v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting
Note 3 — Segment Reporting


Public companies are required to disclose certain information about their reportable operating segments, which are defined as significant components of an enterprise for which separate financial information is available and is evaluated on a regular basis by the chief operating decision maker (“CODM”) in assessing performance of the segment and in deciding how to allocate resources to an individual segment. The structure of the Company’s reportable segments is determined based on the financial information used by the Company’s CODM to assess performance and allocate resources. The Company’s CODM is its Chief Executive Officer.



The two reportable segments that the Company conducts its business through are investments in RMBS and investments in Servicing Related Assets, which are the primary revenue generating assets of the Company. Activities that are not directly attributable or not allocated to any of the reportable segments are reported under the “All Other” category as a reconciling item to the Company’s consolidated financial statements. The activities within the “All Other” category consists of certain corporate level expenses including general and administrative expenses, compensation and benefits and management fees paid to affiliate prior to Internalization. The Company’s segments align with its primary business operations and how the CODM reviews its operating results. The primary measure of profitability used to evaluate segment performance and allocate resources is comprehensive income (loss). Analysis of the information presented in the tables below is presented to the CODM on a regular basis to assess segment profitability as well as to identify risks and opportunities to determine resource allocation.


The accounting principles applied at the operating segment level in determining comprehensive income (loss) are the same as those applied at the consolidated financial statement level. Compensation and benefits as well as general and administrative expenses are allocated to the reportable segments using a reasonable allocation key that takes into account the activities giving rise to such expenses.


Summary financial data with respect to the Company’s reportable segments is given below, together with the data for the Company as a whole (dollars in thousands):

 
Servicing
Related Assets
   
RMBS
    
All Other
    
Total
  
Income Statement
                        
Year Ended December 31, 2025
                        
Interest income
  
$
134
    
$
60,961
    
$
-
    
$
61,095
  
Interest expense
    
1,487
      
48,291
      
-
      
49,778
  
Net interest income (expense)
    
(1,353
)
    
12,670
      
-
      
11,317
  
Servicing fee income
    
43,299
      
-
      
-
      
43,299
  
Servicing costs
    
9,275
      
-
      
-
      
9,275
  
Net servicing income
    
34,024
      
-
      
-
      
34,024
  
Other expense (A)
    
(18,121
)
    
(3,899
)
    
-
      
(22,020
)
Other operating expenses (B)
    
(3,513
)
    
(2,810
)
    
(7,859
)
    
(14,182
)
Provision for corporate business taxes
    
(2,197
)
    
-
      
-
      
(2,197
)
Net other comprehensive income
     -       10,904       -       10,904  
Comprehensive income (loss)
   $ 8,840     $ 16,865     $ (7,859 )   $ 17,846  
                                 
Year Ended December 31, 2024
                                
Interest income
  
$
5
    
$
55,793
    
$
-
    
$
55,798
  
Interest expense
    
1,404
      
54,365
      
-
      
55,769
  
Net interest income (expense)
    
(1,399
)
    
1,428
      
-
      
29
  
Servicing fee income
    
48,527
      
-
      
-
      
48,527
  
Servicing costs
    
12,418
      
-
      
-
      
12,418
  
Net servicing income
    
36,109
      
-
      
-
      
36,109
  
Other income (expense) (A)
    
(8,117
)
    
6,554
      
-
      
(1,563
)
Other operating expenses (B)
    
(3,910
)
    
(1,141
)
    
(13,212
)
    
(18,263
)
Provision for corporate business taxes
    
(4,102
)
    
-
      
-
      
(4,102
)
Net other comprehensive loss
     -       (4,725 )     -       (4,725 )
Comprehensive income (loss)
   $ 18,581     $ 2,116     $ (13,212 )   $ 7,485  
                                 
Year Ended December 31, 2023
                                
Interest income
  
$
-
    
$
49,985
    
$
-
    
$
49,985
  
Interest expense
    
1,572
      
50,070
      
-
      
51,642
  
Net interest expense
    
(1,572
)
    
(85
)
    
-
      
(1,657
)
Servicing fee income
    
53,427
      
-
      
-
      
53,427
  
Servicing costs
    
11,248
      
-
      
-
      
11,248
  
Net servicing income
    
42,179
      
-
      
-
      
42,179
  
Other expense (A)
    
(29,443
)
    
(32,281
)
    
-
      
(61,724
)
Other operating expenses (B)
    
(3,004
)
    
(664
)
    
(10,062
)
    
(13,730
)
Provision for corporate business taxes
    
(523
)
    
-
      
-
      
(523
)
Net other comprehensive income
     -       26,559       -       26,559  
Comprehensive income (loss)
   $ 7,637     $ (6,471 )   $ (10,062 )   $ (8,896 )

(A)
Included in other income (expense) are realized and unrealized gains (losses) on Servicing Related Assets, RMBS and derivatives.
(B)
Included in other operating expenses are general and administrative expenses, compensation and benefits and management fee to CHMM.

 
Servicing
Related Assets
    
RMBS
    
All Other
    
Total
  
Balance Sheet
                        
December 31, 2025
                        
Investments
  
$
214,831
    
$
1,213,851
    
$
-
    
$
1,428,682
  
Other assets
    
28,904
      
27,293
      
55,677
      
111,874
  
Total assets
    
243,735
      
1,241,144
      
55,677
      
1,540,556
  
Debt
    
145,191
      
1,137,200
      
-
      
1,282,391
  
Other liabilities
    
2,575
      
9,504
      
7,554
      
19,633
  
Total liabilities
    
147,766
      
1,146,704
      
7,554
      
1,302,024
  
Net Assets
  
$
95,969
    
$
94,440
    
$
48,123
    
$
238,532
  

Balance Sheet
                       
December 31, 2024
                        
Investments
  
$
233,658
    
$
1,122,420
    
$
-
    
$
1,356,078
  
Other assets
    
28,874
      
59,159
      
47,064
      
135,097
  
Total assets
    
262,532
      
1,181,579
      
47,064
      
1,491,175
  
Debt
    
151,226
      
1,077,257
      
-
      
1,228,483
  
Other liabilities
    
4,290
      
15,010
      
9,770
      
29,070
  
Total liabilities
    
155,516
      
1,092,267
      
9,770
      
1,257,553
  
Net Assets
  
$
107,016
    
$
89,312
    
$
37,294
    
$
233,622