XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.25.1

SERVICING RIGHTS, AT FAIR VALUE | 3 Months Ended
--- | ---
Mar. 31, 2025
Transfers and Servicing [Abstract] |
SERVICING RIGHTS, AT FAIR VALUE | LOANS HELD FOR INVESTMENT, AT FAIR VALUE In April 2024, the Company executed a securitization of a pool of approximately $150.0 million of fixed-rate and adjustable-rate, performing, re-performing and non-performing residential mortgage loans that was recorded as a secured borrowing in which the loans remained on the consolidated balance sheet as loans held for investment, at fair value. A summary of the changes in the balance of loans held for investment is as follows:
|  | Three Months Ended March 31, |  |  |  |
|  | 2025 |  | 2024 |  |  |  |  |  |
Balance at beginning of period |  | $ | 116,627 |  |  | $ | — |  |  |  |  |  |  |
Principal payments |  | (3,138) |  |  | — |  |  |  |  |  |  |
Fair value gain |  | 958 |  |  | — |  |  |  |  |  |  |
Balance at end of period |  | $ | 114,447 |  |  | $ | — |  |  |  |  |  |  |
The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for investment.
|  | March 31, 2025 |  | December 31, 2024
|  | Fair value |  | UPB |  | Difference |  | Fair value |  | UPB |  | Difference
Current through 89 days delinquent |  | $ | 108,238 |  |  | $ | 131,574 |  |  | $ | (23,336) |  |  | $ | 111,010 |  |  | $ | 135,335 |  |  | $ | (24,325) |
90+ days delinquent(1) |  | 6,209 |  |  | 8,223 |  |  | (2,014) |  |  | 5,617 |  |  | 7,600 |  |  | (1,983) |
Total |  | $ | 114,447 |  |  | $ | 139,797 |  |  | $ | (25,350) |  |  | $ | 116,627 |  |  | $ | 142,935 |  |  | $ | (26,308) |
(1) 90+ days delinquent loans are on non-accrual status. Income from loans held for investment is included in other income on the consolidated statement of operations, and includes $1.5 million of interest income and $1.0 million of fair value gain for the three months ended March 31, 2025. SERVICING RIGHTS, AT FAIR VALUE The outstanding principal balance of the servicing portfolio was comprised of the following:
|  | March 31, 2025 |  | December 31, 2024
Agency |  | $ | 64,795,351 |  |  | $ | 65,092,009 |
Government |  | 40,523,662 |  |  | 39,909,978 |
Other |  | 11,285,140 |  |  | 10,969,997 |
Total servicing portfolio |  | $ | 116,604,153 |  |  | $ | 115,971,984 |
A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows:
|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Balance at beginning of period |  | $ | 1,615,510 |  |  | $ | 1,985,718 |  |  |  |  |
Servicing rights additions |  | 52,686 |  |  | 48,375 |  |  |  |  |
Sales proceeds, net |  | (5,362) |  |  | (56,113) |  |  |  |  |
Changes in fair value: |  |  |  |  |  |  |  |
Due to changes in valuation inputs or assumptions |  | (23,689) |  |  | 28,244 |  |  |  |  |
Due to collection/realization of cash flows |  | (36,176) |  |  | (35,999) |  |  |  |  |
Realized gains (losses) on sales of servicing rights(1) |  | 62 |  |  | (61) |  |  |  |  |
Total changes in fair value |  | (59,803) |  |  | (7,816) |  |  |  |  |
Balance at end of period(2) |  | $ | 1,603,031 |  |  | $ | 1,970,164 |  |  |  |  |
(1) Includes realized MSR sale gain and broker fees. (2) Servicing assets of $1.6 billion and $2.0 billion, respectively, for the three months ended March 31, 2025 and 2024, are presented net of servicing liabilities of $18.5 million and $15.8 million, respectively. The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations:
|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Contractual servicing fees |  | $ | 81,969 |  |  | $ | 95,735 |  |  |  |  |
Late, ancillary and other fees |  | 22,309 |  |  | 28,324 |  |  |  |  |
Servicing fee income |  | $ | 104,278 |  |  | $ | 124,059 |  |  |  |  |
The following is a summary of the components of change in fair value of servicing rights, net of hedge as reported in the Company’s consolidated statements of operations:
|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Changes in fair value: |  |  |  |  |  |  |  |
Due to collection/realization of cash flows |  | $ | (36,176) |  |  | $ | (35,999) |  |  |  |  |
Due to changes in valuation inputs or assumptions |  | (23,689) |  |  | 28,244 |  |  |  |  |
Realized gain on sale of servicing rights |  | 62 |  |  | 44 |  |  |  |  |
Net gain (loss) from derivatives hedging servicing rights |  | 18,804 |  |  | (36,319) |  |  |  |  |
Valuation changes in servicing rights, net of hedging gains and losses |  | (4,823) |  |  | (8,031) |  |  |  |  |
Other realized losses on sales of servicing rights (1) |  | (104) |  |  | (1,240) |  |  |  |  |
Changes in fair value of servicing rights, net |  | $ | (41,103) |  |  | $ | (45,270) |  |  |  |  |
(1)Includes the (provision) recovery for estimated losses and broker fees on MSR sales. The table below illustrates hypothetical changes in fair values of servicing rights, caused by assumed immediate changes to key assumptions that are used to determine fair value.
|  | March 31, 2025 |  | December 31, 2024
Fair Value of Servicing Rights, net |  | $ | 1,603,031 |  |  | $ | 1,615,510 |
Change in Fair Value from adverse changes: |  |  |  |
Discount Rate: |  |  |  |
Increase 1% |  | (61,978) |  |  | (62,832) |
Increase 2% |  | (120,196) |  |  | (122,064) |
Cost of Servicing: |  |  |  |
Increase 10% |  | (17,685) |  |  | (17,403) |
Increase 20% |  | (35,430) |  |  | (34,857) |
Prepayment Speed: |  |  |  |
Increase 10% |  | (19,417) |  |  | (16,609) |
Increase 20% |  | (37,931) |  |  | (32,518) |
Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in servicing rights values may differ significantly from those displayed above.

X
- References No definition available. + Details
Name: | us-gaap_TransfersAndServicingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 210 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-04(11)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479170/946-210-S99-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481420/860-30-50-1A Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a)(7) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481229/860-50-50-4 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481326/860-20-50-3 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b)(2)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481326/860-20-50-3 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481326/860-20-50-4 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481229/860-50-50-3 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(4)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481229/860-50-50-3 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(5) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481229/860-50-50-3 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481229/860-50-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/860/tableOfContent Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481326/860-20-50-3 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (cc) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481326/860-20-50-3 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a)(5)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481326/860-20-50-4 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481326/860-20-50-4 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4D -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481326/860-20-50-4D Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481420/860-30-50-1A Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481420/860-30-50-7 Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481229/860-50-50-2 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481229/860-50-50-2 Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481229/860-50-50-4 + Details
Name: | us-gaap_TransfersAndServicingOfFinancialAssetsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration