v3.26.1
Fair Value (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis
The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the consolidated balance sheets by their level in the fair value hierarchy as of June 30, 2026 and December 31, 2025 (amounts in thousands):
June 30, 2026
TotalLevel ILevel IILevel III
Financial Assets:
Loans under fair value option$2,445,002 $— $— $2,445,002 
RMBS84,800 — — 84,800 
CMBS34,980 — 2,337 32,643 
Woodstar Fund investments1,725,368 — — 1,725,368 
Domestic servicing rights29,487 — — 29,487 
Derivative assets24,406 — 24,406 — 
VIE assets30,868,147 — — 30,868,147 
Total$35,212,190 $— $26,743 $35,185,447 
Financial Liabilities:
Derivative liabilities$91,573 $— $91,573 $— 
VIE liabilities29,293,820 — 25,848,563 3,445,257 
Total$29,385,393 $— $25,940,136 $3,445,257 

December 31, 2025
TotalLevel ILevel IILevel III
Financial Assets:
Loans under fair value option$2,323,543 $— $— $2,323,543 
RMBS88,283 — — 88,283 
CMBS32,522 — 4,325 28,197 
Equity security628 628 — — 
Woodstar Fund investments1,727,499 — — 1,727,499 
Domestic servicing rights28,280 — — 28,280 
Derivative assets45,813 — 45,813 — 
VIE assets34,493,164 — — 34,493,164 
Total$38,739,732 $628 $50,138 $38,688,966 
Financial Liabilities:
Derivative liabilities$83,983 $— $83,983 $— 
VIE liabilities32,803,806 — 28,972,753 3,831,053 
Total$32,887,789 $— $29,056,736 $3,831,053 
Schedule of Changes in Financial Assets and Liabilities Classified as Level III
The changes in financial assets and liabilities classified as Level III are as follows for the three and six months ended June 30, 2026 and 2025 (amounts in thousands):

Three Months Ended June 30, 2026
Loans at
Fair Value		RMBSCMBSWoodstar
Fund Investments		Domestic
Servicing
Rights		VIE AssetsVIE
Liabilities		Total
April 1, 2026 balance
$2,311,351 $86,717 $32,237 $1,729,433 $27,743 $32,399,812 $(3,759,883)$32,827,410 
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale(61)— (427)(4,065)1,744 (1,815,236)151,665 (1,666,380)
Net accretion— 1,038 — — — — — 1,038 
Included in OCI— (1,184)— — — — — (1,184)
Purchases / Originations287,490 — 6,527 — — — — 294,017 
Sales(330,236)— — — — — — (330,236)
Issuances— — — — — — (4,200)(4,200)
Cash repayments / receipts(52,961)(1,771)(158)— — — 145,812 90,922 
Transfers out of Level III(409)— (8,735)— — (2,895)24 (12,015)
Transfers within Level III229,828 — — — — (229,828)— — 
Consolidation of VIEs— — 3,199 — — 654,186 — 657,385 
Deconsolidation of VIEs— — — — — (137,892)21,325 (116,567)
June 30, 2026 balance
$2,445,002 $84,800 $32,643 $1,725,368 $29,487 $30,868,147 $(3,445,257)$31,740,190 
Amount of unrealized gains (losses) attributable to assets still held at June 30, 2026:
Included in earnings$(14,476)$1,038 $(416)$(4,065)$1,744 $(1,815,236)$151,665 $(1,679,746)
Included in OCI$— $(1,184)$— $— $— $— $— $(1,184)
Three Months Ended June 30, 2025
Loans at
Fair Value		RMBSCMBSWoodstar Fund InvestmentsDomestic
Servicing
Rights		VIE AssetsVIE
Liabilities		Total
April 1, 2025 balance
$2,446,636 $91,941 $27,271 $2,065,498 $23,143 $37,470,618 $(3,981,624)$38,143,483 
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale29,867 — 108 (9,943)2,363 (1,665,548)147,723 (1,495,430)
Net accretion— 1,189 — — — — — 1,189 
Included in OCI— 58 — — — — — 58 
Purchases / Originations524,986 — — — — — — 524,986 
Sales(445,845)— — — — — — (445,845)
Cash repayments / receipts(59,581)(1,825)(41)— — — (3,031)(64,478)
Transfers into Level III— — — — — — (20,527)(20,527)
Transfers out of Level III(1,225)— — — — — 81 (1,144)
Consolidation of VIEs— — — — — 717,180 — 717,180 
June 30, 2025 balance
$2,494,838 $91,363 $27,338 $2,055,555 $25,506 $36,522,250 $(3,857,378)$37,359,472 
Amount of unrealized gains (losses) attributable to assets still held at June 30, 2025:
Included in earnings$6,921 $1,189 $108 $(9,943)$2,363 $(1,665,548)$147,723 $(1,517,187)
Included in OCI$— $58 $— $— $— $— $— $58 
Six Months Ended June 30, 2026
Loans at
Fair Value		RMBSCMBSWoodstar Fund InvestmentsDomestic
Servicing
Rights		VIE AssetsVIE
Liabilities		Total
January 1, 2026 balance
$2,323,543 $88,283 $28,197 $1,727,499 $28,280 $34,493,164 $(3,831,053)$34,857,913 
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale(12,729)— (346)(2,131)1,207 (3,791,944)337,801 (3,468,142)
Net accretion— 2,090 — — — — — 2,090 
Included in OCI— (1,863)— — — — — (1,863)
Purchases / Originations520,300 — 6,527 — — — — 526,827 
Sales(512,323)— — — — — — (512,323)
Issuances— — — — — — (8,065)(8,065)
Cash repayments / receipts(91,038)(3,710)(524)— — — 102,702 7,430 
Transfers into Level III28 — 4,325 — — — (68,514)(64,161)
Transfers out of Level III(12,607)— (8,735)— — (2,895)27 (24,210)
Transfers within Level III229,828 — — — — (229,828)— — 
Consolidation of VIEs— — 3,199 — — 654,186 — 657,385 
Deconsolidation of VIEs— — — — — (254,536)21,845 (232,691)
June 30, 2026 balance
$2,445,002 $84,800 $32,643 $1,725,368 $29,487 $30,868,147 $(3,445,257)$31,740,190 
Amount of unrealized gains (losses) attributable to assets still held at June 30, 2026:
Included in earnings$(36,670)$2,080 $(346)$(2,131)$1,207 $(3,791,944)$337,801 $(3,490,003)
Included in OCI$— $(1,863)$— $— $— $— $— $(1,863)
Six Months Ended June 30, 2025
Loans at
Fair Value		RMBSCMBSWoodstar Fund InvestmentsDomestic
Servicing
Rights		VIE AssetsVIE
Liabilities		Total
January 1, 2025 balance
$2,516,008 $93,806 $27,345 $2,073,533 $22,390 $38,937,576 $(5,514,152)$38,156,506 
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale88,271 — 79 (17,978)3,116 (3,070,045)401,522 (2,595,035)
Net accretion— 2,264 — — — — — 2,264 
Included in OCI— (809)— — — — — (809)
Purchases / Originations756,095 — — — — — — 756,095 
Sales(743,164)— — — — — — (743,164)
Cash repayments / receipts(114,209)(3,898)(86)— — — (65,071)(183,264)
Transfers into Level III— — — — — — (28,122)(28,122)
Transfers out of Level III(8,163)— — — — — 1,348,407 1,340,244 
Consolidation of VIEs— — — — — 717,180 — 717,180 
Deconsolidation of VIEs— — — — — (62,461)38 (62,423)
June 30, 2025 balance
$2,494,838 $91,363 $27,338 $2,055,555 $25,506 $36,522,250 $(3,857,378)$37,359,472 
Amount of unrealized gains (losses) attributable to assets still held at June 30, 2025:
Included in earnings$45,102 $2,264 $137 $(17,978)$3,116 $(3,070,045)$401,522 $(2,635,882)
Included in OCI$— $(809)$— $— $— $— $— $(809)
Schedule of Fair Value of Financial Instruments not Carried at Fair Value
The following table presents the fair values of our financial instruments not carried at fair value on the consolidated balance sheets (amounts in thousands):
June 30, 2026December 31, 2025
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Financial assets not carried at fair value:
Loans$19,589,447 $19,696,648 $18,862,712 $18,996,541 
HTM debt securities283,049 242,056 179,567 146,442 
Financial liabilities not carried at fair value:
Secured financing agreements
$13,999,891 $14,079,482 $12,678,948 $12,785,314 
Securitized financing
4,811,511 4,824,687 5,131,453 5,154,262 
Unsecured senior notes4,882,722 4,979,002 4,283,836 4,438,777 
Schedule of Quantitative Information for Level 3 Measurements for Assets and Liabilities Measured at Fair Value on Recurring Basis
The following is quantitative information about significant unobservable inputs in our Level III measurements for those assets and liabilities measured at fair value on a recurring basis (dollars in thousands):
Carrying Value at
June 30, 2026
Valuation
Technique		Unobservable
Input		Range (Weighted Average) as of (1)
June 30, 2026December 31, 2025
Loans under fair value option$2,445,002 Discounted cash flow, market pricingCoupon (d)
2.8% - 10.8% (4.6%)
2.8% - 10.8% (4.5%)
Remaining contractual term (d)
1.8 - 36.0 years (24.9 years)
2.3 - 36.5 years (25.5 years)
FICO score (a)
590 - 829 (749)
585 - 829 (750)
LTV (b)
1% - 99% (63%)
1% - 100% (63%)
Purchase price (d)
79.4% - 113.4% (100.9%)
80.0% - 106.8% (101.3%)
RMBS84,800 Discounted cash flowConstant prepayment rate (a)
2.4% - 9.0% (4.7%)
2.2% - 11.0% (4.6%)
Constant default rate (b)
1.0% - 3.6% (1.8%)
0.7% - 7.5% (1.5%)
Loss severity (b)
0% - 69% (35%)
0% - 81% (10%)
Delinquency rate (c)
8% - 20% (13%)
7% - 24% (13%)
Servicer advances (a)
28% - 71% (49%)
31% - 70% (49%)
CMBS32,643 Discounted cash flowYield (b)
0% - 88.6% (26.5%)
0% - 63.9% (10.7%)
Duration (c)
0 - 5.9 years (1.3 years)
0 - 6.7 years (1.3 years)
Woodstar Fund investments1,725,368 Discounted cash flowDiscount rate - properties (b)N/A
7.0% - 7.8% (7.5%)
Discount rate - debt (a)
3.2% - 6.1% (5.2%)
3.2% - 5.6% (4.9%)
Terminal capitalization rate (b)
N/A
5.0% - 5.8% (5.5%)
Direct capitalization rate (b)
4.99% (4.99%)
 4.99% (4.99%) (Implied)
Domestic servicing rights29,487 Discounted cash flowDebt yield (a)
9.25% (9.25%)
9.00% (9.00%)
Discount rate (b)
15% (15%)
15% (15%)
VIE assets30,868,147 Discounted cash flowYield (b)
0% - 240.8% (17.4%)
0% - 420.1% (22.1%)
Duration (c)
0 - 9.5 years (3.3 years)
0 - 8.0 years (3.3 years)
VIE liabilities3,445,257 Discounted cash flowYield (b)
0% - 240.8% (10.8%)
0% - 420.1% (12.1%)
Duration (c)
0 - 9.5 years (2.9 years)
0 - 8.0 years (2.9 years)
______________________________________________________________________________________________________________________
(1)Unobservable inputs were weighted by the relative carrying value of the instruments as of June 30, 2026 and December 31, 2025.
Information about Uncertainty of Fair Value Measurements
(a)Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement.
(b)Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement.
(c)Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (higher or lower) fair value measurement depending on the structural features of the security in question.
(d)This unobservable input is not subject to variability as of the respective reporting dates.