Annual report [Section 13 and 15(d), not S-K Item 405]

Mortgage Loans Held-for-Sale, at Fair Value

v3.25.4
Mortgage Loans Held-for-Sale, at Fair Value
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Mortgage Loans Held-for-Sale, at Fair Value Mortgage Loans Held-for-Sale, at Fair Value
The Company originates residential mortgage loans for the purpose of selling to the GSEs or other third-party investors in the secondary market on a servicing-retained basis, typically within 60 days of origination. The Company also holds a small amount of mortgage loans purchased from the collateral underlying its MSR. Mortgage loans held-for-sale are recorded at fair value as a result of a fair value option election. The following table presents the carrying value of Company’s mortgage loans held-for-sale as of December 31, 2025 and December 31, 2024:
(in thousands) December 31,
2025		 December 31,
2024
Unpaid principal balance $ 13,336  $ 2,297 
Mark-to-market adjustments 294  37 
Total mortgage loans held-for-sale $ 13,630  $ 2,334 

The following table presents a reconciliation of the Company’s mortgage loans held-for-sale for the years ended December 31, 2025, 2024 and 2023:
Year Ended
December 31,
(in thousands) 2025 2024 2023
Balance at beginning of period $ 2,334  $ 332  $ 283 
Originations and purchases of mortgage loans
 221,099  64,416  80 
Sales and principal collections
 (210,060) (62,437) (31)
Unrealized gains (losses) on mortgage loans 257  23  — 
Balance at end of period $ 13,630  $ 2,334  $ 332 

The Company is subject to credit risk associated with its originated mortgage loans during the period of time prior to the sale of these loans. The Company considers credit risk associated with these loans to be minimal as it holds the loans for a short period of time and the market for these loans continues to be highly liquid.
The Company utilizes repurchase agreements and warehouse lines of credit to finance its mortgage loans held-for-sale. At December 31, 2025, the Company had pledged mortgage loans held-for-sale with a carrying value of $13.4 million as collateral for its repurchase agreements and warehouse line of credit. At December 31, 2024, the Company had pledged mortgage loans held-for-sale with a carrying value of $2.1 million as collateral for its warehouse line of credit. See Note 13 - Financing.