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Residential Whole Loans | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Residential Whole Loans | Residential Whole Loans Included on the Company’s consolidated balance sheets at September 30, 2025 and December 31, 2024 are approximately $8.8 billion and $8.8 billion, respectively, of residential whole loans generally arising from the Company’s interests in certain trusts established to acquire the loans and certain entities established in connection with its loan securitization transactions. The Company has assessed that these entities are required to be consolidated for financial reporting purposes. Starting in the second quarter of 2021, the Company elected the fair value option for all loan acquisitions, including loans originated by Lima One subsequent to its acquisition by the Company. Prior to the second quarter of 2021, the fair value option was typically elected only for loans that were 60 or more days delinquent at purchase. The following table presents the components of the Company’s Residential whole loans, and the accounting model designated at September 30, 2025 and December 31, 2024:
|  | Held at Carrying Value |  | Held at Fair Value |  | Total
(Dollars in Thousands) |  | September 30, 2025 |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024
Non-QM loans |  | $ | 615,461 |  |  | $ | 722,392 |  |  | $ | 4,507,465 |  |  | $ | 3,568,694 |  |  | $ | 5,122,926 |  |  | $ | 4,291,086 |
Business purpose loans: |  |  |  |  |  |  |  |  |  |  |  |
Single-family rental loans (1) |  | $ | 92,023 |  |  | $ | 108,203 |  |  | $ | 1,154,572 |  |  | $ | 1,248,197 |  |  | $ | 1,246,595 |  |  | $ | 1,356,400 |
Single-family transitional loans (2) (3) |  | 7,051 |  |  | 22,430 |  |  | 785,028 |  |  | 1,078,425 |  |  | 792,079 |  |  | 1,100,855 |
Multifamily transitional loans |  | — |  |  | — |  |  | 604,144 |  |  | 938,926 |  |  | 604,144 |  |  | 938,926 |
Total Business purpose loans |  | $ | 99,074 |  |  | $ | 130,633 |  |  | $ | 2,543,744 |  |  | $ | 3,265,548 |  |  | $ | 2,642,818 |  |  | $ | 3,396,181 |
Legacy RPL/NPL loans |  | 424,517 |  |  | 457,654 |  |  | 581,719 |  |  | 624,895 |  |  | 1,006,236 |  |  | 1,082,549 |
Other loans |  | — |  |  | — |  |  | 51,937 |  |  | 52,073 |  |  | 51,937 |  |  | 52,073 |
Allowance for Credit Losses |  | (10,083) |  |  | (10,665) |  |  | — |  |  | — |  |  | (10,083) |  |  | (10,665) |
Total Residential whole loans |  | $ | 1,128,969 |  |  | $ | 1,300,014 |  |  | $ | 7,684,865 |  |  | $ | 7,511,210 |  |  | $ | 8,813,834 |  |  | $ | 8,811,224 |
Number of loans |  | 5,069 |  |  | 5,582 |  |  | 18,647 |  |  | 18,588 |  |  | 23,716 |  |  | 24,170 |
(1)No loans were held-for-sale as of September 30, 2025 and December 31, 2024. There were no gains/(losses) on held-for-sale loans for the nine months ended September 30, 2025. For the three months ended March 31, 2024, the Company recorded a $0.5 million gain on loans resulting from their sale, which were held-for-sale as of December 31, 2023. There were no gains/(losses) on held-for-sale loans for the three months ended June 30, 2024 and September 30, 2024. (2)Includes $323.0 million and $442.4 million of loans collateralized by new construction projects at origination as of September 30, 2025 and December 31, 2024, respectively. (3)No loans were held-for-sale as of September 30, 2025 and December 31, 2024. For the three months ended March 31, 2025, the Company recorded a $0.5 million loss on these loans resulting from the adjustment of their carrying value to the lower of cost of market. For the three months ended June 30, 2025, the Company recorded a $0.3 million loss on these loans resulting from their sale. There were no gains/(losses) on held-for-sale loans for the three months ended September 30, 2025. There were no gains/(losses) on held-for-sale loans for the nine months ended September 30, 2024. The following tables present additional information regarding the Company’s Residential whole loans: September 30, 2025
|  | Asset Amount |  | Fair Value |  | Unpaid Principal Balance (“UPB”) |  | Weighted Average Coupon (1) (2) |  | Weighted Average Term to Maturity (Months) |  | Weighted Average LTV Ratio (3) |  | Weighted Average Original FICO (4) |  | Aging by UPB |  | 60+ Days Past Due %
(Dollars In Thousands) |  |  |  |  |  |  |  |  |  |  | Past Due Days |
|  |  |  |  |  |  |  | Current |  | 30-59 |  | 60-89 |  | 90+ |
Non-QM loans |  | $ | 5,120,744 |  |  | $ | 5,105,895 |  |  | $ | 5,120,904 |  |  | 6.72 | % |  | 338 |  | 64 | % |  | 738 |  | $ | 4,780,553 |  |  | $ | 130,895 |  |  | $ | 47,995 |  |  | $ | 161,461 |  |  | 4.1 | %
Business purpose loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family rental |  | $ | 1,245,766 |  |  | $ | 1,248,466 |  |  | $ | 1,267,818 |  |  | 6.33 | % |  | 313 |  | 67 | % |  | 740 |  | $ | 1,208,637 |  |  | $ | 18,900 |  |  | $ | 4,056 |  |  | $ | 36,225 |  |  | 3.2 | %
Single-family transitional (5) | 791,019 |  |  | 791,443 |  |  | 804,252 |  |  | 10.39 | % |  | 6 |  | 69 | % |  | 749 |  | 667,779 |  |  | 33,374 |  |  | 18,293 |  |  | 84,806 |  |  | 12.8 | %
Multifamily transitional (5) |  | 604,144 |  |  | 604,144 |  |  | 635,928 |  |  | 9.94 | % |  | 3 |  | 64 | % |  | 752 |  | 533,567 |  |  | 55,599 |  |  | 6,210 |  |  | 40,552 |  |  | 7.4 | %
Total business purpose loans |  | $ | 2,640,929 |  |  | $ | 2,644,053 |  |  | $ | 2,707,998 |  |  | 8.38 | % |  |  |  | 67 | % |  |  |  | $ | 2,409,983 |  |  | $ | 107,873 |  |  | $ | 28,559 |  |  | $ | 161,583 |  |  | 7.0 | %
Legacy RPL/NPL loans |  | 1,000,224 |  |  | 1,020,640 |  |  | 1,128,259 |  |  | 5.10 | % |  | 246 |  | 54 | % |  | 647 |  | 794,824 |  |  | 116,852 |  |  | 41,589 |  |  | 174,994 |  |  | 19.2 | %
Other loans |  | 51,937 |  |  | 51,937 |  |  | 60,963 |  |  | 3.43 | % |  | 311 |  | 63 | % |  | 757 |  | 60,586 |  |  | 377 |  |  | — |  |  | — |  |  | — | %
Residential whole loans, total or weighted average |  | $ | 8,813,834 |  |  | $ | 8,822,525 |  |  | $ | 9,018,124 |  |  | 7.02 | % |  |  |  | 64 | % |  |  |  | $ | 8,045,946 |  |  | $ | 355,997 |  |  | $ | 118,143 |  |  | $ | 498,038 |  |  | 6.8 | %
December 31, 2024
|  | Asset Amount |  | Fair Value |  | Unpaid Principal Balance (“UPB”) |  | Weighted Average Coupon (1) (2) |  | Weighted Average Term to Maturity (Months) |  | Weighted Average LTV Ratio (3) |  | Weighted Average Original FICO (4) |  | Aging by UPB |  | 60+ Days Past Due %
(Dollars In Thousands) |  |  |  |  |  |  |  |  |  |  | Past Due Days |
|  |  |  |  |  |  |  | Current |  | 30-59 |  | 60-89 |  | 90+ |
Non-QM loans |  | $ | 4,288,961 |  |  | $ | 4,258,298 |  |  | $ | 4,408,660 |  |  | 6.50 | % |  | 339 |  | 64 | % |  | 735 |  | $ | 4,114,436 |  |  | $ | 124,765 |  |  | $ | 50,619 |  |  | $ | 118,840 |  |  | 3.8 | %
Business purpose loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family rental | $ | 1,356,034 |  |  | $ | 1,355,965 |  |  | $ | 1,416,705 |  |  | 6.36 | % |  | 321 |  | 68 | % |  | 739 |  | $ | 1,346,312 |  |  | $ | 15,661 |  |  | $ | 5,445 |  |  | $ | 49,287 |  |  | 3.9 | %
Single-family transitional (5) | 1,099,466 |  |  | 1,099,700 |  |  | 1,106,631 |  |  | 10.44 | % |  | 5 |  | 67 | % |  | 750 |  | 957,266 |  |  | 33,393 |  |  | 15,964 |  |  | 100,008 |  |  | 10.5 | %
Multifamily transitional (5) | 938,926 |  |  | 938,926 |  |  | 976,964 |  |  | 9.17 | % |  | 6 |  | 64 | % |  | 751 |  | 870,525 |  |  | 20,815 |  |  | — |  |  | 85,624 |  |  | 8.8 | %
Total Business purpose loans | $ | 3,394,426 |  |  | $ | 3,394,591 |  |  | $ | 3,500,300 |  |  | 8.43 | % |  |  |  | 67 | % |  |  |  | $ | 3,174,103 |  |  | $ | 69,869 |  |  | $ | 21,409 |  |  | $ | 234,919 |  |  | 7.3 | %
Legacy RPL/NPL loans |  | 1,075,764 |  |  | 1,090,991 |  |  | 1,222,258 |  |  | 5.15 | % |  | 253 |  | 55 | % |  | 647 |  | 831,844 |  |  | 129,081 |  |  | 45,074 |  |  | 216,259 |  |  | 21.4 | %
Other loans |  | 52,073 |  |  | 52,073 |  |  | 63,614 |  |  | 3.44 | % |  | 320 |  | 65 | % |  | 758 |  | 62,998 |  |  | 616 |  |  | — |  |  | — |  |  | — | %
Residential whole loans, total or weighted average |  | $ | 8,811,224 |  |  | $ | 8,795,953 |  |  | $ | 9,194,832 |  |  | 7.06 | % |  |  |  | 64 | % |  |  |  | $ | 8,183,381 |  |  | $ | 324,331 |  |  | $ | 117,102 |  |  | $ | 570,018 |  |  | 7.5 | %
(1)Weighted average is calculated based on the interest bearing principal balance of each loan within the related category. For loans acquired with servicing rights released by the seller, interest rates included in the calculation do not reflect loan servicing fees. For loans acquired with servicing rights retained by the seller, interest rates included in the calculation are net of servicing fees. (2)For the quarter ended September 30, 2025, the gross coupon was 6.86% for Non-QM loans, 6.36% for Single-family rental loans, 10.40% for Single-family transitional loans, 9.95% for Multifamily transitional loans, and 5.11% for Legacy RPL/NPL loans. For the quarter ended December 31, 2024, the gross coupon was 6.65% for Non-QM loans, 6.39% for Single-family rental loans, 10.45% for Single-family transitional loans, 9.18% for Multifamily transitional loans, and 5.16% for Legacy RPL/NPL loans. (3)LTV represents the ratio of the total unpaid principal balance of the loan to the estimated value of the collateral securing the related loan as of the most recent date available, which may be the origination date. Excluded from the calculation of weighted average are certain low value loans secured by vacant lots, for which the LTV ratio is not meaningful. (4)Excludes loans for which no Fair Isaac Corporation (“FICO”) score is available. (5)For Single-family and Multifamily transitional loans, the LTV presented is the ratio of the maximum unpaid principal balance of the loan, including unfunded commitments, to the estimated “after repaired” value of the collateral securing the related loan, where available. For certain Single-family transitional loans, totaling $324.0 million and $445.6 million at September 30, 2025 and December 31, 2024, respectively, and certain Multifamily transitional loans, totaling $143.5 million and $252.1 million at September 30, 2025 and December 31, 2024, respectively, an after repaired valuation was not available. For these loans, the weighted average LTV is calculated based on the current unpaid principal balance and the as-is value of the collateral securing the related loan. Sales of Residential Whole Loans During the first quarter of 2025, Single-family rental loans with an unpaid principal balance of $67.6 million were sold, realizing gains, before the impact of economic hedging gains/losses and the reversal of previously recognized unrealized gains, of $1.9 million. Upon sale, the Company reversed $1.2 million of previously recognized unrealized gains, resulting in a net gain of $0.7 million during the first quarter of 2025. During the second quarter of 2025, Single-family rental loans with an unpaid principal balance of $37.4 million were sold, realizing gains, before the impact of economic hedging gains/losses and the reversal of previously recognized unrealized gains, of $1.1 million. Upon sale, the Company reversed $1.2 million of previously recognized unrealized gains, resulting in a net loss of $0.1 million during the second quarter of 2025. Additionally, during the second quarter of 2025, Transitional loans with an unpaid principal balance of $31.3 million were sold, realizing losses, before the impact of economic hedging gains/losses and the reversal of previously recognized unrealized losses, of $8.5 million. Upon sale, the Company reversed $8.0 million of previously recognized unrealized losses, resulting in a net loss of $0.5 million during the second quarter of 2025. During the third quarter of 2025, Single-family rental loans with an unpaid principal balance of $65.1 million were sold, realizing gains, before the impact of economic hedging gains/losses and the reversal of previously recognized unrealized gains, of $1.6 million. Upon sale, the Company reversed $1.8 million of previously recognized unrealized gains, resulting in a net loss of $0.2 million during the third quarter of 2025. Additionally, during the third quarter of 2025, Transitional loans with an unpaid principal balance of $24.4 million were sold, realizing losses, before the impact of economic hedging gains/losses and the reversal of previously recognized unrealized losses, of $10.8 million. Upon sale, the Company reversed $10.8 million of previously recognized unrealized losses, resulting in a net gain of $0.0 million during the third quarter of 2025. During the first quarter of 2024, Non-QM and Single-family rental loans with an unpaid principal balance of $171.0 million were sold, realizing losses, before the impact of economic hedging gains and the reversal of previously recognized unrealized losses, of $21.7 million. Upon sale, the Company reversed $23.7 million of previously recognized unrealized losses, resulting in a net gain of $2.0 million during the first quarter of 2024. During the second quarter of 2024, Residential whole loans with an unpaid principal balance of $12.4 million were sold, realizing gains, before the impact of economic hedging and the reversal of previously recognized unrealized gains, of $0.4 million. Upon sale, the Company reversed $0.2 million of previously recognized unrealized gains, resulting in a net gain of $0.2 million during the second quarter of 2024. During the third quarter of 2024, Residential whole loans with an unpaid principal balance of $235.6 million were sold, realizing gains, before the impact of economic hedging and the reversal of previously recognized unrealized gains, of $5.9 million. Upon sale, the Company reversed $5.8 million of previously recognized unrealized gains, resulting in a net gain of $0.1 million during the third quarter of 2024. Allowance for Credit Losses The following table presents a roll-forward of the allowance for credit losses on the Company’s Residential whole loans, at carrying value:
| Nine Months Ended September 30, 2025
(In Thousands) |  | Non-QM loans |  | Single-family rental loans |  | Single-family transitional loans (1) |  | Legacy RPL/NPL loans (2) |  | Totals
Allowance for credit losses at December 31, 2024 |  | $ | 2,125 |  |  | $ | 366 |  |  | $ | 1,389 |  |  | $ | 6,785 |  |  | $ | 10,665 |
Current provision/(reversal) |  | (197) |  |  | 614 |  |  | (88) |  |  | (184) |  |  | 145 |
Write-offs |  | — |  |  | — |  |  | (436) |  |  | (180) |  |  | (616) |
Allowance for credit losses at March 31, 2025 |  | $ | 1,928 |  |  | $ | 980 |  |  | $ | 865 |  |  | $ | 6,421 |  |  | $ | 10,194 |
Current provision/(reversal) |  | 87 |  |  | (43) |  |  | 669 |  |  | 78 |  |  | 791 |
Write-offs |  | — |  |  | — |  |  | (1,022) |  |  | (14) |  |  | (1,036) |
Allowance for credit losses at June 30, 2025 |  | $ | 2,015 |  |  | $ | 937 |  |  | $ | 512 |  |  | $ | 6,485 |  |  | $ | 9,949 |
Current provision/(reversal) |  | 205 |  |  | (78) |  |  | 548 |  |  | (399) |  |  | 276 |
Write-offs |  | (38) |  |  | (30) |  |  | — |  |  | (74) |  |  | (142) |
Allowance for credit losses at September 30, 2025 |  | $ | 2,182 |  |  | $ | 829 |  |  | $ | 1,060 |  |  | $ | 6,012 |  |  | $ | 10,083 |
| Nine Months Ended September 30, 2024
(In Thousands) |  | Non-QM loans |  | Single-family rental loans |  | Single-family transitional loans (1) |  | Legacy RPL/NPL loans (2) |  | Totals
Allowance for credit losses at December 31, 2023 |  | $ | 1,871 |  |  | $ | 4,355 |  |  | $ | 2,587 |  |  | $ | 11,638 |  |  | $ | 20,451 |
Current provision/(reversal) |  | (190) |  |  | 228 |  |  | (472) |  |  | (26) |  |  | (460) |
Write-offs |  | — |  |  | 59 |  |  | (416) |  |  | (22) |  |  | (379) |
Allowance for credit losses at March 31, 2024 |  | $ | 1,681 |  |  | $ | 4,642 |  |  | $ | 1,699 |  |  | $ | 11,590 |  |  | $ | 19,612 |
Current provision/(reversal) |  | (326) |  |  | 978 |  |  | (317) |  |  | (1,414) |  |  | (1,079) |
Write-offs |  | — |  |  | (5,011) |  |  | (81) |  |  | (170) |  |  | (5,262) |
Allowance for credit losses at June 30, 2024 |  | $ | 1,355 |  |  | $ | 609 |  |  | $ | 1,301 |  |  | $ | 10,006 |  |  | $ | 13,271 |
Current provision/(reversal) |  | 387 |  |  | 205 |  |  | 48 |  |  | (2,582) |  |  | (1,942) |
Write-offs |  | — |  |  | (439) |  |  | (181) |  |  | (52) |  |  | (672) |
Allowance for credit losses at September 30, 2024 |  | $ | 1,742 |  |  | $ | 375 |  |  | $ | 1,168 |  |  | $ | 7,372 |  |  | $ | 10,657 |
(1)Includes $3.8 million and $18.9 million of loans that were assessed for credit losses based on a collateral dependent methodology as of September 30, 2025 and 2024, respectively. (2)Includes $32.1 million and $39.3 million of loans that were assessed for credit losses based on a collateral dependent methodology as of September 30, 2025 and 2024, respectively. Estimates of credit losses under credit losses on financial instruments (“CECL”) are highly sensitive to changes in assumptions and current economic conditions have increased the difficulty of accurately forecasting future conditions. The carrying value of Residential whole loans on nonaccrual status as of September 30, 2025 and December 31, 2024 was $568.0 million and $638.3 million, respectively. During the three and nine months ended September 30, 2025, the Company recognized $2.6 million and $9.8 million, respectively, of interest income on loans on nonaccrual status, including $1.7 million and $5.5 million, respectively, on its portfolio of loans which were non-performing at acquisition. At September 30, 2025 and December 31, 2024, there were approximately $28.7 million and $38.7 million, respectively, of loans held at carrying value on nonaccrual status that did not have an associated allowance for credit losses because they were determined to be collateral dependent and the estimated fair value of the related collateral exceeded the carrying value of each loan, respectively. During the three months ended September 30, 2025, the Company granted two loan modifications in its carrying value loan portfolio, both with term extensions. The combined increase in average life for the loans with term extensions was two months. As of September 30, 2025, the carrying value of these loans was approximately $0.23 million. As of September 30, 2025, these loans were not greater than 60 days delinquent. During the past 12 months, the Company has granted five loan modifications in its carrying value loan portfolio, which gave borrowers term extensions, with one of them including an interest rate reduction. The average increase in weighted average life was 74 months, and the interest rate reduction was 1.25%. As of September 30, 2025, the carrying value of these loans was approximately $0.43 million. As of September 30, 2025, only one of these loans was 120+ days delinquent. The following table presents certain additional credit-related information regarding our Residential whole loans, at carrying value:
|  | Amortized Cost Basis by Origination Year and LTV Bands
(In Thousands) |  | 2025 - 2022 |  |  |  |  |  |  |  | 2021 |  | Prior |  | Total
Non-QM loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
LTV <= 80% (1) |  | $ | — |  |  |  |  |  |  |  |  | $ | 35,374 |  |  | $ | 571,818 |  |  | $ | 607,192 |
LTV > 80% (1) |  | — |  |  |  |  |  |  |  |  | 1,354 |  |  | 6,915 |  |  | 8,269 |
Total Non-QM loans |  | $ | — |  |  |  |  |  |  |  |  | $ | 36,728 |  |  | $ | 578,733 |  |  | $ | 615,461 |
Nine Months Ended September 30, 2025 Gross write-offs |  | $ | — |  |  |  |  |  |  |  |  | $ | — |  |  | $ | 37 |  |  | $ | 37 |
Business purpose loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
LTV <= 80% (1) |  | $ | — |  |  |  |  |  |  |  |  | $ | 5,719 |  |  | $ | 91,206 |  |  | $ | 96,925 |
LTV > 80% (1) |  | — |  |  |  |  |  |  |  |  | — |  |  | 2,149 |  |  | 2,149 |
Total Business purpose loans |  | $ | — |  |  |  |  |  |  |  |  | $ | 5,719 |  |  | $ | 93,355 |  |  | $ | 99,074 |
Nine Months Ended September 30, 2025 Gross write-offs |  | $ | — |  |  |  |  |  |  |  |  | $ | 31 |  |  | $ | 1,459 |  |  | $ | 1,490 |
Legacy RPL/NPL loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
LTV <= 80% (1) |  | $ | — |  |  |  |  |  |  |  |  | $ | — |  |  | $ | 377,755 |  |  | $ | 377,755 |
LTV > 80% (1) |  | — |  |  |  |  |  |  |  |  | — |  |  | 46,762 |  |  | 46,762 |
Total Legacy RPL/NPL loans |  | $ | — |  |  |  |  |  |  |  |  | $ | — |  |  | $ | 424,517 |  |  | $ | 424,517 |
Nine Months Ended September 30, 2025 Gross write-offs |  | $ | — |  |  |  |  |  |  |  |  | $ | — |  |  | $ | 268 |  |  | $ | 268 |
Total LTV <= 80% (1) |  | $ | — |  |  |  |  |  |  |  |  | $ | 41,093 |  |  | $ | 1,040,779 |  |  | $ | 1,081,872 |
Total LTV > 80% (1) |  | — |  |  |  |  |  |  |  |  | 1,354 |  |  | 55,826 |  |  | 57,180 |
Total Residential whole loans, at carrying value |  | $ | — |  |  |  |  |  |  |  |  | $ | 42,447 |  |  | $ | 1,096,605 |  |  | $ | 1,139,052 |
Nine Months Ended September 30, 2025 Total Gross write-offs |  | $ | — |  |  |  |  |  |  |  |  | $ | 31 |  |  | $ | 1,764 |  |  | $ | 1,795 |
(1)LTV represents the ratio of the total unpaid principal balance of the loan to the estimated value of the collateral securing the related loan as of the most recent date available, which may be the origination date. For Single-family and Multifamily transitional loans, the LTV presented is the ratio of the maximum unpaid principal balance of the loan, including unfunded commitments, to the estimated “after repaired” value of the collateral securing the related loan, where available. For certain Single-family transitional loans, an after repaired valuation was not obtained and the loan was underwritten based on an “as is” valuation. Excluded from the calculation of weighted average LTV are certain low value loans secured by vacant lots, for which the LTV is not meaningful. The following table presents vintage information regarding our Residential whole loans, at fair value:
|  | Fair Value by Origination Year
(In Thousands) |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Total
Non-QM loans |  | $ | 1,233,263 |  |  | $ | 1,006,871 |  |  | $ | 565,190 |  |  | $ | 540,026 |  |  | $ | 1,132,462 |  |  | $ | 29,653 |  |  | $ | 4,507,465 |
Single-family rental loans |  | 43,816 |  |  | 41,040 |  |  | 219,207 |  |  | 501,361 |  |  | 342,007 |  |  | 7,141 |  |  | 1,154,572 |
Single-family transitional loans |  | 294,134 |  |  | 308,854 |  |  | 148,401 |  |  | 29,446 |  |  | 4,156 |  |  | 37 |  |  | 785,028 |
Multifamily transitional loans |  | — |  |  | 69,382 |  |  | 267,405 |  |  | 189,128 |  |  | 78,229 |  |  | — |  |  | 604,144 |
Legacy RPL/NPL loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 581,719 |  |  | 581,719 |
Other loans |  | — |  |  | — |  |  | — |  |  | — |  |  | 51,937 |  |  | — |  |  | 51,937 |
Total Residential whole loans, at fair value |  | $ | 1,571,213 |  |  | $ | 1,426,147 |  |  | $ | 1,200,203 |  |  | $ | 1,259,961 |  |  | $ | 1,608,791 |  |  | $ | 618,550 |  |  | $ | 7,684,865 |
The following table presents realized credit losses, net of recoveries, on liquidated residential whole loans or residential whole loans that were transferred to REO, recognized in Other, net:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Non-QM loans |  | $ | (80) |  |  | $ | — |  |  | $ | (866) |  |  | $ | 88 |
Single-family rental loans |  | (7,489) |  |  | (669) |  |  | (11,833) |  |  | (2,123) |
Single-family transitional loans |  | (946) |  |  | (2,393) |  |  | (4,469) |  |  | (2,012) |
Multifamily transitional loans |  | (1,353) |  |  | (3,802) |  |  | (5,602) |  |  | (3,910) |
Legacy RPL/NPL loans |  | (184) |  |  | (220) |  |  | (824) |  |  | (1,120) |
Other loans |  | — |  |  | — |  |  | — |  |  | — |
Total Residential whole loans |  | $ | (10,052) |  |  | $ | (7,084) |  |  | $ | (23,594) |  |  | $ | (9,077) |
The following tables present certain information regarding the LTVs of the Company’s Residential whole loans that are 60 days or more delinquent:
|  | September 30, 2025
(Dollars In Thousands) |  | Carrying Value / Fair Value |  | UPB |  | LTV (1)
Non-QM loans |  | $ | 205,052 |  |  | $ | 209,456 |  |  | 64 | %
Business purpose loans: |  |  |  |  |  |
Single-family rental loans |  | $ | 32,964 |  |  | $ | 40,281 |  |  | 94 | %
Single-family transitional loans |  | 91,025 |  |  | 103,099 |  |  | 78 | %
Multifamily transitional loans |  | 23,947 |  |  | 46,762 |  |  | 67 | %
Total Business purpose loans |  | $ | 147,936 |  |  | $ | 190,142 |  |  |
Legacy RPL/NPL loans |  | 199,196 |  |  | 216,583 |  |  | 62 | %
Other loans |  | — |  |  | — |  |  | — | %
Total Residential whole loans |  | $ | 552,184 |  |  | $ | 616,181 |  |  |
|  | December 31, 2024
(Dollars In Thousands) |  | Carrying Value / Fair Value |  | UPB |  | LTV (1)
Non-QM loans |  | $ | 166,299 |  |  | $ | 169,459 |  |  | 66 | %
Business purpose loans: |  |  |  |  |  |
Single-family rental loans |  | $ | 42,995 |  |  | $ | 54,732 |  |  | 99 | %
Single-family transitional loans |  | 109,221 |  |  | 115,972 |  |  | 79 | %
Multifamily transitional loans |  | 56,970 |  |  | 85,624 |  |  | 79 | %
Total Business purpose loans |  | $ | 209,186 |  |  | $ | 256,328 |  |  |
Legacy RPL/NPL loans |  | 240,356 |  |  | 261,333 |  |  | 63 | %
Other loans |  | — |  |  | — |  |  | — | %
Total Residential whole loans |  | $ | 615,841 |  |  | $ | 687,120 |  |  |
(1)LTV represents the ratio of the total unpaid principal balance of the loan to the estimated value of the collateral securing the related loan as of the most recent date available, which may be the origination date. For Single-family and Multifamily transitional loans, the LTV presented is the ratio of the maximum unpaid principal balance of the loan, including unfunded commitments, to the estimated “after repaired” value of the collateral securing the related loan, where available. For certain Single-family transitional loans, an after repaired valuation was not obtained and the loan was underwritten based on an “as is” valuation. Excluded from the calculation of weighted average LTV are certain low value loans secured by vacant lots, for which the LTV ratio is not meaningful. The following tables present the components of interest income on the Company’s Residential whole loans:
|  | Held at Carrying Value |  | Held at Fair Value |  | Total
|  | Three Months Ended September 30, |  | Three Months Ended September 30, |  | Three Months Ended September 30,
(In Thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2025 |  | 2024
Non-QM loans |  | $ | 8,649 |  |  | $ | 10,357 |  |  | $ | 68,093 |  |  | $ | 48,110 |  |  | $ | 76,742 |  |  | $ | 58,467 |
Business purpose loans: |  |  |  |  |  |  |  |  |  |  |  |
Single-family rental loans |  | $ | 1,740 |  |  | $ | 2,285 |  |  | $ | 19,896 |  |  | $ | 24,048 |  |  | $ | 21,636 |  |  | $ | 26,333 |
Single-family transitional loans |  | 210 |  |  | 249 |  |  | 18,781 |  |  | 28,237 |  |  | 18,991 |  |  | 28,486 |
Multifamily transitional loans |  | — |  |  | — |  |  | 15,356 |  |  | 23,479 |  |  | 15,356 |  |  | 23,479 |
Total Business purpose loans |  | $ | 1,950 |  |  | $ | 2,534 |  |  | $ | 54,033 |  |  | $ | 75,764 |  |  | $ | 55,983 |  |  | $ | 78,298 |
Legacy RPL/NPL loans |  | 7,377 |  |  | 7,763 |  |  | 12,709 |  |  | 12,376 |  |  | 20,086 |  |  | 20,139 |
Other loans |  | — |  |  | — |  |  | 479 |  |  | 502 |  |  | 479 |  |  | 502 |
Total Residential whole loans |  | $ | 17,976 |  |  | $ | 20,654 |  |  | $ | 135,314 |  |  | $ | 136,752 |  |  | $ | 153,290 |  |  | $ | 157,406 |
|  | Held at Carrying Value |  | Held at Fair Value |  | Total
|  | Nine Months Ended September 30, |  | Nine Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2025 |  | 2024
Non-QM loans |  | $ | 28,069 |  |  | $ | 33,306 |  |  | $ | 184,204 |  |  | $ | 139,771 |  |  | $ | 212,273 |  |  | $ | 173,077 |
Business purpose loans: |  |  |  |  |  |  |  |  |  |  |  |
Single-family rental loans |  | $ | 5,433 |  |  | $ | 7,123 |  |  | $ | 60,347 |  |  | $ | 73,876 |  |  | $ | 65,780 |  |  | $ | 80,999 |
Single-family transitional loans |  | 4,038 |  |  | 642 |  |  | 64,497 |  |  | 86,104 |  |  | 68,535 |  |  | 86,746 |
Multifamily transitional loans |  | — |  |  | — |  |  | 52,618 |  |  | 73,969 |  |  | 52,618 |  |  | 73,969 |
Total Business purpose loans |  | $ | 9,471 |  |  | $ | 7,765 |  |  | $ | 177,462 |  |  | $ | 233,949 |  |  | $ | 186,933 |  |  | $ | 241,714 |
Legacy RPL/NPL loans |  | 21,676 |  |  | 23,696 |  |  | 36,865 |  |  | 40,757 |  |  | 58,541 |  |  | 64,453 |
Other loans |  | — |  |  | — |  |  | 1,421 |  |  | 1,544 |  |  | 1,421 |  |  | 1,544 |
Total Residential whole loans |  | $ | 59,216 |  |  | $ | 64,767 |  |  | $ | 399,952 |  |  | $ | 416,021 |  |  | $ | 459,168 |  |  | $ | 480,788 |
The following table presents the components of Net gain/(loss) on residential whole loans measured at fair value through earnings:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Non-QM loans |  | $ | 31,465 |  |  | $ | 94,489 |  |  | $ | 104,783 |  |  | $ | 124,058 |
Business purpose loans: |  |  |  |  |  |  |  |
Single-family rental loans |  | $ | 16,878 |  |  | $ | 39,662 |  |  | $ | 45,888 |  |  | $ | 57,269 |
Single-family transitional loans |  | (1,770) |  |  | 2,401 |  |  | (16,488) |  |  | (1,720) |
Multifamily transitional loans |  | (7,939) |  |  | (15,384) |  |  | (9,415) |  |  | (42,457) |
Total Business purpose loans |  | $ | 7,169 |  |  | $ | 26,679 |  |  | $ | 19,985 |  |  | $ | 13,092 |
Legacy RPL/NPL loans |  | 1,769 |  |  | 18,923 |  |  | 1,885 |  |  | 9,002 |
Other loans |  | 890 |  |  | 3,325 |  |  | 2,631 |  |  | 2,181 |
Total Residential whole loans |  | $ | 41,293 |  |  | $ | 143,416 |  |  | $ | 129,284 |  |  | $ | 148,333 |

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