SERVICING RIGHTS, AT FAIR VALUE (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Transfers and Servicing [Abstract] |
|
| Summary of Outstanding Principal Balance of Servicing Rights |
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 | | | Government | | 44,919,810 | | | 42,610,586 | | Other | | 13,182,749 | | | 12,184,383 | | | Total servicing portfolio | | $ | 123,387,503 | | | $ | 119,096,243 | |
|
| Summary of Changes in Servicing Rights |
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, | | | 2026 | | 2025 | | 2026 | | 2025 | | 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 assumptions | | 36,677 | | | 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.
|
| Summary of Components of Loan Servicing Fee Income |
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, | | | 2026 | | 2025 | | 2026 | | 2025 | | Contractual servicing fees | | $ | 90,020 | | | $ | 83,816 | | | $ | 177,971 | | | $ | 165,783 | | | Late, ancillary and other fees | | 21,944 | | | 24,393 | | | 42,742 | | | 46,704 | | | Servicing fee income | | $ | 111,964 | | | $ | 108,209 | | | $ | 220,713 | | | $ | 212,487 | |
|
| Summary of Components of Changes in Fair Value of Servicing Rights |
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, | | | 2026 | | 2025 | | 2026 | | 2025 | | 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 assumptions | | 36,677 | | | 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) | |
|
| Summary of Servicing Rights Sensitivity Analysis |
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) | |
|