Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2024

Long-Term Debt.

Summary of term notes issued

				Maturity date
Issuance date	Principal balance		Annual interest rate spread (1)	Stated	Optional extension (2)
	(in thousands)
Term Notes:
June 3, 2022	$	500,000	4.25%	5/25/2027	5/25/2029
February 29, 2024		425,000	3.20%	3/26/2029	3/25/2031
Term Loans:
February 28, 2023		680,000	3.00%	2/25/2028	2/25/2029
October 25, 2023		125,000	3.00%	10/25/2028
	$	1,730,000

(1) Interest is charged at a rate of SOFR plus a spread.

(2) The Term Notes and Term Loans’ indentures provide the Company with the option to extend the maturity of certain of the Term Notes or Term Loans as specified in the respective agreements.

Summary of note payable

	Quarter ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
	(dollars in thousands)
Average balance	$	1,872,857	$	2,480,000	$	1,911,593	$	2,287,099
Weighted average interest rate (1)		8.85%		8.57%		8.89%		8.19%
Total interest expense	$	41,932	$	53,817	$	85,938	$	94,595

(1) Excludes the effect of amortization of debt issuance costs totaling $726,000 and $809,000 for the quarters ended June 30, 2024 and 2023, respectively, and $1.5 million and $1.7 million for the six months ended June 30, 2024 and 2023, respectively.

	June 30,		December 31,
	2024		2023
	(dollars in thousands)
Carrying value:
Unpaid principal balance:
Term Notes and Term Loans	$	1,730,000	$	1,730,000
Freddie Mac MSR Note Payable		—		150,000
		1,730,000		1,880,000
Unamortized debt issuance costs		(6,856)		(6,585)
	$	1,723,144	$	1,873,415
Weighted average interest rate		8.74%		8.82%
Assets pledged to secure notes payable (1):
Servicing advances	$	232,944	$	354,831
Mortgage servicing rights	$	7,831,978	$	7,033,892
Deposits	$	15,566	$	15,653

(1) Beneficial interests in the Ginnie Mae MSRs, Fannie Mae MSRs, servicing advances and deposits together serve as the collateral backing servicing asset facilities that include Assets sold under agreements to repurchase and the Term Notes and Term Loans included in Notes payable secured by mortgage servicing assets.

Summary of Unsecured Notes issued

Issuance date	Principal balance		Note interest rate	Maturity date	Optional redemption date (1)
	(in thousands)		(annual)
September 29, 2020	$	500,000	5.375%	October 15, 2025	October 15, 2022
October 19, 2020		150,000	5.375%	October 15, 2025	October 15, 2022
February 11, 2021		650,000	4.25%	February 15, 2029	February 15, 2024
September 16, 2021		500,000	5.75%	September 15, 2031	September 15, 2026
December 11, 2023		750,000	7.875%	December 15, 2029	December 15, 2026
May 23, 2024		650,000	7.125%	November 15, 2030	November 15, 2026
	$	3,200,000

(1) Before the optional redemption date, the Company may redeem some or all of the Unsecured Notes for that issuance at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a make-whole premium or the Company may redeem up to 40% of the Unsecured Notes for that issuance with an amount equal to or less than the net proceeds from certain equity offerings at the redemption price set forth in the indenture, plus accrued and unpaid interest. On or after the optional redemption date, the Company may redeem some or all of the Unsecured Notes for that issuance at the redemption prices set forth in the indenture, plus accrued interest.

Summary of unsecured notes payable

	Quarter ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
	(dollars in thousands)
Average balance	$	2,828,571	$	1,800,000	$	2,689,286	$	1,800,000
Weighted average interest rate (1)		6.03%		5.07%		5.97%		5.07%
Total interest expense	$	43,968	$	23,688	$	82,800	$	47,116

(1) Excludes the effect of amortization of debt issuance costs of $1.5 million and $923,000 for the quarters ended June 30, 2024 and 2023, respectively, and $2.9 million and $1.8 million for the six months ended June 30, 2024 and 2023, respectively.

	June 30,		December 31,
	2024		2023
	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	3,200,000	$	2,550,000
Unamortized debt issuance costs and premiums, net		(39,774)		(30,349)
	$	3,160,226	$	2,519,651
Weighted average interest rate		6.15%		5.90%

Summary of maturities of Long-Term Debt

Maturities of long-term debt (based on stated maturity dates) are as follows:

	Twelve months ended June 30,
	2025		2026		2027		2028		2029		Thereafter		Total
	(in thousands)
Notes payable secured by mortgage servicing assets (1)	$	—	$	—	$	500,000	$	680,000	$	550,000	$	—	$	1,730,000
Unsecured senior notes		—		650,000		—		—		650,000		1,900,000		3,200,000
Total	$	—	$	650,000	$	500,000	$	680,000	$	1,200,000	$	1,900,000	$	4,930,000

(1) The Term Notes and Term Loans’ indentures provide the Company with the option to extend the maturity of the Term Notes and Term Loans as specified in the respective agreements.