Servicing Activities (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Transfers and Servicing [Abstract] |
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| Schedule of Servicing Assets at Fair Value |
The following table summarizes activity related to the Company’s MSR portfolio for the years ended December 31, 2025, 2024 and 2023:
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Year Ended |
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December 31, |
| (in thousands) |
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2025 |
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2024 |
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2023 |
| Balance at beginning of period |
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$ |
2,994,271 |
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$ |
3,052,016 |
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$ |
2,984,937 |
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Additions from purchases of mortgage servicing rights |
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103,828 |
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114,040 |
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312,637 |
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| Additions from sales of mortgage loans |
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1,939 |
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667 |
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— |
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Dispositions from sales of mortgage servicing rights (1)
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(435,904) |
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(109,818) |
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(133,938) |
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| Changes in fair value due to: |
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Changes in valuation inputs or assumptions used in the valuation model |
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(4,191) |
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168,972 |
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116,043 |
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Other changes in fair value (2)
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(238,033) |
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(231,606) |
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(227,663) |
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Balance at end of period (3)
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$ |
2,421,910 |
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$ |
2,994,271 |
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$ |
3,052,016 |
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____________________
(1)During the year ended December 31, 2023, excess MSR was transferred to Agency-sponsored trusts in exchange for stripped mortgage backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties and the Company acquired the remaining balance of those SMBS, which were briefly included within Agency AFS securities until their sale in the same year.
(2)Primarily represents changes due to the realization of cash flows.
(3)Based on the prior month-end’s principal balance of the loans underlying the Company’s MSR, increased for current month purchases.
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| Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets |
As of December 31, 2025 and December 31, 2024, the key economic assumptions and sensitivity of the fair value of MSR to immediate 10% and 20% adverse changes in these assumptions were as follows:
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| (dollars in thousands, except per loan data) |
December 31,
2025 |
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December 31,
2024 |
| Weighted average prepayment speed: |
6.8 |
% |
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6.3 |
% |
| Impact on fair value of 10% adverse change |
$ |
(51,264) |
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$ |
(61,975) |
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| Impact on fair value of 20% adverse change |
$ |
(99,777) |
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$ |
(120,142) |
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| Weighted average delinquency: |
0.9 |
% |
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0.8 |
% |
| Impact on fair value of 10% adverse change |
$ |
(1,078) |
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$ |
(1,297) |
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| Impact on fair value of 20% adverse change |
$ |
(2,170) |
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$ |
(2,567) |
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| Weighted average option-adjusted spread: |
5.2 |
% |
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5.1 |
% |
| Impact on fair value of 10% adverse change |
$ |
(59,737) |
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$ |
(70,293) |
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| Impact on fair value of 20% adverse change |
$ |
(116,694) |
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$ |
(137,449) |
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| Weighted average per loan annual cost to service: |
$ |
65.03 |
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$ |
65.02 |
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| Impact on fair value of 10% adverse change |
$ |
(30,898) |
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$ |
(36,191) |
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| Impact on fair value of 20% adverse change |
$ |
(61,797) |
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$ |
(72,381) |
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| Schedule of Servicing Revenue |
The following table presents the components of servicing income recorded on the Company’s consolidated statements of comprehensive (loss) income for the years ended December 31, 2025, 2024 and 2023:
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Year Ended |
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December 31, |
| (in thousands) |
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2025 |
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2024 |
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2023 |
| Servicing fee income |
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$ |
487,347 |
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$ |
528,206 |
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$ |
555,221 |
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| Ancillary and other fee income |
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20,469 |
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16,718 |
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5,149 |
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| Float income |
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118,907 |
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136,724 |
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125,407 |
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| Total |
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$ |
626,723 |
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$ |
681,648 |
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$ |
685,777 |
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| Schedule of Total Serviced Mortgage Assets |
The following table presents the number of loans and unpaid principal balance of the mortgage assets for which the Company manages the servicing as of December 31, 2025 and December 31, 2024:
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December 31, 2025 |
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December 31, 2024 |
| (dollars in thousands) |
Number of Loans |
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Unpaid Principal Balance |
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Number of Loans |
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Unpaid Principal Balance |
| Mortgage servicing rights |
675,215 |
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$ |
162,450,487 |
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803,091 |
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$ |
200,317,008 |
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Subservicing |
178,356 |
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40,492,124 |
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57,961 |
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11,219,408 |
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Servicing administrator |
514 |
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272,820 |
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543 |
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299,955 |
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Mortgage loans held-for-sale |
38 |
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13,336 |
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13 |
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2,297 |
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Other assets |
— |
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— |
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1 |
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50 |
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| Total serviced mortgage assets |
854,123 |
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$ |
203,228,767 |
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861,609 |
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$ |
211,838,718 |
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