v3.26.3
MSR Related Financing Liabilities, at Fair Value (Tables)
 9 Months Ended
Sep. 30, 2026
Transfers and Servicing [Abstract]  
Schedule of Activity Related to Financing Liability - MSRs Pledged
The following table presents the activity of the MSR related financing liabilities, at fair value that are classified as Level 3 within the valuation hierarchy.
MSR related financing liabilities - Fair value
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Beginning balance
$729.0 $818.1 $842.0 $846.9 
ESS issuances— 12.7 8.6 12.7 
MSR transfers
9.8 7.9 25.2 22.1 
ESS settlement (1)
— — (20.8)— 
Derecognition of financing liability (2) (3) (4)
(126.6)— (249.7)(12.2)
Fair value (gain) loss
Changes in fair value due to inputs and assumptions 15.3 1.2 59.0 5.3 
Realization of cash flows
(14.4)(18.0)(51.2)(52.8)
Total fair value (gain) loss0.9 (16.8)7.8 (47.5)
Ending balance
$613.1 $822.0 $613.1 $822.0 
(1)On January 5, 2026 we completed a sale 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 7 – Mortgage Servicing.
(2)During the three months ended September 30, 2026, we derecognized $85.1 million of the MAV Pledged MSR liability upon sale of the related MSRs by MAV to third parties with a UPB of $5.1 billion.
(3)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 upon our transfer of title to the MSRs in connection with Rithm’s exercise of its termination right of the agreement with Onity disclosed below under “Rithm Transactions.”
(4)On June 30, 2026, we derecognized $105.9 million of the Pledged MSR liability associated with other MSR capital partners with a UPB of $5.9 billion as MSR sale accounting criteria were met.
Schedule of Assets, Liabilities Related to MSR Transfer Agreements
The following table presents MSR related financing liabilities carried at fair value which include pledged MSR liabilities recorded in connection with MSR transfers, subservicing retained, that do not qualify for sale accounting, and MSR excess servicing spread (ESS) financing liability carried at fair value pursuant to our election of the fair value option for risk management purposes.
Outstanding Balance
Borrowing TypeSeptember 30, 2026December 31, 2025
Pledged MSR liability, at fair value (1) (2)
$346.8 $573.2 
ESS financing liability, at fair value (3)
266.3 268.8 
Total MSR related financing liabilities, at fair value
$613.1 $842.0 
(1)MSRs transferred in transactions which do not qualify for sale accounting treatment. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and the related financing liability (referred to as Pledged MSR liability) on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. The fair value of the Pledged MSR liability may differ from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is contractually retained by Onity or other contractual cash flows.
(2)Includes $38.5 million and $110.6 million fair value, and $3.3 billion and $8.3 billion UPB related to Rithm at September 30, 2026 and December 31, 2025, respectively. On October 31, 2025, we were notified by Rithm of its intent not to renew its subservicing agreements. As of September 30, 2026, Rithm and Onity do not expect to receive the required consents to transfer the remaining portfolio - see below under “Rithm Transactions”.
(3)Consists of the obligation to remit to third parties a specified percentage of future servicing fee collections (excess servicing spread) on reference pools of mortgage loans, which we are entitled to as owner of the related MSRs. The servicing spread remittance is reported in Pledged MSR liability expense and fair value gains and losses of the ESS financing liability are reported in MSR valuation adjustments, net - See Note 9 – MSR Valuation Adjustments, Net.
Schedule of Results of Operations in Connection With MSR Transfer Agreements that Do Not Qualify for Sale Accounting
The following table presents the Pledged MSR liability expense recorded in connection with MSR sale agreements that do not qualify for sale accounting (transferred MSR) and ESS financing liabilities.
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Servicing fees collected on transferred MSRs
$19.7 $31.4 $78.2 $96.3 
Less: Subservicing fee retained by Onity
(3.3)(5.3)(12.8)(16.7)
Ancillary fee/income and other settlement (including expense reimbursement)1.0 2.8 7.4 8.0 
Transferred MSR net servicing fee remittance17.4 28.9 72.8 87.7 
ESS servicing spread remittance12.5 12.7 37.9 38.9 
Pledged MSR liability expense$29.9 $41.7 $110.7 $126.6 
Three Months Ended March 31,
Transfer of Certain Financial Assets Accounted for as Secured Borrowings The servicing transfer to Rithm’s own servicing platform began in the first quarter of 2026. The following table summarizes the timing of transfers to Rithm by servicing relationship:
Nine Months Ended September 30, 2026
UPB of loans transferred ($ billions)
RMSRSubservicing
First quarter (1)
$1.2 $0.6 
Second quarter (2)
— 21.2 
Third quarter (3)
3.4 0.6 
Total$4.6 $22.4 
(1)Transfers completed in March 2026.
(2)Transfers of $11.2 billion and $10.0 billion in May and June 2026, respectively.
(3)Transfers completed in August 2026.