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Strategic Investments
 3 Months Ended
Mar. 31, 2026
Investments, All Other Investments [Abstract]  
Strategic Investments Servicing Investments
Servicing Investments at March 31, 2026 and December 31, 2025 are summarized in the following table.
Table 11.1 – Components of Servicing Investments
(In Thousands)March 31, 2026December 31, 2025
Servicer advance investments, at fair value$219,923 $231,227 
Excess MSRs, at fair value39,991 37,971 
MSRs, at fair value39,782 33,032 
Total Servicing Investments$299,696 $302,230 
We account for our Servicer advance investments, Excess MSRs and MSRs at fair value. Refer to Note 6 for further information on the inputs into the fair valuation of these components. Refer to Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding these components and related transactions.
For the three months ended March 31, 2026 and 2025, income from Servicing investments included Other interest income of $6 million and $7 million, respectively, Investment fair value changes, net of positive $9 million and negative $3 million, respectively, and Servicing income, net of $8 million and $3 million, respectively.
Strategic Investments
Strategic Investments at March 31, 2026 and December 31, 2025 are summarized in the following table.
Table 12.1 – Components of Strategic Investments
(In Thousands)March 31, 2026December 31, 2025
Strategic investments, equity method$60,013 $59,337 
Strategic investments, measurement alternative26,527 26,235 
Strategic investments, at fair value10,123 6,310 
Other investments10,065 10,076 
Total Strategic Investments$106,728 $101,958 
Income from Strategic Investments for the three months ended March 31, 2026 and 2025 are summarized in the following tables.
Table 12.2 – Components of Income From Strategic Investments, net
Three Months Ended March 31,
(In Thousands)20262025
Other (loss) income, net (1)
$457 $1,179 
Investment fair value changes, net (2)
3,578 (80)
Total Strategic Investments Income, Net$4,035 $1,099 
(1)Represents net equity method earnings from our Strategic investments that are accounted for under the equity method.
(2)Includes Investment fair value changes related to our Strategic investments that are accounted for under the measurement alternative for equity securities without readily determinable fair values. Under this approach, investments are carried at cost, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer, or for impairment.
For the three months ended March 31, 2026, includes Investment fair value gains of $2 million and investment fair value losses of $0.01 million, under the measurement alternative. For the three months ended March 31, 2025, includes Investment fair value gains of $0.5 million and investment fair value losses of $0.4 million, under the measurement alternative.
Depending on the terms of the strategic investments, we may account for these investments under the fair value option, as non-marketable equity securities under the equity method of accounting or the measurement alternative for equity securities without readily determinable fair values. Refer to Note 6 for further information on the inputs into the fair valuation of these components. Refer to Note 12 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding these components and related transactions.
Joint Ventures
We have established joint ventures with institutional investment managers to invest in residential investor bridge loans and term loans originated by our CoreVest subsidiary. As of March 31, 2026 and December 31, 2025, the carrying values of our investments in these joint ventures were $25 million and $24 million, respectively. We account for these investments under the equity method of accounting, reflecting our approximately 25% non-controlling interests and our ability to exert significant influence over the operations of the joint ventures. The carrying values are adjusted quarterly to reflect our share of earnings or losses, dividends received, or returns of capital. For the three months ended March 31, 2026 and 2025, we recognized net equity method loss of $0.1 million and earnings of $0.1 million, respectively, for one joint venture, and net equity method earnings of $0.5 million and $2 million, respectively, for the other. These amounts are recorded within “Other income, net” in our Consolidated Statements of Income.
In connection with one of these joint ventures, we also hold a note receivable from the joint venture. At March 31, 2026, the outstanding balance on this note receivable was $10 million and is included in Other Investments in Table 12.1 above. For the three months ended March 31, 2026, we recognized $0.2 million in interest on this note.
See Note 8 for further information on residential bridge loans sold to these joint ventures.