Home Equity Investments (HEI) (Tables)

9 Months Ended

Sep. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

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.

Schedule of Activity of Home Equity Investments

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

Schedule of Components of HEI Income, Net

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.