v3.25.4
Financing
 12 Months Ended
Dec. 31, 2025
Notes Payable [Abstract]  
Financing Financing
The Company has the ability to finance residential whole loans and lines of credit 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 loans include upfront fees, exit or withdrawal fees, covenants and concentration limits on types of collateral pledged, many of 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 December 31, 2025 or December 31, 2024.

The following table sets forth the details of the Company’s financing as of December 31, 2025 and December 31, 2024 ($ in thousands):
December 31, 2025December 31, 2024
Current FaceCarrying ValueStated Maturity
Base/Fixed Interest Rate
Interest Rate Pricing SpreadCarrying Value
Notes payable
Multinational Bank 1 (1)
$125,091 $125,091 June 2026Average Daily SOFR
1.65% - 2.10%
$100,711 
Global Investment Bank 2 (2)
— — March 20261 Month Term SOFR
1.65% - 2.40%
15,111 
Global Investment Bank 3 (3)
60,263 60,263 September 2026Compound SOFR
1.75% - 4.75%
13,637 
Global Investment Bank 4 (4)
33,403 33,403 October 2027Term SOFR
1.60%
— 
Total Notes Payable Financing$218,757 $218,757 $129,459 
Non-recourse securitization obligation$1,915,390 $1,915,321 N/A4.51%$1,593,612 
Securities sold under agreements to repurchase$54,041 $54,041 October 20255.44%$50,555 
Senior Unsecured Notes
June 2030 Senior Unsecured Notes$42,500 $40,784 June 20309.75%$— 
July 2029 Senior Unsecured Notes50,000 48,239 July 20299.50%47,740 
Total Senior Unsecured Notes$92,500 $89,023 $47,740 
Total Financing$2,280,688 $2,277,142 $1,821,366 

(1)     On December 26, 2025, this financing facility was extended through June 25, 2026 in accordance with the terms of the agreement, which contemplates rolling three-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 has been extended through March 27, 2026. On October 10, 2025, the facility was amended to reduce the interest rate pricing spread to a range of 1.65% to 2.40%; prior to this amendment, the interest rate pricing spread was a range of 1.75% to 3.35%.

(3)     On September 26, 2025, the facility’s termination date was extended to September 26, 2026. In addition, the interest rate pricing spread was reduced to a range from 1.75% to 4.75%; prior to this extension, the interest rate pricing spread was a range from 1.90% to 4.75%.

(4)     On October 6, 2025, the Company and one of its subsidiaries entered into a $200.0 million repurchase facility with a global investment bank (“Global Investment Bank 4”) through the execution of a Master Repurchase Agreement and Securities Contract (the “Global Investment Bank 4 Master Repurchase Agreement”). The amount expected to be advanced by Global Investment Bank 4 is generally in line with other similar agreements that the Company has entered into. Additionally, the rates, terms, events of default, and remedies for such events of default contained within the Master Repurchase Agreement are generally in line with other similar agreements that the Company has entered into. The interest rate is equal to the sum of (1) a spread of 1.60%, and (2) Term SOFR. The Master Repurchase Agreement expires on October 6, 2027, unless terminated earlier pursuant to the terms of the Global Investment Bank 4 Master Repurchase Agreement.

The following table sets forth the total unused borrowing capacity of each financing line as of December 31, 2025:
Note PayableBorrowing CapacityBalance OutstandingAvailable Financing
(in thousands)
Multinational Bank 1$600,000 $125,091 $474,909 
Global Investment Bank 2250,000 — 250,000 
Global Investment Bank 3200,000 60,263 139,737 
Global Investment Bank 4200,000 33,403 166,597 
Total$1,250,000 $218,757 $1,031,243 

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

The Company’s Senior Unsecured Notes consist of $42.5 million principal amount of its 9.75% Senior Notes due June 2030 (the “2030 Notes”) and $50.0 million principal amount of its 9.50% Senior Notes due July 2029 (the “2029 Notes” and, together with the 2030 Notes, the “Senior Unsecured Notes”). The 2030 Notes were issued in May 2025 in a public offering for net proceeds of approximately $40.6 million and the 2029 Notes were issued in July 2024 in a public offering for net proceeds of approximately $47.5 million. The below table provides a summary of the Senior Unsecured Notes as of December 31, 2025 ($ in thousands).

Carrying Value
Senior Unsecured Notes (1)
 Principal Amount
December 31, 2025December 31, 2024
Maturity Date (2)
Redemption Date (3)
 Rate (4)
June 2030 Senior Unsecured Notes$42,500 $40,784 $— June 2030June 20279.75 %
July 2029 Senior Unsecured Notes$50,000 $48,239 $47,740 July 2029July 20269.50 %
$92,500 $89,023 $47,740 

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

(2)     The Company has the option to redeem the Senior Unsecured Notes earlier than the maturity date.

(3)     The Company may redeem the Senior Unsecured Notes in whole or in part at any time on or after the optional redemption date, at a redemption price equal to 100% of the outstanding principal amount of the Senior Unsecured 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 Senior Unsecured Notes at a price in cash equal to 101% of the principal amount of the Senior Unsecured Notes, plus accrued and unpaid interest to, but excluding, the repurchase date.

(4)     The 2030 Notes bear interest at a rate equal to 9.75% per year, payable in cash quarterly in arrears on March 1, June 1, September 1, and December 1 of each year, beginning on September 1, 2025. The 2029 Notes bear interest at a rate equal to 9.50% per year, payable in cash quarterly in arrears on January 30, April 30, July 30 and October 30 of each year.

The below table details the total interest expense incurred on the Senior Unsecured Notes during the years ended December 31, 2025 and December 31, 2024 ($ in thousands).

December 31, 2025December 31, 2024
Coupon interest expense$7,298 $2,072 
Amortization expense840 462 
Total interest expense$8,138 $2,534 

At December 31, 2025 and December 31, 2024, the accrued interest payable on the Senior Unsecured Notes was $2.2 million and $0.8 million, respectively.

At December 31, 2025 and December 31, 2024, the unamortized deferred debt issuance cost was $1.2 million and $1.4 million, respectively. The unamortized debt issuance costs will be amortized until maturity.
Securities Sold Under Agreements to Repurchase

Transactions involving securities sold under agreements to repurchase are treated as collateralized financing transactions, and are recorded at their contracted repurchase amounts. Margin (if required) for securities sold under agreements to repurchase represents margin collateral amounts held to ensure that the Company has sufficient coverage for securities sold under agreements to repurchase in case of adverse price changes. Restricted cash of margin collateral for securities sold under agreements to repurchase was $1.2 million and $1.2 million as of December 31, 2025 and December 31, 2024, respectively.

The following table summarizes certain characteristics of the Company’s repurchase agreements as of December 31, 2025 and December 31, 2024:

December 31, 2025
Repurchase AgreementsAmount OutstandingWeighted Average Interest RateWeighted Average Remaining Maturity (Days)
($ in thousands)
AOMT RMBS (1)
$54,041 5.44 %16
December 31, 2024
Repurchase AgreementsAmount OutstandingWeighted Average Interest RateWeighted Average Remaining Maturity (Days)
($ in thousands)
AOMT RMBS (1)
$50,555 5.76 %19

(1)     A portion of repurchase debt outstanding as of December 31, 2025 and December 31, 2024 includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs). See Note 5 - Investment Securities.
Although the transactions under repurchase agreements represent committed borrowings until maturity, the lenders retain the right to mark the underlying collateral at fair value. A reduction in the value of pledged assets would require the Company to provide additional collateral or fund margin calls.