| Short-Term Debt |
Note 14— Short-Term Debt The borrowing facilities described throughout these Notes 14 and 15 contain various covenants, including financial covenants
relating to the Company and its subsidiaries’ net worth, debt-to-equity ratio, and liquidity. The Company believes that it was in
compliance with these covenants as of March 31, 2026. Assets sold under agreements to repurchase Following is a summary of financial information relating to assets sold under agreements to repurchase:
|
|
|
|
|
|
|
|
|
|
|
Quarter ended March 31, |
|
|
|
2026 |
|
|
2025 |
|
|
|
(dollars in thousands) |
|
Weighted average interest rate (1) |
|
|
4.64 |
% |
|
|
5.21 |
% |
Average balance |
|
$ |
7,812,433 |
|
|
$ |
6,180,911 |
|
Total interest expense |
|
$ |
91,392 |
|
|
$ |
81,148 |
|
Maximum daily amount outstanding |
|
$ |
8,673,233 |
|
|
$ |
7,068,600 |
|
(1)Excludes the effect of amortization of debt issuance costs of $1.9 million and $1.8 million for the quarters ended March 31, 2026 and 2025, respectively.
|
|
|
|
|
|
|
|
|
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
|
|
(dollars in thousands) |
|
Carrying value: |
|
|
|
|
|
|
Unpaid principal balance |
|
$ |
7,304,211 |
|
|
$ |
8,023,156 |
|
Unamortized debt issuance costs |
|
|
(3,519 |
) |
|
|
(4,555 |
) |
|
|
$ |
7,300,692 |
|
|
$ |
8,018,601 |
|
Weighted average interest rate |
|
|
4.54 |
% |
|
|
4.71 |
% |
Available borrowing capacity (1): |
|
|
|
|
|
|
Committed |
|
$ |
553,463 |
|
|
$ |
595,085 |
|
Uncommitted |
|
|
5,174,734 |
|
|
|
5,032,598 |
|
|
|
$ |
5,728,197 |
|
|
$ |
5,627,683 |
|
Margin deposits placed with counterparties included in Other assets, net |
|
$ |
170,948 |
|
|
$ |
174,598 |
|
Assets securing agreements to repurchase: |
|
|
|
|
|
|
Mortgage-backed securities at fair value |
|
$ |
3,765,539 |
|
|
$ |
4,452,859 |
|
Loans held for sale at fair value |
|
$ |
2,328,824 |
|
|
$ |
2,676,700 |
|
Loans held for investment at fair value |
|
$ |
937,680 |
|
|
$ |
648,159 |
|
Credit risk transfer arrangements: |
|
|
|
|
|
|
Derivative assets |
|
$ |
9,169 |
|
|
$ |
12,622 |
|
Deposits securing credit risk transfer arrangements |
|
$ |
153,742 |
|
|
$ |
176,694 |
|
Mortgage servicing rights at fair value (2) |
|
$ |
1,745,231 |
|
|
$ |
1,765,572 |
|
Servicing advances (3) |
|
$ |
38,930 |
|
|
$ |
44,653 |
|
(1)The amount the Company is able to borrow under asset repurchase agreements is tied to the fair value of unencumbered assets eligible to secure those agreements and the Company’s ability to fund the agreements’ margin requirements relating to the assets financed. (2)Beneficial interests in Fannie Mae MSRs are pledged to secure both Assets sold under agreements to repurchase and Notes payable secured by credit risk transfer and mortgage servicing assets. (3)Beneficial interests in Fannie Mae servicing advances are pledged to secure Assets sold under agreements to repurchase. Maturities Following is a summary of maturities of outstanding advances under repurchase agreements by maturity date:
|
|
|
|
|
Remaining maturity at March 31, 2026 (1) |
|
Unpaid
principal
balance |
|
|
|
(in thousands) |
|
Within 30 days |
|
$ |
4,209,428 |
|
Over 30 to 90 days |
|
|
2,387,866 |
|
Over 90 days to 180 days |
|
|
153,151 |
|
Over 180 days to 1 year |
|
|
55,000 |
|
Over 1 year to 2 years |
|
|
498,766 |
|
|
|
$ |
7,304,211 |
|
Weighted average maturity (in months) |
|
|
2.3 |
|
(1)The Company is subject to margin calls during the period the repurchase agreements are outstanding and therefore may be required to repay a portion of the borrowings before the respective repurchase agreements mature if the fair values (as determined by the applicable lender) of the assets securing those repurchase agreements decrease. Amounts at Risk The amount at risk (the fair value of the assets pledged plus the related margin deposit, less the amount advanced by the counterparty and interest payable) and maturity information relating to the Company’s assets sold under agreements to repurchase is summarized by pledged asset and counterparty below as of March 31, 2026: Loans and MSRs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average maturity |
Counterparty |
|
Amounts at risk |
|
|
Advances |
|
Facility |
|
|
(in thousands) |
|
|
|
|
|
Atlas Securitized Products, L.P. |
|
$ |
488,626 |
|
|
April 29, 2026 |
|
December 10, 2027 |
Santander US Capital |
|
$ |
69,951 |
|
|
June 25, 2026 |
|
June 25, 2026 |
Bank of America, N.A. |
|
$ |
66,920 |
|
|
April 7, 2026 |
|
March 3, 2027 |
Goldman Sachs & Co. LLC |
|
$ |
63,918 |
|
|
April 12, 2026 |
|
March 13, 2028 |
Nomura Holdings America, Inc. |
|
$ |
73,914 |
|
|
April 29, 2026 |
|
April 29, 2026 |
Citibank, N.A. |
|
$ |
53,729 |
|
|
July 12, 2026 |
|
July 27, 2026 |
RBC Capital Markets, L.P. |
|
$ |
21,268 |
|
|
June 13, 2026 |
|
January 19, 2027 |
JPMorgan Chase & Co. |
|
$ |
2,948 |
|
|
May 23, 2026 |
|
June 28, 2026 |
Morgan Stanley & Co. LLC |
|
$ |
23,971 |
|
|
June 2, 2026 |
|
August 18, 2027 |
Wells Fargo Securities, LLC |
|
$ |
5,949 |
|
|
May 20, 2026 |
|
March 18, 2027 |
BNP Paribas |
|
$ |
11,212 |
|
|
May 27, 2026 |
|
February 22, 2027 |
Securities
|
|
|
|
|
|
|
Counterparty |
|
Amounts at risk |
|
|
Weighted-average maturity |
|
|
(in thousands) |
|
|
|
Santander US Capital |
|
$ |
36,286 |
|
|
May 1, 2026 |
Bank of America, N.A. |
|
$ |
22,623 |
|
|
May 2, 2026 |
Goldman Sachs & Co. LLC |
|
$ |
15,649 |
|
|
April 15, 2026 |
Nomura Holdings America, Inc. |
|
$ |
1,200 |
|
|
June 30, 2026 |
Citibank, N.A. |
|
$ |
7,181 |
|
|
May 12, 2026 |
JPMorgan Chase & Co. |
|
$ |
39,757 |
|
|
April 28, 2026 |
Wells Fargo Securities, LLC |
|
$ |
22,788 |
|
|
April 30, 2026 |
Barclays Capital Inc. |
|
$ |
12,066 |
|
|
April 22, 2026 |
Bank of Montreal |
|
$ |
8,485 |
|
|
May 7, 2026 |
Daiwa Capital Markets America Inc. |
|
$ |
4,891 |
|
|
May 5, 2026 |
Mizuho Financial Group |
|
$ |
2,079 |
|
|
April 23, 2026 |
|
|
|
|
|
|
CRT arrangements
|
|
|
|
|
|
|
Counterparty |
|
Amounts at risk |
|
|
Weighted-average maturity |
|
|
(in thousands) |
|
|
|
RBC Capital Markets, L.P. |
|
$ |
22,080 |
|
|
April 24, 2026 |
Morgan Stanley & Co. LLC |
|
$ |
17,349 |
|
|
April 30, 2026 |
Mortgage Loan Participation Purchase and Sale Agreement One of the borrowing facilities secured by loans held for sale is in the form of a mortgage loan participation purchase and sale
agreement. Participation certificates, each of which represents an undivided beneficial ownership interest in loans that have been pooled into a pending securitization with Freddie Mac or Fannie Mae, are sold to the lender pending the securitization of such loans and the sale of the resulting security. The commitment between the Company and a nonaffiliate to sell such security is also assigned to the lender at the time a participation certificate is sold. The purchase price paid by the lender for each participation certificate is based on the trade price of the security, plus an amount of interest expected to accrue on the security to its anticipated delivery date, minus a present value adjustment, any related hedging costs and a holdback amount. The holdback amount is based on a percentage of the purchase price and is not required to be paid to the Company until the settlement of the security and its delivery to the lender. The mortgage loan participation purchase and sale agreement is summarized below:
|
|
|
|
|
|
|
|
|
|
|
Quarter ended March 31, |
|
|
|
2026 |
|
|
2025 |
|
|
|
(dollars in thousands) |
|
Average balance |
|
$ |
— |
|
|
$ |
8,653 |
|
Weighted average interest rate (1) |
|
|
— |
|
|
|
5.68 |
% |
Total interest expense |
|
$ |
31 |
|
|
$ |
152 |
|
Maximum daily amount outstanding |
|
$ |
— |
|
|
$ |
49,266 |
|
(1)Excludes the effect of amortization of debt issuance costs of $31,000 for the quarters ended March 31, 2026 and 2025. |