v3.25.4
SERVICING
 12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
SERVICING SERVICING
The following table summarizes the Company’s servicing assets at December 31, 2025 and 2024:
December 31, 2025
UPB of Underlying LoansLoan Count
Carrying Value(A)
HELOC loans$12,783,215 173 $111,211 
Mortgage loans147,268 270 1,853 
Total servicing assets$12,930,483 173,270 $113,064 
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 servicing assets$8,096,883 113,707 $88,497 
(A)    The Company records loan servicing assets at fair value. The total carrying value includes $63.8 million and $69.5 million of collateralized loan servicing rights at December 31, 2025 and 2024, respectively. See Notes 6 and 12 for additional information regarding the MSR financing arrangement and valuation of the Company’s servicing rights, respectively.
The following table presents a rollforward of the Company’s servicing assets for the years ended December 31, 2025 and 2024:
Balance at December 31, 2023$55,860 
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 
Change in fair value due to:
Additions(A)
60,713 
Realization of cash flows(B)
(28,207)
Change in valuation inputs and assumptions(7,939)
Total impact of change to fair value24,567 
Balance at December 31, 2025$113,064 
(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 following table summarizes the geographic concentration of the loans underlying the servicing rights at December 31, 2025 and 2024:
December 31, 2025December 31, 2024
State
Amount Outstanding(A)
% of Total
Amount Outstanding(A)
% of Total
California$3,239,619 25.1 %$2,146,371 26.5 %
Florida1,553,217 12.0 990,404 12.2 
Arizona634,623 4.9 429,469 5.3 
Georgia579,494 4.5 407,651 5.0 
Washington490,630 3.8 362,370 4.5 
New Jersey455,704 3.5 320,124 4.0 
Ohio414,065 3.2 227,069 2.8 
Virginia413,862 3.2 239,559 3.0 
North Carolina358,185 2.8 261,013 3.2 
Colorado338,515 2.6 241,844 3.0 
Other (B)
4,452,569 34.4 2,471,009 30.5 
Total$12,930,483 100.0 %$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.
As part of its servicing operations, the Company held principal, interest, and other borrower payments of $364.9 million and $198.8 million at December 31, 2025 and 2024, 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 loans. Additionally, the Company has outstanding liability obligations to repurchase loans that are in early payment default status. At December 31, 2025 and 2024, the total obligation to repurchase loans associated with contractual arrangements was $17.7 million and $13.8 million, respectively, recorded in “Payables to third-party loan owners” in the Consolidated Balance Sheets.