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Fair Value of Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Schedule of Quantitative Information About Significant Unobservable Inputs | The following tables present the Company’s financial instruments carried at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, on the consolidated balance sheets by the valuation hierarchy, as previously described: Fair Value at September 30, 2025
(In Thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |
Residential whole loans, at fair value |  | $ | — |  |  | $ | 51,937 |  |  | $ | 7,632,928 |  |  | $ | 7,684,865 |
Securities, at fair value |  | — |  |  | 2,259,657 |  |  | — |  |  | 2,259,657 |
Total assets carried at fair value |  | $ | — |  |  | $ | 2,311,594 |  |  | $ | 7,632,928 |  |  | $ | 9,944,522 |
Liabilities: |  |  |  |  |  |  |  |
Agreements with non-mark-to-market collateral provisions |  | $ | — |  |  | $ | — |  |  | $ | 39,717 |  |  | $ | 39,717 |
Agreements with mark-to-market collateral provisions |  | — |  |  | — |  |  | 65,615 |  |  | 65,615 |
Securitized debt |  | — |  |  | 5,847,247 |  |  | — |  |  | 5,847,247 |
Total liabilities carried at fair value |  | $ | — |  |  | $ | 5,847,247 |  |  | $ | 105,332 |  |  | $ | 5,952,579 |
Fair Value at December 31, 2024
(In Thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |
Residential whole loans, at fair value |  | $ | — |  |  | $ | 52,073 |  |  | $ | 7,459,137 |  |  | $ | 7,511,210 |
Securities, at fair value |  | — |  |  | 1,537,513 |  |  | — |  |  | 1,537,513 |
Total assets carried at fair value |  | $ | — |  |  | $ | 1,589,586 |  |  | $ | 7,459,137 |  |  | $ | 9,048,723 |
Liabilities: |  |  |  |  |  |  |  |
Agreements with non-mark-to-market collateral provisions |  | — |  |  | — |  |  | 284,843 |  |  | 284,843 |
Agreements with mark-to-market collateral provisions |  | — |  |  | — |  |  | 19,782 |  |  | 19,782 |
Securitized debt |  | — |  |  | 5,211,380 |  |  | — |  |  | 5,211,380 |
Total liabilities carried at fair value |  | $ | — |  |  | $ | 5,211,380 |  |  | $ | 304,625 |  |  | $ | 5,516,005 |
The following tables present a summary of quantitative information about the significant unobservable inputs used in the fair value measurement of the Company’s residential whole loans held at fair value for which it has utilized Level 3 inputs to determine fair value as of September 30, 2025 and December 31, 2024, dollars in thousands:
September 30, 2025
Fair Value (1) | Valuation Technique | Unobservable Input | Weighted Average (2) |  | Range
| Min |  | Max
$ | 7,276,067 |  | Discounted cash flow | Discount rate | 6.7 | % |  | 5.7 | % |  | 20.0 | %
|  | Prepayment rate | 17.0 | % |  | — | % |  | 51.0 | %
|  | Default rate | 1.7 | % |  | — | % |  | 68.8 | %
|  | Loss severity | 11.7 | % |  | — | % |  | 100.0 | %
$ | 312,558 |  | Liquidation model | Discount rate | 8.7 | % |  | 8.0 | % |  | 20.0 | %
|  | Annual change in home prices | 2.4 | % |  | (2.6) | % |  | 9.3 | %
|  | Liquidation timeline (in years) | 1.8 |  | 0.8 |  | 4.5
|  | Current value of underlying properties (3) | $697 |  | $19 |  | $10,000
$ | 7,588,625 |  |  |  |  |  |  |  |
(1)Excludes approximately $44.3 million of Residential whole loans, at fair value, with a UPB of $76.3 million, which were marked-to-market, but not based on a model, at September 30, 2025. (2)Amounts are weighted based on the fair value of the underlying loan. (3)Amounts represent simple average values of the properties underlying residential whole loans held at fair value.
December 31, 2024
Fair Value (1) | Valuation Technique | Unobservable Input | Weighted Average (2) |  | Range
| Min |  | Max
$ | 7,070,535 |  | Discounted cash flow | Discount rate | 7.6 | % |  | 6.2 | % |  | 20.0 | %
|  | Prepayment rate | 13.7 | % |  | — | % |  | 58.3 | %
|  | Default rate | 1.8 | % |  | — | % |  | 54.3 | %
|  | Loss severity | 12.3 | % |  | — | % |  | 100.0 | %
$ | 343,683 |  | Liquidation model | Discount rate | 8.8 | % |  | 8.0 | % |  | 20.0 | %
|  | Annual change in home prices | 3.2 | % |  | — | % |  | 9.7 | %
|  | Liquidation timeline (in years) | 1.7 |  | 0.1 |  | 4.5
|  | Current value of underlying properties (3) | $618 |  | $21 |  | $8,500
$ | 7,414,218 |  |  |  |  |  |  |  |
(1)Excludes approximately $44.9 million of Residential whole loans, at fair value, with a UPB of $78.2 million, which were marked-to-market, but not based on a model at December 31, 2024. (2)Amounts are weighted based on the fair value of the underlying loan. (3)Amounts represent simple average values of the properties underlying residential whole loans held at fair value.
Schedule of Significant Unobservable Inputs Used in Fair Value Measurement | The following table presents additional information for the three and nine months ended September 30, 2025 and 2024 about the Company’s Residential whole loans, at fair value, which are classified as Level 3 and measured at fair value on a recurring basis:
|  | Residential Whole Loans, at Fair Value
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Balance at beginning of period |  | $ | 7,577,178 |  |  | $ | 7,719,191 |  |  | $ | 7,459,137 |  |  | $ | 7,455,729 |
Purchases and originations |  | 601,317 |  |  | 432,232 |  |  | 1,748,138 |  |  | 1,456,353 |
Draws |  | 77,373 |  |  | 132,944 |  |  | 282,224 |  |  | 448,849 |
Changes in fair value recorded in Net gain/(loss) on residential whole loans measured at fair value through earnings |  | 51,301 |  |  | 137,859 |  |  | 145,804 |  |  | 164,748 |
Repayments |  | (556,736) |  |  | (532,502) |  |  | (1,696,053) |  |  | (1,434,164) |
Loan sales and repurchases |  | (92,543) |  |  | (235,582) |  |  | (231,392) |  |  | (409,420) |
Transfer to REO |  | (24,962) |  |  | (35,310) |  |  | (74,930) |  |  | (63,263) |
Balance at end of period |  | $ | 7,632,928 |  |  | $ | 7,618,832 |  |  | $ | 7,632,928 |  |  | $ | 7,618,832 |
The following table presents additional information for the three and nine months ended September 30, 2025 and 2024 about the Company’s financing agreements with non-mark-to-market collateral provisions, which are classified as Level 3 and measured at fair value on a recurring basis:
|  | Agreements with Non-mark-to-market Collateral Provisions
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Balance at beginning of period |  | $ | 76,880 |  |  | $ | 377,252 |  |  | $ | 284,843 |  |  | $ | 469,424 |
Issuances |  | — |  |  | — |  |  | — |  |  | 112,740 |
Payment of principal |  | (37,163) |  |  | (154,989) |  |  | (245,126) |  |  | (359,901) |
Changes in unrealized losses |  | — |  |  | — |  |  | — |  |  | — |
Balance at end of period |  | $ | 39,717 |  |  | $ | 222,263 |  |  | $ | 39,717 |  |  | $ | 222,263 |
The following table presents additional information for the three and nine months ended September 30, 2025 and 2024 about the Company’s financing agreements with mark-to-market collateral provisions, which are classified as Level 3 and measured at fair value on a recurring basis:
|  | Agreements with Mark-to-market Collateral Provisions
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Balance at beginning of period |  | $ | 197,424 |  |  | $ | 290,228 |  |  | $ | 19,782 |  |  | $ | 178,864 |
Issuances |  | — |  |  | 12,323 |  |  | 191,050 |  |  | 126,924 |
Payment of principal |  | (131,809) |  |  | (108,427) |  |  | (145,217) |  |  | (111,664) |
Changes in unrealized losses |  | — |  |  | — |  |  | — |  |  | — |
Balance at end of period |  | $ | 65,615 |  |  | $ | 194,124 |  |  | $ | 65,615 |  |  | $ | 194,124 |
Schedule of Carrying Value and Fair Value of Financial Instruments | The following table presents the carrying values and estimated fair values of the Company’s financial instruments as of September 30, 2025 and December 31, 2024:
|  | September 30, 2025 |  | September 30, 2025 |  | December 31, 2024
(In Thousands) | Level in Fair Value Hierarchy | Carrying Value |  | Estimated Fair Value | Carrying Value |  | Estimated Fair Value
Financial Assets: |  |  |  |  |  |  |  |  |  |
Residential whole loans |  | 3 |  | $ | 8,761,897 |  |  | $ | 8,770,587 |  |  | $ | 8,759,151 |  |  | $ | 8,743,881 |
Residential whole loans |  | 2 |  | 51,937 |  |  | 51,937 |  |  | 52,073 |  |  | 52,073 |
Securities, at fair value |  | 2 |  | 2,259,657 |  |  | 2,259,657 |  |  | 1,537,513 |  |  | 1,537,513 |
Cash and cash equivalents |  | 1 |  | 305,172 |  |  | 305,172 |  |  | 338,931 |  |  | 338,931 |
Restricted cash |  | 1 |  | 231,797 |  |  | 231,797 |  |  | 262,381 |  |  | 262,381 |
Financial Liabilities (1): |  |  |  |  |  |  |  |  |  |
Financing agreements with non-mark-to-market collateral provisions |  | 3 |  | 166,126 |  |  | 166,243 |  |  | 576,774 |  |  | 577,231 |
Financing agreements with mark-to-market collateral provisions |  | 3 |  | 1,249,862 |  |  | 1,250,481 |  |  | 1,321,041 |  |  | 1,321,584 |
Financing agreements with mark-to-market collateral provisions |  | 2 |  | 1,878,417 |  |  | 1,878,417 |  |  | 1,279,007 |  |  | 1,279,007 |
Securitized debt |  | 2 |  | 6,353,973 |  |  | 6,305,510 |  |  | 5,794,977 |  |  | 5,724,702 |
Other secured financing |  | 3 |  | 9,035 |  |  | 9,035 |  |  | — |  |  | — |
8.875% Senior Notes |  | 2 |  | 111,841 |  |  | 114,294 |  |  | 111,270 |  |  | 115,720 |
9.00% Senior Notes |  | 2 |  | 72,736 |  |  | 75,038 |  |  | 72,390 |  |  | 75,218 |
(1)Carrying value of securitized debt, 8.875% Senior Notes, 9.00% Senior Notes, and certain repurchase agreements is net of associated debt issuance costs.

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