v3.26.1
Mortgage Servicing
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
Mortgage Servicing
Note 7 – Mortgage Servicing
The following table presents the composition of our MSR portfolio:
MSR UPB and Fair Value
June 30, 2026December 31, 2025
Fair Value
UPB ($ billions)
Fair Value
UPB ($ billions)
Owned MSRs (1)
$2,746.2 $174.3 $2,244.3 $152.5 
Transferred MSR, subject to Pledged MSR liability (2) (3)
462.6 31.0 581.0 38.6 
Total MSRs$3,208.8 $205.3 $2,825.3 $191.1 
(1)Includes $368.7 million and $373.5 million fair value of MSRs related to ESS financing liabilities at June 30, 2026 and December 31, 2025, respectively.
(2)MSRs subject to sale or transfer agreements that do not meet sale accounting criteria. See Note 8 — MSR Related Financing Liabilities, at Fair Value.
(3)Includes $80.6 million fair value and $6.8 billion UPB related to Rithm at June 30, 2026 subject to termination notice, of which approximately $3.4 billion UPB is expected to transfer upon the receipt of required consents - refer to Note 8 — MSR Related Financing Liabilities, at Fair Value.
The following table presents the composition of our MSR portfolio by investor:
MSR UPB and Fair Value
June 30, 2026December 31, 2025
Fair Value
UPB ($ billions)
Fair Value
UPB ($ billions)
GSE
$2,326.0 $154.1 $2,089.2 $143.5 
Ginnie Mae
697.3 34.3 528.6 28.1 
Non-Agency
185.5 16.9 207.4 19.5 
Total MSRs$3,208.8 $205.3 $2,825.3 $191.1 
The following table summarizes the delinquency status of loans underlying our MSRs:
June 30, 2026December 31, 2025
Delinquent loansGSE
Ginnie Mae
Non - AgencyTotalGSE
Ginnie Mae
Non - AgencyTotal
30 days1.2 %4.2 %7.8 %2.7 %1.0 %4.9 %8.5 %2.9 %
60 days0.2 1.2 2.6 0.7 0.3 1.7 2.9 1.0 
90 days or more0.4 3.4 5.8 1.7 0.4 3.4 6.1 1.9 
Total 30-60-90 days or more1.8 %8.8 %16.2 %5.1 %1.7 %9.9 %17.5 %5.7 %
The following table summarizes the activity of our MSRs:

Mortgage Servicing Rights – At Fair Value
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance$3,025.9 $2,547.4 $2,825.3 $2,466.3 
Sales (1)
0.2 0.1 (20.5)0.3 
Additions:
Recognized on the sale of residential mortgage loans155.7 82.4 260.6 142.9 
Purchases of MSRs
143.8 49.1 337.2 147.4 
Servicing transfers and adjustments (2) (3)
(106.0)(12.0)(123.2)(12.0)
Net additions (sales)193.7 119.7 454.1 278.6 
Changes in fair value recognized in earnings:
Changes in valuation inputs or assumptions 61.0 26.8 73.3 7.2 
Realization of cash flows (4)
(71.8)(61.2)(143.9)(119.4)
Fair value gains (losses) recognized in earnings(10.8)(34.4)(70.6)(112.2)
Ending balance$3,208.8 $2,632.6 $3,208.8 $2,632.6 
(1)On January 5, 2026 we completed a sale of certain owned MSRs, with subservicing retained with a UPB of $1.3 billion. The sale proceeds were used to settle the related outstanding ESS financing liability. Refer to Note 8 — MSR Related Financing Liabilities, at Fair Value.
(2)On June 30, 2026, we derecognized $105.9 million of MSRs and the Pledged MSR liability associated with other MSR capital partners with a UPB of $5.9 billion as MSR sale accounting criteria were met.
(3)On March 1, 2026, we derecognized a portion of the Rithm Pledged MSR liability with a UPB of $1.2 billion associated with Rithm servicing agreements for which MSR sale accounting criteria were met. See Note 8 — MSR Related Financing Liabilities, at Fair Value - Rithm Transactions.
(4)Realization of expected cash flows and passage of time.
The following table summarizes the components of our servicing and subservicing fee revenue:
Servicing RevenueThree Months Ended June 30,Six Months Ended June 30,
2026202520262025
Loan servicing and subservicing fees
Servicing fee on owned MSR
$123.4 $101.7 $240.4 $199.3 
Servicing fee on transferred MSR (1)
26.6 32.6 58.5 64.9 
Servicing fees
150.0 134.3 298.9 264.2 
Subservicing fees
25.7 23.4 51.7 49.5 
175.7 157.7 350.6 313.8 
Ancillary income
Custodial accounts (float earnings)36.6 32.3 66.7 59.4 
Late charges9.0 9.7 18.8 19.4 
Reverse subservicing ancillary fees1.8 3.0 3.8 6.5 
Other
6.2 8.5 11.8 15.5 
53.6 53.5 101.1 100.8 
Total Servicing and subservicing fees$229.3 $211.3 $451.7 $414.6 
Owned MSR and Subservicing
$198.0 $174.7 $384.1 $342.2 
Transferred MSR (1) (2)
31.3 36.5 67.6 72.4 
(1)Servicing fees collected on behalf of, and remitted to, respective parties related to transferred MSRs that do not achieve sale accounting. Remittances are reported within Pledged MSR liability expense. See Note 8 — MSR Related Financing Liabilities, at Fair Value.
(2)Includes $4.7 million and $9.1 million for the three and six months ended June 30, 2026, respectively, and $4.0 million and $7.5 million for the three and six months ended June 30, 2025, respectively, of ancillary income associated with transferred MSRs that do not achieve sale accounting and is subject to remittances reported within Pledged MSR liability expense.
Float balances on which we earn interest, referred to as float earnings (balances in custodial accounts, which represent collections of principal and interest that we receive from borrowers on behalf of investors and tax and insurance payments) are held in escrow by unaffiliated banks and are excluded from our consolidated balance sheets. Float balances amounted to $3.39 billion and $2.58 billion at June 30, 2026 and December 31, 2025, respectively.