v3.26.1
SERVICING
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
SERVICING SERVICING
The following table summarizes the Company’s servicing assets at June 30, 2026 and December 31, 2025:
June 30, 2026December 31, 2025
UPB of Underlying LoansLoan Count
Carrying Value(A)
UPB of Underlying Loans
Loan Count(B)
Carrying Value(A)
HELOC loans$17,199,333 224,640 $153,102 $12,783,215 172,540 $111,211 
Mortgage loans141,762 264 1,922 147,268 270 1,853 
Total servicing assets$17,341,095 224,904 $155,024 $12,930,483 172,810 $113,064 
(A)    The Company records loan servicing assets at fair value. The total carrying value includes $63.8 million of collateralized loan servicing rights at December 31, 2025. See “Note 6—Debt” and “Note 12—Fair Value Measurements” for additional information regarding the mortgage service right (“MSR”) financing arrangement and valuation of the Company’s servicing rights, respectively.
(B) The loan count for HELOC loans was incorrectly presented in thousands, instead of ones, at December 31, 2025, and has been corrected to be properly presented in ones.
The following table presents a rollforward of the Company’s servicing assets for the six months ended June 30, 2025 and 2026:
Balance at December 31, 2024$88,497 
Change in fair value due to:
Additions(A)
25,080 
Realization of cash flows(B)
(12,359)
Change in valuation inputs and assumptions(10,551)
Total impact of change to fair value2,170 
Balance at June 30, 2025$90,667 
Balance at December 31, 2025$113,064 
Change in fair value due to:
Additions(A)
52,159 
Realization of cash flows(B)
(19,778)
Change in valuation inputs and assumptions9,579 
Total impact of change to fair value41,960 
Balance at June 30, 2026$155,024 
(A)    Represents the fair value of servicing rights retained upon sale of originated and purchased loans.
(B)    Based on the paydown of the underlying loans.
The following table summarizes the geographic concentration of the loans underlying the servicing rights at June 30, 2026 and December 31, 2025:
June 30, 2026December 31, 2025
State
Amount Outstanding(A)
% of Total
Amount Outstanding(A)
% of Total
California$4,135,498 23.8 %$3,239,619 25.1 %
Florida2,002,340 11.5 1,553,217 12.0 
Other (B)
11,203,257 64.7 8,137,647 62.9 
Total$17,341,095 100.0 %$12,930,483 100.0 %
(A)    Represents the principal balance of loans that the Company services.
(B)    The Company did not service loans in any state or U.S. territory contained in “Other” aggregating to more than 5% of the total amount outstanding of the loans that the Company services.
As part of its servicing operations, the Company held principal, interest, and other borrower payments of $487.5 million and $364.9 million at June 30, 2026 and December 31, 2025, respectively, due to third-party loan buyers recorded within “Payables to third-party loan owners” in the Condensed Consolidated Balance Sheets. The Company makes payments on these arrangements by remitting amounts due from proceeds received from borrower payments on the underlying loans.