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INTEREST INCOME AND INTEREST EXPENSE (Tables)
 9 Months Ended
Sep. 30, 2025
Banking and Thrift, Interest [Abstract]  
Summary of Interest Income Recognition Methodology for Residential Investment Securities
The following table summarizes the interest income recognition methodology for Residential Securities:
 Interest Income Methodology
Agency 
Fixed-rate pass-through (1)
Effective yield (3)
Adjustable-rate pass-through (1)
Effective yield (3)
Multifamily (1)
Contractual Cash Flows
CMO (1)
Effective yield (3)
Reverse mortgages (2)
Prospective
Interest-only (2)
Prospective
Residential credit 
CRT (2)
Prospective
Non-QM (2)
Prospective
Prime (2)
Prospective
SBC (2)
Prospective
NPL/RPL (2)
Prospective
RTL (2)
Prospective
Prime jumbo (2)
Prospective
(1) Changes in fair value are recognized in Other comprehensive income (loss) in the accompanying Consolidated Statements of Comprehensive Income (Loss) for securities purchased prior to July 1, 2022. Effective July 1, 2022, changes in fair value are recognized in Net gains (losses) on investments and other in the accompanying Consolidated Statements of Comprehensive Income (Loss) for newly purchased securities.
(2) Changes in fair value are recognized in Net gains (losses) on investments and other in the accompanying Consolidated Statements of Comprehensive Income (Loss).
(3) Effective yield is recalculated for differences between estimated and actual prepayments and the amortized cost is adjusted as if the new effective yield had been applied since inception.
Components of Company's Interest Income and Interest Expense
The following table presents the components of the Company’s interest income and interest expense for the three and nine months ended September 30, 2025 and 2024.
 For the Three Months Ended
For the Nine Months Ended
 September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Interest income(dollars in thousands)
Agency securities$949,511 $789,403 $2,645,630 $2,331,698 
Residential credit securities33,462 49,863 110,522 156,754 
Residential mortgage loans (1)
505,527 346,031 1,399,541 899,867 
Commercial investment portfolio (1)
— 2,240 1,218 8,235 
Reverse repurchase agreements43,997 41,804 111,587 104,600 
Total interest income$1,532,497 $1,229,341 $4,268,498 $3,501,154 
Interest expense  
Repurchase agreements$852,175 $942,780 $2,388,876 $2,722,304 
Debt issued by securitization vehicles349,959 234,299 945,934 596,128 
Participations issued28,651 17,834 86,433 57,841 
U.S. Treasury securities sold, not yet purchased25,962 21,027 78,334 64,373 
Total interest expense1,256,747 1,215,940 3,499,577 3,440,646 
Net interest income$275,750 $13,401 $768,921 $60,508 
(1) Includes assets transferred or pledged to securitization vehicles.