Other Financing Liabilities, at Fair Value (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Activity Related to Financing Liability - MSRs Pledged

The following table presents the activity of the MSR related financing liabilities, at fair value that are classified as Level 3 within the valuation hierarchy.


MSR related financing liabilities - Fair value	Three Months Ended March 31,

	2026		2025
Beginning balance	$	842.0	$	846.9





MSR transfers	9.6		6.7




ESS settlement (2)	(20.8)		—
Derecognition of financing liability (1)	(17.2)		—

Fair value (gain) loss
Changes in fair value due to inputs and assumptions	(0.2)		(1.0)


Realization of cash flows	(18.7)		(17.0)
Total fair value (gain) loss	(18.9)		(18.0)
Ending balance	$	794.6	$	835.5

(1)On March 1, 2026, we derecognized a portion of the Rithm Pledged MSR liability with a UPB of $1.2 billion as MSR sale accounting criteria were met upon our transfer of title to the MSRs in connection with Rithm’s exercise of its termination right of the agreement with Onity disclosed below.

(2)On January 5, 2026 we completed a sale of certain owned MSRs, with subservicing retained with a UPB of $1.3 billion. The sale proceeds were used to settle the related outstanding ESS financing liability. Refer to Note 7 – Mortgage Servicing.

Schedule of Assets, Liabilities Related to MSR Transfer Agreements

The following table presents MSR related financing liabilities carried at fair value which include pledged MSR liabilities recorded in connection with MSR transfers, subservicing retained, that do not qualify for sale accounting, and MSR excess servicing spread (ESS) financing liability carried at fair value pursuant to our election of the fair value option for risk management purposes.


	Outstanding Balance
Borrowing Type	March 31, 2026		December 31, 2025




Pledged MSR liability, at fair value (1) (3)	$	541.2	$	573.2

ESS financing liability, at fair value (2)	253.4		268.8
Total MSR related financing liabilities, at fair value	$	794.6	$	842.0

(1)MSRs transferred in transactions which do not qualify for sale accounting treatment. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and the related financing liability (referred as Pledged MSR liability) on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. The fair value of the Pledged MSR liability may differ from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is contractually retained by OMC or other contractual cash flows.

(2)Consists of the obligation to remit to third parties a specified percentage of future servicing fee collections (excess servicing spread) on reference pools of mortgage loans, which we are entitled to as owner of the related MSRs. The servicing spread remittance is reported in Pledged MSR liability expense and fair value gains and losses of the ESS financing liability are reported in MSR valuation adjustments, net - See Note 9 – MSR Valuation Adjustments, Net.

(3)Includes $84.2 million fair value and $6.9 billion UPB related to Rithm at March 31, 2026 subject to termination notice - see below.

Schedule of Results of Operations in Connection With MSR Transfer Agreements that Do Not Qualify for Sale Accounting


	Three Months Ended March 31,
	2026		2025

Servicing fees collected on transferred MSRs	$	31.9	$	32.4
Less: Subservicing fee retained by Onity	(5.1)		(5.9)
Ancillary fee/income and other settlement (including expense reimbursement)	3.0		2.3
Transferred MSR net servicing fee remittance	29.7		28.8
ESS servicing spread remittance	12.9		13.1
Pledged MSR liability expense	$	42.6	$	41.9

Three Months Ended March 31,