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Other Assets (Tables)
 6 Months Ended
Jun. 30, 2026
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
The following table presents the components of the Company’s Other assets at June 30, 2026 and December 31, 2025:

(In Thousands)June 30, 2026December 31, 2025
REO$128,090 $135,035 
Commercial REO12,762 19,885 
Goodwill61,076 61,076 
Intangibles, net (1)
2,000 2,600 
Capital contributions made to loan origination partners21,088 20,182 
Commercial loans4,510 6,079 
Interest receivable108,840 111,118 
Other loan related receivables7,054 8,874 
Lease right-of-use asset (2)
9,358 42,810 
Other73,630 81,488 
Total Other Assets$428,408 $489,147 
(1)Net of aggregate accumulated amortization of $26.0 million and $25.4 million as of June 30, 2026 and December 31, 2025, respectively.
(2)An estimated incremental borrowing rate of 7.5% was used in connection with the Company’s primary operating lease as of December 31, 2025, and an estimated incremental borrowing rate of 8.0% was used in connection with Lima One’s headquarters lease (see Notes 2 and 9).
Schedule of Aggregate Carrying Value of REO Properties
The following table summarizes the aggregate carrying value of REO properties by loan source prior to foreclosure proceeding or from completion of a deed-in-lieu of foreclosure or similar legal agreement.

(Dollars In Thousands)June 30, 2026December 31, 2025
Non-QM loans$13,003 $12,066 
Business purpose loans73,454 80,822 
Seasoned RPL/NPL loans41,633 42,147 
Total$128,090 $135,035 
Number of properties298 322 
Schedule of Activity for Real Estate Owned
The following table presents the activity in the Company’s REO for the three and six months ended June 30, 2026 and 2025:
Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars In Thousands)2026202520262025
Balance at beginning of period$138,651 $130,634 $135,035 $130,854 
Adjustments to record at lower of cost or fair value(3,060)(3,565)(7,078)(6,777)
Transfer from residential whole loans (1)
21,735 30,286 46,988 55,734 
Purchases and capital improvements, net9 182 34 317 
Disposals and other (2)
(29,245)(21,713)(46,889)(44,304)
Balance at end of period$128,090 $135,824 $128,090 $135,824 
Number of properties298 377 298 377 
(1)During the three and six months ended June 30, 2026, the Company recognized $(10.5) million and $(10.7) million of gains/(losses), respectively, on Residential whole loans in Other Income/(Loss), net associated with the transfer of loans to REO. During the three and six months ended June 30, 2025, the Company recognized $(4.4) million and $(4.4) million of gains/(losses), respectively, on Residential whole loans in Other Income/(Loss), net associated with the transfer of loans to REO.
(2)During the three and six months ended June 30, 2026, the Company sold 76 and 144 REO properties for consideration of $30.7 million and $48.8 million, realizing net gains of approximately $1.6 million and $2.1 million, respectively. During the three and six months ended June 30, 2025, the Company sold 107 and 201 REO properties for consideration of $21.8 million and $46.0 million, realizing net gains of approximately $0.6 million and $2.3 million, respectively. These amounts are included in Other Income/(Loss), net on the Company’s consolidated statements of operations.
Schedule of Finite-Lived Intangible Assets Amortization Expense
The amortization period for each of the finite lived intangible assets and the activity for the six months ended June 30, 2026 are summarized in the table below:
(Dollars in Thousands)Carrying Value at December 31, 2025Amortization
Six months ended June 30, 2026		Carrying Value at June 30, 2026
Amortization Period (Years) (1)
Trademarks / Trade Names$2,200 $(200)$2,000 10
Internally Developed Software400 (400)— 5
Total Identified Intangibles$2,600 $(600)$2,000 
(1)Amortization is calculated on a straight-line basis over the amortization period.
Schedule of Financing Receivable Credit Quality Indicators
The following tables present additional information regarding the Company’s Residential whole loans:

June 30, 2026
Asset AmountFair ValueUnpaid 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
Current30-5960-8990+
Non-QM loans$5,670,728 $5,655,660 $5,684,786 6.70 %33664 %740$5,290,874 $153,057 $53,291 $187,564 4.2 %
Business purpose loans:
Single-family rental$1,153,464 $1,155,689 $1,166,676 6.35 %30666 %741$1,113,690 $23,882 $1,644 $27,460 2.5 %
Single-family transitional (5)
654,221 654,585 671,699 10.09 %668 %754559,111 20,782 13,167 78,639 13.7 %
Multifamily transitional (5)
320,882 320,882 360,373 10.09 %290 %750269,854 2,439 — 88,080 24.4 %
Total business purpose loans$2,128,567 $2,131,156 $2,198,748 8.11 %70 %$1,942,655 $47,103 $14,811 $194,179 9.5 %
Seasoned RPL/NPL loans919,518 934,422 1,042,205 5.07 %24153 %646756,263 105,823 35,606 144,513 17.3 %
Other loans49,054 49,054 57,968 3.43 %30262 %75757,464 504 — — — %
Residential whole loans, total or weighted average$8,767,867 $8,770,292 $8,983,707 6.85 %64 %$8,047,256 $306,487 $103,708 $526,256 7.0 %

December 31, 2025
Asset AmountFair ValueUnpaid 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
Current30-5960-8990+
Non-QM loans$5,344,968 $5,332,533 $5,322,321 6.74 %33764 %738$4,929,485 $170,509 $47,154 $175,173 4.2 %
Business purpose loans:
Single-family rental$1,234,428 $1,237,464 $1,246,745 6.34 %31166 %740$1,193,041 $22,309 $4,165 $27,230 2.5 %
Single-family transitional (5)
717,303 717,702 732,059 10.31 %669 %750599,798 48,180 2,535 81,546 11.5 %
Multifamily transitional (5)
489,637 489,637 531,804 10.17 %164 %749399,686 44,523 32,905 54,690 16.5 %
Total Business purpose loans$2,441,368 $2,444,803 $2,510,608 8.31 %66 %$2,192,525 $115,012 $39,605 $163,466 8.1 %
Seasoned RPL/NPL loans972,996 992,120 1,097,698 5.09 %24554 %646757,826 125,621 47,620 166,631 19.5 %
Other loans51,022 51,022 59,283 3.43 %30863 %75759,283 — — — — %
Residential whole loans, total or weighted average$8,810,354 $8,820,478 $8,989,910 6.98 %64 %$7,939,119 $411,142 $134,379 $505,270 7.1 %
(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. Certain Transitional Loans contain contractual features which increase the loan’s interest rate following an event of default. The weighted average coupon presented is calculated based on each loan’s coupon rate without regard to post-default rate adjustments.
(2)For the quarter ended June 30, 2026, the gross coupon was 6.82% for Non-QM loans, 6.37% for Single-family rental loans, 10.10% for Single-family transitional loans, 10.10% for Multifamily transitional loans, and 5.08% for Seasoned RPL/NPL loans. For the quarter ended December 31, 2025, the gross coupon was 6.88% for Non-QM loans, 6.37% for Single-family rental loans, 10.32% for Single-family transitional loans, 10.18% for Multifamily transitional loans, and 5.10% for Seasoned 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 that are less than 90 days delinquent, the LTV presented is generally 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, as of the most recent date available, which may be the origination date. For Single-family and Multifamily transitional loans that are 90 or more days delinquent, as well as certain performing loans for which an after repaired valuation was not available, the LTV presented is the ratio of the current unpaid principal balance of the loan to the estimated as-is value of the collateral securing the related loan as of the most recent date available, which may be the origination date.
The following table presents certain additional credit-related information regarding the Company’s Residential whole loans, at carrying value:
Amortized Cost Basis by Origination Year and LTV Bands
(In Thousands)
2026 - 2022PriorTotal
Non-QM loans
LTV <= 80% (1)
$— $527,764 $527,764 
LTV > 80% (1)
— 2,434 2,434 
Total Non-QM loans$— $530,198 $530,198 
Six Months Ended June 30, 2026 Gross write-offs$— $— $— 
Business purpose loans
LTV <= 80% (1)
$— $83,643 $83,643 
LTV > 80% (1)
— 2,148 2,148 
Total Business purpose loans$— $85,791 $85,791 
Six Months Ended June 30, 2026 Gross write-offs$— $— $— 
Seasoned RPL/NPL loans
LTV <= 80% (1)
$— $355,766 $355,766 
LTV > 80% (1)
— 40,440 40,440 
Total Seasoned RPL/NPL loans$— $396,206 $396,206 
Six Months Ended June 30, 2026 Gross write-offs$— $8 $8 
Total LTV <= 80% (1)
$— $967,173 $967,173 
Total LTV > 80% (1)
— 45,022 45,022 
Total Residential whole loans, at carrying value$— $1,012,195 $1,012,195 
Six Months Ended June 30, 2026 Total Gross write-offs$— $8 $8 
(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 that are less than 90 days delinquent, the LTV presented is generally 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, as of the most recent date available, which may be the origination date. For certain Single-family and Multifamily transitional loans that are 90 or more days delinquent, as well as certain performing loans for which an after repaired valuation was not available, the LTV presented is the ratio of the current unpaid principal balance of the loan to the estimated “as is” 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 LTV are certain low value loans secured by vacant lots, for which the LTV is not meaningful.
The following table presents vintage information regarding the Company’s Residential whole loans, at fair value:
Fair Value by Origination Year
(In Thousands)
20262025202420232022PriorTotal
Non-QM loans$727,564 $1,647,412 $779,170 $455,301 $470,105 $1,062,270 $5,141,822 
Business purpose loans:
Single-family rental loans$64,589 $1,622 $37,118 $197,935 $456,264 $318,109 $1,075,637 
Single-family transitional loans162,463 302,550 97,744 70,458 12,550 2,954 648,719 
Multifamily transitional loans— — 29,333 129,758 109,177 52,614 320,882 
Total Business purpose loans$227,052 $304,172 $164,195 $398,151 $577,991 $373,677 $2,045,238 
Seasoned RPL/NPL loans— — — — — 528,951 528,951 
Other loans— — — — — 49,054 49,054 
Total Residential whole loans, at fair value$954,616 $1,951,584 $943,365 $853,452 $1,048,096 $2,013,952 $7,765,065 
The following table presents certain additional information about the Company’s commercial mortgage loans as of June 30, 2026 and December 31, 2025:
(Dollars In Thousands)Fair Value / Carrying ValueUPB
Weighted Average Coupon (1)
Weighted Average Term to Maturity (Months)UPB 60+ Days DelinquentWeighted Average LTV Ratio
Commercial Loans - June 30, 2026$4,510 $4,510 10.58 %0$4,510 80 %
Commercial Loans - December 31, 2025$6,079 $9,385 10.60 %0$9,385 189 %
(1)Commercial Loans contain contractual features which increase the loan’s interest rate following an event of default. The weighted average coupon presented is calculated based on each loan’s coupon rate without regard to post-default rate adjustments.
Schedule of Assets Pledged as Collateral Against Derivative Contracts
The following table presents the assets pledged as collateral against the Company’s Swaps:
(In Thousands)June 30,
2026		December 31,
2025
Agency MBS, at fair value
$29,404 $32,015 
Restricted Cash38,141 24,317 
Schedule of Derivative Instruments The following table presents information about the Company’s Swaps at June 30, 2026 and December 31, 2025:
June 30, 2026December 31, 2025
Maturity (1)
 Notional Amount (2)
Weighted Average Fixed-Pay Interest Rate
Weighted Average Variable Interest Rate (3)
Notional Amount (2)
Weighted Average Fixed-Pay Interest Rate
 Weighted Average Variable Interest Rate (3)
(Dollars in Thousands)
Within 30 days$— — %— %$— — %— %
Over 30 days to 3 months— — — — — — 
Over 3 months to 6 months450,000 1.12 3.68 — — — 
Over 6 months to 12 months975,000 1.73 3.68 450,000 1.12 3.87 
Over 12 months to 24 months90,000 3.25 3.68 1,065,000 1.85 3.87 
Over 24 months to 36 months733,000 3.13 3.68 341,500 3.23 3.87 
Over 36 months to 48 months22,800 3.17 3.68 332,800 2.96 3.87 
Over 48 months to 60 months1,849,700 3.35 3.68 1,463,900 3.36 3.87 
Over 60 months to 72 months29,000 3.99 3.68 — — — 
Over 72 months1,554,200 3.60 3.68 827,300 3.36 3.87 
Total Swaps$5,703,700 2.94 %3.68 %$4,480,500 2.74 %3.87 %
(1)Each maturity category reflects contractual amortization and/or maturity of notional amounts.
(2)As of June 30, 2026, the aggregate notional amounts of Swaps include $2.1 billion of interest rate swap agreements and $3.6 billion of ERIS swap futures. As of December 31, 2025, the aggregate notional amounts of Swaps include $2.1 billion of interest rate swap agreements and $2.4 billion of ERIS swap futures.
(3)Reflects the benchmark variable rate due from the counterparty at the date presented. This rate adjusts daily based on SOFR.
June 30, 2026December 31, 2025
(Dollars in thousands)
 Notional Amount
Settlement Date
Notional Amount
Settlement Date
TBA Security
MBS 30 year 5.0% coupon
$128,000 7/13/2026$— — 
MBS 30 year 5.5% coupon
$350,000 7/13/2026$— — 
Schedule of Derivative Earnings
The following table presents the components of Net gain/(loss) on derivatives, which is presented in Other Income/(Loss), net in the consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
 (In Thousands)2026202520262025
Income on Swaps variable receive leg$48,777 $36,850 $92,187 $70,927 
Expense on Swaps fixed pay leg(37,946)(21,367)(70,311)(40,191)
Unrealized mark-to-market gain/(loss)33,155 (15,391)59,921 (60,233)
Net price alignment expense on margin collateral received(714)(1,169)(1,041)(2,635)
Realized gain/(loss) on terminated Swaps536 (17,174)(6,223)(17,174)
Net gain/(loss) on TBA long positions(168)— 1,168 — 
TBA dollar roll income985 — 985 — 
Total Net gain/(loss) on derivatives$44,625 $(18,251)$76,686 $(49,306)