Home Equity Investments (HEI)

3 Months Ended

Mar. 31, 2026

Equity Method Investments and Joint Ventures [Abstract]

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. We historically invested in HEI contracts acquired from third party originators, however, we have ceased allocating capital to new investments in third-party originated HEI contracts and, between 2023 and early in the second quarter of 2026, we originated HEI directly 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.

At March 31, 2026, within our Legacy Investments segment, we co-sponsored one HEI securitization entity, which is consolidated in accordance with GAAP, and for which we have elected to account 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.

The following table presents our HEI at March 31, 2026 and December 31, 2025.

Table 10.1 – Home Equity Investments


(In Thousands)	March 31, 2026		December 31, 2025
Unsecuritized HEI	$	145,069	$	138,762
HEI held at consolidated HEI securitization entity	196,032		191,121
Total Home Equity Investments at fair value (1)	$	341,101	$	329,883

(1)At March 31, 2026 and December 31, 2025, balance includes $322 million and $314 million, respectively, of third-party originated HEI included in our Legacy Investments segment, including amounts held through our consolidated HEI securitization entity.

The following table details our HEI activity during the three months ended March 31, 2026 and 2025. Changes in the value of HEI during the three months ended March 31, 2026 are driven by incremental fair value adjustments.

Table 10.2 – Activity of HEI


	Three Months Ended March 31,
	2026				2025
(In Thousands)	Unsecuritized HEI		Securitized HEI		Unsecuritized HEI		Securitized HEI
Fair value of HEI purchased and originated	$	2,612	$	—	$	1,834	$	—


Net market valuation gains recorded	5,109		7,386		7,136		11,912

The following table provides the components of HEI income, net for the three months ended March 31, 2026 and 2025.

Table 10.3 – Components of HEI Income, net


	Three Months Ended March 31,
(In Thousands)	2026		2025
Net market valuation gains recorded on Unsecuritized HEI	$	5,109	$	7,136
Net market valuation gains recorded on Securitized HEI	7,386		11,912
Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)	(2,207)		(3,769)
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations	(3,286)		(5,208)
Other	107		$	95
Total HEI income, net	$	7,109	$	10,166

(1)Amount includes interest expense associated with ABS issued, which totaled $2 million and $3 million, for both the three months ended March 31, 2026 and 2025, respectively.