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Servicing Investments
 6 Months Ended
Jun. 30, 2026
Investments, All Other Investments [Abstract]  
Servicing Investments Servicing Investments
Servicing Investments at June 30, 2026 and December 31, 2025 are summarized in the following table.
Table 11.1 – Components of Servicing Investments
(In Thousands)June 30, 2026December 31, 2025
Servicer advance investments, at fair value$208,754 $231,227 
Excess MSRs, at fair value40,272 37,971 
MSRs, at fair value41,799 33,032 
Total Servicing Investments$290,825 $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 June 30, 2026 and 2025, income from Servicing investments included Other interest income of $6 million and $7 million, respectively, Investment fair value changes, net of negative $1 million and negative $3 million, respectively, and Servicing income, net of $3 million and $2 million, respectively.
For the six months ended June 30, 2026 and 2025, income from Servicing investments included Other interest income of $12 million and $14 million, respectively, Investment fair value changes, net of positive $8 million and negative $6 million, respectively, and Servicing income, net of $11 million and $5 million, respectively.
Strategic Investments
Strategic Investments at June 30, 2026 and December 31, 2025 are summarized in the following table.
Table 12.1 – Components of Strategic Investments
(In Thousands)June 30, 2026December 31, 2025
Strategic investments, equity method$59,370 $59,337 
Strategic investments, measurement alternative26,527 26,235 
Strategic investments, at fair value10,123 6,310 
Other investments1,113 10,076 
Total Strategic Investments$97,133 $101,958 
Income from Strategic Investments for the three and six months ended June 30, 2026 and 2025 are summarized in the following tables.
Table 12.2 – Components of Income From Strategic Investments, net
Three Months Ended June 30,Six Months Ended June 30,
(In Thousands)2026202520262025
Other (loss) income, net (1)
$3,814 $(210)$4,271 $969 
Investment fair value changes, net (2)
— (132)3,578 (212)
Total Strategic Investments Income, Net$3,814 $(342)$7,849 $757 
(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 both the three and six months ended June 30, 2026, includes Investment fair value gains of zero and $0.01 million, under the measurement alternative. For the three and six months ended June 30, 2025, includes Investment fair value gains of $0.1 million and $0.2 million, respectively, 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 June 30, 2026 and December 31, 2025, the carrying values of our investments in these joint ventures were $20 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 June 30, 2026 and 2025, we recognized net equity method loss of $0.4 million and $0.1 million, respectively, for one joint venture, and net equity method losses of $0.3 million and earnings of $1 million, respectively, for the other. For the six months ended June 30, 2026 and 2025, we recognized net equity method loss of $0.6 million and earnings of $0.1 million, respectively, for one joint venture, and net equity method earnings of $0.2 million and $2 million, respectively, for the other. These amounts are recorded within “Other income, net” in our Consolidated Statements of Income (Loss).
In connection with one of these joint ventures, we also hold a note receivable from the joint venture. At June 30, 2026, the outstanding balance on this note receivable was $1 million and is included in Other Investments in Table 12.1 above. For the three and six months ended June 30, 2026, we recognized $0.6 million and $0.8 million, respectively, in interest on this note, which is recorded within “Other income, net” in our Consolidated Statements of Income (Loss).
See Note 8 for further information on residential bridge loans sold to these joint ventures.
In the second quarter of 2026, we established an additional joint venture with an institutional investment manager to invest in first-lien jumbo residential mortgage loans and related assets sourced by us. We hold an approximately 5% equity interest and have ongoing involvement in the joint venture's operations. Due to our significant influence over the joint venture, we account for our investment under the equity method. As of June 30, 2026, our investment carrying value was $0.3 million. There were no equity method earnings from this joint venture during the three and six months ended June 30, 2026.
See Note 7 for further information on residential consumer loans sold to this joint venture.