Financing Agreements (Tables)

3 Months Ended

Mar. 31, 2026

Disclosure of Repurchase Agreements [Abstract]

The following tables present the components of, and certain information with respect to, the Company’s Financing agreements at March 31, 2026 and December 31, 2025:


	March 31, 2026
(Dollars In Thousands)	Collateral	Unpaid Principal Balance		Fair Value/Carrying Value (1)		Weighted Average Cost of Funding (2)		Weighted Average Term to Maturity (Months)
Agreements with mark-to-market collateral provisions	Residential whole loans and REO	$	1,432,645	$	1,432,214	5.44	%	9.9
Agreements with mark-to-market collateral provisions	Securities	3,140,730		3,140,730		3.85	%	0.5
Total Agreements with mark-to-market collateral provisions		$	4,573,375	$	4,572,944	4.36	%
Agreements with non-mark-to-market collateral provisions	Residential whole loans and REO	64,576		64,570		5.82	%	11.8
Securitized debt	Residential whole loans	6,332,739		6,271,123		5.02	%	See Note 14

Other secured financing (3)	Other	23,713		23,713		5.99	%	51.5
8.875% Senior Notes due 2029	Unsecured	115,000		112,246		9.83	%	34.6
9.00% Senior Notes due 2029	Unsecured	75,000		72,982		9.94	%	40.5
Impact of net Swap carry						(0.40)	%
Total Financing agreements (2)		$	11,184,403	$	11,117,578	4.44	%


	December 31, 2025
(Dollars In Thousands)	Collateral	Unpaid Principal Balance		Fair Value/Carrying Value (1)		Weighted Average Cost of Funding (2)		Weighted Average Term to Maturity (Months)
Agreements with mark-to-market collateral provisions	Residential whole loans and REO	$	1,332,593	$	1,331,967	5.72	%	11.4
Agreements with mark-to-market collateral provisions	Securities	2,980,762		2,980,762		4.18	%	0.4
Total Agreements with mark-to-market collateral provisions		$	4,313,355	$	4,312,729	4.71	%
Agreements with non-mark-to-market collateral provisions	Residential whole loans and REO	82,019		82,016		6.44	%	14.5
Securitized debt	Residential whole loans	6,377,576		6,336,462		5.10	%	See Note 14

Other secured financing (3)	Other	23,908		23,908		6.40	%	54.4
8.875% Senior Notes due 2029	Unsecured	115,000		112,041		9.83	%	37.5
9.00% Senior Notes due 2029	Unsecured	75,000		72,858		9.94	%	43.5
Impact of net Swap carry						(0.54)	%
Total Financing agreements (2)		$	10,986,858	$	10,940,014	4.51	%

(1)The Company has both financing agreements held at fair value and financing agreements held at their carrying value (amortized cost basis). Financing agreements held at fair value are reported at estimated fair value each period as a result of the Company’s fair value option election. The fair value option was not elected for financing agreements held at carrying value. Consequently, total financing agreements as presented reflects a summation of balances reported at fair and carrying value. At March 31, 2026, the Company had $82.1 million of agreements with mark-to-market collateral provisions held at fair value, $32.4 million of agreements with non-mark-to-market collateral provisions held at fair value, and $5.8 billion of securitized debt held at fair value, with amortized cost basis of $82.1 million, $32.4 million, and $5.8 billion, respectively. At December 31, 2025, the Company had $61.1 million of agreements with mark-to-market collateral provisions held at fair value, $48.2 million of agreements with non-mark-to-market collateral provisions held at fair value, and $5.8 billion of securitized debt held at fair value, with amortized cost basis of $61.1 million, $48.2 million, and $5.9 billion, respectively.

(2)Weighted average cost of funding reflects annualized quarter-to-date interest expense (inclusive of the amortization of deferred financing costs) divided by average balance for the financing agreements. The cost of funding for the total financing agreements includes the impact of the net Swap carry (the difference between Swap interest income received and Swap interest expense paid) on the Company’s Swaps. For the three months ended March 31, 2026, this decreased the overall funding cost by 40 basis points, and for the three months ended December 31, 2025, this decreased the overall funding cost by 54 basis points. The Company does not allocate the impact of the net Swap carry by type of financing agreement.

(3)Up to $20 million of the unpaid principal balance is subject to a 60-day call period at the counterparty’s option.

The following table presents maturities with respect to the Company’s financing agreements with mark-to-market and non-mark-to-market collateral provisions:


	As of March 31, 2026
	Unpaid Principal Balance, Maturing In
(In Thousands)	Collateral	0-3 Months (1)		3-6 Months		6-12 Months		Greater than 12 Months (2)		Total
Agreements with mark-to-market collateral provisions	Residential whole loans	$	456,595	$	356,842	$	261,435	$	357,773	$	1,432,645
Agreements with mark-to-market collateral provisions	Securities	3,140,730		—		—		—		3,140,730
Total Agreements with mark-to-market collateral provisions		3,597,325		356,842		261,435		357,773		4,573,375
Agreements with non-mark-to-market collateral provisions	Residential whole loans	14,073		—		18,135		32,368		64,576

(1)$3.5 billion of the mark-to-market agreements (included in the 0-3 months category) can be terminated by either party.

(2)Amounts presented are based on the assumed exercise of the Company’s unilateral option to extend by one year the maturity of an agreement with mark-to-market collateral provisions with $275.6 million outstanding. The longest maturity date is approximately 30 months.

Schedule of Financing Agreements with Non-Mark-to-Market Collateral Provisions and Associated Assets Pledged as Collateral

The following table presents information with respect to the Company’s financing agreements with mark-to-market collateral provisions and associated assets pledged as collateral at March 31, 2026 and December 31, 2025:


(Dollars in Thousands)	March 31, 2026			December 31, 2025
Mark-to-market financing agreements secured by residential whole loans (1)	$	1,402,884		$	1,308,661
Fair value of residential whole loans pledged as collateral under financing agreements	$	1,748,101		$	1,642,252
Weighted average haircut on residential whole loans (2)	19.73		%	20.28		%
Mark-to-market financing agreements secured by securities at fair value	$	3,140,730		$	2,980,762
Securities at fair value pledged as collateral under financing agreements	$	3,288,239		$	3,107,405
Weighted average haircut on securities at fair value (2)	3.79		%	3.82		%
Mark-to-market financing agreements secured by real estate owned	$	29,330		$	23,307
Fair value of real estate owned pledged as collateral under financing agreements	$	46,687		$	41,072
Weighted average haircut on real estate owned (2)	37.14		%	42.24		%

(1)Includes an aggregate of $396.0 million and $466.9 million of mark-to-market financing collateralized by Non-Agency MBS with a fair value of $497.6 million and $600.0 million obtained in connection with the Company’s loan securitization transactions that are eliminated in consolidation as of March 31, 2026 and December 31, 2025, respectively.

(2)Haircut represents the percentage amount by which the collateral value is contractually required to exceed the amount borrowed.

Schedule of Financing Agreements with Mark-to-Market Collateral Provisions and Associated Assets Pledged as Collateral

The following table presents information with respect to the Company’s financing agreements with non-mark-to-market collateral provisions and associated assets pledged as collateral at March 31, 2026 and December 31, 2025:


(Dollars in Thousands)	March 31, 2026			December 31, 2025
Non-mark-to-market financing secured by residential whole loans	$	64,570		$	82,016
Fair value of residential whole loans pledged as collateral under financing agreements	$	84,099		$	115,326
Weighted average haircut on residential whole loans	23.21		%	28.88		%
Non-mark-to-market financing secured by real estate owned	$	—		$	—
Fair value of real estate owned pledged as collateral under financing agreements	$	—		$	—
Weighted average haircut on real estate owned	—		%	—		%

Schedule of Repricing Information about Borrowings under Financing Agreements

The following table presents repricing information (excluding the impact of associated derivative hedging instruments, if any) about the Company’s financing agreements that have non-mark-to-market collateral provisions as well as those that have mark-to-market collateral provisions, at March 31, 2026 and December 31, 2025:


	March 31, 2026				December 31, 2025
	Amortized Cost Basis		Weighted Average Interest Rate		Amortized Cost Basis		Weighted Average Interest Rate
Time Until Interest Rate Reset
(Dollars in Thousands)
Within 30 days	$	4,637,951	4.32	%	$	4,395,375	4.49	%
Over 30 days to 3 months	—		—		—		—
Over 3 months to 12 months	—		—		—		—
Over 12 months	—		—		—		—
Total financing agreements	$	4,637,951	4.32	%	$	4,395,375	4.49	%

Schedule of Information about Counterparty for Financing Agreements for which Entity had Greater than 5% of Stockholders' Equity at risk

The following table presents information with respect to each counterparty under financing agreements for which the Company had greater than 5% of stockholders’ equity at risk in the aggregate at March 31, 2026:


	March 31, 2026
Counterparty	Amount at Risk (1)		Weighted Average Months to Maturity	Percent of Stockholders’ Equity
(Dollars in Thousands)
Wells Fargo	$	124,957	3	7.02%
Barclays	117,225		2.7	6.59%

(1)The amount at risk reflects the difference between (a) the amount loaned to the Company through financing agreements, including interest payable, and (b) the cash and the fair value of the assets pledged by the Company as collateral, including accrued interest receivable on such assets.

Schedule of Company's Assets (Based on Carrying Value) Pledged as Collateral for various Financing Arrangements

The following tables present the Company’s assets (based on carrying value) pledged as collateral for its various financing arrangements as of March 31, 2026 and December 31, 2025:


	March 31, 2026
	Financing Agreements
(In Thousands)	Securitized		Non-Mark-to-Market (1)		Mark-to-Market (1)		Total
Assets:
Residential whole loans (2)	$	7,410,840	$	84,099	$	1,251,321	$	8,746,260
Securities, at fair value	—		—		3,288,239		3,288,239
Other assets: REO	54,922		—		41,309		96,231
Total	$	7,465,762	$	84,099	$	4,580,869	$	12,130,730


	December 31, 2025
	Financing Agreements
(In Thousands)	Securitized		Non-Mark-to-Market (1)		Mark-to-Market (1)		Total
Assets:
Residential whole loans (2)	$	7,605,654	$	115,326	$	1,043,363	$	8,764,343
Securities, at fair value	—		—		3,107,405		3,107,405
Other assets: REO	52,370		—		37,002		89,372
Total	$	7,658,024	$	115,326	$	4,187,770	$	11,961,120

(1)An aggregate of $29.6 million and $27.0 million of accrued interest on those assets pledged against non-mark-to-market and mark-to-market financing agreements had also been pledged as of March 31, 2026 and December 31, 2025, respectively.

(2)Includes an aggregate of $396.0 million and $466.9 million of mark-to-market financing collateralized by Non-Agency MBS with a fair value of $497.6 million and $600.0 million obtained in connection with the Company’s loan securitization transactions that are eliminated in consolidation as of March 31, 2026 and December 31, 2025, respectively.