Debt Obligations, Net

3 Months Ended

Mar. 31, 2026

We enter into loan warehouse facilities, repurchase agreements ("repo"), recourse subordinate securities financings, and other forms of collateralized (and generally uncommitted) borrowings with several banks and major investment banking firms. We use debt to finance the acquisition and/or origination of residential consumer and residential investor mortgage loans (including those we acquire or originate in anticipation of sale or securitization), and to finance investments in securities and other investments. Additionally, we use corporate debt obligations to fund other aspects of our business and operations, including the repurchase of shares of our capital stock.

At March 31, 2026, we had outstanding agreements on debt obligations with several counterparties and we were in compliance with all of the related covenants. Refer to Note 3 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 investments. Refer to Note 18 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 our debt obligations.

The following tables summarize our debt obligations at March 31, 2026 and December 31, 2025.

Table 18.1 – Debt Obligations, Net


	March 31, 2026
(Dollars in Thousands)	Number of Facilities or Issuances	Principal Amount		Carrying Value (1)		Facility Capacity		Weighted Average Interest Rate (2)		Final Stated Maturity	Carrying Value of Collateral

Short-Term Facilities:
Residential consumer loan warehouse facilities	9	$	2,854,214	$	2,854,215	$	4,700,000	5.43	%	4/2026-3/2027	$	3,050,559
Residential investor loan warehouse facilities	4	104,760		104,443		725,000		6.90	%	5/2026-12/2026	119,870
Real estate securities repurchase facilities	2	71,623		71,623		—		4.70	%	4/2026-6/2026	91,096
Real estate securities repurchase facilities IO	1	32,838		32,838		75,000		6.68	%	6/2026	45,106
Residential MSR warehouse facility	1	114,457		114,457		125,000		6.92	%	1/2027	263,286
HEI warehouse facility	1	43,073		43,073		150,000		8.17	%	12/2026	99,351
Servicer advance financing	1	135,239		134,972		200,000		5.63	%	12/2026	219,923

Recourse Subordinate Securities Financing:
CAFL securities (3)	1	262,091		261,506		(a)		7.54	%	9/2028	315,654
Sequoia and other third-party securities (3)	1	85,270		85,270		(a)		7.27	%	6/2027	104,367

Long-Term Facilities:
Residential investor loan warehouse facilities	2	75,793		75,778		1,300,000		6.88	%	8/2027	152,842
Secured revolving financing facility (4)	1	330,883		325,769		400,000		8.67	%	3/2027	563,436

Corporate Debt:
Promissory notes (3) (5)	3	8,359		8,359		(a)		6.91	%	N/A	(b)
7.75% convertible senior notes (3)	1	297,170		293,699		(a)		7.75	%	6/2027	(b)
Trust preferred securities and subordinated notes	2	139,500		138,917		(a)		6.18	%	1/2037, 7/2037	(b)
9.125% Senior Notes (3)	1	59,127		57,561		(a)		9.13	%	3/2029	(b)
9.0% Senior Notes (3)	1	84,015		81,782		(a)		9.00	%	9/2029	(b)
9.125% Senior Notes (3)	1	89,232		86,429		(a)		9.13	%	3/2030	(b)
9.5% Senior Notes (3)	1	100,000		96,677		(a)		9.50	%	12/2030	(b)
Total Debt Obligations		$	4,887,644	$	4,867,368						$	5,025,490


	December 31, 2025
(Dollars in Thousands)	Number of Facilities or Issuances	Principal Amount		Carrying Value (1)		Facility Capacity		Weighted Average Interest Rate (2)		Final Stated Maturity	Carrying Value of Collateral
Short-Term Facilities:
Residential consumer loan warehouse facilities	8	$	2,798,725	$	2,798,725	$	3,554,960	5.52	%	1/2026-8/2026	$	3,066,067
Residential investor loan warehouse facilities	4	157,999		157,571		825,000		7.22	%	5/2026-12/2026	159,074
Real estate securities repurchase facilities	4	30,867		30,867		—		5.20	%	1/2026-3/2026	40,568
Real estate securities repurchase facilities IO	1	—		—		75,000		6.87	%	6/2026	—
Residential MSR warehouse facility	1	95,862		95,862		125,000		7.12	%	1/2026	194,228
HEI warehouse facility	1	43,496		43,496		150,000		8.29	%	12/2026	98,308
Servicer advance financing	1	152,660		152,293		200,000		5.68	%	12/2026	223,677

Recourse Subordinate Securities Financings:
CAFL securities (3)	1	263,063		262,374		(a)		7.54	%	9/2028	330,212
Sequoia and other third-party securities (3)	1	87,477		87,477		(a)		7.27	%	6/2027	109,686

Long Term Facilities:
Residential investor loan warehouse facilities	2	131,138		131,069		1,300,000		6.68	%	1/2027-8/2027	205,833
Secured revolving financing facility (4)	1	282,883		276,580		400,000		8.66	%	3/2027	451,262

Corporate Debt:
Promissory notes (3) (5)	3	9,264		9,264		(a)		7.01	%	N/A	(b)
7.75% convertible senior notes (3)	1	297,170		292,993		(a)		7.75	%	6/2027	(b)
Trust preferred securities and subordinated notes	2	139,500		138,906		(a)		6.35	%	1/2037, 7/2037	(b)
9.125% Senior Notes (3)	1	59,127		57,444		(a)		9.13	%	3/2029	(b)
9.0% Senior Notes (3)	1	84,015		81,647		(a)		9.00	%	9/2029	(b)
9.125% Senior Notes (3)	1	89,232		86,270		(a)		9.13	%	3/2030	(b)
9.5% Senior Notes (3)	1	100,000		96,544		(a)		9.50	%	12/2030	(b)
Total Debt Obligations		$	4,822,478	$	4,799,382						$	4,878,915

(1)Carrying value presented net of total deferred issuance costs of $20 million and $23 million at March 31, 2026 and December 31, 2025, respectively.

(2)Variable rate borrowings are based on 1- or 3-month SOFR, plus an applicable spread.

(3)Borrowing has a fixed interest rate at period end.

(4)Facility may be extended for one year at our option.

(5)Promissory notes payable on demand to lender with 90-day notice.

(a) Outstanding principal balance represents facility capacity at period end.

(b) Unsecured corporate debt; no related collateral at period end.

Corporate Debt

Convertible Notes

In June 2022, we issued $215 million principal amount of 7.75% convertible senior notes due 2027. These notes require semi-annual interest payments at a fixed annual coupon rate of 7.75% until maturity or conversion, which will be no later than June 15, 2027. After deducting the underwriting discount and offering costs, we received $208 million of net proceeds. In October 2024, we issued an additional $40 million of these 7.75% senior notes due 2027 in a private offering, resulting in net proceeds of approximately $39 million. In August 2025, we issued an additional $50 million of these 7.75% senior notes due 2027, resulting in net proceeds of approximately $49 million. We may elect to settle conversions either entirely in cash or in a combination of cash and shares of common stock. Upon conversion, the conversion value will be paid in cash up to at least the principal amount of the notes being converted. At March 31, 2026, the conversion rate of the notes was 95.6823 common shares per $1,000 principal amount of notes (equivalent to a conversion price of $10.45 per common share). During both the three months ended March 31, 2026 and 2025 we repurchased zero par value of these notes.