The Company determined that the special purpose entities created in connection with its securitizations are VIEs. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary, which is the entity that, through its variable interests, has both the power to direct the activities that significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. From time to time, the Company may purchase securities that were previously issued by consolidated trusts. Under these circumstances, we extinguish the outstanding debt and recognize gains or losses for the difference between the consideration paid and the carrying value of the debt. For the three months ended March 31, 2026 and 2025, the Company recognized gains of $21.3 million and $11.9 million, respectively, on extinguishment of debt related to these purchases.

The Company securitizes certain of its interests in non-agency reverse mortgage loans and HECM buyouts. The transactions provide investors with the ability to invest in a pool of reverse mortgage loans secured by residential properties. The transactions provide the Company with access to liquidity for these assets, ongoing servicing fees, and potential residual returns. The principal and interest on the outstanding certificates are paid using the cash flows from the underlying reverse mortgage loans, which serve as collateral for the debt. The securitizations are callable at or following the optional redemption date as defined in the respective indenture agreements.

The Company has a financing agreement which is structured as a securitization. The special purpose entity created for the purposes of the financing is a VIE that the Company consolidates, as the Company is the primary beneficiary. The non-agency reverse mortgage loans included in this securitization are recorded in Loans held for investment, at fair value, or in loans held for sale, at fair value, which is included in Other assets, net, and the associated debt is recorded in Other financing lines of credit in the Condensed Consolidated Statements of Financial Condition.

During the three months ended March 31, 2026 and 2025, the Company redeemed outstanding securitized notes related to certain non-agency reverse mortgage loan and HECM buyout securitizations. As part of the redemptions, the Company paid off nonrecourse debt with outstanding balances of $0.8 billion and $0.3 billion for the three months ended March 31, 2026 and 2025, respectively. The notes were paid off at par.

In our capacity as servicer of the securitized loans, the Company retains the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance. The Company also retains certain beneficial interests in these trusts which provide exposure to potential gains and losses based on the performance of the trust. As the Company has both the power to direct the activities that significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE, the definition of a primary beneficiary is met, and the trusts are consolidated by the Company.

Certain obligations may arise from the agreements associated with transfers of loans. Under these agreements, the Company may be obligated to repurchase the loans or otherwise indemnify or reimburse the investor for losses incurred due to material breach of contractual representations and warranties. There were no charge-offs associated with these transferred mortgage loans related to the standard securitization representations and warranties obligations for the three months ended March 31, 2026 and 2025.

The following table presents the assets and liabilities of the Company’s consolidated VIEs, which are included in the Condensed Consolidated Statements of Financial Condition, and excludes intercompany balances, except for retained bonds and beneficial interests (in thousands):


	March 31, 2026		December 31, 2025
Assets
Restricted cash	$	258,964	$	227,489
Loans held for investment, subject to nonrecourse debt, at fair value	10,769,209		9,630,812
Loans held for investment, at fair value	113,084		432,724
Other assets, net (includes $64,197 and $11,838 at fair value)	130,181		80,738
Total assets	$	11,271,438	$	10,371,763

Liabilities
Nonrecourse debt, at fair value	$	10,997,895	$	9,806,836
Other financing lines of credit	122,710		313,699
Payables and other liabilities	1,811		3,784
Total VIE liabilities	11,122,416		10,124,319
Retained bonds and beneficial interests eliminated in consolidation	(547,061)		(447,343)
Total consolidated liabilities	$	10,575,355	$	9,676,976

The Company securitized certain of its interests in non-agency reverse mortgage loans and in agency-eligible residential mortgage loans. The transactions provided investors with the ability to invest in a pool of mortgage loans secured by residential properties and provided the Company with access to liquidity for these assets and ongoing service fees. The Company’s beneficial interest in the securitizations is limited to a 5% retained interest in the trusts. The Company determined that the securitization structures meet the definition of a VIE and concluded that it does not hold a significant variable interest in the securitizations and that the contractual role as servicer is not a variable interest. The transfers of the loans to the VIEs were determined to be sales, and the Company derecognized the mortgage loans and did not consolidate the trusts.

The Company’s continuing involvement with and exposure to loss from the VIEs includes the carrying value of the retained bonds, the servicing asset recognized in the sale of the loans, servicing advances in the role as servicer, and obligations under representations and warranties contained in the loan sale agreements. Creditors of the VIEs have no recourse to the Company’s assets or general credit. The underlying performance of the mortgage loans transferred has a direct impact on the fair values and cash flows of the beneficial interests held and the servicing asset recognized.

The Company securitized certain non-agency reverse mortgage loans where its beneficial interest in the securitization was limited to a 5% retained interest in the trust. The Company determined that this securitization structure met the definition of a VIE and concluded that it did not hold a significant variable interest in the securitization and the Company did not have the power to direct the activities that most significantly affect the economic performance of the VIE. However, the transfer of the loans to the VIE was determined not to be a sale. As such, the Company continued to recognize the loans and recognized a nonrecourse liability for the proceeds received from third parties for the transfer of the loans. Bonds issued in the securitization that were retained by the Company were not recognized.

During the three months ended March 31, 2026, the Company acquired certain beneficial interests and other rights in previously unconsolidated VIEs. As a result, the Company reassessed its involvement with the VIEs and determined that it is the primary beneficiary, as it has both the power to direct the activities that significantly impact the VIEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. Accordingly, the Company began consolidating the VIEs upon acquisition of these interests. In addition, during the three months ended March 31, 2026, the Company redeemed the outstanding securitized notes issued by the VIEs.


	December 31, 2025
	Carrying value
	Assets		Liabilities		Maximum Exposure to Loss		Total Assets in VIEs
Transfers of loans - sale treatment
Retained interests	$	43,943	$	—	$	43,943	$	879,314
Transfer of loans - secured borrowing
Loans and nonrecourse liability	395,364		376,423		18,941		395,364
Total	$	439,307	$	376,423	$	62,884	$	1,274,678