v3.25.4
SERVICING
 9 Months Ended
Sep. 30, 2025
Transfers and Servicing [Abstract]  
SERVICING SERVICING
The following table summarizes the Company’s servicing assets at September 30, 2025 and December 31, 2024:
September 30, 2025
UPB of Underlying LoansLoan Count
Carrying Value(A)
HELOC loans$11,148,741 302,066 $98,120 
Mortgage loans149,482 273 1,880 
Total$11,298,223 302,339 $100,000 
December 31, 2024
UPB of Underlying LoansLoan Count
Carrying Value(A)
HELOC loans$7,933,975 113,413 $86,465 
Mortgage loans162,908 294 2,032 
Total$8,096,883 113,707 $88,497 
__________________
(A)The Company records loan servicing assets at fair value. See Note 12 for additional information regarding the valuation of these assets.
The following table includes a rollforward of the Company’s servicing assets for the nine months ended September 30, 2025 and 2024:
Balance at December 31, 2023$55,860 
Change in fair value due to:
Additions(A)
37,845 
Realization of cash flows(B)
(13,749)
Change in valuation inputs and assumptions(5,516)
Total impact of change to fair value18,580 
Balance at September 30, 2024$74,440 
Balance at December 31, 2024$88,497 
Change in fair value due to:
Additions(A)
41,903 
Realization of cash flows(B)
(20,180)
Change in valuation inputs and assumptions(10,220)
Total impact of change to fair value11,503 
Balance at September 30, 2025$100,000 
__________________
(A)Represents the fair value of servicing rights retained upon sale of originated and purchased loans.
(B)Based on the paydown of the underlying loans.
The table below summarizes the geographic concentration of the loans underlying the servicing rights at September 30, 2025 and December 31, 2024:
September 30, 2025December 31, 2024
State
Amount Outstanding(A)
% of Total
Amount Outstanding(A)
% of Total
California$2,872,702 25.4 %$2,146,371 26.5 %
Florida1,357,888 12.0 990,404 12.2 
Arizona562,655 5.0 429,469 5.3 
Georgia521,330 4.6 407,651 5.0 
Washington456,709 4.0 362,370 4.5 
New Jersey415,090 3.7 320,124 4.0 
North Carolina327,759 2.9 261,013 3.2 
Virginia360,311 3.2 241,844 3.0 
Colorado305,980 2.7 239,559 3.0 
Ohio350,075 3.1 227,069 2.8 
Other (B)
3,767,724 33.4 2,471,009 30.5 
Total$11,298,223 100.0 %$8,096,883 100.0 %
__________________
(A)Represents the principal balance of the loans that the Company services.
(B)The Company did not service loans in any state or U.S. territory contained in “Other” aggregating to more than 5% of the total amount outstanding of the loans that the Company services. The Company serviced international loans of $2.8 million and $— million as of September 30, 2025 and December 31, 2024, respectively, included in Other that represented less than 5% of the total amount outstanding of the loans that the Company services.
As part of its servicing operations, the Company held principal, interest, and other borrower payments of $326.9 million and $198.8 million at September 30, 2025 and December 31, 2024, respectively, due to third-party loan buyers recorded as “Payables to third-party loan owners” in the Condensed Consolidated Balance Sheets. The Company makes payments on these arrangements by remitting amounts due from proceeds received from borrower
payments on the underlying loans. Additionally, the Company has outstanding liability obligations to repurchase loans that are in early payment default status. At September 30, 2025 and December 31, 2024, the total obligation to repurchase loans associated with contractual arrangements was $14.6 million and $13.8 million, respectively, recorded in “Payables to third-party loan owners” in the Condensed Consolidated Balance Sheets.
SERVICING
The following table summarizes the Company’s servicing assets at December 31, 2024 and 2023:
December 31, 2024
UPB of Underlying LoansLoan Count
Carrying Value(A)
HELOC loans$7,933,975 113,413 $86,465 
Mortgage loans162,908 294 2,032 
Total$8,096,883 113,707 $88,497 
December 31, 2023
UPB of Underlying LoansLoan Count
Carrying Value(A)
HELOC loans$5,018,260 74,980 $53,645 
Mortgage loans177,339 314 2,215 
Total$5,195,599 75,294 $55,860 
__________________
(A)The Company records loan servicing assets at fair value. See Note 11 for additional information regarding the valuation of these assets.
The following table includes a rollforward of the Company’s servicing assets for the years ended December 31, 2024 and 2023:
Balance at December 31, 2022$33,777 
Change in fair value due to:
Additions(A)
36,386 
Realization of cash flows(B)
(9,684)
Change in valuation inputs and assumptions(4,619)
Total impact of change to fair value22,083 
Balance at December 31, 202355,860 
Change in fair value due to:
Additions(A)
50,557 
Realization of cash flows(B)
(19,623)
Change in valuation inputs and assumptions1,703 
Total impact of change to fair value32,637 
Balance at December 31, 2024$88,497 
__________________
(A)Represents the fair value of servicing rights retained upon sale of originated loans.
(B)Based on the paydown of the underlying loans.
Geographic Concentration
The table below summarizes the geographic concentration of the loans underlying the servicing rights at December 31, 2024 and 2023:
December 31, 2024December 31, 2023
State
Amount Outstanding(A)
% of Total
Amount Outstanding(A)
% of Total
California$2,146,371 26.5 %$1,449,585 27.9 %
Florida990,404 12.2 593,697 11.4 
Arizona429,469 5.3 270,442 5.2 
Georgia407,651 5.0 278,231 5.4 
Washington362,370 4.5 261,653 5.0 
New Jersey320,124 4.0 211,344 4.1 
North Carolina261,013 3.2 198,984 3.8 
Colorado241,844 3.0 168,289 3.2 
Virginia239,559 3.0 156,333 3.0 
Ohio227,069 2.8 141,239 2.7 
Other U.S.(B)
2,471,009 30.5 1,465,802 28.2 
Total$8,096,883 100.0 %$5,195,599 100.0 %
__________________
(A)Represents the principal balance of the loans serviced by the Company.
(B)The Company did not service loans in any state or U.S. territory contained in “Other” aggregating to more than 5% of the total amount outstanding of the loans serviced by the Company.
As part of its servicing operations, the Company held principal, interest, and other borrower payments of $198.8 million and $116.9 million at December 31, 2024 and 2023, respectively, due to third-party loan buyers recorded as Payables to third-party loan owners in the Consolidated Balance Sheets. The Company makes payments on these arrangements by remitting amounts due from proceeds received from borrower payments on the underlying collateral loans. Additionally, the Company has outstanding liability obligations to repurchase loans that are in early payment default status as of each period end. As of December 31, 2024 and 2023, the total obligation to repurchase
loans associated with contractual arrangements was $13.8 million and $3.2 million, respectively, recorded as Payables to third-party loan owners in the Consolidated Balance Sheets.