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Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting
Note 3 — Segment Reporting


Public companies are required to disclose certain information about their reportable operating segments, which are defined as significant components of an enterprise for which separate financial information is available and is evaluated on a regular basis by the chief operating decision maker (“CODM”) in assessing performance of the segment and in deciding how to allocate resources to an individual segment. The structure of the Company’s reportable segments is determined based on the financial information used by the Company’s CODM to assess performance and allocate resources. The Company’s CODM is its Chief Executive Officer.



The two reportable segments that the Company conducts its business through are investments in RMBS and investments in Servicing Related Assets, which are the primary revenue generating assets of the Company. Activities that are not directly attributable or not allocated to any of the reportable segments are reported under the “All Other” category as a reconciling item to the Company’s consolidated financial statements. The activities within the “All Other” category consists of certain corporate level expenses including general and administrative expenses, compensation and benefits and management fees paid to affiliate prior to Internalization. The Company’s segments align with its primary business operations and how the CODM reviews its operating results. The primary measure of profitability used to evaluate segment performance and allocate resources is comprehensive income (loss). Analysis of the information presented in the tables below is presented to the CODM on a regular basis to assess segment profitability as well as to identify risks and opportunities to determine resource allocation.


The accounting principles applied at the operating segment level in determining comprehensive income (loss) are the same as those applied at the consolidated financial statement level. Compensation and benefits as well as general and administrative expenses are allocated to the reportable segments using a reasonable allocation key that takes into account the activities giving rise to such expenses.



Summary financial data with respect to the Company’s reportable segments is given below, together with the data for the Company as a whole (dollars in thousands):

 
Servicing
Related Assets
    
RMBS
    
All Other
    
Total
  
Income Statement
                        
Three Months Ended June 30, 2025
                        
Interest income
  
$
26
    
$
14,787
    
$
-
    
$
14,813
  
Interest expense
    
322
      
11,850
      
-
      
12,172
  
Net interest income (expense)
   
(296
)
    
2,937
      
-
      
2,641
  
Servicing fee income
    
10,933
      
-
      
-
      
10,933
  
Servicing costs
    
1,952
      
-
      
-
      
1,952
  
Net servicing income
    
8,981
      
-
      
-
      
8,981
  
Other expense (A)
   
(2,902
)
    
(2,683
)
    
-
      
(5,585
)
Other operating expenses (B)
    
(923
)
    
(644
)
    
(1,788
)
    
(3,355
)
Provision for corporate business taxes
     (1,121 )     -       -       (1,121 )
Net other comprehensive loss
     -       320       -       320  
Comprehensive income (loss)
  
$
3,739
    
$
(70
)
  
$
(1,788
)
  
$
1,881
  
                                 
Three Months Ended June 30, 2024
                                
Interest income
  
$
-
    
$
13,677
    
$
-
    
$
13,677
  
Interest expense
    
164
      
13,346
      
-
      
13,510
  
Net interest income (expense)
    
(164
)
    
331
      
-
      
167
  
Servicing fee income
    
12,349
      
-
      
-
      
12,349
  
Servicing costs
    
3,455
      
-
      
-
      
3,455
  
Net servicing income
    
8,894
      
-
      
-
      
8,894
  
Other income (expense) (A)
    
(2,869
)
    
387
      
-
      
(2,482
)
Other operating expenses (B)
    
(949
)
    
(157
)
    
(4,025
)
    
(5,131
)
Provision for corporate business taxes
     (664 )     -       -       (664 )
Net other comprehensive loss
     -       (3,734 )     -       (3,734 )
Comprehensive income (loss)
  
$
4,248
    
$
(3,173
)
  
$
(4,025
)
  
$
(2,950
)
                                 
Six Months Ended June 30, 2025
                                
Interest income
  
$
26
    
$
29,588
    
$
-
    
$
29,614
  
Interest expense
    
1,086
      
23,721
      
-
      
24,807
  
Net interest income (expense)
    
(1,060
)
    
5,867
      
-
      
4,807
  
Servicing fee income
    
21,906
      
-
      
-
      
21,906
  
Servicing costs
    
4,497
      
-
      
-
      
4,497
  
Net servicing income
    
17,409
      
-
      
-
      
17,409
  
Other expense (A)
    
(8,720
)
    
(10,509
)
    
-
      
(19,229
)
Other operating expenses (B)
    
(1,757
)
    
(1,431
)
    
(3,936
)
    
(7,124
)
Provision for corporate business taxes
    
(1,294
)
    
-
      
-
      
(1,294
)
Net other comprehensive income
  

-
    

7,170
    

-
    

7,170
  
Comprehensive income (loss)
   $ 4,578     $ 1,097     $ (3,936 )   $ 1,739  
                                 
Six Months Ended June 30, 2024
                                
Interest income
  
$
6
    
$
26,412
    
$
-
    
$
26,418
  
Interest expense
    
931
      
26,227
      
-
      
27,158
  
Net interest income (expense)
    
(925
)
    
185
      
-
      
(740
)
Servicing fee income
    
25,240
      
-
      
-
      
25,240
  
Servicing costs
    
6,089
      
-
      
-
      
6,089
  
Net servicing income
    
19,151
      
-
      
-
      
19,151
  
Other income (expense) (A)
    
(7,107
)
    
11,623
      
-
      
4,516
  
Other operating expenses (B)
    
(1,773
)
    
(315
)
    
(6,632
)
    
(8,720
)
Provision for corporate business taxes
    
(1,367
)
    
-
      
-
      
(1,367
)
Net other comprehensive loss
  

-
    

(10,330
)
  

-
    

(10,330
)
Comprehensive income (loss)
   $ 7,979     $ 1,163     $ (6,632 )   $ 2,510  

(A)
Included in other income (expense) are realized and unrealized gains (losses) on Servicing Related Assets, RMBS and derivatives.
(B)
Included in other operating expenses are general and administrative expenses, compensation and benefits and management fee to affiliate.

   
Servicing
Related Assets
     RMBS     All Other
     Total  
Balance Sheet
                        
June 30, 2025
                        
Investments
  
$
224,601
    
$
1,152,443
    
$
-
    
$
1,377,044
  
Other assets
    
27,828
      
27,370
      
58,417
      
113,615
  
Total assets
    
252,429
      
1,179,813
      
58,417
      
1,490,659
  
Debt
    
149,381
      
1,072,294
      
-
      
1,221,675
  
Other liabilities
    
2,966
      
24,566
      
9,039
      
36,571
  
Total liabilities
    
152,347
      
1,096,860
      
9,039
      
1,258,246
  
Net Assets
  
$
100,082
    
$
82,953
    
$
49,378
    
$
232,413
  

December 31, 2024
                        
Investments
  
$
233,658
    
$
1,122,420
    
$
-
    
$
1,356,078
  
Other assets
    
28,874
      
59,159
      
47,064
      
135,097
  
Total assets
    
262,532
      
1,181,579
      
47,064
      
1,491,175
  
Debt
    
151,226
      
1,077,257
      
-
      
1,228,483
  
Other liabilities
    
4,290
      
15,010
      
9,770
      
29,070
  
Total liabilities
    
155,516
      
1,092,267
      
9,770
      
1,257,553
  
Net Assets
  
$
107,016
    
$
89,312
    
$
37,294
    
$
233,622