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Loans Held for Investment
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Loans Held for Investment Loans Held for Investment
The Loans held for investment are comprised primarily of loans collateralized by seasoned reperforming residential mortgages. Additionally, it includes jumbo prime loans, investor loans and business purpose loans.

The investor loans are loans to individuals securing non-primary residences as well as to individuals or businesses who rent out the residential properties secured by such loans. The Company purchases qualified mortgages, or QM, and non-qualified mortgages, or Non-QM, investor loans and securitizes them under its loan securitization program. The business purpose loans are loans to businesses that are secured by real property which will be renovated by the borrower. The business purpose loans tend to be short duration, often less than one year, and generally the coupon rate is higher than residential mortgage loans.

At March 31, 2025 and December 31, 2024, all Loans held for investment are carried at fair value. See Note 5 for a discussion on how the Company determines the fair values of the Loans held for investment. As changes in the fair value of these loans are reflected in earnings, the Company does not estimate or record a loan loss provision. The total amortized cost of the Company's Loans held for investment was $11.1 billion and $11.4 billion as of March 31, 2025 and December 31, 2024, respectively. The
total unpaid principal balance of the Company's Loans held for investment was $11.3 billion and $11.7 billion as of March 31, 2025 and December 31, 2024, respectively.

The following table provides a summary of the changes in the carrying value of Loans held for investment at fair value at March 31, 2025 and December 31, 2024:
For the Quarter EndedFor the Year Ended
March 31, 2025December 31, 2024
 (dollars in thousands)
Balance, beginning of period$11,196,678 $11,397,046 
Purchases38,470 1,062,699 
Principal paydowns(347,749)(1,309,843)
Sales and settlements(53,090)(116,652)
Net periodic accretion (amortization)(2,399)(39,236)
Change in fair value151,930 202,664 
Balance, end of period$10,983,840 $11,196,678 

The primary cause of the change in fair value is due to market demand, interest rates and changes in credit risk of mortgage loans. The Company did not retain any beneficial interests on loan sales during the quarter ended March 31, 2025 and the year ended December 31, 2024, respectively.

Residential mortgage loans

The loan portfolio for all residential mortgages were originated during the following periods:

Origination YearMarch 31, 2025December 31, 2024
2002 and prior4.9 %5.0 %
20034.4 %4.4 %
20048.3 %8.2 %
200514.3 %14.1 %
200618.2 %18.0 %
200720.1 %20.9 %
20086.0 %6.8 %
20091.4 %1.7 %
2010 and later22.4 %20.9 %
Total100.0 %100.0 %
The following table presents a summary of key characteristics of the residential loan portfolio at March 31, 2025 and December 31, 2024:
 March 31, 2025December 31, 2024
Number of loans 102,392 103,571
Weighted average maturity (years) 20.52 20.4
Weighted average loan to value (1)
 78.7 % 78.4 %
Weighted average FICO 670 667
Weighted average loan balance (in thousands) $110  $108 
Weighted average percentage owner occupied 82.5 % 85.0 %
Weighted average percentage single family residence 77.4 % 77.4 %
Weighted average geographic concentration of top five statesCA15.9 %CA15.5 %
FL8.9 %FL8.8 %
NY8.7 %NY8.7 %
NJ4.3 %PA4.3 %
 PA 4.3 %NJ4.3 %
(1) Value represents appraised value of the collateral at the time of loan origination.
The following table summarizes the outstanding principal balance of the residential loan portfolio which are 30 days delinquent and greater as reported by the servicers at March 31, 2025 and December 31, 2024, respectively.
 30 Days Delinquent60 Days Delinquent90+ Days DelinquentBankruptcyForeclosureREOTotalUnpaid Principal Balance
(dollars in thousands)
March 31, 2025$708,565$232,938$254,573$193,934$315,528$37,369$1,742,907$11,292,225
% of Unpaid Principal Balance6.3 %2.1 %2.3 %1.7 %2.8 %0.3 %15.5 %
December 31, 2024$733,298$233,982$294,078$177,592$300,575$36,811$1,776,336$11,659,420
% of Unpaid Principal Balance6.3 %2.0 %2.5 %1.5 %2.6 %0.3 %15.2 %

The fair value of residential mortgage loans 90 days or more past due was $615 million and $595 million as of March 31, 2025 and December 31, 2024, respectively.