Quarterly report [Sections 13 or 15(d)]

Financing

v3.26.1
Financing
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Financing Financing
Secured Financing
The following tables summarize the Company’s secured financing arrangements by collateral type:
March 31, 2026
Collateral Type
(in thousands)
RMBS (1)
Mortgage Servicing Rights and Advances
Mortgage Loans Held-for-Sale
Total Secured Financing
Repurchase agreements
 $ 6,665,054  $ 575,000  $ 5,233  $ 7,245,287 
Revolving credit facilities
 —  916,871  —  916,871 
Warehouse lines of credit
 —  —  12,694  12,694 
Total
 $ 6,665,054  $ 1,491,871  $ 17,927  $ 8,174,852 

December 31, 2025
Collateral Type
(in thousands)
RMBS (1)
Mortgage Servicing Rights and Advances
Mortgage Loans Held-for-Sale
Total Secured Financing
Repurchase agreements
 $ 6,601,446  $ 650,000  $ 4,094  $ 7,255,540 
Revolving credit facilities
 —  919,371  —  919,371 
Warehouse lines of credit
 —  —  9,406  9,406 
Total
 $ 6,601,446  $ 1,569,371  $ 13,500  $ 8,184,317 
____________________
(1)Includes Agency and non-Agency AFS securities and Agency derivatives, as detailed within the Repurchase Agreements section of this Note 12.

Repurchase Agreements
The Company finances certain of its investment securities, MSR and mortgage loans held-for-sale through the use of repurchase facilities. At March 31, 2026 and December 31, 2025, the Company’s repurchase agreements had the following characteristics and remaining maturities:
March 31, 2026
Collateral Type
(dollars in thousands)
 Agency RMBS Agency Derivatives Mortgage Servicing Rights
Mortgage Loans Held-for-Sale
 Total Amount Outstanding
Within 30 days $ 2,196,967 $ — $ — $ — $ 2,196,967
30 to 59 days 1,461,670 48,698 — — 1,510,368
60 to 89 days 826,037 — — 5,233 831,270
90 to 119 days 721,971 — — — 721,971
120 to 364 days 1,409,711 — 575,000 — 1,984,711
Total $ 6,616,356 $ 48,698 $ 575,000 $ 5,233 $ 7,245,287
Weighted average days to maturity
 71 37 215 84 82
Weighted average borrowing rate
 3.84  % 4.26  % 6.71  % 5.68  % 4.07  %
December 31, 2025
Collateral Type
(dollars in thousands)
 Agency RMBS Agency Derivatives Mortgage Servicing Rights
Mortgage Loans Held-for-Sale
 Total Amount Outstanding
Within 30 days $ 2,194,337 $ 56,670 $ — $ — $ 2,251,007
30 to 59 days 1,744,692 — — — 1,744,692
60 to 89 days 1,689,646 — — 4,094 1,693,740
90 to 119 days 916,101 — — — 916,101
120 to 364 days — — 650,000 — 650,000
Total $ 6,544,776 $ 56,670 $ 650,000 $ 4,094 $ 7,255,540
Weighted average days to maturity
 55 7 193 83 67
Weighted average borrowing rate
 4.12  % 4.46  % 6.76  % 5.88  % 4.36  %

The following table summarizes assets at carrying value that are pledged or restricted as collateral for the future payment obligations of the Company’s repurchase agreements:
(in thousands) March 31,
2026		 December 31,
2025
Available-for-sale securities, at fair value $ 6,498,786  $ 6,505,374 
Mortgage servicing rights, at fair value (1)
941,598  958,947 
Mortgage loans held-for-sale, at fair value
 5,358  3,746 
Restricted cash 140,493  108,367 
Due from counterparties 255,451  206,514 
Derivative assets, at fair value 62,094  67,227 
Total $ 7,903,780  $ 7,850,175 
____________________
(1)As of March 31, 2026 and December 31, 2025, MSR repurchase agreements totaling $575.0 million and $650.0 million, respectively, were secured by VFNs issued issued by MSR Issuer Trust and collateralized by portions of the Company’s MSR portfolio. See Note 3 - Variable Interest Entities for further details.

Although the transactions under repurchase agreements represent committed borrowings until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets would require the Company to provide additional collateral or fund margin calls.
As of both March 31, 2026 and December 31, 2025, the net carrying value of assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest, with any individual counterparty or group of related counterparties did not exceed 10% of total stockholders’ equity. The Company does not anticipate any defaults by its repurchase agreement counterparties. There can be no assurance, however, that any such default or defaults will not occur.
Revolving Credit Facilities
To finance MSR assets and related servicing advance obligations, the Company has entered into revolving credit facilities collateralized by the value of the MSR and/or servicing advances pledged. As of March 31, 2026 and December 31, 2025, the Company had outstanding short- and long-term borrowings under revolving credit facilities of $916.9 million and $919.4 million with a weighted average borrowing rate of 6.68% and 6.77% and weighted average remaining maturities of 1.5 and 1.8 years, respectively.
Although the transactions under revolving credit facilities represent committed borrowings from the time of funding until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets below a designated threshold would require the Company to provide additional collateral or pay down the facility. As of March 31, 2026 and December 31, 2025, MSR with a carrying value of $1.4 billion and $1.5 billion, respectively, was pledged as collateral for the Company’s future payment obligations under its MSR revolving credit facilities. As of March 31, 2026 and December 31, 2025, servicing advances with a carrying value of $80.0 million and $100.1 million, respectively, were pledged as collateral for the Company’s future payment obligations under its servicing advance revolving credit facility. The Company does not anticipate any defaults by its revolving credit facility counterparties, although there can be no assurance that any such default or defaults will not occur.
Warehouse Lines of Credit
To finance origination activities, the Company has entered into a warehouse line of credit collateralized by the value of the mortgage loans pledged for a period of up to 90 days or until they are sold to the GSEs or other third-party investors in the secondary market, typically within 60 days of origination. As of March 31, 2026 and December 31, 2025, the Company had outstanding short-term borrowings under its warehouse line of credit of $12.7 million and $9.4 million with a weighted average borrowing rate of 5.67% and 6.00% and weighted average remaining maturities of 86 and 80 days, respectively.
Although transactions under the warehouse line of credit represent committed borrowings from the time of funding until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets below a designated threshold would require the Company to provide additional collateral or pay down the facility. As of March 31, 2026 and December 31, 2025, mortgage loans held-for-sale with a carrying value of $12.8 million and $9.6 million, respectively, were pledged as collateral for the Company’s future payment obligations under its warehouse line of credit. Additionally, as of both March 31, 2026 and December 31, 2025, cash of $0.4 million was held in restricted accounts as collateral for future payment obligations of outstanding balances under the warehouse line of credit. The Company does not anticipate any defaults by its warehouse line of credit counterparties, although there can be no assurance that any such default or defaults will not occur.
Unsecured Financing
Senior Notes
On May 13, 2025, the Company closed an underwritten public offering of $115.0 million aggregate principal amount of its senior notes due in 2030, which included $15.0 million aggregate principal amount sold by the Company to the underwriters of the offering pursuant to an overallotment option. The senior notes are unsecured and bear an interest rate of 9.375% per annum, payable quarterly in arrears on February 15, May 15, August 15 and November 15. The senior notes will mature in August 2030, unless earlier redeemed in accordance with their terms. The Company may redeem the senior notes, in whole or in part, any time on or after May 15, 2027, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest. The Company may also repurchase the senior notes in open market or privately negotiated transactions at the same or differing price without giving prior notice to or obtaining any consent of the holders. The net proceeds from the offering were approximately $110.6 million after deducting underwriting discounts and offering expenses payable by the Company. As of March 31, 2026 and December 31, 2025, the outstanding amount included on the consolidated balance sheets, net of unamortized deferred issuance costs, was $111.2 million and $111.1 million, respectively.
Convertible Senior Notes
The Company’s convertible senior notes were repaid in full on their January 15, 2026 maturity date, were unsecured, paid interest semiannually at a rate of 6.25% per annum and were convertible at the option of the holder into shares of the Company’s common stock. As of December 31, 2025, the outstanding amount included on the consolidated balance sheets, net of unamortized deferred issuance costs, was $261.8 million.
Future Maturities
At March 31, 2026, the Company had the following remaining maturities on its financing arrangements:
(in thousands)
Repurchase Agreements
Revolving Credit Facilities
Warehouse Lines of Credit
Senior
Notes
Total
Remainder of 2026 $ 7,245,287  $ 69,000  $ 12,694  $ —  $ 7,326,981 
2027 —  567,731  —  —  567,731 
2028 —  —  —  —  — 
2029 —  280,140  —  —  280,140 
2030 —  —  —  111,200  111,200 
Total $ 7,245,287  $ 916,871  $ 12,694  $ 111,200  $ 8,286,052