Short-Term Debt

12 Months Ended

Dec. 31, 2024

Short-Term Debt

Short-Term Debt

Note 15—Short-Term Debt

The borrowing facilities described throughout these Notes 15 and 16 contain various covenants, including financial covenants governing the Company’s net worth, debt-to-equity ratio and liquidity. Management believes that the Company was in compliance with these covenants as of December 31, 2024.

Assets Sold Under Agreements to Repurchase

The Company has multiple secured borrowing facilities in the form of asset sales under agreements to repurchase. These borrowing facilities are secured by MBS, loans held for sale at fair value or participation certificates backed by mortgage servicing assets. Eligible assets are sold at advance rates based on their fair values (as determined by the lender). Interest is charged at a rate based on the Secured Overnight Financing Rate (“SOFR”). Principal-only stripped MBS, loans and participation certificates financed under these agreements may be re-pledged by the lenders.

Assets sold under agreements to repurchase are summarized below:

	Year ended December 31,
	2024		2023		2022
	(dollars in thousands)
Average balance of assets sold under agreements to repurchase	$	5,474,998	$	3,701,448	$	2,580,513
Weighted average interest rate (1)		6.79%		7.12%		3.59%
Total interest expense	$	393,977	$	279,289	$	105,459
Maximum daily amount outstanding	$	8,591,735	$	6,358,007	$	7,289,147

(1) Excludes the effect of amortization of debt issuance costs and non-utilization fees totaling $22.2 million, $15.7 million and $12.9 million for the years ended December 31, 2024, 2023 and 2022, respectively

	December 31,
	2024		2023
	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	8,692,756	$	3,769,449
Unamortized debt issuance costs		(7,549)		(5,493)
	$	8,685,207	$	3,763,956
Weighted average interest rate		5.89%		7.05%
Available borrowing capacity (1):
Committed	$	460,000	$	1,282,040
Uncommitted		3,104,026		5,548,511
	$	3,564,026	$	6,830,551
Assets securing repurchase agreements:
Principal-only stripped MBS	$	825,865	$	—
Loans held for sale	$	7,612,832	$	3,858,977
Servicing advances (2)	$	357,939	$	354,831
Mortgage servicing rights (2)	$	7,488,539	$	6,284,239
Deposits (2)	$	16,697	$	15,653

(1) The amount the Company is able to borrow under asset repurchase agreements is tied to the fair value of unencumbered assets eligible to secure those agreements and the Company’s ability to fund the agreements’ margin requirements relating to the assets financed.

(2) Beneficial interests in the Ginnie Mae MSRs, servicing advances and deposits together serve as the collateral backing servicing asset facilities that are included in Assets sold under agreements to repurchase and the term notes and term loans included in Notes payable secured by mortgage servicing assets. The term notes and term loans are described in Note 16 — Long-Term Debt - Notes payable secured by mortgage servicing assets.

Following is a summary of maturities of outstanding advances under repurchase agreements by maturity date:

Remaining maturity at December 31, 2024 (1)	Unpaid principal balance
	(dollars in thousands)
Within 30 days	$	1,902,179
Over 30 to 90 days		5,692,381
Over 90 to 180 days		108,542
Over 180 days to one year		246,095
Over one year to two years		743,559
Total assets sold under agreements to repurchase	$	8,692,756
Weighted average maturity (in months)		4.0

(1) The Company is subject to margin calls during the period the agreements are outstanding and therefore may be required to repay a portion of the borrowings before the respective agreements mature if the fair value (as determined by the applicable lender) of the assets securing those agreements decreases.

The amounts at risk (the fair value of the assets pledged plus the related margin deposits, less the amounts advanced by the counterparty and interest payable) relating to the Company’s assets sold under agreements to repurchase are summarized by counterparty below as of December 31, 2024:

Loans held for sale and MSRs

			Weighted average
Counterparty	Amount at risk		maturity of advances	Facility maturity
	(in thousands)
Atlas Securitized Products, L.P., Goldman Sachs Bank USA, Nomura Corporate Funding Americas and Mizuho Bank, Ltd. (1)	$	5,770,912	May 6, 2026	May 6, 2026
Atlas Securitized Products, L.P.	$	138,531	May 21, 2025	June 26, 2026
Bank of America, N.A.	$	76,289	February 2, 2025	June 10, 2026
JP Morgan Chase Bank, N.A.	$	55,833	March 5, 2025	June 28, 2026
Royal Bank of Canada	$	41,459	January 28, 2025	November 10, 2025
Barclays Bank PLC	$	37,068	April 26, 2025	March 6, 2026
Citibank, N.A.	$	26,417	March 8, 2025	June 11, 2026
Morgan Stanley Bank, N.A.	$	25,893	March 18, 2025	May 22, 2026
BNP Paribas	$	24,468	March 22, 2025	September 30, 2026
Wells Fargo Bank, N.A.	$	14,954	March 16, 2025	October 15, 2025
Goldman Sachs Bank USA	$	7,475	March 17, 2025	December 8, 2025

(1) The amount at risk includes the beneficial interests in Ginnie Mae MSRs and servicing advances pledged to serve as the collateral backing servicing asset facilities included in Assets sold under agreements to repurchase and the term notes and term loans included in Notes payable secured by mortgage servicing assets. The facilities mature on various dates ranging from August 4, 2025 through October 28, 2026 and the facility maturity date shown in this table represents a weighted average of those dates.

Principal-only stripped MBS

Counterparty	Amount at risk		Maturity
	(in thousands)
Bank of America, N.A.	$	1,788	January 24, 2025
JP Morgan Chase Bank, N.A.	$	21,739	January 6, 2025
Wells Fargo Bank, N.A.	$	18,238	January 23, 2025
Santander US Capital Markets LLC	$	13,226	January 15, 2025

Mortgage Loan Participation Purchase and Sale Agreements

Certain of the borrowing facilities secured by mortgage loans held for sale are in the form of mortgage loan participation purchase and sale agreements. Participation certificates, each of which represents an undivided beneficial ownership interest in mortgage loans that have been pooled into Fannie Mae, Freddie Mac or Ginnie Mae securities, are sold to a lender pending the securitization of the mortgage loans and sale of the resulting securities which generally occurs within 30 days. A commitment to sell the securities resulting from the pending securitization between the Company and a non-affiliate is also assigned to the lender at the time a participation certificate is sold.

The purchase price paid by the lender for each participation certificate is based on the trade price of the security, plus an amount of interest expected to accrue on the security to its anticipated delivery date, minus a present value adjustment, any related hedging costs and a holdback amount that is based on a percentage of the purchase price. The holdback amount is not required to be paid to the Company until the settlement of the security and its delivery to the lender.

The mortgage loan participation purchase and sale agreements are summarized below:

	Year ended December 31,
	2024		2023		2022
	(dollars in thousands)
Average balance	$	243,132	$	238,197	$	211,035
Weighted average interest rate (1)		6.46%		6.48%		3.16%
Total interest expense	$	16,404	$	16,129	$	7,314
Maximum daily amount outstanding	$	518,042	$	515,537	$	515,043

(1) Excludes the effect of amortization of debt issuance costs totaling $695,000, $688,000 and $651,000 for the years ended December 31, 2024, 2023 and 2022, respectively.

	December 31,
	2024		2023
	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	496,856	$	446,406
Unamortized debt issuance costs		(344)		(352)
	$	496,512	$	446,054
Weighted average interest rate		5.58%		6.60%
Fair value of loans pledged to secure mortgage loan participation purchase and sale agreements	$	528,002	$	470,524