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Loans Held for Investment
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Loans Held for Investment Loans Held for Investment
The Loans held for investment are comprised primarily of seasoned reperforming residential mortgages. Additionally, it includes jumbo prime loans, Investor Loans, and RTLs.

The Investor Loans are loans to individuals securing non-primary residences as well as to individuals or businesses who rent out the residential properties secured by such loans. The Company purchases qualified mortgages, or QM, and non-qualified mortgages, or Non-QM, Investor Loans and securitizes them under its loan securitization program. The RTLs are loans to
businesses that are secured by real property which will be renovated by the borrower. The RTLs tend to be short duration, often less than one year, and generally the coupon rate is higher than residential mortgage loans.

At June 30, 2026 and December 31, 2025, all Loans held for investment are carried at fair value. See Note 6 — Fair Value Measurements for a discussion on how the Company determines the fair values of the Loans held for investment. As changes in the fair value of these loans are reflected in earnings, the Company does not estimate or record a loan loss provision. The total amortized cost of the Company's Loans held for investment was $8.0 billion and $9.8 billion as of June 30, 2026 and December 31, 2025, respectively. The total UPB of the Company's Loans held for investment was $8.1 billion and $10.0 billion as of June 30, 2026 and December 31, 2025, respectively.

The following table provides a summary of the changes in the carrying value of Loans held for investment at fair value at June 30, 2026 and December 31, 2025:
For the Six Months EndedFor the Year Ended
June 30, 2026December 31, 2025
(dollars in thousands)
Balance, beginning of period$9,803,615 $11,196,678 
Purchases474,786 49,411 
Principal paydowns(580,881)(1,470,571)
Sales and settlements(1,668,877)(211,216)
Net periodic accretion (amortization)(1,492)(8,204)
Realized gains (losses) on sales and settlements(35,407)(18,254)
Change in fair value(100,954)265,771 
Balance, end of period$7,890,790 $9,803,615 

The primary causes of the change in fair value are market demand, interest rates and changes in credit risk of mortgage loans. The Company did not retain any beneficial interests on loan sales during the six months ended June 30, 2026 and the year ended December 31, 2025, respectively.

Residential mortgage loans

The following table presents the origination periods of the residential mortgage loan portfolio as a percentage of total current UPB:
Origination YearJune 30, 2026December 31, 2025
2002 and prior4.8 %4.9 %
20034.4 %4.3 %
20048.0 %8.0 %
200514.1 %14.1 %
200618.1 %18.2 %
200720.5 %21.4 %
20086.7 %6.9 %
20091.6 %1.7 %
2010 - 20206.8 %6.8 %
20212.7 %2.3 %
20227.9 %7.0 %
2023 and later4.4 %4.4 %
Total100.0 %100.0 %

The following table presents a summary of key characteristics of the residential loan portfolio at June 30, 2026 and December 31, 2025:
June 30, 2026December 31, 2025
Number of loans76,17793,956
Weighted average maturity (years)19.920.3
Weighted average loan to value (1)
77.1 %77.8 %
Weighted average FICO668666
Weighted average loan balance (in thousands)$107 $106 
Weighted average percentage owner occupied84.8 %85.5 %
Weighted average percentage single family residence77.0 %77.5 %
Weighted average geographic concentration of top five statesCA15.1 %CA15.2 %
NY9.0 %FL8.8 %
FL8.8 %NY8.7 %
NJ4.4 %PA4.3 %
PA4.4 %NJ4.3 %
(1) Value represents appraised value of the collateral at the time of loan origination.

The following table summarizes the outstanding principal balance of the residential loan portfolio which are 30 days delinquent and greater as reported by the servicers at June 30, 2026 and December 31, 2025, respectively.
30 Days Delinquent60 Days Delinquent90+ Days DelinquentBankruptcyForeclosureREOTotalUPB
(dollars in thousands)
June 30, 2026$504,051 $146,053 $148,182 $160,992 $249,855 $45,195 $1,254,328 $8,141,676 
% of UPB6.2 %1.8 %1.8 %2.0 %3.1 %0.6 %15.5 %

30 Days Delinquent60 Days Delinquent90+ Days DelinquentBankruptcyForeclosureREOTotalUPB
(dollars in thousands)
December 31, 2025$687,205 $209,725 $212,678 $182,663 $275,477 $41,467 $1,609,215 $9,988,601 
% of UPB6.9 %2.1 %2.1 %1.8 %2.8 %0.4 %16.1 %

The fair value of residential mortgage loans 90 days or more past due was $465 million and $558 million as of June 30, 2026 and December 31, 2025, respectively.