Other Financing Liabilities, at Fair Value (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Activity Related to Financing Liability - MSRs Pledged

The following table presents the activity of the Other financing liabilities, at fair value that are classified as Level 3 within the valuation hierarchy.


	Three Months Ended September 30,		Nine Months Ended September 30,

Pledged MSR liability and ESS financing liability	2025			2024		2025		2024
Beginning balance	$	818.1		$	840.5	$	846.9	$	894.4
ESS issuances	12.7			—		12.7		—
MSR transfers
MSR transfers to MAV	0.2			—		0.2		—

MSR transfers to Rithm and others	7.8			5.0		21.9		17.7
Total MSR transfers	7.9			5.0		22.1		17.7
Derecognition of financing liability
Derecognition of financing liability - Rithm	—			(0.1)		—		(0.1)
Derecognition of financing liability - MAV (1)	—			—		—		(85.7)
Derecognition of financing liability - Others	—			—		(12.1)		—
Total derecognition of financing liability	—			(0.1)		(12.2)		(85.7)

Fair value (gain) loss
Changes in fair value due to inputs and assumptions	1.2			(7.4)		5.3		49.0


Realization of expected cash flows	(18.0)			(17.0)		(52.8)		(54.3)
Total fair value (gain) loss	(16.8)			(24.4)		(47.5)		(5.3)
Ending balance	$	822.0		$	821.0	$	822.0	$	821.0

(1)During the three months ended June 30, 2024, we derecognized a portion of the MAV Pledged MSR liability upon sale of the related MSRs by MAV to a third party with a UPB of $5.5 billion.

Schedule of Assets, Liabilities Related to MSR Transfer Agreements

The following table presents financing liabilities carried at fair value which include pledged MSR liabilities recorded in connection with MSR transfers, subservicing retained, that do not qualify for sale accounting, liabilities of consolidated mortgage-backed securitization trusts and MSR excess servicing spread (ESS) financing liability carried at fair value (see Note 12 – Borrowings for ESS financing liability carried at amortized cost).


			Outstanding Balance
Borrowing Type	Collateral	Maturity	September 30, 2025		December 31, 2024
MSR transfers not qualifying for sale accounting (1):
Pledged MSR liability, at fair value - MAV	MSRs	(1)	$	307.1	$	322.7
Rights to MSRs Agreements, at fair value - Rithm	MSRs	(1)	108.1		115.1
Pledged MSR liability, at fair value - Others	MSRs	(1)	151.5		145.8
Total Pledged MSR liability, at fair value			566.7		583.5

ESS financing liability, at fair value (2)	MSRs	(2)	255.3		263.3
Total Other financing liabilities, at fair value			$	822.0	$	846.9

(1)MSRs transferred in transactions which do not qualify for sale accounting treatment. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and the related financing liability (referred as Pledged MSR liability) on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. The fair value of the Pledged MSR liability may differ from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is contractually retained by PHH or other contractual cash flows.

(2)Consists of the obligation to remit to third parties a specified percentage of future servicing fee collections (servicing spread) on reference pools of MSRs, which we are entitled to as owner of the related MSRs. The servicing spread remittance is reported in Pledged MSR liability expense and fair value gains and losses of the ESS financing liability are reported in MSR valuation adjustment, net - See Note 9 – MSR Valuation Adjustments, Net.

Schedule of Results of Operations in Connection With MSR Transfer Agreements that Do Not Qualify for Sale Accounting


	Three Months Ended September 30,
	2025						2024
	Rithm and Others (1)		MAV		Total		Rithm and Others (1)		MAV		Total
Servicing fees collected on behalf of MAV, Rithm and others	$	18.4	$	13.1	$	31.4	$	19.1	$	14.1	$	33.2
Less: Subservicing fee retained by Onity	(3.5)		(1.8)		(5.3)		(4.4)		(2.1)		(6.5)
Ancillary fee/income and other settlement (including expense reimbursement)	3.0		(0.2)		2.8		3.4		(0.6)		2.8
Transferred MSR net servicing fee remittance	$	17.9	$	11.0	28.9		$	18.1	$	11.4	29.5
ESS servicing spread remittance					12.7						12.8
Pledged MSR liability expense					$	41.7					$	42.3


	Nine Months Ended September 30,
	2025						2024
	Rithm and Others (1)		MAV		Total		Rithm and Others (1)		MAV		Total
Servicing fees collected on behalf of Rithm, MAV and others	$	56.6	$	39.8	$	96.3	$	56.9	$	49.9	$	106.8
Less: Subservicing fee retained by Onity	(11.1)		(5.5)		(16.7)		(13.4)		(7.0)		(20.4)
Ancillary fee/income and other settlement (including expense reimbursement)	8.4		(0.4)		8.0		8.9		(0.9)		8.0
Transferred MSR net servicing fee remittance	$	53.9	$	33.9	87.7		$	52.4	$	42.1	94.4
ESS servicing spread remittance					38.9						38.9
Pledged MSR liability expense					$	126.6					$	133.3

(1) The information related to Rithm in the above tables relates to the MSR portfolio, referred to as Rights to MSRs (or RMSR), that does not qualify for sale accounting and represented $8.5 billion of UPB as of September 30, 2025 - see below discussion. Other subservicing agreements with Rithm are not reflected in the above table.