
March 31, 2026	Unsecuritized Loans		Securitized Loans
(In Thousands)					Total
Held-for-sale at fair value	$	3,063,421	$	—	$	3,063,421
Held-for-investment at fair value	—		18,236,463		18,236,463
Total Residential Consumer Loans	$	3,063,421	$	18,236,463	$	21,299,884


December 31, 2025	Unsecuritized Loans		Securitized Loans
(In Thousands)					Total
Held-for-sale at fair value	$	3,092,014	$	—	$	3,092,014
Held-for-investment at fair value	—		14,843,747		14,843,747
Total Residential Consumer Loans	$	3,092,014	$	14,843,747	$	17,935,761

At March 31, 2026, we owned mortgage servicing rights associated with $3.0 billion (principal balance) of residential consumer loans that were purchased from third-party originators. The value of these MSRs is included in the fair value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Refer to Note 16 for further information on our consolidated VIEs.


(Dollars in Thousands)	March 31, 2026			December 31, 2025

UPB	$	3,004,597		$	3,022,360
Fair value of loans	3,063,421			3,092,014
Market value of loans pledged as collateral under short-term borrowing agreements	3,050,559			3,066,067
Weighted average coupon	6.47		%	6.59		%

At March 31, 2026 and December 31, 2025, residential consumer loans held for sale that were 90 or more days delinquent had unpaid principal balances of $2 million and $721 thousand, respectively, and average loan balances of $230 thousand and $721 thousand, respectively. At both March 31, 2026 and December 31, 2025, there were no residential consumer loans held for sale in foreclosure.

During the three months ended March 31, 2026 and 2025, mortgage banking activities, net were $25 million and $22 million, respectively, and included changes in fair value of residential consumer loans held-for-sale, loan purchase commitments, and related risk management derivatives in our Sequoia Mortgage Banking and Aspire Mortgage Banking segment. See Note 5 for additional information.

Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale


	Three Months Ended March 31,
(In Thousands)	2026		2025
Principal balance of loans acquired	$	6,581,837	$	2,337,185
Principal balance of loans sold	1,570,549		420,513
Principal balance of loans sold to unconsolidated securitization	391,277		—
Principal balance of loans transferred from HFS to HFI	4,589,492		1,623,900

We invest in residential subordinate securities issued by Securitized loans and consolidate the underlying residential consumer loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the securitized residential consumer loans held-for-investment at March 31, 2026 and December 31, 2025.


(Dollars in Thousands)	March 31, 2026			December 31, 2025

UPB	$	18,439,925		$	15,048,820
Average loan balance (UPB)	$	885		$	915
Fair value of loans (1)	$	18,236,463		$	14,843,747
Weighted average coupon	5.77		%	5.68		%

Delinquency information

UPB of loans with 90+ day delinquencies (2)	$	40,864		$	42,872


Average 90+ days delinquent balance (UPB)	801			766
UPB of loans in foreclosure	12,849			16,709
Average foreclosure balance (UPB)	714			726

(1)The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with the accounting guidance for CFEs, and are recorded in Investment fair value changes, net on our consolidated statements of (loss) income.

We originate and invest in residential investor loans, including term loans and bridge loans. Residential investor term loans consist of mortgage loans secured by stabilized residential real estate, primarily 1–4 unit and multifamily properties, held as rental investments. Residential investor bridge loans are first‑lien, interest‑only loans secured by residential real estate that is vacant or partially occupied and undergoing renovation, rehabilitation, or construction.


March 31, 2026	Residential Investor Term				Residential Investor Bridge
(In Thousands)	Unsecuritized		Securitized		Unsecuritized		Securitized		Total
Held-for-sale at fair value (1)	$	72,541	$	—	$	324,025	$	—	$	396,566
Held-for-investment at fair value	—		1,833,827		—		1,080,152		2,913,979
Total Residential Investor Loans	$	72,541	$	1,833,827	$	324,025	$	1,080,152	$	3,310,545


December 31, 2025	Residential Investor Term				Residential Investor Bridge
(In Thousands)	Unsecuritized		Securitized		Unsecuritized		Securitized		Total
Held-for-sale at fair value (1)	$	202,422	$	—	$	310,931	$	—	$	513,353
Held-for-investment at fair value	—		1,985,910		—		1,117,401		3,103,311
Total Residential Investor Loans	$	202,422	$	1,985,910	$	310,931	$	1,117,401	$	3,616,664

(1)At March 31, 2026 and December 31, 2025, Residential investor bridge loans held-for-sale include $15 million and $14 million, respectively, of loans recorded at the lower of cost or market value for which the carrying value approximates the fair value.

The outstanding residential investor bridge loans held-for-investment at March 31, 2026 were first-lien, interest-only loans with original maturities of 8 to 36 months and were comprised of 46% one-month SOFR-indexed adjustable-rate loans, and 54% fixed-rate loans.

At March 31, 2026, we had $203 million in commitments to fund additional advances on existing residential investor bridge loans, of which $92 million related to loans currently in securitizations sponsored by one of our joint ventures. See Note 19 for additional information on these commitments. During the three months ended March 31, 2026, we sold $208 million of residential investor bridge loans, net of $28 million of construction draws, to one of our joint ventures. See Note 12 for additional information on these joint ventures.

During the three months ended March 31, 2026 and 2025, income from mortgage banking activities, net were $7 million and $11 million, respectively, and included changes in fair value of residential investor loans held-for-sale, interest rate lock commitments, and related risk management derivatives in our CoreVest Mortgage Banking segment. See Note 5 for additional information. During the three months ended March 31, 2026 and 2025, Fee income, net was $3 million and $2 million, respectively, and primarily included portfolio administration fees earned on term and bridge loans.

Table 8.2 – Activity of Residential Investor Loans


	Three Months Ended March 31,
	2026				2025
(In Thousands)	Unsecuritized Term Loans		Unsecuritized Bridge Loans		Unsecuritized Term Loans		Unsecuritized Bridge Loans
Principal balance of loans originated	$	167,590	$	264,832	$	188,218	$	266,144
Principal balance of loans acquired (1)	5,578		—		6,800		—
Principal balance of loans sold to third parties (2)	296,798		397,293		182,415		156,493
Transfer of loans between portfolios (3)	—		74,747		—		50,619

(2)For the three months ended March 31, 2026 and 2025 the principal balance of loans sold to third parties is net of $28 million and $16 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 12 for additional information on these joint ventures.

(3)Transfers of unsecuritized residential investor term loans between portfolios represents the transfer of loans from held-for-sale to held-for-investment associated with consolidated term securitizations. Transfers of unsecuritized bridge loans, represents the transfer of residential investor bridge loans from "Unsecuritized Bridge" to "Securitized Bridge" resulting from their inclusion in one of our bridge loan securitizations, which generally have replenishment features for a set period of time from the closing.

We invest in securities issued by securitizations sponsored by CoreVest and consolidate the underlying residential investor term loans and bridge loans owned by these entities. For loans held at our consolidated securitization entities, market value changes are based on the fair value of the associated ABS issued, including securities we own, pursuant to CFE guidelines, and are recorded through Investment fair value changes, net on our consolidated statements of (loss) income. See further discussion in Note 16.


	Three Months Ended March 31,
	2026				2025
(In Thousands)	Securitized Term		Securitized Bridge		Securitized Term		Securitized Bridge
Net market valuation (losses) gains recorded	$	(14,540)	$	5,183	$	(69)	$	(3,694)
Fair value of loans transferred to HFI	—		74,747		—		50,619


March 31, 2026	Unsecuritized Term			Securitized Term(1)			Unsecuritized Bridge			Securitized Bridge(1)
(Dollars in Thousands)


Unpaid principal balance	$	81,851		$	1,957,775		$	353,915		$	1,059,625
Average UPB of loans	780			3,040			2,283			1,417
Fair value of loans	72,541			1,833,827			324,025			1,080,152
Weighted average coupon	6.96		%	5.26		%	8.95		%	8.90		%
Weighted average remaining loan term (years)	15			4			1			1
Market value of loans pledged as collateral under debt facilities	$	4,569		N/A			$	268,143		$	1,080,152

Delinquency information


Unpaid principal balance of loans with 90+ day delinquencies (2)	$	43,907		$	200,008		$	82,116		$	83,390
Average UPB of 90+ days delinquent loans (2)	10,977			3,922			9,124			1,604
Fair value of 90+ day delinquencies (2)	34,096			N/A			54,587			84,366


Unpaid principal balance of loans in foreclosure (3)	—			17,066			1,055			30,810
Average UPB in foreclosure (3)	—			2,133			1,055			856
Fair value in foreclosure (3)	—			N/A			648			31,496


December 31, 2025	Unsecuritized Term			Securitized Term(1)			Unsecuritized Bridge			Securitized Bridge(1)
(Dollars in Thousands)


Unpaid principal balance	$	205,584		$	2,083,080		$	339,394		$	1,099,350
Average UPB of loans	1,326			3,041			3,058			1,323
Fair value of loans	202,422			1,985,910			296,518			1,117,401
Loans held at lower of cost or market	—			—			14,414			—
Weighted average coupon	6.72		%	5.26		%	8.96		%	8.95		%
Weighted average remaining loan term (years)	13			4			1			1
Market value of loans pledged as collateral under debt facilities	$	109,652		N/A			$	255,255		$	1,117,401

Delinquency information


Unpaid principal balance of loans with 90+ day delinquencies (2)	$	52,380		$	209,560		$	89,504		$	48,438
Average UPB of 90+ days delinquent loans (2)	6,547			4,459			5,967			1,425
Fair value of 90+ day delinquencies (2)	44,680			N/A			64,998			47,439


Unpaid principal balance of loans in foreclosure (3)	—			28,089			22,838			18,882
Average UPB in foreclosure (3)	—			2,554			22,838			1,259
Fair value in foreclosure (3)	—			N/A			16,672			18,538

(1)The fair value of the Term and Bridge loans held by consolidated entities were based on the fair value of the ABS issued by these entities including securities we own, which we determined were more readily observable, in accordance with the accounting guidance for CFEs.


March 31, 2026	Unsecuritized Term		Securitized Term		Unsecuritized Bridge		Securitized Bridge
(Dollars in Thousands)
Term
Single-family rental	$	6,217	$	1,512,087	$	—	$	—
Multifamily (1)	38,616		445,345		—		—
Debt Service Coverage Ratio ("DSCR")	37,018		343		—		—
Bridge
Build for Rent ("BFR") (2) (3)	—		—		101,105		502,676
Residential Transition Loans (“RTL”) (4)	—		—		76,274		442,920
Multifamily (5)	—		—		169,235		114,029
Other	—		—		7,301		—
Total Residential Investor Loans	$	81,851	$	1,957,775	$	353,915	$	1,059,625


December 31, 2025	Unsecuritized Term		Securitized Term		Unsecuritized Bridge		Securitized Bridge
(Dollars in Thousands)
Term
Single-family rental	$	93,605	$	1,620,277	$	—	$	—
Multifamily (1)	55,299		462,803		—		—
Debt Service Coverage Ratio ("DSCR")	56,680		—		—		—
Bridge
Build for Rent ("BFR") (2) (3)	—		—		109,064		500,497
Residential Transition Loans (“RTL”) (4)	—		—		42,107		486,352
Multifamily (5)	—		—		181,977		111,446
Other	—		—		6,246		1,055
Total Residential Investor Loans	$	205,584	$	2,083,080	$	339,394	$	1,099,350

(3)At March 31, 2026 and December 31, 2025, includes $154 thousand and $2 million of Single Asset Bridge ("SAB") loans in Unsecuritized Bridge and $45 million and $48 million of SAB loans in Securitized Bridge.

For the three months ended March 31, 2026, consistent with our strategic alignment with our core business strategies, we adopted a more accelerated approach to resolving modified and legacy loans, advancing the wind-down of underperforming legacy assets to reduce long-term exposure to non-core assets. This includes loan and REO sales, structured exits, and, where necessary, foreclosure or liquidation processes on assets with limited workout potential.

We utilize a rigorous and consistently implemented fair value process when evaluating these loans, which involves management’s review of updated appraisals, collateral performance, sales cost estimates, and independent market data when available. This approach, conducted in accordance with GAAP, is designed to ensure that valuations reflect current conditions and project-specific risks. The actual amounts ultimately recovered—whether through foreclosure, collateral sale, or alternative resolutions, such as discounted payoffs or loan sales—may differ significantly from our estimates and could materially affect future earnings. In exchange for a modification, we may receive a partial repayment of principal, capitalized interest for a portion of interest due, a capital infusion to replenish interest or capital improvement reserves, and/or termination of all or a portion of the remaining unfunded loan commitment.

For the three months ended March 31, 2026 and 2025, we modified or put into forbearance loans with a total aggregate UPB of $182 million and $206 million, respectively. This balance primarily included modifications involving extensions of loan maturities and/or covenant terms ("Simple Modifications") and modifications involving changes to the contractual interest rates (including, in certain cases, deferrals of interest) on loans, which may also include maturity extensions ("Complex Modifications"). An increase in maturity extensions would increase the expected time to repayment with a potential impact on fair values and credit losses. Certain loans may represent subsequent modifications of loans that had been previously modified in a prior reporting period. These further modifications may include adjustments to repayment rates, deferral of interest, floating-to-fixed conversions, maturity extensions (with forbearance or partial repayments), and changes to interest reserves or project completion milestones.

Table 8.6 – Summary of Modification by Loan Terms


March 31, 2026	Unpaid Principal Balance		Weighted Average Contractual Interest Rate		Weighted Average Deferred Interest Rate		Average Month Length of Maturity Extensions
(Dollars in Thousands)
Simple Modifications (Extensions)	$	163,260	N/A		N/A		6
Complex Modifications	18,793		8.50	%	—	%	3
Total Loan Modifications (1)	$	182,053

(1)Included in this population are loans that had been previously modified in a prior period, with an aggregate unpaid principal balance of $15 million involving previous Simple Modifications and $19 million involving previous Complex Modifications.

For the three months ended March 31, 2025, loans with an aggregate UPB of $138 million were Simple Modifications and involved the extension of maturities and/or covenant terms. For the three months ended March 31, 2025, loans with an aggregate UPB of $68 million were Complex Modifications and primarily involved adjustments to contractual interest pay rates (including, in certain cases, deferrals of interest). Modifications on these loans maintained a contractual interest rate of approximately 5.00%, and there were no modifications involving interest deferrals. Of this population, we further modified loans that had been previously modified in a prior period, with an aggregate unpaid principal balance of $68 million.

While we continue to actively engage with certain borrowers to address the impacts of rising interest rates, elongated project timelines, or other issues, further increases in delinquencies or modifications within our residential investor bridge loan portfolio could ultimately result in further decreases in net interest income and the fair value of our bridge loans held for investment, and further instances of borrower/sponsor financial stress could lead to incremental realized credit losses. An increase in maturity extensions in the residential investor bridge portfolio would increase the expected time to repayment with a potential impact on fair values and credit losses. However, given the overall short duration nature of our bridge loans, a certain level of maturity extensions are a routine asset management outcome for these loans, irrespective of market conditions.

Non-accrual loans include both securitized and unsecuritized residential investor loans. At March 31, 2026, residential investor loans with an aggregate UPB of $280 million and an aggregate fair value of $242 million were on non-accrual status. Of this balance, loans with $189 million aggregate UPB were on full non-accrual of the contractual coupon interest and loans with $91 million aggregate UPB were on non-accrual of deferred interest. As of March 31, 2026, the majority of these loans were included within our Legacy Investments portfolio and had an aggregate UPB of $245 million and an aggregate fair value of $207 million. Of this balance, loans with $153 million aggregate UPB were on full non-accrual of the contractual coupon interest and loans with $91 million aggregate UPB were on non-accrual of deferred interest.