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Financing | 12 Months Ended
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Dec. 31, 2025
Disclosure of Repurchase Agreements [Abstract] |
Financing | Financing The following table presents a summary of the Company's financing as of December 31, 2025 and 2024 ($ in thousands).
| December 31, 2025 |  | December 31, 2024
|  |  |  |  |  |  | Weighted Average |  |  |  | Collateral Fair Value (1)(2) |  |
| Current Face |  | Carrying Value |  | Stated Maturity |  | Funding Cost |  | Life (Years) |  |  |  |  | Carrying Value
Financing Arrangements by Asset Type (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securitized Residential Mortgage Loans (4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-Agency Loans | $ | 428,657 |  |  | $ | 428,657 |  |  | Jan 2026 - May 2026 |  | 5.28 | % |  | 0.16 |  |  |  | $ | 641,399 |  |  | $ | 370,913 |
Home Equity Loans | 67,752 |  |  | 67,752 |  |  | Jan 2026 - Mar 2026 |  | 4.67 | % |  | 0.11 |  |  |  | 84,064 |  |  | — |
Re- and Non-Performing Loans | 27,264 |  |  | 27,264 |  |  | Jan 2026 - Mar 2026 |  | 5.89 | % |  | 0.07 |  |  |  | 41,438 |  |  | 31,798 |
Residential Mortgage Loans (5) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency-Eligible Loans | 19,490 |  |  | 19,490 |  |  | Sep 2026 - Dec 2026 |  | 5.43 | % |  | 0.87 |  |  |  | 21,149 |  |  | 95,688 |
Home Equity Loans (6) | 58,951 |  |  | 58,951 |  |  | Jun 2026 - Jul 2026 |  | 6.27 | % |  | 0.47 |  |  |  | 142,339 |  |  | 87,440 |
Non-Agency Loans | 29,817 |  |  | 29,817 |  |  | Jun 2026 |  | 5.73 | % |  | 0.44 |  |  |  | 35,108 |  |  | 7,615 |
Legacy WMC Commercial Loans | 27,436 |  |  | 27,436 |  |  | Mar 2026 |  | 6.73 | % |  | 0.23 |  |  |  | 55,376 |  |  | 47,222 |
Non-Agency RMBS | 137,386 |  |  | 137,386 |  |  | Jan 2026 - May 2026 |  | 4.64 | % |  | 0.14 |  |  |  | 173,891 |  |  | 78,978 |
Legacy WMC CMBS | 18,540 |  |  | 18,540 |  |  | Feb 2026 - Mar 2026 |  | 5.29 | % |  | 0.16 |  |  |  | 42,538 |  |  | 20,416 |
Agency RMBS | 10,857 |  |  | 10,857 |  |  | Jan 2026 - Mar 2026 |  | 4.32 | % |  | 0.20 |  |  |  | 15,465 |  |  | 2,038 |
Other Assets | 244 |  |  | 244 |  |  | Jun 2026 |  | 5.73 | % |  | 0.44 |  |  |  | 319 |  |  | — |
Total Financing Arrangements | $ | 826,394 |  |  | $ | 826,394 |  |  |  |  | 5.27 | % |  | 0.20 |  |  |  | $ | 1,253,086 |  |  | $ | 742,108 |
Securitized debt, at fair value (7)(8) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-Agency Loans (9) | $ | 6,432,326 |  |  | $ | 6,265,540 |  |  | N/A |  | 5.37 | % |  | 5.73 |  |  |  | N/A |  | $ | 5,391,413 |
Home Equity Loans (9) | 784,881 |  |  | 817,889 |  |  | N/A |  | 5.81 | % |  | 2.64 |  |  |  | N/A |  | — |
Re- and Non-Performing Loans | 99,930 |  |  | 94,494 |  |  | N/A |  | 3.45 | % |  | 3.27 |  |  |  | N/A |  | 100,554 |
Total Securitized Debt | $ | 7,317,137 |  |  | $ | 7,177,923 |  |  |  |  | 5.39 | % |  | 5.42 |  |  |  | N/A |  | $ | 5,491,967 |
Senior Unsecured Notes (10) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
February 2029 Senior Unsecured Notes | $ | 34,500 |  |  | $ | 33,327 |  |  | Feb 2029 |  | 10.79 | % |  | 3.17 |  |  |  | N/A |  | $ | 33,028 |
May 2029 Senior Unsecured Notes | 65,000 |  |  | 63,131 |  |  | May 2029 |  | 10.52 | % |  | 3.42 |  |  |  | N/A |  | 62,693 |
Total Senior Unsecured Notes | $ | 99,500 |  |  | $ | 96,458 |  |  |  |  | 10.61 | % |  | 3.33 |  |  |  | N/A |  | $ | 95,721 |
Total Financing | $ | 8,243,031 |  |  | $ | 8,100,775 |  |  |  |  | 5.44 | % |  | 5.05 |  |  |  | $ | 1,253,086 |  |  | $ | 6,329,796 |
(1)The Company also had $7.8 million and $10.6 million of cash pledged under repurchase agreements as of December 31, 2025 and 2024, respectively. (2)Under the terms of the Company’s financing agreements, the Company's financing counterparties may, in certain cases, sell or re-hypothecate the pledged collateral. (3)Financing arrangements are recorded at amortized cost on the Company's consolidated balance sheets. The fair value of the Company's financing arrangements approximates the carrying value due to their floating interest rates and short-term maturities of generally one year or less. Financing arrangements are classified as Level 2 of the fair value hierarchy. (4)Amounts pledged as collateral under Securitized residential mortgage loans include certain of the Company's retained interests in securitizations. Refer to Note 3 for more information on the Non-Agency VIEs, Home Equity VIEs, and RPL/NPL VIEs. (5)The Company's Residential mortgage loan financing arrangements include a maximum borrowing capacity of $1.6 billion on facilities used to finance Agency-Eligible, Home Equity and Non-Agency Loans, of which $50 million is contractually committed. (6)The collateral fair value pledged includes $69.7 million of Home Equity Loans, with an unpaid principal balance of $66.8 million, in which the Company has no outstanding financing but has the ability to borrow at an advance rate of 87.5% of unpaid principal balance pledged as collateral. Of this available financing, $50 million is contractually committed. (7)The holders of the securitized debt have no recourse to the general credit of the Company. The Company generally has no obligation to provide any other explicit or implicit support to the Non-Agency VIEs, Home Equity VIEs, and RPL/NPL VIEs. Refer to Note 12 for commitments related to the undrawn portion of a borrowers' home equity line of credit for which the Company may be required to fund. (8)The weighted average funding costs are calculated based on the amortized cost of the underlying securities. (9)The current face on the Company's Securitized debt in the Company's Non-Agency VIEs and Home Equity VIEs excludes Interest Only classes which have no principal balances and bear interest based on a notional value. The notional value is used solely to determine interest distributions on the interest only classes of securities. As of December 31, 2025, the notional value of interest only classes of Securitized debt in the Non-Agency VIEs and Home Equity VIEs was $3.7 billion and $295.4 million, respectively. (10)The Senior Unsecured Notes are recorded at amortized cost in the Company's consolidated balance sheets. As of December 31, 2025, the fair value of the Senior Unsecured Notes was $101.7 million. The fair value of the Senior Unsecured Notes is based upon prices obtained from third-party pricing services or broker quotations and are classified as Level 2 of the fair value hierarchy. Senior Unsecured Notes The Company’s Senior Unsecured Notes consist of $34.5 million principal amount 9.500% Senior Notes due February 2029 ("February 2029 Senior Unsecured Notes") and $65.0 million principal amount 9.500% Senior Notes due May 2029 ("May 2029 Senior Unsecured Notes" and together with the February 2029 Senior Unsecured Notes, the "Senior Unsecured Notes"). The February 2029 Senior Unsecured Notes were issued on January 26, 2024 in a public offering for net proceeds of approximately $32.8 million and the May 2029 Senior Unsecured Notes were issued on May 15, 2024 in a public offering for net proceeds of approximately $62.4 million. The below table provides a summary of the Senior Unsecured Notes as of December 31, 2025 ($ in thousands).
|  | Principal Amount (1) |  | Carrying Value |  |  |  | Maturity Date (2) |  | Redemption Date (3) |  | Rate (4)
February 2029 Senior Unsecured Notes |  | $ | 34,500 |  |  | $ | 33,327 |  |  |  |  | February 15, 2029 |  | February 15, 2026 |  | 9.500 | %
May 2029 Senior Unsecured Notes |  | 65,000 |  |  | 63,131 |  |  |  |  | May 15, 2029 |  | May 15, 2026 |  | 9.500 | %
(1)The Senior Unsecured Notes were issued at 100% of the principal amount. (2)The Company has the option to redeem the Senior Unsecured Notes earlier than the maturity date. (3)The Company may redeem the Senior Unsecured Notes in whole or in part at any time or from time to time at the Company’s option on or after the redemption date, upon not less than 30 days written notice to holders prior to the redemption date, at a redemption price equal to 100% of the outstanding principal amount of the Senior Unsecured Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. (4)The Senior Unsecured Notes bear interest at a rate equal to 9.500% per year, payable in cash quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on the applicable first pay date. The below table details the total interest expense incurred on the Senior Unsecured Notes during the years ended December 31, 2025 and 2024 (in thousands).
|  | Years Ended
|  | December 31, 2025 |  | December 31, 2024
Coupon interest expense |  | $ | 9,453 |  |  | $ | 6,926 |
Amortization expense |  | 737 |  |  | 504 |
Total interest expense |  | $ | 10,190 |  |  | $ | 7,430 |
Legacy WMC Convertible Notes In connection with the WMC acquisition, a wholly owned subsidiary of the Company assumed, and the Company guaranteed, $86.25 million aggregate principal amount of Legacy WMC Convertible Notes. The Legacy WMC Convertible Notes had an interest rate of 6.75% and interest was paid semiannually. During the year ended December 31, 2024, the Company repurchased $7.1 million of principal amount of its outstanding Legacy WMC Convertible Notes. The Company paid off the remaining principal amount outstanding of the Legacy WMC Convertible Notes at maturity in September 2024. There was no interest expense incurred during the year ended December 31, 2025 as the Legacy WMC Convertible Notes matured in September 2024. The below table details the total interest expense incurred on the Legacy WMC Convertible Notes during the year ended December 31, 2024 (in thousands).
|  |  |  | Year Ended
|  |  |  | December 31, 2024
Coupon interest expense |  |  |  | $ | 3,805 |
Amortization expense |  |  |  | 912 |
Total interest expense |  |  |  | $ | 4,717 |
Contractual maturities The following table allocates the current face of the Company's borrowings under financing arrangements and the Senior Unsecured Notes as of December 31, 2025 by contractual maturity (in thousands). Securitized debt is excluded from the below table as it does not have a contractual maturity.
| Within 30 Days |  | Over 30 Days to 3 Months |  | Over 3 Months to 12 Months |  | Over 12 Months |  | Total
Financing Arrangements by Asset Type |  |  |  |  |  |  |  |  |
Securitized Residential Mortgage Loans |  |  |  |  |  |  |  |  |
Non-Agency Loans | $ | 154,556 |  |  | $ | 242,563 |  |  | $ | 31,538 |  |  | $ | — |  |  | $ | 428,657 |
Home Equity Loans | 38,620 |  |  | 29,132 |  |  | — |  |  | — |  |  | 67,752 |
Re- and Non-Performing Loans | 10,518 |  |  | 16,746 |  |  | — |  |  | — |  |  | 27,264 |
Residential Mortgage Loans |  |  |  |  |  |  |  |  |
Agency-Eligible Loans | — |  |  | — |  |  | 19,490 |  |  | — |  |  | 19,490 |
Home Equity Loans | — |  |  | — |  |  | 58,951 |  |  | — |  |  | 58,951 |
Non-Agency Loans | — |  |  | — |  |  | 29,817 |  |  | — |  |  | 29,817 |
Legacy WMC Commercial Loans (1) | — |  |  | 27,436 |  |  | — |  |  | — |  |  | 27,436 |
Non-Agency RMBS | 41,828 |  |  | 92,153 |  |  | 3,405 |  |  | — |  |  | 137,386 |
Legacy WMC CMBS | — |  |  | 18,540 |  |  | — |  |  | — |  |  | 18,540 |
Agency RMBS | 923 |  |  | 9,934 |  |  | — |  |  | — |  |  | 10,857 |
Other Assets | — |  |  | — |  |  | 244 |  |  | — |  |  | 244 |
Total Financing Arrangements | $ | 246,445 |  |  | $ | 436,504 |  |  | $ | 143,445 |  |  | $ | — |  |  | $ | 826,394 |
Senior Unsecured Notes |  |  |  |  |  |  |  |  |
February 2029 Senior Unsecured Notes | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 34,500 |  |  | $ | 34,500 |
May 2029 Senior Unsecured Notes | — |  |  | — |  |  | — |  |  | 65,000 |  |  | 65,000 |
Total Senior Unsecured Notes | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 99,500 |  |  | $ | 99,500 |
(1)The borrowers for the Company’s Legacy WMC Commercial Loans are in maturity default as of December 31, 2025. Due to these defaults, the lender on the Company’s financing arrangements is permitted to request full repayment of the debt with respect to such assets. The Company does not currently expect the lender to require repayment of the related outstanding financing arrangements prior to its scheduled maturity in March 2026. Counterparties The Company had outstanding financing arrangements with six counterparties as of December 31, 2025 and 2024. The following table presents information as of December 31, 2025 and 2024 with respect to each counterparty that provides the Company with financing for which the Company had greater than 5% of its stockholders’ equity at risk, excluding stockholders’ equity at risk under financing through affiliated entities ($ in thousands).
|  | December 31, 2025 |  | December 31, 2024
Counterparty |  | Stockholders' Equity at Risk |  | Weighted Average Maturity (days) |  | Percentage of Stockholders' Equity |  | Stockholders' Equity at Risk |  | Weighted Average Maturity (days) |  | Percentage of Stockholders' Equity
Goldman Sachs Bank USA |  | $ | 153,393 |  |  | 103 |  | 27.4 | % |  | $ | 92,220 |  |  | 118 |  | 17.1 | %
BofA Securities, Inc |  | 150,267 |  |  | 68 |  | 26.8 | % |  | 135,141 |  |  | 82 |  | 25.0 | %
Barclays Capital Inc. |  | 80,721 |  |  | 73 |  | 14.4 | % |  | 75,516 |  |  | 20 |  | 14.0 | %
JP Morgan Securities, LLC |  | 29,992 |  |  | 31 |  | 5.3 | % |  | (1) |  | (1) |  | (1)
Various (2) |  | (2) |  | (2) |  | (2) |  | 81,855 |  |  | 211 |  | 15.2 | %
(1)As of December 31, 2024, the Company had less than 5% of its equity at risk under financing arrangements with JP Morgan Securities, LLC. (2)As of December 31, 2024, certain retained interests in securitizations are held in WMC RR 2023-1 Trust, a wholly owned subsidiary of the Company. WMC RR 2023-1 Trust issued certificates which were sold to various third-party investors. WMC RR 2023-1 Trust matured and was paid off in July 2025. As of December 31, 2025, the Company had no equity at risk under WMC RR 2023-1 Trust. Financial Covenants The Company’s financing arrangements generally include customary representations, warranties, and covenants, but may also contain more restrictive supplemental terms and conditions. Although specific to each financing arrangement, typical supplemental terms include requirements of minimum equity and liquidity, leverage ratios, and performance triggers. In addition, some of the financing arrangements contain cross default features, whereby default under an agreement with one lender simultaneously causes default under agreements with other lenders. To the extent that the Company fails to comply with the covenants contained in these financing arrangements or is otherwise found to be in default under the terms of such agreements, the counterparty has the right to accelerate amounts due under the associated agreement. Financings pursuant to financing arrangements are generally recourse to the Company. As of December 31, 2025, the Company is in compliance with all of its financial covenants.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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