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LOANS HELD FOR INVESTMENT, AT FAIR VALUE
 9 Months Ended
Sep. 30, 2025
Transfers and Servicing [Abstract]  
LOANS HELD FOR INVESTMENT, 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
September 30,		Nine Months Ended
September 30,
2025202420252024
Balance at beginning of period$111,591 $120,287 $116,627 $— 
Loans securitized, at fair value
— — — 122,532 
Principal payments(3,004)(1,577)(9,117)(3,502)
Fair value gain2,754 3,356 3,831 3,036 
Balance at end of period$111,341 $122,066 $111,341 $122,066 
The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for investment.

September 30, 2025December 31, 2024
Fair valueUPBDifferenceFair valueUPBDifference
Current through 89 days delinquent$102,959 $123,147 $(20,188)$111,010 $135,335 $(24,325)
90+ days delinquent(1)
8,382 10,671 (2,289)5,617 7,600 (1,983)
Total$111,341 $133,818 $(22,477)$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 $1.4 million and $4.5 million of interest income for the three and nine months ended September 30, 2025, respectively, and fair value gains of $2.8 million and $3.8 million for the three and nine months ended September 30, 2025, respectively.
SERVICING RIGHTS, AT FAIR VALUE
The outstanding principal balance of the servicing portfolio was comprised of the following:
September 30,
2025		December 31,
2024
Agency
$64,376,842 $65,092,009 
Government41,814,053 39,909,978 
Other
12,037,251 10,969,997 
Total servicing portfolio$118,228,146 $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
September 30,		Nine Months Ended
September 30,
2025202420252024
Balance at beginning of period$1,616,854 $1,566,463 $1,615,510 $1,985,718 
Servicing rights additions
69,163 62,039 188,789 176,529 
Sales proceeds, net
(11,642)(8,466)(27,478)(503,777)
Changes in fair value:
Due to changes in valuation inputs or assumptions(12,007)(52,557)(35,551)(8,690)
Due to collection/realization of cash flows(44,154)(41,498)(123,162)(119,783)
Realized gains (losses) on sale of servicing rights(1)
45 32 151 (3,984)
Total changes in fair value
(56,116)(94,023)(158,562)(132,457)
Balance at end of period(2)
$1,618,259 $1,526,013 $1,618,259 $1,526,013 
(1)    Includes realized MSR sale gain and broker fees.
(2)    Servicing assets of $1.6 billion and $1.5 billion at September 30, 2025 and September 30, 2024, respectively, are presented net of servicing liabilities of $19.7 million and $16.7 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
September 30,		Nine Months Ended
September 30,
2025202420252024
Contractual servicing fees$87,034 $90,769 $252,815 $279,911 
Late, ancillary and other fees24,749 33,364 71,455 93,362 
Servicing fee income$111,783 $124,133 $324,270 $373,273 

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
September 30,		Nine Months Ended
September 30,
2025202420252024
Changes in fair value:
Due to collection/realization of cash flows$(44,154)$(41,498)$(123,162)$(119,783)
Due to changes in valuation inputs or assumptions(12,007)(52,557)(35,551)(8,690)
Realized gains (losses) on sale of servicing rights
45 32 151 (2,980)
Net (losses) gains from derivatives hedging servicing rights
10,129 37,624 19,369 (23,876)
Valuation changes in servicing rights, net of hedging gains and losses
(1,833)(14,901)(16,031)(35,546)
Other realized losses on sales of servicing rights (1)
(211)(164)(484)(7,290)
Changes in fair value of servicing rights, net$(46,198)$(56,563)$(139,677)$(162,619)
(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.


September 30,
2025		December 31,
2024
Fair Value of Servicing Rights, net$1,618,259 $1,615,510 
Change in Fair Value from adverse changes:
Discount Rate:
Increase 1%(61,983)(62,832)
Increase 2%(121,186)(122,064)
Cost of Servicing:
Increase 10%(18,304)(17,403)
Increase 20%(36,720)(34,857)
Prepayment Speed:
Increase 10%(19,219)(16,609)
Increase 20%(38,167)(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.