v3.26.3
Mortgage Servicing
 9 Months Ended
Sep. 30, 2026
Transfers and Servicing [Abstract]  
Mortgage Servicing
Note 7 – Mortgage Servicing
The following table presents the composition of our MSR portfolio:
MSR UPB and Fair Value
September 30, 2026December 31, 2025
Fair Value
($ millions)
UPB ($ billions)
Fair Value
($ millions)
UPB ($ billions)
Owned MSRs (1)
$3,010.7 $177.2 $2,244.3 $152.5 
Transferred MSRs, subject to Pledged MSR liability (2) (3)
349.9 22.6 581.0 38.6 
Total MSRs$3,360.6 $199.8 $2,825.3 $191.1 
(1)Includes $363.8 million and $373.5 million fair value of MSRs related to ESS financing liabilities at September 30, 2026 and December 31, 2025, respectively.
(2)MSRs subject to sale or transfer agreements that do not meet sale accounting criteria. See Note 8 — MSR Related Financing Liabilities, at Fair Value.
(3)Includes $38.5 million fair value and $3.3 billion UPB related to Rithm at September 30, 2026, none of which is expected to transfer - refer to Note 8 — MSR Related Financing Liabilities, at Fair Value.
The following table presents the composition of our MSR portfolio by investor:
MSR UPB and Fair Value
September 30, 2026December 31, 2025
Fair Value
($ millions)
UPB ($ billions)
Fair Value
($ millions)
UPB ($ billions)
GSE
$2,347.3 $146.7 $2,089.2 $143.5 
Ginnie Mae
868.4 40.0 528.6 28.1 
Non-Agency
144.9 13.1 207.4 19.5 
Total MSRs$3,360.6 $199.8 $2,825.3 $191.1 
The following table summarizes the delinquency status of loans underlying our MSRs:
September 30, 2026December 31, 2025
Delinquent loansGSE
Ginnie Mae
Non - AgencyTotalGSE
Ginnie Mae
Non - AgencyTotal
30 days1.0 %3.7 %6.6 %2.2 %1.0 %4.9 %8.5 %2.9 %
60 days0.3 1.2 2.1 0.7 0.3 1.7 2.9 1.0 
90 days or more0.4 3.1 5.3 1.5 0.4 3.4 6.1 1.9 
Total 30-60-90 days or more1.7 %8.0 %14.0 %4.4 %1.7 %9.9 %17.5 %5.7 %
The following table summarizes the activity of our MSRs:

Mortgage Servicing Rights – At Fair Value
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Beginning balance$3,208.8 $2,632.6 $2,825.3 $2,466.3 
Sales (1)
(136.7)— (157.2)0.3 
Additions:
Recognized on the sale of residential mortgage loans172.2 116.0 432.8 258.9 
Purchases of MSRs128.6 86.7 465.8 234.0 
Servicing transfers and adjustments (2) (3) (4)
(126.6)— (249.9)(12.0)
Net additions (sales)37.5 202.7 491.5 481.3 
Changes in fair value recognized in earnings:
Changes in valuation inputs or assumptions 193.3 (5.6)266.7 1.6 
Realization of cash flows (5)
(79.0)(66.8)(222.9)(186.2)
Fair value gains (losses) recognized in earnings114.3 (72.4)43.8 (184.6)
Ending balance$3,360.6 $2,762.9 $3,360.6 $2,762.9 
(1)Includes a sale completed in January 2026 of certain owned MSRs, with subservicing retained with a UPB of $1.3 billion. The sale proceeds were used to settle the related outstanding ESS financing liability. Refer to Note 8 — MSR Related Financing Liabilities, at Fair Value.
(2)During the three and nine months ended September 30, 2026, we derecognized $41.5 million and $58.7 million, respectively, of Rithm MSRs and the Pledged MSR Liability with a UPB of $3.4 billion and $4.6 billion, respectively, as MSR sale accounting criteria were met. See Note 8 — MSR Related Financing Liabilities, at Fair Value - Rithm Transactions.
(3)During the three and nine months ended September 30, 2026, we derecognized $85.1 million of MSRs and the Pledged MSR Liability associated with MAV upon sale of the related MSRs by MAV to a third party with a UPB of $5.1 billion.
(4)During the nine months ended September 30, 2026, we derecognized $105.9 million of MSRs and the Pledged MSR liability associated with other MSR capital partners with a UPB of $5.9 billion as MSR sale accounting criteria were met. We continue to service these loans under a subservicing agreement.
(5)Realization of expected cash flows and passage of time.
The following table summarizes the components of our servicing and subservicing fee revenue:
Servicing RevenueThree Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Loan servicing and subservicing fees
Servicing fee on owned MSRs$131.4 $107.3 $371.8 $306.6 
Servicing fee on transferred MSRs (1)
19.7 31.4 78.2 96.3 
Servicing fees
151.1 138.7 450.0 402.9 
Subservicing fees
22.6 23.5 74.2 73.0 
173.7 162.1 524.2 475.9 
Ancillary income
Custodial accounts (float earnings)34.7 36.4 101.3 95.8 
Late charges8.2 9.4 27.0 28.9 
Reverse subservicing ancillary fees1.8 2.7 5.7 9.2 
Other
6.3 6.8 18.2 22.3 
51.0 55.3 152.2 156.2 
Total Servicing and subservicing fees$224.7 $217.5 $676.4 $632.1 
Owned MSR and Subservicing
$203.3 $181.9 $587.3 $524.1 
Transferred MSRs (1) (2)
21.4 35.6 89.1 108.0 
(1)Servicing fees collected on behalf of, and remitted to, respective parties related to transferred MSRs that do not achieve sale accounting. Remittances are reported within Pledged MSR liability expense. See Note 8 — MSR Related Financing Liabilities, at Fair Value.
(2)Includes $1.7 million and $10.9 million for the three and nine months ended September 30, 2026, respectively, and $4.2 million and $11.6 million for the three and nine months ended September 30, 2025, respectively, of ancillary income associated with transferred MSRs that do not achieve sale accounting and is subject to remittances reported within Pledged MSR liability expense.
Float balances on which we earn interest, referred to as float earnings (balances in custodial accounts, which represent collections of principal and interest that we receive from borrowers on behalf of investors and tax and insurance payments) are held in escrow by unaffiliated banks and are excluded from our consolidated balance sheets. Float balances amounted to $3.2 billion and $2.6 billion at September 30, 2026 and December 31, 2025, respectively. Average float balances were $3.7 billion and $3.8 billion for the three and nine months ended September 30, 2026, respectively, and $3.6 billion and $3.1 billion for the three and nine months ended September 30, 2025, respectively.