Long-Term Debt (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Summary of Financial Information Relating to Note Payable Secured by Credit Risk Transfer and Mortgage Servicing Assets |
Following is a summary of financial information relating to notes payable secured by credit risk transfer and mortgage servicing assets:
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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) |
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Average balance |
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$ |
2,714,608 |
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$ |
2,894,850 |
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$ |
2,772,009 |
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$ |
2,880,677 |
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Weighted average interest rate (1) |
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7.63 |
% |
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9.09 |
% |
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7.61 |
% |
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8.96 |
% |
Total interest expense |
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$ |
53,804 |
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$ |
67,466 |
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$ |
109,059 |
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$ |
132,455 |
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(1)Excludes the effect of amortization of debt issuance costs of $2.2 million and $4.4 million for the quarter and six months ended June 30, 2025, respectively, and $2.0 million and $4.1 million for the quarter and six months ended June 30, 2024, respectively.
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June 30, 2025 |
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December 31, 2024 |
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(dollars in thousands) |
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Carrying value: |
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Unpaid principal balance: |
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Credit risk transfer arrangement financing |
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$ |
638,735 |
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$ |
710,329 |
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Fannie Mae mortgage servicing rights financing |
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1,075,000 |
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1,075,000 |
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Freddie Mac mortgage servicing rights and servicing advance receivable financing |
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958,485 |
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1,153,486 |
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2,672,220 |
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2,938,815 |
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Unamortized debt issuance costs |
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(6,087 |
) |
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(9,025 |
) |
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$ |
2,666,133 |
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$ |
2,929,790 |
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Weighted average interest rate |
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7.52 |
% |
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7.60 |
% |
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Assets securing notes payable: |
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Mortgage servicing rights at fair value (1) |
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$ |
3,677,782 |
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$ |
3,807,065 |
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Servicing advances (1) |
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$ |
22,120 |
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$ |
39,063 |
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Credit risk transfer arrangements: |
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Deposits securing credit risk transfer arrangements |
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$ |
873,413 |
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$ |
910,743 |
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Derivative assets |
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$ |
8,107 |
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$ |
29,377 |
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(1)Beneficial interests in Freddie Mac MSRs are pledged as collateral for the Notes payable secured by credit risk transfer and
mortgage servicing assets. Beneficial interests in Fannie Mae MSRs are pledged for both Assets sold under agreements to
repurchase and Notes payable secured by credit risk transfer and mortgage servicing assets.
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| Summary of Financial Information Relating to Unsecured Senior Notes |
Following is financial information relating to the unsecured senior notes:
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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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(in thousands) |
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Average balance |
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$ |
811,731 |
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$ |
696,731 |
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$ |
760,608 |
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$ |
652,615 |
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Weighted average interest rate (1) |
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|
7.34 |
% |
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6.13 |
% |
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|
7.29 |
% |
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|
5.97 |
% |
Interest expense |
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$ |
15,987 |
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$ |
11,629 |
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$ |
29,600 |
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$ |
21,313 |
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(1)Excludes the effect of amortization of debt issuance costs of $1.1 million and $2.1 million for the quarter and six months ended June 30, 2025, respectively, and $1.0 million and $1.9 million for the quarter and six months ended June 30, 2024, respectively.
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June 30, 2025 |
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December 31, 2024 |
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(in thousands) |
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Carrying value: |
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Unpaid principal balance |
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$ |
892,500 |
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$ |
615,000 |
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Unamortized debt issuance costs |
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(17,275 |
) |
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(9,140 |
) |
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$ |
875,225 |
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$ |
605,860 |
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| Summary of Financial Information Relating to Asset-Backed Financing of a VIE at Fair Value |
Following is a summary of financial information relating to the asset-backed financings of VIEs at fair value described in Note 6 ‒ Variable Interest Entities ‒ Subordinate Mortgage-Backed Securities:
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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) |
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Average balance |
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$ |
3,636,038 |
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$ |
1,561,068 |
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$ |
3,137,311 |
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$ |
1,571,443 |
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Weighted average interest rate (1) |
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5.18 |
% |
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3.09 |
% |
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4.95 |
% |
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3.10 |
% |
Total interest expense |
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$ |
46,449 |
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$ |
11,402 |
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$ |
75,164 |
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$ |
24,080 |
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(1)Excludes the effect of amortization of issuance premiums of $506,000 and $1.8 million for the quarter and six months ended June 30, 2025, respectively, and $604,000 and $112,000 for the quarter and six months ended June 30, 2024, respectively.
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June 30, 2025 |
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December 31, 2024 |
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(dollars in thousands) |
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Fair value |
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$ |
4,176,128 |
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$ |
2,040,375 |
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Unpaid principal balance |
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$ |
4,311,059 |
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$ |
2,269,742 |
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Weighted average interest rate |
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5.68 |
% |
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3.22 |
% |
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| Schedule of Contractual Maturities on Long Term Debt Obligations |
Maturities of Long-Term Debt Contractual maturities of long-term debt obligations (based on final maturity dates) are as follows:
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Twelve months ending June 30, |
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Total |
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2026 |
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2027 |
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2028 |
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2029 |
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2030 |
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Thereafter |
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(in thousands) |
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Notes payable secured by credit risk transfer
and mortgage servicing assets (1) |
$ |
2,672,220 |
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$ |
868,486 |
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$ |
934,283 |
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$ |
725,000 |
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$ |
144,451 |
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$ |
— |
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$ |
— |
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Unsecured senior notes |
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892,500 |
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345,000 |
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— |
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— |
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270,000 |
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277,500 |
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— |
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Interest-only security payable at fair value (2) |
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36,553 |
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— |
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— |
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— |
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— |
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— |
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36,553 |
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Asset-backed financings at fair value (2) |
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4,311,059 |
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— |
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— |
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— |
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— |
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— |
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4,311,059 |
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Total |
$ |
7,912,332 |
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$ |
1,213,486 |
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$ |
934,283 |
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$ |
725,000 |
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$ |
414,451 |
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$ |
277,500 |
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$ |
4,347,612 |
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(1)Based on stated maturity. As discussed above, certain of the Notes payable secured by credit risk and mortgage servicing assets allow the Company to exercise optional extensions. (2)Contractual maturity does not reflect expected repayment as borrowers of the underlying loans generally have the right to repay their loans at any time.
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| Senior Notes [Member] |
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| Summary of Term Note Issued to Qualified Institutional Buyers |
The senior notes are summarized below:
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Issuance date |
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Unpaid principal balance |
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Annual interest
rate spread |
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Maturity date |
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Redemption date |
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(in thousands) |
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June 2025 |
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$ |
105,000 |
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9.00% |
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June 15, 2030 |
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June 15, 2027 |
February 2025 |
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172,500 |
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9.00% |
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February 15, 2030 |
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February 15, 2027 |
September 2023 |
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53,500 |
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8.50% |
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September 30, 2028 |
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September 30, 2025 |
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$ |
331,000 |
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| CRT Arrangement Financing [Member] |
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| Summary of Term Note Issued to Qualified Institutional Buyers |
Following is a summary of the CRT Term Notes outstanding:
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CRT
Term
Notes |
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Issuance date |
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Issuance amount |
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Unpaid principal
balance |
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Annual interest rate spread (1) |
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Maturity date |
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(in thousands) |
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2024 3R |
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August 28, 2024 |
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$ |
158,500 |
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$ |
144,451 |
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3.10% |
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September 27, 2028 |
2024 2R |
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April 4, 2024 |
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$ |
247,000 |
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221,477 |
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3.35% |
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March 29, 2027 |
2024 1R |
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March 6, 2024 |
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$ |
306,000 |
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272,807 |
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3.50% |
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March 1, 2027 |
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$ |
638,735 |
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(1)Interest rates are charged at a spread to the Secured Overnight Financing Rate ("SOFR").
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| Fannie Mae MSR Financing |
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| Summary of Term Note Issued to Qualified Institutional Buyers |
Following is a summary of the term financing of the Company’s Fannie Mae MSRs:
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Maturity date |
Issuance |
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Issuance date |
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Unpaid principal
balance |
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Annual interest
rate spread (1) |
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Stated |
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Optional extension (2) |
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(in thousands) |
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Term Loans |
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2023 |
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May 25, 2023 |
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$ |
370,000 |
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3.00% |
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May 25, 2028 |
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May 25, 2029 |
Term Notes |
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2024 |
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June 27, 2024 |
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355,000 |
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2.75% |
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December 27, 2027 |
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June 26, 2028 |
2021 |
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March 30, 2021 |
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350,000 |
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3.00% |
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March 25, 2026 |
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March 27, 2028 |
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$ |
1,075,000 |
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(1)Interest rates are charged at a spread to SOFR. (2)The indentures relating to these issuances provide the Company with the option of extending the maturity dates of certain of the FT-1 Term Notes and FTL-1 Term Loans under the conditions specified in the respective agreements.
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| Exchangeable Senior Notes [Member] |
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| Summary of Term Note Issued to Qualified Institutional Buyers |
The exchangeable senior notes are summarized below:
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Initial issuance date |
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Unpaid principal balance |
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Annual interest rate |
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Conversion rates (1) |
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Maturity date (2) |
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(in thousands) |
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May 24, 2024 (3) |
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$ |
216,500 |
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8.50% |
|
63.3332 |
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June 1, 2029 |
March 5, 2021 |
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|
345,000 |
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5.50% |
|
46.1063 |
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March 15, 2026 |
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$ |
561,500 |
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(1)Common Shares per $1,000 principal amount. (2)Unless repurchased or exchanged in accordance with their terms before such date. (3)Balance includes $16.5 million issued on June 4, 2024.
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