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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Schedule of Information on Assets and Liabilities Measured and Recorded at Fair Value

The following tables present information on assets and liabilities measured and recorded at fair value as of September 30, 2025 and December 31, 2024, by level, in the fair value hierarchy:

		Fair Value Measurements Using												Total at
September 30, 2025		Level 1				Level 2				Level 3				Fair Value
		(In thousands)
Assets:
Nonrecurring fair value measurements:
Individually evaluated loans requiring specific allowance, net		$	—			$	—			$	10,756			$	10,756
Real estate owned, net			—				—				113,700				113,700
Total nonrecurring fair value measurements			—				—				124,456				124,456
Recurring fair value measurements:
Loans held for sale, at fair value			—				2,590				—				2,590
Loans held for investment, at fair value			—				—				4,371,317				4,371,317
Mortgage servicing rights			—				—				12,597				12,597
Derivative assets			—				18				—				18
Total recurring fair value measurements			—				2,608				4,383,914				4,386,522
Total assets		$	—			$	2,608			$	4,508,370			$	4,510,978
Liabilities:
Recurring fair value measurements:
Securitized debt, at fair value		$	—			$	3,748,889			$	—			$	3,748,889
Total recurring fair value measurements			—				3,748,889				—				3,748,889
Total liabilities		$	—			$	3,748,889			$	—			$	3,748,889

		Fair Value Measurements Using												Total at
December 31, 2024		Level 1				Level 2				Level 3				Fair Value
		(In thousands)
Assets:
Nonrecurring fair value measurements:
Individually evaluated loans requiring specific allowance, net		$	—			$	—			$	11,884			$	11,884
Real estate owned, net			—				—				68,000				68,000
Total nonrecurring fair value measurements			—				—				79,884				79,884
Recurring fair value measurements:
Loans held for investment, at fair value			—				—				2,766,951				2,766,951
Mortgage servicing rights			—				—				13,712				13,712
Total recurring fair value measurements			—				—				2,780,663				2,780,663
Total assets		$	—			$	—			$	2,860,547			$	2,860,547
Liabilities:
Recurring fair value measurements:
Securitized debt, at fair value		$	—			$	2,207,408			$	—			$	2,207,408
Total recurring fair value measurements			—				2,207,408				—				2,207,408
Total liabilities		$	—			$	2,207,408			$	—			$	2,207,408

Schedule of Gains and Losses Recognized on Assets Measured on Nonrecurring Basis

The following table presents gains and losses recognized on assets measured on a nonrecurring basis for the three and nine months ended September 30, 2025 and 2024:

		Three Months Ended September 30,								Nine Months Ended September 30,
Gain (Loss) on Assets Measured on a Nonrecurring Basis		2025				2024				2025				2024
		(In thousands)
Real estate owned, net		$	(6,307	)		$	(1,642	)		$	(10,530	)		$	(3,903	)
Individually evaluated loans requiring specific allowance, net			(566	)			(176	)			(1,007	)			(816	)
Total net loss		$	(6,873	)		$	(1,818	)		$	(11,537	)		$	(4,719	)

Valuation Techniques and Unobservable Inputs Related to Level 3 Assets

The following tables present the primary valuation techniques and unobservable inputs related to Level 3 assets that are recorded on a recurring and nonrecurring basis as of September 30, 2025 and December 31, 2024:

September 30, 2025

Asset Category

Fair Value

Primary Valuation Technique

Unobservable Input

Range

Weighted Average (1)

($ in thousands)

Nonrecurring:

Individually evaluated    loans requiring specific    allowance, net

$

10,756

Market comparables

Selling costs

8.0%

8.0%

Real estate owned, net

113,700

Market comparables

Selling costs

8.0%

8.0%

Recurring:

Loans held for investment,    at fair value

$

4,371,317

Discounted cash flow

Discount rate

7.8%

7.8%

Prepayment rate

0.0% to 65.0%

11.4%

Default rate

0.4% to 6.0%

1.4%

Loss severity rate

0.0% to 8.9%

0.9%

Mortgage servicing rights

12,597

Discounted cash flow

Discount rate

8.0%

8.0%

Prepayment rate

2.2% to 12.0%

5.6%

(1)Individually evaluated loans requiring specific allowance, net is weighted by collateral value; real estate owned, net is weighted by selling price; loans held for investment at fair value and mortgage servicing rights are weighted by UPB.

December 31, 2024

Asset Category

Fair Value

Primary Valuation Technique

Unobservable Input

Range

Weighted Average (1)

($ in thousands)

Nonrecurring:

Individually evaluated    loans requiring specific    allowance, net

$

11,884

Market comparables

Selling costs

8.0%

8.0%

Real estate owned, net

68,000

Market comparables

Selling costs

8.0%

8.0%

Recurring:

Loans held for investment,    at fair value

$

2,766,951

Discounted cash flow

Discount rate

8.4%

8.4%

Prepayment rate

0.0% to 30.0%

9.0%

Default rate

0.1% to 2.8%

1.0%

Loss severity rate

0.0% to 10.5%

1.0%

Mortgage servicing rights

13,712

Discounted cash flow

Discount rate

8.0%

8.0%

Prepayment rate

2.2% to 11.7%

5.1%

(1)Individually evaluated loans requiring specific allowance, net is weighted by collateral value; real estate owned, net is weighted by selling price; loans held for investment at fair value and mortgage servicing rights are weighted by UPB.

Rollforward of Loans held for investment and held for sale and Securitized Debt Measured at Estimated Fair Value on Recurring Basis

The following is a roll-forward of loans held for investment that are measured and recorded at estimated fair value on a recurring basis for the periods indicated:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
		(In thousands)
Beginning balance		$	3,826,505			$	1,971,683			$	2,766,951			$	1,306,072
Originations			713,017				456,328				2,033,018				1,257,225
Loans liquidated			(155,963	)			(93,065	)			(437,624	)			(232,615	)
Acquisition			—				1,500				—				16,490
REO transfer			(23,186	)			(4,227	)			(42,526	)			(6,448	)
Principal paydowns			(19,519	)			(12,784	)			(43,707	)			(26,586	)
Unrealized gain included in net income			30,463				35,246				95,205				72,003
Loans transferred to held for sale			—				(936	)			—				(32,515	)
Loans repurchased			—				973				—				1,092
Ending balance		$	4,371,317			$	2,354,718			$	4,371,317			$	2,354,718

The following is a roll-forward of loans held for sale that are measured and recorded at estimated fair value on a recurring basis for the periods indicated:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
		(In thousands)
Beginning balance		$	—			$	—			$	—			$	17,590
Originations			2,071				18,947				47,879				18,947
Loans liquidated			—				(936	)			(46,953	)			(49,366	)
Principal paydowns			—				—				—				(31	)
Unrealized gain included in net income			519				—				519				—
Realized gain (loss) included in net income			—				284				1,145				(424	)
Loans transferred from held for investment			—				936				—				32,515
Ending balance		$	2,590			$	19,231			$	2,590			$	19,231

The following is a roll-forward of securitized debt measured and recorded at estimated fair value on a recurring basis for the periods indicated:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
		(In thousands)
Beginning balance		$	3,232,769			$	1,509,952			$	2,207,408			$	877,417
Additions			666,237				286,966				2,022,738				1,005,044
Paydowns and payoffs			(160,105	)			(72,645	)			(512,511	)			(165,150	)
Total loss included in net income			9,988				24,995				31,254				31,957
Ending balance		$	3,748,889			$	1,749,268			$	3,748,889			$	1,749,268

Carrying Amounts and Estimated Fair Values of Financial Instruments

The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated:

		September 30, 2025
		Carrying																Estimated
Asset Category		Value				Level 1				Level 2				Level 3				Fair Value
		(In thousands)
Assets:
Cash		$	98,964			$	98,964			$	—			$	—			$	98,964
Restricted cash			18,846				18,846				—				—				18,846
Loans held for sale, at fair value			2,590				—				2,590				—				2,590
Loans held for investment, at amortized cost			2,127,170				—				—				2,061,812				2,061,812
Loans held for investment, at fair value			4,371,317				—				—				4,371,317				4,371,317
Accrued interest receivables			46,553				46,553				—				—				46,553
Mortgage servicing rights			12,597				—				—				12,597				12,597
Derivative assets			18				—				18				—				18
Liabilities:
Secured financing, net		$	286,218			$	—			$	—			$	289,650			$	289,650
Warehouse and repurchase facilities, net			332,386				—				332,386				—				332,386
Securitized debt, at amortized cost			1,783,150				—				1,653,645				—				1,653,645
Securitized debt, at fair value			3,748,889				—				3,748,889				—				3,748,889
Accrued interest payable			32,914				32,914				—				—				32,914

		December 31, 2024
		Carrying																Estimated
Asset Category		Value				Level 1				Level 2				Level 3				Fair Value
		(In thousands)
Assets:
Cash		$	49,901			$	49,901			$	—			$	—			$	49,901
Restricted cash			20,929				20,929				—				—				20,929
Loans held for investment, at amortized cost			2,420,116				—				—				2,321,141				2,321,141
Loans held for investment, at fair value			2,766,951				—				—				2,766,951				2,766,951
Accrued interest receivable			35,235				35,235				—				—				35,235
Mortgage servicing rights			13,712				—				—				13,712				13,712
Liabilities:
Secured financing, net		$	284,833			$	—			$	—			$	287,970			$	287,970
Warehouse repurchase facilities, net			348,082				—				348,082				—				348,082
Securitized debt, at amortized cost			2,019,056				—				1,820,945				—				1,820,945
Securitized debt, at fair value			2,207,408				—				2,207,408				—				2,207,408
Accrued interest payable			28,028				28,028				—				—				28,028

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing.

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