| Short-Term Debt |
Note 14—Short-Term Debt The borrowing facilities described throughout these Notes 14 and 15 contain various covenants, including financial covenants governing the Company’s net worth, debt-to-equity ratio and liquidity. Management believes that the Company was in compliance with these covenants as of March 31, 2026. Assets Sold Under Agreements to Repurchase The Company has multiple borrowing facilities in the form of asset sales under agreements to repurchase. These borrowing facilities are secured by principal-only stripped MBS, loans held for sale, participation certificates backed by mortgage servicing assets and margin deposits. Eligible assets are sold at advance rates based on the fair value (as determined by the lender) of the assets sold. Interest is charged at a rate based on the Secured Overnight Financing Rate (“SOFR”). Principal-only stripped MBS, loans, mortgage servicing assets and participation certificates backed by mortgage servicing assets financed under these agreements may be re-pledged by the lenders. Assets sold under agreements to repurchase are summarized below: | | | | | | | | | Quarter ended March 31, | | | 2026 | | 2025 | | | | (dollars in thousands) | Average balance of assets sold under agreements to repurchase | | $ | 7,971,975 | | $ | 6,109,683 | Weighted average interest rate (1) | | | 5.28% | | | 5.94% | Total interest expense | | $ | 110,018 | | $ | 94,229 | Maximum daily amount outstanding | | $ | 10,183,904 | | $ | 8,589,915 |
| (1) | Excludes the effect of amortization of debt issuance costs and non-utilization fees of $6.2 million and $4.8 million for the quarters ended March 31, 2026 and 2025, respectively. |
| | | | | | | | | March 31, | | December 31, | | | 2026 | | 2025 | | | | (dollars in thousands) | Carrying value: | | | | | | | Unpaid principal balance | | $ | 10,183,904 | | $ | 8,801,215 | Unamortized debt issuance costs | | | (6,261) | | | (7,213) | | | $ | 10,177,643 | | $ | 8,794,002 | Weighted average interest rate | | | 5.18% | | | 5.18% | Available borrowing capacity (1): | | | | | | | Committed | | $ | 1,193,285 | | $ | 1,486,344 | Uncommitted | | | 3,480,243 | | | 3,367,758 | | | $ | 4,673,528 | | $ | 4,854,102 | Assets securing repurchase agreements: | | | | | | | Principal-only stripped mortgage-backed securities | | $ | 659,235 | | $ | 722,528 | Loans held for sale | | $ | 9,067,257 | | $ | 8,245,256 | Servicing advances (2) | | $ | 394,107 | | $ | 406,825 | Mortgage servicing rights (2) | | $ | 9,425,085 | | $ | 7,968,105 | Margin deposits (2) | | $ | 15,241 | | $ | 10,393 |
| (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 the Ginnie Mae MSRs, Fannie Mae MSRs, servicing advances and margin deposit assets collectively serve as the collateral securing the servicing asset financing facilities that are included in Assets sold under agreements to repurchase and the term notes and term loans included in Notes payable secured by mortgage servicing assets. The term notes and term loans are described in Note 15–Long-Term Debt - Notes payable secured by mortgage servicing assets. |
Maturities Following is a summary of maturities of outstanding advances under asset repurchase agreements by maturity date: | | | | Remaining maturity at March 31, 2026 (1) | | Unpaid principal balance | | | (dollars in thousands) | Within 30 days | | $ | 1,966,744 | Over 30 to 90 days | | | 6,411,274 | Over 90 to 180 days | | | 659,525 | Over 180 days to one year | | | 360,082 | Over one year to two years | | | 786,279 | Total assets sold under agreements to repurchase | | $ | 10,183,904 | Weighted average maturity (in months) | | | 3.5 |
| (1) | The Company is subject to margin calls during the periods the agreements are outstanding and therefore may be required to repay a portion of the borrowings before the respective agreements mature if the fair values (as determined by the applicable lender) of the assets securing those 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) relating to the Company’s assets sold under agreements to repurchase is summarized by asset type and counterparty below as of March 31, 2026: Loans held for sale and MSRs | | | | | | | | | | | | | | | | | | | | | Weighted average | | | Counterparty | | Amount at risk | | maturity of advances | | Facility maturity | | | (in thousands) | | | | | Atlas Securitized Products, L.P., Goldman Sachs Bank USA, Nomura Corporate Funding Americas and Mizuho Bank, Ltd. (1) | | $ | 6,569,205 | | May 3, 2027 | | May 3, 2027 | Barclays Bank PLC (2) | | $ | 960,319 | | April 14, 2026 | | July 13, 2026 | Atlas Securitized Products, L.P. | | $ | 170,279 | | August 18, 2026 | | December 10, 2027 | Bank of America, N.A. | | $ | 117,545 | | May 20, 2026 | | June 9, 2027 | Royal Bank of Canada | | $ | 49,645 | | May 1, 2026 | | February 8, 2027 | JP Morgan Chase Bank, N.A. (2) | | $ | 32,551 | | June 30, 2026 | | July 6, 2026 | Morgan Stanley Bank, N.A. | | $ | 31,571 | | June 16, 2026 | | October 22, 2027 | BNP Paribas | | $ | 24,686 | | June 17, 2026 | | September 30, 2027 | Nomura Corporate Funding Americas | | $ | 19,266 | | June 9, 2026 | | August 4, 2026 | Mizuho Bank, Ltd. | | $ | 18,886 | | August 23, 2026 | | October 14, 2026 | Goldman Sachs Bank USA | | $ | 12,781 | | June 19, 2026 | | March 15, 2028 | Wells Fargo Bank, N.A. | | $ | 12,304 | | June 9, 2026 | | June 11, 2027 | Citibank, N.A. | | $ | 11,402 | | June 13, 2026 | | August 21, 2026 |
| (1) | The amount at risk includes the beneficial interests in Ginnie Mae MSRs, Fannie Mae MSRs, servicing advances and margin deposit assets pledged to serve as the collateral securing servicing asset facilities that issue Assets sold under agreements to repurchase and the term notes and term loans included in Notes payable secured by mortgage servicing assets. The facilities mature on various dates through December 10, 2027. The facility maturity date shown in this table represents a weighted average of those dates. |
| (2) | The facility maturity dates are shown as weighted averages. |
Principal-only stripped MBS | | | | | | Counterparty | | Amount at risk | | Maturity | | | (in thousands) | | | Bank of America, N.A. | | $ | 3,017 | | April 28, 2026 | JP Morgan Chase Bank, N.A. | | $ | 20,267 | | April 6, 2026 | Wells Fargo Bank, N.A. | | $ | 16,078 | | April 23, 2026 | Santander US Capital Markets LLC | | $ | 15,202 | | April 15, 2026 |
Mortgage Loan Participation Purchase and Sale Agreements Two of the borrowing facilities secured by loans held for sale are in the form of mortgage loan participation purchase and sale agreements. Participation certificates, each of which represents an undivided beneficial ownership interest in mortgage loans that have been pooled with Ginnie Mae, Freddie Mac, or Fannie Mae, are sold to a lender pending securitization of the mortgage loans and sale of the resulting securities. A commitment to sell the securities resulting from the pending securitization between the Company and a non-affiliate is also assigned to the lender at the time a participation certificate is issued. 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, that is based on a percentage of the purchase price. The holdback amount 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 agreements are summarized below: | | | | | | | | | Quarter ended March 31, | | | 2026 | | 2025 | | | | (dollars in thousands) | Average balance | | $ | 321,732 | | $ | 261,045 | Weighted average interest rate (1) | | | 4.99% | | | 5.64% | Total interest expense | | $ | 4,194 | | $ | 3,804 | Maximum daily amount outstanding | | $ | 699,793 | | $ | 511,846 |
| (1) | Excludes the effect of amortization of debt issuance costs totaling $234,000 and $172,000 for the quarters ended March 31, 2026 and 2025, respectively. |
| | | | | | | | | March 31, | | December 31, | | | 2026 | | 2025 | | | | (dollars in thousands) | Carrying value: | | | | | | | Unpaid principal balance | | $ | 691,316 | | $ | 697,087 | Unamortized debt issuance costs | | | (235) | | | (469) | | | $ | 691,081 | | $ | 696,618 | Weighted average interest rate | | | 4.91% | | | 4.94% | Fair value of loans pledged to secure mortgage loan participation purchase and sale agreements | | $ | 732,523 | | $ | 738,247 |
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