Short-Term Debt

6 Months Ended

Jun. 30, 2025

Short-Term Debt

Short-Term Debt

Note 14—Short-Term Debt

The borrowing facilities described throughout these Notes 14 and 15 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 June 30, 2025.

Assets Sold Under Agreements to Repurchase

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

Assets sold under agreements to repurchase are summarized below:

	Quarter ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(dollars in thousands)
Average balance of assets sold under agreements to repurchase	$	7,183,987	$	5,761,107	$	6,649,802	$	4,651,823
Weighted average interest rate (1)		6.00%		7.06%		5.97%		7.13%
Total interest expense	$	112,685	$	106,587	$	206,914	$	177,022
Maximum daily amount outstanding	$	8,581,781	$	7,122,796	$	8,690,936	$	7,122,796

(1) Excludes the effect of amortization of debt issuance costs and non-utilization fees of $5.1 million and $5.4 million for the quarters ended June 30, 2025 and 2024, respectively, and $9.9 million and $12.1 million for the six months ended June 30, 2025 and 2024, respectively.

	June 30,		December 31,
	2025		2024
	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	7,351,846	$	8,692,756
Unamortized debt issuance costs		(7,592)		(7,549)
	$	7,344,254	$	8,685,207
Weighted average interest rate		5.94%		5.89%
Available borrowing capacity (1):
Committed	$	1,017,655	$	460,000
Uncommitted		3,918,218		3,104,026
	$	4,935,873	$	3,564,026
Assets securing repurchase agreements:
Principal-only stripped mortgage-backed securities	$	784,958	$	825,865
Loans held for sale	$	6,128,283	$	7,612,832
Servicing advances (2)	$	265,118	$	357,939
Mortgage servicing rights (2)	$	8,034,225	$	7,488,539
Deposits (2)	$	13,124	$	16,697

(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, Fannie Mae MSRs, servicing advances and deposits together serve as the collateral backing servicing asset financing 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 15–Long-Term Debt - Notes payable secured by mortgage servicing assets.

Maturities

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

Remaining maturity at June 30, 2025 (1)	Unpaid principal balance
	(dollars in thousands)
Within 30 days	$	1,464,684
Over 30 to 90 days		4,512,313
Over 90 to 180 days		58,042
Over 180 days to one year		1,198,227
Over one year to two years		118,580
Total assets sold under agreements to repurchase	$	7,351,846
Weighted average maturity (in months)		3.5

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

Amounts at Risk

The amount at risk (the fair value of the assets pledged plus the related margin deposit, less the amount advanced by the counterparty and interest payable) relating to the Company’s assets sold under agreements to repurchase is summarized by asset type and counterparty below as of June 30, 2025:

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)	$	6,174,715	June 18, 2026	June 18, 2026
Atlas Securitized Products, L.P.	$	158,877	November 19, 2025	June 26, 2026
Bank of America, N.A.	$	92,204	August 6, 2025	June 9, 2027
JP Morgan Chase Bank, N.A.	$	38,981	October 21, 2025	July 10, 2026
Royal Bank of Canada	$	33,779	July 30, 2025	May 8, 2026
Citibank, N.A.	$	29,756	September 4, 2025	June 11, 2026
Nomura Corporate Funding Americas	$	19,151	July 14, 2025	January 22, 2026
Morgan Stanley Bank, N.A.	$	18,275	September 10, 2025	May 22, 2026
Wells Fargo Bank, N.A.	$	15,359	September 14, 2025	June 11, 2027
Barclays Bank PLC	$	14,165	November 6, 2025	March 6, 2026
BNP Paribas	$	13,186	September 14, 2025	September 30, 2026
Mizuho Bank, Ltd.	$	8,733	February 19, 2026	March 14, 2026
Goldman Sachs Bank USA	$	2,222	September 5, 2025	February 13, 2027

(1) The amount at risk includes the beneficial interests in Ginnie Mae MSRs, Fannie 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 through October 25, 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.	$	2,846	July 25, 2025
JP Morgan Chase Bank, N.A.	$	22,094	July 7, 2025
Wells Fargo Bank, N.A.	$	17,963	July 23, 2025
Santander US Capital Markets LLC	$	15,227	July 15, 2025

Mortgage Loan Participation Purchase and Sale Agreements

Two of the borrowing facilities secured by 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 with Fannie Mae, Freddie Mac or Ginnie Mae, are sold to a lender pending securitization of the mortgage loans and sale of the resulting securities. 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:

	Quarter ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(dollars in thousands)
Average balance	$	283,853	$	236,647	$	272,512	$	235,761
Weighted average interest rate (1)		5.65%		6.69%		5.64%		6.69%
Total interest expense	$	4,168	$	4,109	$	7,972	$	8,186
Maximum daily amount outstanding	$	701,233	$	512,528	$	701,233	$	515,990

(1) Excludes the effect of amortization of debt issuance costs totaling $172,000 and $176,000 for the quarters ended June 30, 2025 and 2024, respectively and $344,000 and $348,000 for the six months ended June 30, 2025 and 2024, respectively.

	June 30,		December 31,
	2025		2024
	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	701,233	$	496,856
Unamortized debt issuance costs		(937)		(344)
	$	700,296	$	496,512
Weighted average interest rate		5.58%		5.58%
Fair value of loans pledged to secure mortgage loan participation purchase and sale agreements	$	745,063	$	528,002