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DEBT | 9 Months Ended
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Sep. 30, 2025
Debt Disclosure [Abstract] |
DEBT | DEBT The following table summarizes the Company’s debt components at September 30, 2025 and December 31, 2024:
|  | September 30, 2025 |  | December 31, 2024
|  | Carrying Value |  | Facility Inception Date |  | Final Stated Maturity(A) |  | Weighted Average Funding Cost |  | Collateral Carrying Value |  | Carrying Value
Debt Carried at Cost |  |  |  |  |  |  |  |  |  |  |  |
Funding Debt |  |  |  |  |  |  |  |  |  |  |  |
Warehouse Facility 1(B) |  | $ | — |  |  | August 2020 |  | July 2025 |  | — | % |  | $ | — |  |  | $ | 28,286 |
Warehouse Facility 2(C) |  | 21,270 |  |  | November 2022 |  | May 2026 |  | 6.4 |  |  | 24,584 |  |  | 61,007 |
Warehouse Facility 3(D) |  | — |  |  | October 2023 |  | October 2025 |  | — |  |  | — |  |  | 26,227 |
Warehouse Facility 4(E) |  | 59,647 |  |  | February 2023 |  | January 2026 |  | 6.7 |  |  | 60,367 |  |  | 68,568 |
Warehouse Facility 5(F) |  | — |  |  | October 2023 |  | n.a. |  | — |  |  | — |  |  | 21,697 |
REIT Warehouse(G) |  | 42,106 |  |  | October 2024 |  | December 2026 |  | 7.7 |  |  | 38,510 |  |  | 99,204 |
Warehouse Facility 6(H) |  | — |  |  | May 2024 |  | May 2026 |  | — |  |  | — |  |  | — |
Warehouse Facility 7(I) |  | — |  |  | February 2023 |  | August 2025 |  | — |  |  | — |  |  | — |
Warehouse Facility 8(J) |  | — |  |  | March 2022 |  | n.a. |  | — |  |  | — |  |  | — |
Warehouse Facility 9(K) |  | — |  |  | March 2024 |  | March 2025 |  | — |  |  | — |  |  | 861 |
Warehouse Facility 10(L) |  | 17,637 |  |  | April 2025 |  | April 2026 |  | 6.5 |  |  | 17,929 |  |  | — |
Warehouse Facility 11(M) |  | 60,946 |  |  | July 2025 |  | June 2027 |  | 6.5 |  |  | 62,029 |  |  | — |
Digital Asset Loan Facility(N) |  | 9,893 |  |  | April 2025 |  | October 2026 |  | 13.9 |  |  | 10,032 |  |  | — |
Total Funding Debt |  | 211,499 |  |  |  |  |  |  |  |  |  |  | 305,850 |
MSR Financing |  |  |  |  |  |  |  |  |  |  |  |
Lender 1(O) |  | 40,000 |  |  | June 2024 |  | June 2026 |  | 16.8 |  |  | 65,907 |  |  | 40,000 |
Financed Retained Interests |  |  |  |  |  |  |  |  |  |  |  |
Retained Interest Facility(P) |  | 199,129 |  |  | April 2023 |  | Various(Q) |  | 6.6 |  |  | 199,178 |  |  | 129,005 |
Total Debt Carried at Cost, Gross |  | 450,628 |  |  |  |  |  |  |  |  |  |  | 474,855 |
Unamortized deferred financing costs(R) |  | (2,840) |  |  |  |  |  |  |  |  |  |  | (1,679) |
Total Debt Carried at Cost, Net |  | 447,788 |  |  |  |  |  |  |  |  |  |  | 473,176 |
Debt at Fair Value |  |  |  |  |  |  |  |  |  |  |  |
FCC(S) |  | 1,156 |  |  |  |  |  |  |  |  |  |  | — |
Democratized Prime YLDS(T) |  | 17,806 |  |  |  |  |  |  |  |  |  |  | — |
Total Debt Carried at Fair Value |  | 18,962 |  |  |  |  |  |  |  |  |  |  | — |
Total Debt |  | $ | 466,750 |  |  |  |  |  |  |  |  |  |  | $ | 473,176 |
(A) Debt obligations with a stated maturity through the date of issuance of the Condensed Consolidated Financial Statements were refinanced, extended or repaid. (B) Warehouse Facility 1 was closed in July 2025. (C) Warehouse Facility 2 bears interest at Secured Financing Overnight Rate (“SOFR”) plus a spread of 2.25% at September 30, 2025. (D) Warehouse Facility 3 was paid down in September 2025 and subsequently reached maturity. The interest accrued on the loans was payable to the lender during the period the loans are held, and the Company paid a variable exit fee, which was determined on a quarterly basis as follows: (i) the first $50.0 million of principal balance repurchased is subject to a 0.5% exit fee, and (ii) amounts in excess of $50.0 million are subject to an exit fee that are between 0.125% to 1.50% of the price at which the Company securitizes repurchased loans (or otherwise agreed between the Company and the lender for repurchased loans not securitized). (E) Warehouse Facility 4 bears variable interest at SOFR plus a spread between 2.15% and 5.50% at September 30, 2025. A portion of the facility is also subject to a 0.5% non-use fee. (F) Warehouse Facility 5 is an advance facility in which the lender earns carry on collateral in the facility. (G) REIT Warehouse bears interest at SOFR plus a spread of (i) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is greater than or equal to $100.0 million, 3.00% or (ii) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is less than $100.0 million, 3.50%. The facility also carries a 0.15% exit fee on repurchased, non-securitized loans which in aggregate cannot exceed $0.5 million in a given calendar year. (H) Warehouse Facility 6 bears interest at SOFR, plus a spread of 3.5% at September 30, 2025. The facility also carries a 0.5% exit fee on all loans repurchased from the facility. (I) Warehouse Facility 7 was closed in August 2025. (J) Warehouse Facility 8 was closed in December 2024. (K) Warehouse Facility 9 was closed in March 2025. (L) Warehouse Facility 10 bears interest at SOFR, plus a spread of 2.35%. (M) Warehouse Facility 11 bears interest at SOFR, subject to a 2.0% floor, plus a spread of 1.75%. (N) The Digital Asset Loan Facility bears interest at a rate of 13.5%. (O) The MSR Note bears interest at 16.5% per annum and secured by eligible servicing assets, which include servicing fees related to loan servicing rights owned by, or delegated to, the Company. (P) Under the Retained Interest Facility, the interest accrued on the securities and beneficial interests is payable to the lender during the period the loans are held plus a spread between 0.50% and 0.55%, depending on the tranche to which the Company pledges collateral. (Q) The maturities of financed retained interests align with the terms of the underlying securities. The financed retained interest have maturity dates through August 2055. (R) During the three and nine months ended September 30, 2025 and 2024, the Company amortized $0.3 million and $0.7 million, and $0.1 million and $0.7 million, respectively, of deferred financing costs, respectively. (S) Interest accrues at a rate of SOFR less 0.5% based on the face-amount certificates issued by FCC. Certificates mature 20 years from the issue date, but may be surrendered at any time by the holder at face amount, plus accrued interest minus any applicable expenses or fees. (T) Interest is accrued at an hourly rate that is agreed upon through a Dutch auction process; during the three and nine months ended September 30, 2025, the average interest rate was 9.0%. YLDS can be redeemed by the holder at face amount, plus accrued interest minus any applicable expenses or fees on demand. Maturities Contractual maturities of recourse and nonrecourse debt obligations at September 30, 2025, are as follows:
Years Ending December 31, |  | Recourse |  | Nonrecourse |  | Total
2025 (remainder) |  | $ | — |  |  | $ | — |  |  | $ | — |
2026 |  | 138,554 |  |  | 51,999 |  |  | 190,553 |
2027 |  | — |  |  | 60,946 |  |  | 60,946 |
2028 |  | — |  |  | — |  |  | — |
2029 |  | — |  |  | — |  |  | — |
Thereafter |  | — |  |  | 199,129 |  |  | 199,129 |
|  | $ | 138,554 |  |  | $ | 312,074 |  |  | $ | 450,628 |
Borrowing Capacity The following table represents borrowing capacity of committed debt facilities at September 30, 2025:
|  | September 30, 2025
Debt |  | Borrowing Capacity |  | Balance Outstanding |  | Available Financing
Funding Debt |  |  |  |  |  |
Warehouse Facility 1 |  | $ | — |  |  | $ | — |  |  | $ | — |
Warehouse Facility 2 |  | 150,000 |  |  | 21,270 |  |  | 128,730 |
Warehouse Facility 3 |  | 100,000 |  |  | — |  |  | 100,000 |
Warehouse Facility 4 |  | 335,300 |  |  | 59,647 |  |  | 275,653 |
REIT Warehouse |  | 200,000 |  |  | 42,106 |  |  | 157,894 |
Warehouse Facility 6 |  | 250,000 |  |  | — |  |  | 250,000 |
Warehouse Facility 7 |  | — |  |  | — |  |  | — |
Warehouse Facility 8 |  | — |  |  | — |  |  | — |
Warehouse Facility 9 |  | — |  |  | — |  |  | — |
Warehouse Facility 10 |  | 300,000 |  |  | 17,637 |  |  | 282,363 |
Warehouse Facility 11 |  | 200,000 |  |  | 60,946 |  |  | 139,054 |
Digital Asset Loan Facility |  | 30,000 |  |  | 9,893 |  |  | 20,107 |
MSR Financing |  |  |  |  |  |
Lender 1 |  | 40,000 |  |  | 40,000 |  |  | — |
Financed Retained Interests |  |  |  |  |  |
Retained Interest Facility |  | 250,000 |  |  | 199,129 |  |  | 50,871 |
|  | $ | 1,855,300 |  |  | $ | 450,628 |  |  | $ | 1,404,672 |
Certain debt obligations are subject to customary loan covenants, such as minimum tangible net worth, minimum liquidity, maximum leverage ratios, required range of net income or loss during specified periods, periodic financial reporting requirements, and event of default provisions, including event of default provisions triggered by certain specified declines in the Company’s equity or a failure to maintain a specified tangible net worth, liquidity, or indebtedness to tangible net worth ratio. The Company was in compliance with all of its debt covenants at September 30, 2025. Facilities The following summarizes the debt facilities that the Company entered into or amended during the nine months ended September 30, 2025 and during the year ended December 31, 2024. Warehouse Facility 2 In December 2024, the Company amended Warehouse Facility 2 to reduce the borrowing limit to $250.0 million and to lower the interest rate from SOFR plus a spread of 4% to SOFR plus a spread of 3%. In May 2025, the Company and its lender amended Warehouse Facility 2 to reduce the borrowing capacity to $150.0 million, expand eligible collateral types, and reduce certain funding costs. The amended facility has an initial maturity date of May 2026, and borrowings under the facility bear interest at a rate of SOFR plus a spread of 2.3%. Warehouse Facility 3 In February 2024, the Company amended Warehouse Facility 3 to temporarily increase the borrowing limit from $100.0 million to $200.0 million for the period February 1, 2024 through April 30, 2024. Warehouse Facility 4 In March 2024, the Company amended Warehouse Facility 4 to establish a second class of buyer under the facility. Borrowings to Class A and Class B Buyers were limited to $200.0 million and $37.50 million, respectively, with an aggregate borrowing limit of $237.50 million. In January 2025, the Company further amended Warehouse Facility 4 to increase the aggregate borrowing limit to $335.3 million and extend the maturity date to January 2026. REIT Warehouse In October 2024, the Company entered into a secured warehouse credit facility with a borrowing limit of $150.0 million. In August 2025, the Company amended the REIT Warehouse to increase the borrowing limit to $200.0 million, extend the maturity date to December 2026, and add an exit fee of 0.15% that is not to exceed $0.5 million in any calendar year. It also amended the interest rate to be SOFR plus a spread of (i) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is greater than or equal to $100.0 million, 3.00% or (ii) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is less than $100.0 million, 3.50%. MSR Note In June 2024, the Company entered into a loan and security agreement with Lender 1 under which the Company borrowed the MSR Note that had an initial borrowing limit of $30.0 million. In September 2024, the Company and Lender 1 amended the MSR Note to increase the borrowing limit to $40.0 million. FCC During the nine months ended September 30, 2025, FCC issued $1.2 million face-amount certificates to third parties redeemable upon redemption of YLDS. The certificates entitle the certificate owner to receive, at certificate maturity, a stated amount of money, interest, or credits declared from time to time by FCC, at its discretion. The certificates issued by FCC are not insured by any government agency or other entity. Democratized Prime YLDS During the nine months ended September 30, 2025, FCC issued $17.8 million face-amount certificates to third parties, redeemable upon redemption of YLDS. Democratized Prime YLDS represents liabilities where third parties have lent YLDS to the Company through the Democratized Prime platform. The Company pays interest based on a rate agreed upon through a Dutch auction process defined within the pool and can be redeemed each hour for YLDS. The YLDS are collateralized by pools of HELOC loans and are not insured by any government agency or other entity. Digital Asset Loan Facility In April 2025, the Company executed a master participation agreement with an asset management firm that allows the Company to grant 100% participation interest for digital asset backed loans it owns. The $30.0 million facility, with the ability to increase to a maximum facility size of $50.0 million, matures in October 2026, bears interest at a rate of 13.5%, and has a purchase period through April 2026. Warehouse Facility 10 In April 2025, the Company entered into a master repurchase agreement with a major banking institution that contains customary debt covenants, a borrowing capacity of $300.0 million, including $1.0 million in committed capacity, and an initial maturity date in April 2026, with the option to renew at maturity. Borrowings under the facility bear interest at a rate of SOFR plus 2.35%. Warehouse Facility 11 In June 2025, the Company executed a master repurchase agreement with a major banking institution that had a facility limit up to $100.0 million, with the option to temporarily upsize to $200.0 million and has an initial maturity date in June 2027 with the option to renew at maturity. Borrowings under the facility bear interest at a rate of SOFR, subject to a floor of 2.0%, plus 1.75% that results in a minimum rate of 3.75%. In July 2025, the Company amended Warehouse Facility 11 to permanently increase the facility limit to $200.0 million.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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