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Fair Value of Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | The following table presents the Company’s financial instruments measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, respectively, on the Company’s condensed consolidated balance sheets (dollar amounts in thousands):
| Measured at Fair Value on a Recurring Basis at
| September 30, 2025 |  | December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets carried at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency RMBS | $ | — |  |  | $ | 6,628,003 |  |  | $ | — |  |  | $ | 6,628,003 |  |  | $ | — |  |  | $ | 3,136,812 |  |  | $ | — |  |  | $ | 3,136,812 |
Non-Agency RMBS | — |  |  | 28,174 |  |  | — |  |  | 28,174 |  |  | — |  |  | 69,687 |  |  | — |  |  | 69,687 |
U.S. Treasury securities | — |  |  | 182,538 |  |  | — |  |  | 182,538 |  |  | — |  |  | 622,045 |  |  | — |  |  | 622,045 |
Residential loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential loans | — |  |  | — |  |  | 308,422 |  |  | 308,422 |  |  | — |  |  | — |  |  | 632,266 |  |  | 632,266 |
Consolidated SLST | — |  |  | — |  |  | 1,182,599 |  |  | 1,182,599 |  |  | — |  |  | — |  |  | 965,672 |  |  | 965,672 |
Residential loans held in securitization trusts | — |  |  | — |  |  | 2,660,626 |  |  | 2,660,626 |  |  | — |  |  | — |  |  | 2,243,800 |  |  | 2,243,800 |
Residential loans held for sale | — |  |  | — |  |  | 105,036 |  |  | 105,036 |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family loans | — |  |  | — |  |  | 68,647 |  |  | 68,647 |  |  | — |  |  | — |  |  | 86,192 |  |  | 86,192 |
Equity investments | — |  |  | — |  |  | 28,825 |  |  | 28,825 |  |  | — |  |  | — |  |  | 113,492 |  |  | 113,492 |
Derivative assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate caps (1) (2) | — |  |  | 150 |  |  | — |  |  | 150 |  |  | — |  |  | 56 |  |  | — |  |  | 56 |
Options (2) | — |  |  | 79 |  |  | — |  |  | 79 |  |  | — |  |  | — |  |  | — |  |  | — |
IRLCs (2) | — |  |  | — |  |  | 2,383 |  |  | 2,383 |  |  | — |  |  | — |  |  | — |  |  | — |
Interest rate swaps (2) (4) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Futures (2) (4) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
MSRs (2) | — |  |  | — |  |  | 21,896 |  |  | 21,896 |  |  | — |  |  | — |  |  | 21,003 |  |  | 21,003 |
Assets of disposal group held for sale (3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 67 |  |  | — |  |  | 67 |
Total | $ | — |  |  | $ | 6,838,944 |  |  | $ | 4,378,434 |  |  | $ | 11,217,378 |  |  | $ | — |  |  | $ | 3,828,667 |  |  | $ | 4,062,425 |  |  | $ | 7,891,092 |
Liabilities carried at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CDOs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated SLST | $ | — |  |  | $ | — |  |  | $ | 1,016,952 |  |  | $ | 1,016,952 |  |  | $ | — |  |  | $ | — |  |  | $ | 811,591 |  |  | $ | 811,591 |
Residential loan securitizations | — |  |  | 2,118,581 |  |  | — |  |  | 2,118,581 |  |  | — |  |  | 1,253,332 |  |  | — |  |  | 1,253,332 |
Non-Agency RMBS re-securitization | — |  |  | 66,762 |  |  | — |  |  | 66,762 |  |  | — |  |  | 70,757 |  |  | — |  |  | 70,757 |
Senior unsecured notes | — |  |  | 257,590 |  |  | — |  |  | 257,590 |  |  | — |  |  | 60,310 |  |  | — |  |  | 60,310 |
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps (2) (4) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Futures (2) (4) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Credit default swaps (2) (4) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
TBAs (2) | — |  |  | 121 |  |  | — |  |  | 121 |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | — |  |  | $ | 2,443,054 |  |  | $ | 1,016,952 |  |  | $ | 3,460,006 |  |  | $ | — |  |  | $ | 1,384,399 |  |  | $ | 811,591 |  |  | $ | 2,195,990 |
(1)Excludes assets of disposal group held for sale (see Note 9). (2)Included in other assets or other liabilities, respectively, in the condensed consolidated balance sheets. (3)Includes interest rate caps classified as Level 2 instruments in the amount of $0.1 million as of December 31, 2024. (4)All of the Company’s interest rate swaps, credit default swaps and futures are cleared through central clearing houses. The Company exchanges variation margin for the derivative instruments based upon daily changes in fair value. Includes derivative liabilities of $71.0 million netted against derivative assets of $6.9 million and a net variation margin of $64.1 million as of September 30, 2025. Includes derivative liabilities of $19.9 million netted against derivative assets of $64.9 million and a variation margin of $45.0 million as of December 31, 2024. See Note 10 for additional information.
Schedule of Changes in Valuation of Level 3 Assets | The following tables detail changes in valuation for the Level 3 assets for the three and nine months ended September 30, 2025 and 2024, respectively (dollar amounts in thousands): Level 3 Assets:
| For the Three Months Ended September 30, 2025
| Residential loans |  |  |  |  |  |  |  |  |  |  |  |  |
| Residential loans |  | Consolidated SLST |  | Residential loans held in securitization trusts |  | Residential Loans Held for Sale |  | Multi-family loans |  | Equity investments |  | Assets of disposal group held for sale |  | MSRs |  | IRLCs |  | Total
Balance at beginning of period | $ | 367,089 |  |  | $ | 1,199,383 |  |  | $ | 2,459,555 |  |  | $ | — |  |  | $ | 74,999 |  |  | $ | 91,440 |  |  | $ | 500 |  |  | $ | 19,449 |  |  | $ | — |  |  | $ | 4,212,415 |
Total gains/(losses) (realized/unrealized) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Included in earnings | 8,813 |  |  | 7,677 |  |  | 13,354 |  |  | 8,824 |  |  | 2,224 |  |  | (1,582) |  |  | — |  |  | (1,099) |  |  | (1,919) |  |  | 36,292 |
Transfers in (1) | 580 |  |  | — |  |  | — |  |  | 145,748 |  |  | — |  |  | — |  |  | — |  |  | 141 |  |  | 4,302 |  |  | 150,771 |
Transfers out (2) | (4,014) |  |  | — |  |  | (6,670) |  |  | — |  |  | — |  |  | (33,759) |  |  | — |  |  | — |  |  | — |  |  | (44,443) |
Transfer to securitization trust, net (3) | (442,741) |  |  | — |  |  | 442,741 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Transfer from residential loans held for sale to residential loans | 213,811 |  |  |  |  |  |  | (213,811) |  |  |  |  |  |  |  |  |  |  |  |  |
Paydowns/Distributions (4) | (41,743) |  |  | (24,461) |  |  | (280,146) |  |  | (137) |  |  | (8,576) |  |  | (27,274) |  |  | — |  |  | 3,405 |  |  | — |  |  | (378,932) |
Sales | (121,221) |  |  | — |  |  | (6,945) |  |  | (218,031) |  |  | — |  |  | — |  |  | (500) |  |  | — |  |  | — |  |  | (346,697) |
Acquisitions | 327,848 |  |  | — |  |  | 38,737 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 366,585 |
Originations | — |  |  | — |  |  | — |  |  | 382,443 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 382,443 |
Balance at the end of period | $ | 308,422 |  |  | $ | 1,182,599 |  |  | $ | 2,660,626 |  |  | $ | 105,036 |  |  | $ | 68,647 |  |  | $ | 28,825 |  |  | $ | — |  |  | $ | 21,896 |  |  | $ | 2,383 |  |  | $ | 4,378,434 |
(1)Transfers into Level 3 include residential loans, residential loans held for sale, MSRs and IRLCs consolidated by the Company following its acquisition of the outstanding membership interests in Constructive that were not previously owned by the Company on July 15, 2025 (see Note 24). (2)Transfers out of Level 3 assets represent the transfer of residential loans to real estate owned assets and the consolidation of Constructive resulting from the Company's acquisition of the outstanding membership interests in Constructive that were not previously owned by the Company on July 15, 2025 (see Note 24) (3)During the three months ended September 30, 2025, the Company transferred, on a net basis, certain residential loans into residential loan revolver securitizations (see Note 7 for further discussion of the Company's residential loan securitizations). (4)Includes in-kind distribution of MSRs received from the Company's Constructive equity investment prior to acquisition on July 15, 2025.
| For the Three Months Ended September 30, 2024
| Residential loans |  |  |  |  |
| Residential loans |  | Consolidated SLST |  | Residential loans held in securitization trusts |  | Multi-family loans |  | Equity investments |  | Total
Balance at beginning of period | $ | 667,218 |  |  | $ | 1,004,944 |  |  | $ | 1,831,029 |  |  | $ | 92,997 |  |  | $ | 142,915 |  |  | $ | 3,739,103 |
Total gains/(losses) (realized/unrealized) |  |  |  |  |  |  |  |  |  |  |
Included in earnings | 14,397 |  |  | 26,939 |  |  | 44,079 |  |  | 2,887 |  |  | 6,054 |  |  | 94,356 |
Transfers out (1) | (25,064) |  |  | — |  |  | (1,513) |  |  | — |  |  | — |  |  | (26,577) |
Transfer to securitization trust, net (2) | (354,169) |  |  | — |  |  | 354,169 |  |  | — |  |  | — |  |  | — |
Paydowns/Distributions | (77,187) |  |  | (23,300) |  |  | (190,645) |  |  | (8,270) |  |  | (2,136) |  |  | (301,538) |
Sales | (117,915) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (117,915) |
Acquisitions | 593,575 |  |  | — |  |  | 30,587 |  |  | — |  |  | — |  |  | 624,162 |
Balance at the end of period | $ | 700,855 |  |  | $ | 1,008,583 |  |  | $ | 2,067,706 |  |  | $ | 87,614 |  |  | $ | 146,833 |  |  | $ | 4,011,591 |
(1)Transfers out of Level 3 assets represents the transfer of residential loans to real estate owned and the consolidation of Constructive resulting from the Company's acquisition of the outstanding membership interests in Constructive that were not previously owned by the Company on July 15, 2025 (see Note 24). (2)During the three months ended September 30, 2024, the Company transferred, on a net basis, certain residential loans into residential loan securitizations (see Note 7 for further discussion of the Company's residential loan securitizations).
| For the Nine Months Ended September 30, 2025
| Residential loans |  |  |  |  |  |  |  |  |  |  |  |  |
| Residential loans |  | Consolidated SLST |  | Residential loans held in securitization trusts |  | Residential Loans Held for Sale |  | Multi-family loans |  | Equity investments |  | Assets of disposal group held for sale |  | MSRs |  | IRLCs |  | Total
Balance at beginning of period | $ | 632,266 |  |  | $ | 965,672 |  |  | $ | 2,243,800 |  |  | $ | — |  |  | $ | 86,192 |  |  | $ | 113,492 |  |  | $ | — |  |  | $ | 21,003 |  |  | $ | — |  |  | $ | 4,062,425 |
Total gains/(losses) (realized/unrealized) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings | 15,592 |  |  | 35,429 |  |  | 50,338 |  |  | 8,824 |  |  | 7,447 |  |  | 580 |  |  | — |  |  | (2,653) |  |  | (1,919) |  |  | 113,638 |
Transfers in (1) | 580 |  |  | — |  |  | — |  |  | 145,748 |  |  | — |  |  | — |  |  | — |  |  | 141 |  |  | 4,302 |  |  | 150,771 |
Transfers out (2) | (30,740) |  |  | — |  |  | (10,540) |  |  | — |  |  | — |  |  | (33,759) |  |  | — |  |  | — |  |  | — |  |  | (75,039) |
Transfer to securitization trust, net (3) | (1,127,837) |  |  | — |  |  | 1,127,837 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Transfer to disposal group held for sale | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (500) |  |  | 500 |  |  | — |  |  | — |  |  | — |
Transfer from residential loans held for sale to residential loans | 213,811 |  |  | — |  |  | — |  |  | (213,811) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Paydowns/Distributions (4) | (162,548) |  |  | (65,907) |  |  | (862,024) |  |  | (137) |  |  | (24,992) |  |  | (50,988) |  |  | — |  |  | 3,405 |  |  | — |  |  | (1,163,191) |
Sales | (151,894) |  |  | — |  |  | (13,222) |  |  | (218,031) |  |  | — |  |  | — |  |  | (500) |  |  | — |  |  | — |  |  | (383,647) |
Acquisitions (5) | 919,192 |  |  | 247,405 |  |  | 124,437 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,291,034 |
Originations | — |  |  | — |  |  | — |  |  | 382,443 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 382,443 |
Balance at the end of period | $ | 308,422 |  |  | $ | 1,182,599 |  |  | $ | 2,660,626 |  |  | $ | 105,036 |  |  | $ | 68,647 |  |  | $ | 28,825 |  |  | $ | — |  |  | $ | 21,896 |  |  | $ | 2,383 |  |  | $ | 4,378,434 |
(1)Transfers into Level 3 include residential loans, residential loans held for sale, MSRs and IRLCs consolidated by the Company following its acquisition of the outstanding membership interests in Constructive that were not previously owned by the Company on July 15, 2025 (see Note 24). (2)Transfers out of Level 3 assets represent the transfer of residential loans to real estate owned assets and the consolidation of Constructive resulting from the Company's acquisition of the outstanding membership interests in Constructive that were not previously owned by the Company on July 15, 2025 (see Note 24). (3)During the nine months ended September 30, 2025, the Company transferred, on a net basis, certain residential loans into residential loan securitizations (see Note 7 for further discussion of the Company's residential loan securitizations). (4)Includes in-kind distribution of MSRs received from the Company's Constructive equity investment prior to acquisition on July 15, 2025. (5)During the nine months ended September 30, 2025, the Company purchased a first loss subordinated security issued from a securitization that it determined to consolidate as Consolidated SLST. As a result, the Company consolidated assets of the securitization (see Note 7).
| For the Nine Months Ended September 30, 2024
| Residential loans |  |  |  |  |
| Residential loans |  | Consolidated SLST |  | Residential loans held in securitization trusts |  | Multi-family loans |  | Equity investments |  | Total
Balance at beginning of period | $ | 827,535 |  |  | $ | 754,860 |  |  | $ | 1,501,908 |  |  | $ | 95,792 |  |  | $ | 147,116 |  |  | $ | 3,327,211 |
Total gains/(losses) (realized/unrealized) |  |  |  |  |  |  |  |  |  |  |
Included in earnings | 15,554 |  |  | 24,250 |  |  | 38,841 |  |  | 3,404 |  |  | 10,124 |  |  | 92,173 |
Transfers out (1) | (66,065) |  |  | — |  |  | (5,283) |  |  | — |  |  | — |  |  | (71,348) |
Transfer to securitization trust, net (2) | (987,452) |  |  | — |  |  | 987,452 |  |  | — |  |  | — |  |  | — |
Paydowns/Distributions | (223,643) |  |  | (55,584) |  |  | (521,018) |  |  | (11,582) |  |  | (10,407) |  |  | (822,234) |
Sales | (143,125) |  |  | — |  |  | (6,708) |  |  | — |  |  | — |  |  | (149,833) |
Acquisitions (3) | 1,278,051 |  |  | 285,057 |  |  | 72,514 |  |  | — |  |  | — |  |  | 1,635,622 |
Balance at the end of period | $ | 700,855 |  |  | $ | 1,008,583 |  |  | $ | 2,067,706 |  |  | $ | 87,614 |  |  | $ | 146,833 |  |  | $ | 4,011,591 |
(1)Transfers out of Level 3 assets represents the transfer of residential loans to real estate owned, single-family rental properties and other assets. (2)During the nine months ended September 30, 2024, the Company transferred, on a net basis, certain residential loans into residential loan securitizations (see Note 7 for further discussion of the Company's residential loan securitizations). (3)During the nine months ended September 30, 2024, the Company purchased first loss subordinated securities issued from a securitization that it determined to consolidate as Consolidated SLST. As a result, the Company consolidated assets of the securitization (see Note 7).
Schedule of Changes in Valuation of Level 3 Liabilities | The following tables details change in valuation for the Level 3 liabilities for the three and nine months ended September 30, 2025 and 2024, respectively (dollar amounts in thousands): Level 3 Liabilities:
| Consolidated SLST CDOs
| For the Three Months Ended September 30,
| 2025 |  | 2024
Balance at beginning of period | $ | 1,031,897 |  |  | $ | 844,032 |
Total losses/(gains) (realized/unrealized) |  |  |
Included in earnings | 6,284 |  |  | 20,638 |
Paydowns | (21,229) |  |  | (18,859) |
Balance at the end of period | $ | 1,016,952 |  |  | $ | 845,811 |
| Consolidated SLST CDOs
| For the Nine Months Ended September 30,
| 2025 |  | 2024
Balance at beginning of period | $ | 811,591 |  |  | $ | 593,737 |
Total losses/(gains) (realized/unrealized) |  |  |
Included in earnings | 25,992 |  |  | 20,498 |
Acquisitions (1) | 235,226 |  |  | 275,200 |
Paydowns | (55,857) |  |  | (43,624) |
Balance at the end of period | $ | 1,016,952 |  |  | $ | 845,811 |
(1)During the nine months ended September 30, 2025 and 2024, the Company purchased first loss subordinated securities issued from securitizations that it determined to consolidate as Consolidated SLST. As a result, the Company consolidated liabilities of the securitizations (see Note 7).
Schedule of Quantitative Information Regarding Significant and Unobservable Inputs used in Valuation of Level 3 Assets and Liabilities | The following table discloses quantitative information regarding the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value (dollar amounts in thousands, except input values):
September 30, 2025 |  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Weighted Average |  | Range
Assets |  |  |  |  |  |  |  |  |  |  |  |
Residential loans, residential loans held in securitization trusts and residential loans held for sale: (1) |  |  |  |  |  |  |  |  |  |  |  |
|  | $2,807,775 |  | Discounted cash flow |  | Lifetime CPR |  | 9.6% |  | — | - | 47.0%
|  |  |  |  |  | Lifetime CDR |  | 0.6% |  | — | - | 33.7%
|  |  |  |  |  | Loss severity |  | 13.2% |  | 0.2% | - | 100.0%
|  |  |  |  |  | Yield |  | 6.7% |  | 5.4% | - | 45.9%
|  | $106,622 |  | Liquidation model |  | Annual home price appreciation/(depreciation) |  | 0.2% |  | (1.5)% | - | 7.1%
|  |  |  |  |  | Liquidation timeline (months) |  | 16 |  | — | - | 54
|  |  |  |  |  | Property value |  | $2,020,758 |  | $30,000 | - | $13,900,000
|  |  |  |  |  | Yield |  | 8.3% |  | 5.9% | - | 35.6%
|  | $159,687 |  | Transaction price |  | Non-binding investor price |  | N/A |  |  |  |
Consolidated SLST (4) |  | $1,182,599 |  |  |  | Liability price |  | N/A |  |  |  |
Total |  | $4,256,683 |  |  |  |  |  |  |  |  |  |
Multi-family loans (1) (2) |  | $68,647 |  | Discounted cash flow |  | Discount rate |  | 12.1% |  | 11.0% | - | 13.5%
|  |  |  |  |  | Months to assumed redemption |  | 22 |  | <1 | - | 45
|  |  |  |  |  | Loss severity |  | — |  |  |  |
Equity investments (1) |  | $28,825 |  | Discounted cash flow |  | Discount rate |  | 16.2% |  | 15.0% | - | 17.5%
|  |  |  |  |  | Months to assumed redemption |  | 16 |  | 5 | - | 29
|  |  |  |  |  | Loss severity |  | — |  |  |  |
Mortgage servicing rights (1) |  | $21,896 |  | Discounted cash flow |  | Lifetime voluntary prepayment rate |  | 10.3% |  | 0.3% | - | 27.5%
|  |  |  |  |  | Lifetime CDR |  | 2.2% |  | — | - | 41.8%
|  |  |  |  |  | Yield |  | 12.2% |  | 12.0% | - | 14.0%
IRLCs (1) |  | $2,383 |  | Internal valuation model |  | Pull-through rate |  | 79.4% |  | 78.8% | - | 81.7%
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Consolidated SLST CDOs (3) (4) |  | $1,016,952 |  | Discounted cash flow |  | Yield |  | 5.2% |  | 4.4% | - | 12.3%
|  |  |  |  |  | Collateral prepayment rate |  | 6.1% |  | 2.7% | - | 7.3%
|  |  |  |  |  | Collateral default rate |  | 1.1% |  | — | - | 18.4%
|  |  |  |  |  | Loss severity |  | 15.4% |  | 0.3% | - | 25.7%
(1)Weighted average amounts are calculated based on the weighted average fair value of the assets. (2)As of September 30, 2025, the Company has reduced the fair value of one multi-family loan to zero as a result of developments with respect to the property, its financing and market conditions. Unobservable inputs do not include inputs related to this multi-family loan. As of September 30, 2025, the Company had one multi-family loan scheduled to redeem on October 3, 2025, which was repaid in full on the scheduled redemption date. (3)In accordance with the practical expedient in ASC 810, the Company determines the fair value of the residential loans held in Consolidated SLST based on the fair value of the CDOs issued by Consolidated SLST, including investment securities we own, as the fair value of these instruments is more observable. At September 30, 2025, the fair value of investment securities we own in Consolidated SLST amounts to $158.8 million. (4)Weighted average yield calculated based on the weighted average fair value of the CDOs issued by Consolidated SLST, including investment securities we own. Weighted average collateral prepayment rate, weighted average collateral default rate, and weighted average loss severity are calculated based on the weighted average unpaid balance of the CDOs issued by Consolidated SLST, including investment securities we own.
Schedule of Changes in Unrealized Gains (Losses) Included in Earnings for Level 3 Assets and Liabilities | The following table details the changes in unrealized gains (losses) included in earnings for the three and nine months ended September 30, 2025 and 2024, respectively, for our Level 3 assets and liabilities held as of September 30, 2025 and 2024, respectively (dollar amounts in thousands):
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Assets |  |  |  |  |  |  |
Residential loans: |  |  |  |  |  |  |
Residential loans (1) | $ | 1,110 |  |  | $ | 2,305 |  |  | $ | (3,557) |  |  | $ | (3,768) |
Consolidated SLST (1) | 7,395 |  |  | 28,655 |  |  | 37,100 |  |  | 27,855 |
Residential loans held in securitization trusts (1) | 16,774 |  |  | 42,170 |  |  | 50,064 |  |  | 34,918 |
Residential loans held for sale (1) | 2,552 |  |  | — |  |  | 2,552 |  |  | — |
Multi-family loans (1) | 123 |  |  | 176 |  |  | 479 |  |  | (4,613) |
Equity investments (2) | (2,860) |  |  | (1,097) |  |  | (2,368) |  |  | (7,677) |
IRLCs | 2,383 |  |  | — |  |  | 2,383 |  |  | — |
Mortgage servicing rights (1) | (1,019) |  |  | — |  |  | (2,573) |  |  | — |
Liabilities |  |  |  |  |  |  |
Consolidated SLST CDOs (1) | (4,955) |  |  | (21,902) |  |  | (25,875) |  |  | (20,596) |
(1)Presented in unrealized gains (losses), net on the Company's condensed consolidated statements of operations. (2)Presented in (loss) income from equity investments on the Company's condensed consolidated statements of operations.
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments | The following table presents a summary of the assets, liabilities and non-controlling interests of the Company's securitizations, Consolidated SLST and Consolidated Real Estate VIEs as of September 30, 2025 (dollar amounts in thousands). Intercompany balances have been eliminated for purposes of this presentation.
|  |  | Other VIEs |  |
| Financing VIEs |  |  |  | Consolidated SLST |  | Consolidated Real Estate |  | Total
Cash and cash equivalents | $ | — |  |  |  |  | $ | — |  |  | $ | 3,147 |  |  | $ | 3,147 |
Residential loans, at fair value | 2,660,626 |  |  |  |  | 1,182,599 |  |  | — |  |  | 3,843,225 |
Real estate, net held in Consolidated VIEs (1) | — |  |  |  |  | — |  |  | 469,764 |  |  | 469,764 |
Assets of disposal group held for sale (2) | — |  |  |  |  | — |  |  | 1,383 |  |  | 1,383 |
Other assets | 140,124 |  |  |  |  | 4,648 |  |  | 16,251 |  |  | 161,023 |
Total assets | $ | 2,800,750 |  |  |  |  | $ | 1,187,247 |  |  | $ | 490,545 |  |  | $ | 4,478,542 |
Collateralized debt obligations ($3,202,295 at fair value and $375,164 at amortized cost, net) | $ | 2,560,507 |  |  |  |  | $ | 1,016,952 |  |  | $ | — |  |  | $ | 3,577,459 |
Mortgages payable on real estate, net in Consolidated VIEs (3) | — |  |  |  |  | — |  |  | 362,747 |  |  | 362,747 |
Liabilities of disposal group held for sale (2) | — |  |  |  |  | — |  |  | 78 |  |  | 78 |
Other liabilities | 20,157 |  |  |  |  | 10,127 |  |  | 10,563 |  |  | 40,847 |
Total liabilities | $ | 2,580,664 |  |  |  |  | $ | 1,027,079 |  |  | $ | 373,388 |  |  | $ | 3,981,131 |
Redeemable non-controlling interest in Consolidated VIEs (4) | $ | — |  |  |  |  | $ | — |  |  | $ | 13,713 |  |  | $ | 13,713 |
Non-controlling interest in Consolidated VIEs (5) | $ | — |  |  |  |  | $ | — |  |  | $ | 163 |  |  | $ | 163 |
Net investment (6) | $ | 220,086 |  |  |  |  | $ | 160,168 |  |  | $ | 103,281 |  |  | $ | 483,535 |
(1)Included in real estate, net in the accompanying condensed consolidated balance sheets. (2)Represents assets and liabilities, respectively, of certain Consolidated Real Estate VIEs included in disposal group held for sale (see Note 9). (3)Included in mortgages payable on real estate, net in the accompanying condensed consolidated balance sheets. (4)Represents redeemable third-party ownership of membership interests in Consolidated Real Estate VIEs. See Redeemable Non-Controlling Interest in Consolidated VIEs below. (5)Represents third-party ownership of membership interests in Consolidated Real Estate VIEs. (6)The net investment amount is the maximum amount of the Company's investment that is at risk to loss and represents the difference between the carrying value of total assets and total liabilities held by VIEs, less non-controlling interests, if any. The following table presents a summary of the assets, liabilities and non-controlling interests of the Company's securitizations, Consolidated SLST and Consolidated Real Estate VIEs as of December 31, 2024 (dollar amounts in thousands). Intercompany balances have been eliminated for purposes of this presentation.
|  |  | Other VIEs |  |
| Financing VIEs |  | Consolidated SLST |  | Consolidated Real Estate |  | Total
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 4,151 |  |  | $ | 4,151 |
Residential loans, at fair value | 2,243,800 |  |  | 965,672 |  |  | — |  |  | 3,209,472 |
Real estate, net held in Consolidated VIEs (1) | — |  |  | — |  |  | 481,161 |  |  | 481,161 |
Assets of disposal group held for sale (2) | — |  |  | — |  |  | 118,613 |  |  | 118,613 |
Other assets | 154,426 |  |  | 4,065 |  |  | 16,696 |  |  | 175,187 |
Total assets | $ | 2,398,226 |  |  | $ | 969,737 |  |  | $ | 620,621 |  |  | $ | 3,988,584 |
Collateralized debt obligations ($2,135,680 at fair value and $842,764 at amortized cost, net) | $ | 2,166,853 |  |  | $ | 811,591 |  |  | $ | — |  |  | $ | 2,978,444 |
Mortgages payable on real estate, net in Consolidated VIEs (3) | — |  |  | — |  |  | 366,606 |  |  | 366,606 |
Liabilities of disposal group held for sale (2) | — |  |  | — |  |  | 97,065 |  |  | 97,065 |
Other liabilities | 16,162 |  |  | 8,313 |  |  | 10,621 |  |  | 35,096 |
Total liabilities | $ | 2,183,015 |  |  | $ | 819,904 |  |  | $ | 474,292 |  |  | $ | 3,477,211 |
Redeemable non-controlling interest in Consolidated VIEs (4) | $ | — |  |  | $ | — |  |  | $ | 12,359 |  |  | $ | 12,359 |
Non-controlling interest in Consolidated VIEs (5) | $ | — |  |  | $ | — |  |  | $ | 3,930 |  |  | $ | 3,930 |
Net investment (6) | $ | 215,211 |  |  | $ | 149,833 |  |  | $ | 130,040 |  |  | $ | 495,084 |
(1)Included in real estate, net in the accompanying condensed consolidated balance sheets. (2)Represents assets and liabilities, respectively, of certain Consolidated Real Estate VIEs included in disposal group held for sale (see Note 9). (3)Included in mortgages payable on real estate, net in the accompanying condensed consolidated balance sheets. (4)Represents redeemable third-party ownership of membership interests in Consolidated Real Estate VIEs. See Redeemable Non-Controlling Interest in Consolidated VIEs below. (5)Represents third-party ownership of membership interests in Consolidated Real Estate VIEs. (6)The net investment amount is the maximum amount of the Company's investment that is at risk to loss and represents the difference between the carrying value of total assets and total liabilities held by VIEs, less non-controlling interests, if any. The following table presents the carrying value and estimated fair value of the Company’s financial instruments at September 30, 2025 and December 31, 2024, respectively (dollar amounts in thousands):
|  |  | September 30, 2025 |  | December 31, 2024
| Fair Value Hierarchy Level |  | Carrying Value |  | Estimated Fair Value |  | Carrying Value |  | Estimated Fair Value
Financial Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | Level 1 |  | $ | 185,285 |  |  | $ | 185,285 |  |  | $ | 167,422 |  |  | $ | 167,422 |
Investment securities available for sale | Level 2 |  | 6,838,715 |  |  | 6,838,715 |  |  | 3,828,544 |  |  | 3,828,544 |
Residential loans | Level 3 |  | 4,151,647 |  |  | 4,151,647 |  |  | 3,841,738 |  |  | 3,841,738 |
Residential loans held for sale | Level 3 |  | 105,036 |  |  | 105,036 |  |  | — |  |  | — |
Multi-family loans | Level 3 |  | 68,647 |  |  | 68,647 |  |  | 86,192 |  |  | 86,192 |
Equity investments | Level 3 |  | 28,825 |  |  | 28,825 |  |  | 113,492 |  |  | 113,492 |
Derivative assets | Level 2 |  | 229 |  |  | 229 |  |  | 56 |  |  | 56 |
IRLCs | Level 3 |  | 2,383 |  |  | 2,383 |  |  | — |  |  | — |
Derivative assets in disposal group held for sale | Level 2 |  | — |  |  | — |  |  | 67 |  |  | 67 |
Mortgage servicing rights | Level 3 |  | 21,896 |  |  | 21,896 |  |  | 21,003 |  |  | 21,003 |
Financial Liabilities: |  |  |  |  |  |  |  |  |
Repurchase agreements | Level 2 |  | 6,481,072 |  |  | 6,481,072 |  |  | 4,012,225 |  |  | 4,012,225 |
Collateralized debt obligations: |  |  |  |  |  |  |  |  |
Residential loan securitizations at amortized cost, net | Level 3 |  | 375,164 |  |  | 359,892 |  |  | 842,764 |  |  | 818,482 |
Residential loan securitizations at fair value | Level 2 |  | 2,118,581 |  |  | 2,118,581 |  |  | 1,253,332 |  |  | 1,253,332 |
Consolidated SLST | Level 3 |  | 1,016,952 |  |  | 1,016,952 |  |  | 811,591 |  |  | 811,591 |
Non-Agency RMBS re-securitization | Level 2 |  | 66,762 |  |  | 66,762 |  |  | 70,757 |  |  | 70,757 |
Subordinated debentures | Level 3 |  | 45,000 |  |  | 40,108 |  |  | 45,000 |  |  | 38,918 |
Derivative liabilities | Level 2 |  | 121 |  |  | 121 |  |  | — |  |  | — |
Senior unsecured notes: |  |  |  |  |  |  |  |  |
Senior unsecured notes at amortized cost, net | Level 2 |  | 99,275 |  |  | 98,957 |  |  | 98,886 |  |  | 98,632 |
Senior unsecured notes at fair value | Level 2 |  | 257,590 |  |  | 257,590 |  |  | 60,310 |  |  | 60,310 |
Mortgages payable on real estate | Level 3 |  | 362,747 |  |  | 354,629 |  |  | 366,606 |  |  | 347,915 |
Mortgages payable on real estate in disposal group held for sale | Level 3 |  | — |  |  | — |  |  | 93,370 |  |  | 93,370 |

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