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Fair Value of Financial Instruments (Tables)
 9 Months Ended
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 1Level 2Level 3Total
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 1Level 2Level 3Total
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 TechniqueUnobservable Input
Weighted Average (2)
Range
Min
Max
$7,276,067 Discounted cash flowDiscount rate6.7 %5.7 %20.0 %
Prepayment rate17.0 %— %51.0 %
Default rate1.7 %— %68.8 %
Loss severity11.7 %— %100.0 %
$312,558 Liquidation modelDiscount rate8.7 %8.0 %20.0 %
Annual change in home prices2.4 %(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 TechniqueUnobservable Input
Weighted Average (2)
Range
Min
Max
$7,070,535 Discounted cash flowDiscount rate7.6 %6.2 %20.0 %
Prepayment rate13.7 %— %58.3 %
Default rate1.8 %— %54.3 %
Loss severity12.3 %— %100.0 %
$343,683 Liquidation modelDiscount rate8.8 %8.0 %20.0 %
Annual change in home prices3.2 %— %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)2025202420252024
Balance at beginning of period$7,577,178 $7,719,191 $7,459,137 $7,455,729 
Purchases and originations601,317 432,232 1,748,138 1,456,353 
Draws77,373 132,944 282,224 448,849 
Changes in fair value recorded in Net gain/(loss) on residential whole loans measured at fair value through earnings51,301 137,859 145,804 164,748 
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)2025202420252024
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)2025202420252024
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, 2025September 30, 2025December 31, 2024
(In Thousands)Level in Fair Value HierarchyCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Financial Assets:
Residential whole loans3$8,761,897 $8,770,587 $8,759,151 $8,743,881 
Residential whole loans251,937 51,937 52,073 52,073 
Securities, at fair value22,259,657 2,259,657 1,537,513 1,537,513 
Cash and cash equivalents1305,172 305,172 338,931 338,931 
Restricted cash1231,797 231,797 262,381 262,381 
Financial Liabilities (1):
Financing agreements with non-mark-to-market collateral provisions3166,126 166,243 576,774 577,231 
Financing agreements with mark-to-market collateral provisions31,249,862 1,250,481 1,321,041 1,321,584 
Financing agreements with mark-to-market collateral provisions21,878,417 1,878,417 1,279,007 1,279,007 
Securitized debt26,353,973 6,305,510 5,794,977 5,724,702 
Other secured financing39,035 9,035 — — 
8.875% Senior Notes
2111,841 114,294 111,270 115,720 
9.00% Senior Notes
272,736 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.