v3.26.1
LOANS HELD FOR INVESTMENT, AT FAIR VALUE
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
LOANS HELD FOR INVESTMENT, AT FAIR VALUE LOANS HELD FOR INVESTMENT, AT FAIR VALUE
In April 2024, the Company executed a securitization of a pool of approximately $150.0 million of fixed-rate and adjustable-rate, performing, re-performing and non-performing residential mortgage loans that was recorded as a secured borrowing in which the loans remained on the consolidated balance sheet as loans held for investment, at fair value.

A summary of the changes in the balance of loans held for investment is as follows:

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Balance at beginning of period$108,230 $114,447 $109,821 $116,627 
Principal payments(2,908)(2,974)(4,574)(6,112)
Fair value adjustment946 118 1,021 1,076 
Balance at end of period$106,268 $111,591 $106,268 $111,591 


The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for investment.

June 30, 2026December 31, 2025
Fair valueUPBDifferenceFair valueUPBDifference
Current through 89 days delinquent$100,380 $120,066 $(19,686)$103,611 $123,829 $(20,219)
90+ days delinquent(1)
5,888 7,043 (1,155)6,210 7,854 (1,643)
Total$106,268 $127,109 $(20,841)$109,821 $131,683 $(21,862)
(1)     90+ days delinquent loans are on non-accrual status.

Income from loans held for investment is included in other income on the consolidated statement of operations, and includes $1.4 million and $2.8 million of interest income for the three and six months ended June 30, 2026, respectively, and fair value gains of $0.9 million and $1.0 million for the three and six months ended June 30, 2026, respectively.
SERVICING RIGHTS, AT FAIR VALUE
The outstanding principal balance of the servicing portfolio was comprised of the following:
June 30,
2026		December 31,
2025
Agency
$65,284,944 $64,301,274 
Government44,919,810 42,610,586 
Other
13,182,749 12,184,383 
Total servicing portfolio$123,387,503 $119,096,243 


A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows:

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Balance at beginning of period$1,669,648 $1,603,031 $1,637,706 $1,615,510 
Servicing rights additions
98,335 66,940 185,485 119,626 
Sales proceeds, net(2,991)(10,474)(6,316)(15,837)
Changes in fair value:
Due to changes in valuation inputs or assumptions36,677 145 37,125 (23,543)
Due to collection/realization of cash flows(49,538)(42,832)(100,980)(79,008)
Realized (losses) gains on sale of servicing rights(2)
(588)44 (1,477)106 
Total changes in fair value
(13,449)(42,643)(65,332)(102,445)
Balance at end of period(2)
$1,751,543 $1,616,854 $1,751,543 $1,616,854 
(1)    Includes realized MSR sale gain and broker fees.
(2)    Servicing assets of $1.8 billion and $1.6 billion at June 30, 2026 and June 30, 2025, respectively, are presented net of servicing liabilities of $28.3 million and $19.1 million, respectively.

In July 2026, the Company agreed to sell $9.7 billion of Agency loans from the total servicing portfolio. This transaction is expected to settle in the third quarter 2026.

The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Contractual servicing fees$90,020 $83,816 $177,971 $165,783 
Late, ancillary and other fees21,944 24,393 42,742 46,704 
Servicing fee income$111,964 $108,209 $220,713 $212,487 

The following is a summary of the components of change in fair value of servicing rights, net of hedge as reported in the Company’s consolidated statements of operations:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Changes in fair value:
Due to collection/realization of cash flows$(49,538)$(42,832)$(100,980)$(79,008)
Due to changes in valuation inputs or assumptions36,677 145 37,125 (23,543)
Realized (losses) gains on sale of servicing rights
(588)44 (1,477)106 
Net (losses) gains from derivatives hedging servicing rights
(6,319)(9,564)(18,741)9,239 
Valuation changes in servicing rights, net of hedging gains and losses
29,770 (9,375)16,907 (14,198)
Other realized gains (losses) on sales of servicing rights (1)
210 (169)156 (273)
Changes in fair value of servicing rights, net$(19,558)$(52,376)$(83,917)$(93,479)
(1)Includes the (provision) recovery for estimated losses and broker fees on MSR sales.

The table below illustrates hypothetical changes in fair values of servicing rights, caused by assumed immediate changes to key assumptions that are used to determine fair value.


June 30,
2026		December 31,
2025
Fair Value of Servicing Rights, net$1,751,543 $1,637,706 
Change in Fair Value from adverse changes:
Discount Rate:
Increase 1%(56,357)(62,800)
Increase 2%(111,839)(123,283)
Cost of Servicing:
Increase 10%(17,090)(18,672)
Increase 20%(34,955)(37,449)
Prepayment Speed:
Increase 10%(18,269)(19,035)
Increase 20%(35,764)(37,705)

Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in servicing rights values may differ significantly from those displayed above.