Mortgage Banking Activities, Net

3 Months Ended

Mar. 31, 2026

Mortgage banking activities, net includes changes in fair value of loans held-for-sale, loan purchase commitments, interest rate lock commitments and related risk management derivatives held in our Sequoia Mortgage Banking, Aspire Mortgage Banking and CoreVest Mortgage Banking segments. During the three months ended March 31, 2026, Aspire Mortgage Banking became its own reportable segment; accordingly, we began presenting Aspire Mortgage Banking separately to align with our current reportable segments, and all prior periods have been conformed to the current presentation with no impact to consolidated results. The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of (loss) income for the three months ended March 31, 2026 and 2025.

Table 5.1 – Mortgage Banking Activities


	Three Months Ended March 31,
(In Thousands)	2026		2025
Sequoia Mortgage Banking Activities, Net:
Changes in fair value of:
Residential consumer loans, at fair value (1)	$	20,528	$	30,373
Trading securities (2)	36,867		(29,327)
Risk management derivatives (3)	(35,911)		20,787
Other income, net (4)	567		85
Total Sequoia mortgage banking activities, net	22,051		21,918

Aspire Mortgage Banking Activities, Net:
Changes in fair value of:
Residential consumer loans, at fair value (1)	(2,242)		226
Trading securities (2)	328		—
Risk management derivatives (3)	4,228		—
Other income, net (4)	370		7
Total Aspire mortgage banking activities, net	2,684		233

CoreVest Mortgage Banking Activities, Net:
Changes in fair value of:
Residential investor term loans, at fair value (1)	(1,666)		6,930
Residential investor bridge loans, at fair value	364		1,032
Risk management derivatives (3)	301		(2,945)
Other income, net (4) (5)	8,230		5,885
Total CoreVest mortgage banking activities, net	7,229		10,902
Mortgage Banking Activities, Net	$	31,964	$	33,053

(1)Includes changes in fair value for associated loan purchase commitments for residential consumer loans and associated interest rate lock commitments for residential investor term loans.

(2)Represents fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our Sequoia mortgage banking platform.

(3)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking platforms and other derivative financial instruments such as loan purchase commitments and interest rate locks.

(4)Amounts in this line item include other fee income from loan acquisitions, and provisions for repurchases, presented net.

(5)Amounts in this line item include other fee income from loan originations.