Franklin BSP Realty Trust, Inc.
For the period ended Mar 31, 2026. Filed Apr 29, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 29, 2026
FBRT$6.20-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001562528-25-000041
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001562528-26-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 237 previous paragraphs and 226 current paragraphs.
135 unchanged; 57 reworded; 33 added; 41 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 22 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (33)
Current report
•the ability of us and our external advisor to retain qualified personnel;
Current report
(3) Excluding the impact of accumulated depreciation and amortization of real property of $18.5 million and $17.5 million as of March 31, 2026 and December 31, 2025, respectively, as well as including the impact of the fair value of our MSRs over their carrying value of $19.2 million as of March 31, 2026, would result in a fully converted book value per share of $14.58 and $14.34, respectively.
Current report
As of both March 31, 2026 and December 31, 2025, we had seven loans (one secured by an office property and six secured by multifamily properties) designated as non-performing status with a total amortized cost of $308.9 million and $214.0 million, respectively. As of March 31, 2026 and December 31, 2025, three loans designated as non-performing and put on cost recovery status were determined to have a combined $16.3 million and $4.1 million specific allowance for credit losses, respectively.
Current report
The following table shows selected data from our real estate owned assets in our portfolio as of March 31, 2026 (dollars in thousands):
Current report
(1) Includes intangible lease assets
Current report
Interest Income
Current report
Interest income for the three months ended March 31, 2026 and 2025 totaled $92.2 million and $113.9 million, respectively, a decrease of $21.7 million. The decrease was primarily due to an approximate 66 basis point decrease in daily average SOFR and SOFR equivalent rates, a decrease in spreads and a decrease of approximately $109.6 million in the average carrying balance of our interest earning assets. As of March 31, 2026, our portfolio consisted of (i) 177 commercial mortgage loans, held for investment, (ii) 14 commercial mortgage loans, held for sale, measured at fair value and (iii) twelve real estate securities, available for sale, measured at fair value. As of March 31, 2025, our portfolio consisted of (i) 152 commercial mortgage loans, held for investment, (ii) one commercial mortgage loan, held for sale, measured at fair value and (iii) ten real estate securities, available for sale, measured at fair value.
Current report
Gain on sales, including fee-based services, net for the three months ended March 31, 2026 and 2025 was $21.3 million and $5.0 million, respectively, which was comprised of sales, including fee-based services, from our Agency Business and conduit segments.
Current report
Gain on sales, including fee-based services, net from our Agency Business segment for the three months ended March 31, 2026 was $16.5 million. This was due to Agency loans originated of $572.2 million and sales of $684.9 million. The Company did not have the Agency Business segment during the three months ended March 31, 2025.
Current report
Gain on sales, including fee-based services, net from our conduit segment for the three months ended March 31, 2026 and 2025 was $4.8 million and $5.0 million, respectively. During the three months ended March 31, 2026, the Company sold $105.0 million in principal amount of commercial real estate loans into the CMBS securitization market resulting in proceeds of $109.3 million. This is compared to the sale of $106.5 million in principal amount of commercial real estate loans sold into the CMBS securitization market resulting in proceeds of $111.5 million for the three months ended March 31, 2025.
Current report
Revenue from Real Estate Owned
Current report
For the three months ended March 31, 2026 and 2025, revenue from real estate owned was $6.9 million and $6.8 million, respectively, staying relatively consistent period-over-period.
Current report
Provision for credit losses during the three months ended March 31, 2026 was $11.4 million, compared with a benefit of $1.9 million during the three months ended March 31, 2025.
Current report
Provision for income tax for the three months ended March 31, 2026 was $0.9 million compared to a provision of $0.7 million for the three months ended March 31, 2025. The increase was primarily due to taxable income related to our Agency Business segment, which was acquired on July 1, 2025.
Current report
The increase in operating expense for the three months ended March 31, 2026 compared to 2025 was primarily related to (i) an increase in professional fees related to correspondent fees paid from our Agency Business segment and (ii) our incurrence of compensation and benefits cost of $22.8 million compared to no such expenses during the three months ended March 31, 2025, resulting from our acquisition of NewPoint.
Current report
Interest Income
Current report
Interest income for the three months ended March 31, 2026 and December 31, 2025 totaled $92.2 million and $99.0 million, respectively, a decrease of $6.8 million. The decrease was primarily due to an approximate 32 basis point decrease in daily average SOFR and SOFR equivalent rates, a decrease in spreads and a decrease of approximately $36.3 million in the average carrying balance of our interest earning assets. As of March 31, 2026, our portfolio consisted of (i) 177 commercial mortgage loans, held for investment, (ii) 14 commercial mortgage loans, held for sale, measured at fair value and (iii) twelve real estate securities, available for sale, measured at fair value. As of December 31, 2025, our portfolio consisted of (i) 169 commercial mortgage loans, held for investment, (ii) 17 commercial mortgage loans, held for sale, measured at fair value and (iii) ten real estate securities, available for sale, measured at fair value.
Current report
Interest expense for the three months ended March 31, 2026 and December 31, 2025 totaled $65.2 million and $71.0 million, respectively, a decrease of $5.8 million. The decrease was primarily due to an approximate 32 basis point decrease in daily average SOFR and SOFR equivalent rates coupled with a decrease in spreads.
Current report
Gain on sales, including fee-based services, net for the three months ended March 31, 2026 and December 31, 2025 was $21.3 million and $22.9 million, respectively, which was comprised of sales, including fee-based services, from our Agency Business and conduit segments.
Current report
Gain on sales, including fee-based services, net from our Agency Business segment for the three months ended March 31, 2026 and December 31, 2025 was $16.5 million and $11.3 million, respectively. The increase was primarily due to higher premiums earned on loans rate locked during the three months ended March 31, 2026 as compared with three months ended December 31, 2025.
Current report
Gain on sales, including fee-based services, net from our conduit segment for the three months ended March 31, 2026 and December 31, 2025 was $4.8 million and $11.6 million, respectively. During the three months ended March 31, 2026, the Company sold $105.0 million in principal amount of commercial real estate loans into the CMBS securitization market resulting in proceeds of $109.3 million. This is compared to the sale of $290.6 million in principal amount of commercial real estate loans into the CMBS securitization market resulting in proceeds of $299.8 million for the three months ended December 31, 2025.
Current report
Income for mortgage servicing rights for the three months ended March 31, 2026 and December 31, 2025 was $6.7 million and $8.8 million, respectively. The decrease related to $421.8 million in lower origination volume of the underlying loans for the three months ended March 31, 2026 compared to the three months ended December 31, 2025.
Current report
Servicing revenue for the three months ended March 31, 2026 and December 31, 2025 was $10.6 million and $8.9 million, respectively. The increase was primarily due to MSR impairment recoveries recognized during the three months ended March 31, 2026 due to potential market interest rate increase, which resulted in lower prepayment rates and higher portfolio valuation.
Current report
Revenue from Real Estate Owned
Current report
For the three months ended March 31, 2026 and December 31, 2025, revenue from real estate owned was $6.9 million and $7.3 million, respectively, staying relatively consistent quarter-over-quarter.
Current report
Provision for credit losses was $11.4 million for the three months ended March 31, 2026, compared to a benefit of $7.9 million for the three months ended December 31, 2025.
Current report
For the three months ended March 31, 2026 and December 31, 2025, general benefit for credit losses was $1.3 million and $7.8 million, respectively. General benefit for the three months ended March 31, 2026 was attributable to more favorable economic assumptions utilized for the CECL model compared to preceding periods. General benefit for the three months ended December 31, 2025 was attributable to performance improvement of our portfolio since the end of the prior quarter.
Current report
For the three months ended March 31, 2026 and December 31, 2025, income from equity method investments was $12.4 million primarily related to the Company's allocated percentage of unrealized gains on a mixed use property located in New Jersey and an industrial property located in California. This is compared to income from equity method investments of $3.4 million for the three months ended December 31, 2025 primarily related to the Company's share of increases to the fair value of the assets held by our equity method investment in a portfolio of multifamily affordable bonds.
Current report
The increase in operating expenses for the three months ended March 31, 2026 was primarily related to an increase in compensation and benefits primarily due to an increase in commission expenses caused by higher commissionable loan fees earned during the three months ended March 31, 2026 compared to December 31, 2025, as well as higher 401(k) plan match expense due to payment of bonuses during the first quarter.
Current report
During the three months ended March 31, 2026, the maximum average outstanding balance was $1.6 billion, of which $1.4 billion was related to repurchase agreements on our commercial mortgage loans and $0.2 billion for repurchase agreements on our real estate securities.
Current report
During the three months ended March 31, 2025, the maximum average outstanding balance was $0.7 billion, of which $0.4 billion was related to repurchase agreements on our commercial mortgage loans and $0.2 billion for repurchase agreements on our real estate securities.
Current report
During the three months ended March 31, 2024, the maximum average outstanding balance was $0.6 billion, of which $0.4 billion was related to repurchase agreements on our commercial mortgage loans and $0.2 billion for repurchase agreements on our real estate securities.
Current report
(4)Represents non-cash (income) loss from equity method investments, net of cash received as return on capital for the quarter.
Removed paragraphs (41)
Previous report
•the availability of qualified personnel;
Previous report
•our ability to hire and retain key personnel;
Previous report
The decrease in book value per share during the three months ended September 30, 2025 was primarily driven by (i) dividends paid on common stock in excess of net income, and (ii) dilution associated with the issuance of Class A Units in connection with the NewPoint acquisition.
Previous report
(3) Book value per share as of September 30, 2025 and December 31, 2024, excluding the impact for accumulated depreciation and amortization of real property of $16.4 million and $13.8 million, respectively, was $14.46 and $15.35.
Previous report
Accounting for business combinations requires us to recognize, separately from goodwill, the assets acquired and the liabilities assumed ("net assets") at their acquisition date fair values. Goodwill is measured as the excess of consideration transferred over the net assets acquired at their respective fair values as of the acquisition date. The estimated fair values require significant estimates and assumptions including, but not limited to, estimating projected revenues and developing appropriate discount rates. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding adjustment to goodwill, based on new information obtained about the facts and circumstances that existed as of the acquisition date. Upon the conclusion of the measurement period or final determination of the values of net assets acquired, whichever comes first, any subsequent adjustments are recorded to our consolidated financial statements. Refer to Note 3 - Business Combinations for critical accounting estimates around the Company's purchase price accounting allocations.
Previous report
NewPoint Acquisition
Previous report
On July 1, 2025, we completed the acquisition of NewPoint. NewPoint is a commercial real estate finance company focused on originating and servicing agency mortgage loans. NewPoint is a multifamily originator and servicer and is approved by four government sponsored entities (Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Government National Mortgage Association and U.S. Department of Housing and Urban Development). NewPoint’s mortgage servicing rights ("MSRs") are held as an asset on our consolidated balance sheet. As of September 30, 2025, and as of the closing date of the acquisition, NewPoint had a total servicing portfolio of $47.3 billion and $55.4 billion, respectively. We expect that the NewPoint business will be complimentary to our historical business and will offer our traditional bridge loan borrowers the opportunity to refinance our bridge loans with agency mortgage loans.
Previous report
The NewPoint acquisition does not have any impact on our arrangements with the Advisor. The President and the Chief Financial Officer / Chief Operating Officer of the Company oversee and manage the officers and employees of NewPoint serving in their respective roles as CEO and COO of that business.
Previous report
As a result of the NewPoint acquisition, we treat the associated agency mortgage business, which focuses on originating, selling and servicing agency mortgage loans, as a new business segment. The agency business has and will continue to have a number of impacts on our future consolidated financial statements, including the addition of MSRs to our consolidated balance sheet, the addition of servicing income and gains on sales of originated agency mortgages, and the addition of employee expense. These changes may make it difficult to compare our financial results in future periods with our financial results from periods that preceded the acquisition. In addition, gains on sale from originated agency mortgages will largely be driven by origination volumes in the reported period. As a result, the associated gains on sale may vary significantly quarter to quarter, which may make it difficult to compare future quarter to quarter financial results.
Previous report
With respect to liquidity, we expect the agency business will continue to utilize warehouse agreements as the primary form of financing. The warehouse agreements used for the agency business generally have 100% financing. We also expect that the MSRs we hold on our balance sheet will increase our ability to expand our revolving credit facilities.
Previous report
We issued 8,385,951 Class A Units of FBRT OP LLC, a consolidated subsidiary of the Company, to equity holders of NewPoint in the acquisition. After 12 months from the closing date, holders of the Class A Units may elect to have the Class A Units redeemed, in which case the Company will have the option to satisfy the redemption consideration with either cash (based on the trading price of the Company’s common stock) or the delivery of one share of the Company’s common stock for each Class A Unit. We expect to pay quarterly per unit cash distributions to holders of Class A Units equal to the quarterly per share cash distributions we pay to holders of our common stock.
Previous report
New Tax Legislation
Previous report
Effective July 4, 2025, certain changes to U.S. tax law were approved that impact us and our stockholders. Among other changes, this legislation (i) permanently extended the 20% deduction for “qualified REIT dividends” for individuals and other non-corporate taxpayers under Section 199A of the Internal Revenue Code (the “Code”), (ii) increased the percentage limit under the REIT asset test applicable to taxable REIT subsidiaries (“TRSs”) from 20% to 25% for taxable years beginning after December 31, 2025, and (iii) increased the base on which the 30% interest deduction limit under Section 163(j) of the Code applies by excluding depreciation, amortization and depletion from the definition of “adjusted taxable income” (i.e. based on EBITDA rather than EBIT) for taxable years beginning after December 31, 2024.
Previous report
As of September 30, 2025, we had four loans (one secured by an office property, one secured by a portfolio of retail properties, and two secured by multifamily properties), designated as non-performing status with a total amortized cost of $100.7 million. Subsequent to September 30, 2025, we disposed of the loan secured by the portfolio of retail properties at a price equivalent to par, recovering our full basis. As of September 30, 2025, one of the non-performing loans, collateralized by a multifamily property, was placed on cost recovery status with a specific allowance for credit losses of $2.3 million.
Previous report
The following table shows selected data from our commercial mortgage loans, held for sale assets in our portfolio as of September 30, 2025 (dollars in thousands):
Previous report
The following table shows selected data from our real estate owned, held for investment assets in our portfolio as of September 30, 2025 (dollars in thousands):
Previous report
The following table shows selected data from our real estate owned, held for sale assets in our portfolio as of September 30, 2025 (dollars in thousands):
Previous report
Interest income for the nine months ended September 30, 2025 and 2024 totaled $331.2 million and $398.3 million, respectively, a decrease of $67.1 million. The decrease was primarily due to an approximate 98 basis point decrease in daily average SOFR and SOFR equivalent rates coupled with a decrease of $546.7 million in the average carrying balance of our real estate debt. As of September 30, 2025, our portfolio consisted of (i) 147 commercial mortgage loans, held for investment, (ii) 36 commercial mortgage loans, held for sale, measured at fair value, (iii) two commercial mortgage loans, held for sale and (iv) five real estate securities, available for sale, measured at fair value. As of September 30, 2024, our portfolio consisted of (i) 157 commercial mortgage loans, held for investment, and (ii) ten real estate securities, available for sale, measured at fair value.
Previous report
Gain on sales, including fee-based services, net for the nine months ended September 30, 2025 and 2024 was $34.7 million and $13.1 million, respectively. The increase was primarily due to agency loans originated and sold from our Agency segment, which we acquired though the NewPoint acquisition on July 1, 2025.
Previous report
For the nine months ended September 30, 2025 and 2024, revenue from real estate owned was $22.4 million and $14.2 million, respectively. The $8.2 million increase was primarily the result of rental income from obtaining possession of additional multifamily and office properties brought on as real estate owned for the nine months ended September 30, 2025.
Previous report
Benefit for credit losses was $4.0 million during the nine months ended September 30, 2025 compared to a provision of $34.8 million during the nine months ended September 30, 2024.
Previous report
Realized Gain/(Loss) on Real Estate Securities, Available for Sale
Previous report
Realized gain on real estate securities, available for sale for the nine months ended September 30, 2025 was $0.1 million related to eight sales of our CRE CLO bonds. This is compared to a gain of $0.1 million for the nine months ended September 30, 2024 related to six sales of our CRE CLO bonds.
Previous report
The increase in operating expense for the nine months ended September 30, 2025 was primarily related to (i) an increase in professional fees related to the NewPoint acquisition, (ii) an increase in other expenses related to property operating expenses and third party management fees incurred in order to operate various real estate owned investments in our portfolio and (iii) compensation and benefits related to NewPoint. Historically, we did not have compensation and benefit expenses as the Company did not have employees.
Previous report
Interest income for the three months ended September 30, 2025 and June 30, 2025 totaled $106.2 million and $111.2 million, respectively, a decrease of $5.0 million. This decrease was primarily due to a decrease of $198.9 million in the average carrying balance of our real estate debt. Average SOFR and SOFR equivalent rates remained consistent quarter over quarter. As of September 30, 2025, our portfolio consisted of (i) 147 commercial mortgage loans, held for investment, (ii) 36 commercial mortgage loans, held for sale, measured at fair value and (iii) two commercial mortgage loans, held for sale and (iv) five real estate securities, available for sale, measured at fair value. As of June 30, 2025, our portfolio consisted of (i) 145 commercial mortgage loans, held for investment, (ii) three commercial mortgage loan, held for sale, measured at fair value and (iii) five real estate securities, available for sale, measured at fair value.
Previous report
Interest expense for the three months ended September 30, 2025 and June 30, 2025 totaled $76.5 million and $70.2 million, respectively, a increase of $6.3 million. The increase was primarily due to a increase of $473.0 million in the average carrying balance of our repurchase agreements - commercial mortgage loans. Average SOFR and SOFR equivalent rates remained consistent quarter over quarter.
Previous report
Gain on sales, including fee-based services, net for the three months ended September 30, 2025 and June 30, 2025 was $29.4 million and $0.3 million, respectively. The $29.1 million increase was primarily due to agency loans originated and sold from our Agency segment, which we acquired though the NewPoint acquisition on July 1, 2025.
Previous report
For the three months ended September 30, 2025 and June 30, 2025, revenue from real estate owned was $7.2 million and $8.3 million, respectively. The $1.1 million decrease was primarily related to the sales of three multifamily assets for the three months ended September 30, 2025.
Previous report
Benefit for credit losses was $0.6 million and $1.5 million, respectively, during the three months ended September 30, 2025 and June 30, 2025.
Previous report
For the three months ended September 30, 2025 and June 30, 2025, general benefit for credit losses was $1.5 million and $2.6 million, respectively. General benefit for both periods decreased primarily due to the portfolio turnover of older vintage loans with newly originated loans, coupled by a decrease in the overall size of our portfolio.
Previous report
Realized Gain/(Loss) on Real Estate Securities, Available for Sale
Previous report
The Company did not recognize a realized gain or loss on real estate securities, available for sale for the three months ended September 30, 2025. Realized gain on real estate securities, available for sale for the three months ended June 30, 2025 of $0.1 million related to eight sales of our CRE CLO bonds.
Previous report
For the three months ended September 30, 2025 and June 30, 2025, income from equity method investments was $6.0 thousand and $0.2 million, respectively. The decrease was primarily related to changes in the Company's net allocated percentage of income generated by our equity method investments.
Previous report
The increase in operating expenses for the three months ended September 30, 2025 was primarily related to an (i) increase in professional fees related to the NewPoint acquisition, (ii) an increase in other expenses related to property operating expenses and third party management fees incurred in order to operate various real estate owned investments in our portfolio and (iii) compensation and benefits related to NewPoint. Historically, we did not have compensation and benefit expenses as the Company did not have employees.
Previous report
Refer to "NewPoint Acquisition" above for a discussion of the anticipated impacts of the NewPoint acquisition on our financial results and liquidity.
Previous report
During the nine months ended September 30, 2025, the maximum average outstanding balance was $1.5 billion, of which $1.3 billion was related to repurchase agreements on our commercial mortgage loans and $0.2 billion for repurchase agreements on our real estate securities.
Previous report
During the nine months ended September 30, 2024, the maximum average outstanding balance was $1.1 billion, of which $0.8 billion was related to repurchase agreements on our commercial mortgage loans and $0.3 billion for repurchase agreements on our real estate securities.
Previous report
During the nine months ended September 30, 2023, the maximum average outstanding balance was $1.2 billion, of which $0.9 billion was related to repurchase agreements on our commercial mortgage loans and $0.3 billion for repurchase agreements on our real estate securities.
Previous report
Refer to "NewPoint Acquisition" above with respect to the expected distributions associated with the Class A units issued in the acquisition.
Previous report
The table does not include the cash consideration the Company paid when the NewPoint acquisition was consummated on July 1, 2025. Refer to Note 16 - Commitments and Contingencies in the accompanying financial statements for more information.
Showing the first 40 of 41 passages. Open the source sections for the rest.
Reworded paragraphs (57)
Previous wording
As used herein, the terms "the Company," "we," "our" and "us" refer to Franklin BSP Realty Trust, Inc., a Maryland corporation and, as required by context, to Benefit Street Partners Realty Operating Partnership, L.P., a Delaware limited partnership, which we refer to as the "OP," and to its subsidiaries. We are externally managed by Benefit Street Partners L.L.C. (the "Advisor").
Current wording
As used herein, the terms "the Company," "we," "our" and "us" refer to Franklin BSP Realty Trust, Inc., a Maryland corporation and, as required by context, to FBRT OP LLC, a Delaware limited liability company, which we refer to as the "OP," and to its subsidiaries. We are externally managed by Benefit Street Partners L.L.C. (the "Advisor").
Previous wording
•our ability to recover unpaid principal on defaulted loans;
Current wording
•our ability to recover unpaid principal on defaulted loans and reinvest it in income producing assets;
Previous wording
•the impact of national health crises;
Current wording
•the impact of national health crises or international military conflicts;
Previous wording
•our ability to maintain our qualification as a real estate investment trust ("REIT"); and
Current wording
•our ability to maintain our qualification as a real estate investment trust ("REIT") for U.S. federal income tax purposes; and
Previous wording
•other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024 and this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025.
Current wording
•other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
The Company is a Maryland corporation and has made tax elections to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes since 2013. Substantially all of our business is conducted through the OP, a Delaware limited liability company. We are the managing member of the OP and directly or indirectly held 91% of the common units of membership interests in the OP as of September 30, 2025.
Current wording
The Company is a Maryland corporation and has made tax elections to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes since 2013. Substantially all of our business is conducted through the OP, a Delaware limited liability company. We are the managing member of the OP and directly or indirectly held 90% of the common units of membership interests in the OP ("OP Units") as of March 31, 2026.
Previous wording
As of September 30, 2025, we have 218 employees, all of which are employees of NewPoint.
Current wording
As of March 31, 2026, we have 243 employees, all of which are employees of NewPoint.
Previous wording
(2) Fully-converted book value per share assumed conversion of the Company's Series H preferred stock, Class A Units and the vesting of the Company's unvested RSUs.
Current wording
(2) Fully-converted book value per share assumes conversion of the Company's Series H preferred stock, the redemption for Company common stock of the Class A OP Units of the OP held by third parties, and the vesting of the Company's unvested equity compensation awards.
Previous wording
During the nine months ended September 30, 2025, there were no other material changes to our critical accounting estimates as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
During the three months ended March 31, 2026, there were no material changes to our critical accounting estimates as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
As of September 30, 2025 and December 31, 2024, our portfolio consisted of 147 and 155 commercial mortgage loans, held for investment, respectively. The commercial mortgage loans, held for investment, net of allowance for credit losses, as of September 30, 2025 and December 31, 2024 had a total carrying value of $4,368.8 million and $4,908.7 million, respectively. As of September 30, 2025, our commercial mortgage loans, held for sale, measured at fair value, were comprised of one conduit loan and 35 Agency loans, with a total fair value of $619.0 million. As of December 31, 2024, our commercial mortgage loans, held for sale, measured at fair value, were comprised of three senior loans with a total fair value of $87.3 million. As of September 30, 2025 and December 31, 2024, we had $82.6 million and $203.0 million, respectively, of real estate securities, available for sale, measured at fair value. As of September 30, 2025 and December 31, 2024, our real estate owned, held for investment portfolio was composed of two and three properties with carrying values of $99.9 million and $113.2 million, respectively. As of September 30, 2025 and December 31, 2024, we had nine and twelve positions classified as real estate owned, held for sale with combined carrying values of $212.4 million and $222.9 million, respectively. As of September 30, 2025 and December 31, 2024 our equity method investments consisted of four investments and one investment with carrying values of $69.1 million and $13.4 million, respectively.
Current wording
As of March 31, 2026 and December 31, 2025, our portfolio consisted of 177 and 169 commercial mortgage loans, held for investment, respectively. The commercial mortgage loans, held for investment, net of allowance for credit losses, as of March 31, 2026 and December 31, 2025 had a total carrying value of $4,546.8 million and $4,383.1 million, respectively. As of March 31, 2026, our commercial mortgage loans, held for sale, measured at fair value, were comprised of five conduit loans and nine Agency loans, with a total fair value of $423.0 million. As of December 31, 2025, our commercial mortgage loans, held for sale, measured at fair value, were comprised of two conduit loans and 15 Agency loans, with a total fair value of $360.7 million. As of March 31, 2026 and December 31, 2025, we had $178.7 million and $151.7 million, respectively, of real estate securities, available for sale, measured at fair value. As of March 31, 2026 and December 31, 2025, our real estate owned, held for investment portfolio was composed of two properties with carrying values of $98.7 million and $99.3 million, respectively. As of March 31, 2026 and December 31, 2025, we had five and six positions classified as real estate owned, held for sale with combined carrying values of $192.7 million and $198.9 million, respectively. As of March 31, 2026 and December 31, 2025 our equity method investments consisted of five and four investments with carrying values of $98.6 million and $71.7 million, respectively.
Previous wording
As of September 30, 2025 and December 31, 2024 our commercial mortgage loans, held for investment, excluding commercial mortgage loans on non-performing status, had a weighted average coupon of 7.6% and 8.0%, respectively, and a weighted average remaining contractual maturity life of 0.9 years and 1.1 years, respectively.
Current wording
As of March 31, 2026 and December 31, 2025 our commercial mortgage loans, held for investment, excluding commercial mortgage loans on non-performing status, had a weighted average coupon of 7.0% and 7.1%, respectively, and a weighted average remaining contractual maturity life of 1.1 years and 1.1 years, respectively.
Previous wording
As of September 30, 2025 the Company had a total servicing portfolio consisting of 1,575 loans with an unpaid principal balance of $47.3 billion. As of September 30, 2025, the Company owned MSRs of $208.6 million, which consisted of 1,010 loans with an unpaid principal balance of $20.4 billion.
Current wording
As of March 31, 2026 and December 31, 2025, the Company had a total servicing portfolio consisting of 1,933 and 1,596 loans with an unpaid principal balance of $58.1 billion and $47.8 billion, respectively. As of March 31, 2026 and December 31, 2025, the Company owned Mortgage Servicing Rights (“MSRs”) of $211.9 million and $212.2 million, respectively. As of March 31, 2026 and December 31, 2025, the MSRs consisted of 1,045 and 1,042 loans with an unpaid principal balance of $22.0 billion and $21.6 billion, respectively.
Previous wording
Interest expense for the nine months ended September 30, 2025 and 2024 was $217.3 million and $257.9 million, respectively, a decrease of $40.6 million. The decrease was primarily due to an approximate 98 basis point decrease in daily average SOFR and SOFR equivalent rates coupled with a decrease of $329.6 million in the average carrying value of our collateralized loan obligations.
Current wording
Interest expense for the three months ended March 31, 2026 and 2025 was $65.2 million and $70.6 million, respectively, a decrease of $5.4 million. The decrease was primarily due to an approximate 66 basis point decrease in daily average SOFR and SOFR equivalent rates coupled with a decrease in spreads.
Previous wording
Income for mortgage servicing rights for the three months ended September 30, 2025 was $19.7 million which related to the fair value on originated MSR's loans rate locked under programs with Fannie Mae, Freddie Mac and HUD. The Company did not have income from mortgage servicing rights for the three months ended June 30, 2025.
Current wording
Income from mortgage servicing rights for the three months ended March 31, 2026 was $6.7 million which related to the fair value of originated MSR loans rate locked under programs with Fannie Mae, Freddie Mac and HUD. The Company did not have income from mortgage servicing rights for the three months ended March 31, 2025.
Previous wording
Servicing revenue for the three months ended September 30, 2025 was $3.6 million which related to $11.7 million of servicing fee income and $7.9 million in interest on borrower escrows and reserves. This is offset by $15.9 million in reductions to the MSR for amortization, payoffs and impairment. The Company did not have servicing revenue for the three months ended June 30, 2025.
Current wording
Servicing revenue for the three months ended March 31, 2026 was $10.6 million which related to $12.7 million of servicing fee income, $6.9 million in placement fees on borrower escrows and reserves and $2.6 million in MSR impairment recovery. This is offset by $11.6 million in reductions to the MSR for amortization and payoffs. The Company did not have servicing revenue for the three months ended March 31, 2025.
Previous wording
Loss on derivatives for the nine months ended September 30, 2025 and 2024 was $0.5 million and $1.3 million, respectively. For the nine months ended September 30, 2025, the loss was composed of a $1.0 million unrealized loss related to mark to market on credit default swaps, treasury note futures, and options, partially offset by a $0.5 million realized gain due to the termination and settlement of treasury note futures. This is compared to a $1.3 million loss for the nine months ended September 30, 2025 related to the termination and settlement of credit default swaps, treasury note futures, and options.
Current wording
Gain on derivatives for the three months ended March 31, 2026 was $1.9 million, compared to a loss of $0.1 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, the gain was composed of a $1.3 million unrealized gain related to mark to market on credit default swaps, treasury note futures, and options, coupled with a $0.6 million realized gain primarily due to the termination and settlement of credit default swaps and options. This is compared to a $0.1 million loss for the three months ended March 31, 2025 composed primarily of a $1.0 million unrealized loss on mark to market on credit default swaps, treasury note futures, and options, partially offset by a realized gain of $0.9 million due to the termination and settlement of treasury note futures.
Previous wording
For the nine months ended September 30, 2025, general benefit for credit losses was $5.7 million compared to a provision of $1.3 million during the nine months ended September 30, 2024. General benefit for the nine months ended September 30, 2025 is primarily due to a decrease in the size of the overall portfolio. General provision for the nine months ended September 30, 2024 was attributable to a more pessimistic view of the macroeconomic scenario utilized for the CECL model compared to preceding periods.
Current wording
For the three months ended March 31, 2026, general benefit for credit losses was $1.3 million compared to a benefit of $1.6 million during the three months ended March 31, 2025. General benefit for the three months ended March 31, 2026 is attributable to more favorable economic assumptions utilized for the CECL model compared to preceding periods. General provision for the three months ended March 31, 2025 was primarily due to the portfolio turnover of older vintage loans with newly originated loans.
Previous wording
For the nine months ended September 30, 2025, the increase in specific reserve of $2.7 million was primarily related to (i) a non-performing loan secured by a multifamily property in Texas which we foreclosed on during the second quarter and (ii) a non-performing loan secured by a multifamily property in Pennsylvania, partially offset by a the reversal of a specific reserve on a non-performing loan secured by an office property in Georgia. For the nine months ended September 30, 2024, the increase in specific reserve of $33.5 million was related to two non-performing loans collateralized by office properties coupled with foreclosures on non-performing loans collateralized by multifamily properties located in Oklahoma and North Carolina.
Current wording
For the three months ended March 31, 2026, specific provision for credit losses was $14.8 million compared to a specific benefit for credit losses of $0.3 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, the increase in specific reserve was primarily related to a $13.2 million provision for a non-performing loan secured by two multifamily properties located in North Carolina, coupled with an aggregate increase to existing provisions of $1.6 million for non-performing loans secured by multifamily properties located in Pennsylvania, Arizona and North Carolina. For the three months ended March 31, 2025, the decrease in specific reserve was primarily related to a partial paydown on our non-performing loan secured by an office property in Georgia.
Previous wording
For the three months ended September 30, 2025, allowance for loss sharing decreased by $1.0 million which related to a $2.7 million decrease to the general CECL reserve due to an increased overall economic outlook. This was offset by a $1.7 million increase in the specific loan reserve due to new at risk loans added to the reserve.
Current wording
For the three months ended March 31, 2026, benefit for loss sharing was $2.1 million which related to a $1.2 million decrease to the general CECL reserve due to an improved overall economic outlook, coupled with a $0.9 million decrease in the specific loan reserve due to the removal of a large at-risk loan from the reserve. The Company did not have an allowance for loss sharing for the three months ended March 31, 2025.
Previous wording
Loss on other real estate investments for the nine months ended September 30, 2025 was $1.7 million primarily due to sales of our multifamily and retail properties, losses related to the onboarding of real estate owned, held for sale, multifamily and office properties and fair value write downs on three of our multifamily properties, partially offset by settled litigation regarding the Walgreens Portfolio. This is compared to a loss of $8.4 million for the nine months ended September 30, 2024 primarily due to sales and write offs related to the Walgreens Portfolio coupled with the onboarding of real estate owned, held for sale, multifamily properties.
Current wording
Loss on other real estate investments for the three months ended March 31, 2026 was $4.5 million primarily due to a fair value write-down of one of our multifamily properties which was subsequently sold in the second quarter, coupled with a loss realized on the sale of the final property from the Walgreens Portfolio. This is compared to a loss of $2.2 million for the three months ended March 31, 2025 primarily due to the onboarding of real estate owned, held for sale, multifamily and office properties coupled with losses on the sale of three, held for sale, multifamily properties and one, held for sale, retail property from our Walgreens Portfolio.
Previous wording
Income from equity method investments for the nine months ended September 30, 2025 was $0.2 million related to the Company's net allocated percentage of income generated by our equity method investments. The Company did not have any equity method investments or income during the nine months ended September 30, 2024.
Current wording
Income from equity method investments for the three months ended March 31, 2026 of $12.4 million primarily related to the Company's allocated percentage of unrealized gains on a mixed use property located in New Jersey and an industrial property located in California. We did not have any income from our equity method investment during the three months ended March 31, 2025.
Previous wording
Net income attributable to non-controlling interest in our consolidated joint ventures for the nine months ended September 30, 2025 was $1.1 million compared to a net loss of $3.1 million for the nine months ended September 30, 2024.
Current wording
Net income attributable to non-controlling interest in our consolidated joint ventures for the three months ended March 31, 2026 was $0.3 million compared to a net loss of $0.4 million for the three months ended March 31, 2025.
Previous wording
For the nine months ended September 30, 2025, we incurred asset management and subordinated performance fees and administrative services expenses of $18.2 million and $10.7 million, respectively, which are payable to our Advisor under our asset management agreement. For the nine months ended September 30, 2025 compared to September 30, 2024, asset management and subordinated performance fees decreased due to decreases in applicable average equity between periods, while administrative services expenses increased due to the time spent on the NewPoint acquisition. Refer to Note 11 - Related Party Transactions and Arrangements for a summary of the Company's Advisory Agreement with the Advisor and a description of how our fees are calculated.
Current wording
For the three months ended March 31, 2026, we incurred asset management and subordinated performance fees and administrative services expenses of $6.1 million and $2.3 million, respectively, which are payable to our Advisor under our Advisory Agreement. For the three months ended March 31, 2026 compared to March 31, 2025, asset management and subordinated performance fees decreased due to decreases in applicable average equity between periods, while administrative services expenses decreased due to the time spent on the NewPoint acquisition in the prior period compared to none in the current period. Refer to Note 11 - Related Party Transactions and Arrangements for a summary of the Company's Advisory Agreement with the Advisor and a description of how our fees are calculated.
Previous wording
Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024
Current wording
Comparison of the Three Months Ended March 31, 2026 to the Three Months Ended December 31, 2025
Previous wording
The following table presents the average balance of interest-earning assets less related interest-bearing liabilities, associated interest income and expense and corresponding yield earned and incurred for the nine months ended September 30, 2025 and 2024 (dollars in thousands):
Current wording
The following table presents the average balance of interest-earning assets less related interest-bearing liabilities, associated interest income and expense and corresponding yield earned and incurred for the three months ended March 31, 2026 and December 31, 2025 (dollars in thousands):
Previous wording
(1) Based on amortized cost for real estate debt and real estate securities and principal amount for interest-bearing liabilities. Amounts are calculated based on daily averages for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
(1) Based on amortized cost for real estate debt and real estate securities and principal amount for interest-bearing liabilities. Amounts are calculated based on daily averages for the three months ended March 31, 2026 and December 31, 2025, respectively.
Previous wording
Loss on derivatives for the three months ended September 30, 2025 was $0.1 million composed of a $0.4 million realized loss related to the termination and settlement of credit default swaps and treasury note futures, partially offset by a $0.3 million unrealized gain related to mark to market on treasury yield futures, credit default swaps, and options. This is compared to a loss on derivatives for the three months ended June 30, 2025 of $0.2 million related to a $1.1 million unrealized loss on marks to market on credit default swaps, treasury note futures, and options, partially offset by a realized gain of $0.9 million due to the termination and settlement of treasury note futures.
Current wording
Gain on derivatives for the three months ended March 31, 2026 was $1.9 million composed of a $1.3 million unrealized gain related to mark to market on credit default swaps, treasury note futures, and options, coupled with a $0.6 million realized gain primarily due to the termination and settlement of credit default swaps and options. This is compared to a gain on derivatives for the three months ended December 31, 2025 of $0.3 million composed of a $0.4 million realized gain related to the termination and settlement of credit default swaps and treasury note futures, partially offset by an unrealized loss of $0.1 million.
Previous wording
For the three months ended September 30, 2025 and June 30, 2025, specific provision for credit losses was $1.9 million and $1.1 million, respectively. For the three months ended September 30, 2025, the increase in specific reserve was primarily related to a non-performing loan secured by a multifamily property in Pennsylvania. For the three months ended June 30, 2025, the decrease in specific reserve was primarily related to a non-performing loan secured by a multifamily property in Texas which we foreclosed on during the second quarter.
Current wording
For the three months ended March 31, 2026 and December 31, 2025, specific provision for credit losses was $14.8 million and $3.0 million, respectively. For the three months ended March 31, 2026, the increase in specific reserve was primarily related to a $13.2 million provision for a non-performing loan secured by two multifamily properties located in North Carolina, coupled with an aggregate increase to existing provisions of $1.6 million for non-performing loans secured by multifamily properties located in Pennsylvania, Arizona and North Carolina. For the three months ended December 31, 2025, the specific provision was primarily related to three non-performing loans secured by multifamily properties in Pennsylvania, Arizona and North Carolina, coupled with a non-performing loan secured by a multifamily property in Texas which we foreclosed on during the fourth quarter.
Previous wording
For the nine months ended September 30, 2025, allowance for loss sharing decreased by $1.0 million which related to a $2.7 million decrease to the general CECL reserve due to an increased overall economic outlook. This was offset by a $1.7 million increase in the specific loan reserve due to new at risk loans added to the reserve.
Current wording
For the three months ended March 31, 2026 and December 31, 2025, benefit for loss sharing was $2.1 million and $3.1 million, respectively. For the three months ended March 31, 2026, the benefit primarily related to a $1.2 million decrease to the general CECL reserve due to an increased overall economic outlook, coupled with a $0.9 million decrease in the specific loan reserve due to the removal of a large at-risk loan from the reserve. For the three months ended December 31, 2025 the benefit was the result of a decrease of $4.1 million in the specific allowance for loss sharing due to improvement in the performance of at risk loans, partially offset by a $1.0 million general provision due to growth in the Fannie Mae loss sharing portfolio.
Previous wording
Loss on other real estate investments for the three months ended September 30, 2025 was $2.1 million primarily related to the sales of a Walgreens asset and multifamily asset, coupled with the fair value write down on one multifamily property. This is compared to a gain on other real estate investments for the three months ended June 30, 2025 for $2.7 million primarily due to the sales and settled litigation regarding the Walgreens Portfolio, partially offset by losses related to the onboarding of one real estate owned, held for sale, multifamily properties, as well as fair value write downs on two multifamily properties.
Current wording
Loss on other real estate investments for the three months ended March 31, 2026 was $4.5 million primarily due to a fair value write-down of one of our multifamily properties which was subsequently sold in the second quarter, coupled with a loss realized on the sale of the final property from the Walgreens Portfolio. This is compared to a loss on other real estate investments for the three months ended December 31, 2025 for $1.7 million primarily due to the sales of real estate owned, held for sale, multifamily and retail properties coupled with the fair value write down on one multifamily property located in North Carolina.
Previous wording
Benefit for income tax for the three months ended September 30, 2025 was $2.9 million compared to benefit of $0.1 million for the three months ended June 30, 2025. The difference is related to changes in taxable earnings in our TRS segment.
Current wording
Provision for income tax for the three months ended March 31, 2026 was $0.9 million compared to provision of $6.3 million for the three months ended December 31, 2025. The difference is related to changes in taxable earnings in our Agency Business and conduit segments.
Previous wording
Net income attributable to non-controlling interest in our consolidated joint ventures for the three months ended September 30, 2025 was $0.3 million compared to a net income of $1.2 million for the three months ended June 30, 2025.
Current wording
Net income attributable to non-controlling interest in our consolidated joint ventures for the three months ended March 31, 2026 was $0.3 million compared to a net income of $0.7 million for the three months ended December 31, 2025.
Previous wording
Expenses from operations for the nine months ended September 30, 2025 and 2024 consisted of the following (dollars in thousands):
Current wording
Expenses from operations for the three months ended March 31, 2026 and December 31, 2025 consisted of the following (dollars in thousands):
Previous wording
For the three months ended September 30, 2025 we incurred asset management and subordinated performance fees and administrative services expenses of $6.1 million and $3.5 million respectively, which are payable to our Advisor under our asset management agreement. For the three months ended September 30, 2025 compared to June 30, 2025, asset management and subordinated performance fees increased due to increases in applicable average equity between periods. Refer to Note 18 - Related Party Transactions and Arrangements for a summary of the Company's Advisory Agreement with the Advisor and a description of how our fees are calculated.
Current wording
For the three months ended March 31, 2026 we incurred asset management and subordinated performance fees and administrative services expenses of $6.1 million and $2.3 million, respectively, which are payable to our Advisor under our Advisory Agreement. For the three months ended March 31, 2026 compared to December 31, 2025, asset management and subordinated performance fees decreased due to decreases in applicable average equity between periods. Refer to Note 18 - Related Party Transactions and Arrangements for a summary of the Company's Advisory Agreement with the Advisor and a description of how our fees are calculated.
Previous wording
(1)Represents (i) total outstanding borrowings under secured financing arrangements, including collateralized loan obligations, repurchase agreements - commercial mortgage loans, repurchase agreements - real estate securities, asset-specific financing arrangements, and unsecured debt, less cash and cash equivalents, to (ii) total equity and total redeemable convertible preferred stock, at period end. Recourse net debt-to-equity ratio was 0.8x and 0.3x as of September 30, 2025 and December 31, 2024, respectively.
Current wording
(1)Represents (i) total outstanding borrowings under secured financing arrangements, including collateralized loan obligations, repurchase agreements - commercial mortgage loans, repurchase agreements - real estate securities, asset-specific financing arrangements, and unsecured debt, less cash and cash equivalents, to (ii) total equity and total redeemable convertible preferred stock, at period end. Recourse net debt-to-equity ratio was 1.2x and 0.8x as of March 31, 2026 and December 31, 2025, respectively.
Previous wording
(2) Represents (i) total outstanding borrowings under secured financing arrangements, including collateralized loan obligations, repurchase agreements - commercial mortgage loans, repurchase agreements - real estate securities, asset-specific financing arrangements, and unsecured debt, to (ii) total equity and total redeemable convertible preferred stock, at period end. Recourse leverage ratio was 0.9x and 0.4x as of September 30, 2025 and December 31, 2024, respectively.
Current wording
(2) Represents (i) total outstanding borrowings under secured financing arrangements, including collateralized loan obligations, repurchase agreements - commercial mortgage loans, repurchase agreements - real estate securities, asset-specific financing arrangements, and unsecured debt, to (ii) total equity and total redeemable convertible preferred stock, at period end. Recourse leverage ratio was 1.2x and 0.9x as of March 31, 2026 and December 31, 2025, respectively.
Previous wording
We have an effective shelf registration statement for offerings of equity securities that is not limited on the amount of securities we may issue. We also have authorized an at-the-market sales program (“ATM”) pursuant to which we may sell up to $200 million of shares of our common stock from time to time. We have not sold any shares of common stock under the ATM to date. We also may access liquidity through our dividend reinvestment and stock purchase plan (“DRIP”), which includes a direct stock purchase option.
Current wording
$200 million of shares of our common stock from time to time. We have not sold any shares of common stock under the ATM to date. We also may access liquidity through our dividend reinvestment and stock purchase plan (“DRIP”), which includes a direct stock purchase option.
Previous wording
As of September 30, 2025, the Company had $21.0 million of reinvestment capital available across all outstanding collateralized loan obligations. The following table shows the par value outstanding for each CLO and the respective reinvestment end dates (dollars in millions):
Current wording
As of March 31, 2026, the Company had $3.0 million of reinvestment capital available across all outstanding collateralized loan obligations. The following table shows the par value outstanding for each CLO and the respective reinvestment end dates (dollars in millions):
Previous wording
The following tables summarize our Repo and Revolving Credit Facilities and our master repurchase agreements ("MRAs") for the nine months ended September 30, 2025, 2024, and 2023, respectively (dollars in thousands):
Current wording
The following tables summarize our Repo and Revolving Credit Facilities and our master repurchase agreements ("MRAs") for the three months ended March 31, 2026, 2025, and 2024, respectively (dollars in thousands):
Previous wording
In September 2025, the Company's board of directors declared the following: (i) a third quarter 2025 dividend of $0.355 per share on the Company's common stock (equivalent to $1.42 per annum), (ii) a third quarter 2025 dividend of $106.22 per share on the Company’s Series H Preferred Stock, and (iii) a third quarter 2025 dividend of $0.46875 per share on the Company’s Series E Preferred Stock, all of which were paid in October 2025 to holders of record as of September 30, 2025.
Current wording
In March 2026, the Company's board of directors declared the following: (i) a first quarter 2026 dividend of $0.20 per share on the Company's common stock (equivalent to $0.80 per annum), (ii) a first quarter 2026 dividend of $59.84 per share on the Company’s Series H Preferred Stock (iii) a first quarter 2026 dividend of $0.46875 per share on the Company’s Series E Preferred Stock, and (iv) a first quarter 2026 dividend of $0.20 per unit on the OP Units, all of which were paid in April 2026 to holders of record as of March 31, 2026.
Showing the first 40 of 57 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We have an effective shelf registration statement for offerings of equity securities that is not limited on the amount of securities we may issue. We also have authorized an at-the-market sales program (“ATM”) pursuant to which we may sell up to
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
(1) LTV represents the ratio of the loan amount to the appraised value of the property at the time of origination.
Previous report — wording carried elsewhere
Income from mortgage servicing rights for the nine months ended September 30, 2025 was $19.7 million which related to the fair value on originated MSR's loans rate locked under programs with Fannie Mae, Freddie Mac and HUD. The Company did not have income from mortgage servicing rights for the nine months ended September 30, 2024.
Previous report — wording carried elsewhere
Servicing revenue for the nine months ended September 30, 2025 was $3.6 million which related to $11.7 million of servicing fee income and $7.9 million in interest on borrower escrows and reserves. This is offset by $15.9 million in reductions to the MSR for amortization, payoffs and impairment. The Company did not have servicing revenue for the nine months ended September 30, 2024.
Previous report — wording carried elsewhere
Benefit for income tax for the nine months ended September 30, 2025 was $2.4 million compared to a provision of $0.9 million for the nine months ended September 30, 2024. The difference is related to changes in taxable earnings in our TRS segment.