v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
At September 30, 2026, the Company’s two reportable segments include (i) mortgage-related assets and (ii) Lima One. The Corporate column in the table below primarily consists of corporate cash and related interest income, investments in loan originators and related economics, general and administrative expenses not directly attributable to Lima One, interest expense on unsecured senior notes (see Note 6), securitization issuance costs, and preferred stock dividends. The Company’s segments are managed by its “chief operating decision maker” or “CODM” as defined under GAAP; the Company’s CODM is its Chief Executive Officer. The CODM utilizes the segment reporting as part of their analysis of relative segment performance in deciding where to focus resources to enhance the Company’s future performance.

The following tables summarize segment financial information, which in total reconciles to the same data for the Company as a whole:

(In Thousands)
Mortgage-Related AssetsLima OneCorporateTotal
Three months ended September 30, 2026
Interest Income$163,073 $39,457 $1,377 $203,907 
Interest Expense113,973 23,945 4,585 142,503 
Net Interest Income/(Expense)$49,100 $15,512 $(3,208)$61,404 
Reversal/(Provision) for Credit Losses on Residential Whole Loans(45)— — (45)
Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses$49,055 $15,512 $(3,208)$61,359 
Net gain/(loss) on residential whole loans measured at fair value through earnings$(157,729)$(46,262)$— $(203,991)
Impairment and other net gain/(loss) on securities and other portfolio investments(223,345)42 — (223,303)
Net gain/(loss) on real estate owned478 (3,266)— (2,788)
Net gain/(loss) on derivatives144,175 14,670 — 158,845 
Net gain/(loss) on securitized debt measured at fair value through earnings92,940 22,600 — 115,540 
Lima One mortgage banking income— 7,418 — 7,418 
Net realized gain/(loss) on residential whole loans held at carrying value— — — — 
Other, net329 1,044 1,036 2,409 
Other Income/(Loss), net$(143,152)$(3,754)$1,036 $(145,870)
Compensation and benefits$— $8,486 $7,406 $15,892 
Other general and administrative expense— 4,071 3,671 7,742 
Loan servicing, financing and other related costs92 1,568 1,785 3,445 
Amortization of intangible assets— 100 — 100 
Income/(loss) before income taxes$(94,189)$(2,467)$(15,034)$(111,690)
Provision for/(benefit from) income taxes— — — — 
Net Income/(Loss)$(94,189)$(2,467)$(15,034)$(111,690)
Less Preferred Stock Dividend Requirement$— $— $10,682 $10,682 
Net Income/(Loss) Available to Common Stock and Participating Securities$(94,189)$(2,467)$(25,716)$(122,372)
(In Thousands)Mortgage-Related AssetsLima OneCorporateTotal
Three months ended September 30, 2025
Interest Income$128,336 $54,921 $2,745 $186,002 
Interest Expense89,849 34,599 4,553 129,001 
Net Interest Income/(Expense)$38,487 $20,322 $(1,808)$57,001 
Reversal/(Provision) for Credit Losses on Residential Whole Loans(276)— — (276)
Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses$38,211 $20,322 $(1,808)$56,725 
Net gain/(loss) on residential whole loans measured at fair value through earnings$34,704 $(3,463)$— $31,241 
Impairment and other net gain/(loss) on securities and other portfolio investments17,978 26 — 18,004 
Net gain/(loss) on real estate owned1,691 (1,391)— 300 
Net gain/(loss) on derivatives163 37 — 200 
Net gain/(loss) on securitized debt measured at fair value through earnings(22,267)(2,379)— (24,646)
Lima One mortgage banking income— 5,383 — 5,383 
Net realized gain/(loss) on residential whole loans held at carrying value— — — — 
Other, net(849)973 142 266 
Other Income/(Loss), net$31,420 $(814)$142 $30,748 
Compensation and benefits$— $9,271 $8,914 $18,185 
Other general and administrative expense— 5,237 5,532 10,769 
Loan servicing, financing and other related costs4,550 1,911 3,755 10,216 
Amortization of intangible assets— 300 — 300 
Income/(loss) before income taxes$65,081 $2,789 $(19,867)$48,003 
Provision for/(benefit from) income taxes— — (101)(101)
Net Income/(Loss)$65,081 $2,789 $(19,766)$48,104 
Less Preferred Stock Dividend Requirement$— $— $10,834 $10,834 
Net Income/(Loss) Available to Common Stock and Participating Securities$65,081 $2,789 $(30,600)$37,270 
(In Thousands)
Mortgage-Related AssetsLima OneCorporateTotal
Nine months ended September 30, 2026
Interest Income$466,641 $122,526 $4,463 $593,630 
Interest Expense323,523 76,189 13,730 413,442 
Net Interest Income/(Expense)$143,118 $46,337 $(9,267)$180,188 
Reversal/(Provision) for Credit Losses on Residential Whole Loans259 — — 259 
Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses$143,377 $46,337 $(9,267)$180,447 
Net gain/(loss) on residential whole loans measured at fair value through earnings$(209,417)$(79,188)$— $(288,605)
Impairment and other net gain/(loss) on securities and other portfolio investments(266,396)67 906 (265,423)
Net gain/(loss) on real estate owned1,395 (8,655)— (7,260)
Net gain/(loss) on derivatives213,583 21,949 — 235,532 
Net gain/(loss) on securitized debt measured at fair value through earnings129,916 30,737 — 160,653 
Lima One mortgage banking income— 22,422 — 22,422 
Net realized gain/(loss) on residential whole loans held at carrying value— — — — 
Other, net278 3,520 5,790 9,588 
Other Income/(Loss), net$(130,641)$(9,148)$6,696 $(133,093)
Compensation and benefits$— $26,293 $29,750 $56,043 
Other general and administrative expense— 12,470 20,588 33,058 
Loan servicing, financing and other related costs7,482 6,090 9,857 23,429 
Amortization of intangible assets— 700 — 700 
Income/(loss) before income taxes$5,254 $(8,364)$(62,766)$(65,876)
Provision for/(benefit from) income taxes— — — — 
Net Income/(Loss)$5,254 $(8,364)$(62,766)$(65,876)
Less Preferred Stock Dividend Requirement$— $— $31,665 $31,665 
Net Income/(Loss) Available to Common Stock and Participating Securities$5,254 $(8,364)$(94,431)$(97,541)
(In Thousands)
Mortgage-Related AssetsLima OneCorporateTotal
Nine months ended September 30, 2025
Interest Income$367,089 $181,134 $7,739 $555,962 
Interest Expense251,633 113,769 13,635 379,037 
Net Interest Income/(Expense)$115,456 $67,365 $(5,896)$176,925 
Reversal/(Provision) for Credit Losses on Residential Whole Loans(1,212)— — (1,212)
Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses$114,244 $67,365 $(5,896)$175,713 
Net gain/(loss) on residential whole loans measured at fair value through earnings$109,812 $(4,122)$— $105,690 
Impairment and other net gain/(loss) on securities and other portfolio investments42,420 19 3,389 45,828 
Net gain/(loss) on real estate owned386 (4,505)— (4,119)
Net gain/(loss) on derivatives(40,689)(8,417)— (49,106)
Net gain/(loss) on securitized debt measured at fair value through earnings(48,024)(5,658)— (53,682)
Lima One mortgage banking income— 15,796 — 15,796 
Net realized gain/(loss) on residential whole loans held at carrying value(882)— — (882)
Other, net(2,045)6,449 2,470 6,874 
Other Income/(Loss), net$60,978 $(438)$5,859 $66,399 
Compensation and benefits$— $28,764 $31,986 $60,750 
Other general and administrative expense(22)14,480 17,223 31,681 
Loan servicing, financing and other related costs13,581 4,855 7,616 26,052 
Amortization of intangible assets— 1,900 — 1,900 
Income/(loss) before income taxes$161,663 $16,928 $(56,862)$121,729 
Provision for/(benefit from) income taxes— — (735)(735)
Net Income/(Loss)$161,663 $16,928 $(56,127)$122,464 
Less Preferred Stock Dividend Requirement$— $— $29,613 $29,613 
Net Income/(Loss) Available to Common Stock and Participating Securities$161,663 $16,928 $(85,740)$92,851 
(In Thousands)
Mortgage-Related AssetsLima OneCorporateTotal
September 30, 2026
Total Assets$11,178,381 $2,213,296 $149,611 $13,541,288 
December 31, 2025
Total Assets$10,128,088 $2,632,740 $285,621 $13,046,449 

Lima One Segment

The Lima One segment includes the stand-alone mortgage origination and servicing business of Lima One, including related goodwill, intangible assets, and direct expenses, plus Lima One-related residential whole loans and REO (defined as both those owned by Lima One on the acquisition date and those originated by Lima One since the acquisition date) and the economics related thereto (including any related taxes and the economics of associated financing and hedging instruments), all as recorded under GAAP. Associated financing economics are equal to the results of direct financings of Lima One-related residential whole loans and REO plus allocations of the results of financings which include Lima One-related residential whole loans and REO as part of their collateral, based on the relative carrying values of the financed assets. Associated hedging economics are equal to allocations of the
Company’s overall hedging results based on the relative estimated duration of each asset class hedged and the relative fair values of assets within each asset class.

Mortgage-Related Assets Segment

This segment is comprised of the remainder of the Company’s investments (including any related taxes and the economics of associated financing and hedging instruments).