Home Equity Investments (HEI)

12 Months Ended

Dec. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

We have historically invested in HEI contracts acquired from third party originators, however, we ceased new investments in third-party originated HEI contracts and began originating HEI directly in 2023 through our own Aspire HEI platform. Each HEI provides the owner of such HEI the right to purchase a percentage ownership interest in an associated residential property, and the homeowner's obligations under the HEI are secured by a lien (primarily second liens) on the property created by recording a security instrument (e.g., deed of trust) with respect to the property. Our investments in HEI expose us to both home price appreciation and depreciation of the associated property. In 2025, we began reporting our third-party originated HEI portfolio within the Legacy Investments segment, consistent with how the CODM evaluates financial performance and allocates resources across our reportable segments.

At December 31, 2025 and 2024, within our Legacy Investments segment, we consolidated one and two HEI securitization entities, respectively, in accordance with GAAP, and have elected to account for these securitizations under the CFE election. As such, market valuation changes for the securitized HEI are based on the fair value of the associated ABS issued by the entity, including the interest we own, and are reported in HEI income, net on our Consolidated statements of (loss) income.

During the year ended December 31, 2025, we called one of our HEI securitization entities and paid off the related outstanding ABS issued. Subsequent to the call of this securitization, we sold previously securitized and unsecuritized third-party originated HEI from our Legacy Investments segment totaling $262 million to a third party.

The following table presents our HEI at December 31, 2025 and 2024.

Table 10.1 – Home Equity Investments


(In Thousands)	December 31, 2025		December 31, 2024
Unsecuritized HEI	$	138,762	$	257,315
HEI held at consolidated HEI securitization entities	191,121		332,470
Total Home Equity Investments at fair value (1)	$	329,883	$	589,785

(1)As of December 31, 2025, balance includes $314 million of third-party originated HEI included in our Legacy Investments segment.

The following table details our HEI activity during the years ended December 31, 2025 and 2024. Changes in the value of HEI during the year ended December 31, 2025 are driven by incremental fair value adjustments, reflecting the sales on HEI held in our Legacy Investments segment during 2025.

Table 10.2 – Activity of HEI


	Year Ended December 31,
	2025				2024
(In Thousands)	Unsecuritized HEI		Securitized HEI		Unsecuritized HEI		Securitized HEI
Fair value of HEI purchased and originated	$	12,967	$	—	$	2,043	$	—
Fair value of HEI transferred	148,963		(148,963)		—		—
Fair value of HEI sold to third party	262,447		—		—		—
Net market valuation (losses) gains recorded	(4,192)		25,986		28,739		57,948

The following table provides the components of HEI income, net for the years ended December 31, 2025, 2024 and 2023.

Table 10.3 – Components of HEI Income, net


	Years Ended December 31,
(In Thousands)	2025		2024		2023
Net market valuation (losses) gains recorded on Unsecuritized HEI	$	(4,192)	$	28,739	$	30,750
Net market valuation gains recorded on Securitized HEI	25,986		57,948		23,177
Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)	(13,899)		(21,686)		(11,020)
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations	(7,713)		(23,170)		(7,790)
Other	529		254		125
Total HEI income, net	$	711	$	42,085	$	35,242

(1)Amount includes interest expense associated with ABS issued, which totaled $11 million, $12 million and $6 million for 2025, 2024 and 2023, respectively.

The following tables present the geographic concentration of HEI recorded on our consolidated balance sheets at December 31, 2025 and 2024.

Table 10.4 – Geographic Concentration of HEI


	December 31, 2025
Geographic Concentration (by Investment Amount)	Unsecuritized HEI		Securitized HEI
California	62	%	40	%
Massachusetts	7	%	6	%
Colorado	6	%	4	%
Washington	6	%	8	%
Florida	4	%	9	%
Arizona	1	%	9	%
Other states (none greater than 5%)	14	%	24	%
Total	100	%	100	%


	December 31, 2024
Geographic Concentration (by Investment Amount)	Unsecuritized HEI		Securitized HEI
California	49	%	47	%
Florida	12	%	7	%
Washington	6	%	7	%
Colorado	6	%	4	%
Arizona	5	%	6	%
New York	4	%	7	%
Other states (none greater than 5%)	18	%	22	%
Total	100	%	100	%