v3.26.1
INVESTMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Schedule of Debt Securities, Available-for-Sale Below is a disaggregated presentation of our investments in loans and securities, including fair value adjustments, accrued interest income, and net of the allowance for credit losses, as applicable (in thousands):
 Carrying Value
June 30, 2026December 31, 2025
Investments in securities, available for sale
Securitization notes, available for sale$494,087 $395,717 
Securitization certificates, available for sale476,991 471,661 
Total971,078 867,378 
Investments in loans and securities, under the fair value option
Securitization notes10,420 12,473 
Securitization certificates46,780 60,840 
Loans
11,840 4,578 
Total69,040 77,891 
Total investments in loans and securities (1)
$1,040,118 $945,269 
(1) $542.1 million and $504.3 million were held by the Company for regulatory risk retention purposes as of June 30, 2026 and December 31, 2025, respectively.
The amortized cost, gross unrealized gains and losses, and fair value of AFS securities as of June 30, 2026 and December 31, 2025 were as follows (in thousands):
As of June 30, 2026
Investments in securities, available for sale(2):
Amortized
Cost		Gross
Unrealized
Gains (1)		Gross
Unrealized
Losses (1)		Allowance for Credit LossesFair Value
Securitization notes$486,235 $8,064 $(212)$— $494,087 
Securitization certificates771,613 22,585 (3,514)(313,693)476,991 
Total$1,257,848 $30,649 $(3,726)$(313,693)$971,078 

As of December 31, 2025
Investments in securities, available for sale(2):
Amortized
Cost		Gross
Unrealized
Gains (1)		Gross
Unrealized
Losses (1)		Allowance for Credit LossesFair Value
Securitization notes$395,216 $970 $(469)$— $395,717 
Securitization certificates874,170 6,489 (23,120)(385,878)471,661 
Total$1,269,386 $7,459 $(23,589)$(385,878)$867,378 
(1) The difference between accumulated other comprehensive income (“AOCI”) and gross unrealized gains and losses represents capitalized transaction costs which have been reclassified to OCI and are amortized to interest income over the average life of the investments.
(2) Includes accrued interest receivables of $41.1 million and $25.8 million as of June 30, 2026 and December 31, 2025, respectively.
The following tables set forth the amortized cost and fair value of investments in AFS securities by contractual maturities, as of the date indicated (in thousands):
As of June 30, 2026
Within 1 yearGreater than 1 year, less than or equal to 5 yearsTotal
Investments in securities, available for sale (1):
Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Securitization notes$9,366 $9,468 $476,869 $484,619 $486,235 $494,087 
Securitization certificates54,839 17,366 716,774 459,625 771,613 476,991 
Total
$64,205 $26,834 $1,193,643 $944,244 $1,257,848 $971,078 

As of December 31, 2025
Within 1 yearGreater than 1 year, less than or equal to 5 yearsTotal
Investments in securities, available for sale (1):
Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Securitization notes$15,279 $15,602 $379,938 $380,115 $395,217 $395,717 
Securitization certificates42,698 13,495 831,471458,166874,169471,661
Total
$57,977 $29,097 $1,211,409 $838,281 $1,269,386 $867,378 
(1) Based on expected maturity date cash flows.
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following tables set forth the fair value and gross unrealized losses on investments in AFS securities without an allowance for credit losses aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position, as of the dates indicated (in thousands):

As of June 30, 2026
Less than or equal to 1 yearGreater than 1 yearTotal
Investments in securities, available for sale:Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Securitization notes$15,254 $(108)$4,123 $(104)$19,377 $(212)

As of December 31, 2025
Less than or equal to 1 yearGreater than 1 yearTotal
Investments in securities, available for sale:Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Securitization notes$36,797 $(442)$5,504 $(27)$42,301 $(469)
Schedule of Realized Gain (Loss)
The following table sets forth gross proceeds and related investment gains and losses, as well as the allowance for credit losses of AFS securities, for the periods indicated (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2026202520262025
Investments in securities, available for sale:
Proceeds from sales/maturities/prepayments$144,628 $70,539 $328,393 $128,418 
Gross investment gains from sales/maturities/prepayments$(45,266)$(2,796)$(123,202)$(8,690)
Gross investment losses from sales/maturities/prepayments$60,553 $— $146,257 $— 
Reductions (additions) to allowance for credit losses$22,448 $(28,460)$72,185 $14,972 
Schedule of Debt Securities, Available-for-Sale, Allowance for Credit Loss
The following table sets forth the activity in the allowance for credit losses for investments in AFS securitization certificates, as of the dates indicated (in thousands):

Three Months Ended June 30,
Six Months Ended June 30,
Investments in securitization certificates, available for sale:
2026202520262025
Balance, beginning of period$(336,141)$(462,436)$(385,878)$(508,741)
Additions to allowance for credit losses on securities without a previous allowance(8,255)(22,594)(8,957)(46,120)
Reductions from sales/maturities/prepayments
40,269 — 134,387 78,323 
Additions to allowance for credit losses on securities with a previous allowance, net of reductions(9,566)(5,866)(53,245)(14,358)
Balance, end of period$(313,693)$(490,896)$(313,693)$(490,896)
Schedule of Investments in Loans and Securities
The following table presents activities of investments in loans and securities for which we elected the fair value option (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
Investments in loans and securities under the fair value option
2026202520262025
Balance, beginning of period$80,105 $— $77,891 $— 
Purchases7,766 21,026 16,047 21,026 
Principal and interest payments
(33,235)— (55,405)— 
Gain on sale of investments in loans and securities
3,191 — 13,560 — 
Accrued interest
2,245 — 4,844 — 
Non-cash transactions
1,556 — (94)— 
Change in fair value
7,412 11,862 12,197 11,862 
Balance, end of period$69,040 $32,888 $69,040 $32,888 
The following tables summarize the activity related to the fair value of the investments in loans and securities available for sale (Level 3 only) for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Balance, beginning of period$861,853 $641,617 $877,554 $663,189 
Transfer from Level 2(37,284)— (37,284)— 
Additions (1)210,081 182,259 368,204 248,978 
Cash received(148,922)(60,706)(300,906)(108,016)
Gain on sale of Investments in loans and securities48,764 2,699 114,678 8,593 
Loss on sale of Investments in loans and securities(60,500)— (146,203)— 
Change in accrued interest on investments20,563 5,659 38,210 8,937 
Non-cash transactions1,556 — (94)— 
Change in fair value (OCI)20,831 (5,849)43,379 (21,795)
Credit-related impairment loss, net of recoveries(30,224)(28,944)(70,820)(63,151)
Balance, end of period$886,718$736,735$886,718$736,735
(1) Exclude capitalized transaction costs which have been reclassified to OCI and are amortized to interest income over the average life of the investments.
Schedule of Equity Method Investments
The following investments, including those accounted for under the equity method, are included within equity method and other investments in the unaudited condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025 (in thousands):

 Carrying Value
June 30, 2026December 31, 2025
Investments in Pagaya SmartResi F1 Fund, LP (1)$7,305 $8,324 
Other (2)3,998 5,194 
Total (3)$11,303 $13,518 

(1) The Company owns approximately 5.4% and is the general partner of Pagaya SmartResi F1 Fund LP.
(2) Represents the Company’s proprietary investments.
(3) Income (loss) from these investments is included in investment (loss) income, net in the unaudited condensed consolidated statements of income.