v3.26.1
INTEREST INCOME AND INTEREST EXPENSE (Tables)
 6 Months Ended
Jun. 30, 2026
Banking and Thrift, Interest [Abstract]  
Summary of Interest Income Recognition Methodology for Residential Investment Securities
The following table summarizes the interest income recognition methodology for Residential Securities:
 Interest Income Methodology
Agency 
Fixed-rate pass-through (1)
Effective yield (3)
Adjustable-rate pass-through (1)
Effective yield (3)
Multifamily (1)
Contractual Cash Flows
CMO (1)
Effective yield (3)
Reverse mortgages (2)
Prospective
Interest-only (2)
Prospective
Residential credit 
CRT (2)
Prospective
Non-QM (2)
Prospective
Prime (2)
Prospective
SBC (2)
Prospective
NPL/RPL (2)
Prospective
RTL (2)
Prospective
Prime jumbo interest-only (2)
Prospective
(1) Changes in fair value are recognized in Other comprehensive income (loss) in the accompanying Consolidated Statements of Comprehensive Income (Loss) for securities purchased prior to July 1, 2022. Effective July 1, 2022, changes in fair value are recognized in Net gains (losses) on investments and other in the accompanying Consolidated Statements of Comprehensive Income (Loss) for newly purchased securities.
(2) Changes in fair value are recognized in Net gains (losses) on investments and other in the accompanying Consolidated Statements of Comprehensive Income (Loss).
(3) Effective yield is recalculated for differences between estimated and actual prepayments and the amortized cost is adjusted as if the new effective yield had been applied since inception.
Components of Company's Interest Income and Interest Expense
The following table presents the components of the Company’s interest income and interest expense for the three and six months ended June 30, 2026 and 2025.
 For the Three Months Ended
For the Six Months Ended
 June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Interest income(dollars in thousands)
Agency securities$1,094,724 $875,937 $2,179,135 $1,696,119 
Residential credit securities30,679 36,853 62,101 77,060 
Residential mortgage loans (1)
674,055 467,959 1,270,844 894,014 
Commercial investment portfolio4,664 163 6,286 1,218 
Reverse repurchase agreements8,076 37,981 18,762 67,590 
Total interest income$1,812,198 $1,418,893 $3,537,128 $2,736,001 
Interest expense  
Repurchase agreements$846,551 $775,918 $1,679,498 $1,536,701 
Debt issued by securitization vehicles438,892 312,383 837,025 595,975 
Participations issued38,562 30,738 71,455 57,782 
U.S. Treasury securities sold, not yet purchased— 26,654 8,266 52,372 
Total interest expense$1,324,005 $1,145,693 $2,596,244 $2,242,830 
Net interest income$488,193 $273,200 $940,884 $493,171 
(1) Includes assets transferred or pledged to securitization vehicles.