v3.26.1
Servicing Revenue
 3 Months Ended
Mar. 31, 2026
Transfers and Servicing [Abstract]  
Servicing Revenue
Note 6 - Mortgage Servicing Rights
Mortgage Servicing Rights (“MSRs”) represent servicing rights retained by the Company for loans it originates and sells. The servicing fees are collected from the monthly payments made by the borrowers. The Company generally receives other remuneration including rights to various loan fees such as late charges, collateral re-conveyance charges, loan prepayment penalties, and other ancillary fees. In addition, the Company earns placement fees on funds held pending remittance related to its collection of loan principal and escrow balances. As of March 31, 2026, the Company had a servicing portfolio consisting of 1,045 loans with an unpaid principal balance of $22.0 billion for which it owns MSRs. As of December 31, 2025, the Company had a servicing portfolio consisting of 1,042 loans with an unpaid principal balance of $21.6 billion for which it owns MSRs.
Activity related to MSRs for the three months ended March 31, 2026 and the year ended December 31, 2025 was as follows (in thousands):

Three months ended March 31, 2026
Beginning balance, as of January 1, 2026$212,216 
Additions8,639 
Amortization(10,085)
Impairment reversal2,601 
Prepayments and write-offs(1,517)
Ending balance, as of March 31, 2026$211,854 

Year Ended December 31, 2025
Beginning balance, as of January 1, 2025$— 
Acquired MSRs at July 1, 2025211,545 
Additions26,295 
Amortization(19,434)
Impairment(2,590)
Prepayments and write-offs(3,600)
Ending balance, as of December 31, 2025$212,216 
The discount rates used to determine the present value of the MSRs, at recognition, were between 8%-14% (representing a weighted average discount rate of 10.0%) as of March 31, 2026. The weighted average estimated life remaining of the MSRs was 6.3 years as of March 31, 2026. The weighted average estimated life remaining of the MSRs was 6.4 years as of December 31, 2025.
Contractual servicing fees, including late fees, and ancillary fees were $12.5 million for the three months ended March 31, 2026, and are included in servicing fees, net in the consolidated statement of operations. At March 31, 2026, $0 of MSRs were considered impaired. At December 31, 2025, $2.6 million of MSRs were considered impaired.
The expected amortization of capitalized MSRs recorded at March 31, 2026 is as follows (in thousands):

YearAmortization
2026 (April-December)$26,354 
202730,768 
202825,664 
202921,408 
203017,857 
Thereafter89,803 
Total$211,854 
Based on scheduled maturities, actual amortization may vary from these estimates.
Note 17 - Servicing Revenue
The components of servicing revenue are as follows (in thousands):
Three Months Ended March 31,
20262025
Servicing and ancillary fees$12,693 $— 
Interest on escrows6,858 — 
MSR payoffs(1,517)— 
MSR amortization(10,085)— 
MSR impairment reversal2,601 — 
Total servicing revenue, net$10,550 $— 

As of March 31, 2026 and December 31, 2025, the weighted average servicing fee was 8.8 basis points and 9.2 basis points, respectively. At March 31, 2026 and December 31, 2025, total escrow and reserve balances were approximately $1.2 billion and $921 million, respectively, none of which are included in our consolidated balance sheets. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn placement fees on the total escrow deposits, which is generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Placement fees earned on total escrows, net of interest paid to the borrower, is included as a component of servicing revenue, net in the consolidated statements of income as noted in the table above.

Product type concentrations that impact our servicing revenue are as follows ($ in millions):
Product Type Considerations
March 31, 2026December 31, 2025
UPB% of TotalEffective Earnings RateUPB% of TotalEffective Earnings Rate
Fannie Mae$7,937 14 %0.10 %$7,860 16 %0.21 %
Ginnie Mae5,205 9 %0.08 %5,125 11 %0.17 %
Freddie Mac8,877 15 %0.03 %8,649 18 %0.08 %
Bridge422 1 %0.02 %836 2 %0.08 %
Affordable448 1 %0.03 %425 1 %0.13 %
Benefit Street Partners(1)
10,025 17 %0.03 %— — %— %
Private Label25,216 43 %0.01 %24,951 52 %0.02 %
Total/Weighted Average$58,130 100 %0.04 %$47,846 100 %0.07 %
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(1) Represents the bridge book serviced for the Company's affiliates, including $4.9 billion of the $10.0 billion serviced for a wholly owned subsidiary; related revenue is eliminated in consolidation.
Geographic concentrations that impact our servicing revenue are as follows:
                               Geographic Considerations
March 31, 2026December 31, 2025
% of Total% of Total
New York14.8 %15.2 %
Texas10.4 %11.0 %
Maryland7.5 %8.5 %
California7.5 %7.2 %
Virginia6.3 %5.8 %
Florida5.4 %5.7 %
New Jersey5.1 %5.4 %
Other(3)
43.0 %41.2 %
Total100.0 %100.0 %
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(3) No other individual state represented 5% or more of the total.