v3.26.1
Mortgage Servicing Rights and Related Liabilities
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights and Related Liabilities Mortgage Servicing Rights and Related Liabilities
The following table sets forth the carrying value of the Company's MSRs and the related liabilities, which are recorded at fair value as described in Note 3, Fair Value Measurements. MSR related liabilities are recorded in Accounts payable and other liabilities in the Company's Condensed Consolidated Balance Sheets.

June 30, 2026December 31, 2025
MSRs, at fair value$18,905 $19,442 
Excess spread financing, at fair value$322 $337 
MSRs financing, at fair value16 11 
MSR related liabilities - nonrecourse, at fair value$338 $348 

Mortgage Servicing Rights

The following table summarizes changes to the MSR assets:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Fair value, beginning of period$19,377 $7,350 $19,442 $7,633 
Fair value of originated MSRs759 343 1,447 608 
MSRs sales(833)(56)(1,440)(200)
MSRs purchases151 179 320 224 
Changes in fair value (1)
Due to changes in valuation model inputs or assumptions
97 (25)399 (284)
Due to collection/realization of cash flows(646)(224)(1,263)(414)
Total changes in fair value(549)(249)(864)(698)
Fair value, end of period$18,905 $7,567 $18,905 $7,567 
(1)    Reflects changes in market interest rates and assumptions, including OAS, prepayment speeds, cost to service per loan, and the gains or losses on sales of MSRs during the period. It does not include the change in fair value of derivatives that economically hedge MSRs, the change in fair value of excess spread financing or the effects of contractual prepayment protection resulting from sales or purchases of MSRs.

The Company may periodically sell MSRs and retain subservicing for the related loans. The Company evaluates these transactions, including its continued involvement as subservicer to determine whether they meet the requirements for sale accounting. During the six months ended June 30, 2026, the Company sold $92,522 in UPB of MSRs, of which $62,974 were retained by the Company as subservicer.

The Company’s MSR portfolio is comprised of both loans it has originated and sold servicing-retained and MSRs acquired through acquisitions. The total UPB of mortgage loans serviced, excluding subserviced loans, at June 30, 2026 and December 31, 2025 was $1,213,607 and $1,290,325, respectively. The portfolio primarily consists of high-quality performing agency and government (FHA and VA) loans. As of June 30, 2026 and December 31, 2025, delinquent loans (defined as 60-plus days past-due) were 1.37% and 1.50%, respectively, of our total portfolio.
The following sensitivity analysis shows the potential impact on the fair value of the Company’s MSRs based on hypothetical changes in key assumptions, including the OAS, prepayment speeds and cost to service per loan:
OAS
Prepayment Speeds
Cost to Service per Loan
100 BPS
Adverse Change
200 BPS
Adverse Change
10%
Adverse Change
20%
Adverse Change
10%
Adverse Change
20%
Adverse Change
June 30, 2026$(692)$(1,333)$(456)$(879)$(117)$(234)
December 31, 2025$(718)$(1,383)$(527)$(1,015)$(124)$(248)
Refer to Note 3, Fair Value Measurements for further discussion on key weighted average inputs and assumptions used in estimating the fair value of MSRs.

The sensitivities presented are hypothetical and are intended to provide directional information only. The resulting change in fair value from adverse movements in significant assumptions may not be proportionate, as valuation outcomes can respond in a non-linear manner to changes in inputs. Further, the analysis reflects changes in one assumption at a time, with all other assumptions unchanged. In practice, multiple assumptions may change simultaneously and may be interdependent, which could cause the actual effect on fair value to differ from the amounts indicated.

Excess Spread Financing

The Company had excess spread financing liability of $322 and $337, related to the UPB of $56,611 and $59,695, as of June 30, 2026 and December 31, 2025, respectively. Refer to Note 3, Fair Value Measurements, for key weighted-average inputs and assumptions used in the valuation of excess spread financing liability and a rollforward of the balances for the periods presented.

Revenues - Loan servicing income, net

For the periods presented, Loan servicing income, net consisted of the following:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Contractually specified servicing fees (1)
$903 $382 $1,822 $763 
Subservicing income103 3 214 7 
Other ancillary income60 16 113 32 
Servicing fee income1,066 401 2,149 802 
Change in valuation model inputs or assumptions for MSRs and related liabilities70 (25)349 (286)
Change in fair value of MSR hedge(47)45 (207)47 
Collection/realization of cash flows(639)(219)(1,243)(409)
Change in fair value of MSRs, net(616)(199)(1,101)(648)
Loan servicing income, net$450 $202 $1,048 $154 
(1)    Amounts include servicing fees from loans sold with servicing retained of $684 and $341 for the three months ended June 30, 2026 and 2025, respectively, and $1,220 and $682 for the six months ended June 30, 2026 and 2025, respectively.