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Mortgage Servicing Rights
 9 Months Ended
Sep. 30, 2025
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights
11. Mortgage Servicing Rights

The Company owned MSRs as of September 30, 2025 and December 31, 2024 resulting from the sale of loans Constructive originates with servicing retained, distributions received from Constructive prior to July 15, 2025 or purchases of MSRs. The Company's MSRs are associated with business purpose loans, are reported at fair value pursuant to the fair value option election (see Note 17) and are included in other assets in the accompanying condensed consolidated balance sheets. The primary risks associated with the Company's MSRs are changes in interest rates and prepayment speeds.

The following table presents activity related to MSRs for the three and nine months ended September 30, 2025, respectively (dollar amounts in thousands). The Company did not have MSRs during the three and nine months ended September 30, 2024.

For the Three Months Ended September 30, 2025For the Nine Months Ended September 30, 2025
Balance at beginning of period
$19,449 $21,003 
Additions:
MSRs received from equity investment in Constructive
3,405 3,405 
MSRs acquired through business combination
141 141 
Changes in fair value due to:
Changes in valuation inputs or assumptions used in valuation model
(506)(1,088)
Other changes in fair value, including runoff
(593)(1,565)
Balance at end of period
$21,896 $21,896 

The following table presents the components of servicing fee income recognized during the three and nine months ended September 30, 2025, respectively (dollar amounts in thousands). Servicing fee income is included in other income (loss) on the accompanying condensed consolidated statements of operations.

For the Three Months Ended September 30, 2025For the Nine Months Ended September 30, 2025
Servicing fees
$1,290 $3,755 
Prepayment fees
657 2,052 
Ancillary and other fee income (1)
52 145 
Servicing fee income
$1,999 $5,952 

(1)Includes default interest and late fee collections.

The Company recognized subservicing fee expenses in the amount of $0.2 million and $0.6 million related to MSRs during the three and nine months ended September 30, 2025, respectively, which is included in portfolio operating expenses on the accompanying condensed consolidated statements of operations.