v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash Flows From Operating Activities:      
Net (loss) income $ (70,026) $ 54,004 $ (2,274)
Adjustments to reconcile net (loss) income to net cash used in operating activities:      
Amortization of premiums, discounts, and debt issuance costs, net 12,991 12,155 17,914
Depreciation and amortization of non-financial assets 10,062 11,916 14,854
Originations of held-for-sale loans (1,855,864) (1,577,336) (774,633)
Purchases of held-for-sale loans (14,583,332) (7,107,623) (2,046,299)
Proceeds from sales of held-for-sale loans 6,003,722 2,811,160 781,386
Principal payments on held-for-sale loans 264,696 112,132 52,097
Net settlements of derivatives 62,933 (74,432) 11,071
Non-cash equity award compensation expense and other 17,167 20,742 19,062
Market valuation adjustments (43,016) (108,422) (35,814)
Realized losses (gains), net 608 (307) (1,699)
Net change in:      
Accrued interest receivable and other assets 103,635 (40,708) (41,156)
Accrued interest payable and accrued expenses and other liabilities (18,097) 24,195 (10,334)
Net cash used in operating activities (10,094,521) (5,862,524) (2,015,825)
Cash Flows From Investing Activities:      
Originations of loan investments (632,765) (120,661) (806,894)
Proceeds from sales of loan investments 100,619 94,339 45,663
Principal payments on loan investments 4,663,460 2,768,197 1,549,092
Purchases of real estate securities (257,344) (234,828) (9,855)
Proceeds from sales of real estate securities 385,423 2,833 143,914
Principal payments on real estate securities 15,881 8,526 1,122
Repayments from servicer advance investments, net 5,490 357 55,777
Purchases of HEI (12,967) (2,043) (108,054)
Repayments on HEI 32,423 49,553 42,961
Proceeds from sales of HEI 262,447 0 0
Other investing activities, net (30,627) (27,874) (5,006)
Net cash provided by investing activities 4,532,040 2,538,399 908,720
Cash Flows From Financing Activities:      
Proceeds from borrowings on debt obligations 17,401,458 10,021,863 3,705,168
Repayments on borrowings on debt obligations (16,061,120) (9,788,744) (4,233,872)
Proceeds from issuance of asset-backed securities 8,973,753 5,311,810 2,465,515
Repayments on asset-backed securities issued (4,429,814) (2,153,596) (872,710)
Debt issuance costs paid (22,191) (16,707) (3,166)
Net proceeds from issuance of common stock 434 462 124,474
Net proceeds from issuance of preferred stock 0 0 66,948
Payments for repurchase of common stock (51,833) 0 0
Taxes paid on equity award distributions (5,286) (5,013) (5,353)
Dividends paid on common stock (98,972) (92,896) (88,376)
Dividends paid on preferred stock (7,015) (7,015) (5,199)
Other financing activities, net (750) (1,900) (6,900)
Net cash provided by (used in) financing activities 5,698,664 3,268,264 1,146,529
Net increase (decrease) in cash and cash equivalents 136,183 (55,861) 39,424
Cash, cash equivalents and restricted cash at beginning of year [1] 312,927 368,788 329,364
Cash, cash equivalents and restricted cash at end of year [1] 449,110 312,927 368,788
Cash paid during the year for:      
Interest 1,075,971 811,423 603,316
Taxes paid (refunded), net 8,798 4,057 (1,445)
Supplemental Noncash Information:      
Retention of mortgage servicing rights from loan securitizations and sales 2,410 1,276 0
Dividends declared but not paid on preferred stock 1,478 1,478 1,478
Transfers from loans held-for-sale to loans held-for-investment 8,811,765 5,702,565 2,789,507
Transfers from loans held-for-investment to loans held-for-sale 2,147,978 14,862 27,958
Transfers from residential loans to real estate owned 144,758 22,554 100,280
Consolidation of securitized CAFL bridge loans at issuance 293,580 287,605 0
Consolidation of CAFL bridge ABS 568,181 284,997 0
Deconsolidation of securitized reperforming loans 1,239,652 0 0
Deconsolidation of securitized reperforming ABS 988,446 0 0
Operating lease right-of-use assets obtained in exchange for operating lease liabilities 3,085 282 478
Reduction in operating lease liabilities due to lease modification $ 0 $ 0 $ 274
[1] Cash, cash equivalents, and restricted cash at December 31, 2025 included cash and cash equivalents of $256 million and restricted cash of $193 million; at December 31, 2024 included cash and cash equivalents of $245 million and restricted cash of $68 million; and at December 31, 2023 included cash and cash equivalents of $293 million and restricted cash of $76 million.

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