Fair Value (Tables)
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3 Months Ended |
Mar. 31, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and the details of the valuation models, key inputs to those models, and significant assumptions utilized. Within the assumption tables presented, not meaningful (“NM”) refers to a range of inputs that is too broad to provide meaningful information to the user or to an input that has no range and consists of a single data point. Weighted averages are calculated by weighting each input by the relative outstanding balance of the related financial instrument. | | | | | | | | | | | | | Instrument | Valuation Techniques | Classification of Fair Value Hierarchy | | Assets | Loans held for investment, subject to HMBS related obligations(1) | | HECM loans - securitized into Ginnie Mae HMBS | These loans are valued utilizing a present value methodology that discounts estimated future cash flows over the life of the loan portfolio using weighted average remaining life (“WAL”), conditional prepayment rate (“CPR”), loss frequency, loss severity, borrower draw rate, and discount rate assumptions. | Level 3 | Loans held for investment, subject to nonrecourse debt(1) | | Non-agency reverse mortgage loans - securitized | These loans are valued utilizing a present value methodology that discounts estimated future cash flows over the life of the loan portfolio using WAL, loan-to-value (“LTV”), CPR, loss severity, home price appreciation (“HPA”), and discount rate assumptions, inclusive of the credit spread component. | Level 3 | | HECM buyouts - securitized (performing) | These loans are valued utilizing a present value methodology that discounts estimated future cash flows over the life of the loan portfolio using WAL, CPR, loss severity, and discount rate assumptions. | Level 3 | | HECM buyouts - securitized (nonperforming) | These loans are valued utilizing a present value methodology that discounts estimated future cash flows over the life of the loan portfolio using WAL, CPR, loss frequency, loss severity, and discount rate assumptions. | Level 3 | (1) The Company aggregates loan portfolios based on the underlying securitization trust and values these loans using these aggregated pools. The range of inputs provided is based on the range of inputs utilized for each securitization trust. | | Loans held for investment | | Non-agency reverse mortgage loans | These loans are valued utilizing a present value methodology that discounts estimated future cash flows over the life of the loan portfolio using WAL, LTV, CPR, loss severity, HPA, and discount rate assumptions, inclusive of the credit spread component. | Level 3 |
| | | | | | | | | | | | | HECM buyouts (nonperforming) | The fair value of nonperforming repurchased loans is based on expected cash proceeds from the liquidation of the underlying properties and expected claim proceeds from HUD. These loans are valued utilizing a present value methodology that discounts estimated future cash flows over the life of the loan portfolio using WAL, CPR, loss frequency, loss severity, and discount rate.
Termination proceeds are adjusted for expected loss frequencies and severities to arrive at net proceeds that will be provided upon final resolution, including assignments to the FHA. Historical experience is utilized to estimate the loss rates resulting from scenarios where FHA insurance proceeds are not expected to cover all principal and interest outstanding and, as servicer, the Company is exposed to losses upon resolution of the loan. | Level 3 | | Other assets | | Loans held for sale | The reverse mortgage loans are valued based on an expected margin on sale. | Level 3 | | Retained bonds | Management obtains third-party valuations to assess the reasonableness of the fair value calculations provided by the internal valuation model. The primary assumptions utilized include WAL and discount rate. | Level 3 | | Liabilities | | HMBS related obligations | | HMBS related obligations | The fair value is based on the net present value of projected cash flows over the estimated life of the liability. The fair value of the HMBS related obligations also includes the consideration required by a market participant to transfer the HECM and HMBS servicing obligations, including exposure resulting from shortfalls in FHA insurance proceeds as well as assumptions that it believes a market participant would consider in valuing the liability, including, but not limited to, assumptions for repayment, costs to transfer servicing obligations, shortfalls in FHA insurance proceeds, and discount rates. The significant unobservable inputs used in the measurement include WAL, CPR, and discount rates. | Level 3 | | Nonrecourse debt | | Non-agency reverse mortgage loan securitizations and performing/nonperforming HECM securitizations | The fair value is based on the net present value of projected cash flows over the estimated life of the liability. The significant unobservable inputs used in the measurement include WAL, CPR, and discount rates, inclusive of the credit spread component. | Level 3 | | Convertible Notes | | Convertible Notes | The Company’s unsecured convertible promissory notes (the “Convertible Notes”) are measured based on the closing market price of the Company’s publicly-traded stock on the applicable date of the Condensed Consolidated Statements of Financial Condition. | Level 2 | | Repurchase Agreement obligation | | Repurchase Agreement obligation | The Repurchase Agreement obligation was measured based on the total consideration payable upon the second closing of the Repurchase, which occurred on February 27, 2026. Refer to Note 14 - Related Party Transactions for additional information. | Level 2 |
| | | | | | | | | | | | | Deferred purchase price liabilities | | Tax Receivable Agreement (“TRA”) obligation | The fair value is derived through the use of a discounted cash flow (“DCF”) model. The significant unobservable assumptions used in the DCF include the ability to utilize tax attributes based on current tax forecasts, a constant U.S. federal income tax rate, and a discount rate. | Level 3 | | AAG/Bloom | These liabilities were measured based on the estimated amount of indemnified claims associated with the acquisition of certain assets and liabilities from American Advisors Group, now known as Bloom Retirement Holdings Inc. (“AAG/Bloom”), as well as the closing market price of the Company’s publicly-traded stock as of December 31, 2025. No such liabilities existed as of March 31, 2026. | Level 3 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Instrument / Unobservable Inputs | | Range | | Weighted Average | | Range | | Weighted Average | | Assets | | Loans held for investment, subject to HMBS related obligations | | WAL (in years) | | NM | | 3.0 | | NM | | 3.1 | | CPR | | NM | | 21.2 | % | | NM | | 20.9 | % | | Loss frequency | | NM | | 4.4 | % | | NM | | 4.5 | % | | Loss severity | | 5.6% - 13.6% | | 5.6 | % | | 5.8% - 15.8% | | 6.0 | % | | Average draw rate | | NM | | 1.0 | % | | NM | | 1.1 | % | | Discount rate | | NM | | 4.8 | % | | NM | | 4.7 | % | | Loans held for investment, subject to nonrecourse debt: | | Non-agency reverse mortgage loans - securitized | | | | WAL (in years) | | NM | | 10.0 | | NM | | 9.8 | | LTV | | NM | | 50.2 | % | | NM | | 49.9 | % | | CPR | | NM | | 14.9 | % | | NM | | 15.0 | % | | Loss severity | | NM | | 10.0 | % | | NM | | 10.0 | % | | HPA | | (3.3)% - 5.6% | | 3.8 | % | | (6.8)% - 5.3% | | 3.7 | % | | Discount rate | | NM | | 6.4 | % | | NM | | 6.3 | % | | HECM buyouts - securitized (performing) | | | | | | WAL (in years) | | NM | | 6.9 | | NM | | 6.9 | | CPR | | NM | | 16.3 | % | | NM | | 16.3 | % | | Loss severity | | 5.6% - 13.6% | | 8.0 | % | | 6.0% - 13.3% | | 8.4 | % | | Discount rate | | NM | | 7.3 | % | | NM | | 7.3 | % | | HECM buyouts - securitized (nonperforming) | | | | | | WAL (in years) | | NM | | 1.5 | | NM | | 1.5 | | CPR | | NM | | 41.0 | % | | NM | | 41.5 | % | | Loss frequency | | NM | | 45.9 | % | | NM | | 45.5 | % | | Loss severity | | 5.6% - 13.6% | | 6.0 | % | | 6.0% - 13.3% | | 6.8 | % | | Discount rate | | NM | | 7.2 | % | | NM | | 6.8 | % | | Loans held for investment: | | Non-agency reverse mortgage loans | | | | | | | | WAL (in years) | | NM | | 11.6 | | NM | | 11.1 | | LTV | | NM | | 38.1 | % | | NM | | 43.2 | % | | CPR | | NM | | 15.1 | % | | NM | | 14.9 | % | | Loss severity | | NM | | 10.0 | % | | NM | | 10.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Instrument / Unobservable Inputs | | Range | | Weighted Average | | Range | | Weighted Average | | HPA | | (3.3)% - 5.6% | | 3.6 | % | | (6.8)% - 5.3% | | 3.6 | % | | Discount rate | | NM | | 6.4 | % | | NM | | 6.3 | % | | HECM buyouts (nonperforming) | | | | | | | | | | WAL (in years) | | NM | | 1.3 | | NM | | 1.3 | | CPR | | NM | | 49.9 | % | | NM | | 45.4 | % | | Loss frequency | | NM | | 60.5 | % | | NM | | 42.3 | % | | Loss severity | | 5.6% - 14.2% | | 14.2 | % | | 6.0% - 13.3% | | 11.2 | % | | Discount rate | | NM | | 7.2 | % | | NM | | 6.8 | % | | Other assets: | | Retained bonds | | | | | | | | | | WAL (in years) | | NM | | 4.7 | | NM | | 3.0 | | Discount rate | | (1.8)% - 13.7% | | 8.0 | % | | (1.7)% - 15.3% | | 7.1 | % | | Liabilities | | HMBS related obligations | | WAL (in years) | | NM | | 3.8 | | NM | | 3.9 | | CPR | | NM | | 25.2 | % | | NM | | 24.8 | % | | Discount rate | | NM | | 4.7 | % | | NM | | 4.6 | % | | Nonrecourse debt: | | Non-agency reverse mortgage loan securitizations | | | | | | | | WAL (in years) | | 0.1 - 10.4 | | 6.1 | | 0.1 - 10.5 | | 6.4 | | CPR | | NM | | 24.8 | % | | NM | | 21.8 | % | | Discount rate | | NM | | 6.1 | % | | NM | | 6.0 | % | | Performing/nonperforming HECM securitizations | | | | | | | | WAL (in years) | | 2.1 - 2.3 | | 2.2 | | NM | | 1.2 | | CPR | | 17.8% - 20.6% | | 19.1 | % | | NM | | 57.4 | % | | Discount rate | | NM | | 5.3 | % | | NM | | 5.4 | % | | Deferred purchase price liabilities: | | TRA obligation | | | | | | | | | | Discount rate | | NM | | 30.3 | % | | NM | | 26.6 | % |
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| Schedule of Recognized Assets and Liabilities that are Measured at Fair Value on a Recurring Basis |
The following tables present assets and liabilities that are measured at fair value on a recurring basis (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | Total Fair Value | | Level 1 | | Level 2 | | Level 3 | | Assets | | | | | | | | | Loans held for investment, subject to HMBS related obligations | $ | 19,321,265 | | | $ | — | | | $ | — | | | $ | 19,321,265 | | | Loans held for investment, subject to nonrecourse debt | 10,769,209 | | | — | | | — | | | 10,769,209 | | | Loans held for investment | 454,245 | | | — | | | — | | | 454,245 | | | Other assets: | | | | | | | | | Loans held for sale | 85,587 | | | — | | | 1,720 | | | 83,867 | | | Retained bonds | 34,067 | | | — | | | — | | | 34,067 | | | Total assets | $ | 30,664,373 | | | $ | — | | | $ | 1,720 | | | $ | 30,662,653 | | | | | | | | | | | Liabilities | | | | | | | | | HMBS related obligations | $ | 19,087,650 | | | $ | — | | | $ | — | | | $ | 19,087,650 | | | Nonrecourse debt | 10,450,834 | | | — | | | — | | | 10,450,834 | | | Convertible Notes | 36,889 | | | — | | | 36,889 | | | — | | | | | | | | | | | | | | | | | | | TRA obligation | 4,524 | | | — | | | — | | | 4,524 | | | Total liabilities | $ | 29,579,897 | | | $ | — | | | $ | 36,889 | | | $ | 29,543,008 | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Total Fair Value | | Level 1 | | Level 2 | | Level 3 | | Assets | | | | | | | | | Loans held for investment, subject to HMBS related obligations | $ | 19,135,403 | | | $ | — | | | $ | — | | | $ | 19,135,403 | | | Loans held for investment, subject to nonrecourse debt | 10,026,177 | | | — | | | — | | | 10,026,177 | | | Loans held for investment | 870,081 | | | — | | | — | | | 870,081 | | | Other assets: | | | | | | | | | Loans held for sale | 37,461 | | | — | | | 1,338 | | | 36,123 | | | Retained bonds | 38,685 | | | — | | | — | | | 38,685 | | | Total assets | $ | 30,107,807 | | | $ | — | | | $ | 1,338 | | | $ | 30,106,469 | | | | | | | | | | | Liabilities | | | | | | | | | HMBS related obligations | $ | 18,912,226 | | | $ | — | | | $ | — | | | $ | 18,912,226 | | | Nonrecourse debt | 9,736,493 | | | — | | | — | | | 9,736,493 | | | Convertible Notes | 53,800 | | | — | | | 53,800 | | | — | | | Repurchase Agreement obligation | 40,595 | | | — | | | 40,595 | | | — | | | Deferred purchase price liabilities: | | | | | | | | | AAG/Bloom | 8,646 | | | — | | | — | | | 8,646 | | | TRA obligation | 3,901 | | | — | | | — | | | 3,901 | | | Total liabilities | $ | 28,755,661 | | | $ | — | | | $ | 94,395 | | | $ | 28,661,266 | |
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| Schedule of Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation |
The following tables present Level 3 assets and liabilities that are measured at fair value on a recurring basis (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Assets | | Three months ended March 31, 2026 | Loans held for investment | | Loans held for investment, subject to nonrecourse debt | | Loans held for sale | | Retained bonds | | Beginning balance | $ | 20,005,484 | | | $ | 10,026,177 | | | $ | 36,123 | | | $ | 38,685 | | | Total gain (loss) included in earnings | 450,670 | | | 81,456 | | | 3,984 | | | (198) | | | Purchases, settlements, and transfers: | | | | | | | | | Purchases and additions | 857,672 | | | 6,661 | | | 43,760 | | | — | | | Sales and settlements | (585,580) | | | (298,082) | | | — | | | (659) | | | Transfers in (out) between categories | (952,736) | | | 952,997 | | | — | | | (3,761) | | | Ending balance | $ | 19,775,510 | | | $ | 10,769,209 | | | $ | 83,867 | | | $ | 34,067 | |
| | | | | | | | | | | | | | | | | | | | | Assets | | Three months ended March 31, 2025 | Loans held for investment | | Loans held for investment, subject to nonrecourse debt | | | | Retained bonds | | Beginning balance | $ | 19,190,065 | | | $ | 9,288,403 | | | | | $ | 40,407 | | | Total gain included in earnings | 382,169 | | | 257,903 | | | | | 988 | | | Purchases, settlements, and transfers: | | | | | | | | | Purchases and additions | 810,325 | | | 6,900 | | | | | — | | | Sales and settlements | (620,532) | | | (242,557) | | | | | (1,061) | | | Transfers in (out) between categories | (318,900) | | | 319,501 | | | | | — | | | Ending balance | $ | 19,443,127 | | | $ | 9,630,150 | | | | | $ | 40,334 | |
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| Schedule of Fair Value Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation |
The following tables present Level 3 assets and liabilities that are measured at fair value on a recurring basis (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Assets | | Three months ended March 31, 2026 | Loans held for investment | | Loans held for investment, subject to nonrecourse debt | | Loans held for sale | | Retained bonds | | Beginning balance | $ | 20,005,484 | | | $ | 10,026,177 | | | $ | 36,123 | | | $ | 38,685 | | | Total gain (loss) included in earnings | 450,670 | | | 81,456 | | | 3,984 | | | (198) | | | Purchases, settlements, and transfers: | | | | | | | | | Purchases and additions | 857,672 | | | 6,661 | | | 43,760 | | | — | | | Sales and settlements | (585,580) | | | (298,082) | | | — | | | (659) | | | Transfers in (out) between categories | (952,736) | | | 952,997 | | | — | | | (3,761) | | | Ending balance | $ | 19,775,510 | | | $ | 10,769,209 | | | $ | 83,867 | | | $ | 34,067 | |
| | | | | | | | | | | | | | | | | | | Liabilities | | Three months ended March 31, 2026 | HMBS related obligations | | Nonrecourse debt | | Deferred purchase price liabilities | | Beginning balance | $ | (18,912,226) | | | $ | (9,736,493) | | | $ | (12,547) | | | Total gain (loss) included in earnings | (327,169) | | | (68,864) | | | 2,232 | | | Purchases, settlements, and transfers: | | | | | | | Purchases and additions | (497,572) | | | (1,694,792) | | | — | | | Settlements | 649,317 | | | 1,045,554 | | | 5,791 | | | Transfers out between categories | — | | | 3,761 | | | — | | | Ending balance | $ | (19,087,650) | | | $ | (10,450,834) | | | $ | (4,524) | |
| | | | | | | | | | | | | | | | | | | Liabilities | | Three months ended March 31, 2025 | HMBS related obligations | | Nonrecourse debt | | Deferred purchase price liabilities | | Beginning balance | $ | (18,444,370) | | | $ | (8,954,068) | | | $ | (16,684) | | | Total gain (loss) included in earnings | (295,682) | | | (152,909) | | | 2,331 | | | Purchases, settlements, and transfers: | | | | | | | Purchases and additions | (466,008) | | | (780,901) | | | — | | | Settlements | 615,703 | | | 724,479 | | | 2,206 | | | Ending balance | $ | (18,590,357) | | | $ | (9,163,399) | | | $ | (12,147) | |
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| Schedule of Fair Value Option, Disclosures |
The following table presents the fair value and the unpaid principal balance (“UPB”) of these financial assets and liabilities (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Fair Value | | UPB | | Fair Value | | UPB | | Assets | | | | | | | | | Loans held for investment, subject to HMBS related obligations | $ | 19,321,265 | | | $ | 18,056,054 | | | $ | 19,135,403 | | | $ | 17,983,144 | | | Loans held for investment, subject to nonrecourse debt | 10,769,209 | | | 10,284,554 | | | 10,026,177 | | | 9,567,732 | | Loans held for investment(1) | 454,245 | | | 421,049 | | | 870,081 | | | 790,342 | | | Other assets: | | | | | | | | | Loans held for sale | 85,587 | | | 79,664 | | | 37,461 | | | 34,515 | | | Liabilities | | | | | | | | | HMBS related obligations | 19,087,650 | | | 18,056,054 | | | 18,912,226 | | | 17,983,144 | | | Nonrecourse debt | 10,450,834 | | | 10,728,087 | | | 9,736,493 | | | 9,960,524 | | | Convertible Notes | 36,889 | | | 40,000 | | | 53,800 | | | 40,000 | |
(1) Loans held for investment include certain loans that were greater than 90 days past due and on non-accrual status. These loans had a fair value of $5.2 million and a UPB of $6.0 million as of March 31, 2026, compared to a fair value of $6.1 million and a UPB of $7.0 million as of December 31, 2025. The following table presents the composition and the outstanding UPB of the reverse mortgage loan portfolio serviced by the Company (in thousands): | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Loans held for investment, subject to HMBS related obligations | | $ | 18,056,054 | | | $ | 17,983,144 | | | | | | | | Loans held for investment, subject to nonrecourse debt: | | | | | | Non-agency reverse mortgages | | 9,555,033 | | | 8,887,778 | | | Performing HECM buyouts | | 266,648 | | | 251,051 | | | Nonperforming HECM buyouts | | 462,873 | | | 428,903 | | | Total loans held for investment, subject to nonrecourse debt | | 10,284,554 | | | 9,567,732 | | | | | | | | Loans held for investment: | | | | | | Non-agency reverse mortgages | | 225,348 | | | 614,515 | | HECM loans not securitized(1) | | 133,471 | | | 103,825 | | Unpoolable HECM loans(2) | | 56,274 | | | 64,983 | | Total loans held for investment(3) | | 415,093 | | | 783,323 | | | | | | | | Other assets: | | | | | Loans held for sale(3) | | 77,460 | | | 32,761 | | | | | | | | Total owned loan portfolio | | 28,833,161 | | | 28,366,960 | | | Loans reclassified as government guaranteed receivable | | 50,817 | | | 50,922 | | | Loans serviced for others | | 512,116 | | | 590,192 | | | Total serviced loan portfolio | | $ | 29,396,094 | | | $ | 29,008,074 | |
(1) HECM loans not securitized primarily represent newly originated loans and poolable tails. (2) Unpoolable HECM loans primarily represent loans that have reached 98% of their maximum claim amount (“MCA”). (3) As of March 31, 2026 and December 31, 2025, there was $422.3 million and $753.2 million, respectively, in UPB in loans pledged as collateral for financing lines of credit.
The following table presents our owned loan portfolio by mortgage rate type (in thousands): | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Adjustable rate loans | | $ | 20,927,395 | | | $ | 20,662,839 | | | Fixed rate loans | | 7,905,766 | | | 7,704,121 | | | Total owned loan portfolio | | $ | 28,833,161 | | | $ | 28,366,960 | |
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| Schedule of Carrying Value and Fair Value of Notes Payable |
The following table presents the amortized cost and fair value of notes payable (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | | Senior Secured Notes | $ | 129,876 | | | $ | 147,469 | | | $ | 126,089 | | | $ | 149,620 | | | Exchangeable Secured Notes | 131,046 | | | 157,297 | | | 130,040 | | | 178,428 | | | LFH Promissory Note | 20,000 | | | 20,000 | | | 20,000 | | | 20,000 | | | Total notes recorded at amortized cost | 280,922 | | | $ | 324,766 | | | 276,129 | | | $ | 348,048 | | | Convertible Notes, recorded at fair value | 36,889 | | | | | 53,800 | | | | | Total notes payable | $ | 317,811 | | | | | $ | 329,929 | | | |
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