v3.26.1
Financing
 3 Months Ended
Mar. 31, 2026
Notes Payable [Abstract]  
Financing Financing
The Company has the ability to finance residential whole loans and lines of credit and commercial whole loans, utilizing lines of credit (notes payable) from various counterparties, as further described below. Outstanding borrowings bear interest at floating rates depending on the lending counterparty, the collateral pledged, and the rate in effect for each interest period, as the same may change from time to time at the end of each interest period. Some loans include upfront fees, exit or withdrawal fees, covenants and concentration limits on types of collateral pledged, many of which vary based on the counterparty. Occasionally, a lender may require certain margin collateral to be posted on a warehouse line of credit. There was no margin collateral required as of March 31, 2026 or December 31, 2025.
The following table sets forth the details of the Company’s financing arrangements as of March 31, 2026 and December 31, 2025 ($ in thousands):

March 31, 2026December 31, 2025
Current FaceCarrying ValueStated MaturityBased/Fixed Interest RateInterest Rate Pricing SpreadCarrying Value
Notes payable
Multinational Bank 1 (1)
$79,013 $79,013 June 2026Average Daily SOFR
1.65% - 2.10%
$125,091 
Global Investment Bank 2 (2)
23,155 23,155 April 20281 Month Term SOFR
1.50% - 2.60%
— 
Global Investment Bank 3 (3)
64,407 64,407 September 2026Compound SOFR
1.75% - 4.75%
60,263 
Global Investment Bank 4 (4)
25,655 25,655 October 2027Term SOFR1.60%33,403 
Total Notes Payable Financing$192,230 $192,230 $218,757 
Non-recourse securitization obligation, at fair value$2,089,596 $2,079,653 N/A4.42%$1,915,321 
Securities sold under agreements to repurchase$57,000 $57,000 April 20265.14%$54,041 
Senior Unsecured Notes
June 2030 Senior Unsecured Notes$42,500 $40,888 June 20309.75%$40,784 
July 2029 Senior Unsecured Notes50,000 48,363 July 20299.50%48,239 
Total Senior Unsecured Notes$92,500 $89,251 $89,023 
Total Financing$2,431,326 $2,418,134 $2,277,142 

(1)     On December 26, 2025, this financing facility was extended through June 25, 2026 in accordance with the terms of the agreement, which contemplates rolling three-month renewals. The interest rate pricing spread remained unchanged from the prior extension at a range from 1.65% to 2.10%.

(2)     On April 22, 2026, the Company and one of its subsidiaries, amended the Pricing Side Letter for its loan financing facility with Global Investment Bank 2. The amendment updates the seller underwriting guidelines to include home equity revolving lines of credit. The termination date of the loan financing facility was extended to April 21, 2028. In addition, the interest rate pricing spread was updated to a range from 1.50% to 2.60%; prior to this extension, the interest rate pricing spread was a range from 1.65% to 2.40%

(3)     On September 26, 2025, the facility’s termination date was extended to September 26, 2026. In addition, the interest rate pricing spread was reduced to a range from 1.75% to 4.75%; prior to this extension, the interest rate pricing spread was a range from 1.90% to 4.75%.
(4)     On October 6, 2025, the Company and one of its subsidiaries entered into a $200.0 million repurchase facility with a global investment bank (“Global Investment Bank 4”) through the execution of a Master Repurchase Agreement and Securities Contract (the “Global Investment Bank 4 Master Repurchase Agreement”). The amount expected to be advanced by Global Investment Bank 4 is generally in line with other similar agreements that the Company has entered into. Additionally, the rates, terms, events of default, and remedies for such events of default contained within the Global Investment Bank 4 Master Repurchase Agreement are generally in line with other similar agreements that the Company has entered into. The interest rate is equal to the sum of (1) a spread of 1.60%, and (2) Term SOFR. The Global Investment Bank 4 Master Repurchase Agreement expires on October 6, 2027, unless terminated earlier pursuant to the terms of the Global Investment Bank 4 Master Repurchase Agreement.

Notes Payable

The following table sets forth the total unused borrowing capacity of each financing line as of March 31, 2026:

Note PayableBorrowing CapacityBalance OutstandingAvailable Financing
(in thousands)
Multinational Bank 1$600,000 $79,013 $520,987 
Global Investment Bank 2250,000 23,155 226,845 
Global Investment Bank 3200,000 64,407 135,593 
Global Investment Bank 4200,000 25,655 174,345 
Total$1,250,000 $192,230 $1,057,770 

Although available financing is uncommitted for each of these lines of credit, the Company’s unused borrowing capacity is available if it has eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements.
Senior Unsecured Notes

The Company’s Senior Unsecured Notes consist of $42.5 million principal amount of its 9.750% Senior Notes due June 2030 (the “2030 Notes”) and $50.0 million principal amount of its 9.500% Senior Notes due July 2029 (the “2029 Notes” and, together with the 2030 Notes, the “Senior Unsecured Notes”). The 2030 Notes were issued in May 2025 in a public offering for net proceeds of approximately $40.6 million and the 2029 Notes were issued in July 2024 in a public offering for net proceeds of approximately $47.5 million. The below table provides a summary of the Senior Unsecured Notes as of March 31, 2026 ($ in thousands).

Carrying Value
Senior Unsecured Notes (1)
 Principal Amount March 31, 2026December 31, 2025
Maturity Date (2)
Redemption Date (3)
 Rate (4)
June 2030 Senior Unsecured Notes$42,500 $40,888 $40,784 June 2030June 20279.75 %
July 2029 Senior Unsecured Notes50,000 48,363 48,239 July 2029July 20269.50 %
$92,500 $89,251 $89,023 

(1)     The Senior Unsecured Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Operating Partnership, including the due and punctual payment of principal, premium, if any, and interest on the Senior Unsecured Notes, whether at stated maturity, upon acceleration, call for redemption or otherwise.

(2)     The Company has the option to redeem the Senior Unsecured Notes earlier than the maturity date.

(3)    The Company may redeem the Senior Unsecured Notes in whole or in part at any time on or after the optional redemption date, at a redemption price equal to 100% of the outstanding principal amount of the Senior Unsecured Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. Upon the occurrence of certain events relating to a change of control of the Company, the Company must make an offer to repurchase all outstanding Senior Unsecured Notes at a price in cash equal to 101% of the principal amount of the Senior Unsecured Notes, plus accrued and unpaid interest to, but excluding, the repurchase date.

(4)    The 2030 Notes bear interest at a rate equal to 9.750% per year, payable in cash quarterly in arrears on March 1, June 1, September 1, and December 1 of each year. The 2029 Notes bear interest at a rate equal to 9.500% per year, payable in cash quarterly in arrears on January 30, April 30, July 30 and October 30 of each year.

The below table details the total interest expense incurred on the Senior Unsecured Notes during the three months ended March 31, 2026 and March 31, 2025 ($ in thousands).

Three Months Ended
March 31, 2026March 31, 2025
Coupon interest expense$2,230 $1,187 
Amortization expense221 125 
Total interest expense$2,451 $1,312 

At March 31, 2026 and December 31, 2025, the accrued interest payable on the Senior Unsecured Notes was $1.2 million and $2.2 million, respectively.

At March 31, 2026 and December 31, 2025, the unamortized deferred debt issuance cost was $1.2 million and $1.2 million, respectively. The unamortized debt issuance costs will be amortized until maturity.
Securities Sold Under Agreements to Repurchase

Transactions involving securities sold under agreements to repurchase are treated as collateralized financial transactions, and are recorded at their contracted repurchase amounts. Margin (if required) for securities sold under agreements to repurchase represents margin collateral amounts held to ensure that the Company has sufficient coverage for securities sold under agreements to repurchase in case of adverse price changes. Restricted cash of margin collateral for securities sold under agreements to repurchase was $1.2 million and $1.2 million as of March 31, 2026 and December 31, 2025, respectively.

The following table summarizes certain characteristics of the Company’s repurchase agreements as of March 31, 2026 and December 31, 2025:

March 31, 2026
Repurchase AgreementsAmount OutstandingWeighted Average Interest RateWeighted Average Remaining Maturity (Days)
($ in thousands)
AOMT RMBS (1)
$57,000 5.14 %16
December 31, 2025
Repurchase AgreementsAmount OutstandingWeighted Average Interest RateWeighted Average Remaining Maturity (Days)
AOMT RMBS (1)
$54,041 5.44 %16

(1)     A portion of repurchase debt outstanding as of March 31, 2026 and December 31, 2025 includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs). See Note 4 - Investment Securities.
Although the transactions under repurchase agreements represent committed borrowings until maturity, the lenders retain the right to mark the underlying collateral at fair value. A reduction in the value of pledged assets would require the Company to provide additional collateral or fund margin calls.