maturity date:
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Remaining maturity at June 30, 2025 (1) |
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Unpaid
principal
balance |
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(in thousands) |
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Within 30 days |
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$ |
2,936,449 |
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Over 30 to 90 days |
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3,685,772 |
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Over 90 days to 180 days |
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— |
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Over 180 days to 1 year |
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210,865 |
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$ |
6,833,086 |
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Weighted average maturity (in months) |
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1.5 |
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(1)The Company is subject to margin calls during the period the repurchase agreements are outstanding and therefore may be required to repay a portion of the borrowings before the respective repurchase agreements mature if the fair values (as determined by the applicable lender) of the assets securing those repurchase agreements decrease. Amounts at Risk The amount at risk (the fair value of the assets pledged plus the related margin deposit, less the amount advanced by the counterparty and interest payable) and maturity information relating to the Company’s assets sold under agreements to repurchase is summarized by pledged asset and counterparty below as of June 30, 2025: Loans and MSRs
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Weighted-average maturity |
Counterparty |
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Amounts at risk |
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Advances |
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Facility |
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(in thousands) |
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Goldman Sachs & Co. LLC |
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$ |
113,370 |
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July 25, 2025 |
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November 4, 2026 |
Atlas Securitized Products, L.P. |
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$ |
118,955 |
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September 5, 2025 |
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June 26, 2026 |
Citibank, N.A. |
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$ |
65,203 |
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September 5, 2025 |
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April 16, 2026 |
Bank of America, N.A. |
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$ |
46,472 |
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July 19, 2025 |
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August 28, 2026 |
JPMorgan Chase & Co. |
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$ |
9,110 |
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September 9, 2025 |
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June 28, 2026 |
Barclays Capital Inc. |
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$ |
28,604 |
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September 10, 2025 |
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March 6, 2026 |
Morgan Stanley & Co. LLC |
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$ |
15,075 |
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August 15, 2025 |
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May 6, 2026 |
Wells Fargo Securities, LLC |
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$ |
5,579 |
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September 24, 2025 |
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June 11, 2027 |
RBC Capital Markets, L.P. |
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$ |
20,575 |
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September 28, 2025 |
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May 8, 2026 |
Nomura Holdings America, Inc. |
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$ |
8,606 |
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August 20, 2025 |
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August 20, 2025 |
BNP Paribas |
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$ |
3,875 |
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September 19, 2025 |
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September 30, 2026 |
Santander US Capital |
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$ |
1,598 |
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July 9, 2025 |
|
July 9, 2025 |
Securities
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Counterparty |
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Amounts at risk |
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Weighted-average maturity |
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(in thousands) |
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Goldman Sachs & Co. LLC |
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$ |
10,441 |
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July 14, 2025 |
Citibank, N.A. |
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$ |
45,127 |
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July 23, 2025 |
Bank of America, N.A. |
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$ |
20,698 |
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July 13, 2025 |
JPMorgan Chase & Co. |
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$ |
51,437 |
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July 31, 2025 |
Barclays Capital Inc. |
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$ |
31,810 |
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July 21, 2025 |
Wells Fargo Securities, LLC |
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$ |
19,534 |
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July 21, 2025 |
Nomura Holdings America, Inc. |
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$ |
160 |
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August 20, 2025 |
Bank of Montreal |
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$ |
6,785 |
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August 12, 2025 |
Daiwa Capital Markets America Inc. |
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$ |
5,803 |
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August 5, 2025 |
Mizuho Financial Group |
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$ |
5,158 |
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July 23, 2025 |
Santander US Capital |
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$ |
15,788 |
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July 13, 2025 |
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CRT arrangements
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Counterparty |
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Amounts at risk |
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Weighted-average maturity |
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(in thousands) |
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Goldman Sachs & Co. LLC |
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$ |
43,041 |
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July 8, 2025 |
Morgan Stanley & Co. LLC |
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$ |
18,299 |
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July 28, 2025 |
Mortgage Loan Participation Purchase and Sale Agreement One of the borrowing facilities secured by loans acquired for sale is in the form of a mortgage loan participation purchase and sale agreement. Participation certificates, each of which represents an undivided beneficial ownership interest in a pool of loans that have been pooled with Fannie Mae or Freddie Mac, are sold to the lender pending the securitization of such loans and the sale of the resulting security. The commitment between the Company and a nonaffiliate to sell such security is also assigned to the lender at the time a participation certificate is sold. The purchase price paid by the lender for each participation certificate is based on the trade price of the security, plus an amount of interest expected to accrue on the security to its anticipated delivery date, minus a present value adjustment, any related hedging costs and a holdback amount. The holdback amount is based on a percentage of the purchase price and is not required to be paid to the Company until the settlement of the security and its delivery to the lender. The mortgage loan participation purchase and sale agreement is summarized below:
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Quarter ended June 30, |
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Six months ended June 30, |
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|
|
2025 |
|
|
2024 |
|
|
2025 |
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|
2024 |
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(dollars in thousands) |
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Average balance |
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$ |
9,666 |
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|
$ |
11,255 |
|
|
$ |
9,162 |
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|
$ |
11,993 |
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Weighted average interest rate (1) |
|
|
5.66 |
% |
|
|
6.72 |
% |
|
|
5.67 |
% |
|
|
6.75 |
% |
Total interest expense |
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$ |
168 |
|
|
$ |
219 |
|
|
$ |
320 |
|
|
$ |
465 |
|
Maximum daily amount outstanding |
|
$ |
25,809 |
|
|
$ |
56,423 |
|
|
$ |
49,266 |
|
|
$ |
56,423 |
|
(1)Excludes the effect of amortization of debt issuance costs of $31,000 and $63,000 for the quarter and six months ended June 30, 2025 and 2024, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
|
|
|
(dollars in thousands) |
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|
Carrying value: |
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|
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|
|
Amount outstanding |
|
$ |
8,533 |
|
|
$ |
11,650 |
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|
Unamortized debt issuance costs |
|
|
(120 |
) |
|
|
(57 |
) |
|
|
|
$ |
8,413 |
|
|
$ |
11,593 |
|
|
Weighted average interest rate |
|
|
5.57 |
% |
|
|
5.58 |
% |
|
Loans acquired for sale pledged to secure mortgage loan participation
purchase and sale agreement |
|
$ |
8,853 |
|
|
$ |
12,142 |
|
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|