v3.26.3
Mortgage Servicing Rights
 9 Months Ended
Sep. 30, 2026
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights
10. Mortgage Servicing Rights

The Company owned MSRs as of September 30, 2026 and December 31, 2025 resulting from the sale of loans originated by Constructive with servicing retained, distributions received from Constructive prior to July 15, 2025 or purchases of MSRs. The Company's MSRs are associated with business purpose loans, are reported at fair value pursuant to the fair value option election (see Note 16) and are included in other assets in the accompanying condensed consolidated balance sheets. The primary risks associated with the Company's MSRs are changes in interest rates and prepayment speeds.

The following tables present activity related to MSRs for the three and nine months ended September 30, 2026 and 2025, respectively (dollar amounts in thousands).

For the Three Months Ended September 30,
20262025
Balance at beginning of period
$19,093 $19,449 
Additions:
MSRs received from equity investment in Constructive
— 3,405 
MSRs acquired through business combination
— 141 
Changes in fair value due to:
Changes in valuation inputs or assumptions used in valuation model
557 (506)
Other changes in fair value, including runoff
(680)(593)
Balance at end of period
$18,970 $21,896 

For the Nine Months Ended September 30,
20262025
Balance at beginning of period
$20,893 $21,003 
Additions:
MSRs received from equity investment in Constructive
— 3,405 
MSRs acquired through business combination
— 141 
Changes in fair value due to:
Changes in valuation inputs or assumptions used in valuation model
492 (1,088)
Other changes in fair value, including runoff
(2,415)(1,565)
Balance at end of period
$18,970 $21,896 

The following tables present the components of servicing fee income recognized during the three and nine months ended September 30, 2026 and 2025, respectively (dollar amounts in thousands). Servicing fee income is included in other income on the accompanying condensed consolidated statements of operations.

For the Three Months Ended September 30,
20262025
Servicing fees
$1,200 $1,290 
Prepayment fees
494 657 
Ancillary and other fee income (1)
94 52 
Servicing fee income
$1,788 $1,999 
For the Nine Months Ended September 30,
20262025
Servicing fees
$3,524 $3,755 
Prepayment fees
2,191 2,052 
Ancillary and other fee income (1)
267 145 
Servicing fee income
$5,982 $5,952 
(1)Includes default interest and late fee collections.

The following table presents the subservicing fee expenses recognized related to MSRs during the three and nine months ended September 30, 2026 and 2025, respectively (dollar amounts in thousands). Subservicing fee expenses are included in portfolio operating expenses on the accompanying condensed consolidated statements of operations.

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2026202520262025
Subservicing fee expenses$186 $204 $583 $585