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Home Equity Investments (HEI) | 9 Months Ended
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Sep. 30, 2025
Equity Method Investments and Joint Ventures [Abstract] |
Home Equity Investments (HEI) | Home Equity Investments (HEI) We have historically invested in HEI contracts acquired from third party originators, however, we ceased new investments in third-party originated HEI contracts and began originating HEI directly in 2023 through our own Aspire HEI platform. 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. In the second quarter of 2025, we began reporting our third-party originated HEI portfolio within the Legacy Investments segment, consistent with how the CODM evaluates financial performance and allocates resources across our reportable segments. At September 30, 2025 and December 31, 2024, within our Legacy Investments segment, we co-sponsored one and two HEI securitization entities, respectively, that we consolidated in accordance with GAAP, and have elected to account for this securitization 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. During the three months ended September 30, 2025, we called one of our HEI securitization entities and paid off the related outstanding ABS issued. Subsequent to the call of this securitization, we sold previously securitized and unsecuritized third-party originated HEI from our Legacy Investments segment totaling $262 million to a third party. The following table presents our HEI at September 30, 2025 and December 31, 2024. Table 10.1 – Home Equity Investments
(In Thousands) |  | September 30, 2025 |  | December 31, 2024
Unsecuritized HEI |  | $ | 134,156 |  |  | $ | 257,315 |
HEI held at consolidated HEI securitization entities |  | 192,067 |  |  | 332,470 |
Total Home Equity Investments at fair value (1) |  | $ | 326,223 |  |  | $ | 589,785 |
(1)As of September 30, 2025, balance includes $315 million of third-party originated HEI included in our Legacy Investments segment. The following table details our HEI activity during the three and nine months ended September 30, 2025 and 2024. Changes in the value of HEI during the nine months ended September 30, 2025 are driven by incremental fair value adjustments, reflecting the sales on HEI held in our Legacy Investments segment during the third quarter of 2025. Table 10.2 – Activity of HEI
|  | Three Months Ended September 30,
|  | 2025 |  | 2024
(In Thousands) |  | Unsecuritized HEI |  | Securitized HEI |  | Unsecuritized HEI |  | Securitized HEI
Fair value of HEI purchased and originated |  | $ | 2,926 |  |  | $ | — |  |  | $ | 460 |  |  | $ | — |
Fair value of HEI transferred |  | 148,963 |  |  | (148,963) |  |  | — |  |  | — |
Fair value of HEI sold to third party |  | 262,447 |  |  | — |  |  | — |  |  | — |
Net market valuation gains recorded |  | 198 |  |  | 2,960 |  |  | 5,812 |  |  | 19,408 |
|  | Nine Months Ended September 30,
|  | 2025 |  | 2024
(In Thousands) |  | Unsecuritized HEI |  | Securitized HEI |  | Unsecuritized HEI |  | Securitized HEI
Fair value of HEI purchased and originated |  | $ | 8,986 |  |  | $ | — |  |  | $ | 1,066 |  |  | $ | — |
Fair value of HEI transferred |  | 148,963 |  |  | (148,963) |  |  | — |  |  | — |
Fair value of HEI sold to third party |  | 262,447 |  |  | — |  |  | — |  |  | — |
Net market valuation (losses) gains recorded |  | (6,972) |  |  | 23,493 |  |  | 23,618 |  |  | 51,861 |
The following table provides the components of HEI income, net for the three and nine months ended September 30, 2025 and 2024. Table 10.3 – Components of HEI Income, net
|  | Three Months Ended September 30,
(In Thousands) |  | 2025 |  | 2024
Net market valuation gains recorded on Unsecuritized HEI |  | $ | 198 |  |  | $ | 5,812 |
Net market valuation gains recorded on Securitized HEI |  | 2,960 |  |  | 19,407 |
Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1) |  | (2,596) |  |  | (5,964) |
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations |  | (231) |  |  | (8,604) |
Other |  | 123 |  |  | $ | 76 |
Total HEI (loss) income, net |  | $ | 454 |  |  | $ | 10,727 |
|  | Nine Months Ended September 30,
(In Thousands) |  | 2025 |  | 2024
Net market valuation (losses) gains recorded on Unsecuritized HEI |  | $ | (6,972) |  |  | $ | 23,618 |
Net market valuation gains recorded on Securitized HEI |  | 23,493 |  |  | 51,859 |
Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1) |  | (11,627) |  |  | (18,845) |
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations |  | (7,573) |  |  | (21,111) |
Other |  | 400 |  |  | 175 |
Total HEI (loss) income, net |  | $ | (2,279) |  |  | $ | 35,696 |
(1)Amount includes interest expense associated with ABS issued, which totaled $3 million and $9 million, for both the three and nine months ended September 30, 2025 and 2024, respectively.

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