XML 29 R18.htm IDEA: XBRL DOCUMENT v3.25.1
Home Equity Investments (HEI)
 3 Months Ended
Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Home Equity Investments (HEI) Home Equity Investments (HEI)
We invest in HEI contracts from third party originators and in 2023, we began to originate HEI directly. Each HEI provides the owner of such HEI the right to purchase a percentage ownership interest in an associated residential property, and the homeowner's obligations under the HEI are secured by a lien (primarily second liens) on the property created by recording a security instrument (e.g., deed of trust) with respect to the property. Our investments in HEI expose us to both home price appreciation and depreciation of the associated property.
We co-sponsored two HEI securitization entities that we consolidated in accordance with GAAP, and have elected to account for them under the CFE election. As such, market valuation changes for the securitized HEI are based on the fair value of the associated ABS issued by the entity, including the interest we own, and are reported in HEI income, net on our Consolidated statements of income.
The following table presents our HEI at March 31, 2025 and December 31, 2024.
Table 10.1 – Home Equity Investments
(In Thousands)March 31, 2025December 31, 2024
Unsecuritized HEI$262,405 $257,315 
HEI held at consolidated HEI securitization entities337,981 332,470 
Total Home Equity Investments$600,386 $589,785 
The following table details our HEI activity during the three months ended March 31, 2025 and 2024.
Table 10.2 – Activity of HEI
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
(In Thousands)Unsecuritized HEISecuritized HEIUnsecuritized HEISecuritized HEI
Fair value of HEI purchased and originated$1,834 $— $307 $— 
Net market valuation gains recorded 7,136 11,912 6,143 15,424 
The following table provides the components of HEI income, net for the three months ended March 31, 2025 and 2024.
Table 10.3 – Components of HEI Income, net
(In Thousands)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Net market valuation gains recorded on Unsecuritized HEI$7,136 $6,143 
Net market valuation gains recorded on Securitized HEI11,912 15,424 
Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)
(3,769)(7,409)
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations(5,208)(5,127)
Other95 $55 
Total HEI income, net$10,166 $9,086 
(1)Amount includes interest expense associated with ABS issued, which totaled $3 million for the three months ended March 31, 2025 and 2024, respectively.