v3.25.2
Financing
 6 Months Ended
Jun. 30, 2025
Notes Payable [Abstract]  
Financing Financing
The Company has the ability to finance residential and commercial whole loans, utilizing lines of credit (notes payable) from various counterparties, as further described below. Outstanding borrowings bear interest at floating rates depending on the lending counterparty, the collateral pledged, and the rate in effect for each interest period, as the same may change from time to time at the end of each interest period. Some agreements include upfront fees, fees on unused balances, covenants and concentration limits on types of collateral pledged which vary based on the counterparty. Occasionally, a lender may require certain margin collateral to be posted on a warehouse line of credit. There was no margin collateral required as of June 30, 2025 or December 31, 2024.
The following table sets forth the details of all the lines of credit available to the Company for whole loan purchases as of June 30, 2025 and December 31, 2024:
Interest Rate Pricing SpreadDrawn Amount
Note PayableBase Interest RateJune 30, 2025December 31, 2024
(in thousands)
Multinational Bank 1 (1)
Average Daily SOFR
1.65% - 2.10%
$77,603 $100,711 
Global Investment Bank 2 (2)
1 month Term SOFR
1.75% - 3.35%
143 15,111 
Global Investment Bank 3 (3)
Compound SOFR
1.90% - 4.75%
40,873 13,637 
Total$118,619 $129,459 

(1)     On June 24, 2025, this financing facility was extended through December 25, 2025 in accordance with the terms of the agreement, which contemplates six-month renewals. The interest rate pricing spread remained unchanged from the prior extension at a range from 1.65% to 2.10%.

(2)     On March 28, 2024, the Company and two of its subsidiaries terminated the existing facility with Global Investment Bank 2 and the Company and two different subsidiaries entered into a new facility with Global Investment Bank 2 wherein the Company is guarantor, one of the subsidiaries is seller and Global Investment Bank 2 is buyer. This updated facility is extended through March 27, 2026. On October 25, 2024, the facility was amended to, among other changes, reduced the interest rate pricing spread to a range from 1.75% and 3.35%; prior to this amendment, the interest rate pricing spread was a range from 2.10% and 3.45%.

(3)     On November 1, 2024, the facility’s termination date was extended to November 1, 2025. In addition, the interest rate pricing spread was reduced to a range from 1.90% to 4.75% and the index spread adjustment of 20 basis points was eliminated; prior to this extension, the interest rate pricing spread was a range from 2.00% to 4.50%.

The following table sets forth the total unused borrowing capacity of each financing line as of June 30, 2025:

Note PayableBorrowing CapacityBalance OutstandingAvailable Financing
(in thousands)
Multinational Bank 1$600,000 $77,603 $522,397 
Global Investment Bank 2250,000 143 249,857 
Global Investment Bank 3200,000 40,873 159,127 
Total$1,050,000 $118,619 $931,381 

Although available financing is uncommitted for each of these lines of credit, the Company’s unused borrowing capacity is available if it has eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements.

Senior Unsecured Notes

In May, the Company closed an underwritten public offering and sale of, and issued, $42.5 million in aggregate principal amount of its 9.750% Senior Notes due 2030 (the “2030 Notes”). The 2030 Notes bear interest at a rate of 9.750% per annum, payable quarterly in arrears on March 1, June 1, September 1, and December 1 of each year, beginning on September 1, 2025. The 2030 Notes will mature on June 1, 2030, unless earlier redeemed or repurchased by the Company, and are held at amortized cost. After deducting the underwriting discount and other debt issuance costs, the Company received net proceeds of approximately $40.6 million.

The Company may redeem the 2030 Notes in whole or in part at any time on or after June 1, 2027, at a redemption price equal to 100% of the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Upon the occurrence of certain events relating to a change of control of the Company, the Company must make an offer to repurchase all outstanding 2030 Notes at a price in cash equal to 101% of the principal amount of the 2030 Notes, plus accrued and unpaid interest to, but excluding, the repurchase date.

The 2030 Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Operating Partnership, including the due and punctual payment of principal of, premium, if any, and interest on the 2030 Notes, whether at stated maturity, upon acceleration, call for redemption or otherwise.

At June 30, 2025, the outstanding principal amount of the 2030 Notes was $42.5 million and the accrued interest payable on the 2030 Notes was $0.5 million. At June 30, 2025 the unamortized deferred debt issuance cost was $0.6 million, and the net interest expense recognized in the quarter ended June 30, 2025 was $0.6 million. The unamortized debt issuance costs will be amortized until maturity, which will be no later than June 1, 2030.
On July 25, 2024, the Company closed an underwritten public offering and sale of, and issued, $50.0 million in aggregate principal amount of its 9.500% Senior Notes due 2029 (the “2029 Notes”). The 2029 Notes bear interest at a rate of 9.500% per annum, payable quarterly in arrears on January 30, April 30, July 30 and October 30 of each year. The 2029 Notes will mature on July 30, 2029, unless earlier redeemed or repurchased by the Company and are held at amortized cost. After deducting the underwriting discount and other debt issuance costs, the Company received net proceeds of approximately $47.5 million.

The Company may redeem the 2029 Notes in whole or in part at any time or from time to time at its option on or after July 30, 2026 at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Upon the occurrence of certain events relating to a change of control of the Company, the Company must make an offer to repurchase all outstanding 2029 Notes at a price in cash equal to 101% of the principal amount of the 2029 Notes, plus accrued and unpaid interest to, but excluding, the repurchase date.

The 2029 Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Operating Partnership, including the due and punctual payment of principal of, premium, if any, and interest on the 2029 Notes, whether at stated maturity, upon acceleration, call for redemption or otherwise.

At June 30, 2025, the outstanding principal amount of the 2029 Notes was $50.0 million and the accrued interest payable on the 2029 Notes was $0.8 million. At June 30, 2025, the unamortized deferred debt issuance cost was $0.8 million, and the net interest expense recognized in the quarter ended June 30, 2025 was $1.3 million. The unamortized debt issuance costs will be amortized until maturity, which will be no later than July 30, 2029.

At December 31, 2024, the outstanding principal amount of the 2029 Notes was $50.0 million and the accrued interest payable on the 2029 Notes was $0.8 million. At December 31, 2024, the unamortized debt issuance cost was $1.4 million. The unamortized debt issuance costs will be amortized until maturity, which will be no later than July 30, 2029.