Loans

12 Months Ended

Dec. 31, 2025

Residential mortgage loans

The tables below detail information regarding the Company’s residential mortgage loan portfolio by collateral type as of December 31, 2025 and 2024 ($ in thousands). The gross unrealized gains/(losses) in the table below represent inception to date gains/(losses) since acquisition.


	Unpaid Principal Balance						Gross Unrealized						Weighted Average
December 31, 2025			Premium (Discount)		Amortized Cost		Gains		Losses		Fair Value		Coupon		Yield (1)		Life (Years) (2)
Securitized residential mortgage loans, at fair value (3)
Non-Agency Loans (4)	$	7,026,365	$	59,755	$	7,086,120	$	84,870	$	(266,118)	$	6,904,872	5.87	%	5.74	%	7.30
Home Equity Loans	874,718		61,241		935,959		24,574		—		960,533		9.81	%	7.70	%	5.43
Re- and Non-Performing Loans	155,984		(9,693)		146,291		—		(12,077)		134,214		4.22	%	5.93	%	5.54
Total Securitized residential mortgage loans, at fair value	$	8,057,067	$	111,303	$	8,168,370	$	109,444	$	(278,195)	$	7,999,619	6.27	%	5.97	%	7.07

Residential mortgage loans, at fair value
Agency-Eligible Loans	$	20,524	$	326	$	20,850	$	299	$	—	$	21,149	6.83	%	6.34	%	4.83
Home Equity Loans	135,804		5,913		141,717		663		(41)		142,339		9.07	%	7.77	%	4.83
Non-Agency Loans	36,578		638		37,216		18		(2,126)		35,108		6.14	%	3.62	%	4.17
Re- and Non-Performing Loans	1,140		(696)		444		637		—		1,081		N/A		NM		1.12
Total Residential mortgage loans, at fair value	$	194,046	$	6,181	$	200,227	$	1,617	$	(2,167)	$	199,677	8.27	%	7.22	%	4.68

Total as of December 31, 2025	$	8,251,113	$	117,484	$	8,368,597	$	111,061	$	(280,362)	$	8,199,296	6.32	%	6.00	%	7.01

	Unpaid Principal Balance						Gross Unrealized						Weighted Average
December 31, 2024			Premium (Discount)		Amortized Cost		Gains		Losses		Fair Value		Coupon		Yield (1)		Life (Years) (2)
Securitized residential mortgage loans, at fair value (3)
Non-Agency Loans (4)	$	6,382,814	$	5,817	$	6,388,631	$	28,767	$	(372,801)	$	6,044,597	5.59	%	5.68	%	8.12
Re- and Non-Performing Loans	182,501		(11,515)		170,986		—		(17,905)		153,081		3.43	%	6.55	%	5.53
Total Securitized residential mortgage loans, at fair value	$	6,565,315	$	(5,698)	$	6,559,617	$	28,767	$	(390,706)	$	6,197,678	5.53	%	5.70	%	8.05

Residential mortgage loans, at fair value
Agency-Eligible Loans	$	101,570	$	908	$	102,478	$	31	$	(364)	$	102,145	6.89	%	6.58	%	4.95
Home Equity Loans	99,863		1,625		101,488		2,509		(33)		103,964		10.35	%	9.89	%	4.30
Non-Agency Loans	13,098		(273)		12,825		101		(647)		12,279		7.54	%	4.72	%	3.76
Re- and Non-Performing Loans	2,016		(1,168)		848		981		—		1,829		N/A		103.24	%	1.37
Total Residential mortgage loans, at fair value	$	216,547	$	1,092	$	217,639	$	3,622	$	(1,044)	$	220,217	8.54	%	8.39	%	4.54

Total as of December 31, 2024	$	6,781,862	$	(4,606)	$	6,777,256	$	32,389	$	(391,750)	$	6,417,895	5.62%		5.79%		7.93

NM - Not Meaningful

(1)The weighted average yields are calculated based on the amortized cost of the underlying loans.

(2)This is based on projected life. Typically, actual maturities are shorter than stated contractual maturities. Maturities are affected by the lives of the underlying mortgage loans, periodic payments of principal, and prepayments of principal.

(3)Refer to the "Variable interest entities" section below for additional details related to the assets and liabilities of VIEs consolidated on the Company's consolidated balance sheets.

(4)Securitized Non-Agency Loans include loans that were considered to be Agency-Eligible prior to the Company's securitization.

The following tables present information regarding the delinquency status of the Company's residential mortgage loans ($ in thousands).


	Unpaid Principal Balance			Aging by Unpaid Principal Balance (1)
December 31, 2025			Loan Count (1)	Current		30-59 Days		60-89 Days		90+ Days (2)
Securitized residential mortgage loans
Non-Agency Loans	$	7,026,365	18,430	$	6,833,324	$	76,326	$	32,323	$	84,392
Home Equity Loans	874,718		10,599	869,432		2,963		489		1,834
Re- and Non-Performing Loans	155,984		1,073	123,901		14,730		5,247		12,106
Total Securitized residential mortgage loans	$	8,057,067	30,102	$	7,826,657	$	94,019	$	38,059	$	98,332
Residential mortgage loans
Agency-Eligible Loans	$	20,524	38	$	19,825	$	699	$	—	$	—
Home Equity Loans	135,804		1,368	135,773		—		—		31
Non-Agency Loans	36,578		53	16,468		1,444		1,112		17,554
Re- and Non-Performing Loans (1)	1,140		N/A	N/A		N/A		N/A		N/A
Total Residential mortgage loans	$	194,046	1,459	$	172,066	$	2,143	$	1,112	$	17,585
Total as of December 31, 2025	$	8,251,113	31,561	$	7,998,723	$	96,162	$	39,171	$	115,917

	Unpaid Principal Balance			Aging by Unpaid Principal Balance (1)
December 31, 2024			Loan Count (1)	Current		30-59 Days		60-89 Days		90+ Days (2)
Securitized residential mortgage loans
Non-Agency Loans	$	6,382,814	16,087	$	6,183,680	$	86,606	$	33,793	$	78,735
Re- and Non-Performing Loans	182,501		1,259	132,477		14,114		3,702		32,208
Total Securitized residential mortgage loans	$	6,565,315	17,346	$	6,316,157	$	100,720	$	37,495	$	110,943
Residential mortgage loans
Agency-Eligible Loans	$	101,570	214	$	101,062	$	508	$	—	$	—
Home Equity Loans	99,863		1,292	99,838		25		—		—
Non-Agency Loans	13,098		24	4,967		1,275		1,162		5,694
Re- and Non-Performing Loans (1)	2,016		N/A	N/A		N/A		N/A		N/A
Total Residential mortgage loans	$	216,547	1,530	$	205,867	$	1,808	$	1,162	$	5,694
Total as of December 31, 2024	$	6,781,862	18,876	$	6,522,024	$	102,528	$	38,657	$	116,637

(1)Loan count and aging data exclude the Re- and Non-Performing Loans subcategory of Residential mortgage loans above as there may be limited data available regarding the underlying collateral of these residual positions.

(2)Represents loans that either have a delinquency status greater than 90 days or are in the process of foreclosure. As of December 31, 2025, the $115.9 million of unpaid principal balance included securitized residential mortgage loans and residential mortgage loans that were 90+ days delinquent with a fair value of $54.0 million and loans in the process of foreclosure with a fair value of $57.1 million. As of December 31, 2024, the $116.6 million of unpaid principal balance included securitized residential mortgage loans and residential mortgage loans that were 90+ days delinquent with a fair value of $51.9 million and loans in the process of foreclosure with a fair value of $57.9 million.

As of December 31, 2025 and 2024, 6.4% and 9.6%, respectively, of the unpaid principal balance of the Company's securitized residential mortgage loans and residential mortgage loans were adjustable rate mortgages.

During the years ended December 31, 2025 and 2024, the Company purchased residential mortgage loans as detailed below (in thousands).


	Year Ended December 31, 2025				Year Ended December 31, 2024
	Unpaid Principal Balance		Fair Value (1)		Unpaid Principal Balance		Fair Value (1)

Agency-Eligible Loans	$	1,830,446	$	1,879,658	$	1,407,588	$	1,432,492
Home Equity Loans	1,078,861		1,154,081		281,374		288,885
Non-Agency Loans	—		—		23,506		23,796
Total	$	2,909,307	$	3,033,739	$	1,712,468	$	1,745,173

(1)Fair value represents purchase price at acquisition.

During the years ended December 31, 2025 and 2024, the Company sold residential mortgage loans as detailed below ($ in thousands).


	Year Ended December 31, 2025							Year Ended December 31, 2024
	Number of Loans	Proceeds		Realized Gains		Realized Losses		Number of Loans	Proceeds		Realized Gains		Realized Losses
Agency-Eligible Loans	88	$	37,333	$	238	$	(219)	190	$	73,614	$	356	$	(276)
Home Equity Loans	899	72,841		301		(7)		2,389	184,595		3,719		—
Non-Agency Loans (1)	623	287,892		3,457		(6,751)		160	86,349		1,274		(137)
Re- and Non-Performing Loans	88	9,092		832		(1,149)		74	13,493		1,427		(271)
Total	1,698	$	407,158	$	4,828	$	(8,126)	2,813	$	358,051	$	6,776	$	(684)

(1)During the fourth quarter 2025, the Company exercised its optional redemption right on one of its 2022 vintage securitizations and sold certain loans for proceeds of $276.6 million.

The Company’s residential mortgage loan portfolio consists of mortgage loans on residential real estate located throughout the United States. The following is a summary of the geographic concentration of credit risk as of December 31, 2025 and 2024 and includes states where the exposure is greater than 5% of the fair value of the Company's residential mortgage loan portfolio.


Geographic Concentration of Credit Risk (1)	December 31, 2025		December 31, 2024
California	30	%	35	%
Florida	10	%	11	%
New York	8	%	11	%
Texas	6	%	6	%
New Jersey	4	%	5	%

(1)Excludes the Re- and Non-Performing Loans subcategory of Residential mortgage loans above as there may be limited data available regarding the underlying collateral of these residual positions.

Variable interest entities

The Company entered into securitization transactions collateralized by its Non-Agency Loans/Agency-Eligible Loans, Home Equity Loans, and re- and non-performing loans, of which the securitization trusts are considered VIEs. The Company was determined to be the primary beneficiary of the VIEs and, as a result, consolidated the assets and liabilities of the VIEs on its consolidated balance sheets. In a securitization transaction, a pool of loans is transferred to a wholly-owned subsidiary of the Company and the loans are deposited into a newly created securitization trust. The securitization trust issues various classes of mortgage pass-through certificates backed by the cash flows from the underlying residential mortgage loans (the "Certificates"). As the sponsor of the securitization, the Company retains certain Certificates issued by the securitization trusts in order to satisfy risk retention rules, which generally require the sponsor to retain at least 5% of the fair value of the Certificates issued in the securitization. The Company's continuing involvement in these securitization trusts represents its retained Certificates and the ability to purchase all of the outstanding Certificates upon the occurrence of certain events through an optional redemption right held by the Company. The Company has also engaged a related party of the Manager and subsidiary of TPG to act as the servicing administrator of certain securitization trusts.

The following table details the carrying value related to the assets and liabilities of the Company’s consolidated VIEs as of December 31, 2025 and 2024 (in thousands).


	Non-Agency VIEs				Home Equity VIEs (1)		RPL/NPL VIEs
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2025		December 31, 2024
Assets
Securitized residential mortgage loans, at fair value (2)	$	6,904,872	$	6,044,597	$	960,533	$	134,214	$	153,081
Restricted Cash	—		—		1,055		12		10
Other assets	37,711		30,922		8,128		5,517		2,064
Total Assets	$	6,942,583	$	6,075,519	$	969,716	$	139,743	$	155,155

Liabilities
Securitized debt, at fair value (2) (3)	$	6,265,540	$	5,391,413	$	817,889	$	94,494	$	100,554
Other liabilities	26,129		22,185		4,497		274		298
Total Liabilities	$	6,291,669	$	5,413,598	$	822,386	$	94,768	$	100,852

Total Equity (4)	$	650,914	$	661,921	$	147,330	$	44,975	$	54,303

(1)As of December 31, 2024, the Company did not hold any assets or liabilities in Home Equity VIEs.

(2)Securitized residential mortgage loans in Non-Agency VIEs include loans that were considered to be Agency-Eligible prior to the Company's securitization.

(3)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 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.

(4)The Company had outstanding financing arrangements collateralized by the Company's retained interests in its VIEs. Refer to Note 6 for additional information.

Legacy WMC Commercial loans

The tables below detail information regarding the Company's Legacy WMC Commercial loan portfolio as of December 31, 2025 and 2024 ($ in thousands). The gross unrealized gains/(losses) in the table below represent inception to date gains/(losses) since acquisition.


December 31, 2025			Premium / (Discount)		Amortized Cost		Gross Unrealized				Fair Value		Weighted Average					Maturity Date (3)	LTV (4)		Location
Loan (1)(2)	Unpaid Principal Balance						Gains		Losses				Coupon		Yield (3)		Life (Years) (3)
Loan A (5)	$	7,259	$	(29)	$	7,230	$	—	$	(684)	$	6,546	7.98	%	—	%	N/A	N/A	61.63	%	IL, FL
Loan B (5)	13,206		(52)		13,154		—		(1,244)		11,910		7.98	%	—	%	N/A	N/A	75.33	%	CA
Loan C (5)	24,535		(99)		24,436		—		(2,310)		22,126		7.98	%	—	%	N/A	N/A	77.22	%	NY
Loan D (6)	22,204		(611)		21,593		—		(6,799)		14,794		7.16	%	—	%	N/A	N/A	42.50	%	CT
Total	$	67,204	$	(791)	$	66,413	$	—	$	(11,037)	$	55,376	7.71	%	—	%	N/A		65.69	%


December 31, 2024			Premium / (Discount)		Amortized Cost		Gross Unrealized				Fair Value		Weighted Average					Maturity Date (9)	LTV (4)		Location
Loan (1)(2)	Unpaid Principal Balance						Gains		Losses				Coupon		Yield (7)		Life (Years) (8)
Loan A (5)	$	7,259	$	(64)	$	7,195	$	41	$	—	$	7,236	8.71	%	10.69	%	0.42	5/6/2025	61.63	%	IL, FL
Loan B (5)	13,206		(116)		13,090		74		—		13,164		8.71	%	10.69	%	0.42	5/6/2025	75.33	%	CA
Loan C (5)	24,535		(215)		24,320		137		—		24,457		8.71	%	10.69	%	0.42	5/6/2025	77.22	%	NY
Loan D (6)	22,204		(168)		22,036		112		—		22,148		7.89	%	8.73	%	0.68	8/6/2025	42.50	%	CT
Total	$	67,204	$	(563)	$	66,641	$	364	$	—	$	67,005	8.44	%	10.04	%	0.50		63.69	%

(1)The Company has the contractual right to receive a balloon payment for each loan.

(2)Each commercial loan investment is a first mortgage loan.

(3)The borrowers for the Company’s Legacy WMC Commercial Loans are in maturity default as of December 31, 2025. See footnotes 5 and 6 for further details related to each loan. 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.

(4)Represents the LTV at acquisition of WMC. The total LTV on commercial loans is presented based on fair value.

(5)Loans A, B, and C have a floating rate coupon equal to 4.20% plus one-month SOFR and are collateralized by hotels. During the second quarter 2025, these loans entered maturity default and were placed on non-accrual. Following a period of forbearance, the lender parties and the borrower are pursuing a consensual sale of the hotels, which may include transferring title of all or certain of the properties to the lender parties via a deed-in-lieu of foreclosure to facilitate the sale. The Company currently expects the sales process to be completed in the first half of 2026, however there are no assurances that sales can be completed within the time anticipated or at all.

(6)Loan D has a floating rate coupon equal to 3.38% plus one-month SOFR and is collateralized by a retail property. During the third quarter 2025, the loan entered maturity default. The property is generating positive cash flow and, as of the date of this report, the Company has continued to receive interest payments from the property’s cash flows. The lender parties are currently evaluating with the borrower a deed-in-lieu of foreclosure and/or a consensual sale of the property through a national commercial real estate sales advisor.

(7)The weighted average yields are calculated based on the amortized cost of the underlying loans.

(8)Actual maturities of commercial loans may be shorter or longer than stated contractual maturities. Maturities are affected by prepayments of principal.

(9)Represents maturity date of the last possible extension option.