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Segment Reporting
 9 Months Ended
Sep. 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 September 30, 2025
                        
Interest income
  
$
54
    
$
15,589
    
$
-
    
$
15,643
  
Interest expense
    
(21)
      
12,364
      
-
      
12,343
  
Net interest income
    
75
      
3,225
      
-
      
3,300
  
Servicing fee income
    
10,764
    
-
    
-
      
10,764
  
Servicing costs
    
2,297
      
-
      
-
      
2,297
  
Net servicing income
    
8,467
      
-
      
-
      
8,467
  
Other income (expense) (A)
   
(5,470
)
  
2,276
    
-
      
(3,194
)
Other operating expenses (B)
    
(887
)
    
(665
)
    
(2,222
)
    
(3,774
)
Provision for corporate business taxes
     (284 )     -       -       (284 )
Net other comprehensive income
     -       2,561       -       2,561  
Comprehensive income (loss)
  
$
1,901
 
$
7,397
    
$
(2,222
)
  
$
7,076
  
                                 
Three Months Ended September 30, 2024
                                
Interest income
  
$
-
    
$
14,327
    
$
-
    
$
14,327
  
Interest expense
    
(57
)
    
14,275
      
-
      
14,218
  
Net interest income
    
57
      
52
      
-
      
109
  
Servicing fee income
    
11,681
    
-
    
-
      
11,681
  
Servicing costs
    
3,206
      
-
      
-
      
3,206
  
Net servicing income
    
8,475
      
-
      
-
      
8,475
  
Other expense (A)
    
(6,574
)
  
(9,087
)
  
-
      
(15,661
)
Other operating expenses (B)
    
(1,001
)
    
(167
)
    
(3,914
)
    
(5,082
)
Provision for corporate business taxes
     (285 )     -       -       (285 )
Net other comprehensive income
     -       16,400       -       16,400  
Comprehensive income (loss)
  
$
672
    
$
7,198
    
$
(3,914
)
  
$
3,956
  
                                 
Nine Months Ended September 30, 2025
                                
Interest income
  
$
80
    
$
45,177
    
$
-
    
$
45,257
  
Interest expense
    
1,065
      
36,085
      
-
      
37,150
  
Net interest income (expense)
    
(985
)
    
9,092
      
-
      
8,107
  
Servicing fee income
    
32,670
      
-
      
-
      
32,670
  
Servicing costs
    
6,794
      
-
      
-
      
6,794
  
Net servicing income
    
25,876
      
-
      
-
      
25,876
  
Other expense (A)
    
(14,190
)
    
(8,233
)
    
-
      
(22,423
)
Other operating expenses (B)
    
(2,644
)
    
(2,096
)
    
(6,158
)
    
(10,898
)
Provision for corporate business taxes
    
(1,578
)
    
-
      
-
      
(1,578
)
Net other comprehensive income
    
-
      
9,731
      
-
      
9,731
  
Comprehensive income (loss)
   $ 6,479     $ 8,494     $ (6,158 )   $ 8,815  
                                 
Nine Months Ended September 30, 2024
                                
Interest income
  
$
6
    
$
40,739
    
$
-
    
$
40,745
  
Interest expense
    
874
      
40,502
      
-
      
41,376
  
Net interest income (expense)
    
(868
)
    
237
      
-
      
(631
)
Servicing fee income
    
36,921
      
-
      
-
      
36,921
  
Servicing costs
    
9,295
      
-
      
-
      
9,295
  
Net servicing income
    
27,626
      
-
      
-
      
27,626
  
Other income (expense) (A)
    
(13,681
)
    
2,536
      
-
      
(11,145
)
Other operating expenses (B)
    
(2,774
)
    
(482
)
    
(10,546
)
    
(13,802
)
Provision for corporate business taxes
    
(1,652
)
    
-
      
-
      
(1,652
)
Net other comprehensive income
    
-
      
6,070
      
-
      
6,070
  
Comprehensive income (loss)
   $ 8,651     $ 8,361     $ (10,546 )   $ 6,466  

(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 CHMM.

   
Servicing
Related Assets
     RMBS     All Other
     Total  
Balance Sheet
                        
September 30, 2025
                        
Investments
  
$
218,688
    
$
1,191,478
    
$
-
    
$
1,410,166
  
Other assets
    
26,324
      
29,411
      
55,586
      
111,321
  
Total assets
    
245,012
      
1,220,889
      
55,586
      
1,521,487
  
Debt
    
147,359
      
1,107,141
      
-
      
1,254,500
  
Other liabilities
    
2,497
      
21,300
      
7,731
      
31,528
  
Total liabilities
    
149,856
      
1,128,441
      
7,731
      
1,286,028
  
Net Assets
  
$
95,156
    
$
92,448
    
$
47,855
    
$
235,459
  

 
Servicing
Related Assets
    

RMBS
    

All Other
    

Total
  
Balance Sheet
                       
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