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DEBT (Tables) | 9 Months Ended
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Sep. 30, 2025
Debt Disclosure [Abstract] |
Schedule of 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. 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 |
The following table summarized components of debt for the years ended December 31, 2024 and 2023:
| December 31, 2024 |  | December 31, 2023
| Carrying Value(A) |  | Facility Inception Date |  | Final Stated Maturity(B) |  | Weighted Average Funding Cost |  | Collateral Carrying Value |  | Carrying Value
Funding Debt |  |  |  |  |  |  |  |  |  |  |
Warehouse Facility 1(C) | $ | 28,286 |  |  | August 2020 |  | November 2025 |  | 9.3 | % |  | $ | 33,214 |  |  | $ | 12,400 |
Warehouse Facility 2(D) | 61,007 |  |  | November 2022 |  | May 2025 |  | 8.4 |  |  | 62,756 |  |  | 147,629 |
Warehouse Facility 3(E) | 26,227 |  |  | October 2023 |  | October 2025 |  | 9.9 |  |  | 24,827 |  |  | 21,300 |
Warehouse Facility 4(F) | 68,426 |  |  | February 2023 |  | January 2026 |  | 8.8 |  |  | 72,367 |  |  | 5,944 |
Warehouse Facility 5(G) | 21,697 |  |  | October 2023 |  | n.a. |  | 10.2 |  |  | 21,216 |  |  | 22,600 |
REIT Warehouse(H) | 99,182 |  |  | October 2024 |  | October 2025 |  | 9.9 |  |  | 99,016 |  |  | — |
Warehouse Facility 6(I) | (392) |  |  | May 2024 |  | May 2026 |  | n.m. |  | — |  |  | — |
Warehouse Facility 7(J) | — |  |  | February 2023 |  | August 2025 |  | — |  |  | — |  |  | — |
Warehouse Facility 8(K) | — |  |  | March 2022 |  | December 2024 |  | — |  |  | — |  |  | 54,270 |
Warehouse Facility 9(L) | 861 |  |  | March 2024 |  | March 2025 |  | 11.3 |  |  | — |  |  | — |
Total funding debt | 305,294 |  |  |  |  |  |  |  |  |  |  | 264,143 |
MSR Financing |  |  |  |  |  |  |  |  |  |  |
Lender 1(M) | 39,781 |  |  | June 2024 |  | June 2026 |  | 16.9 |  |  | 69,542 |  |  | — |
Total MSR Financing | 39,781 |  |  |  |  |  |  |  |  |  |  | — |
Financed Retained Interests |  |  |  |  |  |  |  |  |  |  |
Financed retained interests(N) | 128,101 |  |  | April 2023 |  | Various(O) |  | 6.6 |  |  | 128,982 |  |  | 25,048 |
Total Financed Retained Interests | 128,101 |  |  |  |  |  |  |  |  |  |  | 25,048 |
Total Debt | $ | 473,176 |  |  |  |  |  |  |  |  |  |  | $ | 289,191 |
__________________ (A)Net of deferred financing costs. At December 31, 2024 and 2023 deferred financing costs were $1.7 million and $0.6 million, respectively. During the years ended December 31, 2024 and 2023, the Company amortized $1.0 million and $0.3 million of deferred financing costs, respectively. (B)Debt obligations with a stated maturity through the date of issuance of the Consolidated Financial Statements were refinanced, extended or repaid. (C)Warehouse Facility 1 bears variable interest at an annual benchmark rate of Secured Financing Overnight Rate (“SOFR”) plus a spread of 4.9% at December 31, 2024. (D)Warehouse Facility 2 bears interest at an annual benchmark rate of SOFR plus a spread of 4.0% at December 31, 2024. The facility also carries a 50 bps exit fee on non-ABS loans repurchased. (E)Under Warehouse Facility 3, the interest accrued under the loans is payable to the lender during the period the loans are held, and the Company will pay a variable exit fee, which is determined on a quarterly basis as follows: (i) the first $50 million of principal balance repurchased is subject to a 0.5% exit fee, and (ii) amounts in excess of $50 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. (F)Warehouse Facility 4 bears variable interest at an annual benchmark rate of SOFR plus a spread between 3.5% and 7.5%. A portion of the facility is also subject to a 0.5% non-use fee. (G)Under Warehouse Facility 5, the interest accrued under the loans is payable to the lender during the period the loans are held. (H)Under the REIT Warehouse, the interest accrued under the loans is payable to the lender during the period the loans are held. (I)Warehouse Facility 6 bears interest at an annual benchmark rate of SOFR, plus a spread of 3.5% at December 31, 2024. The facility also carries a 0.5% exit fee on all loans repurchased from the facility. (J)Warehouse Facility 7 bears interest at an annual benchmark rate of SOFR, plus a spread of 3.5% at December 31, 2024. (K)Warehouse Facility 8 was closed during the year ended December 31, 2024 and the date of closure is the final stated maturity date. (L)Under Warehouse Facility 9 the interest accrued under the loans is payable to the lender during the period the loans are held. (M)On June 7, 2024, the Company entered into a Loan and Security Agreement, as amended from time to time, (the “MSR Financing Agreement”) to provide the Company a senior secured financing facility in the form of a promissory note (the “MSR Facility”). The obligations of the Company under the MSR Financing Agreement are secured by the eligible servicing assets, which include servicing fees related to loan servicing rights owned by, or delegated to, the Company. Borrowings under the MSR Financing Agreement bear interest at 16.5% per annum. (N)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 of 50 - 55 bps depending on the tranche pledged. (O)The maturities of financed retained interests align with the terms of the underlying securities. The financed retained interest have maturity dates of August 2027 through March 2036.
Schedule of Maturities of Long-Term Debt | 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 |
Contractual maturities of recourse and nonrecourse debt obligations at December 31, 2024, are as follows:
Years Ending December 31, | Recourse |  | Nonrecourse |  | Total
2025 | $ | 61,868 |  |  | $ | 153,717 |  |  | $ | 215,585 |
2026 | 108,568 |  |  | — |  |  | 108,568 |
| $ | 170,436 |  |  | $ | 153,717 |  |  | $ | 324,153 |
The following table represents borrowing capacity of committed debt facilities at December 31, 2024:
| December 31, 2024
| Borrowing Capacity |  | Balance Outstanding |  | Available Financing
Funding Debt |  |  |  |  |
Warehouse Facility 1 | $ | 250,000 |  |  | $ | 28,286 |  |  | $ | 221,714 |
Warehouse Facility 2 | 350,000 |  |  | 61,007 |  |  | 288,993 |
Warehouse Facility 3 | 100,000 |  |  | 26,227 |  |  | 73,773 |
Warehouse Facility 4 | 335,300 |  |  | 68,568 |  |  | 266,732 |
REIT | 150,000 |  |  | 99,204 |  |  | 50,796 |
Warehouse Facility 6 | 250,000 |  |  | — |  |  | 250,000 |
Warehouse Facility 7 | 1,000 |  |  | — |  |  | 1,000 |
Warehouse Facility 9 | 10,550 |  |  | 861 |  |  | 9,689 |
MSR Financing |  |  |  |  |
Lender 1 | 40,000 |  |  | 40,000 |  |  | — |
Financed Retained Interests |  |  |  |  |
Retained Interest Facility | 250,000 |  |  | 129,005 |  |  | 120,995 |
| $ | 1,736,850 |  |  | $ | 453,158 |  |  | $ | 1,283,692 |

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