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Fair Value (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments and Nonfinancial Assets Measured at Fair Value on a Recurring or Non-recurring basis or Disclosed, but not Carried, at Fair Value

The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not measured, at fair value are as follows:

									December 31,
									2024												2023
			Level						Carrying Value						Fair Value						Carrying Value						Fair Value
Financial assets:
Loans held for sale (a) (d)			3, 2						$	1,290.2					$	1,290.2					$	677.3					$	677.3
Loans held for investment, at fair value (a) (e)			3						$	11,125.3					$	11,125.3					$	7,975.5					$	7,975.5
Advances, net (b)			3						$	577.2					$	577.2					$	678.8					$	678.8
Receivables, net (b)			3						$	176.4					$	176.4					$	154.8					$	154.8
Financial liabilities:
Advance match funded liabilities (b)			3						$	417.1					$	417.1					$	499.7					$	499.7
HMBS-related borrowings, at fair value (a)			3						$	10,872.1					$	10,872.1					$	7,797.3					$	7,797.3
Other financing liabilities, at fair value (a)			3						846.9						846.9						900.0						900.0
Mortgage loan financing facilities (b) (c)			3						$	1,528.2					$	1,535.3					$	710.6					$	717.6
MSR financing facilities (b) (c)			3						$	957.9					$	947.6					$	916.2					$	900.3
Senior notes (b) (c)			3, 2						$	487.4					$	495.0					$	595.8					$	556.5
Derivative financial instrument assets (liabilities), net
Interest rate lock commitments (IRLCs) (a)			3						$	(0.5)					$	(0.5)					$	5.6					$	5.6
Other derivatives (a)			1						(11.7)						(11.7)						8.9						8.9
MSRs (a)			3						$	2,466.3					$	2,466.3					$	2,272.2					$	2,272.2

(a)Measured at fair value on a recurring basis in our financial statements.

(b)Disclosed, but not measured at fair value in our financial statements.

(c)The carrying values are net of unamortized debt issuance costs and discount. See Note 14 — Borrowings for additional information. 

(d)The newly originated portfolio of GSE and forward Ginnie Mae loans held for sale pending securitization with the Agencies is classified as Level 2; all other loans are classified as Level 3.

(e)Includes nil and $5.6 million at December 31, 2024 and December 31, 2023, respectively, of Loans held for investment - Restricted for securitization investors (non-reverse).

Summary of Reconciliation of the Changes in Fair Value of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present a reconciliation of the changes in fair value of certain Level 3 assets and liabilities that we measure at fair value on a recurring basis (refer to the respective notes for other Level 3 assets and liabilities):

																											Loans Held for Sale - Fair Value												ESS Financing Liability						IRLCs
Year Ended December 31, 2024
Beginning balance																											$	203.1											$	(248.9)					$	5.6
Purchases, issuances, sales and settlements
Purchases and other																											550.9												—						—
Issuances (1)																											—												(23.8)						28.9
Sales																											(170.8)												—						—
Settlements																											(92.2)												28.0						—
Transfers from (to):
Loans held for sale, at fair value (1)																											—												—						(26.0)
Loans held for investment, at fair value																											4.8												—						—
Receivables, net																											(32.9)												—						—
REO (Other assets)																											(26.8)												—						—
Advances (capitalization upon Ginnie Mae modification)																											9.4												—						—
Other																											2.9												—						—
Net additions (disposition/derecognition)																											245.3												4.2						3.0
Included in earnings:
Change in fair value (1)																											24.5												(18.7)						(9.1)
Ending balance																											$	472.9											$	(263.3)					$	(0.5)

																											Loans Held for Sale - Fair Value												ESS Financing Liability						IRLCs
Year Ended December 31, 2023
Beginning balance																											$	32.1											$	(199.0)					$	(0.7)
Purchases, issuances, sales and settlements
Purchases and other																											364.2												—						—
Issuances (1)																											—												(68.7)						39.3
Sales																											(102.4)												—						—
Settlements																											(60.5)												29.9						—
Transfers from (to):
Loans held for sale, at fair value (1)																											—												—						(64.9)
Loans held for investment, at fair value																											4.5
Receivables, net																											(34.7)												—						—
REO (Other assets)																											(15.2)
Advances (capitalization upon Ginnie Mae modification)																											4.4
Other																											(0.9)												—						—
Net additions (disposition/derecognition)																											159.3												(38.7)						(25.6)
Included in earnings:
Change in fair value (1)																											11.7												(11.1)						32.0
Ending balance																											$	203.1											$	(248.9)					$	5.6

															Loans Held for Sale - Fair Value												ESS Financing Liability						IRLCs
Year Ended December 31, 2022
Beginning balance															$	220.9											$	—					$	18.1
Purchases, issuances, sales and settlements
Purchases															140.4												—						—
Issuances (1)															—												(200.9)						168.0
Sales															(318.0)												—						—
Settlements																											6.6						—
Transfers from (to):
Loans held for sale, at fair value (1)															—												—						(141.5)
Receivables, net															(4.2)												—						—
Other															(0.3)												(6.1)						—
Net additions (disposition/derecognition)															(182.1)												(200.5)						26.5
Included in earnings:
Change in fair value (1)															(6.8)												1.4						(45.3)
Ending balance															$	32.1											$	(199.0)					$	(0.7)

(1)IRLC activity (issuances and transfers) represent changes in fair value included in earnings. This activity is presented on a gross basis in the table for disclosure purposes. Total net change in fair value included in earnings attributed to IRLCs is a gain (loss) of $(6.2) million, $6.3 million and $(18.8) million for 2024, 2023 and 2022, respectively. See Note 18 — Derivative Financial Instruments and Hedging Activities.

Schedule of Significant Assumptions used in Valuation

Significant unobservable assumptions include conditional prepayment rate and discount rate. The conditional prepayment rate assumption displayed in the table below is inclusive of voluntary (repayment or payoff) and involuntary (inactive/delinquent status and default) prepayments. The discount rate assumption is primarily based on an assessment of current market yields on reverse mortgage loan and tail securitizations, expected duration of the asset and current market interest rates.

			December 31,
Significant unobservable assumptions			2024						2023
Life in years
Range			0.4 to 7.6						0.8 to 7.9
Weighted average			4.2						5.2
Conditional prepayment rate (CPR), including voluntary and involuntary prepayments (a)
Range			13.1% to 31.6%						12.0% to 35.4%
Weighted average			21.3		%				17.2		%
Discount rate			5.4		%				4.9		%

(a)Annualized rate of lifetime projected prepayments as a percentage of the UPB at the beginning of any given period.

			December 31,
			2024												2023
Significant unobservable assumptions			Agency						Non-Agency						Agency						Non-Agency
Weighted average prepayment speed			6.4		%				7.8		%				7.7		%				7.9		%
Weighted average lifetime delinquency rate			1.2		%				10.4		%				1.3		%				10.0		%
Weighted average discount rate			10.0		%				10.9		%				9.2		%				11.4		%
Weighted average cost to service (in dollars)			$	71					$	193					$	71					$	192

			December 31,
Significant unobservable assumptions			2024						2023
Life in years
Range			0.4 to 7.6						0.8 to 7.9
Weighted average			4.2						5.2
Conditional prepayment rate
Range			13.1% to 31.6%						12.0% to 35.4%
Weighted average			21.3		%				17.2		%
Discount rate			5.3		%				4.9		%

			December 31,
Significant unobservable assumptions			2024						2023
Weighted average prepayment speed			5.4		%				6.5		%
Weighted average delinquency rate			3.0		%				2.8		%
Weighted average subservicing life (in years)			4.7						4.3
Weighted average discount rate			10.3		%				9.6		%
Weighted average cost to service (in dollars)			$	133					$	130

Summary of Estimated Change in the Value of MSRs Carried at Fair Value

The following table summarizes the estimated change in the value of the MSRs as of December 31, 2024 given hypothetical increases in lifetime prepayments and yield assumptions:

Adverse change in fair value			10%						20%
Change in weighted average prepayment speeds (in percentage points)			0.7						1.5
Change in fair value due to change in weighted average prepayment speeds			$	(59.3)					$	(117.2)
Change in weighted average discount rate (in percentage points)			1.0						2.0
Change in fair value due to change in weighted average discount rate			$	(86.2)					$	(165.3)

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