Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2026

Summary of Financial Information Relating to Note Payable Secured by Credit Risk Transfer and Mortgage Servicing Assets

Following is a summary of financial information relating to notes payable secured by credit risk transfer and mortgage servicing assets:


	Quarter ended March 31,
	2026			2025
	(dollars in thousands)
Average balance	$	2,316,141		$	2,830,048
Weighted average interest rate (1)		6.92	%		7.59	%
Total interest expense	$	41,260		$	55,255

(1)

Excludes the effect of amortization of debt issuance costs of $1.8 million and $2.3 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:
Credit risk transfer arrangement financing	$	596,965		$	608,903
Fannie Mae mortgage servicing rights financing		725,000			725,000
Freddie Mac mortgage servicing rights and servicing advance receivable financing		1,079,635			927,943
		2,401,600			2,261,846
Unamortized debt issuance costs		(5,055	)		(3,718	)
	$	2,396,545		$	2,258,128
Weighted average interest rate		6.85	%		6.91	%
Assets securing notes payable:
Mortgage servicing rights at fair value (1)	$	3,560,828		$	3,582,211
Servicing advances (1)	$	28,675		$	33,777
Credit risk transfer arrangements:
Deposits securing credit risk transfer arrangements	$	815,983		$	832,640
Derivative assets	$	21,005		$	20,037

(1)

Beneficial interests in Freddie Mac MSRs and related servicing advances are pledged as collateral for the Notes payable secured by credit risk transfer and mortgage servicing assets. Beneficial interests in Fannie Mae MSRs are pledged for both Assets sold under agreements to repurchase and Notes payable secured by credit risk transfer and mortgage servicing assets.

Summary of Financial Information Relating to Unsecured Senior Notes

Following is financial information relating to the unsecured senior notes:


	Quarter ended March 31,
	2026			2025
	(in thousands)
Average balance	$	977,333		$	708,917
Weighted average interest rate (1)		7.91	%		7.23	%
Interest expense	$	20,274		$	13,613

	March 31, 2026			December 31, 2025
	(in thousands)
Carrying value:
Unpaid principal balance
Exchangeable senior notes	$	366,500		$	711,500
Senior notes		331,000			331,000
		697,500			1,042,500
Unamortized debt issuance costs		(12,994	)		(14,200	)
	$	684,506		$	1,028,300

(1)

Excludes the effect of amortization of debt issuance costs of $1.2 million and $976,000 for the quarters ended March 31, 2026 and 2025, respectively.

Summary of Financial Information Relating to Asset-Backed Financing of a VIE at Fair Value

Following is a summary of financial information relating to the asset-backed financings of VIEs at fair value described in Note 6 ‒ Variable Interest Entities ‒ Subordinate Mortgage-Backed Securities:


	Quarter ended March 31,
	2026			2025
	(dollars in thousands)
Average balance	$	8,827,189		$	2,633,042
Weighted average interest rate (1)		5.72	%		4.63	%
Total interest expense	$	120,540		$	28,715

(1)

Excludes the effect of amortization of premiums of $3.9 million and $1.4 million for the quarters ended March 31, 2026 and 2025, respectively.


	March 31, 2026			December 31, 2025
	(dollars in thousands)
Fair value	$	9,903,515		$	7,789,303
Unpaid principal balance	$	9,882,623		$	7,763,364
Weighted average interest rate		6.03	%		6.03	%

Schedule of Contractual Maturities on Long Term Debt Obligations

Maturities of Long-Term Debt

Contractual maturities of long-term debt obligations (based on final maturity dates) are as follows:


			Twelve months ending March 31,
	Total		2027		2028		2029		2030		2031		Thereafter
	(in thousands)
Notes payable secured by credit risk transfer and mortgage servicing assets (1)	$	2,401,600	$	1,542,877	$	355,000	$	503,723	$	—	$	—	$	—
Unsecured senior notes		697,500		—		—		53,500		539,000		105,000		—
Interest-only security payable at fair value (2)		34,232		—		—		—		—		—		34,232
Asset-backed financings at fair value (2)		9,882,623		—		—		—		—		—		9,882,623
Total	$	13,015,955	$	1,542,877	$	355,000	$	557,223	$	539,000	$	105,000	$	9,916,855

(1)

Based on stated maturity. As discussed above, certain of the Notes payable secured by credit risk transfer and mortgage servicing assets allow the Company to exercise optional extensions.

(2)

Contractual maturity does not reflect expected repayment as borrowers of the underlying loans generally have the right to repay their loans at any time.

Senior Notes [Member]

Summary of Term Note Issued to Qualified Institutional Buyers

The senior notes are summarized below:


Issuance date		Unpaid principal balance		Annual interest rate spread	Maturity date	Redemption date (1)
	(in thousands)
June 2025		$	105,000	9.00%	June 15, 2030	June 15, 2027
February 2025			172,500	9.00%	February 15, 2030	February 15, 2027
September 2023			53,500	8.50%	September 30, 2028	September 30, 2025
		$	331,000

(1)

Redemptions may be made on or after the dates indicated.

CRT Arrangement Financing [Member]

Summary of Term Note Issued to Qualified Institutional Buyers

Following is a summary of the CRT Term Notes outstanding:


CRT Term Notes	Issuance date	Issuance amount		Unpaid principal balance		Annual interest rate spread (1)	Maturity date
		(in thousands)
2024 3R	August 28, 2024	$	158,500	$	133,723	3.10%	September 27, 2028
2024 2R	April 4, 2024	$	247,000		207,556	3.35%	March 29, 2027
2024 1R	March 6, 2024	$	306,000		255,686	3.50%	March 1, 2027
				$	596,965

(1)

Interest rates are charged at a spread to the Secured Overnight Financing Rate ("SOFR").

Fannie Mae MSR Financing

Summary of Term Note Issued to Qualified Institutional Buyers

Following is a summary of the term financing of the Company’s Fannie Mae MSRs:

          
         Maturity date

         Issuance

         Issuance date

         Unpaid principal
balance

         Annual interest
 rate spread (1)

         Stated

         Optional extension (2)

          
         (in thousands)

         Term Loans

2023

May 25, 2023

370,000

3.00%

May 25, 2028

May 25, 2029

         Term Notes

2024

June 27, 2024

355,000

2.75%

December 27, 2027

June 26, 2028

725,000

(1)

Interest rates are charged at a spread to SOFR.

(2)

The indentures relating to these issuances provide the Company with the option of extending the maturity dates of the FTL-1 Term Loans and FT-1 Term Notes under conditions specified in the respective agreements.

Exchangeable Senior Notes [Member]

Summary of Term Note Issued to Qualified Institutional Buyers


Initial issuance date		Unpaid principal balance		Annual interest rate	Exchange rates (1)	Maturity date (2)
	(in thousands)
May 24, 2024 (3)		$	366,500	8.50%	63.3332	June 1, 2029

(1)

Common Shares per $1,000 principal amount.

(2)

Unless repurchased or exchanged in accordance with their terms before such date.

(3)

Balance includes $16.5 million issued on June 4, 2024, $75 million issued on December 15, 2025 and $75 million issued on December 22, 2025.