v3.26.1
Financing
 6 Months Ended
Jun. 30, 2026
Disclosure of Repurchase Agreements [Abstract]  
Financing Financing
The following table presents a summary of the Company's financing as of June 30, 2026 and December 31, 2025 ($ in thousands).
June 30, 2026
December 31, 2025
FinancingWeighted AverageCollateral Fair Value (1)(2)Financing
Current FaceCarrying ValueStated MaturityFunding CostLife (Years)Carrying Value
Financing Arrangements by Asset Type (3)
Securitized Residential Mortgage Loans (4)
Non-Agency Loans $408,463 $408,463 Jul 2026 - Feb 20275.05 %0.16$610,177 $428,657 
Home Equity Loans62,168 62,168 Jul 2026 - Sep 20264.51 %0.1675,677 67,752 
Re- and Non-Performing Loans26,742 26,742 Aug 2026 - Sep 20265.73 %0.1540,425 27,264 
Residential Mortgage Loans (5)
Agency-Eligible Loans18,152 18,152 Sep 2026 - Mar 20275.35 %0.3920,651 19,490 
Home Equity Loans (6)141,575 141,575 Jun 2027 - Jul 20275.60 %0.98233,810 58,951 
Non-Agency Loans5,896 5,896 Jun 20275.40 %0.947,014 29,817 
Legacy WMC Commercial Loans19,875 19,875 Sep 20266.39 %0.2249,254 27,436 
Non-Agency RMBS178,996 178,996 Jul 2026 - Feb 20274.46 %0.13220,010 137,386 
Legacy WMC CMBS 18,998 18,998 Jul 2026 - Sep 20265.07 %0.1442,616 18,540 
Agency RMBS10,150 10,150 Jul 2026 - Sep 20264.29 %0.2214,715 10,857 
Other Assets— — N/A— %0.00— 244 
Total Financing Arrangements$891,015 $891,015 5.03 %0.30$1,314,349 $826,394 
Securitized debt, at fair value (7)(8)
Non-Agency Loans (9)$5,828,156 $5,606,863 N/A5.33 %5.71N/A$6,265,540 
Home Equity Loans (9)643,739 660,721 N/A5.54 %2.16N/A817,889 
Re- and Non-Performing Loans93,161 87,653 N/A3.50 %2.78N/A94,494 
Total Securitized Debt$6,565,056 $6,355,237 5.33 %5.37N/A$7,177,923 
Senior Unsecured Notes (10)
February 2029 Senior Unsecured Notes$34,500 $33,490 Feb 202910.79 %2.67N/A$33,327 
May 2029 Senior Unsecured Notes65,000 63,368 May 202910.52 %2.92N/A63,131 
Total Senior Unsecured Notes$99,500 $96,858 10.61 %2.83N/A$96,458 
Total Financing$7,555,571 $7,343,110 5.36 %4.93$1,314,349 $8,100,775 
(1)The Company also had $8.0 million and $7.8 million of cash pledged under repurchase agreements as of June 30, 2026 and December 31, 2025, respectively.
(2)Under the terms of the Company’s financing agreements, the Company's financing counterparties may, in certain cases, sell or re-hypothecate the pledged collateral.
(3)Financing arrangements are recorded at amortized cost on the Company's consolidated balance sheets. The fair value of the Company's financing arrangements approximates the carrying value due to their floating interest rates and short-term maturities of generally one year or less. Financing arrangements are classified as Level 2 of the fair value hierarchy.
(4)Amounts pledged as collateral under Securitized residential mortgage loans include certain of the Company's retained interests in securitizations. Refer to Note 3 for more information on the Non-Agency VIEs, Home Equity VIEs, and RPL/NPL VIEs.
(5)The Company's Residential mortgage loan financing arrangements include a maximum borrowing capacity of $1.6 billion on facilities used to finance Agency-Eligible, Home Equity and Non-Agency Loans of which $50 million is contractually committed.
(6)The collateral fair value pledged includes $63.5 million of Home Equity Loans in which the Company has no outstanding financing but has $50 million of available financing which is contractually committed.
(7)The holders of the securitized debt have no recourse to the general credit of the Company. The Company generally has no obligation to provide any other explicit or implicit support to the Non-Agency VIEs, Home Equity VIEs, and RPL/NPL VIEs. Refer to Note 12 for commitments related to the undrawn portion of a borrowers' home equity line of credit for which the Company may be required to fund.
(8)The weighted average funding costs are calculated based on the amortized cost of the underlying securities.
(9)The current face on the Company's Securitized debt in the Company's Non-Agency VIEs and Home Equity VIEs excludes Interest Only classes which have no principal balances and bear interest based on a notional value. The notional value is used solely to determine interest distributions on the interest only classes of securities. As of June 30, 2026, the notional value of interest only classes of Securitized debt in the Non-Agency VIEs and Home Equity VIEs was $3.2 billion and $238.8 million, respectively.
(10)The Senior Unsecured Notes are recorded at amortized cost in the Company's consolidated balance sheets. As of June 30, 2026, the fair value of the Senior Unsecured Notes was $102.1 million. The fair value of the Senior Unsecured Notes is based upon prices obtained from third-party pricing services or broker quotations and are classified as Level 2 of the fair value hierarchy.
Senior Unsecured Notes

The Company’s Senior Unsecured Notes consist of $34.5 million principal amount 9.500% Senior Notes due February 2029 ("February 2029 Senior Unsecured Notes") and $65.0 million principal amount 9.500% Senior Notes due May 2029 ("May 2029 Senior Unsecured Notes" and together with the February 2029 Senior Unsecured Notes, the "Senior Unsecured Notes"). The February 2029 Senior Unsecured Notes were issued on January 26, 2024 in a public offering for net proceeds of approximately $32.8 million and the May 2029 Senior Unsecured Notes were issued on May 15, 2024 in a public offering for net proceeds of approximately $62.4 million. The below table provides a summary of the Senior Unsecured Notes as of June 30, 2026 ($ in thousands).
Principal Amount (1)Carrying ValueMaturity Date (2)Redemption Date (3)Rate (4)
February 2029 Senior Unsecured Notes
$34,500 $33,490 February 15, 2029February 15, 20269.500 %
May 2029 Senior Unsecured Notes
65,000 63,368 May 15, 2029May 15, 20269.500 %
(1)The Senior Unsecured Notes were issued at 100% of the principal amount.
(2)The Company has the option to redeem the Senior Unsecured Notes earlier than the maturity date.
(3)The Company may redeem the Senior Unsecured Notes in whole or in part at any time or from time to time at the Company’s option on or after the redemption date, upon not less than 30 days written notice to holders prior to the redemption date, at a redemption price equal to 100% of the outstanding principal amount of the Senior Unsecured Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date.
(4)The Senior Unsecured Notes bear interest at a rate equal to 9.500% per year, payable in cash quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on the applicable first pay date.

The below table details the total interest expense incurred on the Senior Unsecured Notes during the three and six months ended June 30, 2026 and 2025 (in thousands).
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Coupon interest expense
$2,363 $2,363 $4,726 $4,726 
Amortization expense
203 182 400 359 
Total interest expense$2,566 $2,545 $5,126 $5,085 
Contractual maturities

The following table allocates the current face of the Company's borrowings under financing arrangements and the Senior Unsecured Notes as of June 30, 2026 by contractual maturity (in thousands). Securitized debt is excluded from the below table as it does not have a contractual maturity.
Within 30 DaysOver 30 Days to 3 MonthsOver 3 Months to 12 MonthsOver 12 MonthsTotal
Financing Arrangements by Asset Type
Securitized Residential Mortgage Loans
Non-Agency Loans$183,425 $191,060 $33,978 $— $408,463 
Home Equity Loans23,904 38,264 — — 62,168 
Re- and Non-Performing Loans— 26,742 — — 26,742 
Residential Mortgage Loans
Agency-Eligible Loans— 3,127 15,025 — 18,152 
Home Equity Loans— — 58,207 83,368 141,575 
Non-Agency Loans— — 5,896 — 5,896 
Legacy WMC Commercial Loans (1)— 19,875 — — 19,875 
Non-Agency RMBS88,294 87,074 3,628 — 178,996 
Legacy WMC CMBS7,334 11,664 — — 18,998 
Agency RMBS783 9,367 — — 10,150 
Total Financing Arrangements$303,740 $387,173 $116,734 $83,368 $891,015 
Senior Unsecured Notes
February 2029 Senior Unsecured Notes$— $— $— $34,500 $34,500 
May 2029 Senior Unsecured Notes— — — 65,000 65,000 
Total Senior Unsecured Notes$— $— $— $99,500 $99,500 
(1)The borrowers for the Company’s Legacy WMC Commercial Loans are in maturity default as of June 30, 2026. In March 2026, the Company extended the maturity of its financing arrangement collateralized by Legacy WMC Commercial Loans to September 19, 2026. All proceeds from asset paydowns or sales will be applied to reduce the outstanding balance.

Counterparties

The Company had outstanding financing arrangements with six counterparties as of June 30, 2026 and December 31, 2025.

The following table presents information as of June 30, 2026 and December 31, 2025 with respect to each counterparty that provides the Company with financing for which the Company had greater than 5% of its stockholders’ equity at risk, excluding stockholders’ equity at risk under financing through affiliated entities ($ in thousands).

June 30, 2026
December 31, 2025
CounterpartyStockholders' Equity
at Risk		Weighted Average
Maturity (days)		Percentage of
Stockholders' Equity		Stockholders' Equity
at Risk		Weighted Average
Maturity (days)		Percentage of
Stockholders' Equity
BofA Securities, Inc.$171,549 6331.4 %$150,267 6826.8 %
Goldman Sachs Bank USA128,990 17223.6 %153,393 10327.4 %
Barclays Capital Inc.65,131 20711.9 %80,721 7314.4 %
JP Morgan Securities, LLC41,487 627.6 %29,992 315.3 %
Atlas Securitized Products, L.P.29,333 815.4 %(1)(1)(1)
(1)As of December 31, 2025, the Company had less than 5% of its equity at risk under financing arrangements with Atlas Securitized Products, L.P.

Financial Covenants

The Company’s financing arrangements generally include customary representations, warranties, and covenants, but may also contain more restrictive supplemental terms and conditions. Although specific to each financing arrangement, typical supplemental terms include requirements of minimum equity and liquidity, leverage ratios, and performance triggers. In
addition, some of the financing arrangements contain cross default features, whereby default under an agreement with one lender simultaneously causes default under agreements with other lenders. To the extent that the Company fails to comply with the covenants contained in these financing arrangements or is otherwise found to be in default under the terms of such agreements, the counterparty has the right to accelerate amounts due under the associated agreement. Financings pursuant to financing arrangements are generally recourse to the Company. As of June 30, 2026, the Company is in compliance with all of its financial covenants.