7 unchanged sentences
Therefore, while increases in interest rates generally benefit our net interest income because our structured loan portfolio and investments exceed our corresponding debt balances, fluctuations in interest rates do not necessarily correlate directly with the impact on our net interest income, particularly depending on the magnitude of such fluctuations and the effect of applicable interest rate floors.
−Removed: The following table projects the potential impact on interest ($ in thousands) for a 12-month period, assuming a hypothetical instantaneous increase or decrease of 50 basis points and a decrease of 100 basis points in corresponding interest rates.
−Removed: Since it is unlikely that interest rates will significantly increase in the near future as a result of the current high interest rate environment, we have excluded the impact of a 100 basis point increase in corresponding interest rates.
+Added: The following table projects the potential impact on interest ($ in thousands) for a 12-month period, assuming a hypothetical instantaneous increase or decrease of both 50 and 100 basis points in corresponding interest rates.
Assets (Liabilities)
2 unchanged sentences
Increase 100 Basis Point
+Added: Increase 50 Basis Point
Decrease 100 Basis Point
5 unchanged sentences
________________________
−Removed: (1) Represents the UPB of our structured loan portfolio, the principal balance of our debt and the account balances of our cash, restricted cash and escrows at March 31, 2026.
+Added: (1) Represents the UPB of our structured loan portfolio, the principal balance of our debt and the account balances of our cash, restricted cash and escrows at June 30, 2026.
(2) Our cash, restricted cash and escrows are currently earning interest at a weighted average blended rate of approximately 3.3%, or approximately $55 million annually.
−Removed: Interest income earned on our cash and restricted cash is included as a component of interest income and interest income earned on escrows is included as a component of servicing revenue, net in the consolidated statements of income.
+Added: Interest income earned on our cash and restricted cash is included as a component of interest income and interest income earned on escrows is included as a component of servicing revenue, net in the consolidated statements of operations.
The interest earned on our cash, restricted cash and escrows is based on an average daily balance and may be different from the end of period balance.
+Added: We entered into treasury futures to hedge our exposure to changes in interest rates inherent in (1) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale and securitization, and (2) our Agency Business SFR – fixed rate loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt.
+Added: Our treasury futures are tied to the 5-year and 10-year treasury rates and hedge our exposure to Private Label loans, until the time they are securitized, and changes in the fair value of our held-for-sale Agency Business SFR – fixed rate loans.
+Added: A 50 basis point and a 100 basis point increase to the 5-year and 10-year treasury rates on our treasury futures held at June 30, 2026 would have resulted in a gain of $1.0 million and $2.3 million, respectively, in the six months ended June 30, 2026, while a 50 basis point and a 100 basis point decrease in the rates would have resulted in a loss of $1.7 million and $3.2 million, respectively.
Our Agency Business originates, sells and services a range of multifamily finance products with Fannie Mae, Freddie Mac and HUD.
3 unchanged sentences
In addition, the fair value of our MSRs is subject to market risk since a significant driver of the fair value of these assets is the discount rates.
−Removed: A 100 basis point increase in the weighted average discount rate would decrease the fair value of our MSRs by $12.4 million at March 31, 2026, while a 100 basis point decrease would increase the fair value by $13.0 million.
+Added: A 100 basis point increase in the weighted average discount rate would decrease the fair value of our MSRs by $12.1 million at June 30, 2026, while a 100 basis point decrease would increase the fair value by $12.7 million.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.